| x      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934  |   |
|--------|-----------------------------------------------------------------------------------------|--------|
|   |                                                                                    |   |
|   | For the quarterly period ended March 31, 2011                                           |   |
|   |                                                                                    |   |
|   | OR                                                                                      |   |
|   |                                                                                    |   |
|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934 |   |
|   |                                                                                    |   |
|   | For the transition period from ________________ to ________________                     |   |

| Indiana                                                        |   | 35-1984567                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
| 430 Clifty DriveMadison, Indiana                               |   | 47250                                |
| (Address of principal executive offices)                       |   | (Zip Code)                           |

| Large Accelerated Filer   ̈                                            | Accelerated Filer   ̈    |
|---------------------------------------------------------------------------------|-----------------------------------|
| Non-Accelerated Filer   ̈(Do not check if a smaller reporting company) | Smaller Reporting Company  x |

----

|                          |                                                                                        | Page No. |
|-------------------------------|---------------------------------------------------------------------------------------------|----------|
|                          |                                                                                        |
| PART I. FINANCIAL INFORMATION | 3                                                                                           |
|                          |                                                                                        |     |
| Item 1.                       | Financial Statements                                                                        | 3        |
|                          |                                                                                        |     |
|                          | Consolidated Condensed Balance Sheets                                                       | 3        |
|                          |                                                                                        |     |
|                          | Consolidated Condensed Statements of Income                                                 | 4        |
|                          |                                                                                        |     |
|                          | Consolidated Condensed Statements of Comprehensive Income                                   | 5        |
|                          |                                                                                        |     |
|                          | Consolidated Condensed Statements of Cash Flows                                             | 6        |
|                          |                                                                                        |     |
|                          | Notes to Consolidated Condensed Financial Statements                                        | 7        |
|                          |                                                                                        |     |
| Item 2.                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 27       |
|                          |                                                                                        |     |
| Item 3.                       | Quantitative and Qualitative Disclosure about Market Risk                                   | 36       |
|                          |                                                                                        |     |
| Item 4.                       | Controls and Procedures                                                                     | 36       |
|                          |                                                                                        |
| PART II. OTHER INFORMATION    | 36                                                                                          |
|                          |                                                                                        |     |
| Item 1.                       | Legal Proceedings                                                                           | 36       |
|                          |                                                                                        |     |
| Item 2.                       | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 37       |
|                          |                                                                                        |     |
| Item 3.                       | Defaults Upon Senior Securities                                                             | 37       |
|                          |                                                                                        |     |
| Item 4.                       | (Removed and Reserved)                                                                      | 37       |
|                          |                                                                                        |     |
| Item 5.                       | Other Information                                                                           | 37       |
|                          |                                                                                        |     |
| Item 6.                       | Exhibits                                                                                    | 37       |
|                          |                                                                                        |
| SIGNATURES                    | 38                                                                                          |
|                          |                                                                                        |
| EXHIBIT INDEX                 | 39                                                                                          |

----

|                                                                                 |   | March 31, 2011                       |    |   | December 31, 2010 |   |
|--------------------------------------------------------------------------------------|--------|--------------------------------------|---------|--------|-------------------|--------|
|                                                                                 |   | (Unaudited)                          |    |   |              |   |
|                                                                                 |   | (In Thousands, Except Share Amounts) |    |
| Assets                                                                               |   |                                 |    |   |              |   |
| Cash and due from banks                                                              |   | $                                    | 2,270   |   |              | $      | 2,021 |   |
| Interest-bearing demand deposits                                                     |   |                                 | 12,351  |   |              |   | 12,864 |   |
| Federal funds sold                                                                   |   |                                 | 1,904   |   |              |   | 1,903 |   |
| Cash and cash equivalents                                                            |   |                                 | 16,525  |   |              |   | 16,788 |   |
| Investment securities available for sale                                             |   |                                 | 80,316  |   |              |   | 75,231 |   |
| Loans held for sale                                                                  |   |                                 | -       |   |              |   | 1,089 |   |
| Loans                                                                                |   |                                 | 264,347 |   |              |   | 269,254 |   |
| Allowance for loan losses                                                            |   |                                 | (3,708  | )      |              |   | (3,806 | ) |
| Net loans                                                                            |   |                                 | 260,639 |   |              |   | 265,448 |   |
| Premises and equipment, net                                                          |   |                                 | 7,887   |   |              |   | 7,975 |   |
| Real estate, held for sale                                                           |   |                                 | 2,517   |   |              |   | 400 |   |
| Federal Home Loan Bank stock                                                         |   |                                 | 4,496   |   |              |   | 4,496 |   |
| Interest receivable                                                                  |   |                                 | 1,790   |   |              |   | 1,953 |   |
| Cash value of life insurance                                                         |   |                                 | 9,613   |   |              |   | 9,532 |   |
| Goodwill                                                                             |   |                                 | 79      |   |              |   | 79 |   |
| Other assets                                                                         |   |                                 | 3,172   |   |              |   | 3,618 |   |
| Total assets                                                                         |   | $                                    | 387,034 |   |              | $      | 386,609 |   |
|                                                                                 |   |                                 |    |   |              |   |   |   |
| Liabilities                                                                          |   |                                 |    |   |              |   |   |   |
| Deposits                                                                             |   |                                 |    |   |              |   |   |   |
| Noninterest-bearing                                                                  |   | $                                    | 25,447  |   |              | $      | 23,480 |   |
| Interest-bearing                                                                     |   |                                 | 263,183 |   |              |   | 262,857 |   |
| Total deposits                                                                       |   |                                 | 288,630 |   |              |   | 286,337 |   |
| Borrowings                                                                           |   |                                 | 62,217  |   |              |   | 65,217 |   |
| Interest payable                                                                     |   |                                 | 457     |   |              |   | 485 |   |
| Other liabilities                                                                    |   |                                 | 3,449   |   |              |   | 3,102 |   |
| Total liabilities                                                                    |   |                                 | 354,753 |   |              |   | 355,141 |   |
|                                                                                 |   |                                 |    |   |              |   |   |   |
| Commitments and Contingencies                                                        |   |                                 |    |   |              |   |   |   |
|                                                                                 |   |                                 |    |   |              |   |   |   |
| Stockholders’ Equity                                                           |   |                                 |    |   |              |   |   |   |
| Preferred stock – liquidation preference $1,000 per share – no par value |   |                                 |    |   |              |   |   |   |
| Authorized – 2,000,000 shares                                                  |   |                                 |    |   |              |   |   |   |
| Issued and outstanding – 5,000 shares                                          |   |                                 | 5,000   |   |              |   | 5,000 |   |
| Common stock, no par value                                                           |   |                                 |    |   |              |   |   |   |
| Authorized – 5,000,000 shares                                                  |   |                                 |    |   |              |   |   |   |
| Issued and outstanding – 1,514,472 shares                                      |   |                                 | 7,532   |   |              |   | 7,546 |   |
| Retained earnings                                                                    |   |                                 | 18,872  |   |              |   | 18,479 |   |
| Accumulated other comprehensive income                                               |   |                                 | 877     |   |              |   | 443 |   |
| Total stockholders’ equity                                                     |   |                                 | 32,281  |   |              |   | 31,468 |   |
| Total liabilities and stockholders’ equity                                     |   | $                                    | 387,034 |   |              | $      | 386,609 |   |

