| [X]                  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                  |
|----------------------|-------------------------------------------------------------------------------------------------------|
|                 |
|                 | For the fiscal year ended June 30, 2010          OR |
|                 |
| [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934         |

| SOUTHERN MISSOURI BANCORP, INC.                                   |
|-------------------------------------------------------------------|
| (Exact name of small business issuer as specified in its charter) |

| Missouri                                                   (State or other jurisdiction of incorporation or organization) |   | 43-1665523                              (I.R.S. Employer Identification No.) |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 531 Vine Street, Poplar Bluff, Missouri (Address of principal executive offices)                                                                                                                                                                                                                                                                                                    |   | 63901                        (Zip Code)                                                                    |

| Securities registered pursuant to Section 12(b) of the Act: |
|-------------------------------------------------------------|
| Title of each class:Common Stock, par value $0.01 per share | Name of each exchange on which registered:The Nasdaq Global Market |

| ·   | the strength of the United States economy in general and the strength of the local economies in which we conduct operations; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | inflation, interest rate, market and monetary fluctuations; |
|--------------------|-------------------------------------------------------------|

| ·   | the  timely development of and acceptance of our new products and services and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors' products and services; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the willingness of users to substitute our products and services for products and services of our competitors; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | the impact of changes in financial services' laws and regulations (including laws concerning taxes, banking, securities and insurance); |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the impact of technological changes; |
|--------------------|--------------------------------------|

| ·   | acquisitions; |
|--------------------|---------------|

| ·   | changes in consumer spending and saving habits; and |
|--------------------|-----------------------------------------------------|

| ·   | our success at managing the risks involved in the foregoing. |
|--------------------|--------------------------------------------------------------|

|                         |   | At June 30,            |    |
|------------------------------|--------|------------------------|---------|
|                         |   | 2010                   |    |   | 2009 |   |   | 2008 |   |
|                         |   | Amount                 |    |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                         |   | (Dollars in thousands) |    |
| Type of Loan:                |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage Loans:              |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate      |   | $                      | 158,494 |   |   |   | 37.86 | % |   | $ | 155,490 |   |   |   | 42.14 | % |   | $ | 149,340 |   |   |   | 43.48 | % |
| Commercial real estate (1)   |   |                   | 121,526 |   |   |   | 29.03 |   |   |   | 97,161 |   |   |   | 26.33 |   |   |   | 85,860 |   |   |   | 25.00 |   |
| Construction                 |   |                   | 27,951  |   |   |   | 6.68 |   |   |   | 23,532 |   |   |   | 6.38 |   |   |   | 13,945 |   |   |   | 4.06 |   |
| Total mortgage loans         |   |                   | 307,971 |   |   |   | 73.56 |   |   |   | 276,183 |   |   |   | 74.85 |   |   |   | 249,145 |   |   |   | 72.54 |   |
|                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Loans:                 |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Automobile loans             |   |                   | 8,442   |   |   |   | 2.02 |   |   |   | 8,329 |   |   |   | 2.26 |   |   |   | 8,872 |   |   |   | 2.58 |   |
| Commercial business (2)      |   |                   | 97,481  |   |   |   | 23.28 |   |   |   | 89,066 |   |   |   | 24.14 |   |   |   | 81,575 |   |   |   | 23.75 |   |
| Home equity                  |   |                   | 12,879  |   |   |   | 3.08 |   |   |   | 10,976 |   |   |   | 2.97 |   |   |   | 8,213 |   |   |   | 2.39 |   |
| Other                        |   |                   | 5,003   |   |   |   | 1.19 |   |   |   | 3,836 |   |   |   | 1.04 |   |   |   | 4,439 |   |   |   | 1.30 |   |
| Total other loans            |   |                   | 123,805 |   |   |   | 29.56 |   |   |   | 112,207 |   |   |   | 30.41 |   |   |   | 103,099 |   |   |   | 30.02 |   |
|                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans                  |   |                   | 431,776 |   |   |   | 103.13 |   |   |   | 388,390 |   |   |   | 105.26 |   |   |   | 352,244 |   |   |   | 102.56 |   |
|                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                        |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Undisbursed loans in process |   |                   | 8,705   |   |   |   | 2.08 |   |   |   | 15,511 |   |   |   | 4.21 |   |   |   | 5,668 |   |   |   | 1.65 |   |
| Deferred fees and discounts  |   |                   | (121    | ) |   |   | (0.03 | ) |   |   | (107 | ) |   |   | (0.03 | ) |   |   | (61 | ) |   |   | (0.02 | ) |
| Allowance for loan losses    |   |                   | 4,509   |   |   |   | 1.08 |   |   |   | 3,993 |   |   |   | 1.08 |   |   |   | 3,199 |   |   |   | 0.93 |   |
| Net loans receivable         |   | $                      | 418,683 |   |   |   | 100.00 | % |   | $ | 368,993 |   |   |   | 100.00 | % |   | $ | 343,438 |   |   |   | 100.00 | % |
|                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Type of Security:            |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate      |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to four-family           |   | $                      | 167,622 |   |   |   | 40.04 |   |   | $ | 158,739 |   |   |   | 43.02 |   |   | $ | 154,403 |   |   |   | 44.96 |   |
| Multi-family                 |   |                   | 12,475  |   |   |   | 2.98 |   |   |   | 14,171 |   |   |   | 3.84 |   |   |   | 22,971 |   |   |   | 6.69 |   |
| Commercial real estate       |   |                   | 96,601  |   |   |   | 23.07 |   |   |   | 74,937 |   |   |   | 20.31 |   |   |   | 58,365 |   |   |   | 16.99 |   |
| Land                         |   |                   | 34,518  |   |   |   | 8.24 |   |   |   | 29,584 |   |   |   | 8.02 |   |   |   | 24,891 |   |   |   | 7.25 |   |
| Commercial                   |   |                   | 94,224  |   |   |   | 22.51 |   |   |   | 87,817 |   |   |   | 23.80 |   |   |   | 68,379 |   |   |   | 19.91 |   |
| Consumer and other           |   |                   | 26,336  |   |   |   | 6.29 |   |   |   | 23,142 |   |   |   | 6.27 |   |   |   | 23,235 |   |   |   | 6.76 |   |
| Total loans                  |   |                   | 431,776 |   |   |   | 103.13 |   |   |   | 388,390 |   |   |   | 105.26 |   |   |   | 352,244 |   |   |   | 102.56 |   |
|                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                        |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Undisbursed loans in process |   |                   | 8,705   |   |   |   | 2.08 |   |   |   | 15,511 |   |   |   | 4.21 |   |   |   | 5,668 |   |   |   | 1.65 |   |
| Deferred fees and discounts  |   |                   | (121    | ) |   |   | (0.03 | ) |   |   | (107 | ) |   |   | (0.03 | ) |   |   | (61 | ) |   |   | (0.02 | ) |
| Allowance for loan losses    |   |                   | 4,509   |   |   |   | 1.08 |   |   |   | 3,993 |   |   |   | 1.08 |   |   |   | 3,199 |   |   |   | 0.93 |   |
| Net loans receivable         |   | $                      | 418,683 |   |   |   | 100.00 | % |   | $ | 368,993 |   |   |   | 100.00 | % |   | $ | 343,438 |   |   |   | 100.00 | % |
|                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| ___________________________ |
|-----------------------------|

