----

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SECURITIE

| x                                   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|-------------------------------------|----------------------------------------------------------------------------------------------------|
|                                |                                                                                               |
| For the period ended March 31, 2011 |
|                                |                                                                                               |
| - or -                              |
|                                |                                                                                               |
| o                                   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

| Pennsylvania                                  |   | 74-2705050                           |
|-----------------------------------------------|--------|--------------------------------------|
| (State or Other Jurisdiction of Incorporation |   | (I.R.S. Employer Identification No.) |
| or Organization)                              |   |                                 |

| 3 Penns Trail, Newtown, Pennsylvania     |   | 18940      |
|------------------------------------------|--------|------------|
| (Address of Principal Executive Offices) |   | (Zip Code) |

| Large accelerated filer o                     |   | Accelerated filer o         |
|-----------------------------------------------|--------|----------------------------------|
|                                          |   |                             |
| Non-accelerated filer o                       |   | Smaller reporting company x |
| (Do not check if a smaller reporting company) |   |                             |

| Class                       | Outstanding      |
|-----------------------------|------------------|
| $.10 par value common stock | 2,822,449 shares |

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CON

| PART I-CONSOLIDATED FINANCIAL INFORMATION |                                                                                        |
|------------------------------------------------|---------------------------------------------------------------------------------------------|
|                                           |                                                                                        |   |
| Item 1.                                        | Consolidated Financial Statements Unaudited                                            | 3 |
|                                           |                                                                                        |   |
| Item 2.                                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 24 |
|                                           |                                                                                        |   |
| Item 3.                                        | Quantitative and Qualitative Disclosures about Market Risk                                  | 32 |
|                                           |                                                                                        |   |
| Item 4.                                        | Controls and Procedures                                                                     | 33 |
|                                           |                                                                                        |   |
| PART II-OTHER INFORMATION                 |                                                                                        |
|                                           |                                                                                        |   |
| Item 1.                                        | Legal Proceedings                                                                           | 34 |
|                                           |                                                                                        |   |
| Item 1A.                                       | Risk Factors                                                                                | 34 |
|                                           |                                                                                        |   |
| Item 2.                                        | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 34 |
|                                           |                                                                                        |   |
| Item 3.                                        | Defaults Upon Senior Securities                                                             | 34 |
|                                           |                                                                                        |   |
| Item 4.                                        | [Removed and Reserved]                                                                      | 34 |
|                                           |                                                                                        |   |
| Item 5.                                        | Other Information                                                                           | 34 |
|                                           |                                                                                        |   |
| Item 6.                                        | Exhibits                                                                                    | 34 |
|                                           |                                                                                        |   |
| Signatures                                     | 35                                                                                          |
|                                           |                                                                                        |   |
| Exhibits                                       |                                                                                        |   |
|                                           |                                                                                        |   |
| 31.1                                           | Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002         |   |
|                                           |                                                                                        |   |
| 31.2                                           | Certification of CFO pursuant of Section 302 of the Sarbanes-Oxley Act of 2002         |   |
|                                           |                                                                                        |   |
| 32.                                            | Certification pursuant of Section 906 of the Sarbanes-Oxley Act of 2002                |   |

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Table of Contents

ITEM 1.

|                                                                                                                                                                                                                                                        |   | March 31,2011       |    |   | December 31,2010 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                        |   | (in thousands) |    |
| ASSETS                                                                                                                                                                                                                                                      |   |                |    |   |                  |   |
| Cash and cash equivalents                                                                                                                                                                                                                                   |   | $                   | 10,668  |   |                  | $      | 7,437 |   |
| Investment securities                                                                                                                                                                                                                                       |   |                | 119,909 |   |                  |   | 127,490 |   |
| Loans receivable, net                                                                                                                                                                                                                                       |   |                | 498,664 |   |                  |   | 501,528 |   |
| Loans receivable held for sale                                                                                                                                                                                                                              |   |                | 215     |   |                  |   | 130 |   |
| Federal Home Loan Bank stock—at cost                                                                                                                                                                                                                  |   |                | 8,931   |   |                  |   | 9,401 |   |
| Accrued interest receivable                                                                                                                                                                                                                                 |   |                | 2,584   |   |                  |   | 2,738 |   |
| Premises and equipment, net                                                                                                                                                                                                                                 |   |                | 6,669   |   |                  |   | 6,797 |   |
| Goodwill                                                                                                                                                                                                                                                    |   |                | 4,324   |   |                  |   | 4,324 |   |
| Bank-owned life insurance                                                                                                                                                                                                                                   |   |                | 18,026  |   |                  |   | 17,868 |   |
| Other assets                                                                                                                                                                                                                                                |   |                | 14,231  |   |                  |   | 14,044 |   |
| TOTAL ASSETS                                                                                                                                                                                                                                                |   | $                   | 684,221 |   |                  | $      | 691,757 |   |
|                                                                                                                                                                                                                                                        |   |                |    |   |                  |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                  |   |                |    |   |                  |   |   |   |
| Liabilities                                                                                                                                                                                                                                                 |   |                |    |   |                  |   |   |   |
| Deposits                                                                                                                                                                                                                                                    |   | $                   | 547,753 |   |                  | $      | 550,135 |   |
| Borrowings from the Federal Home Loan Bank                                                                                                                                                                                                                  |   |                | 55,387  |   |                  |   | 61,987 |   |
| Advances from borrowers for taxes and insurance                                                                                                                                                                                                             |   |                | 1,824   |   |                  |   | 2,166 |   |
| Accrued interest payable                                                                                                                                                                                                                                    |   |                | 2,214   |   |                  |   | 1,784 |   |
| Other liabilities                                                                                                                                                                                                                                           |   |                | 2,773   |   |                  |   | 2,269 |   |
| Total liabilities                                                                                                                                                                                                                                           |   |                | 609,951 |   |                  |   | 618,341 |   |
|                                                                                                                                                                                                                                                        |   |                |    |   |                  |   |   |   |
| Stockholders’ equity                                                                                                                                                                                                                                  |   |                |    |   |                  |   |   |   |
| Preferred stock, no par value; 2,000,000 shares authorized at March 31, 2011 and December 31, 2010, none issued                                                                                                                                   |   |                | — |   |                  |   | — |   |
| Common stock, $0.10 par value; 10,000,000 shares authorized, 5,290,000 shares issued and, 2,822,449 shares outstanding at March 31, 2011 and December 31, 2010, respectively, net of shares in treasury of 2,467,551, respectively |   |                | 529     |   |                  |   | 529 |   |
| Additional paid-in capital                                                                                                                                                                                                                                  |   |                | 54,012  |   |                  |   | 53,964 |   |
| Unearned ESOP shares                                                                                                                                                                                                                                        |   |                | (1,186  | )      |                  |   | (1,217 | ) |
| Treasury stock-at cost                                                                                                                                                                                                                                      |   |                | (51,220 | )      |                  |   | (51,220 | ) |
| Retained earnings                                                                                                                                                                                                                                           |   |                | 71,237  |   |                  |   | 70,749 |   |
| Accumulated other comprehensive income                                                                                                                                                                                                                      |   |                | 898     |   |                  |   | 611 |   |
| Total stockholders’ equity                                                                                                                                                                                                                            |   |                | 74,270  |   |                  |   | 73,416 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                            |   | $                   | 684,221 |   |                  | $      | 691,757 |   |

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Table of Contents

|                                                |   | For the three monthsendedMarch 31, |    |
|-----------------------------------------------------|--------|-----------------------------------------|---------|
|                                                |   | 2011                                    |    |   | 2010 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| Interest income                                     |   |                                    |    |   |   |   |
| Loans, including fees                               |   | $                                       | 6,584   |   |   | $ | 7,302 |   |
| Investment securities                               |   |                                    |    |   |   |   |   |   |
|   Fully taxable                           |   |                                    | 896     |   |   |   | 1,075 |   |
|   Exempt from federal taxes               |   |                                    | 355     |   |   |   | 297 |   |
| Interest-bearing deposits and other                 |   |                                    | — |   |   |   | 1 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| TOTAL INTEREST INCOME                               |   |                                    | 7,835   |   |   |   | 8,675 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| Interest expense                                    |   |                                    |    |   |   |   |   |   |
| Deposits                                            |   |                                    | 1,460   |   |   |   | 1,995 |   |
| Borrowings                                          |   |                                    | 559     |   |   |   | 848 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| TOTAL INTEREST EXPENSE                              |   |                                    | 2,019   |   |   |   | 2,843 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| NET INTEREST INCOME                                 |   |                                    | 5,816   |   |   |   | 5,832 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| Provision for loan losses                           |   |                                    | 900     |   |   |   | 961 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |   |                                    | 4,916   |   |   |   | 4,871 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| Non-interest income                                 |   |                                    |    |   |   |   |   |   |
| Service fees, charges and other operating income    |   |                                    | 465     |   |   |   | 529 |   |
| Bank-owned life insurance                           |   |                                    | 157     |   |   |   | 172 |   |
| Gain on sale of loans                               |   |                                    | 117     |   |   |   | 60 |   |
| Gain (loss) on sale of foreclosed real estate       |   |                                    | 11      |   |   |   | (145 | ) |
|                                                |   |                                    |    |   |   |   |   |   |
| TOTAL NON-INTEREST INCOME                           |   |                                    | 750     |   |   |   | 616 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| Non-interest expense                                |   |                                    |    |   |   |   |   |   |
| Compensation and benefits                           |   |                                    | 2,746   |   |   |   | 2,700 |   |
| Occupancy and equipment                             |   |                                    | 818     |   |   |   | 759 |   |
| Professional fees                                   |   |                                    | 478     |   |   |   | 228 |   |
| Marketing and advertising                           |   |                                    | 67      |   |   |   | 120 |   |
| FDIC insurance premiums                             |   |                                    | 233     |   |   |   | 194 |   |
| Other operating                                     |   |                                    | 634     |   |   |   | 591 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| TOTAL NON-INTEREST EXPENSE                          |   |                                    | 4,976   |   |   |   | 4,592 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| INCOME BEFORE INCOME TAXES                          |   |                                    | 690     |   |   |   | 895 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| Income taxes                                        |   |                                    | 72      |   |   |   | 178 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| NET INCOME                                          |   | $                                       | 618     |   |   | $ | 717 |   |
|                                                |   |                                    |    |   |   |   |   |   |
| Earnings per share—basic                      |   | $                                       | 0.23    |   |   | $ | 0.27 |   |
| Earnings per share—diluted                    |   | $                                       | 0.23    |   |   | $ | 0.27 |   |
| Dividends paid per share                            |   | $                                       | 0.05    |   |   | $ | 0.19 |   |