----

|                                                             |   | Three Months EndedMarch 31,          |   |
|------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                             |   | 2011                                 |   |   | 2010 |   |
|                                                             |   | (In Thousands, Except Share Amounts) |   |
| Interest Income                                                  |   |                                 |   |   |   |   |
| Loans receivable                                                 |   | $                                    | 3,859  |   |   | $ | 3,957 |   |
| Investment securities                                            |   |                                 | 645    |   |   |   | 696 |   |
| Interest-earning deposits and other                              |   |                                 | 36     |   |   |   | 30 |   |
| Total interest income                                            |   |                                 | 4,540  |   |   |   | 4,683 |   |
|                                                             |   |                                 |   |   |   |   |   |   |
| Interest Expense                                                 |   |                                 |   |   |   |   |   |   |
| Deposits                                                         |   |                                 | 888    |   |   |   | 1,080 |   |
| Borrowings                                                       |   |                                 | 587    |   |   |   | 906 |   |
| Total interest expense                                           |   |                                 | 1,475  |   |   |   | 1,986 |   |
|                                                             |   |                                 |   |   |   |   |   |   |
| Net Interest Income                                              |   |                                 | 3,065  |   |   |   | 2,697 |   |
| Provision for loan losses                                        |   |                                 | 474    |   |   |   | 165 |   |
| Net Interest Income After Provision for Loan Losses              |   |                                 | 2,591  |   |   |   | 2,532 |   |
|                                                             |   |                                 |   |   |   |   |   |   |
| Other Income                                                     |   |                                 |   |   |   |   |   |   |
| Service fees and charges                                         |   |                                 | 455    |   |   |   | 464 |   |
| Net realized gains on sale of available-for-sale securities      |   |                                 | 126    |   |   |   | 34 |   |
| Net gains on loan sales                                          |   |                                 | 160    |   |   |   | 87 |   |
| Interchange fee income                                           |   |                                 | 97     |   |   |   | 84 |   |
| Increase in cash value of life insurance                         |   |                                 | 81     |   |   |   | 77 |   |
| Loss on sale of premises, equipmentand real estate held for sale |   |                                 | (49    | ) |   |   | (16 | ) |
| Other income                                                     |   |                                 | 45     |   |   |   | 48 |   |
| Total other income                                               |   |                                 | 915    |   |   |   | 778 |   |
|                                                             |   |                                 |   |   |   |   |   |   |
| Other Expenses                                                   |   |                                 |   |   |   |   |   |   |
| Salaries and employee benefits                                   |   |                                 | 1,297  |   |   |   | 1,239 |   |
| Net occupancy and equipment expenses                             |   |                                 | 358    |   |   |   | 338 |   |
| Data processing fees                                             |   |                                 | 110    |   |   |   | 112 |   |
| Advertising                                                      |   |                                 | 81     |   |   |   | 97 |   |
| Mortgage servicing rights                                        |   |                                 | 43     |   |   |   | 38 |   |
| Office supplies                                                  |   |                                 | 27     |   |   |   | 41 |   |
| Professional fees                                                |   |                                 | 118    |   |   |   | 92 |   |
| Federal Deposit Insurance Corporation assessment                 |   |                                 | 121    |   |   |   | 126 |   |
| Other expenses                                                   |   |                                 | 289    |   |   |   | 286 |   |
| Total other expenses                                             |   |                                 | 2,444  |   |   |   | 2,369 |   |
|                                                             |   |                                 |   |   |   |   |   |   |
| Income Before Income Tax                                         |   |                                 | 1,062  |   |   |   | 941 |   |
| Income tax expense                                               |   |                                 | 260    |   |   |   | 222 |   |
|                                                             |   |                                 |   |   |   |   |   |   |
| Net Income                                                       |   |                                 | 802    |   |   |   | 719 |   |
| Preferred stock dividends                                        |   |                                 | 91     |   |   |   | 89 |   |
|                                                             |   |                                 |   |   |   |   |   |   |
| Net Income Available to Common Stockholders                      |   | $                                    | 711    |   |   | $ | 630 |   |
|                                                             |   |                                 |   |   |   |   |   |   |
| Basic earnings per common share                                  |   | $                                    | .47    |   |   | $ | .42 |   |
| Diluted earnings per common share                                |   |                                 | .47    |   |   |   | .42 |   |
| Dividends per common share                                       |   |                                 | .21    |   |   |   | .21 |   |

