| Maryland                                | 20-4797391                           |
|-----------------------------------------|--------------------------------------|
| (State or other jurisdiction of         | (I.R.S. Employer Identification No.) |
| incorporation or organization)          |                                 |
|                                    |                                 |
| 6814 Goshen Road, Edwardsville, IL      | 62025                                |
| (Address of principal executive office) | (Zip Code)                           |

| Large accelerated filer   ̈                                                       | Accelerated filer  ̈                    |
|-------------------------------------------------------------------------------------------------|---------------------------------------------|
|                                                                                            |                                        |
| Non-accelerated filer  ̈    (do not check if smaller reporting company) | Smaller reporting company  ý |

| Class                                  |   | Outstanding November 10, 2009 |
|----------------------------------------|--------|-------------------------------|
| Common Stock, par value $.10 per share |   | 8,007,996                     |

----

D

|                                                                                                     | PAGE NO. |
|----------------------------------------------------------------------------------------------------------|----------|
|                                                                                                     |     |
|                                                                                                     |     |
| PART I - Financial Information                                                                           |     |
|                                                                                                     |     |
| Item 1.  Financial Statements  (Unaudited)                                           |     |
|                                                                                                     |     |
| Consolidated Balance Sheets                                                                              | 3        |
|                                                                                                     |     |
| Consolidated Statements of Operations                                                                    | 4        |
|                                                                                                     |     |
| Consolidated Statements of Comprehensive Income (Loss)                                                   | 5        |
|                                                                                                     |     |
| Consolidated Statements of Cash Flows                                                                    | 6        |
|                                                                                                     |     |
| Notes to Consolidated Financial Statements                                                               | 8        |
|                                                                                                     |     |
| Item 2.  Management's Discussion and Analysis of Financial Condition and results of Operations | 23       |
|                                                                                                     |     |
| Item 3.  Quantitative and Qualitative Disclosures about Market Risk                            | 38       |
|                                                                                                     |     |
| Item 4.  Controls and Procedures                                                               | 41       |
|                                                                                                     |     |
|                                                                                                     |     |
| PART II - Other Information                                                                              |     |
|                                                                                                     |     |
| Item 1.  Legal Proceedings                                                                     | 42       |
|                                                                                                     |     |
| Item 1A.  Risk Factors                                                                         | 42       |
|                                                                                                     |     |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                           | 43       |
|                                                                                                     |     |
| Item 3.  Defaults Upon Senior Securities                                                       | 43       |
|                                                                                                     |     |
| Item 4.  Submission of Matters to a Vote of Security Holders                                   | 43       |
|                                                                                                     |     |
| Item 5.  Other Information                                                                     | 43       |
|                                                                                                     |     |
| Item 6.  Exhibits                                                                              | 43       |
|                                                                                                     |     |
| Signatures                                                                                               | 44       |

----

Index

d

(
u

|                                                                           |   | September 30, |        |   | December 31, |   |
|--------------------------------------------------------------------------------|--------|---------------|-------------|--------|--------------|--------|
| Assets                                                                         |   | 2009          |        |   | 2008         |   |
| Cash and due from banks                                                        |   | $             | 7,246,835   |   |         | $      | 19,290,559 |   |
| Interest-earning deposits                                                      |   |          | 13,769,636  |   |         |   | 13,562,730 |   |
| Federal funds sold                                                             |   |          | 33,853,199  |   |         |   | 34,282,095 |   |
| Total cash and cash equivalents                                                |   |          | 54,869,670  |   |         |   | 67,135,384 |   |
| Interest-earning time deposits                                                 |   |          | -           |   |         |   | 5,210,461 |   |
| Securities available for sale                                                  |   |          | 96,482,283  |   |         |   | 103,567,578 |   |
| Federal Home Loan Bank stock                                                   |   |          | 6,306,273   |   |         |   | 6,306,273 |   |
| Loans, net of allowance for loan losses                                        |   |          |        |   |         |   |   |   |
| of $5,231,952 and $3,895,246, respectively                                     |   |          | 413,944,253 |   |         |   | 430,678,727 |   |
| Loans held for sale                                                            |   |          | 925,120     |   |         |   | 240,000 |   |
| Property and equipment, net                                                    |   |          | 11,243,309  |   |         |   | 12,512,865 |   |
| Accrued interest receivable                                                    |   |          | 2,251,228   |   |         |   | 2,461,320 |   |
| Goodwill                                                                       |   |          | 11,385,323  |   |         |   | 20,685,323 |   |
| Core deposit intangible                                                        |   |          | 1,579,001   |   |         |   | 1,948,001 |   |
| Foreclosed assets                                                              |   |          | 696,554     |   |         |   | 632,796 |   |
| Mortgage servicing rights                                                      |   |          | 733,552     |   |         |   | 657,660 |   |
| Other assets                                                                   |   |          | 2,467,391   |   |         |   | 1,288,406 |   |
| Total assets                                                                   |   | $             | 602,883,957 |   |         | $      | 653,324,794 |   |
| Liabilities and Stockholders' Equity                                           |   |          |        |   |         |   |   |   |
| Liabilities:                                                                   |   |          |        |   |         |   |   |   |
| Deposits:                                                                      |   |          |        |   |         |   |   |   |
| Non-interest bearing deposits                                                  |   | $             | 28,236,454  |   |         | $      | 24,994,196 |   |
| Interest bearing deposits                                                      |   |          | 416,845,963 |   |         |   | 422,308,722 |   |
| Total deposits                                                                 |   |          | 445,082,417 |   |         |   | 447,302,918 |   |
| Federal Home Loan Bank advances                                                |   |          | 40,680,000  |   |         |   | 49,967,919 |   |
| Securities sold under agreements to repurchase                                 |   |          | 29,595,275  |   |         |   | 55,103,313 |   |
| Subordinated debentures                                                        |   |          | 3,919,192   |   |         |   | 3,886,144 |   |
| Accrued interest payable                                                       |   |          | 1,454,608   |   |         |   | 1,245,555 |   |
| Other liabilities                                                              |   |          | 2,567,458   |   |         |   | 2,162,236 |   |
| Total liabilities                                                              |   |          | 523,298,950 |   |         |   | 559,668,085 |   |
|                                                                           |   |          |        |   |         |   |   |   |
| Stockholders' Equity:                                                          |   |          |        |   |         |   |   |   |
|     Preferred stock, $.10 par value; 10,000,000 shares     |   |          |        |   |         |   |   |   |
| authorized; no shares issued                                                   |   |          | -           |   |         |   | - |   |
|     Common stock, $.10 par value; 20,000,000 shares authorized; |   |          |        |   |         |   |   |   |
| 10,142,123 shares issued; 8,076,001 and 8,793,753 shares outstanding           |   |          |        |   |         |   |   |   |
| at September 30, 2009 and December 31, 2008, respectively                      |   |          | 1,014,212   |   |         |   | 1,014,212 |   |
| Additional paid-in capital                                                     |   |          | 81,356,361  |   |         |   | 81,339,895 |   |
| Retained earnings                                                              |   |          | 14,217,323  |   |         |   | 23,230,811 |   |
| Accumulated other comprehensive income                                         |   |          | 1,765,620   |   |         |   | 1,195,673 |   |
| Unearned Employee Stock Ownership Plan shares                                  |   |          | (625,913    | )      |         |   | (658,856 | ) |
| Treasury Stock, at cost; 2,066,122 and 1,348,370 shares at                     |   |          |        |   |         |   |   |   |
| September 30, 2009 and December 31, 2008, respectively                         |   |          | (18,142,596 | )      |         |   | (12,465,026 | ) |
| Total stockholders' equity                                                     |   |          | 79,585,007  |   |         |   | 93,656,709 |   |
| Total liabilities and stockholders' equity                                     |   | $             | 602,883,957 |   |         | $      | 653,324,794 |   |
|                                                                           |   |          |        |   |         |   |   |   |
| See Accompanying Notes to Consolidated Financial Statements.                   |   |          |        |   |         |   |   |   |

