----

----

----

----

| x      | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                       |
|--------|------------------------------------------------------------------------------------------------------------|
|   |                                                                                                       |
|   | For the fiscal year ended December 31, 2010                                                           |
|   | OR                                                                                                         |
|   |                                                                                                       |
|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                   |
|   |                                                                                                       |
|   | For the transition period from  ___________________  to  ___________________ |

| MutualFirst Financial, Inc.                            |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| Maryland                                                       |   | 35-2085640                          |
|----------------------------------------------------------------|--------|-------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. EmployerIdentification No.) |
|                                                           |   |                                |
| 110 E. Charles Street, Muncie, Indiana                         |   | 47305-2419                          |
| (Address of principal executive offices)                       |   | (Zip Code)                          |

| Title of each class                    | Name of each exchange on which registered |
|----------------------------------------|-------------------------------------------|
| Common Stock, par value $.01 per share | Nasdaq Global Market                      |

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

----

----

----

----

----

|                          |   | December 31,           |      |
|-------------------------------|--------|------------------------|-----------|
|                          |   | 2010                   |      |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                          |   | Amount                 |      |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                          |   | (Dollars in thousands) |      |
| Real Estate Loans:            |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family           |   | $                      | 468,502   | (1) |   |   | 46.38 | % |   | $ | 480,832 | (2) |   |   | 44.60 | % |   | $ | 521,364 | (3) |   |   | 46.11 | % |   | $ | 431,018 | (4) |   |   | 53.02 | % |   | $ | 433,123 | (5) |   |   | 53.01 | % |
| Commercial                    |   |                   | 199,517   |   |   |   | 19.75 |   |   |   | 206,944 |   |   |   | 19.20 |   |   |   | 253,391 |   |   |   | 22.41 |   |   |   | 86,045 |   |   |   | 10.58 |   |   |   | 78,985 |   |   |   | 7.82 |   |
| Construction and development  |   |                   | 49,803    |   |   |   | 4.93 |   |   |   | 53,045 |   |   |   | 4.92 |   |   |   | 12,232 |   |   |   | 1.08 |   |   |   | 13,560 |   |   |   | 1.67 |   |   |   | 14,451 |   |   |   | 1.43 |   |
| Total real estate loans       |   |                   | 717,822   |   |   |   | 71.06 |   |   |   | 740,821 |   |   |   | 68.72 |   |   |   | 786,987 |   |   |   | 69.60 |   |   |   | 530,623 |   |   |   | 65.28 |   |   |   | 526,559 |   |   |   | 52.12 |   |
|                          |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Loans:                  |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer Loans:               |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Automobile                    |   |                   | 16,047    |   |   |   | 1.59 |   |   |   | 18,848 |   |   |   | 1.75 |   |   |   | 22,715 |   |   |   | 2.01 |   |   |   | 22,917 |   |   |   | 2.82 |   |   |   | 31,336 |   |   |   | 3.10 |   |
| Residential                   |   |                   | 103,566   |   |   |   | 10.25 |   |   |   | 107,046 |   |   |   | 9.93 |   |   |   | 111,799 |   |   |   | 9.89 |   |   |   | 72,388 |   |   |   | 8.90 |   |   |   | 68,597 |   |   |   | 6.79 |   |
| Boat/RVs                      |   |                   | 102,015   |   |   |   | 10.10 |   |   |   | 127,244 |   |   |   | 11.80 |   |   |   | 126,812 |   |   |   | 11.22 |   |   |   | 125,621 |   |   |   | 15.45 |   |   |   | 117,632 |   |   |   | 11.64 |   |
| Other                         |   |                   | 6,157     |   |   |   | 0.61 |   |   |   | 6,650 |   |   |   | 0.62 |   |   |   | 7,066 |   |   |   | 0.62 |   |   |   | 4,585 |   |   |   | 0.56 |   |   |   | 5,408 |   |   |   | 0.54 |   |
| Total consumer loans          |   |                   | 227,785   |   |   |   | 22.55 |   |   |   | 259,788 |   |   |   | 24.10 |   |   |   | 268,392 |   |   |   | 23.74 |   |   |   | 225,511 |   |   |   | 27.74 |   |   |   | 222,973 |   |   |   | 22.07 |   |
|                          |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial business loans     |   |                   | 64,611    |   |   |   | 6.40 |   |   |   | 77,384 |   |   |   | 7.18 |   |   |   | 75,290 |   |   |   | 6.66 |   |   |   | 56,764 |   |   |   | 6.98 |   |   |   | 67,476 |   |   |   | 6.68 |   |
| Total other loans             |   |                   | 292,396   |   |   |   | 28.94 |   |   |   | 337,172 |   |   |   | 31.28 |   |   |   | 343,682 |   |   |   | 30.40 |   |   |   | 282,275 |   |   |   | 34.72 |   |   |   | 290,449 |   |   |   | 28.75 |   |
| Total loans receivable, gross |   |                   | 1,010,218 |   |   |   | 100.00 | % |   |   | 1,077,993 |   |   |   | 100.00 | % |   |   | 1,130,669 |   |   |   | 100.00 | % |   |   | 812,898 |   |   |   | 100.00 | % |   |   | 817,008 |   |   |   | 80.87 | % |
|                          |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                         |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Undisbursed portion of loans  |   |                   | 7,212     |   |   |   |   |   |   |   | 2,546 |   |   |   |   |   |   |   | 4,372 |   |   |   |   |   |   |   | 3,984 |   |   |   |   |   |   |   | 5,520 |   |   |   |   |   |
| Deferred loan fees and costs  |   |                   | (2,750    | ) |   |   |   |   |   |   | (3,182 | ) |   |   |   |   |   |   | (3,484 | ) |   |   |   |   |   |   | (3,519 | ) |   |   |   |   |   |   | (3,623 | ) |   |   |   |   |
| Allowance for losses          |   |                   | 16,372    |   |   |   |   |   |   |   | 16,414 |   |   |   |   |   |   |   | 15,107 |   |   |   |   |   |   |   | 8,352 |   |   |   |   |   |   |   | 8,156 |   |   |   |   |   |
| Total loans receivable, net   |   | $                      | 989,384   |   |   |   |   |   |   | $ | 1,062,215 |   |   |   |   |   |   | $ | 1,114,674 |   |   |   |   |   |   | $ | 804,081 |   |   |   |   |   |   | $ | 806,955 |   |   |   |   |   |

----

| (1) | Includes loans held for sale of $10.5 million. |
|-----|------------------------------------------------|

| (2) | Includes loans held for sale of $2.5 million. |
|-----|-----------------------------------------------|

| (3) | Includes loans held for sale of $1.5 million. |
|-----|-----------------------------------------------|

| (4) | Includes loans held for sale of $1.6 million. |
|-----|-----------------------------------------------|

| (5) | Includes loans held for sale of $1.3 million. |
|-----|-----------------------------------------------|

----

|                         |   | December 31,           |      |
|------------------------------|--------|------------------------|-----------|
|                         |   | 2010                   |      |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                         |   | Amount                 |      |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                         |   | (Dollars in thousands) |      |
| Fixed-Rate Loans:            |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate:                 |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family          |   | $                      | 270,782   | (1) |   |   | 26.80 | % |   | $ | 257,044 | (2) |   |   | 23.84 | % |   | $ | 261,969 | (3) |   |   | 23.17 | % |   | $ | 254,235 | (4) |   |   | 31.28 | % |   | $ | 271,405 | (5) |   |   | 33.22 | % |
| Commercial                   |   |                   | 114,806   |   |   |   | 11.36 |   |   |   | 117,108 |   |   |   | 10.86 |   |   |   | 118,323 |   |   |   | 10.46 |   |   |   | 20,861 |   |   |   | 2.57 |   |   |   | 13,896 |   |   |   | 1.70 |   |
| Construction and development |   |                   | 11,982    |   |   |   | 1.19 |   |   |   | 14,528 |   |   |   | 1.35 |   |   |   | 9,724 |   |   |   | 0.86 |   |   |   | 10,197 |   |   |   | 1.25 |   |   |   | 8,310 |   |   |   | 1.02 |   |
| Total real estate loans      |   |                   | 397,570   |   |   |   | 39.35 |   |   |   | 388,680 |   |   |   | 36.06 |   |   |   | 390,016 |   |   |   | 34.49 |   |   |   | 285,293 |   |   |   | 35.10 |   |   |   | 293,611 |   |   |   | 35.94 |   |
|                         |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                     |   |                   | 180,749   |   |   |   | 17.89 |   |   |   | 215,434 |   |   |   | 19.98 |   |   |   | 229,326 |   |   |   | 20.28 |   |   |   | 198,068 |   |   |   | 24.37 |   |   |   | 192,715 |   |   |   | 23.59 |   |
| Commercial business          |   |                   | 27,999    |   |   |   | 2.77 |   |   |   | 40,025 |   |   |   | 3.71 |   |   |   | 37,865 |   |   |   | 3.35 |   |   |   | 19,842 |   |   |   | 2.44 |   |   |   | 27,093 |   |   |   | 3.32 |   |
| Total fixed-rate loans       |   |                   | 606,318   |   |   |   | 60.02 |   |   |   | 644,139 |   |   |   | 59.75 |   |   |   | 657,207 |   |   |   | 58.13 |   |   |   | 503,203 |   |   |   | 61.90 |   |   |   | 513,419 |   |   |   | 62.84 |   |
|                         |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustable-Rate Loans:       |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate:                 |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family          |   | $                      | 197,720   |   |   |   | 19.57 |   |   | $ | 223,788 |   |   |   | 20.76 |   |   | $ | 259,395 |   |   |   | 22.94 |   |   | $ | 176,783 |   |   |   | 21.75 |   |   | $ | 161,718 |   |   |   | 19.79 |   |
| Commercial                   |   |                   | 84,711    |   |   |   | 8.39 |   |   |   | 89,836 |   |   |   | 8.33 |   |   |   | 135,068 |   |   |   | 11.95 |   |   |   | 65,154 |   |   |   | 8.02 |   |   |   | 65,089 |   |   |   | 7.97 |   |
| Construction and development |   |                   | 37,821    |   |   |   | 3.74 |   |   |   | 38,517 |   |   |   | 3.57 |   |   |   | 2,508 |   |   |   | 0.22 |   |   |   | 3,363 |   |   |   | 0.41 |   |   |   | 6,141 |   |   |   | 0.75 |   |
| Total real estate loans      |   |                   | 320,252   |   |   |   | 31.70 |   |   |   | 352,141 |   |   |   | 32.67 |   |   |   | 396,971 |   |   |   | 35.11 |   |   |   | 245,300 |   |   |   | 30.18 |   |   |   | 232,948 |   |   |   | 28.51 |   |
|                         |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                     |   |                   | 47,036    |   |   |   | 4.66 |   |   |   | 44,354 |   |   |   | 4.11 |   |   |   | 39,066 |   |   |   | 3.46 |   |   |   | 27,443 |   |   |   | 3.38 |   |   |   | 30,258 |   |   |   | 3.70 |   |
| Commercial business          |   |                   | 36,612    |   |   |   | 3.62 |   |   |   | 37,359 |   |   |   | 3.47 |   |   |   | 37,425 |   |   |   | 3.31 |   |   |   | 36,922 |   |   |   | 4.54 |   |   |   | 40,383 |   |   |   | 4.94 |   |
| Total adjustable-rate loans  |   |                   | 403,900   |   |   |   | 39.98 |   |   |   | 433,854 |   |   |   | 40.25 |   |   |   | 473,462 |   |   |   | 41.87 |   |   |   | 309,665 |   |   |   | 38.10 |   |   |   | 303,589 |   |   |   | 37.16 |   |
| Total loans                  |   |                   | 1,010,218 |   |   |   | 100.00 | % |   |   | 1,077,993 |   |   |   | 100.00 | % |   |   | 1,130,669 |   |   |   | 100.00 | % |   |   | 812,868 |   |   |   | 100.00 | % |   |   | 817,008 |   |   |   | 100.00 | % |
|                         |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                        |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Undisbursed portion of loans |   |                   | 7,212     |   |   |   |   |   |   |   | 2,546 |   |   |   |   |   |   |   | 4,372 |   |   |   |   |   |   |   | 3,984 |   |   |   |   |   |   |   | 5,520 |   |   |   |   |   |
| Deferred loan fees and costs |   |                   | (2,750    | ) |   |   |   |   |   |   | (3,182 | ) |   |   |   |   |   |   | (3,484 | ) |   |   |   |   |   |   | (3,519 | ) |   |   |   |   |   |   | (3,623 | ) |   |   |   |   |
| Allowance for losses         |   |                   | 16,372    |   |   |   |   |   |   |   | 16,414 |   |   |   |   |   |   |   | 15,107 |   |   |   |   |   |   |   | 8,352 |   |   |   |   |   |   |   | 8,156 |   |   |   |   |   |
| Total loans receivable, net  |   | $                      | 989,384   |   |   |   |   |   |   | $ | 1,062,215 |   |   |   |   |   |   | $ | 1,114,674 |   |   |   |   |   |   | $ | 804,081 |   |   |   |   |   |   | $ | 806,955 |   |   |   |   |   |

----

| (1) | Includes loans held for sale of $10.5 million. |
|-----|------------------------------------------------|

| (2) | Includes loans held for sale of $2.5 million. |
|-----|-----------------------------------------------|

| (3) | Includes loans held for sale of $1.5 million. |
|-----|-----------------------------------------------|

| (4) | Includes loans held for sale of $1.6 million. |
|-----|-----------------------------------------------|

| (5) | Includes loans held for sale of $1.3 million. |
|-----|-----------------------------------------------|

----

|                |   | Real Estate            |    |   |                       |   |
|---------------------|--------|------------------------|---------|--------|----------------------------|--------|
|                |   | One- to Four-Family(1) |    |   | Multi-family andCommercial |   |   | Constructionand Development |   |   | Consumer |   |   | CommercialBusiness |   |   | Total |   |
|                |   | Amount                 |    |   | WeightedAverageRate        |   |   | Amount |   |   | WeightedAverageRate |   |   | Amount |   |   | WeightedAverageRate |   |   | Amount |   |   | WeightedAverageRate |   |   | Amount |   |   | WeightedAverageRate |   |   | Amount |   |   | WeightedAverageRate |   |
|                |   | (Dollars in thousands) |    |
| Due During Years    |   |                   |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending December 31, |   |                   |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2011(2)             |   | $                      | 564     |   |                       |   | 5.49 | % |   | $ | 28,143 |   |   |   | 6.05 | % |   | $ | 31,700 |   |   |   | 4.50 | % |   | $ | 11,631 |   |   |   | 6.83 | % |   | $ | 27,298 |   |   |   | 3.94 | % |   | $ | 99,336 |   |   |   | 5.06 | % |
| 2012                |   |                   | 1,043   |   |                       |   | 6.28 |   |   |   | 8,662 |   |   |   | 6.49 |   |   |   | 5,085 |   |   |   | 4.97 |   |   |   | 9,227 |   |   |   | 7.31 |   |   |   | 9,369 |   |   |   | 5.34 |   |   |   | 33,386 |   |   |   | 6.16 |   |
| 2013                |   |                   | 3,367   |   |                       |   | 5.76 |   |   |   | 31,443 |   |   |   | 5.84 |   |   |   | 1,044 |   |   |   | 3.90 |   |   |   | 11,467 |   |   |   | 6.83 |   |   |   | 8,963 |   |   |   | 5.91 |   |   |   | 56,284 |   |   |   | 6.01 |   |
| 2014 and 2015       |   |                   | 4,729   |   |                       |   | 5.92 |   |   |   | 59,509 |   |   |   | 6.13 |   |   |   | 6,084 |   |   |   | 5.73 |   |   |   | 26,230 |   |   |   | 6.53 |   |   |   | 14,116 |   |   |   | 5.52 |   |   |   | 110,668 |   |   |   | 6.12 |   |
| 2016 to 2017        |   |                   | 15,569  |   |                       |   | 5.50 |   |   |   | 8,092 |   |   |   | 6.45 |   |   |   | 300 |   |   |   | - |   |   |   | 15,644 |   |   |   | 7.64 |   |   |   | 1,125 |   |   |   | 6.34 |   |   |   | 40,730 |   |   |   | 6.49 |   |
| 2018 to 2032        |   |                   | 164,489 |   |                       |   | 4.99 |   |   |   | 59,867 |   |   |   | 6.13 |   |   |   | 4,555 |   |   |   | 5.79 |   |   |   | 153,387 |   |   |   | 6.59 |   |   |   | 3,740 |   |   |   | 6.04 |   |   |   | 386,038 |   |   |   | 5.82 |   |
| 2033 and following  |   |                   | 268,258 |   |                       |   | 5.18 |   |   |   | 3,801 |   |   |   | 7.55 |   |   |   | 1,035 |   |   |   | 6.00 |   |   |   | 199 |   |   |   | 5.92 |   |   |   | - |   |   |   | - |   |   |   | 273,293 |   |   |   | 5.22 |   |
| Total               |   | $                      | 458,019 |   |                       |   | 5.14 | % |   | $ | 199,517 |   |   |   | 6.13 | % |   | $ | 49,803 |   |   |   | 4.81 | % |   | $ | 227,785 |   |   |   | 6.71 | % |   | $ | 64,611 |   |   |   | 4.92 | % |   | $ | 999,735 |   |   |   | 5.66 | % |

----

| (1)  | Does not include mortgage loans held for sale. |
|-----------|------------------------------------------------|

| (2)  | Includes demand loans, loans having no stated maturity and overdraft loans. |
|-----------|-----------------------------------------------------------------------------|

----

----

----

----

----

|                                    |   | Year Ended December 31,      |    |
|-----------------------------------------|--------|------------------------------|---------|
|                                    |   | 2010                         |    |   | 2009 |   |   | 2008 |   |
|                                    |   |  (Dollars in thousands) |    |
| Originations by type:                   |   |                         |    |   |   |   |   |   |   |
| Adjustable rate:                        |   |                         |    |   |   |   |   |   |   |
| Real estate:                            |   |                         |    |   |   |   |   |   |   |
| One- to four-family                     |   | $                            | 26,059  |   |   | $ | 31,542 |   |   | $ | 33,083 |   |
| Commercial real estate                  |   |                         | 3,391   |   |   |   | 7,713 |   |   |   | 7,132 |   |
| Construction and development            |   |                         | 336     |   |   |   | 1,138 |   |   |   | 5,617 |   |
| Non-real-estate:                        |   |                         |    |   |   |   |   |   |   |   |   |   |
| Consumer                                |   |                         | 754     |   |   |   | 317 |   |   |   | 43 |   |
| Commercial business                     |   |                         | 620     |   |   |   | 1,322 |   |   |   | 2,061 |   |
| Total adjustable-rate                   |   |                         | 31,160  |   |   |   | 42,088 |   |   |   | 49,259 |   |
| Fixed rate:                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Real estate:                            |   |                         |    |   |   |   |   |   |   |   |   |   |
| One- to four-family                     |   |                         | 157,283 |   |   |   | 218,546 |   |   |   | 78,040 |   |
| Commercial real estate                  |   |                         | 11,620  |   |   |   | 16,536 |   |   |   | 12,737 |   |
| Construction and development            |   |                         | 1,940   |   |   |   | 7,382 |   |   |   | 9,171 |   |
| Non-real-estate:                        |   |                         |    |   |   |   |   |   |   |   |   |   |
| Consumer                                |   |                         | 12,569  |   |   |   | 39,745 |   |   |   | 42,465 |   |
| Commercial business                     |   |                         | 6,380   |   |   |   | 9,447 |   |   |   | 5,409 |   |
| Total fixed-rate                        |   |                         | 189,792 |   |   |   | 293,100 |   |   |   | 149,874 |   |
| Total loans originated                  |   |                         | 220,952 |   |   |   | 335,188 |   |   |   | 199,133 |   |
|                                    |   |                         |    |   |   |   |   |   |   |   |   |   |
| Purchases:(1)                           |   |                         |    |   |   |   |   |   |   |   |   |   |
| Real estate:                            |   |                         |    |   |   |   |   |   |   |   |   |   |
| One- to four-family                     |   |                         | — |   |   |   | — |   |   |   | 213,441 |   |
| Commercial                              |   |                         | — |   |   |   | — |   |   |   | 93,479 |   |
| construction or development             |   |                         | — |   |   |   | — |   |   |   | 1,770 |   |
| Non-real-estate:                        |   |                         |    |   |   |   |   |   |   |   |   |   |
| Consumer                                |   |                         | — |   |   |   | — |   |   |   | 9,677 |   |
| Commercial business                     |   |                         | — |   |   |   | — |   |   |   | 75,496 |   |
| Total loans purchased                   |   |                         | — |   |   |   | — |   |   |   | 393,863 | (2) |
|                                    |   |                         |    |   |   |   |   |   |   |   |   |   |
| Sales and Repayments:                   |   |                         |    |   |   |   |   |   |   |   |   |   |
| Sales:                                  |   |                         |    |   |   |   |   |   |   |   |   |   |
| Real estate:                            |   |                         |    |   |   |   |   |   |   |   |   |   |
| One- to four-family                     |   |                         | 82,796  |   |   |   | 160,019 |   |   |   | 92,914 |   |
| Total loans sold                        |   |                         | 82,796  |   |   |   | 160,019 |   |   |   | 92,914 |   |
| Principal repayments                    |   |                         | 217,549 |   |   |   | 231,254 |   |   |   | 179,187 |   |
| Total reductions                        |   |                         | 300,345 |   |   |   | 391,273 |   |   |   | 272,101 |   |
| Increase (decrease) in other items, net |   |                         | (1,400  | ) |   |   | 2,409 |   |   |   | (3,124 | ) |
| Net increase (decrease)                 |   | $                            | (80,793 | ) |   | $ | (53,676 | ) |   | $ | 317,771 |   |

----

| (1) | Does not include market value adjustment for loans related to acquisitions of branches from other financial institutions. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes $385.3 million of loans acquired as part of the Company’s acquisition of MFB. |
|-----|----------------------------------------------------------------------------------------------|

----

|                         |   | Loans Delinquent For:  |   |
|------------------------------|--------|------------------------|--------|
|                         |   | 60-89 Days             |   |
|                         |   | Number                 |   |   | Amount |   |   | Percent |   |
|                         |   | (Dollars in thousands) |   |
| Real Estate:                 |   |                   |   |   |   |   |   |   |   |
| One- to four-family          |   |                   | 55     |   |   | $ | 4,367 |   |   |   | 0.93 | % |
| Commercial                   |   |                   | 3      |   |   |   | 139 |   |   |   | 0.07 |   |
| Construction and development |   |                   | 1      |   |   |   | 205 |   |   |   | 0.41 |   |
| Consumer                     |   |                   | 118    |   |   |   | 2,845 |   |   |   | 1.25 |   |
| Commercial business          |   |                   | 5      |   |   |   | 173 |   |   |   | 0.27 |   |
|                         |   |                   |   |   |   |   |   |   |   |   |   |   |
| Total                        |   |                   | 182    |   |   | $ | 7,729 |   |   |   | 0.77 | % |

----

|                                       |   | December 31,           |   |
|--------------------------------------------|--------|------------------------|--------|
|                                       |   | 2010                   |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                       |   | (Dollars in thousands) |   |
| Non-accruing loans:                        |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family                        |   | $                      | 12,012 |   |   | $ | 14,617 |   |   | $ | 7,917 |   |   | $ | 2,997 |   |   | $ | 2,762 |   |
| Commercial real estate                     |   |                   | 6,040  |   |   |   | 8,986 |   |   |   | 7,723 |   |   |   | 2,656 |   |   |   | 356 |   |
| Construction and development               |   |                   | 7,399  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Consumer                                   |   |                   | 3,713  |   |   |   | 3,610 |   |   |   | 1,851 |   |   |   | 1,294 |   |   |   | 983 |   |
| Commercial business                        |   |                   | 1,019  |   |   |   | 1,873 |   |   |   | 2,507 |   |   |   | 2,002 |   |   |   | 1,468 |   |
| Total                                      |   |                   | 30,183 |   |   |   | 29,086 |   |   |   | 19,998 |   |   |   | 8,949 |   |   |   | 5,569 |   |
|                                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accruing loans delinquent 90 days or more: |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family                        |   |                   | 1,449  |   |   |   | 1,861 |   |   |   | 1,284 |   |   |   | - |   |   |   | - |   |
| Commercial real estate                     |   |                   | -      |   |   |   | - |   |   |   | 189 |   |   |   | 1,421 |   |   |   | - |   |
| Construction and development               |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Consumer                                   |   |                   | 97     |   |   |   | 73 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial business                        |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                      |   |                   | 1,546  |   |   |   | 1,934 |   |   |   | 1,473 |   |   |   | 1,421 |   |   |   | - |   |
|                                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Restructured loans                         |   |                   | 7,100  |   |   |   | 1,563 |   |   |   | 293 |   |   |   | 107 |   |   |   | 111 |   |
| Total nonperforming loans                  |   |                   | 38,829 |   |   |   | 32,583 |   |   |   | 21,764 |   |   |   | 10,477 |   |   |   | 5,680 |   |
|                                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreclosed assets:                         |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family                        |   |                   | 2,645  |   |   |   | 3,483 |   |   |   | 1,786 |   |   |   | 927 |   |   |   | 947 |   |
| Commercial real estate                     |   |                   | 2,288  |   |   |   | 1,941 |   |   |   | 1,193 |   |   |   | 437 |   |   |   | 326 |   |
| Construction and development               |   |                   | 97     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Consumer                                   |   |                   | 1,078  |   |   |   | 1,927 |   |   |   | 1,861 |   |   |   | 1,137 |   |   |   | 1,322 |   |
| Commercial business                        |   |                   | 19     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                      |   |                   | 6,127  |   |   |   | 7,351 |   |   |   | 4,840 |   |   |   | 2,501 |   |   |   | 2,595 |   |
|                                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing investments                 |   |                   | -      |   |   |   | 100 |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total non-performing assets                |   | $                      | 52,056 |   |   | $ | 40,034 |   |   | $ | 26,604 |   |   | $ | 12,978 |   |   | $ | 8,275 |   |
| Total as a percentage of total assets      |   |                   | 3.20   | % |   |   | 2.86 | % |   |   | 1.92 | % |   |   | 1.35 | % |   |   | 0.86 | % |