----

|                                                                                                  |   | Three Months EndedMarch 31, |   |
|-------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                                                  |   | 2011                        |   |   | 2010 |   |
|                                                                                                  |   | (In Thousands)              |   |
|                                                                                                  |   |                        |   |   |   |   |
| Net income                                                                                            |   | $                           | 802    |   |   | $ | 719 |   |
| Other comprehensive income, net of tax                                                                |   |                        |   |   |   |   |   |   |
| Unrealized gains on securities available for sale                                                     |   |                        |   |   |   |   |   |   |
| Unrealized holding gains arising during the period, net of tax expense of $267 and $169               |   |                        | 517    |   |   |   | 334 |   |
| Less: Reclassification adjustment for gains included in net income, net of tax expense of $43 and $13 |   |                        | 83     |   |   |   | 21 |   |
|                                                                                                  |   |                        | 434    |   |   |   | 313 |   |
| Comprehensive income                                                                                  |   | $                           | 1,236  |   |   | $ | 1,032 |   |

----

|                                                                             |   | Three Months Ended March 31, |    |
|----------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                             |   | 2011                         |    | 2010 |
|                                                                             |   | (In Thousands)               |    |
| Operating Activities                                                             |   |                         |    |   |   |   |
| Net income                                                                       |   | $                            | 802     |   |   | $ | 719 |   |
| Adjustments to reconcile net income to net cash provided by operating activities |   |                         |    |   |   |   |   |   |
| Provision for loan losses                                                        |   |                         | 474     |   |   |   | 165 |   |
| Depreciation and amortization                                                    |   |                         | 143     |   |   |   | 123 |   |
| Investment securities gains                                                      |   |                         | (126    | ) |   |   | (34 | ) |
| Loans originated for sale in the secondary market                                |   |                         | (4,502  | ) |   |   | (3,417 | ) |
| Proceeds from sale of loans in the secondary market                              |   |                         | 5,695   |   |   |   | 3,359 |   |
| Gain on sale of loans                                                            |   |                         | (160    | ) |   |   | (87 | ) |
| Amortization of net loan origination cost                                        |   |                         | 38      |   |   |   | 21 |   |
| Net change in                                                                    |   |                         |    |   |   |   |   |   |
| Interest receivable                                                              |   |                         | 163     |   |   |   | 409 |   |
| Interest payable                                                                 |   |                         | (28     | ) |   |   | (66 | ) |
| Prepaid FDIC assessment                                                          |   |                         | 112     |   |   |   | 118 |   |
| Other adjustments                                                                |   |                         | 432     |   |   |   | 788 |   |
| Net cash provided by operating activities                                        |   |                         | 3,043   |   |   |   | 2,098 |   |
|                                                                             |   |                         |    |   |   |   |   |   |
| Investing Activities                                                             |   |                         |    |   |   |   |   |   |
| Purchases of securities available for sale                                       |   |                         | (9,719  | ) |   |   | (5,131 | ) |
| Proceeds from maturities of securities available for sale                        |   |                         | 2,610   |   |   |   | 5,782 |   |
| Proceeds from sales of securities available for sale                             |   |                         | 2,796   |   |   |   | 2,006 |   |
| Net change in loans                                                              |   |                         | 1,983   |   |   |   | 3,314 |   |
| Purchases of premises and equipment                                              |   |                         | (55     | ) |   |   | (57 | ) |
| Proceeds from sale of real estate acquired through foreclosure                   |   |                         | 148     |   |   |   | 239 |   |
| Net cash provided by (used in) investing activities                              |   |                         | (2,237  | ) |   |   | 6,153 |   |
|                                                                             |   |                         |    |   |   |   |   |   |
| Financing Activities                                                             |   |                         |    |   |   |   |   |   |
| Net change in                                                                    |   |                         |    |   |   |   |   |   |
| Noninterest-bearing, interest-bearing demand and savings deposits                |   |                         | 10,741  |   |   |   | 47 |   |
| Certificates of deposit                                                          |   |                         | (8,448  | ) |   |   | 5,617 |   |
| Proceeds from borrowings                                                         |   |                         | 10,000  |   |   |   | - |   |
| Repayment of borrowings                                                          |   |                         | (13,000 | ) |   |   | (8,000 | ) |
| Cash dividends                                                                   |   |                         | (410    | ) |   |   | (405 | ) |
| Acquisition of stock for stock benefit plans                                     |   |                         | (16     | ) |   |   | - |   |
| Advances by borrowers for taxes and insurance                                    |   |                         | 64      |   |   |   | 46 |   |
| Net cash used in financing activities                                            |   |                         | (1,069  | ) |   |   | (2,695 | ) |
|                                                                             |   |                         |    |   |   |   |   |   |
| Net Change in Cash and Cash Equivalents                                          |   |                         | (263    | ) |   |   | 5,556 |   |
| Cash and Cash Equivalents, Beginning of Period                                   |   |                         | 16,788  |   |   |   | 13,387 |   |
| Cash and Cash Equivalents, End of Period                                         |   | $                            | 16,525  |   |   | $ | 18,943 |   |
|                                                                             |   |                         |    |   |   |   |   |   |
| Additional Cash Flows and Supplementary Information                              |   |                         |    |   |   |   |   |   |
| Interest paid                                                                    |   | $                            | 1,503   |   |   | $ | 2,052 |   |
| Income tax paid, net of refunds                                                  |   |                         | -       |   |   |   | 8 |   |
| Transfers to real estate held for sale                                           |   |                         | 2,314   |   |   |   | 63 |   |