----

Index

e

|                                                     |   |  Three Months Ended |      |   | Nine Months Ended |   |
|----------------------------------------------------------|--------|--------------------------|-----------|--------|-------------------|--------|
|                                                     |   |  September 30,      |      |   | September 30,     |   |
|                                                     |   | 2009                     |      |   | 2008              |   |   | 2009 |   |   | 2008 |   |
| Interest income:                                         |   |                     |      |   |              |   |   |   |   |   |   |   |
| Interest and fees on loans                               |   | $                        | 5,975,400 |   |              | $      | 5,018,585 |   |   | $ | 18,048,966 |   |   |   | 14,700,713 |   |
| Securities:                                              |   |                     |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Taxable interest income                                  |   |                     | 782,349   |   |              |   | 548,579 |   |   |   | 2,597,157 |   |   |   | 1,826,602 |   |
| Non-taxable interest income                              |   |                     | 159,802   |   |              |   | 48,728 |   |   |   | 435,184 |   |   |   | 145,707 |   |
| Interest-earning deposits, federal funds sold, and other |   |                     | 26,085    |   |              |   | 160,558 |   |   |   | 122,673 |   |   |   | 611,894 |   |
| Total interest income                                    |   |                     | 6,943,636 |   |              |   | 5,776,450 |   |   |   | 21,203,980 |   |   |   | 17,284,916 |   |
|                                                     |   |                     |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense:                                        |   |                     |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                 |   |                     | 2,561,187 |   |              |   | 2,556,489 |   |   |   | 7,862,894 |   |   |   | 7,927,332 |   |
| Federal Home Loan Bank advances                          |   |                     | 367,103   |   |              |   | 188,139 |   |   |   | 1,291,979 |   |   |   | 519,224 |   |
| Securities sold under agreements to repurchase           |   |                     | 16,826    |   |              |   | 104,151 |   |   |   | 54,525 |   |   |   | 310,863 |   |
| Subordinated debentures                                  |   |                     | 75,094    |   |              |   | 75,093 |   |   |   | 223,192 |   |   |   | 223,888 |   |
| Total interest expense                                   |   |                     | 3,020,210 |   |              |   | 2,923,872 |   |   |   | 9,432,590 |   |   |   | 8,981,307 |   |
|                                                     |   |                     |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                      |   |                     | 3,923,426 |   |              |   | 2,852,578 |   |   |   | 11,771,390 |   |   |   | 8,303,609 |   |
|                                                     |   |                     |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                                |   |                     | 1,000,000 |   |              |   | 145,000 |   |   |   | 1,668,990 |   |   |   | 501,866 |   |
|                                                     |   |                     |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income after provision for loan losses      |   |                     | 2,923,426 |   |              |   | 2,707,578 |   |   |   | 10,102,400 |   |   |   | 7,801,743 |   |
|                                                     |   |                     |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest income:                                     |   |                     |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Service fees on deposit accounts                         |   |                     | 89,158    |   |              |   | 64,319 |   |   |   | 224,704 |   |   |   | 170,742 |   |
| Other service charges and fees                           |   |                     | 73,952    |   |              |   | 55,456 |   |   |   | 197,211 |   |   |   | 130,050 |   |
| Loan servicing fees                                      |   |                     | 54,613    |   |              |   | 18,126 |   |   |   | 135,095 |   |   |   | 68,378 |   |
| Gain on sale of loans                                    |   |                     | 105,265   |   |              |   | 87,512 |   |   |   | 491,540 |   |   |   | 214,117 |   |
| Other                                                    |   |                     | 9,336     |   |              |   | 2,802 |   |   |   | 34,459 |   |   |   | 10,060 |   |
| Total non-interest income                                |   |                     | 332,324   |   |              |   | 228,215 |   |   |   | 1,083,009 |   |   |   | 593,347 |   |
|                                                     |   |                     |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest expense:                                    |   |                     |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Compensation and employee benefits                       |   |                     | 1,122,790 |   |              |   | 901,479 |   |   |   | 3,398,746 |   |   |   | 2,529,982 |   |
| Occupancy expense                                        |   |                     | 370,092   |   |              |   | 286,214 |   |   |   | 1,087,476 |   |   |   | 769,753 |   |
| Data processing services                                 |   |                     | 140,808   |   |              |   | 114,294 |   |   |   | 417,899 |   |   |   | 338,873 |   |
| Director fees                                            |   |                     | 51,750    |   |              |   | 56,000 |   |   |   | 160,700 |   |   |   | 188,850 |   |
| Professional fees                                        |   |                     | 204,212   |   |              |   | 111,053 |   |   |   | 597,400 |   |   |   | 354,328 |   |
| Federal Deposit Insurance Corporation insurance premiums |   |                     | 173,175   |   |              |   | 15,371 |   |   |   | 602,591 |   |   |   | 31,393 |   |
| Amortization of core deposit intangible                  |   |                     | 108,000   |   |              |   | 85,000 |   |   |   | 369,000 |   |   |   | 317,000 |   |
| Amortization of mortgage servicing rights                |   |                     | 11,068    |   |              |   | 14,052 |   |   |   | 175,767 |   |   |   | 68,929 |   |
| Goodwill impairment                                      |   |                     | -         |   |              |   | - |   |   |   | 9,300,000 |   |   |   | - |   |
| Impairment loss on assets                                |   |                     | 355,989   |   |              |   | - |   |   |   | 355,989 |   |   |   | - |   |
| Other                                                    |   |                     | 436,277   |   |              |   | 339,570 |   |   |   | 1,273,525 |   |   |   | 955,345 |   |
| Total non-interest expense                               |   |                     | 2,974,161 |   |              |   | 1,923,033 |   |   |   | 17,739,093 |   |   |   | 5,554,453 |   |
|                                                     |   |                     |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                        |   |                     | 281,589   |   |              |   | 1,012,760 |   |   |   | (6,553,684 | ) |   |   | 2,840,637 |   |
|                                                     |   |                     |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                             |   |                     | 70,100    |   |              |   | 367,300 |   |   |   | 974,496 |   |   |   | 1,026,825 |   |
| Net income (loss)                                        |   | $                        | 211,489   |   |              | $      | 645,460 |   |   | $ | (7,528,180 | ) |   | $ | 1,813,812 |   |
|                                                     |   |                     |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted income (loss) per share (see Note 6)   |   | $                        | 0.03      |   |              | $      | 0.08 |   |   | $ | (0.91 | ) |   | $ | 0.22 |   |
| Dividends per share                                      |   | $                        | 0.06      |   |              | $      | 0.06 |   |   | $ | 0.18 |   |   | $ | 0.18 |   |

| See Accompanying Notes to Consolidated Financial Statements. |   |   |   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|

----

Index

p

|                                                                                  |   | Three Months Ended |    |   | Nine Months Ended |   |
|---------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                                                                  |   | September 30,      |    |   | September 30,     |   |
|                                                                                  |   | 2009               |    |   | 2008              |   |   | 2009 |   |   | 2008 |   |
|                                                                                  |   |               |    |   |              |   |   |   |   |   |   |   |
| Net income (loss)                                                                     |   | $                  | 211,489 |   |              | $      | 645,460 |   |   | $ | (7,528,180 | ) |   | $ | 1,813,812 |   |
| Other comprehensive income (loss):                                                    |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on securities                                               |   |               |    |   |              |   |   |   |   |   |   |   |   |
|         arising during the period, net of tax |   |               | 342,806 |   |              |   | (297,963 | ) |   |   | 569,946 |   |   |   | (289,661 | ) |
| Comprehensive income (loss)                                                           |   | $                  | 554,295 |   |              | $      | 347,497 |   |   | $ | (6,958,234 | ) |   | $ | 1,524,151 |   |
|                                                                                  |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| See Accompanying Notes to Consolidated Financial Statements.                          |   |               |    |   |              |   |   |   |   |