| (1)   | Commercial real estate loan balances included farmland and other agricultural-related real estate loans of $28.3 million, $21.3 million, and $14.9 million, as of June 30, 2010, 2009, and 2008, respectively. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Commercial business loan balances included agricultural equipment and production loans of $35.9 million, $27.5 million, and $22.7 million as of June 30, 2010, 2009, and 2008, respectively. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                  |   | At June 30,            |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                                                                                                                                                                                                                  |   | 2010                   |    |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                                                                                                                  |   | Amount                 |    |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                                                                                                                                                                                                                                                                                  |   | (Dollars in thousands) |    |
| Type of Loan:                                                                                                                                                                                                                                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed-Rate Loans:                                                                                                                                                                                                                                                                     |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate                                                                                                                                                                                                                                                               |   | $                      | 107,190 |   |   |   | 25.60 | % |   | $ | 107,994 |   |   |   | 29.27 | % |   | $ | 108,052 |   |   |   | 31.46 | % |
| Commercial real estate                                                                                                                                                                                                                                                                |   |                   | 70,643  |   |   |   | 16.87 |   |   |   | 52,169 |   |   |   | 14.14 |   |   |   | 63,983 |   |   |   | 18.63 |   |
| Construction                                                   |   |                   | 21,467  |   |   |   | 5.13 |   |   |   | 18,444 |   |   |   | 5.00 |   |   |   | 13,005 |   |   |   | 3.79 |   |
| Consumer                                                       |   |                   | 13,439  |   |   |   | 3.21 |   |   |   | 12,140 |   |   |   | 3.29 |   |   |   | 13,280 |   |   |   | 3.87 |   |
| Commercial business                                            |   |                   | 50,747  |   |   |   | 12.12 |   |   |   | 50,364 |   |   |   | 13.65 |   |   |   | 59,796 |   |   |   | 17.41 |   |
|                                                                                                                                                                                                                                                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total fixed-rate loans                                                                                                                                                                                                                                                                |   |                   | 263,486 |   |   |   | 62.93 |   |   |   | 241,111 |   |   |   | 65.35 |   |   |   | 258,116 |   |   |   | 75.16 |   |
|                                                                                                                                                                                                                                                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustable-Rate Loans:                                                                                                                                                                                                                                                                |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate                                                                                                                                                                                                                                                               |   |                   | 51,304  |   |   |   | 12.25 |   |   |   | 47,497 |   |   |   | 12.87 |   |   |   | 41,288 |   |   |   | 12.02 |   |
| Commercial real estate                                                                                                                                                                                                                                                                |   |                   | 50,883  |   |   |   | 12.15 |   |   |   | 44,992 |   |   |   | 12.19 |   |   |   | 21,877 |   |   |   | 6.37 |   |
| Construction                                                   |   |                   | 6,484   |   |   |   | 1.55 |   |   |   | 5,087 |   |   |   | 1.38 |   |   |   | 940 |   |   |   | 0.27 |   |
| Consumer                                                       |   |                   | 12,885  |   |   |   | 3.08 |   |   |   | 11,002 |   |   |   | 2.98 |   |   |   | 8,244 |   |   |   | 2.40 |   |
| Commercial business                                            |   |                   | 46,734  |   |   |   | 11.16 |   |   |   | 38,701 |   |   |   | 10.49 |   |   |   | 21,779 |   |   |   | 6.34 |   |
|                                                                                                                                                                                                                                                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total adjustable-rate loans                                                                                                                                                                                                                                                           |   |                   | 168,290 |   |   |   | 40.20 |   |   |   | 147,279 |   |   |   | 39.91 |   |   |   | 94,128 |   |   |   | 27.40 |   |
|                                                                                                                                                                                                                                                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans                                                                                                                                                                                                                                                                           |   |                   | 431,776 |   |   |   | 103.13 |   |   |   | 388,390 |   |   |   | 105.26 |   |   |   | 352,244 |   |   |   | 102.56 |   |
|                                                                                                                                                                                                                                                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                                                                                                                                                                                                                                                                                 |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Undisbursed loans in process                                                                                                                                                                                                                                                          |   |                   | 8,705   |   |   |   | 2.08 |   |   |   | 15,511 |   |   |   | 4.21 |   |   |   | 5,668 |   |   |   | 1.65 |   |
| Net deferred loan fees                                                                                                                                                                                                                                                                |   |                   | (121    | ) |   |   | (0.03 | ) |   |   | (107 | ) |   |   | (0.03 | ) |   |   | (61 | ) |   |   | (0.02 | ) |
| Allowance for loan loss                                                                                                                                                                                                                                                               |   |                   | 4,509   |   |   |   |  1.08 |   |   |   | 3,993 |   |   |   | 1.08 |   |   |   | 3,199 |   |   |   | 0.93 |   |
|          Net loans receivable                                                                                                                                                                                                            |   | $                      | 418,683 |   |   |   | 100.00 | % |   | $ | 368,993 |   |   |   | 100.00 | % |   | $ | 343,438 |   |   |   | 100.00 | % |

|                                             |   | Less Than1 year |    |   | 1-3 Years |   |   | 4-5 years |   |   | More Than5 Years |   |   | Total  |   |
|--------------------------------------------------|--------|-----------------|---------|--------|-----------|--------|--------|-----------|--------|--------|------------------|--------|--------|--------|--------|
|                                             |   | (In Thousands)  |    |
| Federal Home Loan Bank   advances |   | $               | 10,000  |   |      | $      | 6,000  |      |   | $      | 3,000            |   |   | $      | 24,500 |   |   | $ | 43,500 |   |
| Certificates of deposit                          |   |            | 147,948 |   |      |   | 31,487 |      |   |   | 13,085           |   |   |   | -      |   |   |   | 192,520 |   |
|    Total                          |   | $               | 157,948 |   |      | $      | 37,487 |      |   | $      | 16,085           |   |   | $      | 24,500 |   |   | $ | 236,020 |   |
|                                             |   |            |    |   |      |   |   |      |   |   |             |   |   |   |   |   |   |   |   |   |
|                                             |   | Less Than1 year |    |   | 1-3 Years |   |   | 4-5 years |   |   | More Than5 Years |   |   | Total  |   |
|                                             |   | (In Thousands)  |    |
|                                             |   |            |    |   |      |   |   |      |   |   |             |   |   |   |   |   |   |   |   |   |
| Construction loans in process                    |   | $               | 8,705   |   |      | $      | -      |      |   | $      | -                |   |   | $      | -      |   |   | $ | 8,705 |   |
| Other commitments                                |   |            | 44,098  |   |      |   | 8,490  |      |   |   | 4,281            |   |   |   | 3,057  |   |   |   | 59,926 |   |
|                                             |   | $               | 52,803  |   |      | $      | 8,490  |      |   | $      | 4,281            |   |   | $      | 3,057  |   |   | $ | 68,631 |   |
|                                             |   |            |    |   |      |   |   |      |   |   |             |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                        |   | WithinOne Year |    |   | AfterOne YearThrough5 Years |   |    | After5 YearsThrough10 Years |   |   | After10 Years |   |   | Total  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-----------------------------|--------|---------|-----------------------------|--------|--------|---------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                        |   | (In thousands) |    |
|                                                                                                                                                                                                                                                                                                        |   |           |    |   |                        |   |    |                        |   |   |          |   |   |   |   |
| Residential real estate                                                         |   | $              | 11,043  |   |                        | $      | 43,298  |                        |   | $      | 20,710        |   |   | $      | 83,443 |   |   | $ | 158,494 |   |
| Commercial real estate                                                                                                                                                                                                                                                                                      |   |           | 39,221  |   |                        |   | 72,574  |                        |   |   | 3,204         |   |   |   | 6,527  |   |   |   | 121,526 |   |
| Construction                                                                    |   |           | 26,380  |   |                        |   | 1,518   |                        |   |   | -             |   |   |   | 53     |   |   |   | 27,951 |   |
| Consumer                                                                        |   |           | 3,300   |   |                        |   | 12,223  |                        |   |   | 10,696        |   |   |   | 105    |   |   |   | 26,324 |   |
| Commercial business                                                             |   |           | 59,805  |   |                        |   | 27,664  |                        |   |   | 680           |   |   |   | 9,332  |   |   |   | 97,481 |   |
|     Total loans                                             |   | $              | 139,749 |   |                        | $      | 157,277 |                        |   | $      | 35,290        |   |   | $      | 99,460 |   |   | $ | 431,776 |   |
|                                                                                                                                                                                                                                                                                                        |   |           |    |   |                        |   |    |                        |   |   |          |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                       |   | Year Ended June 30,    |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|----------|
|                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2010                   |     |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   | (Dollars in thousands) |     |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |     |   |   |   |   |   |   |
| Total loans at beginning of period                                                                                                                                                                                                                                                                                                                                                                         |   | $                      | 388,390  |   |   | $ | 352,244 |   |   | $ | 316,462 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |     |   |   |   |   |   |   |   |   |   |
| Loans originated:                                                                                                                                                                                                                                                                                                                                                                                          |   |                   |     |   |   |   |   |   |   |   |   |   |
|     One-to four-family residential                                                                                                                                                                                                                                                                                                                                                     |   |                   | 35,862   |   |   |   | 36,598 |   |   |   | 31,879 |   |
|     Multi-family residential and        commercial real estate                                                                                                                                                                                                                                                                                 |   |                   | 41,325   |   |   |   | 45,956 |   |   |   | 39,518 |   |
|     Construction loans                                                                                   |   |                   | 21,444   |   |   |   | 11,821 |   |   |   | 10,815 |   |
|     Commercial and industrial                                                                                                                                                                                                                                                                                                                                                          |   |                   | 31,677   |   |   |   | 30,921 |   |   |   | 25,350 |   |
|     Consumer and others                                                                                  |   |                   | 15,638   |   |   |   | 15,959 |   |   |   | 16,065 |   |
|         Total loans originated                                                       |   |                   | 145,946  |   |   |   | 141,255 |   |   |   | 123,627 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |     |   |   |   |   |   |   |   |   |   |
| Loans purchased:                                                                                                                                                                                                                                                                                                                                                                                           |   |                   |     |   |   |   |   |   |   |   |   |   |
|     Total loans purchased (1)                                                                                                                                                                                                                                                                                                                                                          |   |                   | 25,887   |   |   |   | 10,887 |   |   |   | 17,725 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |     |   |   |   |   |   |   |   |   |   |
| Loans sold:                                                                                                                                                                                                                                                                                                                                                                                                |   |                   |     |   |   |   |   |   |   |   |   |   |
|   Total loans sold                                                                                                 |   |                   | (6,917   | ) |   |   | (10,203 | ) |   |   | (4,566 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |     |   |   |   |   |   |   |   |   |   |
| Principal repayments                                                                                                         |   |                   | (101,162 | ) |   |   | (92,906 | ) |   |   | (90,425 | ) |
| Participation principal repayments                                                                                                                                                                                                                                                                                                                                                                         |   |                   | (18,442  | ) |   |   | (12,410 | ) |   |   | (9,925 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |     |   |   |   |   |   |   |   |   |   |
| Foreclosures                                                                                                                 |   |                   | (1,926   | ) |   |   | (477 | ) |   |   | (654 | ) |
| Net loan activity                                                                                                            |   |                   | 43,386   |   |   |   | 36,146 |   |   |   | 35,782 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |     |   |   |   |   |   |   |   |   |   |
|         Total loans at end of period                                                                                                                                                                                                                                                                                                                               |   | $                      | 431,776  |   |   | $ | 388,390 |   |   | $ | 352,244 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |     |   |   |   |   |   |   |   |   |   |