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Table of Contents

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | For the three monthsendedMarch 31, |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2011                                              |    |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | (in thousands)                               |    |
| OPERATING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                              |    |   |   |   |
| Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                                                 | 618     |   |   | $ | 717 |   |
| Adjustments to reconcile net income to net cash provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                              |    |   |   |   |   |   |
|     Amortization of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                              |    |   |   |   |   |   |
|       Mortgage loan servicing rights                                                                                                                |   |                                              | 50      |   |   |   | (3 | ) |
|       Deferred loan origination fees                                                                                                      |   |                                              | 67      |   |   |   | 51 |   |
|       Premiums and discounts on investment securities, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                              | 101     |   |   |   | 17 |   |
|       Premiums and discounts on loans, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                              | 2       |   |   |   | 43 |   |
| Provision for loan losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                              | 900     |   |   |   | 961 |   |
| Depreciation of premises and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                              | 219     |   |   |   | 212 |   |
| Increase in value of bank-owned life insurance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                              | (157    | ) |   |   | (172 | ) |
| Share-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                              | 79      |   |   |   | 73 |   |
| Proceeds from sale of loans originated for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                              | 5,767   |   |   |   | 6,327 |   |
| Origination of loans held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                              | (5,785  | ) |   |   | (6,114 | ) |
| (Gain) loss on sale of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                              |    |   |   |   |   |   |
|     Loans held for sale                                                                                                                             |   |                                              | (117    | ) |   |   | (60 | ) |
|     Foreclosed real estate                                                                                                                          |   |                                              | (11     | ) |   |   | 145 |   |
|  Decrease (increase) in:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              |    |   |   |   |   |   |
|    Accrued interest receivable                                                                                                                           |   |                                              | 154     |   |   |   | 76 |   |
|    Other assets                                                                                                                                          |   |                                              | 324     |   |   |   | (225 | )  |
| Increase (decrease) in:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                              |    |   |   |   |   |   |
|    Accrued interest payable                                                                                                                              |   |                                              | 430     |   |   |   | 71 |   |
|    Other liabilities                                                                                                                                     |   |                                              | 408     |   |   |   | (773 | )  |
|  NET CASH PROVIDED BY OPERATING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                              | 3,049   |   |   |   | 1,346 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                              |    |   |   |   |   |   |
| INVESTING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                              |    |   |   |   |   |   |
| Loan originations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                              | (22,525 | ) |   |   | (16,357 | ) |
| Loan principal payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                              | 23,578  |   |   |   | 20,855 |   |
| Principal repayments on investment securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              | 7,882   |   |   |   | 6,613 |   |
| Purchase of investment securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                              | — |   |   |   | (9,942 | ) |
| Redemption of FHLB stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                              | 470     |   |   |   | — |   |
| Proceeds from the sale of foreclosed real estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                              | 322     |   |   |   | — |   |
| Purchase of premises and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                              | (91     | ) |   |   | (482 | ) |
| NET CASH PROVIDED BY INVESTING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                              | 9,636   |   |   |   | 687 |   |

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Table of Contents

|                                                            |   | For the three months endedMarch 31, |    |
|-----------------------------------------------------------------|--------|---------------------------------------------------------|---------|
|                                                            |   | 2011                                                    |    |   | 2010 |   |
|                                                            |   | (in thousands)                                     |    |
| FINANCING ACTIVITIES                                            |   |                                                    |    |   |   |   |
| Net (decrease) increase in customer deposits                    |   |                                                    | (2,382  | ) |   |   | 709 |   |
| Proceeds of long-term Federal Home Loan Bank borrowings         |   |                                                    | — |   |   |   | 8,000 |   |
| Repayment of long-term Federal Home Loan Bank borrowings        |   |                                                    | (6,600  | ) |   |   | (6,503 | ) |
| Net decrease in advances from borrowers for taxes and insurance |   |                                                    | (342    | ) |   |   | (268 | ) |
| Exercise of stock options                                       |   |                                                    | — |   |   |   | 72 |   |
| Common stock dividends paid                                     |   |                                                    | (130    | ) |   |   | (505 | ) |
| NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES             |   |                                                    | (9,454  | ) |   |   | 1,505 |   |
|                                                            |   |                                                    |    |   |   |   |   |   |
| NET INCREASE IN CASH AND CASH EQUIVALENTS                       |   |                                                    | 3,231   |   |   |   | 3,538 |   |
|                                                            |   |                                                    |    |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                |   |                                                    | 7,437   |   |   |   | 12,801 |   |
|                                                            |   |                                                    |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                      |   | $                                                       | 10,668  |   |   | $ | 16,339 |   |
|                                                            |   |                                                    |    |   |   |   |   |   |
| Supplemental disclosure of cash flow information                |   |                                                    |    |   |   |   |   |   |
| Cash paid for:                                                  |   |                                                    |    |   |   |   |   |   |
| Interest on deposits and borrowings                             |   | $                                                       | 1,589   |   |   | $ | 2,772 |   |
| Income taxes                                                    |   | $                                                       | 300     |   |   | $ | 30 |   |
| Non-cash transactions:                                          |   |                                                    |    |   |   |   |   |   |
| Transfers from loans to foreclosed real estate                  |   | $                                                       | 843     |   |   | $ | — |   |

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Table of Contents

|                                                        |   | March 31, 2011        |   |
|-------------------------------------------------------------|--------|-----------------------|--------|
|                                                        |   | Before taxamount |   |   | Tax(expense) |   |   | Net of taxamount |   |
|                                                        |   | (in thousands)   |   |
| Unrealized gains on securities                              |   |                  |   |   |   |   |   |   |   |
| Unrealized holding gains arising during period              |   | $                     | 404    |   |   | $ | (137 | ) |   | $ | 267 |   |
| Pension plan benefit adjustment related to actuarial losses |   |                  | 29     |   |   |   | (9 | ) |   |   | 20 |   |
|                                                        |   |                  |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income, net                             |   | $                     | 433    |   |   | $ | (146 | ) |   | $ | 287 |   |

|                                                        |   | March 31, 2010        |   |
|-------------------------------------------------------------|--------|-----------------------|--------|
|                                                        |   | Before taxamount |   |   | Tax(expense) |   |   | Net of taxamount |   |
|                                                        |   | (in thousands)   |   |
| Unrealized gains on securities                              |   |                  |   |   |   |   |   |   |   |
| Unrealized holding gains arising during period              |   | $                     | 257    |   |   | $ | (88 | ) |   | $ | 169 |   |
| Pension plan benefit adjustment related to actuarial losses |   |                  | 33     |   |   |   | (11 | ) |   |   | 22 |   |
|                                                        |   |                  |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income, net                             |   | $                     | 290    |   |   | $ | (99 | ) |   | $ | 191 |   |

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Table of Contents

|                                                                            |   | Three months ended March 31, 2011 |   |
|---------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                            |   | Income(numerator)                                |   | Weightedaverageshares(denominator) |   | Per shareAmount |   |
| Basic earnings per share                                         |   |                                             |   |   |   |   |   |
| Income available to common stockholders                                         |   | $                                                | 618    |   | 2,703,380 |   | $ | 0.23 |   |
| Effect of dilutive securities                                                   |   |                                             |   |   |   |   |   |
| Stock options and grants                                                        |   | —                                          |   | 209 |   | — |   |
|                                                                            |   |                                             |   |   |   |   |   |
| Diluted earnings per share                                                      |   |                                             |   |   |   |   |   |
| Income available to common stockholders plus effect of dilutive securities |   | $                                                | 618    |   | 2,703,589 |   | $ | 0.23 |   |

|                                                                            |   | Three months ended March 31, 2010 |   |
|---------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                            |   | Income(numerator)                                |   | Weightedaverageshares(denominator) |   | Per shareAmount |   |
| Basic earnings per share                                         |   |                                             |   |   |   |   |   |
| Income available to common stockholders                                         |   | $                                                | 717    |   | 2,669,276 |   | $ | 0.27 |   |
| Effect of dilutive securities                                                   |   |                                             |   |   |   |   |   |
| Stock options and grants                                                        |   | —                                          |   | — |   | — |   |
|                                                                            |   |                                             |   |   |   |   |   |
| Diluted earnings per share                                                      |   |                                             |   |   |   |   |   |
| Income available to common stockholders plus effect of dilutive securities |   | $                                                | 717    |   | 2,669,276 |   | $ | 0.27 |   |