----

Index

t

|                                                               |   | Nine Months Ended |        |
|--------------------------------------------------------------------|--------|-------------------|-------------|
|                                                               |   | September 30,     |        |
|                                                               |   | 2009              |        |   | 2008 |   |
| Cash flows from operating activities:                              |   |              |        |   |   |   |
| Net (loss) income                                                  |   | $                 | (7,528,180  | ) |   | $ | 1,813,812 |   |
| Adjustments to reconcile net (loss) income to net cash provided by |   |              |        |   |   |   |   |   |
| (used in) operating activities:                                    |   |              |        |   |   |   |   |   |
| Amortization of:                                                   |   |              |        |   |   |   |   |   |
| Deferred loan origination costs, net                               |   |              | 48,249      |   |   |   | 57,904 |   |
| Premiums and discounts on securities                               |   |              | (115,651    | ) |   |   | (146,824 | ) |
| Core deposit intangible                                            |   |              | 369,000     |   |   |   | 317,000 |   |
| Mortgage servicing rights                                          |   |              | 175,767     |   |   |   | 68,929 |   |
| Amortization of fair value adjustments on:                         |   |              |        |   |   |   |   |   |
| Loans                                                              |   |              | (50,300     | ) |   |   | (227,000 | ) |
| Time deposits                                                      |   |              | (125,500    | ) |   |   | 15,000 |   |
| Federal Home Loan Bank advances                                    |   |              | (32,999     | ) |   |   | 16,000 |   |
| Subordinated debentures                                            |   |              | 33,048      |   |   |   | 33,048 |   |
| Investment securities                                              |   |              | (41,700     | ) |   |   | (86,200 | ) |
| Property and equipment                                             |   |              | 12,054      |   |   |   | 12,054 |   |
| Goodwill impairment                                                |   |              | 9,300,000   |   |   |   | - |   |
| Impairment loss on assets                                          |   |              | 355,989     |   |   |   | - |   |
| Provision for loan losses                                          |   |              | 1,668,990   |   |   |   | 501,866 |   |
| Depreciation expense                                               |   |              | 538,206     |   |   |   | 373,413 |   |
| ESOP expense                                                       |   |              | 49,409      |   |   |   | 60,229 |   |
| Gain on sale of loans                                              |   |              | (491,540    | ) |   |   | (214,117 | ) |
| Loss on sale of foreclosed real estate                             |   |              | 47,638      |   |   |   | 15,000 |   |
| Proceeds from sales of loans held for sale                         |   |              | 24,232,976  |   |   |   | 13,747,635 |   |
| Originations of loans held for sale                                |   |              | (24,426,556 | ) |   |   | (14,142,918 | ) |
| Change in assets and liabilities:                                  |   |              |        |   |   |   |   |   |
| Decrease (increase) in accrued interest receivable                 |   |              | 210,092     |   |   |   | (75,581 | ) |
| Increase in mortgage servicing rights                              |   |              | (251,659    | ) |   |   | (142,208 | ) |
| Increase in other assets                                           |   |              | (353,985    | ) |   |   | (531,882 | ) |
| Increase (decrease) in accrued interest payable                    |   |              | 209,053     |   |   |   | (294,549 | ) |
| Increase in other liabilities                                      |   |              | 70,185      |   |   |   | 258,885 |   |
| Net cash flows from operating activities                           |   |              | 3,902,586   |   |   |   | 1,429,496 |   |
| Cash flows from investing activities:                              |   |              |        |   |   |   |   |   |
| Proceeds from maturity of interest-earning time deposits           |   |              | 25,847,832  |   |   |   | 17,619,286 |   |
| Purchase of interest-earning time deposits                         |   |              | (20,637,371 | ) |   |   | (12,852,194 | ) |
| Available for sale securities:                                     |   |              |        |   |   |   |   |   |
| Purchases                                                          |   |              | (92,450,000 | ) |   |   | (119,740,000 | ) |
| Proceeds from calls, maturities and paydowns                       |   |              | 100,597,630 |   |   |   | 95,993,584 |   |
| Net decrease (increase) in loans                                   |   |              | 13,953,232  |   |   |   | (41,644,152 | ) |
| Purchase of property and equipment                                 |   |              | (461,693    | ) |   |   | (3,385,359 | ) |
| Proceeds from the sale of foreclosed real estate                   |   |              | 1,002,907   |   |   |   | 285,000 |   |
| Net cash flows provided by (used in) investing activities          |   | $                 | 27,852,537  |   |   | $ | (63,723,835 | ) |
|                                                               |   |              |        |   |   |   |   |   |
| (Continued)                                                        |   |              |        |   |   |   |   |   |

----

Index

| (Continued)                                                                                                     |   |              |        |   |   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|--------|--------|
|                                                                                                            |   | Nine Months Ended |        |
|                                                                                                            |   | September 30,     |        |
|                                                                                                            |   | 2009              |        |   | 2008   |   |
|                                                                                                            |   |              |        |   |   |   |
| Cash flows from financing activities:                                                                           |   |              |        |   |   |   |
| Net (decrease) increase in deposits                                                                             |   | $                 | (2,095,001  | )      |   | $      | 40,930,937 |   |
| Net (decrease) increase in securities sold under agreements to repurchase                                       |   |              | (25,508,038 | )      |   |   | 25,528,020 |   |
| Proceeds from Federal Home Loan Bank advances                                                                   |   |              | 5,000,000   |   |   |   | 10,000,000 |   |
| Repayment of Federal Home Loan Bank advances                                                                    |   |              | (14,254,920 | )      |   |   | (3,000,000 | ) |
| Repurchase of Common Stock                                                                                      |   |              | (5,677,570  | )      |   |   | (4,192,830 | ) |
| Cash dividends                                                                                                  |   |              | (1,485,308  | )      |   |   | (1,447,321 | ) |
|          Net cash flows (used in) provided by financing activities |   |              | (44,020,837 | )      |   |   | 67,818,806 |   |
| Net (decrease) increase in cash and cash equivalents                                                            |   |              | (12,265,714 | )      |   |   | 5,524,467 |   |
| Cash and cash equivalents at beginning of period                                                                |   |              | 67,135,384  |   |   |   | 37,084,575 |   |
| Cash and cash equivalents at end of period                                                                      |   | $                 | 54,869,670  |   |   | $      | 42,609,042 |   |
|                                                                                                            |   |              |        |   |   |   |   |   |
|                                                                                                            |   |              |        |   |   |   |   |   |
|                                                                                                            |   |              |        |   |   |   |   |   |
|                                                                                                            |   |              |        |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                                              |   |              |        |   |   |   |   |   |
| Cash paid during the period for:                                                                                |   |              |        |   |   |   |   |   |
| Interest                                                                                                        |   | $                 | 9,348,988   |   |   | $      | 9,211,808 |   |
| Income tax payments, net                                                                                        |   |              | 1,233,593   |   |   |   | 940,071 |   |
|                                                                                                            |   |              |        |   |   |   |   |   |
| Non-cash transactions                                                                                           |   |              |        |   |   |   |   |   |
| Loans transferred to foreclosed assets                                                                          |   |              | 1,114,303   |   |   |   | - |   |
| Property and equipment transferred to other assets                                                              |   |              | 825,000     |   |   |   | - |   |
|                                                                                                            |   |              |        |   |   |   |   |   |
|                                                                                                            |   |              |        |   |   |   |   |   |
| See Accompanying Notes to Consolidated Financial Statements.                                                    |   |              |        |   |   |   |   |   |

----

Index

| (1) | Summary of Significant Accounting Policies: |
|-----|---------------------------------------------|

----

Index

| (2) | Intangible Assets: |
|-----|--------------------|

|                     |   | September 30, |       |   | December 31, |   |
|--------------------------|--------|---------------|------------|--------|--------------|--------|
|                     |   | 2009          |       |   | 2008         |   |
|                     |   |          |       |   |         |   |
| Core deposit intangible  |   | $             | 3,258,000  |   |         | $      | 3,258,000 |   |
| Accumulated amortization |   |          | (1,678,999 | )      |         |   | (1,309,999 | ) |
|   Total        |   | $             | 1,579,001  |   |         | $      | 1,948,001 |   |

|                                  |   | Core       |    |
|---------------------------------------|--------|------------|---------|
|                                  |   | Deposit    |    |
|                                  |   | Intangible |    |
|                                  |   |       |    |
| Three months ending December 31, 2009 |   | $          | 99,000  |   |
| Year ending December 31, 2010         |   |       | 359,000 |   |
| Year ending December 31, 2011         |   |       | 304,000 |   |
| Year ending December 31, 2012         |   |       | 281,000 |   |
| Year ending December 31, 2013         |   |       | 223,000 |   |
| Year ending December 31, 2014         |   |       | 116,001 |   |