| (1)   | Amount reported in fiscal 2010 includes the Company’s acquisition of loans recorded at a $15.1 million fair value in the July 2009 acquisition of the Southern Bank of Commerce. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | Loans Delinquent For:  |   |   |             |   |
|--------------------------------|--------|------------------------|--------|--------|------------------|--------|
|                           |   | 60-89 Days             |   |   | 90 Days and Over |   |   | Total LoansDelinquent 60 Daysor More |   |
|                           |   | Numbers                |   |   | Amounts          |   |   | Numbers |   |   | Amounts |   |   | Numbers |   |   | Amounts |   |
|                           |   | (Dollars in thousands) |   |
|                           |   |                   |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate        |   |                   | 4      |   |             | $      | 239 |   |   |   | 4 |   |   | $ | 163 |   |   |   | 8 |   |   | $ | 402 |   |
| Commercial real estate         |   |                   | ---    |   |             |   | --- |   |   |   | 4 |   |   |   | 51 |   |   |   | 4 |   |   |   | 51 |   |
| Commercial non-real estate     |   |                   | 3      |   |             |   | 23 |   |   |   | 4 |   |   |   | 43 |   |   |   | 7 |   |   |   | 66 |   |
| Other consumer                 |   |                   | 6      |   |             |   | 20 |   |   |   | 12 |   |   |   | 75 |   |   |   | 18 |   |   |   | 95 |   |
|     Totals |   |                   | 13     |   |             | $      | 282 |   |   |   | 24 |   |   | $ | 332 |   |   |   | 37 |   |   | $ | 614 |   |
|                           |   |                   |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                              |   | At June 30,            |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                              |   | 2010                   |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                              |   | (Dollars in thousands) |   |
|                                                                                                                                                                                                                                                                                                              |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccruing loans:                                                                                                                                                                                                                                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Residential real estate                                                                                                                                                                                                                                                                   |   | $                      | 154    |   |   | $ | 343 |   |   | $ | --- |   |   | $ | --- |   |   | $ | --- |   |
|     Commercial real estate                                                                                                                                                                                                                                                                    |   |                   | 51     |   |   |   | 241 |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |
|     Consumer                                                                     |   |                   | 24     |   |   |   | 9 |   |   |   | --- |   |   |   | 2 |   |   |   | 51 |   |
|     Commercial business                                                                                                                                                                                                                                                                       |   |                   | 9      |   |   |   | 66 |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |
|        Total                                                      |   | $                      | 238    |   |   | $ | 659 |   |   | $ | --- |   |   | $ | 2 |   |   | $ | 51 |   |
|                                                                                                                                                                                                                                                                                                              |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans 90 days past due   accruing interest:                                                                                                                                                                                                                                                        |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Residential real estate                                                                                                                                                                                                                                                                   |   | $                      | 9      |   |   | $ | 137 |   |   | $ | --- |   |   | $ | --- |   |   | $ | --- |   |
|     Commercial real estate                                                                                                                                                                                                                                                                    |   |                   | ---    |   |   |   | --- |   |   |   | --- |   |   |   | 20 |   |   |   | -- |   |
|     Consumer                                                                     |   |                   | 51     |   |   |   | --- |   |   |   | 6 |   |   |   | 4 |   |   |   | 2 |   |
|     Commercial business                                                                                                                                                                                                                                                                       |   |                   | 34     |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |
|        Total                                                      |   | $                      | 94     |   |   | $ | 137 |   |   | $ | 6 |   |   | $ | 24 |   |   | $ | 2 |   |
|                                                                                                                                                                                                                                                                                                              |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total nonperforming loans                                                                                                                                                                                                                                                                                         |   | $                      | 332    |   |   | $ | 796 |   |   | $ | 6 |   |   | $ | 26 |   |   | $ | 53 |   |
|                                                                                                                                                                                                                                                                                                              |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonperforming investments                                                                                                                                                                                                                                                                                         |   | $                      | 125    |   |   | $ | 125 |   |   | $ | --- |   |   | $ | --- |   |   | $ | --- |   |
| Foreclosed assets held for sale:                                                                                                                                                                                                                                                                                  |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Real estate owned                                                                                                                                                                                                                                                                         |   |                   | 1,501  |   |   |   | 313 |   |   |   | 38 |   |   |   | 111 |   |   |   | 200 |   |
|     Other nonperforming assets                                                                                                                                                                                                                                                                |   |                   | 90     |   |   |   | 137 |   |   |   | 24 |   |   |   | 11 |   |   |   | 16 |   |
|        Total nonperforming assets                                                                                                                                                                                                                                              |   | $                      | 2,048  |   |   | $ | 1,371 |   |   | $ | 68 |   |   | $ | 148 |   |   | $ | 269 |   |
|                                                                                                                                                                                                                                                                                                              |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total nonperforming loans   to net loans                                              |   |                   | 0.08   | % |   |   | 0.22 | % |   |   | 0.00 | % |   |   | 0.01 | % |   |   | 0.02 | % |
| Total nonperforming loans   to total assets                                           |   |                   | 0.06   | % |   |   | 0.17 | % |   |   | 0.00 | % |   |   | 0.01 | % |   |   | 0.02 | % |
| Total nonperforming assets   to total assets                                          |   |                   | 0.37   | % |   |   | 0.29 | % |   |   | 0.02 | % |   |   | 0.04 | % |   |   | 0.08 | % |

|                                                                                                                                                                                                                                                                                                                                                                  |   | Year Ended June 30,    |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                  |   | 2010                   |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                  |   | (Dollars in thousands) |   |
|                                                                                                                                                                                                                                                                                                                                                                  |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance at beginning of period                                                                                                                                                                                                                                                                                                                                      |   | $                      | 3,993  |   |   | $ | 3,199 |   |   | $ | 2,387 |   |   | $ | 1,879 |   |   | $ | 1,892 |   |
| Recoveries                                                                                                                                                                                                                                                                                                                                                            |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate                                                                                                                                                                                                                                                                                                                                               |   |                   | 8      |   |   |   | 3 |   |   |   | 1 |   |   |   | 1 |   |   |   | --- |   |
| Commercial real estate                                                                                                                                                                                                                                                                                                                                                |   |                   | 3      |   |   |   | 6 |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |
| Commercial business                                                                                                                                                                                                                                                                                                                                                   |   |                   | 5      |   |   |   | 3 |   |   |   | 168 |   |   |   | 22 |   |   |   | 11 |   |
| Consumer                                                                                                                                            |   |                   | 5      |   |   |   | 14 |   |   |   | 14 |   |   |   | 15 |   |   |   | 54 |   |
|    Total recoveries                                                                                                                  |   |                   | 21     |   |   |   | 26 |   |   |   | 183 |   |   |   | 38 |   |   |   | 65 |   |
|                                                                                                                                                                                                                                                                                                                                                                  |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge offs:                                                                                                                                                                                                                                                                                                                                                          |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate                                                                                                                                                                                                                                                                                                                                               |   |                   | 153    |   |   |   | 19 |   |   |   | 34 |   |   |   | 83 |   |   |   | 57 |   |
| Commercial real estate                                                                                                                                                                                                                                                                                                                                                |   |                   | 76     |   |   |   | 11 |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |
| Commercial business                                                                                                                                                                                                                                                                                                                                                   |   |                   | 118    |   |   |   | 242 |   |   |   | 5 |   |   |   | 24 |   |   |   | 374 |   |
| Consumer                                                                                                                                            |   |                   | 83     |   |   |   | 111 |   |   |   | 55 |   |   |   | 56 |   |   |   | 147 |   |
|    Total charge offs                                                                                                                 |   |                   | 430    |   |   |   | 383 |   |   |   | 94 |   |   |   | 163 |   |   |   | 578 |   |
|                                                                                                                                                                                                                                                                                                                                                                  |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net recoveries (charge offs)                                                                                                                                                                                                                                                                                                                        |   |                   | (409   | ) |   |   | (357 | ) |   |   | 89 |   |   |   | (125 | ) |   |   | (513 | ) |
| Provision for loan losses                                                                                                                                                                                                                                                                                                                                             |   |                   | 925    |   |   |   | 1,151 |   |   |   | 723 |   |   |   | 633 |   |   |   | 500 |   |
|                                                                                                                                                                                                                                                                                                                                                                  |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Balance at end of period                                                                                                                                                                                                                                                                                                                            |   | $                      | 4,509  |   |   | $ | 3,993 |   |   | $ | 3,199 |   |   | $ | 2,387 |   |   | $ | 1,879 |   |
|                                                                                                                                                                                                                                                                                                                                                                  |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of allowance to total loans   outstanding at the end of the   period                                            |   |                   | 1.06   | % |   |   | 1.07 | % |   |   | 0.92 | % |   |   | 0.76 | % |   |   | 0.66 | % |
| Ratio of net charge offs to   average loans outstanding   during the period                                           |   |                   | 0.10   | % |   |   | 0.10 | % |   |   | (0.03 | )% |   |   | 0.04 | % |   |   | 0.19 | % |