----

----

|                                                            |   | Three Months EndedMarch 31, 2011     |   |   | Three Months EndedMarch 31, 2010 |   |
|-----------------------------------------------------------------|--------|--------------------------------------|--------|--------|----------------------------------|--------|
|                                                            |   | Income                               |   |   | Weighted Average Shares          |   |   | Per Share Amount |   |   | Income |   |   | Weighted Average Shares |   |   | Per Share Amount |   |
|                                                            |   | (In Thousands, Except Share Amounts) |   |
| Basic earnings per share                                        |   |                                 |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income available to common stockholders                         |   | $                                    | 711    |   |                             |   | 1,514,472 |   |   | $ | .47 |   |   | $ | 630 |   |   |   | 1,504,472 |   |   | $ | .42 |   |
|                                                            |   |                                 |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect of dilutive RRP awards and stock options                 |   |                                 |   |   |                             |   | 1,106 |   |   |   |   |   |   |   |   |   |   |   | 7,442 |   |   |   |   |   |
| Diluted earnings per share                                      |   |                                 |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income available to common stockholders and assumed conversions |   | $                                    | 711    |   |                             |   | 1,515,578 |   |   | $ | .47 |   |   | $ | 630 |   |   |   | 1,511,914 |   |   | $ | .42 |   |

| n   | For both the three-month period ended March 31, 2011 and the three-month period ended March 31, 2010, options to purchase 5,000 shares of common stock at an exercise price of $22.25 per share and options to purchase 19,000 shares of common stock at an exercise price of $14.56 were outstanding and were not included in the computation of diluted earnings for those periods. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| n   | Additionally, for the three-month period ended March 31, 2010, there were options to purchase 8,400 shares of common stock at an exercise price of $13.25 per share outstanding that were not included in the computation of diluted earnings for that period. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                        |   |           |   |   | March 31, 2011                                                |   |
|-------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|---------------------------------------------------------------|--------|
|                                                                                                        |   |           |   |   | Fair Value Measurements Using                                 |   |
|                                                                                                        |   | Fair Value     |   |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|                                                                                                        |   | (In Thousands) |   |
| Available-for-sale securities                                                                               |   |           |   |   |                                                          |   |   |   |   |   |   |   |
| Federal agencies                                                                                            |   | $              | 25,358 |   |                                                          | $      | - |   |   | $ | 25,358 |   |   | $ | - |   |
| State and municipal                                                                                         |   |           | 24,553 |   |                                                          |   | - |   |   |   | 24,553 |   |   |   | - |   |
| Government-sponsored enterprise (GSE) -residential mortgage-backed and other asset-backed agency securities |   |           | 29,245 |   |                                                          |   | - |   |   |   | 29,245 |   |   |   |   |   |
| Corporate                                                                                                   |   |           | 1,160  |   |                                                          |   | - |   |   |   | - |   |   |   | 1,160 |   |
| Total                                                                                                       |   | $              | 80,316 |   |                                                          | $      | - |   |   | $ | 79,156 |   |   | $ | 1,160 |   |
|                                                                                                        |   |           |   |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                        |   |           |   |   | December 31, 2010                                             |   |
|-------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|---------------------------------------------------------------|--------|
|                                                                                                        |   |           |   |   | Fair Value Measurements Using                                 |   |
|                                                                                                        |   | Fair Value     |   |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|                                                                                                        |   | (In Thousands) |   |
| Available-for-sale securities                                                                               |   |           |   |   |                                                          |   |   |   |   |   |   |   |
| Federal agencies                                                                                            |   | $              | 22,528 |   |                                                          | $      | - |   |   | $ | 22,528 |   |   | $ | - |   |
| State and municipal                                                                                         |   |           | 28,912 |   |                                                          |   | - |   |   |   | 28,912 |   |   |   | - |   |
| Government-sponsored enterprise (GSE) -residential mortgage-backed and other asset-backed agency securities |   |           | 22,855 |   |                                                          |   | - |   |   |   | 22,855 |   |   |   | - |   |
| Corporate                                                                                                   |   |           | 936    |   |                                                          |   | - |   |   |   | - |   |   |   | 936 |   |
| Total                                                                                                       |   | $              | 75,231 |   |                                                          | $      | - |   |   | $ | 74,295 |   |   | $ | 936 |   |
|                                                                                                        |   |           |   |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                                                    |   | Available-For-Sale Securities    |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                                                                                                                    |   | Three Months EndedMarch 31, 2011 |   |   | Three Months EndedMarch 31, 2010 |   |
|                                                                                                                                                                                    |   | (In Thousands)                   |   |
|                                                                                                                                                                                    |   |                             |   |   |   |   |
| Beginning balance                                                                                                                                                                       |   | $                                | 936    |   |   | $ | 848 |   |
|                                                                                                                                                                                    |   |                             |   |   |   |   |   |   |
| Total realized and unrealized gains and losses                                                                                                                                          |   |                             |   |   |   |   |   |   |
| Amortization included in net income                                                                                                                                                     |   |                             | 2      |   |   |   | 1 |   |
| Unrealized gains (losses) included in other comprehensive income                                                                                                                        |   |                             | 225    |   |   |   | 124 |   |
| Purchases                                                                                                                                                                               |   |                             | -      |   |   |   | - |   |
| Pay downs                                                                                                                                                                               |   |                             | (3     | ) |   |   | (4 | ) |
| Transfers in and/or out of Level 3                                                                                                                                                      |   |                             | -      |   |   |   | - |   |
|                                                                                                                                                                                    |   |                             |   |   |   |   |   |   |
| Ending balance                                                                                                                                                                          |   | $                                | 1,160  |   |   | $ | 969 |   |
| Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date |   | $                                | -      |   |   | $ | - |   |
|                                                                                                                                                                                    |   |                             |   |   |   |   |   |   |