----

----

----

|                                                        |   | Year Ended December 31, |   |
|-------------------------------------------------------------|--------|-------------------------|--------|
|                                                        |   | 2010                    |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                        |   | (Dollars in thousands)  |   |
| Balance at beginning of period                              |   | $                       | 16,414 |   |   | $ | 15,107 |   |   | $ | 8,352 |   |   | $ | 8,156 |   |   | $ | 8,100 |   |
|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs:                                                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family                                         |   |                    | 3,345  |   |   |   | 1,728 |   |   |   | 480 |   |   |   | 645 |   |   |   | 526 |   |
| Commercial real estate                                      |   |                    | 1,343  |   |   |   | 1,291 |   |   |   | 1,548 |   |   |   | 44 |   |   |   | 102 |   |
| Construction and development                                |   |                    | 200    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Consumer                                                    |   |                    | 3,195  |   |   |   | 3,154 |   |   |   | 2,174 |   |   |   | 1,731 |   |   |   | 1,288 |   |
| Commercial business                                         |   |                    | 209    |   |   |   | 83 |   |   |   | 230 |   |   |   | 303 |   |   |   | 387 |   |
|                                                        |   |                    | 8,292  |   |   |   | 6,256 |   |   |   | 4,432 |   |   |   | 2,723 |   |   |   | 2,303 |   |
|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recoveries:                                                 |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family                                         |   |                    | 298    |   |   |   | 110 |   |   |   | 42 |   |   |   | 121 |   |   |   | 81 |   |
| Commercial real estate                                      |   |                    | 68     |   |   |   | 184 |   |   |   | 558 |   |   |   | - |   |   |   | - |   |
| Construction and development                                |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Consumer                                                    |   |                    | 809    |   |   |   | 767 |   |   |   | 556 |   |   |   | 357 |   |   |   | 199 |   |
| Commercial business                                         |   |                    | 25     |   |   |   | 2 |   |   |   | 57 |   |   |   | 201 |   |   |   | 11 |   |
|                                                        |   |                    | 1,200  |   |   |   | 1,063 |   |   |   | 1,213 |   |   |   | 679 |   |   |   | 291 |   |
|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net charge-offs                                             |   |                    | 7,092  |   |   |   | 5,193 |   |   |   | 3,219 |   |   |   | 2,044 |   |   |   | 2,012 |   |
| Amount acquired in acquisitions                             |   |                    | -      |   |   |   | - |   |   |   | 2,954 |   |   |   | - |   |   |   | - |   |
| Provisions charged to operations                            |   |                    | 7,050  |   |   |   | 6,500 |   |   |   | 7,020 |   |   |   | 2,240 |   |   |   | 2,068 |   |
| Balance at end of period                                    |   | $                       | 16,372 |   |   | $ | 16,414 |   |   | $ | 15,107 |   |   | $ | 8,352 |   |   | $ | 8,156 |   |
|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of net charge-offs during the period to average loans |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| outstanding during the period                               |   |                    | 0.69   | % |   |   | 0.47 | % |   |   | 0.34 | % |   |   | 0.25 | % |   |   | 0.24 | % |
|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance as a percentage of non-performing loans           |   |                    | 42.16  | % |   |   | 50.38 | % |   |   | 69.41 | % |   |   | 79.72 | % |   |   | 143.59 | % |
|                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance as a percentage of total loans (end of period)    |   |                    | 1.64   | % |   |   | 1.53 | % |   |   | 1.34 | % |   |   | 1.03 | % |   |   | 1.00 | % |

----

----

| Deal                            |   | Class                  |   |   | Original Par |   |   | Book Value |   |   | Fair Value |   |   | Unrealized Loss |   |   | RealizedLosses 2010 |   |   | Lowest Rating |   |   | Number of Banks/Insurance Companies Currently Performing |   |   | Actual Deferrals/Defaults (as % of original collateral) |   |   | Total Projected Defaults (as a % of performing collateral)a |   |   | Excess Subordination (after taking into account best estimate of future deferrals/defaults)b |   |
|---------------------------------|--------|------------------------|--------|--------|--------------|--------|--------|------------|--------|--------|------------|--------|--------|-----------------|--------|--------|---------------------|--------|--------|---------------|--------|--------|----------------------------------------------------------|--------|--------|---------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------|--------|
|                            |   | (Dollars in thousands) |   |
| Alesco Preferred Funding IX     |   |                   | A2A    |   |         | $      | 1,000  |       |   | $      | 896        |   |   | $               | 425    |   |                | $      | (471   | ) $           |   |   | -                                                        |   |   | CCC-                                                    |   |   |                                                        | 42     |   |                                                                                         |   | 31.79 | % |   |   | 24.05 | % |   |   | 39.42 | % |
| Alesco Preferred Funding XVII   |   |                   | C1     |   |         |   | 1,000  |       |   |   | 100        |   |   |            | 4      |   |                |   | (96    | )             |   |   | (20                                                      | )      |   | C                                                       |   |   |                                                        | 34     |   |                                                                                         |   | 38.75 | % |   |   | 31.32 | % |   |   | 0.00 | % |
| Preferred Term Securities XIII  |   |                   | B1     |   |         |   | 1,000  |       |   |   | 833        |   |   |            | 228    |   |                |   | (605   | )             |   |   | -                                                        |   |   | Ca                                                      |   |   |                                                        | 47     |   |                                                                                         |   | 29.76 | % |   |   | 25.00 | % |   |   | 0.00 | % |
| Preferred Term Securities XVIII |   |                   | C      |   |         |   | 1,000  |       |   |   | 905        |   |   |            | 278    |   |                |   | (627   | )             |   |   | (117                                                     | )      |   | Ca                                                      |   |   |                                                        | 53     |   |                                                                                         |   | 22.81 | % |   |   | 15.24 | % |   |   | 3.61 | % |
| Preferred Term Securities XXVII |   |                   | C1     |   |         |   | 1,000  |       |   |   | 700        |   |   |            | 176    |   |                |   | (524   | )             |   |   | (276                                                     | )      |   | C                                                       |   |   |                                                        | 34     |   |                                                                                         |   | 27.07 | % |   |   | 25.86 | % |   |   | 1.59 | % |
| U.S. Capital Funding I          |   |                   | B1     |   |         |   | 3,000  |       |   |   | 2,891      |   |   |            | 1,269  |   |                |   | (1,622 | )             |   |   | -                                                        |   |   | Caa1                                                    |   |   |                                                        | 35     |   |                                                                                         |   | 12.92 | % |   |   | 14.48 | % |   |   | 3.43 | % |
| U.S. Capital Funding III        |   |                   | B1     |   |         |   | 1,000  |       |   |   | 500        |   |   |            | 263    |   |                |   | (237   | )             |   |   | -                                                        |   |   | C                                                       |   |   |                                                        | 31     |   |                                                                                         |   | 26.22 | % |   |   | 19.29 | % |   |   | 0.00 | % |
| U.S. Capital Funding V          |   |                   | B1     |   |         |   | 1,300  |       |   |   | 63         |   |   |            | 2      |   |                |   | (61    | )             |   |   | (4                                                       | )      |   | C                                                       |   |   |                                                        | 23     |   |                                                                                         |   | 54.33 | % |   |   | 38.43 | % |   |   | 0.00 | % |
|                            |   |                   |   |   |         |   |   |       |   |   |       |   |   |            |   |   |                |   |   |          |   |   |                                                     |   |   |                                                    |   |   |                                                        |   |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                           |   |                   |   |   |         | $      | 10,300 |       |   | $      | 6,888      |   |   | $               | 2,645  |   |                | $      | (4,243 | )             |   | $      | (417                                                     | )      |   |                                                    |   |   |                                                        |   |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (a)  | A 10% recovey is applied to all projected defaults.  A 15% recovery is applied to all projected insurance defaults.  No recovery is applied to current defaults. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)  | Excess subordination represents the additional defaults in excess of both current and projected defaults that the CDO can absorb before the bond experiences any credit impairment. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Detailed credit and structural evaluation of each piece of collateral in the trust preferred securities; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | Collateral performance projections for each piece of collateral in the trust preferred security; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | Terms of the trust preferred structure, as laid out in the indenture; and |
|--------|--------|---------------------------------------------------------------------------|

|   | · | Discounted cash flow modeling. |
|--------|--------|--------------------------------|

----

|                                                 |   | For the Year Ended December 31, |   |
|------------------------------------------------------|--------|---------------------------------|--------|
|                                                 |   | 2010                            |   |   | 2009 |   |   | 2008 |   |
|                                                 |   | (Dollars in thousands)          |   |
|                                                 |   |                            |   |
| Investments in Pedcor low income housing projects    |   | $                               | 3,624  |   |   | $ | 4,161 |   |   | $ | 4,561 |   |
|                                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Equity in income (losses), net of income tax effect  |   | $                               | (337   | ) |   | $ | 71 |   |   | $ | (104 | ) |
| Tax credit                                           |   |                            | 592    |   |   |   | 874 |   |   |   | 1,214 |   |
| Increase in after-tax income from Pedcor Investments |   | $                               | 255    |   |   | $ | 945 |   |   | $ | 1,110 |   |

|                                         |   | December 31,           |    |
|----------------------------------------------|--------|------------------------|---------|
|                                         |   | 2010                   |    |   | 2009 |   |   | 2008 |   |
|                                         |   | Amortized Cost         |    |   | Fair Value |   |   | Amortized Cost |   |   | Fair Value |   |   | Amortized Cost |   |   | Fair Value |   |
|                                         |   | (Dollars in thousands) |    |
| Investment securities available-for-sale:    |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mutual funds                                 |   | $                      | 1,723   |   |   | $ | 1,702 |   |   | $ | 1,685 |   |   | $ | 1,643 |   |   | $ | 1,635 |   |   | $ | 1,497 |   |
| Government sponsored entities                |   |                   | 7,941   |   |   |   | 7,837 |   |   |   | 158 |   |   |   | 157 |   |   |   | 570 |   |   |   | 572 |   |
| Mortgage-backed securities                   |   |                   | 119,017 |   |   |   | 118,275 |   |   |   | 29,175 |   |   |   | 29,890 |   |   |   | 14,771 |   |   |   | 15,163 |   |
| Collateralized mortgage obligations          |   |                   | 112,615 |   |   |   | 112,224 |   |   |   | 85,726 |   |   |   | 87,029 |   |   |   | 43,821 |   |   |   | 43,639 |   |
| Corporate obligations                        |   |                   | 6,888   |   |   |   | 2,645 |   |   |   | 7,321 |   |   |   | 2,539 |   |   |   | 18,797 |   |   |   | 15,527 |   |
| Municipal obligations                        |   |                   | 2,460   |   |   |   | 2,482 |   |   |   | 9,313 |   |   |   | 9,656 |   |   |   | 857 |   |   |   | 857 |   |
| Total investment securities held for sale    |   |                   | 250,644 |   |   |   | 245,165 |   |   |   | 133,378 |   |   |   | 130,914 |   |   |   | 80,451 |   |   |   | 77,255 |   |
|                                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities held to maturity:      |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities                   |   |                   | -       |   |   |   | - |   |   |   | 4,619 |   |   |   | 3,275 |   |   |   | 5,498 |   |   |   | 4,983 |   |
| Collateralized mortgage obligations          |   |                   | -       |   |   |   | - |   |   |   | 3,028 |   |   |   | 2,554 |   |   |   | 4,178 |   |   |   | 3,545 |   |
| Government sponsored entities                |   |                   | -       |   |   |   | - |   |   |   | 500 |   |   |   | 504 |   |   |   | - |   |   |   | - |   |
| Total investment securities held to maturity |   |                   |    |   |   |   |   |   |   |   | 8,147 |   |   |   | 6,333 |   |   |   | 9,676 |   |   |   | 8,528 |   |
|                                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment in limited partnerships           |   |                   | 3,624   |   |   |   | N/A |   |   |   | 4,161 |   |   |   | N/A |   |   |   | 4,561 |   |   |   | N/A |   |
| Investment in insurance company              |   |                   | -       |   |   |   | N/A |   |   |   | - |   |   |   | N/A |   |   |   | 590 |   |   |   | N/A |   |
| Federal Home Loan Bank stock                 |   |                   | 16,682  |   |   |   | N/A |   |   |   | 18,632 |   |   |   | N/A |   |   |   | 18,632 |   |   |   | N/A |   |
| Total investments                            |   | $                      | 270,950 |   |   | $ | 245,165 |   |   | $ | 164,318 |   |   | $ | 137,247 |   |   | $ | 113,910 |   |   | $ | 85,783 |   |

----

|                          |   | Due in                 |   |
|-------------------------------|--------|------------------------|--------|
|                          |   | Less Than 1 Year       |   |   | 1 to 5 Years |   |   | 5 to 10 Years |   |   | Over 10 Years |   |   | TotalInvestment Securities |   |
|                          |   | Amortized Cost         |   |   | Amortized Cost |   |   | Amortized Cost |   |   | Amortized Cost |   |   | Amortized Cost |   |   | Fair Value |   |
|                          |   | (Dollars in thousands) |   |
| Available-for-sale:           |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate obligations         |   | $                      | -      |   |   | $ | - |   |   | $ | - |   |   | $ | 6,888 |   |   | $ | 6,888 |   |   | $ | 2,646 |   |
| Government sponsored entities |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | 10,385 |   |   |   | 10,385 |   |   |   | 10,318 |   |
| Small business administration |   |                   | -      |   |   |   | 7 |   |   |   | 9 |   |   |   | - |   |   |   | 16 |   |   |   | 16 |   |
| Mutual funds                  |   |                   | 1,723  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,723 |   |   |   | 1,702 |   |
| Mortgage-backed securities    |   |                   | -      |   |   |   | 472 |   |   |   | 554 |   |   |   | 230,606 |   |   |   | 231,632 |   |   |   | 230,499 |   |
|                          |   | $                      | 1,723  |   |   | $ | 479 |   |   | $ | 563 |   |   | $ | 247,879 |   |   | $ | 250,644 |   |   | $ | 245,181 |   |
|                          |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average yield        |   |                   | 0.17   | % |   |   | 5.01 | % |   |   | 4.62 | % |   |   | 3.21 | % |   |   | 3.21 | % |   |   |   |   |

----

|                                     |   |   | December 31,           |      |
|------------------------------------------|--------|--------|------------------------|-----------|
|                                     |   |   | 2010                   |      |   | 2009 |   |   | 2008 |   |
|                                     |   |   | Amount                 |      |   | Percent of Total |   |   | Amount |   |   | Percent of Total |   |   | Amount(1) |   |   | Percent of Total |   |
|                                     |   |   | (Dollars in thousands) |      |
| Transactions and Savings Deposits:       |   |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest bearing accounts             |   |   | $                      | 113,455   |   |   |   | 10.12 | % |   | $ | 98,025 |   |   |   | 9.38 | % |   | $ | 93,393 |   |   |   | 9.70 | % |
| Savings accounts                         |   |   |                   | 88,687    |   |   |   | 7.91 |   |   |   | 84,553 |   |   |   | 8.09 |   |   |   | 79,111 |   |   |   | 8.22 |   |
| Interest-bearing NOW and demand accounts |   |   |                   | 179,504   |   |   |   | 16.00 |   |   |   | 154,431 |   |   |   | 14.77 |   |   |   | 156,787 |   |   |   | 16.29 |   |
| Money market accounts                    |   |   |                   | 67,987    |   |   |   | 6.06 |   |   |   | 60,479 |   |   |   | 5.79 |   |   |   | 47,584 |   |   |   | 4.94 |   |
| Total non-certificates                   |   |   |                   | 449,633   |   |   |   | 40.09 |   |   |   | 397,488 |   |   |   | 38.03 |   |   |   | 376,875 |   |   |   | 39.15 |   |
|                                     |   |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificates:                            |   |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     0.00 -1.99%           |   |   |                   | 285,657   |   |   |   | 25.47 |   |   |   | 188,995 |   |   |   | 18.08 |   |   |   | 55,064 |   |   |   | 5.72 |   |
|     2.00 -3.99%           |   |   |                   | 313,762   |   |   |   | 27.98 |   |   |   | 355,758 |   |   |   | 34.04 |   |   |   | 359,899 |   |   |   | 37.39 |   |
|     4.00 -5.99%           |   |   |                   | 72,452    |   |   |   | 6.46 |   |   |   | 102,894 |   |   |   | 9.84 |   |   |   | 170,611 |   |   |   | 17.73 |   |
|     6.00 -7.99%           |   |   |                   | 65        |   |   |   | 0.01 |   |   |   | 61 |   |   |   | 0.01 |   |   |   | 65 |   |   |   | 0.01 |   |
|     8.00 -9.99%           |   |   |                   | -         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| 10.00% and over                          |   |   |                   | -         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total certificates                       |   |   |                   | 671,936   |   |   |   | 59.91 |   |   |   | 647,708 |   |   |   | 61.97 |   |   |   | 585,639 |   |   |   | 60.85 |   |
| Total deposits                           |   |   | $                      | 1,121,569 |   |   |   | 100.00 | % |   | $ | 1,045,196 |   |   |   | 100.00 | % |   | $ | 962,514 |   |   |   | 100.00 | % |

----

|                                             |   | 1.00- 1.99%            |    |   | 2.00- 3.99% |   |    | 4.00- 5.99% |   |   | 6.00-7.99% |   |   | Total  |   |   | Percent of Total |   |
|--------------------------------------------------|--------|------------------------|---------|--------|-------------|--------|---------|-------------|--------|--------|------------|--------|--------|--------|--------|--------|------------------|--------|
|                                             |   | (Dollars in thousands) |    |
| Certificate accounts maturing in quarter ending: |   |                   |    |   |        |   |    |        |   |   |       |   |   |   |   |   |             |   |   |   |   |   |
| March 31, 2011                                   |   | $                      | 72,389  |   |        | $      | 16,169  |        |   | $      | 1,307      |   |   | $      | -      |   |             | $      | 89,865 |   |   |   | 13.37 | % |
| June 30, 2011                                    |   |                   | 63,335  |   |        |   | 53,009  |        |   |   | 2,114      |   |   |   | -      |   |             |   | 118,458 |   |   |   | 17.63 |   |
| September 30, 2011                               |   |                   | 51,964  |   |        |   | 47,373  |        |   |   | 2,782      |   |   |   | -      |   |             |   | 102,119 |   |   |   | 15.20 |   |
| December 31, 2011                                |   |                   | 25,995  |   |        |   | 22,108  |        |   |   | 5,442      |   |   |   | 65     |   |             |   | 53,610 |   |   |   | 7.98 |   |
| March 31, 2012                                   |   |                   | 29,464  |   |        |   | 13,098  |        |   |   | 9,064      |   |   |   | -      |   |             |   | 51,626 |   |   |   | 7.68 |   |
| June 30, 2012                                    |   |                   | 18,265  |   |        |   | 6,582   |        |   |   | 9,022      |   |   |   | -      |   |             |   | 33,869 |   |   |   | 5.04 |   |
| September 30, 2012                               |   |                   | 1,453   |   |        |   | 1,645   |        |   |   | 5,106      |   |   |   | -      |   |             |   | 8,204 |   |   |   | 1.22 |   |
| December 31, 2012                                |   |                   | 1,910   |   |        |   | 949     |        |   |   | 2,474      |   |   |   | -      |   |             |   | 5,333 |   |   |   | 0.79 |   |
| March 31, 2013                                   |   |                   | 1,308   |   |        |   | 12,079  |        |   |   | 1,649      |   |   |   | -      |   |             |   | 15,036 |   |   |   | 2.24 |   |
| June 30, 2013                                    |   |                   | 3,092   |   |        |   | 9,469   |        |   |   | 948        |   |   |   | -      |   |             |   | 13,509 |   |   |   | 2.01 |   |
| September 30, 2013                               |   |                   | 4,162   |   |        |   | 17,930  |        |   |   | 1,185      |   |   |   | -      |   |             |   | 23,277 |   |   |   | 3.46 |   |
| December 31, 2013                                |   |                   | 7,073   |   |        |   | 14,021  |        |   |   | 28,036     |   |   |   | -      |   |             |   | 49,130 |   |   |   | 7.31 |   |
| Thereafter                                       |   |                   | 5,247   |   |        |   | 99,330  |        |   |   | 3,323      |   |   |   | -      |   |             |   | 107,900 |   |   |   | 16.06 |   |
| Total                                            |   | $                      | 285,657 |   |        | $      | 313,762 |        |   | $      | 72,452     |   |   | $      | 65     |   |             | $      | 671,936 |   |   |   | 100.00 | % |
|                                             |   |                   |    |   |        |   |    |        |   |   |       |   |   |   |   |   |             |   |   |   |   |   |   |   |
| Percent of total                                 |   |                   | 42.51   | %      |        |   | 46.70   | %           |   |   | 10.78      | %      |   |   | 0.01   | %      |             |   | 100.00 | % |   |   |   |   |

----

|                                        |   | Maturity               |   |
|---------------------------------------------|--------|------------------------|--------|
|                                        |   | 3 Months or Less       |   |   | Over 3 to 6 Months |   |   | Over 6 to 12 Months |   |   | Over 12 Months |   |   | Total |   |
|                                        |   | (Dollars in thousands) |   |
|                                        |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificates of deposit less than $100,000  |   | $                      | 60,161 |   |   | $ | 83,322 |   |   | $ | 103,731 |   |   | $ | 195,332 |   |   | $ | 442,546 |   |
| Certificates of deposit of $100,000 or more |   |                   | 26,333 |   |   |   | 34,506 |   |   |   | 51,788 |   |   |   | 112,553 |   |   |   | 225,180 |   |
| Public funds(1)                             |   |                   | 3,371  |   |   |   | 630 |   |   |   | 209 |   |   |   | - |   |   |   | 4,210 |   |
|                                        |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total certificates of deposit               |   | $                      | 89,865 |   |   | $ | 118,458 |   |   | $ | 155,728 |   |   | $ | 307,885 |   |   | $ | 671,936 |   |

----

----

|             |   | Year Ended December 31, |    |
|------------------|--------|-------------------------|---------|
|             |   | 2010                    |    |   | 2009 |   |   | 2008 |   |
|             |   | (Dollars in thousands)  |    |
| Maximum Balance: |   |                    |    |   |   |   |   |   |   |
| FHLB advances    |   | $                       | 212,111 |   |   | $ | 250,566 |   |   | $ | 300,147 |   |
| Notes payable    |   |                    | 226     |   |   |   | 231 |   |   |   | 1,123 |   |
| Other borrowings |   |                    | 13,895  |   |   |   | 15,359 |   |   |   | 15,967 |   |
|             |   |                    |    |   |   |   |   |   |   |   |   |   |
| Average Balance: |   |                    |    |   |   |   |   |   |   |   |   |   |
| FHLB advances    |   | $                       | 175,601 |   |   | $ | 221,896 |   |   | $ | 224,822 |   |
| Notes payable    |   |                    | 17      |   |   |   | 228 |   |   |   | 718 |   |
| Other borrowings |   |                    | 13,586  |   |   |   | 15,076 |   |   |   | 7,967 |   |

|                                                  |   | December 31,           |    |
|-------------------------------------------------------|--------|------------------------|---------|
|                                                  |   | 2010                   |    |   | 2009 |   |   | 2008 |   |
|                                                  |   | (Dollars in thousands) |    |
|                                                  |   |                   |    |
| FHLB advances                                         |   | $                      | 128,537 |   |   | $ | 197,960 |   |   | $ | 263,113 |   |
| Notes payable                                         |   |                   | -       |   |   |   | 226 |   |   |   | 647 |   |
| Other borrowings                                      |   |                   | 13,167  |   |   |   | 13,888 |   |   |   | 15,345 |   |
|                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |
| Total borrowings                                      |   | $                      | 141,704 |   |   | $ | 212,074 |   |   | $ | 279,105 |   |
|                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |
| Weighted average interest rate of FHLB advances       |   |                   | 3.08    | % |   |   | 4.00 | % |   |   | 4.27 | % |
|                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |
| Weighted average interest rate of notes payable(1)    |   |                   | -       |   |   |   | 0.00 | % |   |   | 0.00 | % |
|                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |
| Weighted average interest rate of other borrowings(2) |   |                   | 5.68    | % |   |   | 5.99 | % |   |   | 5.28 | % |