|                                                                                                                                                                                                                                                                            |   | At June 30,            |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                 |   | 2010                   |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                                                                                                                                 |   | Amount                 |   |   | Percent ofLoans inEachCategoryto TotalLoans |   |   | Amount |   |   | Percent ofLoans inEachCategoryto TotalLoans |   |   | Amount |   |   | Percent ofLoans inEachCategoryto TotalLoans |   |   | Amount |   |   | Percent ofLoans inEachCategoryto TotalLoans |   |   | Amount |   |   | Percent ofLoans inEachCategoryto TotalLoans |   |
|                                                                                                                                                                                                                                                                                 |   | (Dollars in thousands) |   |
|                                                                                                                                                                                                                                                                                 |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate                                                                                                                                                                                                                                                              |   | $                      | 902    |   |   |   | 36.71 | % |   | $ | 750 |   |   |   | 40.03 | % |   | $ | 626 |   |   |   | 42.40 | % |   | $ | 279 |   |   |   | 42.98 | % |   | $ | 205 |   |   |   | 44.07 | % |
| Construction                                                                                                              |   |                   | 198    |   |   |   | 6.47 |   |   |   | 128 |   |   |   | 6.06 |   |   |   | 88 |   |   |   | 3.96 |   |   |   | 70 |   |   |   | 2.52 |   |   |   | 81 |   |   |   | 3.76 |   |
| Commercial real estate                                                                                                                                                                                                                                                               |   |                   | 1,605  |   |   |   | 28.14 |   |   |   | 1,217 |   |   |   | 25.02 |   |   |   | 969 |   |   |   | 24.37 |   |   |   | 774 |   |   |   | 24.49 |   |   |   | 619 |   |   |   | 22.65 |   |
| Consumer                                                                                                                  |   |                   | 473    |   |   |   | 6.10 |   |   |   | 367 |   |   |   | 5.96 |   |   |   | 333 |   |   |   | 6.11 |   |   |   | 256 |   |   |   | 6.10 |   |   |   | 293 |   |   |   | 6.97 |   |
| Commercial business                                                                                                                                                                                                                                                                  |   |                   | 1,330  |   |   |   | 22.58 |   |   |   | 1,038 |   |   |   | 22.93 |   |   |   | 952 |   |   |   | 23.16 |   |   |   | 784 |   |   |   | 23.91 |   |   |   | 678 |   |   |   | 22.55 |   |
| Unallocated                                                                                                               |   |                   | ---    |   |   |   | --- |   |   |   | 493 |   |   |   | --- |   |   |   | 231 |   |   |   | --- |   |   |   | 234 |   |   |   | --- |   |   |   | 3 |   |   |   | --- |   |
|     Total allowance for      loan losses                                |   | $                      | 4,508  |   |   |   | 100.00 | % |   | $ | 3,993 |   |   |   | 100.00 | % |   | $ | 3,199 |   |   |   | 100.00 | % |   | $ | 2,387 |   |   |   | 100.00 | % |   | $ | 1,879 |   |   |   | 100.00 | % |

|                                                                                                                                                                                                                                                                                                     |   | At June 30,            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                     |   | 2010                   |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                     |   | FairValue              |   |   | Percent ofPortfolio |   |   | FairValue |   |   | Percent ofPortfolio |   |   | FairValue |   |   | Percent ofPortfolio |   |
|                                                                                                                                                                                                                                                                                                     |   | (Dollars in thousands) |   |
|                                                                                                                                                                                                                                                                                                     |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. government and government   agencies                                         |   | $                      | 12,414 |   |   |   | 34.64 | % |   | $ | 3,279 |   |   |   | 13.39 | % |   | $ | 4,019 |   |   |   | 26.39 | % |
| State and political subdivisions                                                                                                                                                                                                                                                                         |   |                   | 19,769 |   |   |   | 55.17 |   |   |   | 13,623 |   |   |   | 55.60 |   |   |   | 6,031 |   |   |   | 39.59 |   |
| FHLMC preferred stock                                                                                                                                                                                                                                                                                    |   |                   | 6      |   |   |   | 0.02 |   |   |   | 8 |   |   |   | 0.03 |   |   |   | 295 |   |   |   | 1.94 |   |
| Other securities                                                                                 |   |                   | 442    |   |   |   | 1.23 |   |   |   | 3,000 |   |   |   | 12.24 |   |   |   | 1,563 |   |   |   | 10.26 |   |
| FHLB membership stock                                                                                                                                                                                                                                                                                    |   |                   | 2,622  |   |   |   | 7.32 |   |   |   | 4,592 |   |   |   | 18.74 |   |   |   | 3,324 |   |   |   | 21.82 |   |
| FRB membership stock                                                                                                                                                                                                                                                                                     |   |                   | 583    |   |   |   | 1.63 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                                                                            |   | $                      | 35,836 |   |   |   | 100.00 | % |   | $ | 24,502 |   |   |   | 100.00 | % |   | $ | 15,232 |   |   |   | 100.00 | % |
|                                                                                                                                                                                                                                                                                                     |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                                                                                                          |   | Available for Sale SecuritiesJune 30, 2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                          |   | AmortizedCost                              |   |   | FairValue |   |   | Tax-Equiv.Wtd.-Avg.Yield |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   | (Dollars in thousands)                     |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |                                       |   |   |   |   |   |   |   |
| U.S. government and government agency securities:                                                                                                                                                                                                                                                                                                                                             |   |                                       |   |   |   |   |   |   |   |
|    Due within 1 year                                                              |   | $                                          | 1,000  |   |   | $ | 1,009 |   |   |   | 5.14 | % |
|    Due after 1 year but within 5 years                                                                                                                                                                                                                                                                                                                                         |   |                                       | 1,000  |   |   |   | 1,000 |   |   |   | 1.25 |   |
|    Due after 5 years but within 10 years                                                                                                                                                                                                                                                                                                                                       |   |                                       | 6,248  |   |   |   | 6,288 |   |   |   | 2.89 |   |
|    Due over 10 years                                                              |   |                                       | 4,097  |   |   |   | 4,117 |   |   |   | 3.67 |   |
|    Total                                                                          |   |                                       | 12,345 |   |   |   | 12,414 |   |   |   | 3.19 |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |                                       |   |   |   |   |   |   |   |   |   |   |
| State and political subdivisions:                                                                                                                                                                                                                                                                                                                                                             |   |                                       |   |   |   |   |   |   |   |   |   |   |
|    Due within 1 year                                                              |   |                                       | 25     |   |   |   | 25 |   |   |   | 5.70 |   |
|    Due after 1 year but within 5 years                                                                                                                                                                                                                                                                                                                                         |   |                                       | 80     |   |   |   | 83 |   |   |   | 7.21 |   |
|    Due after 5 years but within 10 years                                                                                                                                                                                                                                                                                                                                       |   |                                       | 2,483  |   |   |   | 2,503 |   |   |   | 4.75 |   |
|    Due over 10 years                                                              |   |                                       | 16,764 |   |   |   | 17,158 |   |   |   | 6.00 |   |
|    Total                                                                          |   |                                       | 19,352 |   |   |   | 19,769 |   |   |   | 5.68 |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Other securities:                                                                                                                                                                                                                                                                                                                                                                             |   |                                       |   |   |   |   |   |   |   |   |   |   |
|    Due after 1 year but within 5 years                                                                                                                                                                                                                                                                                                                                         |   |                                       | -      |   |   |   | 6 |   |   |   | - |   |
|    Due after 5 years but within 10 years                                                                                                                                                                                                                                                                                                                                       |   |                                       | 246    |   |   |   | 251 |   |   |   | 5.94 |   |
|    Due over 10 years                                                              |   |                                       | 1,525  |   |   |   | 191 |   |   |   | 1.11 |   |
|    Total                                                                          |   |                                       | 1,771  |   |   |   | 448 |   |   |   | 1.44 |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |                                       |   |   |   |   |   |   |   |   |   |   |
| No stated maturity:                                                                                                                                                                                                                                                                                                                                                                           |   |                                       |   |   |   |   |   |   |   |   |   |   |
|    FHLB membership stock                                                          |   |                                       | 2,622  |   |   |   | 2,622 |   |   |   | 2.00 |   |
|    FRB membership stock                                                           |   |                                       | 583    |   |   |   | 583 |   |   |   | 6.00 |   |
|    Total                                                                          |   |                                       | 3,205  |   |   |   | 3,205 |   |   |   | 2.73 |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Total debt and other securities                                                                                                                                                                                                                                                                                                                                                               |   | $                                          | 36,673 |   |   | $ | 35,836 |   |   |   | 4.50 | % |