----

|   |                      |       |           | March 31, 2011                                                |   |
|--------|---------------------------|------------|----------------|---------------------------------------------------------------|--------|
|   |                      |       |           | Fair Value Measurements Using                                 |   |
|   |                      | Fair Value |           | Quoted Prices in Active Markets for Identical Assets(Level 1) |   | Significant Other Observable Inputs(Level 2) |   | Significant Unobservable Inputs(Level 3) |   |
|   |                      |       | (In Thousands) |                                                          |
|   | Impaired loans            |       | $              | 1,107                                                         |   |   | $ | - |   |   | $ | - |   |   | $ | 1,107 |   |
|   | Mortgage Servicing Rights |       |           | 55                                                            |   |   |   | - |   |   |   | - |   |   |   | 55 |   |

|   |                      |       |   |                                                          |   | December 31, 2010                            |   |
|--------|---------------------------|------------|--------|---------------------------------------------------------------|--------|----------------------------------------------|--------|
|   |                      |       |   |                                                          |   | Fair Value Measurements Using                |   |
|   |                      | Fair Value |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   | Significant Other Observable Inputs(Level 2) |   | Significant Unobservable Inputs(Level 3) |   |
|   |                      |       |   |                                                          |   | (In Thousands)                               |   |
|   | Impaired loans            |       | $      | 8,956                                                         |   |                                         | $      | - |   |   | $ | - |   |   | $ | 8,956 |   |
|   | Mortgage servicing rights |       |   | 234                                                           |   |                                         |   | - |   |   |   | - |   |   |   | 234 |   |

----

----

|                                                  |   | March 31, 2011  |    |   | December 31, 2010 |   |
|-------------------------------------------------------|--------|-----------------|---------|--------|-------------------|--------|
|                                                  |   | Carrying Amount |    |   | Fair Value        |   |   | Carrying Amount |   |   | Fair Value |   |
| Assets                                                |   | (In Thousands)  |    |
|                                                  |   |            |    |
| Cash and cash equivalents                             |   | $               | 16,525  |   |              | $      | 16,525 |   |   | $ | 16,788 |   |   | $ | 16,788 |   |
| Investment securities available for sale              |   |            | 80,316  |   |              |   | 80,316 |   |   |   | 75,231 |   |   |   | 75,231 |   |
| Loans, held for sale                                  |   |            | -       |   |              |   | - |   |   |   | 1,089 |   |   |   | 1,110 |   |
| Loans, net of allowance for losses                    |   |            | 260,639 |   |              |   | 267,381 |   |   |   | 265,488 |   |   |   | 273,029 |   |
| Stock in FHLB                                         |   |            | 4,496   |   |              |   | 4,496 |   |   |   | 4,496 |   |   |   | 4,496 |   |
| Interest receivable                                   |   |            | 1,790   |   |              |   | 1,790 |   |   |   | 1,953 |   |   |   | 1,953 |   |
| Mortgage servicing rights                             |   |            | 601     |   |              |   | 843 |   |   |   | 588 |   |   |   | 834 |   |
|                                                  |   |            |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                           |   |            |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                              |   |            | 288,630 |   |              |   | 291,545 |   |   |   | 286,337 |   |   |   | 289,576 |   |
| FHLB advances                                         |   |            | 55,000  |   |              |   | 58,206 |   |   |   | 58,000 |   |   |   | 61,974 |   |
| Borrowings                                            |   |            | 7,217   |   |              |   | 5,880 |   |   |   | 7,217 |   |   |   | 4,871 |   |
| Interest payable                                      |   |            | 457     |   |              |   | 457 |   |   |   | 485 |   |   |   | 485 |   |
| Advance payments by borrowers for taxes and insurance |   |            | 169     |   |              |   | 169 |   |   |   | 105 |   |   |   | 105 |   |
|                                                  |   |            |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Off-Balance Sheet Assets (Liabilities)                |   |            |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to extend credit                          |   |            | -       |   |              |   | - |   |   |   | - |   |   |   | - |   |
| Standby letters of credit                             |   |            | -       |   |              |   | - |   |   |   | - |   |   |   | - |   |