----

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| Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
|---------|--------------------------------------------------------------------------------------------------------------------|

|                            |   | Stock Price |   |   | Dividends per |   |
|---------------------------------|--------|-------------|--------|--------|---------------|--------|
| 2010 Quarters:                  |   | High        |   |   | Low           |   |   | Share |   |
| First Quarter (ended 03/31/10)  |   | $           | 6.90   |   |          | $      | 5.84 |   |   | $ | 0.06 |   |
| Second Quarter (ended 06/30/10) |   | $           | 8.99   |   |          | $      | 6.50 |   |   | $ | 0.06 |   |
| Third Quarter (ended 09/30/10)  |   | $           | 7.69   |   |          | $      | 6.20 |   |   | $ | 0.06 |   |
| Fourth Quarter (ended 12/31/10) |   | $           | 9.80   |   |          | $      | 7.50 |   |   | $ | 0.06 |   |

|                            |   | Stock Price |   |   | Dividends per |   |
|---------------------------------|--------|-------------|--------|--------|---------------|--------|
| 2009 Quarters:                  |   | High        |   |   | Low           |   |   | Share |   |
| First Quarter (ended 03/31/09)  |   | $           | 7.40   |   |          | $      | 3.51 |   |   | $ | 0.12 |   |
| Second Quarter (ended 06/30/09) |   | $           | 10.00  |   |          | $      | 5.05 |   |   | $ | 0.12 |   |
| Third Quarter (ended 09/30/09)  |   | $           | 8.50   |   |          | $      | 6.60 |   |   | $ | 0.12 |   |
| Fourth Quarter (ended 12/31/09) |   | $           | 7.83   |   |          | $      | 5.57 |   |   | $ | 0.06 |   |

----

|                                                   |   | At or For the Year Ended December 31, |      |
|--------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                   |   | 2010                                  |      |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                   |   | (Dollars in thousands)                |      |
| Selected Financial Condition Data                      |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                           |   | $                                     | 1,406,902 |   |   | $ | 1,400,885 |   |   | $ | 1,388,827 |   |   | $ | 962,517 |   |   | $ | 960,842 |   |
| Cash and cash equivalents                              |   |                                  | 26,821    |   |   |   | 46,341 |   |   |   | 39,703 |   |   |   | 23,648 |   |   |   | 24,915 |   |
| Loans, net                                             |   |                                  | 978,901   |   |   |   | 1,059,694 |   |   |   | 1,113,132 |   |   |   | 802,436 |   |   |   | 805,625 |   |
| Investment securities:                                 |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale, at fair value                      |   |                                  | 245,165   |   |   |   | 130,914 |   |   |   | 77,255 |   |   |   | 43,592 |   |   |   | 41,070 |   |
| Held to maturity                                       |   |                                  | -         |   |   |   | 8,147 |   |   |   | 9,676 |   |   |   | - |   |   |   | - |   |
| Total deposits                                         |   |                                  | 1,121,569 |   |   |   | 1,045,196 |   |   |   | 962,514 |   |   |   | 666,407 |   |   |   | 703,359 |   |
| Total borrowings                                       |   |                                  | 141,705   |   |   |   | 212,074 |   |   |   | 279,104 |   |   |   | 196,638 |   |   |   | 158,852 |   |
| Total stockholders’ equity                       |   |                                  | 131,140   |   |   |   | 129,727 |   |   |   | 130,515 |   |   |   | 87,014 |   |   |   | 87,264 |   |
|                                                   |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected Operations Data                               |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest income                                  |   |                                  | 67,398    |   |   |   | 71,852 |   |   |   | 65,179 |   |   |   | 56,374 |   |   |   | 56,119 |   |
| Total interest expense                                 |   |                                  | 25,195    |   |   |   | 30,624 |   |   |   | 31,639 |   |   |   | 32,227 |   |   |   | 29,890 |   |
| Net interest income                                    |   |                                  | 42,203    |   |   |   | 41,228 |   |   |   | 33,540 |   |   |   | 24,147 |   |   |   | 26,229 |   |
| Provision for loan losses                              |   |                                  | 7,050     |   |   |   | 6,500 |   |   |   | 7,020 |   |   |   | 2,240 |   |   |   | 2,068 |   |
| Net interest income after provision for loan losses    |   |                                  | 35,153    |   |   |   | 34,728 |   |   |   | 26,520 |   |   |   | 21,907 |   |   |   | 24,161 |   |
| Service fee income                                     |   |                                  | 7,229     |   |   |   | 7,458 |   |   |   | 6,257 |   |   |   | 4,831 |   |   |   | 4,370 |   |
| Gain (loss) on sale of loans and investment securities |   |                                  | 2,222     |   |   |   | 3,132 |   |   |   | (927 | ) |   |   | 391 |   |   |   | (669 | ) |
|                                                   |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other-than-temporary impairment, securities            |   |                                  | (841      | ) |   |   | (2,555 | ) |   |   | (1,350 | ) |   |   | - |   |   |   | - |   |
| Other non-interest income (loss)                       |   |                                  | 4,469     |   |   |   | 3,937 |   |   |   | 2,297 |   |   |   | 2,549 |   |   |   | 2,941 |   |
| Total non-interest income                              |   |                                  | 13,079    |   |   |   | 11,972 |   |   |   | 6,277 |   |   |   | 7,771 |   |   |   | 6,642 |   |
| Salaries and employee benefits                         |   |                                  | 21,078    |   |   |   | 23,047 |   |   |   | 19,118 |   |   |   | 14,759 |   |   |   | 14,617 |   |
| Other expenses                                         |   |                                  | 18,926    |   |   |   | 20,279 |   |   |   | 44,263 |   |   |   | 10,397 |   |   |   | 10,402 |   |
| Total non-interest expense                             |   |                                  | 40,004    |   |   |   | 43,326 |   |   |   | 63,381 |   |   |   | 25,156 |   |   |   | 25,019 |   |
| Income (loss) before taxes                             |   |                                  | 8,228     |   |   |   | 3,374 |   |   |   | (30,584 | ) |   |   | 4,522 |   |   |   | 5,784 |   |
| Income tax expense (benefit)                           |   |                                  | 1,676     |   |   |   | 211 |   |   |   | (8,485 | ) |   |   | 296 |   |   |   | 1,028 |   |
| Net income (loss)                                      |   |                                  | 6,552     |   |   |   | 3,163 |   |   |   | (22,099 | ) |   |   | 4,226 |   |   |   | 4,756 |   |
|                                                   |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock dividends and amortization             |   |                                  | 1,803     |   |   |   | 1,803 |   |   |   | 31 |   |   |   | - |   |   |   | - |   |
| Net income (loss) available to common stockholders     |   | $                                     | 4,749     |   |   | $ | 1,360 |   |   | $ | (22,130 | ) |   | $ | 4,226 |   |   | $ | 4,756 |   |

----

|                                                                               |   | At or For the Year Ended December 31, |      |
|------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                                               |   | 2010                                  |      |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Selected Financial Ratios and Other Financial Data:                                |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Performance Ratios:                                                                |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on average assets (ratio of net income to average total assets)             |   |                                  | 0.45      | % |   |   | 0.23 | % |   |   | -1.91 | % |   |   | 0.44 | % |   |   | 0.49 | % |
| Return on average tangible equity (ratio of net income to average tangible equity) |   |                                  | 4.96      | % |   |   | 1.49 | % |   |   | -28.04 | % |   |   | 5.86 | % |   |   | 6.43 | % |
| Interest rate spread information:                                                  |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average during the period                                                          |   |                                  | 2.97      | % |   |   | 2.98 | % |   |   | 3.01 | % |   |   | 2.50 | % |   |   | 2.70 | % |
| Net interest margin(1)                                                             |   |                                  | 3.19      | % |   |   | 3.22 | % |   |   | 3.22 | % |   |   | 2.79 | % |   |   | 2.96 | % |
| Ratio of operating expense to average total assets                                 |   |                                  | 2.76      | % |   |   | 3.17 | % |   |   | 5.49 | % |   |   | 2.64 | % |   |   | 2.57 | % |
| Ratio of average interest-earning assets to average interest-bearing liabilities   |   |                                  | 111.25    | % |   |   | 110.67 | % |   |   | 107.14 | % |   |   | 107.92 | % |   |   | 107.65 | % |
| Efficiency ratio(2)                                                                |   |                                  | 72.86     | % |   |   | 81.84 | % |   |   | 158.81 | % |   |   | 78.81 | % |   |   | 76.11 | % |
|                                                                               |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset Quality Ratios:(3)                                                           |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing assets to total assets                                              |   |                                  | 3.20      | % |   |   | 2.86 | % |   |   | 1.92 | % |   |   | 1.35 | % |   |   | 0.86 | % |
| Non-performing loans to total loans                                                |   |                                  | 3.90      | % |   |   | 3.03 | % |   |   | 1.93 | % |   |   | 1.29 | % |   |   | 0.70 | % |
| Allowance for loan losses to non-performing loans                                  |   |                                  | 42.16     | % |   |   | 50.38 | % |   |   | 69.41 | % |   |   | 79.72 | % |   |   | 143.59 | % |
| Allowance for loan losses to loans receivable, net                                 |   |                                  | 1.64      | % |   |   | 1.53 | % |   |   | 1.34 | % |   |   | 1.03 | % |   |   | 1.00 | % |
|                                                                               |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital Ratios:                                                                    |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity to total assets(3)                                                          |   |                                  | 9.32      | % |   |   | 9.27 | % |   |   | 9.40 | % |   |   | 9.04 | % |   |   | 9.08 | % |
| Average equity to average assets                                                   |   |                                  | 9.24      | % |   |   | 9.29 | % |   |   | 8.89 | % |   |   | 9.16 | % |   |   | 9.08 | % |
|                                                                               |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share and Per Share Data:                                                          |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average common shares outstanding:                                                 |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                              |   |                                  | 6,873,508 |   |   |   | 6,840,659 |   |   |   | 5,249,135 |   |   |   | 4,103,940 |   |   |   | 4,196,059 |   |
| Diluted                                                                            |   |                                  | 6,896,107 |   |   |   | 6,840,748 |   |   |   | 5,249,135 |   |   |   | 4,151,173 |   |   |   | 4,274,039 |   |
| Per share:                                                                         |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings available to common stockholders                                    |   | $                                     | 0.69      |   |   | $ | 0.20 |   |   | $ | (4.22 | ) |   | $ | 1.03 |   |   | $ | 1.13 |   |
| Diluted earnings available to common stockholders                                  |   | $                                     | 0.69      |   |   | $ | 0.20 |   |   | $ | (4.22 | ) |   | $ | 1.02 |   |   | $ | 1.11 |   |
| Dividends                                                                          |   | $                                     | 0.24      |   |   | $ | 0.42 |   |   | $ | 0.64 |   |   | $ | 0.60 |   |   | $ | 0.58 |   |
|                                                                               |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend payout ratio(4)                                                           |   |                                  | 34.78     | % |   |   | 210.00 | % |   |   | -15.20 | % |   |   | 58.25 | % |   |   | 52.25 | % |
|                                                                               |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Data:                                                                        |   |                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number of full-service offices                                                     |   |                                  | 33        |   |   |   | 33 |   |   |   | 33 |   |   |   | 21 |   |   |   | 21 |   |

----

----

----

----

----

----

----

|   | · | Continuing as a Diversified Lender.  We have been successful in diversifying our loan portfolio to reduce our reliance on any one type of loan.  From 1995 through 2000, approximately 36% of our loan portfolio consisted of loans other than one- to four-family real estate loans.  Since 2000 through the end of 2010, that percentage has increased to 53.6%. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Continuing as a Leading One- to Four-Family Lender.  We are one of the largest originators of one- to four-family residential loans in our market area.  During 2010, we originated $170.9 million of one- to four-family residential loans. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Continuing To Focus On Asset Quality.  Non-performing assets to total assets was 3.20% at December 31, 2010, an increase from 2.86% at December 31, 2009.  Our portfolio has increased due to strains on not only the local economy but in other parts of the US where the Company has purchased loans.  While the levels of non-performing assets are currently higher than we desire, we believe that our current underwriting standards will provide for a quality loan portfolio once economic activity and unemployment return to more normal levels. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Continuing Our Strong Capital Position.  As a result of our consistent operating profitability, we have historically maintained a strong capital position.  At December 31, 2010, our ratio of stockholders’ equity to total assets was 9.3%, which was consistent with that at December 31, 2009.  The Company also decreased risk-weighted assets by $80.6 million to $964.1 million at December 31, 2010, from $1.1 billion at December 31, 2009.  We suspended our origination of RV and boat lending in 2010 to increase our regulatory capital ratios as we continue to strengthen our capital position. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Decreasing Interest Rate Risk.  It has been MutualFirst’s strategic objective to change the repricing structure of its interest-earning assets from longer term to shorter term to better match the structure of our interest bearing liabilities and therefore reduce the impact interest rate changes have on our net interest income.  Strategies employed to accomplish this objective have been to increase the originations of variable rate commercial loans and shorter term consumer loans and to sell longer term mortgage loans. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                      |   | Non-performing Assets at December 31, |   |
|-------------------------------------------|--------|---------------------------------------|--------|
|                                      |   | 2010                                  |   |   | 2009 |   |   | Amount Change |   |   | Percent Change |   |
|                                      |   | (Dollars in thousands)                |   |
| Non-accruing loans                        |   | $                                     | 30,183 |   |   | $ | 29,086 |   |   | $ | 1,097 |   |   |   | 3.77 | % |
| Accruing loans delinquent 90 days or more |   |                                  | 1,546  |   |   |   | 1,934 |   |   | $ | (388 | ) |   |   | -20.06 | % |
| Restructured loans                        |   |                                  | 7,100  |   |   |   | 1,563 |   |   | $ | 5,537 |   |   |   | 354.25 | % |
| Foreclosed assets                         |   |                                  | 6,127  |   |   |   | 7,351 |   |   | $ | (1,224 | ) |   |   | -16.65 | % |
| Nonperforming investments                 |   |                                  | -      |   |   |   | 100 |   |   | $ | (100 | ) |   |   | -100.00 | % |
| Total                                     |   | $                                     | 44,956 |   |   | $ | 40,034 |   |   | $ | 4,922 |   |   |   | 12.29 | % |

----

|                                                                                      |   | Year Ended December 31, |   |
|-------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                      |   | 2010                    |   |   | 2009 |   |
|                                                                                      |   | (Dollars in thousands)  |   |
|                                                                                      |   |                    |   |   |   |   |
| Balance at beginning of period                                                            |   | $                       | 16,414 |   |   | $ | 15,107 |   |
| Charge-offs                                                                               |   |                    | 8,292  |   |   |   | 6,256 |   |
| Recoveries:                                                                               |   |                    | 1,200  |   |   |   | 1,063 |   |
| Net charge-offs                                                                           |   |                    | 7,092  |   |   |   | 5,193 |   |
| Provisions charged to operations                                                          |   |                    | 7,050  |   |   |   | 6,500 |   |
| Balance at end of period                                                                  |   | $                       | 16,372 |   |   | $ | 16,414 |   |
|                                                                                      |   |                    |   |   |   |   |   |   |
| Ratio of net charge-offs during the period to average loans outstanding during the period |   |                    | 0.69   | % |   |   | 0.47 | % |
|                                                                                      |   |                    |   |   |   |   |   |   |
| Allowance as a percentage of non-performing loans                                         |   |                    | 42.16  | % |   |   | 50.38 | % |
|                                                                                      |   |                    |   |   |   |   |   |   |
| Allowance as a percentage of total loans (end of period)                                  |   |                    | 1.64   | % |   |   | 1.53 | % |

----

----

|                                                                               |   | Year ended December 31,     |      |
|-----------------------------------------------------------------------------------------|--------|-----------------------------|-----------|
|                                                                                    |   | 2010                        |      |   | 2009 |   |   | 2008 |   |
|                                                                                    |   | Average Outstanding Balance |      |   | Interest Earned/ Paid |   |   | Average Yield/ Rate |   |   | Average Outstanding Balance |   |   | Interest Earned/ Paid |   |   | Average Yield/ Rate |   |   | Average Outstanding Balance |   |   | Interest Earned/ Paid |   |   | Average Yield/ Rate |   |
|                                                                                    |   | (Dollars in thousands)      |      |
| Interest-Earning Assets:                                                                |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest -bearing deposits                                                              |   | $                           | 72,919    |   |   | $ | 185 |   |   |   | 0.25 | % |   | $ | 36,415 |   |   | $ | 49 |   |   |   | 0.13 | % |   | $ | 8,711 |   |   | $ | 118 |   |   |   | 1.35 | % |
| Mortgage-backed securities available-for sale(1)                                        |   |                        | 179,901   |   |   |   | 5,923 |   |   |   | 3.29 |   |   |   | 81,317 |   |   |   | 4,019 |   |   |   | 4.94 |   |   |   | 28,648 |   |   |   | 1,596 |   |   |   | 5.57 |   |
| Investment securities available-for-sale(1)                                             |   |                        | 24,103    |   |   |   | 664 |   |   |   | 2.75 |   |   |   | 26,903 |   |   |   | 1,015 |   |   |   | 3.77 |   |   |   | 28,987 |   |   |   | 1,303 |   |   |   | 4.50 |   |
| Investment securities held-to-maturity                                                  |   |                        | 3,570     |   |   |   | 325 |   |   |   | 9.10 |   |   |   | 9,439 |   |   |   | 594 |   |   |   | 6.30 |   |   |   | 3,360 |   |   |   | 314 |   |   |   | 9.35 |   |
| Loans(2)                                                                                |   |                        | 1,026,199 |   |   |   | 59,952 |   |   |   | 5.84 |   |   |   | 1,107,274 |   |   |   | 65,865 |   |   |   | 5.95 |   |   |   | 956,788 |   |   |   | 61,128 |   |   |   | 6.39 |   |
| Stock in FHLB of Indianapolis                                                           |   |                        | 18,177    |   |   |   | 349 |   |   |   | 1.92 |   |   |   | 18,632 |   |   |   | 310 |   |   |   | 1.66 |   |   |   | 14,010 |   |   |   | 720 |   |   |   | 5.14 |   |
| Total interest-earning assets                                                           |   |                        | 1,324,869 |   |   |   | 67,398 |   |   |   | 5.09 |   |   |   | 1,279,980 |   |   |   | 71,852 |   |   |   | 5.61 |   |   |   | 1,040,504 |   |   |   | 65,179 |   |   |   | 6.26 |   |
|                                                                                    |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-Interest Earning Assets (net of allowance for loan losses and unrealized gain/loss) |   |                        | 122,163   |   |   |   |   |   |   |   |   |   |   |   | 125,668 |   |   |   |   |   |   |   |   |   |   |   | 118,673 |   |   |   |   |   |   |   |   |   |
| Total assets                                                                            |   | $                           | 1,447,032 |   |   |   |   |   |   |   |   |   |   | $ | 1,405,648 |   |   |   |   |   |   |   |   |   |   | $ | 1,159,177 |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Liabilities:                                                           |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand and NOW accounts                                                                 |   | $                           | 186,792   |   |   |   | 961 |   |   |   | 0.51 |   |   | $ | 162,572 |   |   |   | 776 |   |   |   | 0.48 |   |   | $ | 148,703 |   |   |   | 1,564 |   |   |   | 1.05 |   |
| Savings deposits                                                                        |   |                        | 89,622    |   |   |   | 139 |   |   |   | 0.16 |   |   |   | 84,883 |   |   |   | 230 |   |   |   | 0.27 |   |   |   | 66,315 |   |   |   | 317 |   |   |   | 0.48 |   |
| Money market accounts                                                                   |   |                        | 70,358    |   |   |   | 598 |   |   |   | 0.85 |   |   |   | 45,559 |   |   |   | 510 |   |   |   | 1.12 |   |   |   | 34,000 |   |   |   | 615 |   |   |   | 1.81 |   |
| Certificate accounts                                                                    |   |                        | 668,061   |   |   |   | 16,591 |   |   |   | 2.48 |   |   |   | 633,360 |   |   |   | 19,354 |   |   |   | 3.06 |   |   |   | 492,405 |   |   |   | 18,920 |   |   |   | 3.84 |   |
| Total deposits                                                                          |   |                        | 1,014,833 |   |   |   | 18,289 |   |   |   | 1.80 |   |   |   | 926,374 |   |   |   | 20,870 |   |   |   | 2.25 |   |   |   | 741,423 |   |   |   | 21,416 |   |   |   | 2.89 |   |
| Borrowings                                                                              |   |                        | 176,029   |   |   |   | 6,906 |   |   |   | 3.92 |   |   |   | 234,886 |   |   |   | 9,754 |   |   |   | 4.15 |   |   |   | 229,768 |   |   |   | 10,223 |   |   |   | 4.45 |   |
| Total interest-bearing accounts                                                         |   |                        | 1,190,862 |   |   |   | 25,195 |   |   |   | 2.12 |   |   |   | 1,161,260 |   |   |   | 30,624 |   |   |   | 2.64 |   |   |   | 971,191 |   |   |   | 31,639 |   |   |   | 3.26 |   |
| Non-Interest Bearing Accounts                                                           |   |                        | 108,316   |   |   |   |   |   |   |   |   |   |   |   | 95,762 |   |   |   |   |   |   |   |   |   |   |   | 66,746 |   |   |   |   |   |   |   |   |   |
| Other Liabilities                                                                       |   |                        | 14,196    |   |   |   |   |   |   |   |   |   |   |   | 18,077 |   |   |   |   |   |   |   |   |   |   |   | 18,138 |   |   |   |   |   |   |   |   |   |
| Total Liabilities                                                                       |   |                        | 1,313,374 |   |   |   |   |   |   |   |   |   |   |   | 1,275,099 |   |   |   |   |   |   |   |   |   |   |   | 1,056,075 |   |   |   |   |   |   |   |   |   |
| Stockholders’ Equity                                                              |   |                        | 133,658   |   |   |   |   |   |   |   |   |   |   |   | 130,549 |   |   |   |   |   |   |   |   |   |   |   | 103,102 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                                        |   | $                           | 1,447,032 |   |   |   |   |   |   |   |   |   |   | $ | 1,405,648 |   |   |   |   |   |   |   |   |   |   | $ | 1,159,177 |   |   |   |   |   |   |   |   |   |
| Net Earning Assets                                                                      |   | $                           | 134,007   |   |   |   |   |   |   |   |   |   |   | $ | 118,720 |   |   |   |   |   |   |   |   |   |   | $ | 69,313 |   |   |   |   |   |   |   |   |   |
| Net Interest Income                                                                     |   |                        |      |   |   | $ | 42,203 |   |   |   |   |   |   |   |   |   |   | $ | 41,228 |   |   |   |   |   |   |   |   |   |   | $ | 33,540 |   |   |   |   |   |
| Net Interest Rate Spread(3)                                                             |   |                        |      |   |   |   |   |   |   |   | 2.97 | % |   |   |   |   |   |   |   |   |   |   | 2.98 | % |   |   |   |   |   |   |   |   |   |   | 3.01 | % |
| Net Yield on Average Interest-Earning Assets(4)                                         |   |                        |      |   |   |   |   |   |   |   | 3.19 | % |   |   |   |   |   |   |   |   |   |   | 3.22 | % |   |   |   |   |   |   |   |   |   |   | 3.22 | % |
| Average Interest-Earning Assets to Average Interest-Bearing Liabilities                 |   |                        | 111.25    | % |   |   |   |   |   |   |   |   |   |   | 110.22 | % |   |   |   |   |   |   |   |   |   |   | 107.14 | % |   |   |   |   |   |   |   |   |