|                                                                                                                                                                                                                                                                                                                                                                                |   | At June 30, 2010 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                |   | (In thousands)   |   |
| Amounts due:                                                                                                                                                                                                                                                                                                                                                                        |   |             |   |
|   Within 1 year                                                              |   | $                | 204    |   |
|   After 1 year through 3 years                                                                                                                                                                                                                                                                                                                                            |   |             | 308    |   |
|   After 3 years through 5 years                                                                                                                                                                                                                                                                                                                                           |   |             | 1,332  |   |
|   After 5 years                                                              |   |             | 30,738 |   |
|     Total                                                          |   | $                | 32,582 |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |             |   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                  |   | At June 30, 2010 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                  |   | (In thousands)   |   |
| Interest rate terms on amounts due after 1 year:                                                                                                                                                                                                                                                                                                                                                      |   |             |   |
|    Fixed                                                                                  |   | $                | 32,378 |   |
|    Adjustable                                                                             |   |             | 204    |   |
|        Total                                                          |   | $                | 32,582 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                  |   |             |   |   |

|                                                                               |   | At June 30,    |   |
|------------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                               |   | 2010           |   |   | 2009 |   |   | 2008 |   |
|                                                                               |   | AmortizedCost  |   |   | FairValue |   |   | AmortizedCost |   |   | FairValue |   |   | AmortizedCost |   |   | FairValue |   |
|                                                                               |   | (In thousands) |   |
|                                                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLMC certificates                                                                 |   | $              | 7,317  |   |   | $ | 7,815 |   |   | $ | 10,163 |   |   | $ | 10,398 |   |   | $ | 13,114 |   |   | $ | 12,825 |   |
| GNMA certificates                                                                  |   |           | 99     |   |   |   | 101 |   |   |   | 114 |   |   |   | 115 |   |   |   | 128 |   |   |   | 127 |   |
| FNMA certificates                                                                  |   |           | 7,102  |   |   |   | 7,613 |   |   |   | 9,812 |   |   |   | 10,112 |   |   |   | 11,247 |   |   |   | 11,093 |   |
| Collateralized mortgage obligations issued   by government agencies |   |           | 18,064 |   |   |   | 18,805 |   |   |   | 18,925 |   |   |   | 19,644 |   |   |   | 3,935 |   |   |   | 3,961 |   |
|        Total                                    |   | $              | 32,582 |   |   | $ | 34,334 |   |   | $ | 39,014 |   |   | $ | 40,269 |   |   | $ | 28,424 |   |   | $ | 28,006 |   |
|                                                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| WeightedAverageInterestRate at 6/30 |   |   | Term   |               | Category |                          | MinimumAmount |   |   | Balance        |   |   | Percentageof TotalDeposits |   |
|-------------------------------------|--------|--------|--------|--------------------|----------|-------------------------------|---------------|--------|--------|----------------|--------|--------|----------------------------|--------|
|                                |   |   |   |               |     |                          |          |   |   | (In thousands) |   |   |                       |   |
|                                |   |   |   |               |     |                          |          |   |   |           |   |   |                       |   |
|                                | 0.00   | %      |   | None               |     | Non-interest Bearing          |          | $      | 100    |           |   | $      | 28,795                     |   |   |   | 6.81 | % |
|                                | 2.34   |   |   | None               |     | NOW Accounts                  |          |   | 100    |           |   |   | 103,713                    |   |   |   | 24.52 |   |
|                                | 1.10   |   |   | None               |     | Savings Accounts              |          |   | 100    |           |   |   | 90,385                     |   |   |   | 21.37 |   |
|                                | 1.39   |   |   | None               |     | Money Market Deposit Accounts |          |   | 1,000  |           |   |   | 7,480                      |   |   |   | 1.77 |   |
|                                |   |   |   |               |     |                          |          |   |   |           |   |   |                       |   |   |   |   |   |
|                                |   |   |   |               |     | Certificates of Deposit       |          |   |   |           |   |   |                       |   |   |   |   |   |
|                                | 1.94   |   |   | Less than 6 months |     | Fixed Rate/Term               |          |   | 1,000  |           |   |   | 9,129                      |   |   |   | 2.16 |   |
|                                | 1.54   |   |   | Less than 6 months |     | IRA Fixed Rate/Term           |          |   | 1,000  |           |   |   | 733                        |   |   |   | 0.17 |   |
|                                | 2.42   |   |   | 7-12 months        |     | Fixed Rate/Term               |          |   | 1,000  |           |   |   | 73,273                     |   |   |   | 17.33 |   |
|                                | 2.58   |   |   | 7-12 months        |     | IRA Fixed Rate/Term           |          |   | 1,000  |           |   |   | 9,049                      |   |   |   | 2.14 |   |
|                                | 2.93   |   |   | 13-24 months       |     | Fixed Rate/Term               |          |   | 1,000  |           |   |   | 35,971                     |   |   |   | 8.51 |   |
|                                | 2.80   |   |   | 13-24 months       |     | IRA Fixed Rate/Term           |          |   | 1,000  |           |   |   | 4,396                      |   |   |   | 1.04 |   |
|                                | 1.00   |   |   | 13-24 months       |     | IRA Variable Rate/Fixed Term  |          |   | 1,000  |           |   |   | 253                        |   |   |   | 0.06 |   |
|                                | 3.69   |   |   | 25-36 months       |     | Fixed Rate/Term               |          |   | 1,000  |           |   |   | 29,123                     |   |   |   | 6.89 |   |
|                                | 3.77   |   |   | 25-36 months       |     | IRA Fixed Rate/Term           |          |   | 1,000  |           |   |   | 7,379                      |   |   |   | 1.74 |   |
|                                | 4.03   |   |   | 48 months and more |     | Fixed Rate/Term               |          |   | 1,000  |           |   |   | 18,851                     |   |   |   | 4.46 |   |
|                                | 4.26   |   |   | 48 months and more |     | IRA Fixed Rate/Term           |          |   | 1,000  |           |   |   | 4,363                      |   |   |   | 1.03 |   |
|                                |   |   |   |               |     |                          |          |   |   |           |   |   |                       |   |   |   |   |   |
|                                |   |   |   |               |     |                          |          |   |   |           |   | $      | 422,893                    |   |   |   | 100.00 | % |
|                                |   |   |   |               |     |                          |          |   |   |           |   |   |                       |   |   |   |   |   |

| Maturity Period                                                                                                                                                                                                                                                                                                                                                                     |   | Amount         |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                |   | (In thousands) |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |           |   |
| Three months or less                                                                   |   | $              | 21,393 |   |
| Over three through six months                                                                                                                                                                                                                                                                                                                                                       |   |           | 15,891 |   |
| Over six through twelve months                                                                                                                                                                                                                                                                                                                                                      |   |           | 28,603 |   |
| Over 12 months                                                                         |   |           | 19,639 |   |
|     Total                                                          |   | $              | 85,526 |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |           |   |   |

|   |        |                                                                                                                                                                            | At June 30,    |    |
|--------|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|---------|
|   |        |                                                                                                                                                                            | 2010           |    |   | 2009 |   |   | 2008 |   |
|   |        |                                                                                                                                                                            | (In thousands) |    |
|   |        |                                                                                                                                                                            |           |    |   |   |   |   |   |   |
|   | 0.00 - 0.99 | %                              |           | $       | 5,577 |   |   | $ | - |   |   | $ | - |   |
|   | 1.00 - 1.99 | %                              |           |    | 82,606 |   |   |   | 45,344 |   |   |   | 7,135 |   |
|   | 2.00 - 2.99 | %                              |           |    | 57,961 |   |   |   | 51,949 |   |   |   | 33,105 |   |
|   | 3.00 - 3.99 | %                              |           |    | 33,905 |   |   |   | 47,718 |   |   |   | 50,555 |   |
|   | 4.00 - 4.99 | %                              |           |    | 10,737 |   |   |   | 13,898 |   |   |   | 48,414 |   |
|   | 5.00 - 5.99 | %                              |           |    | 1,735 |   |   |   | 1,397 |   |   |   | 11,149 |   |
|   |        |                                                                                                                                                                            |           |    |   |   |   |   |   |   |   |   |   |   |
| Total  |        |                                                                                                                                                                            | $              | 192,521 |   |   | $ | 160,306 |   |   | $ | 150,358 |   |
|   |        |                                                                                                                                                                            |           |    |   |   |   |   |   |   |   |   |   |   |