----

|                                                                                                         |   | March 31, 2011 |   |
|--------------------------------------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                                                         |   | Amortized Cost |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|                                                                                                         |   | (In Thousands) |   |
| Available-for-sale Securities                                                                                |   |           |   |   |   |   |   |   |   |   |   |   |
| Federal agencies                                                                                             |   | $              | 25,067 |   |   | $ | 367 |   |   | $ | 76 |   |   | $ | 25,358 |   |
| State and municipal                                                                                          |   |           | 23,736 |   |   |   | 864 |   |   |   | 47 |   |   |   | 24,553 |   |
| Government-sponsored enterprise (GSE) - residential mortgage-backed and other asset-backed agency securities |   |           | 28,392 |   |   |   | 921 |   |   |   | 68 |   |   |   | 29,245 |   |
| Corporate                                                                                                    |   |           | 1,767  |   |   |   | - |   |   |   | 607 |   |   |   | 1,160 |   |
| Total investment securities                                                                                  |   | $              | 78,962 |   |   | $ | 2,152 |   |   | $ | 798 |   |   | $ | 80,316 |   |

|                                                                                                         |   | December 31, 2010 |   |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                                         |   | Amortized Cost    |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|                                                                                                         |   | (In Thousands)    |   |
| Available-for-sale Securities                                                                                |   |              |   |   |   |   |   |   |   |   |   |   |
| Federal agencies                                                                                             |   | $                 | 22,139 |   |   | $ | 452 |   |   | $ | 63 |   |   | $ | 22,528 |   |
| State and municipal                                                                                          |   |              | 22,516 |   |   |   | 463 |   |   |   | 124 |   |   |   | 22,855 |   |
| Government-sponsored enterprise (GSE) - residential mortgage-backed and other asset-backed agency securities |   |              | 28,113 |   |   |   | 908 |   |   |   | 109 |   |   |   | 28,912 |   |
| Corporate                                                                                                    |   |              | 1,768  |   |   |   | - |   |   |   | 832 |   |   |   | 936 |   |
| Total investment securities                                                                                  |   | $                 | 74,536 |   |   | $ | 1,823 |   |   | $ | 1,128 |   |   | $ | 75,231 |   |

----

|   |                                                                                                         |   | Available-for-Sale |   |
|--------|--------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|   | March 31, 2011                                                                                               |   | Amortized Cost     |   |   | Fair Value |   |
|   |                                                                                                         |   | (In Thousands)     |   |
|   |                                                                                                         |   |               |   |
|   | Within one year                                                                                              |   | $                  | 1,345  |   |   | $ | 1,364 |   |
|   | One to five years                                                                                            |   |               | 22,086 |   |   |   | 22,469 |   |
|   | Five to ten years                                                                                            |   |               | 13,343 |   |   |   | 13,604 |   |
|   | After ten years                                                                                              |   |               | 13,796 |   |   |   | 13,634 |   |
|   |                                                                                                         |   |               | 50,570 |   |   |   | 51,071 |   |
|   | Government-sponsored enterprise (GSE) - residential mortgage-backed and other asset-backed agency securities |   |               | 28,392 |   |   |   | 29,245 |   |
|   | Totals                                                                                                       |   | $                  | 78,962 |   |   | $ | 80,316 |   |

----

|                                                                       |   | March 31, 2011      |   |
|----------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                       |   | Less than 12 Months |   |   | 12 Months or More |   |   | Total |   |
| Description of Securities                                             |   | Fair Value          |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |
|                                                                       |   | (In Thousands)      |   |
|                                                                       |   |                |   |
| Federal agencies                                                           |   | $                   | 8,855  |   |   | $ | (76 | ) |   | $ | - |   |   | $ | - |   |   | $ | 8,855 |   |   | $ | (76 | ) |
| State and municipal                                                        |   |                | 2,176  |   |   |   | (19 | ) |   |   | 750 |   |   |   | (28 | ) |   |   | 2,926 |   |   |   | (47 | ) |
| GSE - residential mortgage-backed and other asset-backed agency securities |   |                | 5,925  |   |   |   | (68 | ) |   |   | - |   |   |   | - |   |   |   | 5,925 |   |   |   | (68 | ) |
| Corporate                                                                  |   |                | -      |   |   |   | - |   |   |   | 1,160 |   |   |   | (607 | ) |   |   | 1,160 |   |   |   | (607 | ) |
|                                                                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total temporarily impaired securities                                      |   | $                   | 16,956 |   |   | $ | (163 | ) |   | $ | 1,910 |   |   | $ | (635 | ) |   | $ | 18,866 |   |   | $ | (798 | ) |
|                                                                       |   |