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Table of Contents

|                                                                                             |   | March 31, 2011 |    |
|--------------------------------------------------------------------------------------------------|--------|----------------|---------|
|                                                                                             |   | Amortizedcost  |    |   | Grossunrealizedgains |   |   | Grossunrealizedlosses |   |   | Fairvalue |   |
|                                                                                             |   | (in thousands) |    |
| Available for sale                                                                               |   |           |    |   |   |   |   |   |   |   |   |   |
| U.S. Government and federal agencies                                                             |   | $              | 6,000   |   |   | $ | 37 |   |   | $ | — |   |   | $ | 6,037 |   |
| Corporate debt securities                                                                        |   |           | 3,340   |   |   |   | 204 |   |   |   | — |   |   |   | 3,544 |   |
| State and political subdivisions                                                                 |   |           | 47,320  |   |   |   | 1,598 |   |   |   | (66 | ) |   |   | 48,852 |   |
| Residential mortgage-backed securities issued by quasi-governmental agencies |   |           | 44,142  |   |   |   | 1,593 |   |   |   | (19 | ) |   |   | 45,716 |   |
| Residential mortgage-backed securities privately issued                                          |   |           | 12,451  |   |   |   | 324 |   |   |   | (1 | ) |   |   | 12,774 |   |
| Total investment securities available for sale                                                   |   |           | 113,253 |   |   |   | 3,756 |   |   |   | (86 | ) |   |   | 116,923 |   |
| Held to maturity                                                                                 |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities issued by quasi-governmental agencies                     |   |           | 2,986   |   |   |   | 339 |   |   |   | — |   |   |   | 3,325 |   |
| Total investment securities                                                                      |   |  $        | 116,239 |   |   | $ | 4,095 |   |   | $ | (86 | ) |   |  $ | 120,248 |   |

|                                                                                             |   | December 31, 2010 |    |
|--------------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                             |   | Amortizedcost          |    |   | Grossunrealizedgains |   |   | Grossunrealizedlosses |   |   | Fairvalue |   |
|                                                                                             |   | (in thousands)         |    |
| Available for sale                                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |
| U.S. Government and federal agencies                                                             |   | $                      | 6,000   |   |   | $ | 59 |   |   | $ | — |   |   | $ | 6,059 |   |
| Corporate debt securities                                                                        |   |                   | 3,340   |   |   |   | 223 |   |   |   | — |   |   |   | 3,563 |   |
| State and political subdivisions                                                                 |   |                   | 47,348  |   |   |   | 1,120 |   |   |   | (260 | ) |   |   | 48,208 |   |
| Residential mortgage-backed securities issued by quasi-governmental agencies |   |                   | 50,942  |   |   |   | 1,950 |   |   |   | (6 | ) |   |   | 52,886 |   |
| Residential mortgage-backed securities, privately issued                                         |   |                   | 13,425  |   |   |   | 224 |   |   |   | (44 | ) |   |   | 13,605 |   |
| Total investment securities available for sale                                                   |   |                   | 121,055 |   |   |   | 3,576 |   |   |   | (310 | ) |   |   | 124,321 |   |
| Held to maturity                                                                                 |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities held to maturity issued by quasi-governmental agencies    |   |                   | 3,169   |   |   |   | 341 |   |   |   | — |   |   |   | 3,510 |   |
| Total investment securities                                                                      |   | $                      | 124,224 |   |   | $ | 3,917 |   |   | $ | (310 | ) |   | $ | 127,831 |   |

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Table of Contents

|                                                                         |   | Number         |   |   | Less than12 months |   |   | 12 monthsor longer |   |   | Total     |   |
|------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|--------|-----------|--------|
| Description of Securities                                                    |   | ofSecurities   |   |   | FairValue               |   |   | UnrealizedLoss          |   |   | FairValue |   |   | UnrealizedLoss |   |   | Fairvalue |   |   | UnrealizedLoss |   |
|                                                                         |   | (in thousands) |   |
| State and political subdivisions                                             |   |           | 7      |   |                    | $      | 4,352  |                    |   | $      | (66       | )      |   | $ | — |   |   | $ | — |   |   | $ | 4,352 |   |   | $ | (66 | ) |
| Residential mortgage-backed securities issued by quasi-governmental agencies |   |           | 1      |   |                    |   | 2,954  |                    |   |   | (19       | )      |   |   | — |   |   |   | — |   |   |   | 2,954 |   |   |   | (19 | ) |
| Residential mortgage-backed securities privately issued                      |   |           | 1      |   |                    |   | 177    |                    |   |   | (1        | )      |   |   | — |   |   |   | — |   |   |   | 177 |   |   |   | (1 | ) |
|                                                                         |   |           |   |   |                    |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total temporarily impaired securities                                        |   |           | 9      |   |                    | $      | 7,483  |                    |   | $      | (86       | )      |   | $ | — |   |   | $ | — |   |   | $ | (7,483 | ) |   | $ | (86 | ) |

|                                                                         |   | Number         |   |   | Less than12 months |   |   | 12 monthsor longer |   |   | Total     |   |
|------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|--------|-----------|--------|
| Description of Securities                                                    |   | ofSecurities   |   |   | FairValue               |   |   | UnrealizedLoss          |   |   | FairValue |   |   | UnrealizedLoss |   |   | Fairvalue |   |   | UnrealizedLoss |   |
|                                                                         |   | (in thousands) |   |
| State and political subdivisions                                             |   |           | 17     |   |                    | $      | 14,210 |                    |   | $      | (260      | )      |   | $ | — |   |   | $ | — |   |   | $ | 14,210 |   |   | $ | (260 | ) |
| Residential mortgage-backed securities issued by quasi-governmental agencies |   |           | 1      |   |                    |   | 3,027  |                    |   |   | (6        | )      |   |   | — |   |   |   | — |   |   |   | 3,027 |   |   |   | (6 | ) |
| Residential mortgage-backed securities privately issued                      |   |           | 3      |   |                    |   | 7,048  |                    |   |   | (44       | )      |   |   | — |   |   |   | — |   |   |   | 7,048 |   |   |   | (44 | ) |
| Total temporarily impaired securities                                        |   |           | 21     |   |                    | $      | 24,285 |                    |   | $      | (310      | )      |   | $ | — |   |   | $ | — |   |   | $ | 24,285 |   |   | $ | (310 | ) |

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Table of Contents

|                                                                                     |           |    |              |
|------------------------------------------------------------------------------------------|----------------|---------|-------------------|
|                                                                                     | March 31, 2011 |    | December 31, 2010 |   |   |
|                                                                                     | (in thousands) |    |              |
| Held for investment:                                                                     |           |    |              |   |   |   |   |   |
| First mortgage loans                                                                     |           |    |              |   |   |   |   |   |
| Secured by one-to four-family residences                                                 | $         | 267,265 |              |   | $ | 269,077 |   |   |
| Secured by non-residential properties or non—owner occupied residential properties |           | 140,905 |              |   |   | 137,307 |   |   |
| Construction loans                                                                       |           | 18,462  |              |   |   | 18,799 |   |   |
| Total first mortgage loans                                                               |           | 426,632 |              |   |   | 425,183 |   |   |
|                                                                                     |           |    |              |   |   |   |   |   |
| Other loans                                                                              |           |    |              |   |   |   |   |   |
| Commercial-business, real estate secured                                                 |           | 24,628  |              |   |   | 26,603 |   |   |
| Commercial-business, non-real estate secured                                             |           | 5,114   |              |   |   | 5,575 |   |   |
| Home equity and second mortgage                                                          |           | 48,150  |              |   |   | 49,430 |   |   |
| Other consumer                                                                           |           | 2,408   |              |   |   | 2,407 |   |   |
| Total other loans                                                                        |           | 80,300  |              |   |   | 84,015 |   |   |
|                                                                                     |           |    |              |   |   |   |   |   |
| Total loans                                                                              |           | 506,932 |              |   |   | 509,198 |   |   |
| Net deferred loan origination costs and unamortized premiums                             |           | 638     |              |   |   | 658 |   |   |
| Less allowance for loan losses                                                           |           | (8,906  | )                 |   |   | (8,328 | ) |   |
| Total loans receivable                                                                   | $              | 498,664 |              |   | $ | 501,528 |   |   |
|                                                                                     |           |    |              |   |   |   |   |   |
| Held for sale:                                                                           |           |    |              |   |   |   |   |   |
| First mortgage loans                                                                     |           |    |              |   |   |   |   |   |
| Secured by one-to four-family residences                                                 | $              | 215     |              |   | $ | 130 |   |   |