|                     |   |   | Amount Due             |    |
|--------------------------|--------|--------|------------------------|---------|
|                     |   |   | LessThan OneYear       |    |   | 1-2Years |   |   | 2-3Years |   |   | 3-4Years |   |   | After4 Years |   |   | Total |   |   | Percentof TotalCertificateAccounts |   |
|                     |   |   | (Dollars in thousands) |    |
|                     |   |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  0.00 – 0.99% |   |   | $                      | 5,577   |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 5,577 |   |   |   | 2.90 | % |
|  1.00 – 1.99% |   |   |                   | 78,398  |   |   |   | 4,201 |   |   |   | - |   |   |   | - |   |   |   | 7 |   |   |   | 82,606 |   |   |   | 42.91 |   |
|  2.00 - 2.99%       |   |   |                   | 40,116  |   |   |   | 14,311 |   |   |   | 3,159 |   |   |   | 375 |   |   |   | - |   |   |   | 57,961 |   |   |   | 30.11 |   |
|  3.00 - 3.99%       |   |   |                   | 17,567  |   |   |   | 561 |   |   |   | 3,635 |   |   |   | 5,060 |   |   |   | 7,082 |   |   |   | 33,905 |   |   |   | 17.61 |   |
|  4.00 - 4.99%       |   |   |                   | 6,073   |   |   |   | 2,137 |   |   |   | 1,966 |   |   |   | 561 |   |   |   | - |   |   |   | 10,737 |   |   |   | 5.58 |   |
|  5.00 - 5.99%       |   |   |                   | 217     |   |   |   | 858 |   |   |   | 660 |   |   |   | - |   |   |   | - |   |   |   | 1,735 |   |   |   | 0.90 |   |
|                     |   |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                    |   |   | $                      | 147,948 |   |   | $ | 22,068 |   |   | $ | 9,420 |   |   | $ | 5,996 |   |   | $ | 7,089 |   |   | $ | 192,521 |   |   |   | 100.00 | % |
|                     |   |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                  |   | At June 30,            |    |
|--------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                       |   | 2010                   |    |   | 2009 |   |   | 2008 |   |
|                                                                                       |   | Amount                 |    |   | Percent ofTotal |   |   | Increase(Decrease) |   |   | Amount |   |   | Percent ofTotal |   |   | Increase(Decrease) |   |   | Amount |   |   | Percent ofTotal |   |   | Increase(Decrease) |   |
|                                                                                       |   | (Dollars in thousands) |    |
|                                                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest bearing                                                                        |   | $                      | 28,795  |   |   |   | 6.81 | % |   |   | 7,491 |   |   | $ | 21,304 |   |   |   | 6.83 | % |   |   | 2,083 |   |   | $ | 19,221 |   |   |   | 6.58 | % |   |   | (3,055 | ) |
| NOW checking                                                                               |   |                   | 103,713 |   |   |   | 24.52 |   |   |   | 38,599 |   |   |   | 65,114 |   |   |   | 20.87 |   |   |   | 27,964 |   |   |   | 37,150 |   |   |   | 12.71 |   |   |   | 6,027 |   |
| Savings accounts                                                                           |   |                   | 90,385  |   |   |   | 21.37 |   |   |   | 31,787 |   |   |   | 58,598 |   |   |   | 18.78 |   |   |   | (14,825 | ) |   |   | 73,423 |   |   |   | 25.12 |   |   |   | (5,485 | ) |
| Money market deposit                                                                       |   |                   | 7,480   |   |   |   | 1.77 |   |   |   | 847 |   |   |   | 6,633 |   |   |   | 2.13 |   |   |   | (5,472 | ) |   |   | 12,105 |   |   |   | 4.14 |   |   |   | 4,893 |   |
| Fixed-rate certificates   which mature(1):                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Within one year                                                          |   |                   | 147,824 |   |   |   | 34.96 |   |   |   | 35,160 |   |   |   | 112,664 |   |   |   | 36.12 |   |   |   | (17,217 | ) |   |   | 129,881 |   |   |   | 44.44 |   |   |   | 12,976 |   |
|    Within three years                                                       |   |                   | 31,359  |   |   |   | 7.42 |   |   |   | (1,657 | ) |   |   | 33,016 |   |   |   | 10.58 |   |   |   | 19,698 |   |   |   | 13,318 |   |   |   | 4.56 |   |   |   | 4,565 |   |
|    After three years                                                        |   |                   | 13,085  |   |   |   | 3.09 |   |   |   | (1,259 | ) |   |   | 14,344 |   |   |   | 4.60 |   |   |   | 7,468 |   |   |   | 6,876 |   |   |   | 2.35 |   |   |   | 2,282 |   |
| Variable-rate certificates   which mature:   Within one year |   |                   | 124     |   |   |   | 0.03 |   |   |   | (22 | ) |   |   | 146 |   |   |   | 0.05 |   |   |   | (2 | ) |   |   | 144 |   |   |   | 0.05 |   |   |   | (33 | ) |
|    Within three years                                                       |   |                   | 128     |   |   |   | 0.03 |   |   |   | (8 | ) |   |   | 136 |   |   |   | 0.04 |   |   |   | (3 | ) |   |   | 139 |   |   |   | 0.05 |   |   |   | (1 | ) |
|        Total                                            |   | $                      | 422,893 |   |   |   | 100.00 | % |   | $ | 110,938 |   |   | $ | 311,955 |   |   |   | 100.00 | % |   | $ | 19,698 |   |   | $ | 292,257 |   |   |   | 100.00 | % |   | $ | 22,169 |   |
|                                                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                                                                           |   | At June 30,    |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|
|                                                                                                                                                                                                                                                                                                                                                           |   | 2010           |    |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                                                                           |   | (In thousands) |    |
|                                                                                                                                                                                                                                                                                                                                                           |   |           |    |   |   |   |   |   |   |
| Beginning Balance                                                                     |   | $              | 422,893 |   |   | $ | 292,257 |   |   | $ | 270,088 |   |
|                                                                                                                                                                                                                                                                                                                                                           |   |           |    |   |   |   |   |   |   |   |   |   |
| Net increase before interest credited                                                                                                                                                                                                                                                                                                                          |   |           | 104,088 |   |   |   | 13,700 |   |   |   | 14,355 |   |
| Interest credited                                                                                                                                                                                                                                                                                                                                         |   |           | 6,850   |   |   |   | 5,998 |   |   |   | 7,814 |   |
| Net increase in deposits                                                              |   |           | 110,938 |   |   |   | 19,698 |   |   |   | 22,169 |   |
|                                                                                                                                                                                                                                                                                                                                                           |   |           |    |   |   |   |   |   |   |   |   |   |
|    Ending balance                                                      |   | $              | 422,893 |   |   | $ | 311,955 |   |   | $ | 292,257 |   |
|                                                                                                                                                                                                                                                                                                                                                           |   |           |    |   |   |   |   |   |   |   |   |   |

|                                           |   | Year Ended June 30,    |   |
|------------------------------------------------|--------|------------------------|--------|
|                                           |   | 2010                   |   |   | 2009 |   |   | 2008 |   |
|                                           |   | (Dollars in thousands) |   |
| Year end balances                              |   |                   |   |   |   |   |   |   |   |
| Short-term FHLB advances                       |   | $                      | -      |   |   | $ | 6,250 |   |   | $ | 5,550 |   |
| Securities sold under agreements to repurchase |   |                   | 30,369 |   |   |   | 23,748 |   |   |   | 21,804 |   |
| Total short-term borrowings                    |   | $                      | 30,369 |   |   | $ | 29,998 |   |   | $ | 27,354 |   |
|                                           |   |                   |   |   |   |   |   |   |   |   |   |   |
| Weighted average rate at year end              |   |                   | 0.85   | % |   |   | 0.73 | % |   |   | 1.90 | % |

|                                           |   | Year Ended June 30,    |   |
|------------------------------------------------|--------|------------------------|--------|
|                                           |   | 2010                   |   |   | 2009 |   |   | 2008 |   |
|                                           |   | (Dollars in thousands) |   |
| FHLB advances                                  |   |                   |   |   |   |   |   |   |   |
| Daily average balance                          |   | $                      | 57,399 |   |   | $ | 77,923 |   |   | $ | 58,526 |   |
| Weighted average interest rate                 |   |                   | 4.68   | % |   |   | 4.43 | % |   |   | 5.25 | % |
| Maximum outstanding at any month end           |   | $                      | 72,500 |   |   | $ | 92,675 |   |   | $ | 65,600 |   |
|                                           |   |                   |   |   |   |   |   |   |   |   |   |   |
| Securities sold under agreements to repurchase |   |                   |   |   |   |   |   |   |   |   |   |   |
| Daily average balance                          |   | $                      | 27,674 |   |   | $ | 24,345 |   |   | $ | 20,567 |   |
| Weighted average interest rate                 |   |                   | 0.84   | % |   |   | 0.94 | % |   |   | 3.31 | % |
| Maximum outstanding at any month end           |   | $                      | 31,230 |   |   | $ | 27,819 |   |   | $ | 24,659 |   |
|                                           |   |                   |   |   |   |   |   |   |   |   |   |   |
| Subordinated Debt                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Daily average balance                          |   | $                      | 7,217  |   |   | $ | 7,217 |   |   | $ | 7,217 |   |
| Weighted average interest rate                 |   |                   | 3.15   | % |   |   | 4.95 | % |   |   | 7.47 | % |
| Maximum outstanding at month end               |   | $                      | 7,217  |   |   | $ | 7,217 |   |   | $ | 7,217 |   |