----

Index

| (3) | Investment Securities: |
|-----|------------------------|

|                                           |   | September 30, 2009 |       |
|------------------------------------------------|--------|--------------------|------------|
|                                           |   |               |       |   | Gross |   |   | Gross |   |   |   |   |
|                                           |   | Amortized          |       |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                                           |   | Cost               |       |   | Gains |   |   | (Losses) |   |   | Value |   |
| Investment Securities:                         |   |               |       |   |   |   |   |   |   |   |   |   |
| U.S. government sponsored agency obligations   |   | $                  | 55,736,998 |   |   | $ | 855,342 |   |   | $ | (72,799 | ) |   | $ | 56,519,541 |   |
| Corporate bonds                                |   |               | 2,595,052  |   |   |   | 31,739 |   |   |   | (102,436 | ) |   |   | 2,524,355 |   |
| State and municipal securities                 |   |               | 14,621,026 |   |   |   | 895,184 |   |   |   | - |   |   |   | 15,516,210 |   |
| Other Securities                               |   |               | 75,251     |   |   |   | - |   |   |   | - |   |   |   | 75,251 |   |
| Mortgage-backed securities                     |   |               | 20,651,059 |   |   |   | 1,195,957 |   |   |   | (90 | ) |   |   | 21,846,926 |   |
|                                           |   |               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Investment Securities available for sale |   | $                  | 93,679,386 |   |   | $ | 2,978,222 |   |   | $ | (175,325 | ) |   | $ | 96,482,283 |   |

|                                           |   | December 31, 2008 |        |
|------------------------------------------------|--------|-------------------|-------------|
|                                           |   |              |        |   | Gross |   |   | Gross |   |   |   |   |
|                                           |   | Amortized         |        |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                                           |   | Cost              |        |   | Gains |   |   | (Losses) |   |   | Value |   |
| Investment Securities:                         |   |              |        |   |   |   |   |   |   |   |   |   |
| U.S. government sponsored agency obligations   |   | $                 | 58,413,597  |   |   | $ | 965,204 |   |   | $ | (32,656 | ) |   | $ | 59,346,145 |   |
| Corporate bonds                                |   |              | 3,093,991   |   |   |   | - |   |   |   | (264,725 | ) |   |   | 2,829,266 |   |
| State and municipal securities                 |   |              | 12,238,209  |   |   |   | 303,990 |   |   |   | (91,616 | ) |   |   | 12,450,583 |   |
| Other Securities                               |   |              | 75,251      |   |   |   | - |   |   |   | - |   |   |   | 75,251 |   |
| Mortgage-backed securities                     |   |              | 27,848,619  |   |   |   | 1,018,724 |   |   |   | (1,010 | ) |   |   | 28,866,333 |   |
|                                           |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Investment Securities available for sale |   | $                 | 101,669,667 |   |   | $ | 2,287,918 |   |   | $ | (390,007 | ) |   | $ | 103,567,578 |   |

----

Index

| (3) | Investment Securities (Continued): |
|-----|------------------------------------|

|                       |   | September 30, 2009  |       |
|----------------------------|--------|---------------------|------------|
|                       |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   | Less than 12 Months |       |   | 12 Months or More |   |   | Total |   |
|                       |   | Fair                |       |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                       |   | Value               |       |   | loss |   |   | Value |   |   | loss |   |   | Value |   |   | loss |   |
|                       |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. government sponsored  |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| agency obligations         |   | $                   | 15,734,920 |   |   |   | 72,799 |   |   | $ | - |   |   | $ | - |   |   | $ | 15,734,920 |   |   | $ | 72,799 |   |
| Corporate bonds            |   |                | -          |   |   |   | - |   |   |   | 744,564 |   |   |   | 102,436 |   |   |   | 744,564 |   |   |   | 102,436 |   |
| Mortgage-backed securities |   |                | 52,006     |   |   |   | 90 |   |   |   | - |   |   |   | - |   |   |   | 52,006 |   |   |   | 90 |   |
|                       |   | $                   | 15,786,926 |   |   | $ | 72,889 |   |   | $ | 744,564 |   |   | $ | 102,436 |   |   | $ | 16,531,490 |   |   | $ | 175,325 |   |

|                           |   | December 31, 2008   |      |
|--------------------------------|--------|---------------------|-----------|
|                           |   |                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   | Less than 12 Months |      |   | 12 Months or More |   |   | Total |   |
|                           |   | Fair                |      |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                           |   | Value               |      |   | loss |   |   | Value |   |   | loss |   |   | Value |   |   | loss |   |
|                           |   |                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. government sponsored      |   |                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| agency obligations             |   | $                   | 4,996,362 |   |   |   | 32,656 |   |   | $ | - |   |   | $ | - |   |   | $ | 4,996,362 |   |   | $ | 32,656 |   |
| Corporate bonds                |   |                | 2,152,307 |   |   |   | 94,684 |   |   |   | 676,959 |   |   |   | 170,041 |   |   |   | 2,829,266 |   |   |   | 264,725 |   |
| State and municipal securities |   |                | 1,657,919 |   |   |   | 91,616 |   |   |   | - |   |   |   | - |   |   |   | 1,657,919 |   |   |   | 91,616 |   |
| Mortgage-backed securities     |   |                | 297,325   |   |   |   | 1,010 |   |   |   | - |   |   |   | - |   |   |   | 297,325 |   |   |   | 1,010 |   |
|                           |   | $                   | 9,103,913 |   |   | $ | 219,966 |   |   | $ | 676,959 |   |   | $ | 170,041 |   |   | $ | 9,780,872 |   |   | $ | 390,007 |   |

----

Index

| (3) | Investment Securities (Continued): |
|-----|------------------------------------|

|                                   |   | Available for Sale |       |
|----------------------------------------|--------|--------------------|------------|
|                                   |   | Amortized          |       |   | Fair |   |
|                                   |   | Cost               |       |   | Value |   |
| Due in one year or less                |   | $                  | 4,412,654  |   |   | $ | 4,473,915 |   |
| Due after one year through five years  |   |               | 38,246,441 |   |   |   | 39,218,587 |   |
| Due after five years through ten years |   |               | 26,254,938 |   |   |   | 26,811,224 |   |
| Due after ten years                    |   |               | 4,039,043  |   |   |   | 4,056,380 |   |
| Mortgage-backed securities             |   |               | 20,651,059 |   |   |   | 21,846,926 |   |
| Other Securities                       |   |               | 75,251     |   |   |   | 75,251 |   |
|                                   |   |               |       |   |   |   |   |   |
|                                   |   | $                  | 93,679,386 |   |   | $ | 96,482,283 |   |