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Table of Contents

| Commercial credit exposure-credit risk profile by internally assigned grade             |
|-----------------------------------------------------------------------------------------|
| March 31, 2011                                                                          |
|                                                                                    |
|                                                                                    |   |   | Pass |   |   |   | Specialmention |   |   |   | Substandard |   |   |   | Doubtful |   |   |   | Total |
|                                                                                    |   |   | (in thousands) |
| Secured by non-residential properties ornon—owner occupied residential properties |   | $ | 111,328 |   |   | $ | 19,561 |   |   | $ | 10,016 |   |   | $ | — |   |   | $ | 140,905 |
| Construction loans                                                                      |   |   | 3,102 |   |   |   | 5,849 |   |   |   | 9,511 |   |   |   | — |   |   |   | 18,462 |
| Commercial-business, real estate secured                                                |   |   | 13,827 |   |   |   | 1,001 |   |   |   | 9,800 |   |   |   | — |   |   |   | 24,628 |
| Commercial-business, non-real estate secured                                            |   |   | 5,114 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 5,114 |
|   Total                                                                            |   | $ | 133,371 |   |   | $ | 26,411 |   |   | $ | 29,327 |   |   | $ | — |   |   | $ | 189,109 |

| Commercial credit exposure-credit risk profile by internally assigned grade             |
|-----------------------------------------------------------------------------------------|
| December 31, 2010                                                                       |
|                                                                                    |
|                                                                                    |   |   | Pass |   |   |   | Specialmention |   |   |   | Substandard |   |   |   | Doubtful |   |   |   | Total |
|                                                                                    |   |   | (in thousands) |
| Secured by non-residential properties ornon—owner occupied residential properties |   | $ | 108,484 |   |   | $ | 19,299 |   |   | $ | 9,524 |   |   | $ | — |   |   | $ | 137,307 |
| Construction loans                                                                      |   |   | 3,482 |   |   |   | 6,269 |   |   |   | 9,048 |   |   |   | — |   |   |   | 18,799 |
| Commercial-business, real estate secured                                                |   |   | 15,778 |   |   |   | 1,007 |   |   |   | 9,818 |   |   |   | — |   |   |   | 26,603 |
| Commercial-business, non-real estate secured                                            |   |   | 5,531 |   |   |   | — |   |   |   | — |   |   |   | 44 |   |   |   | 5,575 |
|   Total                                                                            |   | $ | 133,275 |   |   | $ | 26,575 |   |   | $ | 28,390 |   |   | $ | 44 |   |   | $ | 188,284 |

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Table of Contents

| Mortgage and consumer credit exposure-credit risk profile by payment activity |
|-------------------------------------------------------------------------------|
| March 31, 2011                                                                |
|                                                                          |   |   | Performing |   |   |   | Non-performing |   |   | Total |
|                                                                          |   |   | (in thousands) |
| Secured by one-to four-family residences                                      |   | $ | 262,314 |   |   | $ | 4,951 |   |   | $ | 267,265 |
| Home equity and second mortgage                                               |   |   | 47,520 |   |   |   | 630 |   |   |   | 48,150 |
| Other                                                                         |   |   | 2,408 |   |   |   | — |   |   |   | 2,408 |
|   Total                                                                  |   | $ | 312,242 |   |   | $ | 5,581 |   |   | $ | 317,823 |

| Mortgage and consumer credit exposure-credit risk profile by payment activity |
|-------------------------------------------------------------------------------|
| December 31, 2010                                                             |
|                                                                          |   |   | Performing |   |   |   | Non-performing |   |   | Total |
|                                                                          |   |   | (in thousands) |
| Secured by one-to four- family residences                                     |   | $ | 265,459 |   |   | $ | 3,618 |   |   | $ | 269,077 |
| Home equity and second mortgage                                               |   |   | 48,018 |   |   |   | 1,412 |   |   |   | 49,430 |
| Other                                                                         |   |   | 2,404 |   |   |   | 3 |   |   |   | 2,407 |
|   Total                                                                  |   | $ | 315,881 |   |   | $ | 5,033 |   |   | $ | 320,914 |

|                                                                                     |           |   | March  31, 2011 |   | December 31, 2010 |    |
|------------------------------------------------------------------------------------------|----------------|--------|---------------------------|--------|-------------------|---------|
|                                                                                     | (in thousands) |
| Secured by one-to four-family residences                                                 |           | $      | 4,951                     |   | $                 | 3,618   |   |
| Secured by non-residential properties or non—owner occupied residential properties |           |   | 4,756                     |   |              | 4,993   |   |
| Construction loans                                                                       |           |   | 6,126                     |   |              | 4,307   |   |
| Commercial-business, real estate secured                                                 |           |   | 4,601                     |   |              | 4,601   |   |
| Commercial-business, non-real estate secured                                             |           |   | —                   |   |              | 44      |   |
| Home equity and second mortgage                                                          |           |   | 630                       |   |              | 1,412   |   |
| Other consumer                                                                           |           |   | —                   |   |              | 3       |   |
| Total non-performing loans                                                               |           | $      | 21,064                    |   | $                 | 18,978  |   |
| Total loans past due 90 days as to interest or principal and accruing interest           |           | $      | —                   |   | $                 | — |   |

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Table of Contents

|                                                                                     |   | March 31,  2011 |
|------------------------------------------------------------------------------------------|--------|---------------------------|
|                                                                                     |   |                      | Recorded investment |   |   |   | Unpaid principal balance |   |   |   | Related allowance |   |   |   | Average recorded investment |   |   |   | Interest income recognized |
|                                                                                     |   |                      | (in thousands) |
| With an allowance recorded:                                                              |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Secured by non-residential properties or non—owner occupied residential properties |   | $                         | 2,510 |   |   | $ | 2,510 |   |   | $ | 224 |   |   |  $ | 2,183 |   |   | $ | — |
| Construction loans                                                                       |   |                      | 5,706 |   |   |   | 5,706 |   |   |   | 2,496 |   |   |   | 4,797 |   |   |   | — |
| Commercial-business, real estate secured                                                 |   |                      | 2,605 |   |   |   | 2,605 |   |   |   | 467 |   |   |   | 2,605 |   |   |   | — |
| Commercial-business, non-real estate secured                                             |   |                      | — |   |   |   | — |   |   |   | — |   |   |   | 21 |   |   |   | — |
|                                                                                     |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With no allowance recorded:                                                              |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Secured by non-residential properties or non—owner occupied residential properties |   |  $                   | 1,941 |   |   |  $ | 1,941 |   |   | $ | — |   |   | $ | 2,385 |   |   |   | — |
| Construction loans                                                                       |   |                      | 420 |   |   |   | 420 |   |   |   | — |   |   |   | 420 |   |   |   | — |
| Commercial-business, real estate secured                                                 |   |                      | 1,996 |   |   |   | 1,996 |   |   |   | — |   |   |   | 1,996 |   |   |   | — |
| Total                                                                                    |   | $                         | 15,178 |   |   | $ | 15,178 |   |   | $ | 3,187 |   |   | $ | 14,407 |   |   | $ | — |

|                                                                                     |   | December 31, 2010 |
|------------------------------------------------------------------------------------------|--------|-------------------|
|                                                                                     |   |              | Recorded investment |   |   |   | Unpaid principal balance |   |   |   | Related allowance |   |   |   | Average recorded investment |   |   |   | Interest income recognized |
|                                                                                     |   |              | (in thousands) |
| With an allowance recorded:                                                              |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Secured by non-residential properties or non—owner occupied residential properties |   | $                 | 1,855 |   |   | $ | 1,855 |   |   | $ | 218 |   |   |  $ | 925 |   |   | $ | — |
| Construction loans                                                                       |   |              | 3,887 |   |   |   | 3,887 |   |   |   | 1,627 |   |   |   | 3,887 |   |   |   | — |
| Commercial-business, real estate secured                                                 |   |              | 2,605 |   |   |   | 2,605 |   |   |   | 373 |   |   |   | 1,563 |   |   |   | — |
| Commercial-business, non-real estate secured                                             |   |              | 44 |   |   |   | 44 |   |   |   | 44 |   |   |   | 18 |   |   |   | — |
|                                                                                     |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With no allowance recorded:                                                              |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Secured by non-residential properties or non—owner occupied residential properties |   |              | 2,830 |   |   |   | 2,830 |   |   |   | — |   |   |   | 3,479 |   |   |   | — |
| Construction loans                                                                       |   |              | 420 |   |   |   | 420 |   |   |   | — |   |   |   | 492 |   |   |   | — |
| Commercial-business, real estate secured                                                 |   |              | 1,996 |   |   |   | 1,996 |   |   |   | — |   |   |   | 4,717 |   |   |   | — |
| Commercial-business, non-real estate secured                                             |   |              | — |   |   |   | — |   |   |   | — |   |   |   | 22 |   |   |   | — |
| Total                                                                                    |   | $                 | 13,637 |   |   | $ | 13,637 |   |   | $ | 2,262 |   |   | $ | 15,103 |   |   | $ | — |