|   | •  | A new independent Consumer Financial Protection Bureau (CFPB) will be established within the Federal Reserve, empowered to exercise broad regulatory, supervisory and enforcement authority with respect to both new and existing consumer financial protection laws. Financial institutions with assets of less than $10 billion, like the Bank, will be subject to supervision and enforcement by their primary federal banking regulator with respect to federal consumer financial protection laws. |
|--------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •  | The Federal Deposit Insurance Act was amended to direct federal regulators to require depository institution holding companies to serve as a source of strength for their depository institution subsidiaries. |
|--------|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •  | The current prohibition on payment of interest on demand deposits was repealed, effective July 21, 2011. |
|--------|---------------|---------------------------------------------------------------------------------------------------------------|

|   | •  | Deposit insurance is permanently increased to $250,000 and unlimited deposit insurance for noninterest-bearing transaction accounts is extended through December 31, 2013. |
|--------|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •  | The deposit insurance assessment base will be the depository institution's total average assets minus the sum of its average tangible equity during the assessment period. |
|--------|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •  | The minimum reserve ratio of the Deposit Insurance Fund increased to 1.35 percent of estimated annual insured deposits or assessment base; however, the Federal Deposit Insurance Corporation is directed to "offset the effect" of the increased reserve ratio for insured depository institutions with total consolidated assets of less than $10 billion. |
|--------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  •  | Tier 1 capital treatment for "hybrid" capital items like trust preferred securities (TPS), but not TARP instruments, is eliminated, but TPS issued before May 21, 2010 by a bank holding company with assts of less than $15 billion as of December 31, 209 will continue to be eligible as Tier 1 capital. Under the Dodd-Frank Act, the federal banking agencies must promulgate new rules on regulatory capital within 18 months from July 21, 2010, for both depository institutions and their holding companies, to include leverage capital and risk-based capital measures at least as stringent as those now applicable to the Bank under the prompt corrective action regulations. |
|--------|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  •  | Public companies will be required to provide their shareholders with a non-binding vote: (i) at least once every three years on the compensation paid to executive officers, and (ii) at least once every six years on whether they should have a "say on pay" vote every one, two or three years. |
|--------|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  •  | A separate, non-binding shareholder vote will be required regarding golden parachutes for named executive officers when a shareholder vote takes place on mergers, acquisitions, dispositions or other transactions that would trigger the parachute payments. |
|--------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  •  | Securities exchanges will be required to prohibit brokers from using their own discretion to vote shares not beneficially owned by them for certain "significant" matters, which include votes on the election of directors, executive compensation matters, and any other matter determined to be significant. |
|--------|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  •  | Stock exchanges, not including the OTC Bulletin Board, will be prohibited from listing the securities of any issuer that does not have a policy providing for (i) disclosure of its policy on incentive compensation payable on the basis of financial information reportable under the securities laws, and (ii) the recovery from current or former executive officers, following an accounting restatement triggered by material noncompliance with securities law reporting requirements, of any incentive compensation paid erroneously during the three-year period preceding the date on which the restatement was required that exceeds the amount that would have been paid on the basis of the restated financial information. |
|--------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  •  | Disclosure in annual proxy materials will be required concerning the relationship between the executive compensation paid and the financial performance of the issuer. |
|--------|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  •  | Item 402 of Regulation S-K will be amended to require companies to disclose the ratio of the Chief Executive Officer's annual total compensation to the median annual total compensation of all other employees. |
|--------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  •  | Smaller reporting companies are exempt from complying with the internal control auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act. |
|--------|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the development of a public/private investment fund essentially structured as a government sponsored enterprise with the mission to purchase troubled assets from banks with an initial capitalization from government funds; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the Capital Assistance Program under which the Treasury will purchase additional preferred stock available only for banks that have undergone a new stress test given by their regulator; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an expansion of the Federal Reserve's term asset-backed liquidity facility to support the purchase of up to $1 trillion in AAA-rated asset backed securities backed by consumer, student, and small business loans, and possible other types of loans; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the establishment of a mortgage loan modification program with $50 billion in federal funds further detailed in the HASP. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | cash flow of the borrower and/or the project being financed; |
|--------------------|--------------------------------------------------------------|

| ·   | in the case of a collateralized loan, the changes and uncertainties as to the future value of the collateral; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | the credit history of a particular borrower; |
|--------------------|----------------------------------------------|

| ·   | changes in economic and industry conditions; and |
|--------------------|--------------------------------------------------|

| ·   | the duration of the loan. |
|--------------------|---------------------------|

| ·   | an ongoing review of the quality, size and diversity of the loan portfolio; |
|--------------------|-----------------------------------------------------------------------------|

| ·   | evaluation of non-performing loans; |
|--------------------|-------------------------------------|

| ·   | historical default and loss experience; |
|--------------------|-----------------------------------------|

| ·   | historical recovery experience; |
|--------------------|---------------------------------|

| ·   | existing economic conditions; |
|--------------------|-------------------------------|

| ·   | risk characteristics of the various classifications of loans; and |
|--------------------|-------------------------------------------------------------------|

| ·   | the amount and quality of collateral, including guarantees, securing the loans. |
|--------------------|---------------------------------------------------------------------------------|

| ·   | loan delinquencies may increase; |
|--------------------|----------------------------------|

| ·   | problem assets and foreclosures may increase; |
|--------------------|-----------------------------------------------|

| ·   | demand for our products and services may decline; and |
|--------------------|-------------------------------------------------------|

| ·   | collateral for loans made by us, especially real estate, may decline in value, in turn reducing a customer's borrowing power and reducing the value of assets and collateral securing our loans. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Location                                     |   | YearOpened             |   | Building NetBook Value as ofJune 30, 2010 |   | LandOwned/Leased |   | BuildingOwned/Leased |
|----------------------------------------------|--------|------------------------|--------|-------------------------------------------|--------|------------------|--------|----------------------|
|                                         |   | (Dollars in thousands) |
| Main Office                                  |   |                   |   |                                      |   |             |   |                 |
|                                         |   |                   |   |                                      |   |             |   |                 |
| 531 Vine St.Poplar Bluff, Missouri           |   | 1966                   |   | $                                         | 638    |             | Owned  |                 | Owned |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| Branch Offices                               |   |                   |   |                                      |   |             |   |                 |   |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| 502 Main St.Van Buren, Missouri              |   | 1982                   |   |                                      | 15     |             | Owned  |                 | Owned |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| 1330 N. Westwood Blvd.Poplar Bluff, Missouri |   | 1976                   |   |                                      | 51     |             | Leased |                 | Owned |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| 4214 Highway PPPoplar Bluff, Missouri        |   | 2001                   |   |                                      | 488    |             | Owned  |                 | Owned |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| 713 Business 60 WestDexter, Missouri         |   | 1979                   |   |                                      | 28     |             | Owned  |                 | Owned |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| 301 First St.Kennett, Missouri               |   | 2000                   |   |                                      | 760    |             | Owned  |                 | Owned |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| 302 Washington St.Doniphan, Missouri         |   | 2001                   |   |                                      | 535    |             | Owned  |                 | Owned |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| 13371 Highway 53Qulin, Missouri              |   | 2000                   |   |                                      | 89     |             | Owned  |                 | Owned |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| 1205 S. Main St.Sikeston, Missouri           |   | 2006                   |   |                                      | 897    |             | Owned  |                 | Owned |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| 100 W. Main St.Matthews, Missouri            |   | 2008                   |   |                                      | ---    |             | Leased |                 | Leased |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| 1727 W. KingshighwayParagould, Arkansas      |   | 2009                   |   |                                      | 628    |             | Leased |                 | Owned |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| 2775 E. NettletonJonesboro, Arkansas         |   | 2009                   |   |                                      | 348    |             | Owned  |                 | Owned |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| 100 N. MainLeachville, Arkansas              |   | 2009                   |   |                                      | 103    |             | Owned  |                 | Owned |
|                                         |   |                   |   |                                      |   |             |   |                 |   |
| 601 N. HolmanBrookland, Arkansas             |   | 2009                   |   |                                      | 138    |             | Owned  |                 | Owned |