|                                                                       |   | December 31, 2010   |   |
|----------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                       |   | Less than 12 Months |   |   | 12 Months or More |   |   | Total |   |
| Description of Securities                                                  |   | Fair Value          |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |
|                                                                       |   | (In Thousands)      |   |
|                                                                       |   |                |   |
| Federal agencies                                                           |   | $                   | 3,952  |   |   | $ | (63 | ) |   | $ | - |   |   | $ | - |   |   | $ | 3,952 |   |   | $ | (63 | ) |
| State and municipal                                                        |   |                | 2,752  |   |   |   | (70 | ) |   |   | 724 |   |   |   | (54 | ) |   |   | 3,476 |   |   |   | (124 | ) |
| GSE - residential mortgage-backed and other asset-backed agency securities |   |                | 4,988  |   |   |   | (109 | ) |   |   | - |   |   |   | - |   |   |   | 4,988 |   |   |   | (109 | ) |
| Corporate                                                                  |   |                | -      |   |   |   | - |   |   |   | 936 |   |   |   | (832 | ) |   |   | 936 |   |   |   | (832 | ) |
|                                                                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total temporarily impaired securities                                      |   | $                   | 11,692 |   |   | $ | (242 | ) |   | $ | 1,660 |   |   | $ | (886 | ) |   | $ | 13,352 |   |   | $ | (1,128 | ) |
|                                                                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

|   |                                             |   | March 31, 2011 |    |   | December 31, 2010 |   |
|--------|--------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|   |                                             |   | (In Thousands) |    |
|   | Residential real estate                          |   |           |    |
|   | Construction                                     |   | $              | 4,876   |   |              | $      | 6,975 |   |
|   | One-to-four family residential                   |   |           | 114,535 |   |              |   | 117,616 |   |
|   | Multi-family residential                         |   |           | 16,597  |   |              |   | 14,997 |   |
|   | Nonresidential real estate and agricultural land |   |           | 87,882  |   |              |   | 89,607 |   |
|   | Land (not used for agricultural purposes)        |   |           | 20,529  |   |              |   | 21,016 |   |
|   | Commercial                                       |   |           | 16,759  |   |              |   | 16,413 |   |
|   | Consumer and other                               |   |           | 4,206   |   |              |   | 4,533 |   |
|   |                                             |   |           | 265,384 |   |              |   | 271,157 |   |
|   | Unamortized deferred loan costs                  |   |           | 476     |   |              |   | 485 |   |
|   | Undisbursed loans in process                     |   |           | (1,513  | )      |              |   | (2,388 | ) |
|   | Allowance for loan losses                        |   |           | (3,708  | )      |              |   | (3,806 | ) |
|   | Total loans                                      |   | $              | 260,639 |   |              | $      | 265,448 |   |

|                                                              |   | Residential    |   |   |      |   |    |         |   |   |           |   |   |   |   |   |       |   |
|-------------------------------------------------------------------|--------|----------------|--------|--------|-----------|--------|---------|--------------|--------|--------|----------------|--------|--------|--------|--------|--------|------------|--------|
|                                                              |   | Construction   |   |   | 1-4Family |   |    | Multi-Family |   |   | Nonresidential |   |   | Land   |   |   | Commercial |   |   | Consumer |   |   | Total |   |
|                                                              |   | (In Thousands) |   |
| Three Months Ended March 31, 2011Balances at beginning of Period: |   | $              | 35     |   |      | $      | 746     |         |   | $      | 138            |   |   | $      | 1,632  |   |       | $      | 976 |   |   | $ | 157 |   |   | $ | 122 |   |   | $ | 3,806 |   |
| Provision for losses                                              |   |           | (5     | )      |      |   | 340     |         |   |   | -              |   |   |   | 205    |   |       |   | (26 | ) |   |   | - |   |   |   | (40 | ) |   |   | 474 |   |
| Loans charged off                                                 |   |           | -      |   |      |   | (197    | )            |   |   | -              |   |   |   | (368   | )      |       |   | - |   |   |   | - |   |   |   | (19 | ) |   |   | (584 | ) |
| Recoveries on loans                                               |   |           | -      |   |      |   | -       |         |   |   | -              |   |   |   | -      |   |       |   | - |   |   |   | - |   |   |   | 12 |   |   |   | 12 |   |
| Balances at end of period                                         |   | $              | 30     |   |      | $      | 889     |         |   | $      | 138            |   |   | $      | 1,469  |   |       | $      | 950 |   |   | $ | 157 |   |   | $ | 75 |   |   | $ | 3,708 |   |
|                                                              |   |           |   |   |      |   |    |         |   |   |           |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of March 31, 2011Allowance for losses:                         |   |           |   |   |      |   |    |         |   |   |           |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment:                            |   | $              | 14     |   |      | $      | 253     |         |   | $      | 30             |   |   | $      | 34     |   |       | $      | 661 |   |   | $ | 37 |   |   | $ | - |   |   | $ | 1,029 |   |
| Collectively evaluated for impairment:                            |   |           | 16     |   |      |   | 636     |         |   |   | 108            |   |   |   | 1,435  |   |       |   | 289 |   |   |   | 120 |   |   |   | 75 |   |   |   | 2,679 |   |
| Balances at end of period                                         |   | $              | 30     |   |      | $      | 889     |         |   | $      | 138            |   |   | $      | 1,469  |   |       | $      | 950 |   |   | $ | 157 |   |   | $ | 75 |   |   | $ | 3,708 |   |
| Loans:                                                            |   |           |   |   |      |   |    |         |   |   |           |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment:                            |   | $              | 167    |   |      | $      | 5,078   |         |   | $      | 2,324          |   |   | $      | 4,468  |   |       | $      | 6,275 |   |   | $ | 422 |   |   | $ | - |   |   | $ | 18,734 |   |
| Collectively evaluated for impairment:                            |   |           | 4,709  |   |      |   | 109,457 |         |   |   | 14,273         |   |   |   | 83,414 |   |       |   | 14,254 |   |   |   | 16,337 |   |   |   | 4,206 |   |   |   | 246,650 |   |
| Balances at end of period                                         |   | $              | 4,876  |   |      | $      | 114,535 |         |   | $      | 16,597         |   |   | $      | 87,882 |   |       | $      | 20,529 |   |   | $ | 16,759 |   |   | $ | 4,206 |   |   | $ | 265,384 |   |