----

| (1) | Average balances were calculated using amortized cost, which excludes FASB 115 valuation allowances. |
|-----|------------------------------------------------------------------------------------------------------|

| (2) | Calculated net of deferred loan fees, loan discounts and loans in process. |
|-----|----------------------------------------------------------------------------|

| (3) | Interest rate spread is calculated by subtracting weighted average interest rate cost from weighted average interest rate yield for the period indicated. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The net yield on weighted average interest-earning assets is calculated by dividing net interest income by weighted average interest-earning assets for the period indicated. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                     |   | (Decrease)Due to       |   |   | Total Increase |   |   | (Decrease)Due to |   |   | TotalIncrease |   |
|------------------------------------------|--------|------------------------|--------|--------|----------------|--------|--------|------------------|--------|--------|---------------|--------|
|                                     |   | Volume                 |   |   | Rate           |   |   | (Decrease)       |   |   | Volume        |   |   | Rate |   |   | (Decrease) |   |
|                                     |   | (Dollars in thousands) |   |
| Interest-earning assets:                 |   |                   |   |   |           |   |   |             |   |   |          |   |   |   |   |   |   |   |
| Interest-bearing deposits                |   | $                      | 55     |   |           | $      | 81     |             |   | $      | 137           |   |   | $ | 112 |   |   | $ | (181 | ) |   | $ | (69 | ) |
| Investment securities available-for-sale |   |                   | 3,190  |   |           |   | (1,907 | )                |   |   | 1,283         |   |   |   | 2,613 |   |   |   | (198 | ) |   |   | 2,415 |   |
| Loans receivable                         |   |                   | (4,753 | )      |           |   | (1,160 | )                |   |   | (5,913        | )      |   |   | 9,154 |   |   |   | (4,417 | ) |   |   | 4,737 |   |
| Stock in FHLB of Indianapolis            |   |                   | (8     | )      |           |   | 47     |             |   |   | 39            |   |   |   | 185 |   |   |   | (595 | ) |   |   | (410 | ) |
|                                     |   |                   |   |   |           |   |   |             |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-earning assets            |   | $                      | (1,516 | )      |           | $      | (2,939 | )                |   | $      | (4,454        | )      |   | $ | 12,064 |   |   | $ | (5,391 | ) |   | $ | 6,673 |   |
|                                     |   |                   |   |   |           |   |   |             |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:            |   |                   |   |   |           |   |   |             |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings deposits                         |   | $                      | 12     |   |           | $      | (103   | )                |   | $      | (91           | )      |   | $ | 74 |   |   | $ | (161 | ) |   | $ | (87 | ) |
| Money market accounts                    |   |                   | 231    |   |           |   | (143   | )                |   |   | 88            |   |   |   | 172 |   |   |   | (277 | ) |   |   | (105 | ) |
| Demand and NOW accounts                  |   |                   | 122    |   |           |   | 63     |             |   |   | 185           |   |   |   | 134 |   |   |   | (922 | ) |   |   | (788 | ) |
| Certificate accounts                     |   |                   | 1,015  |   |           |   | (3,778 | )                |   |   | (2,763        | )      |   |   | 4,770 |   |   |   | (4,336 | ) |   |   | 434 |   |
| Borrowings                               |   |                   | (2,333 | )      |           |   | (515   | )                |   |   | (2,848        | )      |   |   | 224 |   |   |   | (693 | ) |   |   | (469 | ) |
|                                     |   |                   |   |   |           |   |   |             |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing liabilities       |   | $                      | (953   | )      |           | $      | (4,476 | )                |   | $      | (5,429        | )      |   | $ | 5,374 |   |   | $ | (6,389 | ) |   | $ | (1,015 | ) |
|                                     |   |                   |   |   |           |   |   |             |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in net interest income            |   |                   |   |   |           |   |   |             |   | $      | 975           |   |   |   |   |   |   |   |   |   |   | $ | 7,688 |   |

----

|                                                     |   | Year Ended             |   |   | Amount     |   |   | Percent |   |
|----------------------------------------------------------|--------|------------------------|--------|--------|------------|--------|--------|---------|--------|
| Non-Interest Income                                      |   | 12/31/2010             |   |   | 12/31/2009 |   |   | Change  |   |   | Change |   |
|                                                     |   | (Dollars in thousands) |   |
|                                                     |   |                   |   |   |       |   |   |    |   |   |   |   |
| Service fee income                                       |   | $                      | 7,229  |   |       | $      | 7,458  |    |   | $ | (229 | ) |   |   | -3.1 | % |
| Net realized gain (loss) on sale of securities           |   |                   | (53    | )      |       |   | 755    |    |   |   | (808 | ) |   |   | -107.0 | % |
| Equity in losses of limited partnerships                 |   |                   | (510   | )      |       |   | 108    |    |   |   | (618 | ) |   |   | -572.2 | % |
| Commissions                                              |   |                   | 3,845  |   |       |   | 3,047  |    |   |   | 798 |   |   |   | 26.2 | % |
| Net gains on sales of loans                              |   |                   | 2,275  |   |       |   | 2,377  |    |   |   | (102 | ) |   |   | -4.3 | % |
| Net servicing fees                                       |   |                   | 139    |   |       |   | 245    |    |   |   | (106 | ) |   |   | -43.3 | % |
| Increase in cash surrender value of life insurance       |   |                   | 1,556  |   |       |   | 1,573  |    |   |   | (17 | ) |   |   | -1.1 | % |
| Loss on sale of other real estate and repossessed assets |   |                   | (1,012 | )      |       |   | (1,182 | )       |   |   | 170 |   |   |   | -14.4 | % |
| Net other-than-temporary losses on securities            |   |                   | (841   | )      |       |   | (2,555 | )       |   |   | 1,714 |   |   |   |   |   |
| Other income                                             |   |                   | 451    |   |       |   | 146    |    |   |   | 305 |   |   |   | 208.9 | % |
|                                                     |   |                   |   |   |       |   |   |    |   |   |   |   |   |   |   |   |
| Total Non-Interest Income                                |   | $                      | 13,079 |   |       | $      | 11,972 |    |   | $ | 1,107 |   |   |   | 9.2 | % |

----

|                                     |   | Year Ended             |   |   | Amount     |   |   | Percent |   |
|------------------------------------------|--------|------------------------|--------|--------|------------|--------|--------|---------|--------|
| Non-Interest Expense                     |   | 12/31/2010             |   |   | 12/31/2009 |   |   | Change  |   |   | Change |   |
|                                     |   | (Dollars in thousands) |   |
|                                     |   |                   |   |   |       |   |   |    |   |   |   |   |
| Salaries and employee benefits           |   | $                      | 21,078 |   |       | $      | 23,047 |    |   | $ | (1,969 | ) |   |   | -8.5 | % |
| Net occupancy expenses                   |   |                   | 2,503  |   |       |   | 2,802  |    |   |   | (299 | ) |   |   | -10.7 | % |
| Equipment expenses                       |   |                   | 1,903  |   |       |   | 1,780  |    |   |   | 123 |   |   |   | 6.9 | % |
| Data processing fees                     |   |                   | 1,569  |   |       |   | 1,510  |    |   |   | 59 |   |   |   | 3.9 | % |
| Automated teller machine                 |   |                   | 1,169  |   |       |   | 1,095  |    |   |   | 74 |   |   |   | 6.8 | % |
| Deposit insurance                        |   |                   | 1,831  |   |       |   | 2,263  |    |   |   | (432 | ) |   |   | -19.1 | % |
| Professional fees                        |   |                   | 1,141  |   |       |   | 1,291  |    |   |   | (150 | ) |   |   | -11.6 | % |
| Advertising and promotion                |   |                   | 1,224  |   |       |   | 1,530  |    |   |   | (306 | ) |   |   | -20.0 | % |
| Software subscriptions and publications  |   |                   | 1,554  |   |       |   | 1,378  |    |   |   | 176 |   |   |   | 12.8 | % |
| Intangible amortization                  |   |                   | 1,348  |   |       |   | 1,525  |    |   |   | (177 | ) |   |   | -11.6 | % |
| Other real estate and repossessed assets |   |                   | 924    |   |       |   | 844    |    |   |   | 80 |   |   |   | 9.5 | % |
| Other expenses                           |   |                   | 3,761  |   |       |   | 4,261  |    |   |   | (500 | ) |   |   | -11.7 | % |
|                                     |   |                   |   |   |       |   |   |    |   |   |   |   |   |   |   |   |
| Total Non-Interest Expense               |   | $                      | 40,005 |   |       | $      | 43,326 |    |   | $ | (3,321 | ) |   |   | -7.7 | % |

----

----

----

|                                     |   | Actual |    |   | Minimum Under Regulations |   |   | Minimum to be Well-Capitalized |   |
|------------------------------------------|--------|--------|---------|--------|---------------------------|--------|--------|--------------------------------|--------|
|                                     |   | Amount |    |   | Ratio                     |   |   | Amount                         |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                     |   |   |    |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |
| Core Capital to Adjusted Total Assets(1) |   | $      | 127,812 |   |                      |   | 9.18   | %                              |   | $ | 55,713 |   |   |   | 4.00 | % |   | $ | 69,641 |   |   |   | 5.00 | % |
|                                     |   |   |    |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Core Capital to Risk-Weighted Assets(2)  |   | $      | 127,812 |   |                      |   | 12.54  | %                              |   | $ | 38,564 |   |   |   | 4.00 | % |   | $ | 57,846 |   |   |   | 6.00 | % |
| Total Capital to Risk-Weighted Assets    |   | $      | 132,998 |   |                      |   | 13.79  | %                              |   | $ | 77,128 |   |   |   | 8.00 | % |   | $ | 96,410 |   |   |   | 10.00 | % |

----

----

|   | · | Originate and purchase adjustable rate mortgage loans and commercial business loans, |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | Originate shorter-duration consumer loans, |
|--------|--------|--------------------------------------------|

|   | · | Manage our deposits to establish stable deposit relationships, |
|--------|--------|----------------------------------------------------------------|

|   | · | Acquire longer-term borrowings at fixed rates, when appropriate, to offset the negative impact of longer-term fixed rate loans in our loan portfolio, and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Limit the percentage of long-term fixed-rate loans in our portfolio. |
|--------|--------|----------------------------------------------------------------------|

----

| December 31, 2010      |
|------------------------|
| Net Portfolio Value    |
| (Dollars in thousands) |
| Changes                |   |   |   |   |   |   |   |   |   |   |   | NPV as % of PV of Assets |   |
| In Rates               |   |   | $ Amount |   |   | $ Change |   |   | % Change |   |   | NPV Ratio |   |   | Change |   |
|                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                   | 300 | bp |   |   | 168,484 |   |   |   | -28,342 |   |   |   | -14 | % |   |   | 12.70 | % |   |   | -113 | bp |
|                   | 200 | bp |   |   | 180,603 |   |   |   | -16,223 |   |   |   | -8 | % |   |   | 13.30 | % |   |   | -53 | bp |
|                   | 100 | bp |   |   | 190,847 |   |   |   | -5,979 |   |   |   | -3 | % |   |   | 13.73 | % |   |   | -11 | bp |
|                   | 0 | bp |   |   | 196,826 |   |   |   |   |   |   |   |   |   |   |   | 13.84 | % |   |   |   |   |
|                   | -100 | bp |   | NM |   |   | NM |   |   | NM |   |   | NM |   |   | NM |   |
|                   | -200 | bp |   | NM |   |   | NM |   |   | NM |   |   | NM |   |   | NM |   |
|                   | -300 | bp |   | NM |   |   | NM |   |   | NM |   |   | NM |   |   | NM |   |

| December 31, 2009      |
|------------------------|
| Net Portfolio Value    |
| (Dollars in thousands) |
| Changes                |   |   |   |   |   |   |   |   |   |   |   | NPV as % of PV of Assets |   |
| In Rates               |   |   | $ Amount |   |   | $ Change |   |   | % Change |   |   | NPV Ratio |   |   | Change |   |
|                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                   | 300 | bp |   |   | 162,643 |   |   |   | -38,114 |   |   |   | -19 | % |   |   | 12.26 | % |   |   | -180 | bp |
|                   | 200 | bp |   |   | 180,333 |   |   |   | -20,424 |   |   |   | -10 | % |   |   | 13.23 | % |   |   | -82 | bp |
|                   | 100 | bp |   |   | 190,330 |   |   |   | -10,426 |   |   |   | -5 | % |   |   | 13.66 | % |   |   | -40 | bp |
|                   | 0 | bp |   |   | 200,757 |   |   |   |   |   |   |   |   |   |   |   | 14.06 | % |   |   |   |   |
|                   | -100 | bp |   | NM |   |   | NM |   |   | NM |   |   | NM |   |   | NM |   |
|                   | -200 | bp |   | NM |   |   | NM |   |   | NM |   |   | NM |   |   | NM |   |
|                   | -300 | bp |   | NM |   |   | NM |   |   | NM |   |   | NM |   |   | NM |   |

----

----

----

----

|                                                                                      |   | 2010   |          |   | 2009   |   |
|-------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|
| Assets                                                                                    |   |   |          |   |   |   |
| Cash and due from banks                                                                   |   | $      | 9,288,748     |   |   | $      | 17,685,383 |   |
| Interest-bearing demand deposits                                                          |   |   | 17,531,932    |   |   |   | 28,655,514 |   |
| Cash and cash equivalents                                                                 |   |   | 26,820,680    |   |   |   | 46,340,897 |   |
| Investment securities available for sale                                                  |   |   | 245,165,189   |   |   |   | 130,913,670 |   |
| Investment securities held to maturity                                                    |   |   |  — |   |   |   | 8,147,407 |   |
| Total investment securities                                                               |   |   | 245,165,189   |   |   |   | 139,061,077 |   |
| Loans held for sale                                                                       |   |   | 10,482,734    |   |   |   | 2,520,546 |   |
| Loans, net of allowance for loan losses of $16,372,000 and $16,414,000                    |   |   | 978,900,912   |   |   |   | 1,059,694,135 |   |
| Premises and equipment, net                                                               |   |   | 32,966,112    |   |   |   | 34,556,318 |   |
| Federal Home Loan Bank stock                                                              |   |   | 16,682,200    |   |   |   | 18,631,500 |   |
| Investment in limited partnerships                                                        |   |   | 3,623,564     |   |   |   | 4,160,629 |   |
| Deferred tax asset                                                                        |   |   | 20,030,022    |   |   |   | 19,513,713 |   |
| Income taxes receivable                                                                   |   |   | 1,412,938     |   |   |   | 850,683 |   |
| Cash value of life insurance                                                              |   |   | 45,565,611    |   |   |   | 44,247,277 |   |
| Prepaid FDIC premiums                                                                     |   |   | 4,207,592     |   |   |   | 5,907,149 |   |
| Core deposit and other intangibles                                                        |   |   | 4,533,085     |   |   |   | 5,881,075 |   |
| Other assets                                                                              |   |   | 16,510,902    |   |   |   | 18,519,603 |   |
| Total assets                                                                              |   | $      | 1,406,901,541 |   |   | $      | 1,400,884,602 |   |
| Liabilities and Stockholders’ Equity                                                |   |   |          |   |   |   |   |   |
| Liabilities                                                                               |   |   |          |   |   |   |   |   |
| Deposits                                                                                  |   |   |          |   |   |   |   |   |
| Noninterest-bearing                                                                       |   | $      | 113,454,542   |   |   | $      | 98,024,890 |   |
| Interest-bearing                                                                          |   |   | 1,008,114,181 |   |   |   | 947,171,169 |   |
| Total deposits                                                                            |   |   | 1,121,568,723 |   |   |   | 1,045,196,059 |   |
| Federal Home Loan Bank advances                                                           |   |   | 128,537,407   |   |   |   | 197,960,396 |   |
| Other borrowings                                                                          |   |   | 13,167,316    |   |   |   | 14,113,526 |   |
| Other liabilities                                                                         |   |   | 12,488,073    |   |   |   | 13,887,544 |   |
| Total liabilities                                                                         |   |   | 1,275,761,519 |   |   |   | 1,271,157,525 |   |
| Commitments and Contingencies                                                             |   |   |          |   |   |   |   |   |
|                                                                                      |   |   |          |   |   |   |   |   |
| Stockholders’ Equity                                                                |   |   |          |   |   |   |   |   |
| Preferred stock, $.01 par value                                                           |   |   |          |   |   |   |   |   |
| Authorized - 5,000,000 shares                                                             |   |   |          |   |   |   |   |   |
| Issued and outstanding - 32,382 and 32,382 shares;liquidation preference $1,000 per share |   |   | 324           |   |   |   | 324 |   |
| Common stock, $.01 par value                                                              |   |   |          |   |   |   |   |   |
| Authorized - 20,000,000 shares                                                            |   |   |          |   |   |   |   |   |
| Issued and outstanding - 6,984,754 and 6,984,754 shares                                   |   |   | 69,847        |   |   |   | 69,847 |   |
| Additional paid-in capital - preferred stock                                              |   |   | 31,829,779    |   |   |   | 31,645,814 |   |
| Additional paid-in capital - common stock                                                 |   |   | 72,424,460    |   |   |   | 72,485,756 |   |
| Retained earnings                                                                         |   |   | 31,757,156    |   |   |   | 28,654,285 |   |
| Accumulated other comprehensive loss                                                      |   |   | (3,988,158    | )      |   |   | (1,857,723 | ) |
| Unearned benefit plan shares                                                              |   |   | (953,386      | )      |   |   | (1,271,226 | ) |
| Total stockholders’ equity                                                          |   |   | 131,140,022   |   |   |   | 129,727,077 |   |
|                                                                                      |   |   |          |   |   |   |   |   |
| Total liabilities and stockholders’ equity                                          |   | $      | 1,406,901,541 |   |   | $      | 1,400,884,602 |   |

----

|                                                                    |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|-------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Interest and Dividend Income                                            |   |   |       |   |   |   |       |   |   |
| Loans receivable                                                        |   | $      | 59,952,037 |   |   | $      | 65,864,742 |   |   | $ | 61,127,725 |   |
| Investment securities                                                   |   |   | 6,911,692  |   |   |   | 5,628,312  |   |   |   | 3,213,272 |   |
| Federal Home Loan Bank stock                                            |   |   | 349,404    |   |   |   | 310,589    |   |   |   | 719,886 |   |
| Deposits with financial institutions                                    |   |   | 184,813    |   |   |   | 48,665     |   |   |   | 118,064 |   |
| Total interest and dividend income                                      |   |   | 67,397,946 |   |   |   | 71,852,308 |   |   |   | 65,178,947 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Interest Expense                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Deposits                                                                |   |   | 18,288,902 |   |   |   | 20,870,515 |   |   |   | 21,416,502 |   |
| Federal Home Loan Bank advances                                         |   |   | 5,985,611  |   |   |   | 8,762,340  |   |   |   | 9,698,795 |   |
| Other interest expense                                                  |   |   | 920,090    |   |   |   | 991,472    |   |   |   | 523,793 |   |
| Total interest expense                                                  |   |   | 25,194,603 |   |   |   | 30,624,327 |   |   |   | 31,639,090 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Net Interest Income                                                     |   |   | 42,203,343 |   |   |   | 41,227,981 |   |   |   | 33,539,857 |   |
| Provision for loan losses                                               |   |   | 7,050,000  |   |   |   | 6,500,000  |   |   |   | 7,020,000 |   |
| Net Interest Income After Provision for Loan Losses                     |   |   | 35,153,343 |   |   |   | 34,727,981 |   |   |   | 26,519,857 |   |
| Other Income                                                            |   |   |       |   |   |   |       |   |   |   |   |   |
| Service fee income                                                      |   |   | 7,228,873  |   |   |   | 7,457,642  |   |   |   | 6,256,694 |   |
| Net realized gain (loss) on sales of available-for-sale securities      |   |   | (52,705    | )      |   |   | 754,990    |   |   |   | (2,365,531 | ) |
| Commissions                                                             |   |   | 3,844,869  |   |   |   | 3,046,798  |   |   |   | 1,796,332 |   |
| Equity in gains (losses) of limited partnerships                        |   |   | (510,066   | )      |   |   | 108,081    |   |   |   | (157,575 | ) |
| Net gains on sales of loans                                             |   |   | 2,275,283  |   |   |   | 2,377,222  |   |   |   | 1,438,626 |   |
| Net servicing fees                                                      |   |   | 138,683    |   |   |   | 244,807    |   |   |   | (298,473 | ) |
| Increase in cash value of life insurance                                |   |   | 1,555,948  |   |   |   | 1,573,096  |   |   |   | 1,322,724 |   |
| Loss on sale of other real estate and repossessed assets                |   |   | (1,012,034 | )      |   |   | (1,181,450 | )      |   |   | (244,305 | ) |
| Other-than-temporary losses on securities                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Total other-than-temporary losses                                       |   |   | (2,078,382 | )      |   |   | (5,335,121 | )      |   |   | (1,350,000 | ) |
| Portion of loss recognized in other comprehensive income (before taxes) |   |   | 1,237,103  |   |   |   | 2,779,828  |   |   |   | — |   |
| Net impairment losses recognized in earnings                            |   |   | (841,279   | )      |   |   | (2,555,293 | )      |   |   | (1,350,000 | ) |
| Other income (loss)                                                     |   |   | 451,336    |   |   |   | 146,359    |   |   |   | (120,503 | ) |
| Total other income                                                      |   |   | 13,078,908 |   |   |   | 11,972,252 |   |   |   | 6,277,989 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Other Expenses                                                          |   |   |       |   |   |   |       |   |   |   |   |   |
| Salaries and employee benefits                                          |   |   | 21,078,463 |   |   |   | 23,046,656 |   |   |   | 19,117,989 |   |
| Net occupancy expenses                                                  |   |   | 2,502,742  |   |   |   | 2,802,258  |   |   |   | 1,911,495 |   |
| Equipment expenses                                                      |   |   | 1,902,928  |   |   |   | 1,780,267  |   |   |   | 1,629,898 |   |
| Data processing fees                                                    |   |   | 1,568,953  |   |   |   | 1,510,194  |   |   |   | 1,191,655 |   |
| Advertising and promotion                                               |   |   | 1,223,825  |   |   |   | 1,529,744  |   |   |   | 1,461,225 |   |
| Automated teller machine expense                                        |   |   | 1,168,695  |   |   |   | 1,094,893  |   |   |   | 968,078 |   |
| Deposit Insurance                                                       |   |   | 1,831,049  |   |   |   | 2,262,697  |   |   |   | 512,129 |   |
| Professional fees                                                       |   |   | 1,140,560  |   |   |   | 1,291,389  |   |   |   | 1,133,012 |   |
| Software subscriptions and maintenance                                  |   |   | 1,554,267  |   |   |   | 1,378,329  |   |   |   | 1,010,518 |   |
| Other real estate and repossessed assets                                |   |   | 924,205    |   |   |   | 843,732    |   |   |   | 630,918 |   |
| Goodwill impairment                                                     |   |   | —    |   |   |   | —    |   |   |   | 28,968,993 |   |
| Other expenses                                                          |   |   | 5,108,832  |   |   |   | 5,785,596  |   |   |   | 4,845,170 |   |
| Total other expenses                                                    |   |   | 40,004,519 |   |   |   | 43,325,755 |   |   |   | 63,381,080 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Income (Loss) Before Income Tax                                         |   |   | 8,227,732  |   |   |   | 3,374,478  |   |   |   | (30,583,234 | ) |
| Income tax expense (benefit)                                            |   |   | 1,676,000  |   |   |   | 211,000    |   |   |   | (8,485,000 | ) |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Net Income (Loss)                                                       |   |   | 6,551,732  |   |   |   | 3,163,478  |   |   |   | (22,098,234 | ) |
| Preferred stock dividends and amortization                              |   |   | 1,803,064  |   |   |   | 1,803,064  |   |   |   | 31,482 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Net Income (Loss) Available to Common Shareholders                      |   | $      | 4,748,668  |   |   | $      | 1,360,414  |   |   | $ | (22,129,716 | ) |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Earnings Per Share                                                      |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic                                                                   |   | $      | 0.69       |   |   | $      | 0.20       |   |   | $ | (4.22 | ) |
| Diluted                                                                 |   |   | 0.69       |   |   |   | 0.20       |   |   |   | (4.22 | ) |