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|                                                                                     |   | Current        |    |   | 30-59 Days past due |   |    | 60-89 Days past due |   |   | Loans past due 90 days or more |   |   | Total past due |    |   | Total loans |   |    | Recorded investment over 90 days and accruing interest |   |
|------------------------------------------------------------------------------------------|--------|----------------|---------|--------|---------------------|--------|---------|---------------------|--------|--------|--------------------------------|--------|--------|----------------|---------|--------|-------------|--------|---------|--------------------------------------------------------|--------|
|                                                                                     |   | (in thousands) |    |
| Secured by one-to four- family residences                                                |   | $              | 263,144 |   |                | $      | — |                |   | $      | —                        |   |   | $              | 4,121   |   |        | $      | 4,121   |                                                   |   | $ | 267,265 |   |   | $ | — |   |
| Secured by non-residential properties or non—owner occupied residential properties |   |           | 136,149 |   |                |   | — |                |   |   | —                        |   |   |           | 4,756   |   |        |   | 4,756   |                                                   |   |   | 140,905 |   |   |   | — |   |
| Construction loans                                                                       |   |           | 14,156  |   |                |   | — |                |   |   | —                        |   |   |           | 4,306   |   |        |   | 4,306   |                                                   |   |   | 18,462 |   |   |   |  — |   |
| Commercial-business, real estate secured                                                 |   |           | 20,027  |   |                |   | — |                |   |   | —                        |   |   |           | 4,601   |   |        |   | 4,601   |                                                   |   |   | 24,628 |   |   |   | — |   |
| Commercial-business, non-real estate secured                                             |   |           | 5,114   |   |                |   | — |                |   |   | —                        |   |   |           | — |   |        |   | — |                                                   |   |   | 5,114 |   |   |   | — |   |
| Home equity and second mortgage                                                          |   |           | 47,492  |   |                |   | 28      |                |   |   | —                        |   |   |           | 630     |   |        |   | 658     |                                                   |   |   | 48,150 |   |   |   |  — |   |
| Other                                                                                    |   |           | 2,408   |   |                |   | — |                |   |   | —                        |   |   |           | — |   |        |   | — |                                                   |   |   | 2,408 |   |   |   | — |   |
|   Total                                                                             |   |  $        | 488,490 |   |                | $      | 28      |                |   | $      | —                        |   |   | $              | 18,414  |   |        | $      | 18,442  |                                                   |   | $ | 506,932 |   |   | $ | — |   |

|                                                                                     |   | Current        |    |   | 30-59 days past due |   |    | 60-89 days past due |   |   | Loans past due 90 days or more |   |   | Total past due |   |   | Total loans |   |   | Recorded investment over 90 days and accruing interest |   |
|------------------------------------------------------------------------------------------|--------|----------------|---------|--------|---------------------|--------|---------|---------------------|--------|--------|--------------------------------|--------|--------|----------------|--------|--------|-------------|--------|--------|--------------------------------------------------------|--------|
|                                                                                     |   | (in thousands) |    |
| Secured by one-to four-family residences                                                 |   | $              | 267,885 |   |                | $      | 424     |                |   | $      | 26                             |   |   | $              | 742    |   |        | $      | 1,192  |                                                   |   | $ | 269,077 |   |   | $ | — |   |
| Secured by non-residential properties or non—owner occupied residential properties |   |           | 131,566 |   |                |   | 748     |                |   |   | 754                            |   |   |           | 4,239  |   |        |   | 5,741  |                                                   |   |   | 137,307 |   |   |   | — |   |
| Construction loans                                                                       |   |           | 14,492  |   |                |   | — |                |   |   | —                        |   |   |           | 4,307  |   |        |   | 4,307  |                                                   |   |   | 18,799 |   |   |   |   |   |
| Commercial-business, real estate secured                                                 |   |           | 18,877  |   |                |   | 3,125   |                |   |   | —                        |   |   |           | 4,601  |   |        |   | 7,726  |                                                   |   |   | 26,603 |   |   |   | — |   |
| Commercial-business, non-real estate secured                                             |   |           | 5,531   |   |                |   | — |                |   |   | —                        |   |   |           | 44     |   |        |   | 44     |                                                   |   |   | 5,575 |   |   |   | — |   |
| Home equity and second mortgage                                                          |   |           | 48,285  |   |                |   | 60      |                |   |   | 9                              |   |   |           | 1,076  |   |        |   | 1,145  |                                                   |   |   | 49,430 |   |   |   |   |   |
| Other                                                                                    |   |           | 2,381   |   |                |   | 13      |                |   |   | 10                             |   |   |           | 3      |   |        |   | 26     |                                                   |   |   | 2,407 |   |   |   | — |   |
|   Total                                                                             |   |  $        | 489,017 |   |                | $      | 4,370   |                |   | $      | 799                            |   |   | $              | 15,012 |   |        | $      | 20,181 |                                                   |   | $ | 509,198 |   |   | $ | — |   |

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Table of Contents

|                                                                                     |   |    |
|------------------------------------------------------------------------------------------|--------|---------|
|                                                                                     |   |    | Balance January 1, 2011 |   |   |   | Provision |   |   |   | Charge- offs |   |   |   | Recoveries |   |   |   | Balance March 31, 2011 |
|                                                                                     |   |    | (in thousands) |
| Secured by one-to four- family residences                                                |   |  $ |   1,839 |   |   |  $ |   268 |   |   |  $ |   (57 |  ) |   |  $ |  — |   |   |  $ |   2,050 |
| Secured by non-residential properties or non—owner occupied residential properties |   |    | 2,124 |   |   |   | (154 | )  |   |   |  — |   |   |   |  — |   |   |   | 1,970 |
| Construction loans                                                                       |   |    | 2,479 |   |   |   | 564 |   |   |   |  — |   |   |   |  — |   |   |   | 3,043 |
| Commercial-business, real estate secured                                                 |   |    | 974 |   |   |   | 167 |   |   |   |  — |   |   |   |  — |   |   |   | 1,141 |
| Commercial-business, non-real estate secured                                             |   |    | 77 |   |   |   | 67 |   |   |   | (44 | ) |   |   | 3 |   |   |   | 103 |
| Home equity and second mortgage                                                          |   |    | 607 |   |   |   | 193 |   |   |   | (221 | ) |   |   |   |   |   |   | 579 |
| Other consumer                                                                           |   |    | 16 |   |   |   | 7 |   |   |   | (7 | ) |   |   | 4 |   |   |   | 20 |
| Unallocated                                                                              |   |    |   212 |   |   |   |   (212 | )  |   |   |   — |   |   |   |   — |   |   |   |   — |
| Total                                                                                    |   | $       | 8,328 |   |   | $ | 900 |   |   | $ | (329 | )  |   | $ | 7 |   |   | $ | 8,906 |

|                                         |   | 2010           |   |
|----------------------------------------------|--------|----------------|--------|
|                                         |   | (in thousands) |   |
| Balance at January 1,                   |   | $              | 5,215  |   |
| Provision charged to income                  |   |           | 961    |   |
| Charge-offs:                                 |   |           |   |   |
| Commercial-business, non-real estate secured |   |           | (7     | ) |
| Home equity and second mortgage              |   |           | (6     | ) |
| Recoveries:                                  |   |           |   |   |
| Other consumer                               |   |           | 2      |   |
| Balance at March 31,                         |   | $              | 6,165  |   |

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|                                                                                     |   |   | Evaluated for impairment |   |   |   |         |
|------------------------------------------------------------------------------------------|--------|--------|--------------------------|--------|--------|--------|--------------|
| Allowance                                                                                |   |   | Individually             |   |   |   | Collectively |   |   |   | Total |
|                                                                                     |   |   | (in thousands)           |
| Secured by one-to-four family residences                                                 |   | $      | —                  |   |   | $      | 2,050        |   |   |   $ | 2,050 |
| Secured by non-residential properties or non—owner occupied residential properties |   |   | 224                      |   |   |   | 1,746        |   |   |   | 1,970 |
| Construction loans                                                                       |   |   | 2,496                    |   |   |   | 547          |   |   |   | 3,043 |
| Commercial-business, real estate secured                                                 |   |   | 467                      |   |   |   | 674          |   |   |   | 1,141 |
| Commercial-business, non-real estate secured                                             |   |   | —                  |   |   |   | 103          |   |   |   | 103 |
| Home equity and second mortgage                                                          |   |   | —                  |   |   |   | 579          |   |   |   | 579 |
| Other consumer                                                                           |   |   | —                  |   |   |   | 20           |   |   |   | 20 |
| Unallocated                                                                              |   |   | —                  |   |   |   | —      |   |   |   | — |
| Total                                                                                    |   | $      | 3,187                    |   |   | $      | 5,719        |   |   | $ | 8,906 |

|                                                                                     |   |   | Evaluated for impairment |   |   |   |         |
|------------------------------------------------------------------------------------------|--------|--------|--------------------------|--------|--------|--------|--------------|
| Loan balance                                                                             |   |   | Individually             |   |   |   | Collectively |   |   |   | Total |
|                                                                                     |   |   | (in thousands)           |
| Secured by one-to-four family residences                                                 |   | $      | —                  |   |   | $      | 267,265      |   |   |   $ | 267,265 |
| Secured by non-residential properties or non—owner occupied residential properties |   |   | 4,451                    |   |   |   | 136,454      |   |   |   | 140,905 |
| Construction loans                                                                       |   |   | 6,127                    |   |   |   | 12,335       |   |   |   | 18,462 |
| Commercial-business, real estate secured                                                 |   |   | 4,601                    |   |   |   | 20,027       |   |   |   | 24,628 |
| Commercial-business, non-real estate secured                                             |   |   | —                  |   |   |   | 5,114        |   |   |   | 5,114 |
| Home equity and second mortgage                                                          |   |   | —                  |   |   |   | 48,150       |   |   |   | 48,150 |
| Other consumer                                                                           |   |   | —                  |   |   |   | 2,408        |   |   |   | 2,408 |
| Total                                                                                    |   | $      | 15,179                   |   |   | $      | 491,753      |   |   | $ | 506,932 |