----

Index

| (4) | Loans: |
|-----|--------|

|                                                                                                                 |   | At September 30, |        |   | At December 31, |   |
|----------------------------------------------------------------------------------------------------------------------|--------|------------------|-------------|--------|-----------------|--------|
|                                                                                                                 |   | 2009             |        |   | 2008            |   |
|                                                                                                                 |   | Amount           |        |   | Percent         |   |   | Amount |   |   | Percent |   |
|                                                                                                                 |   |             |        |   |            |   |   |   |   |   |   |   |
| Real Estate Loans                                                                                                    |   |             |        |   |            |   |   |   |   |   |   |   |
| One- to four-family residential loans(1)                                                                             |   | $                | 100,113,763 |   |            |   | 23.7 | % |   | $ | 110,925,168 |   |   |   | 25.3 | % |
| Multi-family                                                                                                         |   |             | 20,746,817  |   |            |   | 4.9 |   |   |   | 18,150,435 |   |   |   | 4.2 |   |
| Commercial                                                                                                           |   |             | 177,151,044 |   |            |   | 41.9 |   |   |   | 168,432,417 |   |   |   | 38.4 |   |
| Construction and land                                                                                                |   |             | 54,910,237  |   |            |   | 13.0 |   |   |   | 52,337,453 |   |   |   | 11.9 |   |
| Total real estate loans                                                                                              |   |             | 352,921,862 |   |            |   | 83.5 |   |   |   | 349,845,473 |   |   |   | 79.8 |   |
|                                                                                                                 |   |             |        |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Commercial business                                                                                                  |   |             | 55,367,752  |   |            |   | 13.1 |   |   |   | 78,159,496 |   |   |   | 17.8 |   |
|                                                                                                                 |   |             |        |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Consumer Loans                                                                                                       |   |             | 14,338,925  |   |            |   | 3.4 |   |   |   | 10,269,781 |   |   |   | 2.4 |   |
|                                                                                                                 |   |             |        |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Total loans and loans held for sale                                                                                  |   |             | 422,628,538 |   |            |   | 100.0 | % |   |   | 438,274,750 |   |   |   | 100.0 | % |
| Less:                                                                                                                |   |             |        |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Undisbursed portion of construction loans                                                                            |   |             | 2,513,177   |   |            |   |   |   |   |   | 3,401,803 |   |   |   |   |   |
| Deferred loan origination fees, net                                                                                  |   |             | 14,036      |   |            |   |   |   |   |   | 58,974 |   |   |   |   |   |
| Allowance for loan losses                                                                                            |   |             | 5,231,952   |   |            |   |   |   |   |   | 3,895,246 |   |   |   |   |   |
|                                                                                                                 |   |             |        |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Total loans and loans held for sale, net                                                                             |   | $                | 414,869,373 |   |            |   |   |   |   | $ | 430,918,727 |   |   |   |   |   |
|                                                                                                                 |   |             |        |   |            |   |   |   |   |   |   |   |   |   |   |   |
| (1) Includes loans held for sale of $925,120 and $240,000 at September 30, 2009 and December 31, 2008, respectively. |   |

----

Index

| (5) | Asset Quality: |
|-----|----------------|

|                                                                         |   | September 30, |       |   | December 31, |   |
|------------------------------------------------------------------------------|--------|---------------|------------|--------|--------------|--------|
|                                                                         |   | 2009          |       |   | 2008         |   |
|                                                                         |   |          |       |   |         |   |
| Loans 90 days or more past due and still accruing                            |   | $             | 849,770    |   |         | $      | 763,659 |   |
| Nonaccrual loans, including $9,947,599 and $3,500,954 classified as impaired |   |          |       |   |         |
| as of September 30, 2009 and December 31, 2008, respectively                 |   |          | 11,253,121 |   |         |   | 5,617,507 |   |
| Other impaired loans                                                         |   |          | 17,861,243 |   |         |   | 1,152,151 |   |
|   Total nonperforming and impaired loans                           |   | $             | 29,964,134 |   |         | $      | 7,533,317 |   |
|                                                                         |   |          |       |   |         |   |   |   |
| Allowance for loan losses on nonperforming and impaired loans                |   | $             | 2,876,107  |   |         | $      | 670,547 |   |
|                                                                         |   |          |       |   |         |   |   |   |
| Asset Quality Ratios:                                                   |   |          |       |   |         |   |   |   |
|                                                                         |   |          |       |   |         |   |   |   |
|                                                                         |   |          |       |   |         |   |   |   |
| Non-performing assets and impaired loans to total assets                     |   |          | 4.97       | %      |         |   | 1.15 | % |
| Non-performing and impaired loans to total loans                             |   |          | 7.24       |   |         |   | 1.75 |   |
| Allowance for loan losses to non-performing and impaired loans               |   |          | 17.46      |   |         |   | 51.71 |   |
| Allowance for loan losses to total loans                                     |   |          | 1.26       |   |         |   | 0.90 |   |

|                                           |   | Nine Months Ended |      |
|------------------------------------------------|--------|-------------------|-----------|
|                                           |   | September 30,     |      |
|                                           |   | 2009              |      |   | 2008 |   |
| Balance at beginning of period                 |   | $                 | 3,895,246 |   |   | $ | 1,897,945 |   |
|    Charge-offs                  |   |              | (332,284  | ) |   |   | (96,177 | ) |
|    Recoveries                   |   |              | -         |   |   |   | 15,517 |   |
|    Provision charged to expense |   |              | 1,668,990 |   |   |   | 501,866 |   |
| Balance at end of period                       |   | $                 | 5,231,952 |   |   | $ | 2,319,151 |   |

----

Index

| (6) | Earnings (losses) per Share: |
|-----|------------------------------|

|                                                                                                  |   | Three Months Ended |      |   | Nine Months Ended |   |
|-------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                                                                  |   | September 30,      |      |   | September 30,     |   |
|                                                                                                  |   | 2009               |      |   | 2008              |   |   | 2009 |   |   | 2008 |   |
|                                                                                                  |   |               |      |   |              |   |   |   |   |   |   |   |
| Net earnings (losses) available to common stockholders                                                |   | $                  | 211,489   |   |              | $      | 645,460 |   |   | $ | (7,528,180 | ) |   | $ | 1,813,812 |   |
|                                                                                                  |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic potential common shares:                                                                        |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding                                                                   |   |               | 8,111,107 |   |              |   | 8,176,731 |   |   |   | 8,363,902 |   |   |   | 8,229,111 |   |
| Weighted average unallocated Employee Stock                                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |
|       Ownership Plan shares                                             |   |               | (123,280  | )      |              |   | (131,784 | ) |   |   | (125,390 | ) |   |   | (133,902 | ) |
|           Basic weighted average shares outstanding |   |               | 7,987,827 |   |              |   | 8,044,947 |   |   |   | 8,238,512 |   |   |   | 8,095,209 |   |
|                                                                                                  |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive potential common shares                                                                      |   |               | -         |   |              |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                  |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive weighted average shares outstanding                                                          |   |               | 7,987,827 |   |              |   | 8,044,947 |   |   |   | 8,238,512 |   |   |   | 8,095,209 |   |
|                                                                                                  |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted earnings (losses) per share                                                         |   | $                  | 0.03      |   |              | $      | 0.08 |   |   | $ | (0.91 | ) |   | $ | 0.22 |   |

| (7) | Employee Stock Ownership Plan: |
|-----|--------------------------------|

----

Index

| (7) | Employee Stock Ownership Plan (Continued): |
|-----|--------------------------------------------|

|                                                      |   | September 30, |    |   | December 31, |   |
|-----------------------------------------------------------|--------|---------------|---------|--------|--------------|--------|
|                                                      |   | 2009          |    |   | 2008         |   |
| Unallocated shares (fair value at September 30, 2009 and  |   |          |    |   |
| December 31, 2008 of $848,239 and $875,027, respectively) |   |          | 121,177 |   |         | $      | 127,555 |   |
| Allocated Shares                                          |   |          | 49,582  |   |         |   | 43,204 |   |
| Total ESOP Shares                                         |   |          | 170,759 |   |         | $      | 170,759 |   |

| (8) | Recent Accounting Pronouncements: |
|-----|-----------------------------------|

----

Index

| (9) | Fair Value of Financial Instruments: |
|-----|--------------------------------------|

----

Index

| (9) | Fair Value of Financial Instruments (Continued): |
|-----|--------------------------------------------------|