----

|                                                                                                                                               |   |         |               |   |      |   |       |   |   |         |               |   |   | Accumulated   |               |   |          |   |        |    |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------------------|--------|-----------|--------|------------|--------|--------|--------------|--------------------|--------|--------|---------------|--------------------|--------|---------------|--------|-------------|---------|--------|
|                                                                                                                                               |   |         |               |   |      |   |       |   |   |         |               |   |   | Other         |               |   | Unearned      |   |        |    |   |
|                                                                                                                                               |   |         |               |   | Paid-in   |   |       |   |   |         | Paid-in            |   |   |          |               |   | Comprehensive |   |        | Benefit |   |   |   |   |
|                                                                                                                                               |   | Preferred    |               |   | Capital   |   |       | Common |   |         | Capital            |   |   | Retained      |               |   | Income        |   |        | Plan    |   |   |   |   |
|                                                                                                                                               |   | Stock        |               |   | Preferred |   |       | Stock  |   |         | Common             |   |   | Earnings      |               |   | (Loss)        |   |        | Shares  |   |   | Total |   |
| Balances, January 1, 2008                                                                                                                          |   | $            | —            |   |      | $      | —    |   |   | $            | 42,266             |   |   | $             | 32,567,085         |   |          | $      | 56,725,785  |    |   | $ | (414,380 | ) |   | $ | (1,906,906 | ) |   | $ | 87,013,850 |   |
| Comprehensive loss                                                                                                                                 |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                                           |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   | (22,098,234 | )       |   |   |   |   |   |   |   |   |   |   | (22,098,234 | ) |
| Other comprehensive income, net of taxes                                                                                                           |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains on  available-for-sale securities                                                                               |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   | (1,503,877 | ) |   |   |   |   |   |   | (1,503,877 | ) |
| Unrealized loss on defined benefit plan                                                                                                            |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   | (109,699 | ) |   |   |   |   |   |   | (109,699 | ) |
| Total comprehensive loss                                                                                                                           |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   | (23,711,810 | ) |
| Preferred stock issued                                                                                                                             |   |         | 324                |   |      |   | 31,461,848 |   |   |         |               |   |   |          | 919,828            |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   | 32,382,000 |   |
| Common stock issued in acquisition, net of costs                                                                                                   |   |         |               |   |      |   |       |   |   |         | 29,117             |   |   |          | 39,758,791         |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   | 39,787,908 |   |
| Cash dividends ($.64 per share)                                                                                                                    |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   | (3,489,747  | )       |   |   |   |   |   |   |   |   |   |   | (3,489,747 | ) |
| Stock repurchased                                                                                                                                  |   |         |               |   |      |   |       |   |   |         | (1,536             | )      |   |          | (660,334           | )      |          |   | (1,148,801  | )       |   |   |   |   |   |   |   |   |   |   | (1,810,671 | ) |
| RRP shares earned                                                                                                                                  |   |         |               |   |      |   |       |   |   |         |               |   |   |          | 21,056             |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   | 21,056 |   |
| Tax expense on stock options and RRP shares                                                                                                        |   |         |               |   |      |   |       |   |   |         |               |   |   |          | (20,529            | )      |          |   |        |    |   |   |   |   |   |   |   |   |   |   | (20,529 | ) |
| ESOP shares earned                                                                                                                                 |   |         |               |   |      |   |       |   |   |         |               |   |   |          | 25,042             |   |          |   |        |    |   |   |   |   |   |   | 317,840 |   |   |   | 342,882 |   |
|                                                                                                                                               |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances December 31, 2008                                                                                                                         |   |         | 324                |   |      |   | 31,461,848 |   |   |         | 69,847             |   |   |          | 72,610,939         |   |          |   | 29,989,003  |    |   |   | (2,027,956 | ) |   |   | (1,589,066 | ) |   |   | 130,514,939 |   |
| Comprehensive income                                                                                                                               |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                                                         |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   | 3,163,478   |    |   |   |   |   |   |   |   |   |   |   | 3,163,478 |   |
| Other comprehensive income, net of taxes                                                                                                           |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains on  available-for-sale securities                                                                               |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   | 1,985,376 |   |   |   |   |   |   |   | 1,985,376 |   |
| Unrealized holding losses on available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   | (1,689,510 | ) |   |   |   |   |   |   | (1,689,510 | ) |
| Unrealized gain on derivative used for cash flow hedge                                                                                             |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   | 29,348 |   |   |   |   |   |   |   | 29,348 |   |
| Unrealized loss on defined benefit plan                                                                                                            |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   | (154,981 | ) |   |   |   |   |   |   | (154,981 | ) |
| Total comprehensive income                                                                                                                         |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   | 3,333,711 |   |
| Stock options                                                                                                                                      |   |         |               |   |      |   |       |   |   |         |               |   |   |          | 13,401             |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   | 13,401 |   |
| Cash dividends, common stock ($.42 per share)                                                                                                      |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   | (2,866,034  | )       |   |   |   |   |   |   |   |   |   |   | (2,866,034 | ) |
| Cash dividends, preferred stock (5%)                                                                                                               |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   | (1,448,196  | )       |   |   |   |   |   |   |   |   |   |   | (1,448,196 | ) |
| Tax expense on stock options and RRP shares                                                                                                        |   |         |               |   |      |   |       |   |   |         |               |   |   |          | (35,559            | )      |          |   |        |    |   |   |   |   |   |   |   |   |   |   | (35,559 | ) |
| ESOP shares earned                                                                                                                                 |   |         |               |   |      |   |       |   |   |         |               |   |   |          | (103,025           | )      |          |   |        |    |   |   |   |   |   |   | 317,840 |   |   |   | 214,815 |   |
| Accretion of discount on preferred stock                                                                                                           |   |    |     |   |      |   | 183,966    |   |   |    |     |   |   |     |     |   |          |   | (183,966    | )       |   |    |     |   |   |    |     |   |   |    |     |   |
|                                                                                                                                               |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances December 31, 2009                                                                                                                         |   |         | 324                |   |      |   | 31,645,814 |   |   |         | 69,847             |   |   |          | 72,485,756         |   |          |   | 28,654,285  |    |   |   | (1,857,723 | ) |   |   | (1,271,226 | ) |   |   | 129,727,077 |   |
| Comprehensive income                                                                                                                               |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                                                         |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   | 6,551,732   |    |   |   |   |   |   |   |   |   |   |   | 6,551,732 |   |
| Other comprehensive income, net of taxes                                                                                                           |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding loss on  available-for-sale securities                                                                                |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   | (1,138,255 | ) |   |   |   |   |   |   | (1,138,255 | ) |
| Unrealized holding loss on available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income   |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   | (862,923 | ) |   |   |   |   |   |   | (862,923 | ) |
| Unrealized loss on derivative used for cash flow hedge                                                                                             |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   | (252,615 | ) |   |   |   |   |   |   | (252,615 | ) |
| Unrealized gain on defined benefit plan                                                                                                            |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   | 123,358 |   |   |   |   |   |   |   | 123,358 |   |
| Total comprehensive income                                                                                                                         |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   | 4,421,297 |   |
| Stock options                                                                                                                                      |   |         |               |   |      |   |       |   |   |         |               |   |   |          | 23,672             |   |          |   |        |    |   |   |   |   |   |   |   |   |   |   | 23,672 |   |
| Cash dividends, common stock ($.24 per share)                                                                                                      |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   | (1,645,797  | )       |   |   |   |   |   |   |   |   |   |   | (1,645,797 | ) |
| Cash dividends, preferred stock (5%)                                                                                                               |   |         |               |   |      |   |       |   |   |         |               |   |   |          |               |   |          |   | (1,619,099  | )       |   |   |   |   |   |   |   |   |   |   | (1,619,099 | ) |
| ESOP shares earned                                                                                                                                 |   |         |               |   |      |   |       |   |   |         |               |   |   |          | (84,968            | )      |          |   |        |    |   |   |   |   |   |   | 317,840 |   |   |   | 232,872 |   |
| Accretion of discount on preferred stock                                                                                                           |   |         |          |   |      |   | 183,965    |   |   |         |          |   |   |          |          |   |          |   | (183,965    | )       |   |   |    |   |   |   |    |   |   |   |    |   |
| Balances December 31, 2010                                                                                                                         |   | $            | 324                |   |      | $      | 31,829,779 |   |   | $            | 69,847             |   |   | $             | 72,424,460         |   |          | $      | 31,757,156  |    |   | $ | (3,988,158 | ) |   | $ | 953,386 |   |   | $ | 131,140,022 |   |

----

|                                                              |   | 2010   |         |   | 2009   |   |         | 2008   |   |
|-------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|--------------|--------|--------|
| Operating Activities                                              |   |   |         |   |   |   |         |   |   |
| Net income (loss)                                                 |   | $      | 6,551,732    |   |   | $      | 3,163,478    |   |   | $ | (22,098,234 | ) |
| Items not requiring (providing) cash                              |   |   |         |   |   |   |         |   |   |   |   |   |
| Provision for loan losses                                         |   |   | 7,050,000    |   |   |   | 6,500,000    |   |   |   | 7,020,000 |   |
| Impairment of goodwill                                            |   |   | —      |   |   |   | —      |   |   |   | 28,968,993 |   |
| Depreciation and amortization                                     |   |   | 5,823,030    |   |   |   | 4,561,919    |   |   |   | 2,812,118 |   |
| Deferred income tax                                               |   |   | 1,000,115    |   |   |   | (378,864     | )      |   |   | (9,121,613 | ) |
| Loans originated for sale                                         |   |   | (90,758,585  | )      |   |   | (160,998,914 | )      |   |   | (41,018,545 | ) |
| Proceeds from sales of loans held for sale                        |   |   | 84,214,796   |   |   |   | 160,817,418  |   |   |   | 41,737,644 |   |
| Gain on loans held for sale                                       |   |   | (2,275,283   | )      |   |   | (2,377,222   | )      |   |   | (1,438,626 | ) |
| (Gain) loss on sale of securities - available for sale            |   |   | 52,705       |   |   |   | (754,990     | )      |   |   | 2,365,531 |   |
| Loss on sale of other real estate and repossessed assets          |   |   | 1,012,034    |   |   |   | 1,181,450    |   |   |   | 244,305 |   |
| Loss on impairment of securities                                  |   |   | 841,279      |   |   |   | 2,555,293    |   |   |   | 1,350,000 |   |
| Write-down of other real estate                                   |   |   | 2,451,391    |   |   |   | 1,705,276    |   |   |   | 13,973 |   |
| Gain on sale of premises and equipment                            |   |   | 918          |   |   |   | (187,651     | )      |   |   | — |   |
| Other equity adjustments                                          |   |   | 232,872      |   |   |   | 214,815      |   |   |   | 384,467 |   |
| Change in                                                         |   |   |         |   |   |   |         |   |   |   |   |   |
| Prepaid FDIC premium                                              |   |   | 1,699,557    |   |   |   | (5,907,149   | )      |   |   | — |   |
| Interest receivable and other assets                              |   |   | 1,765,825    |   |   |   | 2,093,289    |   |   |   | 1,811,318 |   |
| Interest payable and other liabilities                            |   |   | (1,326,884   | )      |   |   | (1,346,904   | )      |   |   | (387,104 | ) |
| Cash value of life insurance                                      |   |   | (1,555,948   | )      |   |   | (1,573,096   | )      |   |   | (1,322,724 | ) |
| Other adjustments                                                 |   |   | 274,150      |   |   |   | (712,986     | )      |   |   | 547,009 |   |
| Net cash provided by operating activities                         |   |   | 17,053,704   |   |   |   | 8,555,162    |   |   |   | 11,868,512 |   |
|                                                              |   |   |         |   |   |   |         |   |   |   |   |   |
| Investing Activities                                              |   |   |         |   |   |   |         |   |   |   |   |   |
| Net change in interest earning deposits                           |   |   | —      |   |   |   | —      |   |   |   | 100,000 |   |
| Purchases of securities                                           |   |   |         |   |   |   |         |   |   |   |   |   |
| Available for sale                                                |   |   | (254,021,299 | )      |   |   | (84,539,462  | )      |   |   | (59,806,429 | ) |
| Held to maturity                                                  |   |   | —      |   |   |   | (500,000     | )      |   |   | — |   |
| Proceeds from redemption-in-kind - investments                    |   |   | —      |   |   |   | —      |   |   |   | 2,282,409 |   |
| Proceeds from maturities and paydowns of securities               |   |   |         |   |   |   |         |   |   |   |   |   |
| Available for sale                                                |   |   | 55,705,428   |   |   |   | 19,079,510   |   |   |   | 9,342,878 |   |
| Held to maturity                                                  |   |   | 1,533,526    |   |   |   | 1,577,833    |   |   |   | 348,629 |   |
| Proceeds from sales of securities - available for sale            |   |   | 85,584,700   |   |   |   | 11,167,302   |   |   |   | 21,519,205 |   |
| Redemption of Federal Home Loan Bank stock                        |   |   | 1,949,300    |   |   |   | —      |   |   |   | — |   |
| Net change in loans                                               |   |   | 65,480,633   |   |   |   | 38,722,418   |   |   |   | 4,435,817 |   |
| Proceeds from sales of loans transferred to held for sale         |   |   | —      |   |   |   | —      |   |   |   | 51,577,741 |   |
| Proceeds from sale of premises and equipment                      |   |   | 500          |   |   |   | 1,033,151    |   |   |   | — |   |
| Purchases of premises and equipment                               |   |   | (648,456     | )      |   |   | (1,091,423   | )      |   |   | (3,422,071 | ) |
| Proceeds from real estate owned sales                             |   |   | 4,464,660    |   |   |   | 1,841,994    |   |   |   | 1,781,701 |   |
| Cash received (paid) in acquisition, net                          |   |   | —      |   |   |   | —      |   |   |   | 331,065 |   |
| Other investing activities                                        |   |   | 264,210      |   |   |   | 29,770       |   |   |   | (320,173 | ) |
| Net cash provided by (used in) investing activities               |   |   | (39,686,798  | )      |   |   | (12,678,907  | )      |   |   | 28,170,772 |   |
|                                                              |   |   |         |   |   |   |         |   |   |   |   |   |
| Financing Activities                                              |   |   |         |   |   |   |         |   |   |   |   |   |
| Net change in                                                     |   |   |         |   |   |   |         |   |   |   |   |   |
| Noninterest-bearing, interest-bearing demand and savings deposits |   |   | 52,021,686   |   |   |   | 20,106,823   |   |   |   | (19,540,396 | ) |
| Certificates of deposits                                          |   |   | 24,350,978   |   |   |   | 62,575,065   |   |   |   | (16,808,138 | ) |
| Proceeds from FHLB advances                                       |   |   | 26,500,000   |   |   |   | 63,100,000   |   |   |   | 500,225,000 |   |
| Repayment of FHLB advances                                        |   |   | (95,433,046  | )      |   |   | (127,290,189 | )      |   |   | (521,337,084 | ) |
| Proceeds from other borrowings                                    |   |   | —      |   |   |   | 10,000,000   |   |   |   | 11,500,000 |   |
| Repayment of other borrowings                                     |   |   | (989,257     | )      |   |   | (11,921,210  | )      |   |   | (4,383,382 | ) |
| Proceeds from issuance of preferred stock                         |   |   | —      |   |   |   | —      |   |   |   | 32,382,000 |   |
| Stock repurchased                                                 |   |   | —      |   |   |   | —      |   |   |   | (1,810,671 | ) |
| Cash dividends                                                    |   |   | (3,264,896   | )      |   |   | (4,314,230   | )      |   |   | (3,489,747 | ) |
| Other financing activities                                        |   |   | (72,588      | )      |   |   | (1,495,069   | )      |   |   | (721,585 | ) |
| Net cash provided by (used in) financing activities               |   |   | 3,112,877    |   |   |   | 10,761,190   |   |   |   | (23,984,003 | ) |
|                                                              |   |   |         |   |   |   |         |   |   |   |   |   |
| Net Change in Cash and Cash Equivalents                           |   |   | (19,520,217  | )      |   |   | 6,637,445    |   |   |   | 16,055,281 |   |
|                                                              |   |   |         |   |   |   |         |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Year                      |   |   | 46,340,897   |   |   |   | 39,703,452   |   |   |   | 23,648,171 |   |
|                                                              |   |   |         |   |   |   |         |   |   |   |   |   |
| Cash and Cash Equivalents, End of Year                            |   | $      | 26,820,680   |   |   | $      | 46,340,897   |   |   | $ | 39,703,452 |   |
|                                                              |   |   |         |   |   |   |         |   |   |   |   |   |
| Additional Cash Flows Information                                 |   |   |         |   |   |   |         |   |   |   |   |   |
| Interest paid                                                     |   | $      | 24,996,931   |   |   | $      | 31,548,480   |   |   | $ | 31,989,878 |   |
| Income tax paid                                                   |   |   | 450,000      |   |   |   | 550,000      |   |   |   | 900,000 |   |
| Transfers from loans to foreclosed real estate                    |   |   | 7,211,072    |   |   |   | 7,172,727    |   |   |   | 3,138,785 |   |
| Mortgage servicing rights capitalized                             |   |   | 681,884      |   |   |   | 1,579,282    |   |   |   | 823,032 |   |
| Redemption in kind - investments                                  |   |   | —      |   |   |   | —      |   |   |   | 9,934,943 |   |

----

| Note 1: | Nature of Operations and Summary of Significant Accounting Policies |
|---------|---------------------------------------------------------------------|

----

----

----

----

----

| Note 2: | Impact of Accounting Pronouncements |
|---------|-------------------------------------|

----

| Note 3: | Acquisitions |
|---------|--------------|

| Cash and cash equivalents |   | $      | 11,179  |   |
|---------------------------|--------|--------|---------|--------|
| Investments               |   |   | 23,490  |   |
| Loans                     |   |   | 378,075 |   |
| Premises and equipment    |   |   | 18,565  |   |
| Core deposit intangible   |   |   | 6,645   |   |
| Goodwill                  |   |   | 14,781  |   |
| Other assets              |   |   | 19,263  |   |
| Total assets acquired     |   |   | 471,998 |   |
|                      |   |   |    |   |
| Deposits                  |   |   | 332,075 |   |
| Borrowings                |   |   | 97,361  |   |
| Other liabilities         |   |   | 5,346   |   |
| Total liabilities assumed |   |   | 434,782 |   |
|                      |   |   |    |   |
| Net assets acquired       |   | $      | 37,216  |   |

| Note 4: | Restriction on Cash |
|---------|---------------------|

----

| Note 5: | Investment Securities |
|---------|-----------------------|

|                                |   | 2010                |    |
|-------------------------------------|--------|---------------------|---------|
|                                |   | Amortized Cost |    |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | FairValue |   |
| Available for Sale Securities       |   |                |    |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities          |   |                |    |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies       |   | $                   | 119,017 |   |   | $ | 1,076 |   |   | $ | (1,818 | ) |   | $ | 118,275 |   |
| Collateralized mortgage obligations |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies       |   |                | 112,615 |   |   |   | 1,251 |   |   |   | (1,642 | ) |   |   | 112,224 |   |
| Federal agencies                    |   |                | 7,925   |   |   |   | — |   |   |   | (104 | ) |   |   | 7,821 |   |
| Municipals                          |   |                | 2,460   |   |   |   | 33 |   |   |   | (11 | ) |   |   | 2,482 |   |
| Small Business Administration       |   |                | 16      |   |   |   | — |   |   |   | — |   |   |   | 16 |   |
| Corporate obligations               |   |                | 6,888   |   |   |   | — |   |   |   | (4,243 | ) |   |   | 2,645 |   |
| Marketable equity securities        |   |                | 1,723   |   |   |   | — |   |   |   | (21 | ) |   |   | 1,702 |   |
|                                |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total investment securities         |   | $                   | 250,644 |   |   | $ | 2,360 |   |   | $ | (7,839 | ) |   | $ | 245,165 |   |

|                                |   | 2009           |    |
|-------------------------------------|--------|----------------|---------|
|                                |   | Amortized Cost |    |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | FairValue |   |
| Available for Sale Securities       |   |           |    |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities          |   |           |    |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies       |   | $              | 29,175  |   |   | $ | 824 |   |   | $ | (109 | ) |   | $ | 29,890 |   |
| Collateralized mortgage obligations |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies       |   |           | 74,241  |   |   |   | 1,769 |   |   |   | (251 | ) |   |   | 75,759 |   |
| Private labeled                     |   |           | 11,485  |   |   |   | 105 |   |   |   | (320 | ) |   |   | 11,270 |   |
| Municipals                          |   |           | 9,313   |   |   |   | 360 |   |   |   | (17 | ) |   |   | 9,656 |   |
| Small Business Administration       |   |           | 158     |   |   |   | — |   |   |   | (1 | ) |   |   | 157 |   |
| Corporate obligations               |   |           | 7,321   |   |   |   | — |   |   |   | (4,782 | ) |   |   | 2,539 |   |
| Marketable equity securities        |   |           | 1,685   |   |   |   | — |   |   |   | (42 | ) |   |   | 1,643 |   |
|                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total investment securities         |   | $              | 133,378 |   |   | $ | 3,058 |   |   | $ | (5,522 | ) |   | $ | 130,914 |   |
|                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to Maturity Securities         |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities          |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies       |   | $              | 1,411   |   |   | $ | 24 |   |   | $ | (3 | ) |   | $ | 1,432 |   |
| Private labeled                     |   |           | 3,208   |   |   |   | 5 |   |   |   | (1,370 | ) |   |   | 1,843 |   |
| Collateralized mortgage obligations |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies       |   |           | 1,330   |   |   |   | 143 |   |   |   | — |   |   |   | 1,473 |   |
| Private labeled                     |   |           | 1,698   |   |   |   | 15 |   |   |   | (632 | ) |   |   | 1,081 |   |
| Federal agencies                    |   |           | 500     |   |   |   | 4 |   |   |   | — |   |   |   | 504 |   |
|                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total investment securities         |   | $              | 8,147   |   |   | $ | 191 |   |   | $ | (2,005 | ) |   | $ | 6,333 |   |

----

|                                  |   | 2010                |    |
|---------------------------------------|--------|---------------------|---------|
|                                  |   | Less than 12 Months |    |   | 12 Months or More |   |   | Total |   |
|                                  |   | FairValue           |    |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |
| Available for Sale                    |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies         |   | $                   | 69,971  |   |   | $ | (1,818 | ) |   | $ | — |   |   | $ | — |   |   | $ | 69,971 |   |   | $ | (1,818 | ) |
| Collateralized mortgage obligations   |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies         |   |                | 58,466  |   |   |   | (1,642 | ) |   |   | — |   |   |   | — |   |   |   | 58,466 |   |   |   | (1,642 | ) |
| Federal agencies                      |   |                | 7,821   |   |   |   | (104 | ) |   |   | — |   |   |   | — |   |   |   | 7,821 |   |   |   | (104 | ) |
| Municipals                            |   |                | 661     |   |   |   | (11 | ) |   |   | — |   |   |   | — |   |   |   | 661 |   |   |   | (11 | ) |
| Corporate obligations                 |   |                | — |   |   |   | — |   |   |   | 2,645 |   |   |   | (4,243 | ) |   |   | 2,645 |   |   |   | (4,243 | ) |
| Marketable equity securities          |   |                | — |   |   |   | — |   |   |   | 1,702 |   |   |   | (21 | ) |   |   | 1,702 |   |   |   | (21 | ) |
|                                  |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total temporarily impaired securities |   | $                   | 136,919 |   |   | $ | (3,575 | ) |   | $ | 4,347 |   |   | $ | (4,264 | ) |   | $ | 141,266 |   |   | $ | (7,839 | ) |

----

|                                  |   | 2009                      |    |
|---------------------------------------|--------|---------------------------|---------|
|                                  |   |  Less than 12 Months |    |   | 12 Months or More |   |   | Total |   |
|                                  |   | FairValue                 |    |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |
| Available for Sale                    |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities            |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies         |   | $                         | 8,511   |   |   | $ | (109 | ) |   | $ | — |   |   | $ | — |   |   | $ | 8,511 |   |   | $ | (109 | ) |
| Collateralized mortgage obligations   |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies         |   |                      | 16,829  |   |   |   | (251 | ) |   |   | — |   |   |   | — |   |   |   | 16,829 |   |   |   | (251 | ) |
| Private labeled                       |   |                      | — |   |   |   | — |   |   |   | 4,609 |   |   |   | (320 | ) |   |   | 4,609 |   |   |   | (320 | ) |
| Municipals                            |   |                      | 1,025   |   |   |   | (17 | ) |   |   | — |   |   |   | — |   |   |   | 1,025 |   |   |   | (17 | ) |
| Small Business Administration         |   |                      | — |   |   |   | — |   |   |   | 157 |   |   |   | (1 | ) |   |   | 157 |   |   |   | (1 | ) |
| Corporate obligations                 |   |                      | — |   |   |   | — |   |   |   | 2,539 |   |   |   | (4,782 | ) |   |   | 2,539 |   |   |   | (4,782 | ) |
| Marketable equity securities          |   |                      | — |   |   |   | — |   |   |   | 1,647 |   |   |   | (42 | ) |   |   | 1,647 |   |   |   | (42 | ) |
|                                  |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total temporarily impaired securities |   | $                         | 26,365  |   |   | $ | (377 | ) |   | $ | 8,952 |   |   | $ | (5,145 | ) |   | $ | 35,317 |   |   | $ | (5,522 | ) |
|                                  |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to Maturity                      |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities            |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies         |   | $                         | — |   |   | $ | — |   |   | $ | 27 |   |   | $ | (3 | ) |   | $ | 27 |   |   | $ | (3 | ) |
| Private labeled                       |   |                      | 239     |   |   |   | (559 | ) |   |   | 1,494 |   |   |   | (811 | ) |   |   | 1,733 |   |   |   | (1,370 | ) |
| Collateralized mortgage obligations   |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Private labeled                       |   |                      | 199     |   |   |   | (157 | ) |   |   | 420 |   |   |   | (475 | ) |   |   | 619 |   |   |   | (632 | ) |
|                                  |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total temporarily impaired securities |   | $                         | 438     |   |   | $ | (716 | ) |   | $ | 1,941 |   |   | $ | (1,289 | ) |   | $ | 2,379 |   |   | $ | (2,005 | ) |

----

----

|   | · | Detailed credit and structural evaluation of each piece of collateral in the trust preferred securities; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | Collateral performance projections for each piece of collateral in the trust preferred security; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | Terms of the trust preferred structure, as laid out in the indenture; and |
|--------|--------|---------------------------------------------------------------------------|

|   | · | Discounted cash flow modeling. |
|--------|--------|--------------------------------|

----

|                                                                                |   | Accumulated Credit Losses |   |   | Accumulated Credit Losses |   |
|-------------------------------------------------------------------------------------|--------|---------------------------|--------|--------|--------------------------------|--------|
|                                                                                |   | 2010                      |   |   | 2009                           |   |
|                                                                                |   |                      |   |   |                           |   |
| Credit losses on debt securities held                                               |   |                      |   |   |                           |   |
| Beginning of year                                                                   |   | $                         | (3,905 | )      |                           | $      | (1,350 | ) |
| Additions related to increases in previously recognized other-than-temporary losses |   |                      | (841   | )      |                           |   | (2,555 | ) |
|                                                                                |   |                      |   |   |                           |   |   |   |
| As of December 31                                                                   |   | $                         | (4,746 | )      |                           | $      | (3,905 | ) |

|                                                                                    |   | Available for Sale |    |
|-----------------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                                    |   | AmortizedCost      |    |   | FairValue |   |
|             After ten years |   | $                  | 17,273  |   |   | $ | 12,948 |   |
| Mortgage-backed securities                                                              |   |               |    |   |   |   |   |   |
| Government sponsored agencies                                                           |   |               | 119,017 |   |   |   | 118,275 |   |
| Collateralized mortgage obligations                                                     |   |               |    |   |   |   |   |   |
| Government sponsored agencies                                                           |   |               | 112,615 |   |   |   | 112,224 |   |
| Marketable equity securities                                                            |   |               | 1,723   |   |   |   | 1,702 |   |
| Small Business Administration                                                           |   |               | 16      |   |   |   | 16 |   |
|                                                                                    |   |               |    |   |   |   |   |   |
| Totals                                                                                  |   | $                  | 250,644 |   |   | $ | 245,165 |   |