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|                                                                                     |   |   | Evaluated for impairment |   |   |   |         |
|------------------------------------------------------------------------------------------|--------|--------|--------------------------|--------|--------|--------|--------------|
| Allowance                                                                                |   |   | Individually             |   |   |   | Collectively |   |   |   | Total |
|                                                                                     |   |   | (in thousands)           |
| Secured by one-to-four family residences                                                 |   | $      | —                  |   |   | $      | 1,839        |   |   |   $ | 1,839 |
| Secured by non-residential properties or non—owner occupied residential properties |   |   | 218                      |   |   |   | 1,906        |   |   |   | 2,124 |
| Construction loans                                                                       |   |   | 1,627                    |   |   |   | 852          |   |   |   | 2,479 |
| Commercial-business, real estate secured                                                 |   |   | 373                      |   |   |   | 601          |   |   |   | 974 |
| Commercial-business, non-real estate secured                                             |   |   | 44                       |   |   |   | 33           |   |   |   | 77 |
| Home equity and second mortgage                                                          |   |   | —                  |   |   |   | 607          |   |   |   | 607 |
| Other consumer                                                                           |   |   | —                  |   |   |   | 16           |   |   |   | 16 |
| Unallocated                                                                              |   |   | —                  |   |   |   | 212          |   |   |   | 212 |
| Total                                                                                    |   | $      | 2,262                    |   |   | $      | 6,066        |   |   | $ | 8,328 |

|                                                                                     |   |   | Evaluated for impairment |   |   |   |         |
|------------------------------------------------------------------------------------------|--------|--------|--------------------------|--------|--------|--------|--------------|
| Loan balance                                                                             |   |   | Individually             |   |   |   | Collectively |   |   |   | Total |
|                                                                                     |   |   | (in thousands)           |
| Secured by one-to-four family residences                                                 |   | $      | —                  |   |   | $      | 269,077      |   |   |   $ | 269,077 |
| Secured by non-residential properties or non—owner occupied residential properties |   |   | 4,685                    |   |   |   | 132,622      |   |   |   | 137,307 |
| Construction loans                                                                       |   |   | 4,307                    |   |   |   | 14,492       |   |   |   | 18,799 |
| Commercial-business, real estate secured                                                 |   |   | 4,601                    |   |   |   | 22,002       |   |   |   | 26,603 |
| Commercial-business, non-real estate secured                                             |   |   | 44                       |   |   |   | 5,531        |   |   |   | 5,575 |
| Home equity and second mortgage                                                          |   |   | —                  |   |   |   | 49,430       |   |   |   | 49,430 |
| Other consumer                                                                           |   |   | —                  |   |   |   | 2,407        |   |   |   | 2,407 |
| Total                                                                                    |   | $      | 13,637                   |   |   | $      | 495,561      |   |   | $ | 509,198 |

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|   | · | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | Level 2 inputs are inputs that are observable for the asset or liability, either directly or indirectly. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | Level 3 inputs are unobservable and contain assumptions of the party assessing the fair value of the asset or liability. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

| At March 31, 2011                                                                                                        |   | QuotedPrices inActiveMarketsforIdenticalAssets(Level 1) |    |   | SignificantOtherObservableInputs(Level 2) |   |    | SignificantUnobservableInputs(Level 3) |   |   | Balance as ofMarch 31,2011 |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|---------|--------|------------------------------------------------|--------|---------|---------------------------------------------|--------|--------|--------------------------------------|--------|
|                                                                                                                     |   | (in thousands)                                                    |    |
| Assets                                                                                                                   |   |                                                              |    |   |                                           |   |    |                                        |   |   |                                 |   |
| Investment securities available for sale                                                                            |   |                                                              |    |   |                                           |   |    |                                        |   |   |                                 |   |
| U.S. Government and federal agencies                                                                                     |   | $                                                                 | — |   |                                           | $      | 6,037   |                                        |   | $      | —                              |   |   | $ | 6,037 |   |
| Corporate debt securities                                                                                                |   |                                                              | — |   |                                           |   | 3,544   |                                        |   |   | —                              |   |   |   | 3,544 |   |
| State and political subdivisions                                                                                         |   |                                                              | — |   |                                           |   | 48,852  |                                        |   |   | —                              |   |   |   | 48,852 |   |
|     Residential mortgage-backed securities issued by quasi-governmental agencies |   |                                                              | — |   |                                           |   | 45,716  |                                        |   |   | —                              |   |   |   | 45,716 |   |
|     Residential real estate mortgage - backed securities privately issued                            |   |                                                              | — |   |                                           |   | 12,774  |                                        |   |   | —                              |   |   |   | 12,774 |   |
| Total investment securities available for sale                                                                 |   | $                                                                 | — |   |                                           | $      | 116,923 |                                        |   | $      | —                              |   |   | $ | 116,923 |   |
| Liabilities                                                                                                              |   |                                                              |    |   |                                           |   |    |                                        |   |   |                                 |   |   |   |   |   |
| Forward loan sales                                                                                                       |   | $                                                                 | — |   |                                           | $      | — |                                        |   | $      | 2                                    |   |   | $ | 2 |   |

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| At December 31, 2010                                                                                                     |   | QuotedPrices inActiveMarketsforIdenticalAssets(Level 1) |    |   | SignificantOtherObservableInputs(Level 2) |   |    | SignificantUnobservableInputs(Level 3) |   |   | Balance as ofDecember 31,2010 |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|---------|--------|------------------------------------------------|--------|---------|---------------------------------------------|--------|--------|-----------------------------------------|--------|
|                                                                                                                     |   | (in thousands)                                                    |
| Assets                                                                                                                   |   |                                                              |    |   |                                           |   |    |                                        |   |   |                                    |   |
| Investment securities available for sale                                                                            |   |                                                              |    |   |                                           |   |    |                                        |   |   |                                    |   |
| U.S. Government and federal agencies                                                                                     |   | $                                                                 | — |   |                                           | $      | 6,059   |                                        |   | $      | —                                 |   |   | $ | 6,059 |   |
| Corporate debt securities                                                                                                |   |                                                              | — |   |                                           |   | 3,563   |                                        |   |   | —                                 |   |   |   | 3,563 |   |
| State and political subdivisions                                                                                         |   |                                                              | — |   |                                           |   | 48,208  |                                        |   |   | —                                 |   |   |   | 48,208 |   |
|     Residential mortgage-backed securities issued by quasi-governmental agencies |   |                                                              | — |   |                                           |   | 52,886  |                                        |   |   | —                                 |   |   |   | 52,886 |   |
|     Residential real estate mortgage - backed securities privately issued                            |   |                                                              | — |   |                                           |   | 13,605  |                                        |   |   | —                                 |   |   |   | 13,605 |   |
| Total investment securities available for sale                                                                 |   | $                                                                 | — |   |                                           | $      | 124,321 |                                        |   | $      | —                                 |   |   | $ | 124,321 |   |
|                                                                                                                     |   |                                                              |    |   |                                           |   |    |                                        |   |   |                                    |   |   |   |   |   |
| Forward loan sales                                                                                                       |   | $                                                                 | — |   |                                           | $      | — |                                        |   | $      | 3                                       |   |   | $ | 3 |   |

|                                              |   | Forwardloan sales |   |
|---------------------------------------------------|--------|-------------------|--------|
|                                              |   | (in thousands)    |   |
| Beginning balance, January 1, 2011           |   | $                 | 3      |   |
| Total gains (losses) — realized/unrealized: |   |              |   |
| Included in earnings                              |   | (5                | )      |
| Included in other comprehensive income       |   | —           |   |
| Purchases, issuances, and settlements             |   | —           |   |
| Ending balance, March 31, 2011                    |   | $                 | (2     | ) |