----

Index

| (9) | Fair Value of Financial Instruments (Continued): |
|-----|--------------------------------------------------|

|                            |   | September 30, 2009 |        |   | December 31, 2008 |   |
|---------------------------------|--------|--------------------|-------------|--------|-------------------|--------|
|                            |   | Carrying           |        |   | Fair              |   |   | Carrying |   |   | Fair |   |
|                            |   | Amount             |        |   | Value             |   |   | Amount |   |   | Value |   |
| Financial assets:               |   |               |        |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents       |   | $                  | 54,869,670  |   |              | $      | 54,869,670 |   |   | $ | 67,135,384 |   |   | $ | 67,135,384 |   |
| Interest-earning time deposits  |   |               | -           |   |              |   | - |   |   |   | 5,210,461 |   |   |   | 5,210,461 |   |
| Securities available for sale   |   |               | 96,482,283  |   |              |   | 96,482,283 |   |   |   | 103,567,578 |   |   |   | 103,567,578 |   |
| Federal Home Loan Bank stock    |   |               | 6,306,273   |   |              |   | 6,306,273 |   |   |   | 6,306,273 |   |   |   | 6,306,273 |   |
| Loans, net                      |   |               | 414,869,373 |   |              |   | 408,433,325 |   |   |   | 430,918,727 |   |   |   | 437,952,913 |   |
| Accrued interest receivable     |   |               | 2,251,228   |   |              |   | 2,251,228 |   |   |   | 2,461,320 |   |   |   | 2,461,320 |   |
|                            |   |               |        |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:          |   |               |        |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest bearing deposits   |   |               | 28,236,454  |   |              |   | 28,236,454 |   |   |   | 24,994,196 |   |   |   | 24,994,196 |   |
| Interest bearing deposits       |   |               | 416,845,963 |   |              |   | 420,669,963 |   |   |   | 422,308,722 |   |   |   | 424,696,738 |   |
| Federal Home Loan Bank advances |   |               | 40,680,000  |   |              |   | 41,732,000 |   |   |   | 49,967,919 |   |   |   | 50,673,734 |   |
| Securities sold under agreement |   |               |        |   |              |   |   |   |   |   |   |   |   |   |   |   |
| to repurchase                   |   |               | 29,595,275  |   |              |   | 29,595,275 |   |   |   | 55,103,313 |   |   |   | 55,103,313 |   |
| Subordinated debentures         |   |               | 3,919,192   |   |              |   | 3,898,192 |   |   |   | 3,886,144 |   |   |   | 3,957,709 |   |
| Accrued interest payable        |   |               | 1,454,608   |   |              |   | 1,454,608 |   |   |   | 1,245,555 |   |   |   | 1,245,555 |   |

| (10) | Fair Value Disclosures: |
|------|-------------------------|

----

Index

| (10) | Fair Value Disclosures (Continued): |
|------|-------------------------------------|

|                                          |   | Quoted Prices inActive Markets forIdentical Assets |   |   | Significant OtherObservable Inputs |   |       | Significant Unobservable Inputs |   |   |   |
|-----------------------------------------------|--------|----------------------------------------------------|--------|--------|------------------------------------|--------|------------|--------------------------------------|--------|--------|--------|
| Assets:                                       |   | (Level 1)                                          |   |   | (Level 2)                          |   |       | (Level 3)                            |   |   | Total  |   |
|                                          |   |                                               |   |   |                               |   |       |                                 |   |   |   |   |
| Investment Securities:                        |   |                                               |   |   |                               |   |       |                                 |   |   |   |   |
| U.S. government sponsored agency obligations  |   | $                                                  | -      |   |                               | $      | 56,519,541 |                                 |   | $      | -      |   |   | $ | 56,519,541 |   |
| Corporate bonds                               |   |                                               | -      |   |                               |   | 2,524,355  |                                 |   |   | -      |   |   |   | 2,524,355 |   |
| State and municipal securities                |   |                                               | -      |   |                               |   | 15,516,210 |                                 |   |   | -      |   |   |   | 15,516,210 |   |
| Other securities                              |   |                                               | -      |   |                               |   | 75,251     |                                 |   |   | -      |   |   |   | 75,251 |   |
| Mortgage-backed securities                    |   |                                               | -      |   |                               |   | 21,846,926 |                                 |   |   | -      |   |   |   | 21,846,926 |   |
| Total Investment Securites available for sale |   | $                                                  | -      |   |                               | $      | 96,482,283 |                                 |   | $      | -      |   |   | $ | 96,482,283 |   |

|              |   | Quoted Prices in Active Markets for Identical Assets |   |   | Significant Other Observable Inputs |   |       | Significant Unobservable Inputs |   |   |    |   |
|-------------------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------|--------|------------|-------------------------------------------|--------|--------|---------|--------|
|              |   | (Level 1)                                                 |   |   | (Level 2)                           |   |       | (Level 3)                                 |   |   | Total   |   |
|              |   |                                                      |   |   |                                |   |       |                                      |   |   |    |   |
| Impaired loans    |   | $                                                         | -      |   |                                | $      | 27,639,187 |                                      |   | $      | 169,655 |   |   | $ | 27,808,842 |   |
| Foreclosed assets |   | $                                                         | -      |   |                                | $      | 696,554    |                                      |   | $      | -       |   |   | $ | 696,554 |   |
| Goodwill          |   | $                                                         | -      |   |                                | $      | 11,385,323 |                                      |   | $      | -       |   |   | $ | 11,385,323 |   |

----

Index

| (10) | Fair Value Disclosures (Continued): |
|------|-------------------------------------|

| (11) | Goodwill Impairment: |
|------|----------------------|

----

Index

| (11) | Goodwill Impairment (Continued): |
|------|----------------------------------|

| (12) | Subsequent Events: |
|------|--------------------|

----

Index

e

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

|                                                             |   | Three Months Ended September 30, |    |   | Three Months Ended September 30, |   |
|------------------------------------------------------------------|--------|----------------------------------|---------|--------|----------------------------------|--------|
|                                                             |   | 2009                             |    |   | 2008                             |   |
|                                                             |   | Average Outstanding Balance      |    |   | Interest (4)                     |   |   | Yield/ Rate |   |   | Average Outstanding Balance |   |   | Interest (4) |   |   | Yield/ Rate |   |
|                                                             |   | (Dollars in thousands)           |    |
| Interest-earning assets:                                         |   |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, gross                                                     |   | $                                | 421,621 |   |                             | $      | 5,975 |   |   |   | 5.62 | % |   | $ | 327,564 |   |   | $ | 5,019 |   |   |   | 6.10 | % |
| Securities                                                       |   |                             | 99,183  |   |                             |   | 942 |   |   |   | 3.77 |   |   |   | 53,182 |   |   |   | 597 |   |   |   | 4.47 |   |
| Federal Home Loan Bank stock                                     |   |                             | 6,306   |   |                             |   | - |   |   |   | - |   |   |   | 5,604 |   |   |   | - |   |   |   | - |   |
| Interest-earning balances from depository institutions           |   |                             | 46,290  |   |                             |   | 27 |   |   |   | 0.23 |   |   |   | 26,920 |   |   |   | 161 |   |   |   | 2.38 |   |
| Total interest-earning assets                                    |   |                             | 573,400 |   |                             |   | 6,944 |   |   |   | 4.80 |   |   |   | 413,270 |   |   |   | 5,777 |   |   |   | 5.56 |   |
| Non-interest-earning assets                                      |   |                             | 39,267  |   |                             |   |   |   |   |   |   |   |   |   | 30,725 |   |   |   |   |   |   |   |   |   |
| Total assets                                                     |   | $                                | 612,667 |   |                             |   |   |   |   |   |   |   |   | $ | 443,995 |   |   |   |   |   |   |   |   |   |
|                                                             |   |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                    |   |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing transaction                                     |   | $                                | 167,404 |   |                             |   | 719 |   |   |   | 1.70 |   |   | $ | 111,237 |   |   |   | 728 |   |   |   | 2.60 |   |
| Savings deposits                                                 |   |                             | 18,815  |   |                             |   | 51 |   |   |   | 1.08 |   |   |   | 18,029 |   |   |   | 102 |   |   |   | 2.25 |   |
| Time deposits                                                    |   |                             | 218,540 |   |                             |   | 1,792 |   |   |   | 3.25 |   |   |   | 157,131 |   |   |   | 1,727 |   |   |   | 4.37 |   |
| Securities sold under agreements to repurchase                   |   |                             | 48,663  |   |                             |   | 17 |   |   |   | 0.14 |   |   |   | 31,142 |   |   |   | 104 |   |   |   | 1.33 |   |
| Federal Home Loan Bank advances                                  |   |                             | 41,305  |   |                             |   | 367 |   |   |   | 3.53 |   |   |   | 17,447 |   |   |   | 188 |   |   |   | 4.29 |   |
| Subordinated debentures                                          |   |                             | 3,911   |   |                             |   | 75 |   |   |   | 7.61 |   |   |   | 3,869 |   |   |   | 75 |   |   |   | 7.71 |   |
| Total interest-bearing liabilities                               |   |                             | 498,638 |   |                             |   | 3,021 |   |   |   | 2.40 |   |   |   | 338,855 |   |   |   | 2,924 |   |   |   | 3.43 |   |
| Non-interest-bearing liabilities                                 |   |                             | 33,678  |   |                             |   |   |   |   |   |   |   |   |   | 20,002 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                |   |                             | 532,316 |   |                             |   |   |   |   |   |   |   |   |   | 358,857 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                       |   |                             | 80,351  |   |                             |   |   |   |   |   |   |   |   |   | 85,138 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                 |   | $                                | 612,667 |   |                             |   |   |   |   |   |   |   |   | $ | 443,995 |   |   |   |   |   |   |   |   |   |
|                                                             |   |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                              |   |                             |    |   |                             | $      | 3,923 |   |   |   |   |   |   |   |   |   |   | $ | 2,853 |   |   |   |   |   |
| Net interest rate spread (1)                                     |   |                             |    |   |                             |   |   |   |   |   | 2.40 | % |   |   |   |   |   |   |   |   |   |   | 2.13 | % |
| Net interest-earning assets (2)                                  |   | $                                | 74,762  |   |                             |   |   |   |   |   |   |   |   | $ | 74,415 |   |   |   |   |   |   |   |   |   |
| Net interest margin (3)                                          |   |                             |    |   |                             |   |   |   |   |   | 2.71 | % |   |   |   |   |   |   |   |   |   |   | 2.75 | % |
| Ratio of interest-earning assets to interest-bearing liabilities |   |                             |    | 114.99 | %                                |   |   |   |   |   |   |   |   |   |   | 121.96 | % |