----

| Note 6: | Fair Values of Financial Instruments |
|---------|--------------------------------------|

|   | Level 1 | Quoted prices in active markets for identical assets or liabilities |
|--------|---------|---------------------------------------------------------------------|

|   | Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   |       |    |   | Fair Value Measurements Using |   |
|-------------------------------------|--------|------------|---------|--------|-------------------------------|--------|
|                                |   | Fair Value |    |   | Level 1                       |   |   | Level 2 |   |   | Level 3 |   |
| December 31, 2010                   |   |       |    |   |                          |   |   |   |   |   |   |   |
| Mortgage-backed securities          |   |       |    |   |                          |   |   |   |   |   |   |   |
| Government sponsored agencies       |   | $          | 118,275 |   |                          | $      | — |   |   | $ | 118,275 |   |   | $ | — |   |
| Collateralized mortgage obligations |   |       |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies       |   |       | 112,224 |   |                          |   | — |   |   |   | 112,224 |   |   |   | — |   |
| Federal agencies                    |   |       | 7,821   |   |                          |   | — |   |   |   | 7,821 |   |   |   | — |   |
| Municipals                          |   |       | 2,482   |   |                          |   | — |   |   |   | 2,482 |   |   |   | — |   |
| Small Business Administration       |   |       | 16      |   |                          |   | — |   |   |   | 16 |   |   |   | — |   |
| Corporate obligations               |   |       | 2,645   |   |                          |   | — |   |   |   | — |   |   |   | 2,645 |   |
| Marketable equity securities        |   |       | 1,702   |   |                          |   | 1,702 |   |   |   | — |   |   |   | — |   |
|                                |   |       |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities       |   | $          | 245,165 |   |                          | $      | 1,702 |   |   | $ | 240,818 |   |   | $ | 2,645 |   |
|                                |   |       |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009                   |   |       |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities          |   |       |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies       |   | $          | 29,890  |   |                          | $      | — |   |   | $ | 29,890 |   |   | $ | — |   |
| Collateralized mortgage obligations |   |       |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Government sponsored agencies       |   |       | 75,759  |   |                          |   | — |   |   |   | 75,759 |   |   |   | — |   |
| Private labeled                     |   |       | 11,270  |   |                          |   | — |   |   |   | 11,270 |   |   |   | — |   |
| Municipals                          |   |       | 9,656   |   |                          |   | — |   |   |   | 9,656 |   |   |   | — |   |
| Small Business Administration       |   |       | 157     |   |                          |   | — |   |   |   | 157 |   |   |   | — |   |
| Corporate obligations               |   |       | 2,539   |   |                          |   | — |   |   |   | — |   |   |   | 2,539 |   |
| Marketable equity securities        |   |       | 1,643   |   |                          |   | 1,643 |   |   |   | — |   |   |   | — |   |
|                                |   |       |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities       |   | $          | 130,914 |   |                          | $      | 1,643 |   |   | $ | 126,732 |   |   | $ | 2,539 |   |
|                                |   |       |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                                                           |   | 2010   |   |   | 2009   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                           |   |   |   |   |   |   |
| Beginning balance                                                                                                                                                                              |   | $      | 2,539  |   |   | $      | 6,317 |   |
|                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Total realized and unrealized gains (losses)                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Included in net income                                                                                                                                                                         |   |   | (416   | )      |   |   | (2,007 | ) |
| Included in other comprehensive income (loss)                                                                                                                                                  |   |   | 540    |   |   |   | (1,811 | ) |
| Purchases, issuances and settlements                                                                                                                                                           |   |   | (18    | )      |   |   | 40 |   |
|                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Ending balance                                                                                                                                                                                 |   | $      | 2,645  |   |   | $      | 2,539 |   |
|                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Total gains or losses for the period included in net income (loss) attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date |   | $      | (416   | )      |   | $      | (2,007 | ) |

----

|                      |   |       |   |   | Fair Value Measurements Using |   |
|---------------------------|--------|------------|--------|--------|-------------------------------|--------|
|                      |   | Fair Value |   |   | Level 1                       |   |   | Level 2 |   |   | Level 3 |   |
|                      |   |       |   |   |                          |   |   |   |   |   |   |   |
| December 31, 2010         |   |       |   |   |                          |   |   |   |   |   |   |   |
| Impaired loans            |   | $          | 15,204 |   |                          | $      | — |   |   | $ |   |   |   | $ | 15,204 |   |
| Other real estate owned   |   |       | 1,030  |   |                          |   | — |   |   |   | — |   |   |   | 1,030 |   |
| Mortgage servicing rights |   |       | 3,349  |   |                          |   | — |   |   |   | — |   |   |   | 3,349 |   |
| Loans held for sale       |   |       | 5,057  |   |                          |   | 5,057 |   |   |   | — |   |   |   | — |   |
|                      |   |       |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009         |   |       |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Impaired loans            |   | $          | 4,614  |   |                          | $      | — |   |   | $ | — |   |   | $ | 4,614 |   |
| Other real estate owned   |   |       | 977    |   |                          |   | — |   |   |   | — |   |   |   | 977 |   |

----

----

|                                          |   | 2010           |      |   | 2009      |   |
|-----------------------------------------------|--------|----------------|-----------|--------|-----------|--------|
|                                          |   | CarryingAmount |      |   | FairValue |   |   | CarryingAmount |   |   | FairValue |   |
| Assets                                        |   |           |      |   |      |   |   |   |   |   |   |   |
| Cash and cash equivalents                     |   | $              | 26,821    |   |      | $      | 26,821 |   |   | $ | 46,341 |   |   | $ | 46,341 |   |
| Investment securities held-to-maturity        |   |           | —   |   |      |   | — |   |   |   | 8,147 |   |   |   | 6,333 |   |
| Loans held for sale                           |   |           | 10,483    |   |      |   | 10,483 |   |   |   | 2,521 |   |   |   | 2,527 |   |
| Loans                                         |   |           | 978,901   |   |      |   | 997,018 |   |   |   | 1,059,694 |   |   |   | 1,086,805 |   |
| FHLB stock                                    |   |           | 16,682    |   |      |   | 16,682 |   |   |   | 18,632 |   |   |   | 18,632 |   |
| Interest receivable                           |   |           | 4,627     |   |      |   | 4,627 |   |   |   | 4,376 |   |   |   | 4,376 |   |
|                                          |   |           |      |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                   |   |           |      |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                      |   |           | 1,121,569 |   |      |   | 1,080,131 |   |   |   | 1,045,196 |   |   |   | 1,007,530 |   |
| FHLB advances                                 |   |           | 128,537   |   |      |   | 133,258 |   |   |   | 197,960 |   |   |   | 194,717 |   |
| Other borrowings                              |   |           | 13,167    |   |      |   | 14,067 |   |   |   | 14,114 |   |   |   | 15,083 |   |
| Interest payable                              |   |           | 995       |   |      |   | 995 |   |   |   | 1,192 |   |   |   | 1,192 |   |
| Advances by borrowers for taxes and insurance |   |           | 1,661     |   |      |   | 1,661 |   |   |   | 1,734 |   |   |   | 1,734 |   |

| Note 7: | Loans and Allowance |
|---------|---------------------|

|                                 |   | 2010   |    |   | 2009   |   |
|--------------------------------------|--------|--------|---------|--------|--------|--------|
| Real estate loans                    |   |   |    |   |   |   |
| One-to-four family                   |   | $      | 458,019 |   |   | $      | 478,311 |   |
| Commercial                           |   |   | 199,517 |   |   |   | 206,944 |   |
| Construction and development         |   |   | 49,803  |   |   |   | 53,045 |   |
|                                 |   |   | 707,339 |   |   |   | 738,300 |   |
| Consumer loans                       |   |   |    |   |   |   |   |   |
| Auto                                 |   |   | 16,047  |   |   |   | 18,848 |   |
| Residential                          |   |   | 103,566 |   |   |   | 107,046 |   |
| Boat/RVs                             |   |   | 102,015 |   |   |   | 127,244 |   |
| Other                                |   |   | 6,157   |   |   |   | 6,650 |   |
|                                 |   |   | 227,785 |   |   |   | 259,788 |   |
| Commercial business loans            |   |   | 64,611  |   |   |   | 77,384 |   |
| Total loans                          |   |   | 999,735 |   |   |   | 1,075,472 |   |
|                                 |   |   |    |   |   |   |   |   |
| Undisbursed loans in process         |   |   | (7,212  | )      |   |   | (2,546 | ) |
| Unamortized deferred loan costs, net |   |   | 2,750   |   |   |   | 3,182 |   |
| Allowance for loan losses            |   |   | (16,372 | )      |   |   | (16,414 | ) |
|                                 |   |   |    |   |   |   |   |   |
| Net loans                            |   | $      | 978,901 |   |   | $      | 1,059,694 |   |

----

|                         |   | 2010   |   |
|------------------------------|--------|--------|--------|
| Commercial                   |   |   |   |
| Real Estate                  |   | $      | 6,040  |   |
| Construction and development |   |   | 7,399  |   |
| Other                        |   |   | 1,019  |   |
| Residential Mortgage         |   |   | 12,012 |   |
| Consumer                     |   |   |   |   |
| Real estate                  |   |   | 2,716  |   |
| Auto                         |   |   | 16     |   |
| Boat/RV                      |   |   | 870    |   |
| Other                        |   |   | 111    |   |
|                         |   |   |   |   |
|                         |   | $      | 30,183 |   |

|                 |   |       |   |   |       |   |   |    |   |   |       |   |   |    |   |   |       |   |    | Total Loans  |   |
|----------------------|--------|------------|--------|--------|------------|--------|--------|---------|--------|--------|------------|--------|--------|---------|--------|--------|------------|--------|---------|--------------|--------|
|                 |   |       |   |   |       |   |   | Greater |   |   |       |   |   |    |   |   | Total      |   |    | > 90 Days |   |
|                 |   | 30-59 Days |   |   | 60-89 Days |   |   | Than 90 |   |   | Total Past |   |   |    |   |   | Loans      |   |    | and          |   |
|                 |   | Past Due   |   |   | Past Due   |   |   | Days    |   |   | Due        |   |   | Current |   |   | Receivable |   |    | Accruing     |   |
| Commercial           |   |       |   |   |       |   |   |    |   |   |       |   |   |    |   |   |       |   |    |         |   |
| Real Estate          |   | $          | 1,883  |   |       | $      | 139    |    |   | $      | 6,040      |   |   | $       | 8,062  |   |       | $      | 191,455 |         |   | $ | 199,517 |   |   | $ | - |   |
| Construction         |   |       |   |   |       |   |   |    |   |   |       |   |   |    |   |   |       |   |    |         |   |   |   |   |   |   |   |   |
| and development      |   |       | 398    |   |       |   | 205    |    |   |   | 7,399      |   |   |    | 8,002  |   |       |   | 41,801  |         |   |   | 49,803 |   |   |   | - |   |
| Other                |   |       | 4,067  |   |       |   | 173    |    |   |   | 1,019      |   |   |    | 5,259  |   |       |   | 59,352  |         |   |   | 64,611 |   |   |   | - |   |
| Residential Mortgage |   |       | 10,386 |   |       |   | 4,367  |    |   |   | 13,461     |   |   |    | 28,214 |   |       |   | 429,805 |         |   |   | 458,019 |   |   |   | 1,449 |   |
| Consumer             |   |       |   |   |       |   |   |    |   |   |       |   |   |    |   |   |       |   |    |         |   |   |   |   |   |   |   |   |
| Real estate          |   |       | 1,920  |   |       |   | 1,754  |    |   |   | 2,755      |   |   |    | 6,429  |   |       |   | 97,137  |         |   |   | 103,566 |   |   |   | 39 |   |
| Auto                 |   |       | 157    |   |       |   | 74     |    |   |   | 21         |   |   |    | 252    |   |       |   | 15,795  |         |   |   | 16,047 |   |   |   | 4 |   |
| Boat/RV              |   |       | 3,215  |   |       |   | 957    |    |   |   | 924        |   |   |    | 5,096  |   |       |   | 96,919  |         |   |   | 102,015 |   |   |   | 54 |   |
| Other                |   |       | 281    |   |       |   | 60     |    |   |   | 110        |   |   |    | 451    |   |       |   | 5,706   |         |   |   | 6,157 |   |   |   | - |   |
|                 |   |       |   |   |       |   |   |    |   |   |       |   |   |    |   |   |       |   |    |         |   |   |   |   |   |   |   |   |
|                 |   | $          | 22,307 |   |       | $      | 7,729  |    |   | $      | 31,729     |   |   | $       | 61,765 |   |       | $      | 937,970 |         |   | $ | 999,735 |   |   | $ | 1,546 |   |

----

|                                         |   |     |   |   |      |   |   |      |   |   | Average       |   |   |       |   |
|----------------------------------------------|--------|----------|--------|--------|-----------|--------|--------|-----------|--------|--------|---------------|--------|--------|------------|--------|
|                                         |   |     |   |   | Unpaid    |   |   |      |   |   | Investment in |   |   | Interest   |   |
|                                         |   | Recorded |   |   | Principal |   |   | Specific  |   |   | Impaired      |   |   | Income     |   |
|                                         |   | Balance  |   |   | Balance   |   |   | Allowance |   |   | Loans         |   |   | Recognized |   |
| Loans without a specific valuation allowance |   |     |   |   |      |   |   |      |   |   |          |   |   |       |   |
| Commercial                                   |   |     |   |   |      |   |   |      |   |   |          |   |   |       |   |
| Real Estate                                  |   | $        | 5,222  |   |      | $      | 5,699  |      |   | $      | -             |   |   | $          | 3,826  |   |   | $ | 137 |   |
| Construction and development                 |   |     | 2,241  |   |      |   | 2,441  |      |   |   | -             |   |   |       | 2,390  |   |   |   | 27 |   |
| Other                                        |   |     | 762    |   |      |   | 762    |      |   |   | -             |   |   |       | 388    |   |   |   | 12 |   |
| Residential Mortgage                         |   |     | 6,419  |   |      |   | 6,419  |      |   |   | -             |   |   |       | 4,580  |   |   |   | 183 |   |
|                                         |   |     |   |   |      |   |   |      |   |   |          |   |   |       |   |   |   |   |   |   |
| Loans with a specific valuation allowance    |   |     |   |   |      |   |   |      |   |   |          |   |   |       |   |   |   |   |   |   |
| Commercial                                   |   |     |   |   |      |   |   |      |   |   |          |   |   |       |   |   |   |   |   |   |
| Real Estate                                  |   |     | 5,324  |   |      |   | 5,724  |      |   |   | 515           |   |   |       | 5,395  |   |   |   | 329 |   |
| Construction and development                 |   |     | 6,760  |   |      |   | 6,760  |      |   |   | 825           |   |   |       | 4,238  |   |   |   | 226 |   |
| Other                                        |   |     | -      |   |      |   | -      |      |   |   | -             |   |   |       |   |   |   |   |   |   |
| Residential Mortgage                         |   |     | 509    |   |      |   | 509    |      |   |   | 69            |   |   |       | 128    |   |   |   | - |   |
|                                         |   |     |   |   |      |   |   |      |   |   |          |   |   |       |   |   |   |   |   |   |
| Total                                        |   |     |   |   |      |   |   |      |   |   |          |   |   |       |   |   |   |   |   |   |
| Commercial                                   |   | $        | 20,309 |   |      | $      | 21,386 |      |   | $      | 1,340         |   |   | $          | 16,237 |   |   | $ | 731 |   |
| Consumer                                     |   | $        | -      |   |      | $      | -      |      |   | $      | -             |   |   | $          | -      |   |   | $ | - |   |
| Residential                                  |   | $        | 6,928  |   |      | $      | 6,928  |      |   | $      | 69            |   |   | $          | 4,708  |   |   | $ | 183 |   |

----

----

| Commercial Credit Exposure Credit Risk Profile |        |
|------------------------------------------------|-------------|
|                                           |        |   |   |   |   |   |   |   |   |
|                                           |        |   |   |   | Construction and |   |   |   |   |
| Internal Rating                                | Real estate |   |   | Development |   |   | Other |   |
|                                           |        |   |   |   |   |   |   |   |   |
| Pass                                           |        | $ | 168,855 |   |   | $ | 22,046 |   |   | $ | 56,587 |   |
| Special Mention                                |        |   | 9,934 |   |   |   | 10,313 |   |   |   | 5,471 |   |
| Substandard                                    |        |   | 18,190 |   |   |   | 17,411 |   |   |   | 1,665 |   |
| Doubtful                                       |        |   | 2,538 |   |   |   | 33 |   |   |   | 888 |   |
|                                           |        |   |   |   |   |   |   |   |   |   |   |   |
| Total                                          |        | $ | 199,517 |   |   | $ | 49,803 |   |   | $ | 64,611 |   |

|        |   | Retail Credit Exposure Credit Risk Profile |    |
|-------------|--------|--------------------------------------------|---------|
|        |   | Mortgage                                   |    |   | Consumer |   |
|        |   | Residential                                |    |   | Real Estate |   |   | Auto |   |   | Boat/RV |   |   | Other |   |
|        |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Pass        |   | $                                          | 440,296 |   |   | $ | 99,041 |   |   | $ | 16,031 |   |   | $ | 101,097 |   |   | $ | 5,977 |   |
| Substandard |   |                                       | 17,723  |   |   |   | 4,525 |   |   |   | 16 |   |   |   | 918 |   |   |   | 180 |   |
|        |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total       |   | $                                          | 458,019 |   |   | $ | 103,566 |   |   | $ | 16,047 |   |   | $ | 102,015 |   |   | $ | 6,157 |   |

----

----

|                                    |   |  Commercial |    |   | Mortgage |   |   |  Consumer  |   |
|-----------------------------------------|--------|------------------|---------|--------|----------|--------|--------|-----------------|--------|
|                                    |   |             |    |   |     |   |   | Construction    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                    |   | Real Estate      |    |   | Other    |   |   | and Development |   |   | Residential |   |   | Real Estate |   |   | Auto |   |   | Boat/RV |   |   | Other |   |   | Total |   |
| Allowance for loan losses:              |   |             |    |   |     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, beginning of year              |   | $                | 7,072   |   |     | $      | 1,721  |            |   | $ | 1,210 |   |   | $ | 2,359 |   |   | $ | 1,588 |   |   | $ | 207 |   |   | $ | 2,144 |   |   | $ | 113 |   |   | $ | 16,414 |   |
| Provision charged to expense            |   |             | 1,300   |   |     |   | 180    |            |   |   | 300 |   |   |   | 2,900 |   |   |   | 940 |   |   |   | 86 |   |   |   | 1,100 |   |   |   | 244 |   |   |   | 7,050 |   |
| Losses charged off                      |   |             | 1,343   |   |     |   | 209    |            |   |   | 200 |   |   |   | 3,345 |   |   |   | 914 |   |   |   | 62 |   |   |   | 1,339 |   |   |   | 880 |   |   |   | 8,292 |   |
| Recoveries                              |   |             | 68      |   |     |   | 25     |            |   |   | - |   |   |   | 298 |   |   |   | 2 |   |   |   | 19 |   |   |   | 103 |   |   |   | 685 |   |   |   | 1,200 |   |
| Balance, end of period                  |   | $                | 7,097   |   |     | $      | 1,717  |            |   | $ | 1,310 |   |   | $ | 2,212 |   |   | $ | 1,616 |   |   | $ | 250 |   |   | $ | 2,008 |   |   | $ | 162 |   |   | $ | 16,372 |   |
|                                    |   |             |    |   |     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                         |   |             |    |   |     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluation for impairment  |   | $                | 515     |   |     | $      | -      |            |   | $ | 825 |   |   | $ | 69 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 1,409 |   |
| Collectively evaluated for impairment   |   | $                | 6,582   |   |     | $      | 1,717  |            |   | $ | 485 |   |   | $ | 2,143 |   |   | $ | 1,616 |   |   | $ | 250 |   |   | $ | 2,008 |   |   | $ | 162 |   |   | $ | 14,963 |   |
| Loans acquired with deteriorated credit |   |             |    |   |     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| quality                                 |   | $                | -       |   |     | $      | -      |            |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                    |   |             |    |   |     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans:                                  |   |             |    |   |     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                          |   |             |    |   |     |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment   |   | $                | 10,546  |   |     | $      | 762    |            |   | $ | 9,001 |   |   | $ | 6,928 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 27,237 |   |
| Collectively evaluated for imapirment   |   | $                | 188,971 |   |     | $      | 63,849 |            |   | $ | 40,802 |   |   | $ | 451,091 |   |   | $ | 103,566 |   |   | $ | 16,047 |   |   | $ | 102,015 |   |   | $ | 6,157 |   |   | $ | 972,498 |   |

|                              |   | 2009   |    |   | 2008   |   |
|-----------------------------------|--------|--------|---------|--------|--------|--------|
| Allowance for loan losses         |   |   |    |   |   |   |
| Balances, January 1               |   | $      | 15,107  |   |   | $      | 8,352 |   |
| Provision for losses              |   |   | 6,500   |   |   |   | 7,020 |   |
| Allowance acquired in acquisition |   |   | — |   |   |   | 2,954 |   |
| Recoveries on loans               |   |   | 1,063   |   |   |   | 1,213 |   |
| Loans charged off                 |   |   | (6,256  | )      |   |   | (4,432 | ) |
| Balances, December 31             |   | $      | 16,414  |   |   | $      | 15,107 |   |

----

| Note 8: | Related Party Transactions |
|---------|----------------------------|

| Balances, January 1, 2010          |   | $      | 8,500  |   |
|------------------------------------|--------|--------|--------|--------|
| Change in composition              |   |   | (186   | )      |
| New loans, including renewals      |   |   | 4,025  |   |
| Payments, etc., including renewals |   |   | (4,003 | )      |
|                               |   |   |   |   |
| Balances, December 31, 2010        |   | $      | 8,336  |   |

| Note 9: | Premises and Equipment |
|---------|------------------------|

|                                      |   | 2010   |    |   | 2009   |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|
| Cost                                      |   |   |    |   |   |   |
| Land                                      |   | $      | 12,766  |   |   | $      | 12,758 |   |
| Buildings and land improvements           |   |   | 25,522  |   |   |   | 25,267 |   |
| Equipment                                 |   |   | 14,119  |   |   |   | 13,738 |   |
| Total cost                                |   |   | 52,407  |   |   |   | 51,763 |   |
| Accumulated depreciation and amortization |   |   | (19,441 | )      |   |   | (17,207 | ) |
|                                      |   |   |    |   |   |   |   |   |
| Net                                       |   | $      | 32,966  |   |   | $      | 34,556 |   |

| Note 10: | Investment In Limited Partnerships |
|----------|------------------------------------|

|                                                     |   | 2010   |   |   | 2009   |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Pedcor Investments 1997-XXVIII (99.00 percent ownership) |   | $      | 1,698  |   |   |   | 1,981 |   |
| Pedcor Investments 1987-XXXI (49.50 percent ownership)   |   |   | 251    |   |   |   | 313 |   |
| Pedcor Investments 2000-XLI (50.00 percent ownership)    |   |   | 660    |   |   |   | 742 |   |
| Pedcor Investments 2001-LI (9.90 percent ownership)      |   |   | 174    |   |   |   | 223 |   |
| Pedcor Investments 2008-CIII (21.50 percent ownership)   |   |   | 841    |   |   |   | 902 |   |
|                                                     |   | $      | 3,624  |   |   | $      | 4,161 |   |

----

|                                   |   | 2010   |   |   | 2009   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|
| Combined condensed balance sheets      |   |   |   |   |   |   |
| Assets                                 |   |   |   |   |   |   |
| Cash                                   |   | $      | 953    |   |   | $      | 573 |   |
| Land and property                      |   |   | 53,649 |   |   |   | 55,070 |   |
| Other assets                           |   |   | 1,804  |   |   |   | 2,174 |   |
|                                   |   |   |   |   |   |   |   |   |
| Total assets                           |   | $      | 56,406 |   |   | $      | 57,817 |   |
| Liabilities                            |   |   |   |   |   |   |   |   |
| Notes payable                          |   | $      | 46,022 |   |   | $      | 47,878 |   |
| Other liabilities                      |   |   | 1,096  |   |   |   | 1,087 |   |
| Total liabilities                      |   |   | 47,118 |   |   |   | 48,965 |   |
|                                   |   |   |   |   |   |   |   |   |
| Partners' equity (deficit)             |   |   |   |   |   |   |   |   |
| General partners                       |   |   | (3,383 | )      |   |   | (3,124 | ) |
| Limited partners                       |   |   | 12,671 |   |   |   | 11,976 |   |
| Total partners’ equity           |   |   | 9,288  |   |   |   | 8,852 |   |
|                                   |   |   |   |   |   |   |   |   |
| Total liabilities and partners' equity |   | $      | 56,406 |   |   | $      | 57,817 |   |

|                                        |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Combined condensed statements of operations |   |   |   |   |   |   |   |   |   |
| Total revenue                               |   | $      | 6,213  |   |   | $      | 5,394  |   |   | $ | 5,994 |   |
| Total expenses                              |   |   | (7,053 | )      |   |   | (6,027 | )      |   |   | (6,833 | ) |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                    |   | $      | (840   | )      |   | $      | (633   | )      |   | $ | (839 | ) |

| Note 11: | Core Deposit and Other Intangibles |
|----------|------------------------------------|

|          |   | 2010   |   |   | 2009   |   |
|---------------|--------|--------|--------|--------|--------|--------|
| Core deposits |   | $      | 4,090  |   |   | $      | 5,355 |   |
| Other         |   |   | 443    |   |   |   | 526 |   |
|          |   | $      | 4,533  |   |   | $      | 5,881 |   |