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| At March 31, 2011                        |   | QuotedPrices inActiveMarketsforIdenticalAssets(Level 1) |    |   | SignificantOtherObservableInputs(Level 2) |   |    | SignificantUnobservableInputs(Level 3) |   |   | Balance as ofMarch 31,2011 |   |
|------------------------------------------|--------|-------------------------------------------------------------------|---------|--------|------------------------------------------------|--------|---------|---------------------------------------------|--------|--------|--------------------------------------|--------|
|                                     |   | (in thousands)                                                    |    |
| Assets                                   |   |                                                              |    |   |                                           |   |    |                                        |   |   |                                 |   |
| Impaired loans                           |   | $                                                                 | — |   |                                           | $      | — |                                        |   | $      | 11,992                               |   |   | $ | 11,992 |   |
| Real estate acquired through foreclosure |   | $                                                                 | — |   |                                           | $      | — |                                        |   | $      | 8,002                                |   |   | $ | 8,002 |   |
| Mortgage servicing rights                |   | $                                                                 | — |   |                                           | $      | 878     |                                        |   | $      | —                              |   |   | $ | 878 |   |

| At December 31, 2010                |   | QuotedPrices inActiveMarketsforIdenticalAssets(Level 1) |    |   | SignificantOtherObservableInputs(Level 2) |   |    | SignificantUnobservableInputs(Level 3) |   |   | Balance as ofDecember 31, 2010 |   |
|------------------------------------------|--------|--------------------------------------------------------------|---------|--------|------------------------------------------------|--------|---------|---------------------------------------------|--------|--------|-------------------------------------|--------|
|                                     |   | (in thousands)                                               |    |
| Assets                                   |   |                                                         |    |   |                                           |   |    |                                        |   |   |                                |   |
| Impaired loans                           |   | $                                                            | — |   |                                           | $      | — |                                        |   | $      | 11,375                              |   |   | $ | 11,375 |   |
| Real estate acquired through foreclosure |   | $                                                            | — |   |                                           | $      | — |                                        |   | $      | 7,482                               |   |   | $ | 7,482 |   |
| Mortgage servicing rights                |   | $                                                            | — |   |                                           | $      | 878     |                                        |   | $      | —                             |   |   | $ | 878 |   |

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|                      |   | March 31, 2011 |    |   | December 31, 2010 |   |
|---------------------------|--------|----------------|---------|--------|------------------------|--------|
|                      |   | Fairvalue      |    |   | Carryingvalue          |   |   | Fairvalue |   |   | Carryingvalue |   |
|                      |   | (in thousands) |    |
| Cash and cash equivalents |   | $              | 10,668  |   |                   | $      | 10,668 |   |   | $ | 7,437 |   |   | $ | 7,437 |   |
| Investment securities     |   |           | 120,248 |   |                   |   | 119,909 |   |   |   | 127,831 |   |   |   | 127,490 |   |

|                  |   | March 31, 2011 |    |   | December 31, 2010 |   |
|-----------------------|--------|----------------|---------|--------|------------------------|--------|
|                  |   | Fairvalue      |    |   | Carryingvalue          |   |   | Fairvalue |   |   | Carryingvalue |   |
|                  |   | (in thousands) |    |
| Loans receivable, net |   | $              | 515,578 |   |                   | $      | 498,879 |   |   | $ | 518,324 |   |   | $ | 501,658 |   |

|                              |   | March 31, 2011 |    |   | December 31, 2010 |   |
|-----------------------------------|--------|----------------|---------|--------|------------------------|--------|
|                              |   | Fairvalue      |    |   | Carryingvalue          |   |   | Fairvalue |   |   | Carryingvalue |   |
|                              |   | (in thousands) |    |
| Liabilities                       |   |           |    |   |                   |   |   |   |   |   |   |   |
| Deposits with stated maturities   |   | $              | 199,378 |   |                   | $      | 197,247 |   |   | $ | 206,791 |   |   | $ | 204,159 |   |
| Borrowings with stated maturities |   |           | 56,911  |   |                   |   | 55,387 |   |   |   | 63,811 |   |   |   | 61,987 |   |

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|                               |   | March 31, 2011 |    |   | December 31, 2010 |   |
|------------------------------------|--------|----------------|---------|--------|------------------------|--------|
|                               |   | Fairvalue      |    |   | Carryingvalue          |   |   | Fairvalue |   |   | Carryingvalue |   |
|                               |   | (in thousands) |    |
| Deposits with no stated maturities |   | $              | 350,506 |   |                   | $      | 350,506 |   |   | $ | 345,976 |   |   | $ | 345,976 |   |

|                                  | 2011                 |   |
|---------------------------------------|----------------------|--------|
|                                  | Numberof shares |   | Weightedaverageexerciseprice pershare | Weightedaverageremainingcontractualterm (inyears) |   | Aggregateintrinsicvalue ($ 000) |   |
| Outstanding at January 1, 2011   | 126,257              |   | $ | 24.04 |   |   |   |   |
| Options granted                       | —              |   | — |   |   |   |   |
| Options exercised                     | —              |   | — |   |   |   |   |
| Options forfeited                     | —              |   | — |   |   |   |   |
| Options expired                       | —              |   | — |   |   |   |   |
| Outstanding at March 31, 2011         | 126,257              |   | $ | 24.04 | 3.05 |   | $ | 68 |   |
| Options exercisable at March 31, 2011 | 98,149               |   | $ | 25.19 | 2.65 |   | $ | 37 |   |

|                                                             |   | Three months endedMarch 31, |   |
|------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                             |   | 2011                                  |   |   | 2010 |   |
|                                                             |   | (in thousands)                        |   |
| Options Exercised                                                |   |                                  |   |   |   |   |
|    Aggregate intrinsic value of options exercised |   | $—                              |   |   | $27 |   |
|    Cash receipts from options exercised           |   | —                               |   |   | 72 |   |
|                                                             |   |                                  |   |   |   |   |
| Share-based compensation expense                                 |   |                                  |   |   |   |   |
| Stock grant expense                                              |   | $                                     | 3      |   |   | $ | 4 |   |
| Stock option expense                                             |   |                                  | 8      |   |   |   | 13 |   |
| Employee Stock Ownership Plan ("ESOP")expense                    |   |                                  | 59     |   |   |   | 45 |   |
| Total share-based compensation expense                           |   | $                                     | 70     |   |   | $ | 62 |   |

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|                                    |   | Three months endedMarch 31, |    |
|-----------------------------------------|--------|---------------------------------------|---------|
|                                    |   | 2011                                  |    |   | 2010 |   |
|                                    |   | (in thousands)                        |    |
| Components of net periodic benefit cost |   |                                  |    |   |   |   |
| Service cost                            |   | $                                     | 141     |   |   | $ | 142 |   |
| Interest cost                           |   |                                  | 82      |   |   |   | 74 |   |
| Expected return on plan assets          |   |                                  | (154    | ) |   |   | (136 | ) |
| Amortization of prior service cost      |   |                                  | — |   |   |   | — |   |
| Recognized net actuarial loss           |   |                                  | 29      |   |   |   | 33 |   |
|                                    |   |                                  |    |   |   |   |   |   |
| Net periodic benefit cost               |   | $                                     | 98      |   |   | $ | 113 |   |

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS

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|   Non-Performing Assets                                                   |   | March 31,2011 |    |   | December 31,2010 |    |
|--------------------------------------------------------------------------------|--------|---------------|---------|--------|-----------------------|---------|
|                                                                           |   |          |    |   |                  |    |   |   |
|                                                                           |   |          |    |   |                  |    |
| Mortgage secured by:                                                           |   |          |    |   |                  |    |   |   |
| One-to four- family residences                                                 |   |  $       | 4,951   |   |                  |  $ | 3,618 |   |
| Non-residential properties or non—owner occupied residential properties  |   |          | 4,756   |   |                  |    | 4,993 |   |
| Construction loans                                                             |   |          | 6,126   |   |                  |    | 4,307 |   |
| Commercial-business, real estate secured                                       |   |          | 4,601   |   |                  |    | 4,601 |   |
| Commercial-business, non-real estate secured                                   |   |          | — |   |                  |    | 44 |   |
| Home equity and second mortgage                                                |   |          | 630     |   |                  |    | 1,412 |   |
| Other consumer                                                                 |   |          | — |   |                  |    | 3 |   |
| Total non-performing loans                                                     |   |          | 21,064  |   |                  |    | 18,978 |   |
| Real estate owned                                                              |   |          | 8,002   |   |                  |    | 7,482 |   |
| Total non-performing assets                                                    |   | $             | 29,066  |   |                  | $       | 26,460 |   |
| Total loans past due 90 days as to interest or principal and accruing interest |   | $             | — |   |                  | $       | — |   |
| Ratio of non-performing loans to gross loans                                   |   |          | 4.15    | %      |                  |    | 3.72 | % |
| Ratio of non-performing loans to total assets                                  |   |          | 3.08    | %      |                  |    | 2.74 | % |
| Ratio of total non-performing assets to total assets                           |   |          | 4.25    | %      |                  |    | 3.83 | % |