| (1) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.                                                 |
| (3) Net interest margin represents net interest income divided by average total interest-earning assets.                                                          |
| (4) Interest on loans includes loan fees collected in the amount of $38,191 and $28,066 for the three months ended September 30, 2009 and 2008, respectively.     |

----

Index

|                                                             |   | Nine Months Ended September 30, |    |   | Nine Months Ended September 30, |   |
|------------------------------------------------------------------|--------|---------------------------------|---------|--------|---------------------------------|--------|
|                                                             |   | 2009                            |    |   | 2008                            |   |
|                                                             |   | Average Outstanding Balance     |    |   | Interest (4)                    |   |   | Yield/ Rate |   |   | Average Outstanding Balance |   |   | Interest (4) |   |   | Yield/ Rate |   |
|                                                             |   | (Dollars in thousands)          |    |
| Interest-earning assets:                                         |   |                            |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, gross                                                     |   | $                               | 424,224 |   |                            | $      | 18,049 |   |   |   | 5.69 | % |   | $ | 313,564 |   |   | $ | 14,701 |   |   |   | 6.26 | % |
| Securities                                                       |   |                            | 98,853  |   |                            |   | 3,032 |   |   |   | 4.10 |   |   |   | 53,542 |   |   |   | 1,972 |   |   |   | 4.92 |   |
| Federal Home Loan Bank stock                                     |   |                            | 6,306   |   |                            |   | - |   |   |   | - |   |   |   | 5,604 |   |   |   | - |   |   |   | - |   |
| Interest-earning balances from depository institutions           |   |                            | 63,928  |   |                            |   | 123 |   |   |   | 0.26 |   |   |   | 26,501 |   |   |   | 612 |   |   |   | 3.08 |   |
| Total interest-earning assets                                    |   |                            | 593,311 |   |                            |   | 21,204 |   |   |   | 4.78 |   |   |   | 399,211 |   |   |   | 17,285 |   |   |   | 5.78 |   |
| Non-interest-earning assets                                      |   |                            | 48,268  |   |                            |   |   |   |   |   |   |   |   |   | 28,529 |   |   |   |   |   |   |   |   |   |
| Total assets                                                     |   | $                               | 641,579 |   |                            |   |   |   |   |   |   |   |   | $ | 427,740 |   |   |   |   |   |   |   |   |   |
|                                                             |   |                            |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                    |   |                            |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing transaction                                     |   | $                               | 187,653 |   |                            |   | 2,173 |   |   |   | 1.55 |   |   | $ | 93,221 |   |   |   | 1,931 |   |   |   | 2.77 |   |
| Savings deposits                                                 |   |                            | 18,678  |   |                            |   | 174 |   |   |   | 1.25 |   |   |   | 18,347 |   |   |   | 317 |   |   |   | 2.31 |   |
| Time deposits                                                    |   |                            | 216,267 |   |                            |   | 5,516 |   |   |   | 3.41 |   |   |   | 163,204 |   |   |   | 5,679 |   |   |   | 4.65 |   |
| Securities sold under agreements to repurchase                   |   |                            | 48,946  |   |                            |   | 55 |   |   |   | 0.15 |   |   |   | 27,700 |   |   |   | 311 |   |   |   | 1.50 |   |
| Federal Home Loan Bank advances                                  |   |                            | 46,464  |   |                            |   | 1,292 |   |   |   | 3.72 |   |   |   | 16,567 |   |   |   | 519 |   |   |   | 4.18 |   |
| Subordinated debentures                                          |   |                            | 3,901   |   |                            |   | 223 |   |   |   | 7.64 |   |   |   | 3,857 |   |   |   | 224 |   |   |   | 7.76 |   |
| Total interest-bearing liabilities                               |   |                            | 521,909 |   |                            |   | 9,433 |   |   |   | 2.42 |   |   |   | 322,896 |   |   |   | 8,981 |   |   |   | 3.72 |   |
| Non-interest-bearing liabilities                                 |   |                            | 31,376  |   |                            |   |   |   |   |   |   |   |   |   | 19,275 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                |   |                            | 553,285 |   |                            |   |   |   |   |   |   |   |   |   | 342,171 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                       |   |                            | 88,294  |   |                            |   |   |   |   |   |   |   |   |   | 85,569 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                 |   | $                               | 641,579 |   |                            |   |   |   |   |   |   |   |   | $ | 427,740 |   |   |   |   |   |   |   |   |   |
|                                                             |   |                            |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                              |   |                            |    |   |                            | $      | 11,771 |   |   |   |   |   |   |   |   |   |   | $ | 8,304 |   |   |   |   |   |
| Net interest rate spread (1)                                     |   |                            |    |   |                            |   |   |   |   |   | 2.36 | % |   |   |   |   |   |   |   |   |   |   | 2.06 | % |
| Net interest-earning assets (2)                                  |   | $                               | 71,402  |   |                            |   |   |   |   |   |   |   |   | $ | 76,315 |   |   |   |   |   |   |   |   |   |
| Net interest margin (3)                                          |   |                            |    |   |                            |   |   |   |   |   | 2.65 | % |   |   |   |   |   |   |   |   |   |   | 2.78 | % |
| Ratio of interest-earning assets to interest-bearing liabilities |   |                            |    | 113.68 | %                               |   |   |   |   |   |   |   |   |   |   | 123.63 | % |

| (1) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.                                                 |
| (3) Net interest margin represents net interest income divided by average total interest-earning assets.                                                          |
| (4) Interest on loans includes loan fees collected in the amount of $157,552 and $143,561 for the nine months ended September 30, 2009 and 2008, respectively.    |