----

| 2011       |   | $      | 1,160 |   |
|------------|--------|--------|-------|--------|
| 2012       |   |   | 962   |   |
| 2013       |   |   | 782   |   |
| 2014       |   |   | 616   |   |
| 2015       |   |   | 458   |   |
| Thereafter |   |   | 555   |   |
|       |   | $      | 4,533 |   |

| Note 12: | Goodwill |
|----------|----------|

|                              |   | 2008   |    |
|-----------------------------------|--------|--------|---------|
| Balance as of January 1           |   | $      | 14,188  |   |
| Goodwill acquired during the year |   |   | 14,781  |   |
| Impairment losses                 |   |   | (28,969 | ) |
|                              |   |   |    |   |
| Balance as of December 31         |   | $      | — |   |

----

| Note 13: | Deposits |
|----------|----------|

|                                                     |   | 2010   |      |   | 2009   |   |
|----------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Noninterest-bearing demand                               |   | $      | 113,455   |   |   | $      | 98,025 |   |
| Interest-bearing demand                                  |   |   | 179,504   |   |   |   | 154,431 |   |
| Savings                                                  |   |   | 88,687    |   |   |   | 84,553 |   |
| Money market savings                                     |   |   | 67,987    |   |   |   | 60,479 |   |
| Certificates and other time deposits of $100,000 or more |   |   | 229,390   |   |   |   | 212,457 |   |
| Other certificates                                       |   |   | 442,546   |   |   |   | 435,251 |   |
|                                                     |   |   |      |   |   |   |   |   |
| Total deposits                                           |   | $      | 1,121,569 |   |   | $      | 1,045,196 |   |

| 2011       |   | $      | 364,050 |   |
|------------|--------|--------|---------|--------|
| 2012       |   |   | 99,033  |   |
| 2013       |   |   | 100,952 |   |
| 2014       |   |   | 47,920  |   |
| 2015       |   |   | 49,590  |   |
| Thereafter |   |   | 10,391  |   |
|       |   |   |    |   |
|       |   | $      | 671,936 |   |

| Note 14: | Federal Home Loan Bank Advances |
|----------|---------------------------------|

| Maturities Years Ending December 31 |   |   |    |
|-------------------------------------|--------|--------|---------|
| 2011                                |   | $      | 53,486  |   |
| 2012                                |   |   | 45,306  |   |
| 2013                                |   |   | 17,575  |   |
| 2014                                |   |   | 9,347   |   |
| 2015                                |   |   | 1,113   |   |
| Thereafter                          |   |   | 1,710   |   |
|                                |   |   |    |   |
|                                |   | $      | 128,537 |   |

----

| Note 15: | Other Borrowings |
|----------|------------------|

|  Principal Payments Due in Years Ending December 31 |   |   |   |
|----------------------------------------------------------|--------|--------|--------|
| 2011                                                     |   | $      | 800    |   |
| 2012                                                     |   |   | 848    |   |
| 2013                                                     |   |   | 901    |   |
| 2014                                                     |   |   | 6,687  |   |
|                                                     |   |   |   |   |
| Total note payable                                       |   | $      | 9,236  |   |

|                   |   | 2010   |   |   | 2009   |   |
|------------------------|--------|--------|--------|--------|--------|--------|
|                   |   |   |   |   |   |   |
| Note payable           |   | $      | 9,236  |   |   | $      | 10,226 |   |
| Subordinate debentures |   |   | 3,931  |   |   |   | 3,888 |   |
|                   |   |   |   |   |   |   |   |   |
| Total                  |   | $      | 13,167 |   |   | $      | 14,114 |   |

----

| Note 16: | Loan Servicing |
|----------|----------------|

|                   |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Loans serviced for     |   |   |    |   |   |   |    |   |   |
| Freddie Mac            |   | $      | 418,003 |   |   | $      | 431,815 |   |   | $ | 384,808 |   |
| Fannie Mae             |   |   | 1,363   |   |   |   | 1,589   |   |   |   | 2,148 |   |
| Federal Home Loan Bank |   |   | 20,375  |   |   |   | 27,012  |   |   |   | 37,070 |   |
| Other investors        |   |   | 1,874   |   |   |   | 2,282   |   |   |   | 4,064 |   |
|                   |   |   |    |   |   |   |    |   |   |   |   |   |
|                   |   | $      | 441,615 |   |   | $      | 462,698 |   |   | $ | 428,090 |   |

|                             |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|----------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Mortgage Servicing Rights        |   |   |    |   |   |   |    |   |   |
| Balances, January 1              |   | $      | 3,984   |   |   | $      | 3,276   |   |   | $ | 1,126 |   |
| Servicing rights capitalized     |   |   | 682     |   |   |   | 1,579   |   |   |   | 823 |   |
| Servicing rights acquired        |   |   | — |   |   |   | — |   |   |   | 1,844 |   |
| Amortization of servicing rights |   |   | (992    | )      |   |   | (871    | )      |   |   | (517 | ) |
|                             |   |   | 3,674   |   |   |   | 3,984   |   |   |   | 3,276 |   |
| Valuation allowance              |   |   | (325    | )      |   |   | (500    | )      |   |   | (500 | ) |
| Balances, December 31            |   | $      | 3,349   |   |   | $      | 3,484   |   |   | $ | 2,776 |   |

|                            |   | 2010   |   |   | 2009   |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|
| Mortgage Servicing Rights       |   |   |   |   |   |   |
| Fair value, beginning of period |   | $      | 3,510  |   |   | $      | 2,776 |   |
| Fair value, end of period       |   |   | 3,350  |   |   |   | 3,510 |   |

----

|                       |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|----------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Balance, beginning of year |   | $      | 500     |   |   | $      | 500     |   |   | $ | — |   |
| Additions                  |   |   | — |   |   |   | — |   |   |   | 500 |   |
| Reductions                 |   |   | (175    | )      |   |   | — |   |   |   | — |   |
|                       |   |   |    |   |   |   |    |   |   |   |   |   |
| Balances, end of year      |   | $      | 325     |   |   | $      | 500     |   |   | $ | 500 |   |

| Note 17: | Income Tax |
|----------|------------|

|                                                      |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|-----------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Income tax expense (credit)                               |   |   |    |   |   |   |    |   |   |
| Currently payable                                         |   |   |    |   |   |   |    |   |   |
| Federal                                                   |   | $      | 707     |   |   | $      | (1,270  | )      |   | $ | 281 |   |
| State                                                     |   |   | 540     |   |   |   | 9       |   |   |   | 356 |   |
| Deferred                                                  |   |   |    |   |   |   |    |   |   |   |   |   |
| Federal                                                   |   |   | 969     |   |   |   | 1,481   |   |   |   | (7,781 | ) |
| State                                                     |   |   | (540    | )      |   |   | (9      | )      |   |   | (1,341 | ) |
|                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Total income tax expense (credit)                         |   | $      | 1,676   |   |   | $      | 211     |   |   | $ | (8,485 | ) |
|                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Reconciliation of federal statutory to actual tax expense |   |   |    |   |   |   |    |   |   |   |   |   |
| Federal statutory income tax at 34%                       |   | $      | 2,797   |   |   | $      | 1,147   |   |   | $ | (10,398 | ) |
| Effect of state income taxes                              |   |   | — |   |   |   | — |   |   |   | (650 | ) |
| Low income housing credits                                |   |   | (592    | )      |   |   | (874    | )      |   |   | (1,214 | ) |
| Tax-exempt income                                         |   |   | (723    | )      |   |   | (733    | )      |   |   | (539 | ) |
| Other-than-temporary-impairment, securities               |   |   | — |   |   |   | 615     |   |   |   | — |   |
| Goodwill impairment                                       |   |   | — |   |   |   | — |   |   |   | 4,280 |   |
| Other                                                     |   |   | 194     |   |   |   | 56      |   |   |   | 36 |   |
|                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Actual tax expense (credit)                               |   | $      | 1,676   |   |   | $      | 211     |   |   | $ | (8,485 | ) |
|                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Effective tax rate                                        |   |   | 20.37   | %      |   |   | 6.25    | %      |   |   | (27.74 | )% |

----

|                                             |   | 2010   |    |   | 2009   |   |
|--------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Assets                                           |   |   |    |   |   |   |
| Unrealized loss on securities available for sale |   | $      | 1,970   |   |   | $      | 843 |   |
| Allowance for loan losses                        |   |   | 6,902   |   |   |   | 6,815 |   |
| Deferred compensation                            |   |   | 2,992   |   |   |   | 3,516 |   |
| Business tax and AMT credit carryovers           |   |   | 7,188   |   |   |   | 5,386 |   |
| Capital loss carryover                           |   |   | 1,502   |   |   |   | 1,860 |   |
| Net operating loss carryover                     |   |   | 1,839   |   |   |   | 2,057 |   |
| Goodwill impairment                              |   |   | 4,408   |   |   |   | 4,859 |   |
| Other                                            |   |   | 2,283   |   |   |   | 2,582 |   |
| Total assets                                     |   |   | 29,084  |   |   |   | 27,918 |   |
|                                             |   |   |    |   |   |   |   |   |
| Liabilities                                      |   |   |    |   |   |   |   |   |
| Depreciation and amortization                    |   |   | (1,582  | )      |   |   | (2,036 | ) |
| FHLB stock                                       |   |   | (650    | )      |   |   | (731 | ) |
| State income tax                                 |   |   | (1,335  | )      |   |   | (1,044 | ) |
| Loan fees                                        |   |   | (502    | )      |   |   | — |   |
| Investments in limited partnerships              |   |   | (2,079  | )      |   |   | (1,830 | ) |
| Mortgage servicing rights                        |   |   | (1,344  | )      |   |   | (1,428 | ) |
| Other                                            |   |   | (227    | )      |   |   | — |   |
| Total liabilities                                |   |   | (7,719  | )      |   |   | (7,069 | ) |
|                                             |   |   |    |   |   |   |   |   |
| Valuation Allowance                              |   |   |    |   |   |   |   |   |
| Beginning balance                                |   |   | (1,335  | )      |   |   | (720 | ) |
| (Increase) decrease during period                |   |   | — |   |   |   | (615 | ) |
| Ending balance                                   |   |   | (1,335  | )      |   |   | (1,335 | ) |
|                                             |   |   |    |   |   |   |   |   |
| Net deferred tax asset                           |   | $      | 20,030  |   |   | $      | 19,514 |   |

----

| Note 18: | Other Comprehensive Income (Loss) |
|----------|-----------------------------------|

|                                                                                                                                         |   | 2010              |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                                                                         |   | Before-Tax Amount |   |   | Tax(Expense)Benefit |   |   | Net-of-Tax Amount |   |
|                                                                                                                                         |   |              |   |   |   |   |   |   |   |
| Net realized loss on securities available-for-sale                                                                                           |   | $                 | (2,600 | ) |   | $ | 872 |   |   | $ | (1,728 | ) |
| Less: reclassification adjustment for losses realized in net income                                                                          |   |              | (894   | ) |   |   | 304 |   |   |   | (590 | ) |
| Net unrealized loss on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income |   |              | (1,307 | ) |   |   | 444 |   |   |   | (863 | ) |
| Net unrealized loss on derivative used for cash flow hedges                                                                                  |   |              | (383   | ) |   |   | 130 |   |   |   | (253 | ) |
| Net unrealized gain relating to defined benefit plan liability                                                                               |   |              | 187    |   |   |   | (63 | ) |   |   | 124 |   |
|                                                                                                                                         |   |              |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive losses                                                                                                                   |   | $                 | (3,209 | ) |   | $ | 1,079 |   |   | $ | (2,130 | ) |

|                                                                                                                                         |   | 2009              |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                                                                         |   | Before-Tax Amount |   |   | Tax(Expense)Benefit |   |   | Net-of-Tax Amount |   |
|                                                                                                                                         |   |              |   |   |   |   |   |   |   |
| Net realized gain on securities available-for-sale                                                                                           |   | $                 | 1,825  |   |   | $ | (723 | ) |   | $ | 1,102 |   |
| Less: reclassification adjustment for losses realized in net income                                                                          |   |              | (1,465 | ) |   |   | 582 |   |   |   | (883 | ) |
| Net unrealized loss on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income |   |              | (2,796 | ) |   |   | 1,107 |   |   |   | (1,689 | ) |
| Net unrealized gain on derivative used for cash flow hedges                                                                                  |   |              | 44     |   |   |   | (15 | ) |   |   | 29 |   |
| Net unrealized loss relating to defined benefit plan liability                                                                               |   |              | (257   | ) |   |   | 102 |   |   |   | (155 | ) |
|                                                                                                                                         |   |              |   |   |   |   |   |   |   |   |   |   |
|  Other comprehensive income                                                                                                             |   | $                 | 281    |   |   | $ | 111 |   |   | $ | 170 |   |

|                                                                |   | 2008              |   |
|---------------------------------------------------------------------|--------|-------------------|--------|
|                                                                |   | Before-Tax Amount |   |   | Tax(Expense)Benefit |   |   | Net-of-Tax Amount |   |
|                                                                |   |              |   |   |   |   |   |   |   |
| Unrealized holding losses arising during the year                   |   | $                 | (6,206 | ) |   | $ | 2,458 |   |   | $ | (3,748 | ) |
| Less: reclassification adjustment for losses realized in net income |   |              | (3,716 | ) |   |   | 1,472 |   |   |   | (2,244 | ) |
| Net unrealized loss relating to defined benefit plan liability      |   |              | (182   | ) |   |   | 72 |   |   |   | (110 | ) |
|                                                                |   |              |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive losses                                          |   | $                 | (2,673 | ) |   | $ | 1,058 |   |   | $ | (1,614 | ) |

----

|                                                                                                                                         |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net unrealized gain (loss) on securities available-for-sale                                                                                  |   | $      | (4,172 | )      |   | $      | 331    |   |   | $ | (3,176 | ) |
| Net unrealized loss on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income |   |   | (1,307 | )      |   |   | (2,796 | )      |   |   | — |   |
| Net unrealized gain (loss) on derivative used for cash flow hedges                                                                           |   |   | (339   | )      |   |   | 44     |   |   |   | — |   |
| Net unrealized loss relating to defined benefit plan liability                                                                               |   |   | (251   | )      |   |   | (438   | )      |   |   | (182 | ) |
|                                                                                                                                         |   |   | (6,069 | )      |   |   | (2,859 | )      |   |   | (3,358 | ) |
| Tax benefit                                                                                                                                  |   |   | (2,081 | )      |   |   | (1,001 | )      |   |   | (1,330 | ) |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Net of tax amount                                                                                                                            |   | $      | (3,988 | )      |   | $      | (1,858 | )      |   | $ | (2,028 | ) |

| Note 19: | Commitments and Contingent Liabilities |
|----------|----------------------------------------|

|                      |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|---------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Loan commitments          |   | $      | 146,342 |   |   | $      | 145,136 |   |   | $ | 164,922 |   |
| Standby letters of credit |   |   | 2,473   |   |   |   | 5,370   |   |   |   | 7,065 |   |

----

| Note 20: | Stockholders’ Equity |
|----------|----------------------------|

| Note 21: | Capital Purchase Program |
|----------|--------------------------|

----

| Note 22: | Regulatory Capital |
|----------|--------------------|

----

|                                                |   | Actual |    |   | Required for Adequate Capital |   |   | To Be WellCapitalized |   |
|-----------------------------------------------------|--------|--------|---------|--------|-------------------------------|--------|--------|-----------------------|--------|
|                                                |   | Amount |    |   | Ratio                         |   |   | Amount                |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                                |   |   |    |   |                          |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2010                             |   |   |    |   |                          |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| Total risk-based capital (to risk-weighted assets)  |   | $      | 132,998 |   |                          |   | 13.8   | %                     |   | $ | 77,128 |   |   |   | 8.0 | % |   | $ | 96,410 |   |   |   | 10.0 | % |
| Tier 1 risk-based capital (to risk-weighted assets) |   |   | 127,812 |   |                          |   | 12.5   | %                     |   |   | 38,564 |   |   |   | 4.0 | % |   |   | 57,846 |   |   |   | 6.0 | % |
| Core capital (to adjusted total assets)             |   |   | 127,812 |   |                          |   | 9.2    | %                     |   |   | 55,713 |   |   |   | 4.0 | % |   |   | 69,641 |   |   |   | 5.0 | % |
| Core capital (to adjusted tangible assets)          |   |   | 127,812 |   |                          |   | 9.2    | %                     |   |   | 27,856 |   |   |   | 2.0 | % |   |   | N/A |   |   |   | N/A |   |
| Tangible capital (to adjusted total assets)         |   |   | 127,812 |   |                          |   | 9.2    | %                     |   |   | 20,892 |   |   |   | 1.5 | % |   |   | N/A |   |   |   | N/A |   |
|                                                |   |   |    |   |                          |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2009                             |   |   |    |   |                          |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total risk-based capital (to risk-weighted assets)  |   | $      | 133,872 |   |                          |   | 12.8   | %                     |   | $ | 83,579 |   |   |   | 8.0 | % |   | $ | 104,474 |   |   |   | 10.0 | % |
| Tier 1 risk-based capital (to risk-weighted assets) |   |   | 130,340 |   |                          |   | 11.6   | %                     |   |   | 41,790 |   |   |   | 4.0 | % |   |   | 62,685 |   |   |   | 6.0 | % |
| Core capital (to adjusted total assets)             |   |   | 130,340 |   |                          |   | 9.4    | %                     |   |   | 55,580 |   |   |   | 4.0 | % |   |   | 69,475 |   |   |   | 5.0 | % |
| Core capital (to adjusted tangible assets)          |   |   | 130,340 |   |                          |   | 9.4    | %                     |   |   | 27,790 |   |   |   | 2.0 | % |   |   | N/A |   |   |   | N/A |   |
| Tangible capital (to adjusted total assets)         |   |   | 130,340 |   |                          |   | 9.4    | %                     |   |   | 20,843 |   |   |   | 1.5 | % |   |   | N/A |   |   |   | N/A |   |

| Note 23: | Employee Benefits |
|----------|-------------------|

----

|                            |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|---------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Allocated shares                |   |   | 361,195 |   |   |   | 345,195 |   |   |   | 256,089 |   |
| Suspense shares                 |   |   | 95,354  |   |   |   | 127,138 |   |   |   | 158,922 |   |
| Committed-to-be released shares |   |   | 31,783  |   |   |   | 31,783  |   |   |   | 31,783 |   |

| Note 24: | Stock Option Plans |
|----------|--------------------|

----

|                            |   | 2010         |    |
|---------------------------------|--------|--------------|---------|
|   Options             |   |  Shares |    |   | Weighted-AverageExercisePrice |   | Weighted-Average Remaining Contractual Life |   | Aggregate Intrinsic Value |   |
| Outstanding, beginning of year  |   |         | 629,718 |   |   | $ | 11.58 |   |   |   |   |   |
| Granted                         |   |         | — |   |   |   | — |   |   |   |   |   |
| Exercised                       |   |         | — |   |   |   | — |   |   |   |   |   |
| Forfeited/expired               |   |         | — |   |   |   | — |   |   |   |   |   |
|                            |   |         |    |   |   |   |   |   |   |   |   |   |   |
| Outstanding, end of year        |   |         | 629,718 |   |   | $ | 11.58 |   | 4.2 years |   | $ | — |   |
|                            |   |         |    |   |   |   |   |   |   |   |   |   |   |
| Options exercisable at year end |   |         | 598,377 |   |   | $ | 11.58 |   |   |   |   |   |   |

----

| Note 25: | Stock Repurchase Plan |
|----------|-----------------------|

| Note 26: | Earnings Per Share |
|----------|--------------------|

|                                                                   |   | 2010         |   |
|------------------------------------------------------------------------|--------|--------------|--------|
|                                                                   |   |  Income |   |   | Weighted-AverageShares |   |   | Per-Share Amount |   |
| Basic Earnings Per Share                                               |   |         |   |   |   |   |   |   |   |
| Net income                                                             |   | $            | 6,552  |   |   |   | 6,873,508 |   |   |   |   |
| Dividends and amortization on preferred stock                          |   |         | (1,803 | ) |   |   |   |   |   |   |   |
| Income available to common stockholders                                |   |         | 4,749  |   |   |   | 6,873,508 |   |   | $ | 0.69 |   |
|                                                                   |   |         |   |   |   |   |   |   |   |   |   |   |
| Effect of Dilutive Securities                                          |   |         |   |   |   |   |   |   |   |   |   |   |
| Stock options                                                          |   |         |   |   |   |   | 22,599 |   |   |   |   |   |
|                                                                   |   |         |   |   |   |   |   |   |   |   |   |   |
| Diluted Earnings Per Share                                             |   |         |   |   |   |   |   |   |   |   |   |   |
| Income (loss) available to common stockholders and assumed conversions |   | $            | 4,749  |   |   |   | 6,896,107 |   |   | $ | 0.69 |   |

|                                                                   |   | 2009         |   |
|------------------------------------------------------------------------|--------|--------------|--------|
|                                                                   |   |  Income |   |   | Weighted-AverageShares |   |   | Per-Share Amount |   |
| Basic Earnings Per Share                                               |   |         |   |   |   |   |   |   |   |
| Net income                                                             |   | $            | 3,163  |   |   |   | 6,840,659 |   |   |   |   |
| Dividends and amortization on preferred stock                          |   |         | (1,803 | ) |   |   |   |   |   |   |   |
| Income available to common stockholders                                |   |         | 1,360  |   |   |   | 6,840,659 |   |   | $ | 0.20 |   |
|                                                                   |   |         |   |   |   |   |   |   |   |   |   |   |
| Effect of Dilutive Securities                                          |   |         |   |   |   |   |   |   |   |   |   |   |
| Stock options                                                          |   |         |   |   |   |   | 89 |   |   |   |   |   |
|                                                                   |   |         |   |   |   |   |   |   |   |   |   |   |
| Diluted Earnings Per Share                                             |   |         |   |   |   |   |   |   |   |   |   |   |
| Income (loss) available to common stockholders and assumed conversions |   | $            | 1,360  |   |   |   | 6,840,748 |   |   | $ | 0.20 |   |

----

|                                                                   |   | 2008       |    |
|------------------------------------------------------------------------|--------|------------|---------|
|                                                                   |   |  Loss |    |   | Weighted-AverageShares |   |   | Per-Share Amount |   |
| Basic Earnings Per Share                                               |   |       |    |   |   |   |   |   |   |
| Net loss                                                               |   | $          | (22,098 | ) |   |   | 5,249,135 |   |   |   |   |
| Dividends and amortization on preferred stock                          |   |       | (31     | ) |   |   |   |   |   |   |   |
| Income available to common stockholders                                |   |       | (22,129 | ) |   |   | 5,249,135 |   |   | $ | (4.22 | ) |
|                                                                   |   |       |    |   |   |   |   |   |   |   |   |   |
| Effect of Dilutive Securities                                          |   |       |    |   |   |   |   |   |   |   |   |   |
| Stock options                                                          |   |       |    |   |   |   | — |   |   |   |   |   |
|                                                                   |   |       |    |   |   |   |   |   |   |   |   |   |
| Diluted Earnings Per Share                                             |   |       |    |   |   |   |   |   |   |   |   |   |
| Income (loss) available to common stockholders and assumed conversions |   | $          | (22,129 | ) |   |   | 5,249,135 |   |   | $ | (4.22 | ) |

----

| Note 27: | Condensed Financial Information (Parent Company Only) |
|----------|-------------------------------------------------------|

| Condensed Balance Sheets                   |   |
|--------------------------------------------|--------|
|                                       |   |   |   |   |   |   |
|                                       |   | 2010 |   |   | 2009 |   |
| Assets                                     |   |   |   |   |   |   |
| Cash on deposit with Bank                  |   | $ | 1,604 |   |   | $ | 2,666 |   |
| Cash on deposit with others                |   |   | 621 |   |   |   | 250 |   |
| Total cash                                 |   |   | 2,225 |   |   |   | 2,916 |   |
| Investment in common stock of Bank         |   |   | 142,202 |   |   |   | 140,463 |   |
| Deferred and current income tax            |   |   | 239 |   |   |   | 226 |   |
| Other assets                               |   |   | (322 | ) |   |   | 50 |   |
|                                       |   |   |   |   |   |   |   |   |
| Total assets                               |   | $ | 144,344 |   |   | $ | 143,655 |   |
|                                       |   |   |   |   |   |   |   |   |
| Liabilities                                |   |   |   |   |   |   |   |   |
| Other borrowings                           |   | $ | 13,167 |   |   | $ | 13,888 |   |
| Other liabilities                          |   |   | 37 |   |   |   | 40 |   |
| Total liabilities                          |   |   | 13,204 |   |   |   | 13,928 |   |
|                                       |   |   |   |   |   |   |   |   |
| Stockholders' Equity                       |   |   | 131,140 |   |   |   | 129,727 |   |
|                                       |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity |   | $ | 144,344 |   |   | $ | 143,655 |   |