|                     |   | Total #of SharesPurchased |   |   | AveragePricePaid PerShare |   |   | Total # of SharesPurchased as Part of a PubliclyAnnouncedProgram |   |   | Maximum Number of Shares ThatMay Yet Be Purchased |   |
|--------------------------|--------|---------------------------|--------|--------|---------------------------|--------|--------|------------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|
| 06/01/10-06/30/10 period |   |                      | -      |   |                      |   | -      |                                                             |   |   | -                                                 |   |   |   | - |   |
| 05/01/10-05/31/10 period |   |                      | -      |   |                      |   | -      |                                                             |   |   | -                                                 |   |   |   | - |   |
| 04/01/10-04/30/10 period |   |                      | -      |   |                      |   | -      |                                                             |   |   | -                                                 |   |   |   | - |   |
|                     |   |                      |   |   |                      |   |   |                                                             |   |   |                                              |   |   |   |   |   |

|   | (a) | Consolidated Balance Sheets as of June 30, 2010 and 2009*                                         |
|--------|-----|---------------------------------------------------------------------------------------------------|
|   | (b) | Consolidated Statements of Income for the Years Ended June 30, 2010, 2009 and 2008*               |
|   | (c) | Consolidated Statements of Stockholders' Equity For the Years Ended June 30, 2010, 2009 and 2008* |
|   | (d) | Consolidated Statements of Cash Flows For the Years Ended June 30, 2010, 2009 and 2008*           |
|   | (e) | Notes to Consolidated Financial Statements*                                                       |

| Date:  September 17, 2010 | By: | /s/ Greg A. Steffens                                                           Greg A. SteffensPresident(Principal Executive and Principal Financial  and Accounting Officer) |
|-------------------------------------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Plan Category                                 |   | Number of securities tobe issued upon exerciseof outstanding optionswarrants and rights |    |   | Weighted-averageexercise price ofoutstanding optionswarrants and rights |   |   | Number of Securitiesremaining available forfuture issuance underequity compensation plans |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|---------|--------|-------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                          |   |                                                                                    |    |   |                                                                    |   |   |                                                                                           |   |
|  Equity Compensation Plans Approved By Security Holders                                                                                                                                                  |   |                                                                                    | 105,500 |   |                                                                    | $      | 13.77  |                                                                                           |   |   | 4,500 |   |
|  Equity Compensation Plans Not Approved By Security Holders                                                                                                                                              |   |                                                                                    | ---     |   |                                                                    |   | ---    |                                                                                           |   |   | --- |   |
|  Capital Purchase Program Implemented by the U.S. Treasury                                                                                                                                               |   |                                                                                    | 114,326 |   |                                                                    | $      | 12.53  |                                                                                           |   |   | n/a |   |
|                                                                                                                                                                                                          |   |                                                                                    |    |   |                                                                    |   |   |                                                                                           |   |   |   |   |

| Regulation S-KExhibit Number  |   | Document                                 |   | Reference toPrior Filingor Exhibit NumberAttached Hereto                   |
|------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|
|                               |   |                                                                                                                                                                                                     |   |                                                                            |
| 3(i)                               |   | Certificate of Incorporation of the Registrant                                                                                                                                                           |   | +                                                                               |
| 3(ii)                              |   | Bylaws of the Registrant                                                                                                                                                                                 |   | +                                                                               |
| 10                                 |   | Material contracts:                                                                                                                                                                                      |   |                                                                            |
|                               |   |                                                                                                                                                                                                     | (a)    | Registrant's 1994 Stock Option Plan                                             |   | * |
|                               |   |                                                                                                                                                                                                     | (b)    | Southern Missouri Savings Bank, FSBManagement Recognition and Development Plans |   | * |
|                               |   |                                                                                                                                                                                                     | (c)    | Employment Agreements:                                                          |   | ** |
|                               |   |                                                                                                                                                                                                     |   | (i)                                                                             | Greg A. Steffens |   | ** |
|                               |   |                                                                                                                                                                                                     | (d)    |     Director's Retirement Agreements                                  |   |   |
|                               |   |                                                                                                                                                                                                     |   | (ii)                                                                            | Samuel H. Smith |   | *** |
|                               |   |                                                                                                                                                                                                     |   | (iii)                                                                           | Sammy A. Schalk |   | **** |
|                               |   |                                                                                                                                                                                                     |   | (iv)                                                                            | Ronnie D. Black |   | **** |
|                               |   |                                                                                                                                                                                                     |   | (v)                                                                             | L. Douglas Bagby |   | **** |
|                               |   |                                                                                                                                                                                                     |   | (vi)                                                                            | Rebecca McLane Brooks |   | ***** |
|                               |   |                                                                                                                                                                                                     |   | (vii)                                                                           | Charles R. Love |   | ***** |
|                               |   |                                                                                                                                                                                                     |   | (viii)                                                                          | Charles R. Moffitt |   | ***** |
|                               |   |                                                                                                                                                                                                     |   | (ix)                                                                            | Dennis C. Robison |   | ++ |
|                               |   |                                                                                                                                                                                                     | (e)    |     Tax Sharing Agreement                                             |   | *** |
| 11                                 |   | Statement Regarding Computation of Per Share Earnings                                                                                                                                                    |   | 11                                                                              |
| 13                                 |   | 2010 Annual Report to Stockholders                                                                                                                                                                       |   | 13                                                                              |
| 14                                 |   | Code of Conduct and Ethics                                                                                                                                                                               |   | 14                                                                              |
| 21                                 |   | Subsidiaries of the Registrant                                                                                                                                                                           |   | 21                                                                              |
| 23                                 |   | Consent of Auditors                                                                                                                                                                                      |   | 23                                                                              |
| 31                                 |   | Rule 13a-14(a)/15d-14(a) Certifications                                                                                                                                                                  |   | 31                                                                              |
| 32                                 |   | Section 1350 Certifications                                                                                                                                                                              |   | 32                                                                              |
| 99                                 |   | 31 C.F.R. section 30.15 Certification of Principal Executive and Financial Officer                                                                                                                       |   | 99                                                                              |

| *     | Filed as an exhibit to the Registrant's 1994 annual meeting proxy statement dated October 21, 1994.               |
|-------|-------------------------------------------------------------------------------------------------------------------|
| **    | Filed as an exhibit to the Registrant's Annual Report on Form 10-KSB for the year ended June 30, 1999.            |
| ***   | Filed as an exhibit  to the Registrant's Annual Report on Form 10-KSB for the year ended June 30, 1995. |
| ****  | Filed as an exhibit to the registrant's Report on Form 10-QSB for the quarter ended December 31, 2000.            |
| ***** | Filed as an exhibit to the registrant's Report on Form 10-QSB for the quarter ended December 31, 2004.            |
| +     | Filed as an exhibit to the Registrant's Annual Report on Form 10-K for the year ended June 30, 1999.              |
| ++    | Filed as an exhibit to the Registrant's Quarterly Report on Form 10-Q for the quarter ended December 31, 2008.    |

|   |               |   | SOUTHERN MISSOURI BANCORP, INC. |
|--------|--------------------|--------|---------------------------------|
|   |               |   |                            |   |
| Date:  | September 17, 2010 |   | By:                             | /s/ Greg A. Steffens                                      Greg A. SteffensPresident(Duly Authorized Representative) |

|  By: |  /s/ Samuel H. Smith                                                                 Samuel H. SmithChairman of the Board of Directors                                                     |   | September 17, 2010       |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|
|  By: |  /s/ Greg A. Steffens                                                                 Greg A. SteffensPresident(Principal Executive and Financial   and Accounting Officer) |   | September 17, 2010  |
|  By: |  /s/ Sammy A. Schalk                             Sammy A. SchalkVice Chairman and Director                                                                                                                                                                                                                                                                                          |   | September 17, 2010       |
|  By: |  /s/ Ronnie D. Black                                                                 Ronnie D. BlackSecretary and Director                                                                 |   | September 17, 2010       |
|  By: |  /s/ L. Douglas Bagby                                                                L. Douglas BagbyDirector                                                                                   |   | September 17, 2010       |
|  By: |  /s/ Rebecca McLane Brooks                                                  Rebecca McLane BrooksDirector                                                                                                                                                             |   | September 17, 2010       |
|  By: |  /s/ Charles R. Love                                                                 Charles R. LoveDirector                                                                               |   | September 17, 2010       |
|  By: |  /s/ Charles R. Moffitt                                                              Charles R. MoffittDirector                                                                                           |   | September 17, 2010       |
|  By: |  /s/ Dennis C. Robison                                                              Dennis C. RobisonDirector                                                                                             |   | September 17, 2010       |

| Regulation S-KExhibit Number  |   |  Document                                                                                     |
|------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|  10.1                         |   |  Named Executive Officer Salary and Bonus Agreement for 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|  10.2                         |   |  Director Fee Arrangements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|  11                           |   |  Statement Regarding Computation of Per Share Earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|  13                           |   |  2010 Annual Report to Stockholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|  14                           |   |  Code of Conduct and Ethics                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|  21                           |   |  Subsidiaries of the Registrant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|  23.1                         |   |  Consent of Auditors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|  23.2                         |   |  Consent of Auditors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|  31                           |   |  Rule 13a-14(a)/15d-14(a) Certifications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|  32                           |   |  Section 1350 Certifications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|  99                           |   |  31 C.F.R. section 30.15 Certification of Principal Executive and Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                               |