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|                                                                                  |   | Three Months Ended March 31, |    |
|---------------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                                  |   | 2011                         |    |   | 2010 |   |
|                                                                                  |   | Averagebalance               |    |   | Interest |   |   | Averageyld/cost |   |   | Averagebalance |   |   | Interest |   |   | Averageyld/cost |   |
| ASSETS                                                                                |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                                              |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable(1)                                                                   |   | $                            | 501,543 |   |   | $ | 6,584 |   |   |   | 5.32 | % |   | $ | 529,817 |   |   | $ | 7,302 |   |   |   | 5.59 | % |
| Mortgage-backed securities                                                            |   |                         | 66,401  |   |   |   | 695 |   |   |   | 4.24 | % |   |   | 81,839 |   |   |   | 967 |   |   |   | 4.79 | % |
| Investment securities(2)                                                              |   |                         | 67,035  |   |   |   | 719 |   |   |   | 4.35 | % |   |   | 53,282 |   |   |   | 541 |   |   |   | 4.12 | % |
| Other interest-earning assets(3)                                                      |   |                         | 3,237   |   |   |   | — | * |   |   | — | % |   |   | 6,728 |   |   |   | 1 |   |   |   | 0.06 | % |
| Total interest-earning assets                                                         |   |                         | 638,216 |   |   |   | 7,998 |   |   |   | 5.08 | % |   |   | 671,666 |   |   |   | 8,811 |   |   |   | 5.32 | % |
| Non interest-earning assets                                                           |   |                         | 48,984  |   |   |   |   |   |   |   |   |   |   |   | 41,204 |   |   |   |   |   |   |   |   |   |
| Total assets                                                                          |   | $                            | 687,200 |   |   |   |   |   |   |   |   |   |   | $ | 712,870 |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                         |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                              |   | $                            | 546,055 |   |   |   | 1,460 |   |   |   | 1.08 | % |   | $ | 549,257 |   |   |   | 1,995 |   |   |   | 1.47 | % |
| Borrowings from the FHLB                                                              |   |                         | 60,446  |   |   |   | 559 |   |   |   | 3.75 | % |   |   | 82,536 |   |   |   | 848 |   |   |   | 4.17 | % |
| Total interest-bearing liabilities                                                    |   |                         | 606,501 |   |   |   | 2,019 |   |   |   | 1.35 | % |   |   | 631,793 |   |   |   | 2,843 |   |   |   | 1.82 | % |
| Non interest-bearing liabilities                                                      |   |                         | 6,482   |   |   |   |   |   |   |   |   |   |   |   | 8,611 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                     |   |                         | 612,983 |   |   |   |   |   |   |   |   |   |   |   | 640,404 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                                            |   |                         | 74,217  |   |   |   |   |   |   |   |   |   |   |   | 72,466 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’equity                                       |   | $                            | 687,200 |   |   |   |   |   |   |   |   |   |   | $ | 712,870 |   |   |   |   |   |   |   |   |   |
| Net interest income—tax equivalent basis                                        |   |                         |    |   |   |   | 5,979 |   |   |   |   |   |   |   |   |   |   |   | 5,968 |   |   |   |   |   |
| Interest rate spread(4)-tax equivalent basis                                          |   |                         |    |   |   |   |   |   |   |   | 3.73 | % |   |   |   |   |   |   |   |   |   |   | 3.50 | % |
| Net yield on interest-earning assets(5)—tax equivalent basis                    |   |                         |    |   |   |   |   |   |   |   | 3.80 | % |   |   |   |   |   |   |   |   |   |   | 3.60 | % |
| Ratio of average interest-earning assets to average interest-bearing liabilities |   |                         |    |   |   |   |   |   |   |   | 105.23 | % |   |   |   |   |   |   |   |   |   |   | 106.31 | % |
| Less: tax—equivalent interestadjustment                                         |   |                         |    |   |   |   | (163 | ) |   |   |   |   |   |   |   |   |   |   | (136 | ) |   |   |   |   |
| Net interest income                                                                   |   |                         |    |   |   | $ | 5,816 |   |   |   |   |   |   |   |   |   |   | $ | 5,832 |   |   |   |   |   |
| Interest rate spread(4)                                                               |   |                         |    |   |   |   |   |   |   |   | 3.63 | % |   |   |   |   |   |   |   |   |   |   | 3.41 | % |
| Net yield on interest-earningassets(5)                                                |   |                         |    |   |   |   |   |   |   |   | 3.70 | % |   |   |   |   |   |   |   |   |   |   | 3.52 | % |

|   | (1 | )      | Nonaccrual loans have been included in the appropriate average loan balance category, but interest on nonaccrual loans has not been included for purposes of determining interest income.                                                  |
|--------|----|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (2 | )      | Tax equivalent adjustments to interest on investment securities were $163,000 and $136,000 for the quarter ended March 31, 2011 and 2010, respectively. Tax equivalent interest income is based upon a marginal effective tax rate of 34%. |
|   | (3 | )      | Includes interest-bearing deposits in other banks.                                                                                                                                                                                         |
|   | (4 | )      | Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.                                                                                  |
|   | (5 | )      | Net yield on interest-earning assets represents net interest income as a percentage of average interest-earning assets.                                                                                                                    |
|   | *  |   | Is less than $500 for period indicated                                                                                                                                                                                                     |

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|                                          |   | Three months ended March 31                      |    |
|-----------------------------------------------|--------|-----------------------------------------------------------------|---------|
|                                          |   | 2011 vs 2010Increase (decrease) due to |    |
|                                          |   | Volume                                                          |    |   | Rate |   |   | Net |   |
| Interest income:                              |   |                                                            |    |   |   |   |   |   |   |
| Loans receivable, net                         |   | $                                                               | (380    | ) |   | $ | (338 | ) |   | $ | (718 | ) |
| Mortgage-backed securities                    |   |                                                            | (169    | ) |   |   | (103 | ) |   |   | (272 | ) |
| Investment securities (1)                     |   |                                                            | 146     |   |   |   | 32 |   |   |   | 178 |   |
| Other interest-earning assets                 |   |                                                            | — |   |   |   | (1 | ) |   |   | (1 | ) |
| Total interest-earning assets                 |   |                                                            | (403    | ) |   |   | (410 | ) |   |   | (813 | ) |
| Interest expense:                             |   |                                                            |    |   |   |   |   |   |   |   |   |   |
| Deposits                                      |   |                                                            | (12     | ) |   |   | (523 | ) |   |   | (535 | ) |
| Borrowings from the FHLB and other borrowings |   |                                                            | (210    | ) |   |   | (79 | ) |   |   | (289 | ) |
|                                          |   |                                                            |    |   |   |   |   |   |   |   |   |   |
| Total interest-bearing liabilities            |   |                                                            | (222    | ) |   |   | (602 | ) |   |   | (824 | ) |
| Net change in net interest income             |   | $                                                               | (181    | ) |   | $ | 192 |   |   | $ | 11 |   |

|   | (1 | ) |   | Tax equivalent adjustments to interest on investment securities were $163,000 and $136,000 for the quarters ended March 31, 2011 and 2010, respectively. Tax equivalent interest income is based upon a marginal effective tax rate of 34%. |
|--------|----|---|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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CONTROLS AND PROCEDURES

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PART II

| ITEM 1.  |   | LEGAL PROCEEDINGS                                                                                                                                                                                                                                                                                                                              |
|----------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |   |                                                                                                                                                                                                                                                                                                                                           |
|     |   | Neither the Company nor its subsidiaries are involved in any pending legal proceedings, other than routine legal matters occurring in the ordinary course of business that in the aggregate involve amounts which are believed by management to be immaterial to the consolidated financial condition or results of operations of the Company. |
|     |   |                                                                                                                                                                                                                                                                                                                                           |
| ITEM 1A. |   | RISKFACTORS                                                                                                                                                                                                                                                                                                                                    |
|     |   |                                                                                                                                                                                                                                                                                                                                           |
|     |   | As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide the information required by this item.                                                                                                                                                                            |
|     |   |                                                                                                                                                                                                                                                                                                                                           |
| ITEM 2.  |   | UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS                                                                                                                                                                                                                                                                                     |
|     |   |                                                                                                                                                                                                                                                                                                                                           |
|     |   | None.                                                                                                                                                                                                                                                                                                                                          |
|     |   |                                                                                                                                                                                                                                                                                                                                           |
| ITEM 3.  |   | DEFAULTS UPON SENIOR SECURITIES                                                                                                                                                                                                                                                                                                                |
|     |   |                                                                                                                                                                                                                                                                                                                                           |
|     |   | Not applicable.                                                                                                                                                                                                                                                                                                                                |
|     |   |                                                                                                                                                                                                                                                                                                                                           |
| ITEM 4.  |   | [REMOVED AND RESERVED]                                                                                                                                                                                                                                                                                                                         |
|     |   |                                                                                                                                                                                                                                                                                                                                           |
| ITEM 5.  |   | OTHER INFORMATION                                                                                                                                                                                                                                                                                                                              |
|     |   |                                                                                                                                                                                                                                                                                                                                           |
|     |   | None.                                                                                                                                                                                                                                                                                                                                          |
|     |   |                                                                                                                                                                                                                                                                                                                                           |
| ITEM 6.  |   | EXHIBITS                                                                                                                                                                                                                                                                                                                                       |
|     |   |                                                                                                                                                                                                                                                                                                                                           |
|     |   | (a)                                                                                                                                                                                                                                                                                                                                  | Exhibits |
|     |   |                                                                                                                                                                                                                                                                                                                                           | 31.1  | Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|     |   |                                                                                                                                                                                                                                                                                                                                           | 31.2 | Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|     |   |                                                                                                                                                                                                                                                                                                                                           | 32. | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

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SIGNATURES

| Date:  | May 13, 2011 |   | /s/ Kent C. Lufkin                                   |
|--------|--------------|--------|------------------------------------------------------|
|   |         |   | Kent C. Lufkin                                       |
|   |         |   | President and CEO                                    |
|   |         |   | (Principal Executive Officer)                        |
|   |         |   |                                                 |
|   |         |   |                                                 |
| Date:  | May 13, 2011 |   | /s/ Dennis R. Stewart                                |
|   |         |   | Dennis R. Stewart                                    |
|   |         |   | Executive Vice President and Chief Financial Officer |
|   |         |   | (Principal Financial & Accounting Officer)  |

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