----

| Condensed Statements of Operations                                                                  |   |
|-----------------------------------------------------------------------------------------------------|--------|
|                                                                                                |   |   |   |   |   |   |   |   |   |
|                                                                                                |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Income                                                                                              |   |   |   |   |   |   |   |   |   |
| Interest income from Bank                                                                           |   | $ | 13 |   |   | $ | 23 |   |   | $ | 9 |   |
| Dividends from Bank                                                                                 |   |   | 3,600 |   |   |   | 4,103 |   |   |   | — |   |
| Other income                                                                                        |   |   | 1 |   |   |   | 16 |   |   |   | — |   |
| Total income                                                                                        |   |   | 3,614 |   |   |   | 4,142 |   |   |   | 9 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                            |   |   | 1,334 |   |   |   | 1,463 |   |   |   | 1,221 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income tax and equity in undistributed income of the Bank                      |   |   | 2,280 |   |   |   | 2,679 |   |   |   | (1,212 | ) |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax benefit                                                                                  |   |   | (440 | ) |   |   | (484 | ) |   |   | (412 | ) |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before equity in undistributed income (distributions in excess of income) of the Bank |   |   | 2,720 |   |   |   | 3,163 |   |   |   | (800 | ) |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity in undistributed income (loss) of the Bank                                                   |   |   | 3,832 |   |   |   | — |   |   |   | (21,299 | ) |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                                   |   |   | 6,552 |   |   |   | 3,163 |   |   |   | (22,099 | ) |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock dividends and amortization                                                          |   |   | 1,803 |   |   |   | 1,803 |   |   |   | 31 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) Available to Common Shareholders                                                  |   | $ | 4,749 |   |   | $ | 1,360 |   |   | $ | (22,130 | ) |

----

| Condensed Statements of Cash Flows                  |   |
|-----------------------------------------------------|--------|
|                                                |   |   |   |   |   |   |   |   |   |
|                                                |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Operating Activities                                |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                   |   | $ | 6,552 |   |   | $ | 3,163 |   |   | $ | (22,098 | ) |
| Item not requiring cash                             |   |   |   |   |   |   |   |   |   |   |   |   |
| ESOP shares earned                                  |   |   | 233 |   |   |   | 215 |   |   |   | 343 |   |
| Deferred income tax benefit                         |   |   | 5 |   |   |   | 3 |   |   |   | (251 | ) |
| Equity in earnings (loss) of subsidiary             |   |   | (3,832 | ) |   |   | — |   |   |   | 21,299 |   |
| Other                                               |   |   | 380 |   |   |   | 591 |   |   |   | (13 | ) |
| Net cash provided (used in) by operating activities |   |   | 3,338 |   |   |   | 3,972 |   |   |   | (720 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Investing Activities                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from sale of investment                    |   |   | — |   |   |   | — |   |   |   | 431 |   |
| Loss on sale of investment                          |   |   | — |   |   |   | — |   |   |   | 329 |   |
| Distributions on equity investment of subsidiary    |   |   | — |   |   |   | 1,897 |   |   |   | 3,000 |   |
| Investment in bank                                  |   |   | — |   |   |   | — |   |   |   | (29,144 | ) |
| Cash paid in acquisition, net                       |   |   | — |   |   |   | — |   |   |   | (9,115 | ) |
| Net cash provided in (used in) investing activities |   |   | — |   |   |   | 1,897 |   |   |   | (34,499 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing Activities                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Repayment of other borrowings                       |   |   | (764 | ) |   |   | (11,500 | ) |   |   | (496 | ) |
| Proceeds from issuance of long-term debt            |   |   | — |   |   |   | 10,000 |   |   |   | 11,500 |   |
| Proceeds from issuance of preferred stock           |   |   | — |   |   |   | — |   |   |   | 32,382 |   |
| Stock repurchased                                   |   |   | — |   |   |   | — |   |   |   | (1,811 | ) |
| Cash dividends                                      |   |   | (3,265 | ) |   |   | (4,314 | ) |   |   | (3,490 | ) |
| Tax benefit on stock options and RRP shares         |   |   | — |   |   |   | (35 | ) |   |   | (21 | ) |
| Net cash provided by (used in) financing activities |   |   | (4,029 | ) |   |   | (5,849 | ) |   |   | 38,064 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Change in Cash                                  |   |   | (691 | ) |   |   | 20 |   |   |   | 2,845 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash, Beginning of Year                             |   |   | 2,916 |   |   |   | 2,896 |   |   |   | 51 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash, End of Year                                   |   | $ | 2,225 |   |   | $ | 2,916 |   |   | $ | 2,896 |   |

----

| Note 28: | Quarterly Results of Operations (Unaudited) |
|----------|---------------------------------------------|

| QuarterEnded |   | InterestIncome |   |   | InterestExpense |   |   | NetInterestIncome |   |   | ProvisionforLoanLosses |   |   | NetIncome(Loss) |   |   | NetIncome(Loss)Available toCommonShareholders |   |    | BasicEarningsPerCommonShare |   |   | DilutedEarningsPerCommonShare |   |
|--------------|--------|----------------|--------|--------|-----------------|--------|--------|-------------------|--------|--------|------------------------|--------|--------|-----------------|--------|--------|-----------------------------------------------|--------|---------|-----------------------------|--------|--------|-------------------------------|--------|
| 2010         |   |           |   |   |            |   |   |              |   |   |                   |   |   |            |   |   |                                          |   |    |                        |   |   |                          |   |
| March        |   | $              | 17,245 |   |            | $      | 6,757  |              |   | $      | 10,488                 |   |   | $               | 1,525  |   |                                          | $      | 1,343   |                        |   | $      | 893                           |   |   | $ | 0.13 |   |   | $ | 0.13 |   |
| June         |   |           | 17,403 |   |            |   | 6,525  |              |   |   | 10,878                 |   |   |            | 1,525  |   |                                          |   | 1,775   |                        |   |   | 1,324                         |   |   |   | 0.19 |   |   |   | 0.19 |   |
| September    |   |           | 16,725 |   |            |   | 6,110  |              |   |   | 10,615                 |   |   |            | 2,225  |   |                                          |   | 1,621   |                        |   |   | 1,170                         |   |   |   | 0.17 |   |   |   | 0.17 |   |
| December     |   |           | 16,025 |   |            |   | 5,803  |              |   |   | 10,222                 |   |   |            | 1,775  |   |                                          |   | 1,813   |                        |   |   | 1,362                         |   |   |   | 0.20 |   |   |   | 0.20 |   |
|         |   |           |   |   |            |   |   |              |   |   |                   |   |   |            |   |   |                                          |   |    |                        |   |   |                          |   |   |   |   |   |   |   |   |   |
| Total        |   | $              | 67,398 |   |            | $      | 25,195 |              |   | $      | 42,203                 |   |   | $               | 7,050  |   |                                          | $      | 6,552   |                        |   | $      | 4,749                         |   |   |   | 0.69 |   |   |   | 0.69 |   |
|         |   |           |   |   |            |   |   |              |   |   |                   |   |   |            |   |   |                                          |   |    |                        |   |   |                          |   |   |   |   |   |   |   |   |   |
| 2009         |   |           |   |   |            |   |   |              |   |   |                   |   |   |            |   |   |                                          |   |    |                        |   |   |                          |   |   |   |   |   |   |   |   |   |
| March        |   | $              | 18,656 |   |            | $      | 8,264  |              |   | $      | 10,392                 |   |   | $               | 1,450  |   |                                          | $      | 1,796   |                        |   | $      | 1,345                         |   |   | $ | 0.20 |   |   | $ | 0.20 |   |
| June         |   |           | 18,136 |   |            |   | 7,824  |              |   |   | 10,312                 |   |   |            | 1,750  |   |                                          |   | 1,315   |                        |   |   | 864                           |   |   |   | 0.13 |   |   |   | 0.13 |   |
| September    |   |           | 17,682 |   |            |   | 7,439  |              |   |   | 10,243                 |   |   |            | 1,650  |   |                                          |   | 1,242   |                        |   |   | 791                           |   |   |   | 0.12 |   |   |   | 0.12 |   |
| December     |   |           | 17,378 |   |            |   | 7,097  |              |   |   | 10,281                 |   |   |            | 1,650  |   |                                          |   | (1,189  | )                           |   |   | (1,640                        | )      |   |   | (0.24 | ) |   |   | (0.24 | ) |
|         |   |           |   |   |            |   |   |              |   |   |                   |   |   |            |   |   |                                          |   |    |                        |   |   |                          |   |   |   |   |   |   |   |   |   |
| Total        |   | $              | 71,852 |   |            | $      | 30,624 |              |   | $      | 41,228                 |   |   | $               | 6,500  |   |                                          | $      | 3,164   |                        |   | $      | 1,360                         |   |   |   | 0.20 |   |   |   | 0.20 |   |
|         |   |           |   |   |            |   |   |              |   |   |                   |   |   |            |   |   |                                          |   |    |                        |   |   |                          |   |   |   |   |   |   |   |   |   |
| 2008         |   |           |   |   |            |   |   |              |   |   |                   |   |   |            |   |   |                                          |   |    |                        |   |   |                          |   |   |   |   |   |   |   |   |   |
| March        |   | $              | 13,757 |   |            | $      | 7,397  |              |   | $      | 6,360                  |   |   | $               | 612    |   |                                          | $      | 1,215   |                        |   | $      | 1,215                         |   |   | $ | 0.30 |   |   | $ | 0.30 |   |
| June         |   |           | 13,489 |   |            |   | 6,689  |              |   |   | 6,800                  |   |   |            | 733    |   |                                          |   | 1,175   |                        |   |   | 1,175                         |   |   |   | 0.30 |   |   |   | 0.30 |   |
| September    |   |           | 18,825 |   |            |   | 8,989  |              |   |   | 9,836                  |   |   |            | 913    |   |                                          |   | 359     |                        |   |   | 359                           |   |   |   | 0.06 |   |   |   | 0.06 |   |
| December     |   |           | 19,108 |   |            |   | 8,564  |              |   |   | 10,544                 |   |   |            | 4,762  |   |                                          |   | (24,847 | )                           |   |   | (24,879                       | )      |   |   | (3.65 | ) |   |   | (3.65 | ) |
|         |   |           |   |   |            |   |   |              |   |   |                   |   |   |            |   |   |                                          |   |    |                        |   |   |                          |   |   |   |   |   |   |   |   |   |
| Total        |   | $              | 65,179 |   |            | $      | 31,639 |              |   | $      | 33,540                 |   |   | $               | 7,020  |   |                                          | $      | (22,098 | )                           |   | $      | (22,130                       | )      |   |   | (4.22 | ) |   |   | (4.21 | ) |

----

----

| Date: March 16, 2011 | By:    | /s/ David W. Heeter                                          |
|----------------------|--------|--------------------------------------------------------------|
|                 |   | David W. Heeter                                              |
|                 |   | President and Chief Executive Officer                        |
|                 |   |                                                         |
|                 | By:    | /s/ Christopher D. Cook                                      |
|                 |   | Christopher D. Cook                                          |
|                 |   | Senior Vice President, Treasurer and Chief Financial Officer |

----

----

----

| Plan Category                                              |   | Number of securities to be issued upon exercise of oustanding options warrants and rights |    |   | Weighted-average exercise price of oustanding options warrants and rights |   |    | Number of securities remaining available for future issuance under equity compensation plans |   |
|------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|---------|--------|---------------------------------------------------------------------------|--------|---------|----------------------------------------------------------------------------------------------|--------|
| Equity compensation plans approved by security holders     |   |                                                                                      | 629,718 |   |                                                                      | $      | 11.58   |                                                                                         |   |   | 314,702 | (1) |
| Equity compensation plans not approved by security holders |   |                                                                                      | — |   |                                                                      |   | — |                                                                                         |   |   | — |   |

----

| (1)  | Includes 20,961 shares available for future grants under MutualFirst Financial, Inc’s 2001 stock option plan and 293,741 shares available for future grants under MutualFirst Financial, Inc.’s 2008 stock option plan. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Annual Report Section                                                                                      |
|------------------------------------------------------------------------------------------------------------|
| Report of Independent Registered Public Accounting Firm                                                    |
| Consolidated Balance Sheets at December 31, 2010 and 2009                                                  |
| Consolidated Statements of Operations for the Years Ended December 31, 2010, 2009 and 2008                 |
| Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2010, 2009 and 2008 |
| Consolidated Statements of Cash Flows for the Years Ended December 31, 2010, 2009 and 2008                 |
| Notes to Consolidated Financial Statements, December 31, 2010, 2009 and 2008                               |

----

| RegulationS-KExhibitNumber |   | Document                                                                                                                                                                                                                                                          |   | Referenceto PriorFiling orExhibitNumberAttachedHereto |
|----------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|
| 2.1                        |   | Agreement and Plan of Merger, dated as of January 7, 2008, by and among MutualFirst Financial, Inc., MutualFirst Acquisition Corp. and MFB Corp.                                                                                                                  |   | a                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 3.1                        |   | Articles of Incorporation                                                                                                                                                                                                                                         |   | b                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 3.2                        |   | Articles Supplementary for the Series A Preferred Stock                                                                                                                                                                                                           |   | c                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 3.3                        |   | Amended Bylaws                                                                                                                                                                                                                                                    |   | k                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 3.4                        |   | Articles Supplementary to the Company’s Charter re: term of appointed directors effective July 15, 2008                                                                                                                                                     |   | l                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 4.1                        |   | Form of Common Stock Certificate                                                                                                                                                                                                                                  |   | b                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 4.2                        |   | Warrant for Purchase of Shares of Common Stock                                                                                                                                                                                                                    |   | c                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 4.3                        |   | Form of Certificate for the Series A Preferred Stock                                                                                                                                                                                                              |   | d                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 9                          |   | Voting Trust Agreement                                                                                                                                                                                                                                            |   | None                                                  |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.1                       |   | Employment Agreement with David W. Heeter                                                                                                                                                                                                                         |   | e                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.2                       |   | Employment Agreement with Patrick C. Botts                                                                                                                                                                                                                        |   | e                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.3                       |   | Blank                                                                                                                                                                                                                                                             |   | f                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.4                       |   | Form of Supplemental Retirement Plan Income Agreements for Patrick C. Botts and David W. Heeter                                                                                                                                                                   |   | f                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.5                       |   | Blank                                                                                                                                                                                                                                                             |   |                                                  |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.6                       |   | Form of Director Shareholder Benefit Program Agreement, as amended, for Jerry D. McVicker                                                                                                                                                                         |   | g                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.7                       |   | Form of Agreements for Executive Deferred Compensation Plan for Patrick C. Botts and David W. Heeter                                                                                                                                                              |   | f                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.8                       |   | Registrant’s 2001 Stock Option and Incentive Plan                                                                                                                                                                                                           |   | h                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.9                       |   | Registrant’s 2001 Recognition and Retention Plan                                                                                                                                                                                                            |   | h                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.11                      |   | Director Fee Arrangements for 2010                                                                                                                                                                                                                                |   | 10.11                                                 |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.12                      |   | Director Deferred Compensation Plan                                                                                                                                                                                                                               |   | i                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.13                      |   | MutualFirst Financial, Inc. 2008 Stock Option and Incentive Plan                                                                                                                                                                                                  |   | d                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.14                      |   | MFB Corp. 2002 Stock Option Plan                                                                                                                                                                                                                                  |   | d                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.15                      |   | MFB Corp. 1997 Stock Option Plan                                                                                                                                                                                                                                  |   | d                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.16                      |   | Employment Agreement with Charles J. Viater                                                                                                                                                                                                                       |   | d                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.17                      |   | Salary Continuation Agreement with Charles J. Viater                                                                                                                                                                                                              |   | d                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.18                      |   | Letter Agreement (including Schedule A, Securities Purchase Agreement, dated December 23, 2008 between MutualFirst Financial, Inc. and United States Department of the Treasury with respect to the issuance and sale of the Series A Preferred Stock and Warrant |   | c                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.19                      |   | Form of compensation modification agreement and waiver for named executive officers                                                                                                                                                                               |   | c                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.20                      |   | Loan Agreement with First Tennesee Bank National Association dated December 21, 2009.                                                                                                                                                                        |   | m                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.21                      |   | Form of Incentive Stock Option Agreement for 2008 Stock Option and Incentive Plan                                                                                                                                                                                 |   | j                                                     |
|                       |   |                                                                                                                                                                                                                                                              |   |                                                  |
| 10.22                      |   | Form of Non-Qualified Stock Option Agreement for 2008 Stock Option and Incentive Plan                                                                                                                                                                             |   | j                                                     |

----

| 11     |   | Statement re computation of per share earnings                           |   | None   |
|--------|--------|--------------------------------------------------------------------------|--------|--------|
|   |   |                                                                     |   |   |
| 12     |   | Statements re computation of ratios                                      |   | None   |
|   |   |                                                                     |   |   |
| 14     |   | Code of Ethics                                                           |   | e      |
|   |   |                                                                     |   |   |
| 16     |   | Letter re change in certifying accountant                                |   | None   |
|   |   |                                                                     |   |   |
| 18     |   | Letter re change in accounting principles                                |   | None   |
|   |   |                                                                     |   |   |
| 21     |   | Subsidiaries of the registrant                                           |   | 21     |
|   |   |                                                                     |   |   |
| 22     |   | Published report regarding matters submitted to vote of security holders |   | None   |
|   |   |                                                                     |   |   |
| 23     |   | Consents of Experts and Counsel                                          |   | 23     |
|   |   |                                                                     |   |   |
| 24     |   | Power of Attorney                                                        |   | None   |
|   |   |                                                                     |   |   |
| 31.1   |   | Rule 13(a)-14(a) Certification (Chief Executive Officer)                 |   | 31.1   |
|   |   |                                                                     |   |   |
| 31.2   |   | Rule 13(a)-14(a) Certification (Chief Financial Officer)                 |   | 31.2   |
|   |   |                                                                     |   |   |
| 32     |   | Section 1350 Certification                                               |   | 32     |
| 99.1   |   | Certification of Principal Executive Officer Pursuant to 31 CFR § 30.15 |   | 99.1   |
|--------|--------|------------------------------------------------------------------------------|--------|--------|
|   |   |                                                                         |   |   |
| 99.2   |   | Certification of Principal Financial Officer Pursuant to 31 CFR § 30.15 |   | 99.2   |

----

| a      | Filed as an exhibit to the Company’s Form 8-K filed on January 8, 2008 and incorporated herein by reference.                                                                                                                                         |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                       |
| b      | Filed as an exhibit to the Company’s Form S-1 registration statement filed on September 16, 1999 (File No. 333-87239) pursuant to Section 5 of the Securities Act of 1933 and incorporated herein by reference.                                      |
|   |                                                                                                                                                                                                                                                       |
| c      | Filed as an exhibit to the Company’s Form 8-K filed on December 23, 2008 (File No. 000-27905) and incorporated herein by reference.                                                                                                                  |
|   |                                                                                                                                                                                                                                                       |
| d      | Filed as an Exhibit to the Company’s Annual Report on Form 10-K filed on March 23, 2009 and incorporated herein by reference.                                                                                                                        |
|   |                                                                                                                                                                                                                                                       |
| e      | Filed as an exhibit to the Company’s Annual Report on Form 10-K filed on March 15, 2004.  Such previously filed document is incorporated herein by reference in accordance with Item 601 of Regulation S-K.                                |
|   |                                                                                                                                                                                                                                                       |
| f      | Filed as an exhibit to the Company’s Annual Report on Form 10-K filed on March 30, 2001.  Such previously filed document is incorporated herein by reference in accordance with Item 601 of Regulation S-K.                                |
|   |                                                                                                                                                                                                                                                       |
| g      | Filed as an exhibit to the Company’s Annual Report on Form 10-K filed on April 2, 2002.  Such previously filed document is incorporated herein by reference in accordance with Item 601 of Regulation S-K.                                 |
|   |                                                                                                                                                                                                                                                       |
| h      | Filed as an Appendix to the Company’s Form S-4/A Registration Statement filed on October 19, 2001 (File No. 333-46510).  Such previously filed document is incorporated herein by reference in accordance with Item 601 of Regulation S-K. |
|   |                                                                                                                                                                                                                                                       |
| i      | Filed as an exhibit to the Company’s Annual Report on Form 10-K filed on March 16,2007.  Such previously filed document is incorporated herein by reference in accordance with Item 601 of Regulation S-K.                                 |
|   |                                                                                                                                                                                                                                                       |
| j      | Filed as an exhibit to the Company’s Form 10-K filed on March 23, 2010 and incorporated herein by reference.                                                                                                                                         |
|   |                                                                                                                                                                                                                                                       |
| k      | Filed as an exhibit to the Company’s Form 8-K filed on October 15, 2007 (File No. 000-27905).  Such previously filed document is incorporated herein by reference in accordance with Item 601 of Regulation S-K.                           |
|   |                                                                                                                                                                                                                                                       |
| l      | Filed as an exhibit to the Company’s Form 8-K filed on July 15, 2008 and incorporated herein by reference.                                                                                                                                           |
|   |                                                                                                                                                                                                                                                       |
| m      | Filed as an exhibit to the Company’s Form 8-K filed on December 24, 2009 and incorporated herein by reference.                                                                                                                                       |

----

|                            | MutualFirst Financial, Inc. |                                                  |
|---------------------------------|-----------------------------|-------------------------------------------------------|
|                            |                        |                                                  |   |
| Date:  March 16, 2011 | By:                         | /s/ David W. Heeter                                   |
|                            |                        | David W. Heeter, President andChief Executive Officer |   |
|                            |                        | Duly Authorized Representative)                       |   |

| /s/ David W. Heeter                          |   | /s/ Wilbur R. Davis                    |
|----------------------------------------------|--------|----------------------------------------|
| David W. Heeter, President and Director      |   | Wilbur R. Davis, Chairman of the Board |
| (Principal Executive Officer)                |   |                                   |
| Date:  March 16, 2011              |   | Date:  March 16, 2011        |
|                                         |   |                                   |
| /s/ Patrick C. Botts                         |   | /s/ Linn A. Crull                      |
| Patrick C. Botts, Director                   |   | Linn A. Crull, Director                |
| Date:  March 16, 2011              |   | Date:  March 16, 2011        |
|                                         |   |                                   |
| /s/ James D. Rosema                          |   | /s/ William V. Hughes                  |
| James D. Rosema, Director                    |   | William V. Hughes, Director            |
| Date:  March 16, 2011              |   | Date:  March 16, 2011        |
|                                         |   |                                   |
| /s/ Jerry D. McVicker                        |   | /s/ James R. Schrecongost              |
| Jerry D. McVicker, Director                  |   | James R. Schrecongost                  |
| Date: March 16, 2011                         |   | Date:  March 16, 2011        |
|                                         |   |                                   |
| /s/ Jonathan E. Kintner, O.D.                |   | /s/ Edward C. Levy                     |
| Jonathan E. Kintner, O.D., Director          |   | Edward C. Levy, Director               |
| Date:  March 16, 2011              |   | Date:  March 16, 2011        |
|                                         |   |                                   |
| /s/ Michael J. Marien                        |   | /s/ Charles J. Viater                  |
| Michael J. Marien, Director                  |   | Charles J. Viater, Director            |
| Date:  March 16, 2011              |   | Date:  March 16, 2011        |
|                                         |   |                                   |
| /s/ Christopher D. Cook                      |   |                                   |
| Christopher D. Cook, Senior Vice President   |   |                                   |
| Treasurer and Controller                     |   |                                   |
| (Principal Financial and Accounting Officer) |   |                                   |
| Date:  March 16, 2011              |   |                                   |

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| Number |   | Description                                                                  |
|--------|--------|------------------------------------------------------------------------------|
|   |   |                                                                         |
| 10.11  |   | Director Fee Arrangements for 2011                                           |
|   |   |                                                                         |
| 21     |   | Subsidiaries of the Registrant                                               |
|   |   |                                                                         |
| 23     |   | Consent of Accountants                                                       |
|   |   |                                                                         |
| 31.1   |   | Rule 13(a)-14(a) Certification (Chief Executive Officer)                     |
|   |   |                                                                         |
| 31.2   |   | Rule 13(a)-14(a) Certification (Chief Financial Officer)                     |
|   |   |                                                                         |
| 32     |   | Section 1350 Certification                                                   |
|   |   |                                                                         |
| 99.1   |   | Certification of Principal Executive Officer Pursuant to 31 CFR § 30.15 |
|   |   |                                                                         |
| 99.2   |   | Certification of Principal Financial Officer Pursuant to 31 CFR § 30.15 |

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