----

Index

----

Index

----

Index

----

Index

----

Index

|                                      |   |                   |    |   |     |   |   | Minimum Required |   |
|-------------------------------------------|--------|------------------------|---------|--------|----------|--------|--------|------------------|--------|
|                                      |   |                   |    |   |     |   |   | for Capital      |   |   | to be "Well |   |
|                                      |   | Actual                 |    |   | Adequacy |   |   | Capitalized"     |   |
|                                      |   | Amount                 |    |   | Ratio    |   |   | Amount           |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                      |   | (Dollars in Thousands) |    |
| Stockholders' equity                      |   | $                      | 70,796  |   |     |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill and core deposit intangible      |   |                   | (12,964 | )      |     |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Disallowed servicing assets               |   |                   | (734    | )      |     |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gain on securities AFS, net    |   |                   | (1,761  | )      |     |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Tangible capital to adjusted total assets |   | $                      | 55,337  |   |     |   | 9.5    | %                |   | $ | 8,779 |   |   |   | 1.5 | % |   |   | N/A |   |   |   | - |   |
| General valuation allowance               |   |                   | 5,232   |   |     |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deduction for low-level recourse          |   |                   | (1,607  | )      |     |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total capital to risk-weighted assets     |   | $                      | 58,962  |   |     |   | 14.1   | %                |   | $ | 33,506 |   |   |   | 8.0 | % |   | $ | 41,883 |   |   |   | 10.0 | % |
|                                      |   |                   |    |   |     |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital to risk-weighted assets    |   | $                      | 55,337  |   |     |   | 13.2   | %                |   | $ | N/A |   |   |   | - |   |   | $ | 25,130 |   |   |   | 6.0 | % |
|                                      |   |                   |    |   |     |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital to total assets            |   | $                      | 55,337  |   |     |   | 9.5    | %                |   | $ | 23,411 |   |   |   | 4.0 | % |   | $ | 29,264 |   |   |   | 5.0 | % |

----

Index

|                         |   |        |       |   |        |   |      |        |   |   | Range of    |
|------------------------------|--------|-------------|------------|--------|-------------|--------|-----------|-------------|--------|--------|-------------|
|                         |   | Variable    |       |   | Fixed       |   |      |        |   |   | Rates on    |
|                         |   | Rate        |       |   | Rate        |   |      | Total       |   |   | Fixed Rate  |
|                         |   | Commitments |       |   | Commitments |   |      | Commitments |   |   | Commitments |
|                         |   |        |       |   |        |   |      |        |   |   |        |
| Commitments to extend credit |   | $           | 34,855,839 |   |        | $      | 9,336,401 |        |   | $      | 44,192,240  |   |   |  2.75%-18.00% |
| Standby letters of credit    |   | $           | 71,704     |   |        | $      | 4,460,705 |        |   | $      | 4,532,409   |   |   |  3.25%-9.25% |

----

Index

n

----

Index

| June 30, 2009           |
|-------------------------|
|                    |   |   | NPV |   | Net Portfolio Value as a Percentage ofPresent Value of Assets |
|                    |   |   |   |  Estimated Increase(Decrease) in NPV |   |   |   |   |   |   |
| Change in InterestRates |   | EstimatedNPV |   |   | Amount |   |   | Percent |   | NPV Ratio |   | Change |
|                    |   | (Dollars in thousands) |   |   |   |   |   |   |   |   |   |   |
|                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    | +300 | bp |   | $ | 67,039 |   |   | $ | (11,094 | ) |   |   | (14 | ) % |   |   | 11.23 | % |   |   | -143 | bp |
|                    | +200 | bp |   |   | 71,234 |   |   |   | (6,899 | ) |   |   | (9 | ) |   |   | 11.79 |   |   |   | -86 | bp |
|                    | +100 | bp |   |   | 75,068 |   |   |   | (3,065 | ) |   |   | (4 | ) |   |   | 12.28 |   |   |   | -37 | bp |
|                    | +50 | bp |   |   | 76,484 |   |   |   | (1,649 | ) |   |   | (2 | ) |   |   | 12.45 |   |   |   | -20 | bp |
|                    | 0 | bp |   |   | 78,133 |   |   |   | — |   |   |   | — |   |   |   | 12.65 |   |   |   | 0 | bp |
|                    | -50 | bp |   |   | 78,065 |   |   |   | (68 | ) |   |   | — |   |   |   | 12.61 |   |   |   | -4 | bp |
|                    | -100 | bp |   |   | 77,864 |   |   |   | (269 | ) |   |   | — |   |   |   | 12.55 |   |   |   | -10 | bp |

| December 31, 2008       |
|-------------------------|
|                    |   |   | NPV |   | Net Portfolio Value as a Percentage ofPresent Value of Assets |
|                    |   |   |   | Estimated Increase(Decrease) in NPV |   |   |   |   |   |   |
| Change in InterestRates |   | EstimatedNPV |   |   | Amount |   |   | Percent |   | NPV Ratio |   | Change |
|                    |   | (Dollars in thousands) |   |   |   |   |   |   |   |   |   |   |
|                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    | +300 | bp |   | $ | 57,120 |   |   | $ | (9,578 | ) |   |   | (14 | ) % |   |   | 9.05 | % |   |   | -121 | bp |
|                    | +200 | bp |   |   | 61,568 |   |   |   | (5,130 | ) |   |   | (8 | ) |   |   | 9.64 |   |   |   | -62 | bp |
|                    | +100 | bp |   |   | 65,158 |   |   |   | (1,541 | ) |   |   | (2 | ) |   |   | 10.10 |   |   |   | -16 | bp |
|                    | +50 | bp |   |   | 65,955 |   |   |   | (743 | ) |   |   | (1 | ) |   |   | 10.18 |   |   |   | -8 | bp |
|                    | 0 | bp |   |   | 66,698 |   |   |   | — |   |   |   | — |   |   |   | 10.26 |   |   |   | 0 | bp |
|                    | -50 | bp |   |   | 66,721 |   |   |   | 23 |   |   |   | — |   |   |   | 10.24 |   |   |   | -2 | bp |
|                    | -100 | bp |   |   | 65,417 |   |   |   | (1,281 | ) |   |   | (2 | ) |   |   | 10.04 |   |   |   | -22 | bp |

----

Index

----

Index

n

----

Index

A

.

s

----

Index

S

| (a) | No equity securities were sold during the quarter that were not registered under the Securities Exchange Act. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (b) | Not applicable. |
|-----|-----------------|

| (c) | The following table presents for the periods indicated a summary of the purchases made by or on behalf of the Company of shares of its common stock. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| Period                 |   | Total Number of Shares Purchased |   |   | Average Price Paid per Share |   |   | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs(1) |   |
|------------------------|--------|---------------------------------------|--------|--------|------------------------------|--------|--------|----------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------|--------|
|                   |   |                                  |   |   |                         |   |   |                                                                             |   |   |                                                                                   |   |
| July 1 - 31, 2009      |   |                                  | 23,475 |   |                         | $      | 8.03   |                                                                             |   |   | 23,475                                                                                 |   |   |   | 188,799 |   |
| August 1 - 31, 2009    |   |                                  | 50,500 |   |                         | $      | 7.80   |                                                                             |   |   | 50,500                                                                                 |   |   |   | 138,299 |   |
| September 1 - 30, 2009 |   |                                  | -      |   |                         | $      | -      |                                                                             |   |   | -                                                                                      |   |   |   | 138,299 |   |
| Total                  |   |                                  | 73,975 |   |                         |   |   |                                                                             |   |   | 73,975                                                                                 |   |   |   |   |   |

|   | (1) | The Company’s board of directors approved a stock repurchase program on November 12, 2008 for the repurchase of up to 924,480 shares of common stock, and on December 11, 2008, they increased the number of shares that may be repurchased pursuant to that plan by an additional 382,641 shares.  The plan has no expiration date. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

u

o

f

E

|   | 31.1: | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|-------|-----------------------------------------------------------------------------------------------------|

|   | 31.2: | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|-------|-----------------------------------------------------------------------------------------------------|

|   | 32: | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|-----|--------------------------------------------------------------------------|

----

Index

N

| DATE:   November 12, 2009 | BY:    | /s/ Dennis M. Terry                                                    |
|------------------------------------------|--------|------------------------------------------------------------------------|
|                                     |   | Dennis M. Terry, President and Chief Executive Officer                 |
|                                     |   |                                                                   |
|                                     | BY:    | /s/ Darlene F. McDonald                                                |
|                                     |   | Darlene F. McDonald, Senior Vice-President and Chief Financial Officer |