----

|                                   |   | Residential  |   |   |      |   |    |         |   |   |           |   |   |   |   |   |       |   |
|----------------------------------------|--------|--------------|--------|--------|-----------|--------|---------|--------------|--------|--------|----------------|--------|--------|--------|--------|--------|------------|--------|
|                                   |   | Construction |   |   | 1-4Family |   |    | Multi-Family |   |   | Nonresidential |   |   | Land   |   |   | Commercial |   |   | Consumer |   |   | Total |   |
|                                   |   |         |   |   |      |   |    |         |   |   |           |   |   |   |   |   |       |   |   |   |   |   |   |   |
| As of December 31, 2010                |   |         |   |   |      |   |    |         |   |   |           |   |   |   |   |   |       |   |   |   |   |   |   |   |
| Allowance for losses:                  |   |         |   |   |      |   |    |         |   |   |           |   |   |   |   |   |       |   |   |   |   |   |   |   |
| Individually evaluated for impairment: |   | $            | 14     |   |      | $      | 200     |         |   | $      | 34             |   |   | $      | 351    |   |       | $      | 578 |   |   | $ | 37 |   |   | $ | - |   |   | $ | 1,214 |   |
| Collectively evaluated for impairment: |   |         | 21     |   |      |   | 546     |         |   |   | 104            |   |   |   | 1,281  |   |       |   | 398 |   |   |   | 120 |   |   |   | 122 |   |   |   | 2,592 |   |
| Balances at end of period              |   | $            | 35     |   |      | $      | 746     |         |   | $      | 138            |   |   | $      | 1,632  |   |       | $      | 976 |   |   | $ | 157 |   |   | $ | 122 |   |   | $ | 3,806 |   |
|                                   |   |         |   |   |      |   |    |         |   |   |           |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans:                                 |   |         |   |   |      |   |    |         |   |   |           |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment: |   | $            | 278    |   |      | $      | 7,769   |         |   | $      | 910            |   |   | $      | 6,493  |   |       | $      | 6,341 |   |   | $ | 901 |   |   | $ | - |   |   | $ | 22,692 |   |
| Collectively evaluated for impairment: |   |         | 6,697  |   |      |   | 109,847 |         |   |   | 14,087         |   |   |   | 83,114 |   |       |   | 14,675 |   |   |   | 15,512 |   |   |   | 4,533 |   |   |   | 248,465 |   |
| Balances at end of period              |   | $            | 6,975  |   |      | $      | 117,616 |         |   | $      | 14,997         |   |   | $      | 89,607 |   |       | $      | 21,016 |   |   | $ | 16,413 |   |   | $ | 4,533 |   |   | $ | 271,157 |   |

| March 31, 2011           |   | Total Portfolio |    |   | Pass   |   |    | Special Mention |   |   | Substandard |   |   | Doubtful |   |
|--------------------------|--------|-----------------|---------|--------|--------|--------|---------|-----------------|--------|--------|-------------|--------|--------|----------|--------|
|                     |   | (In Thousands)  |    |
|                     |   |            |    |
| Construction             |   | $               | 4,876   |   |   | $      | 4,624   |            |   | $      | 85          |   |   | $        | 167    |   |   | $ | - |   |
| 1-4 family residential   |   |            | 114,535 |   |   |   | 105,869 |            |   |   | 3,398       |   |   |     | 4,991  |   |   |   | 277 |   |
| Multi-family residential |   |            | 16,597  |   |   |   | 14,273  |            |   |   | -           |   |   |     | 2,324  |   |   |   | - |   |
| Nonresidential           |   |            | 87,882  |   |   |   | 81,669  |            |   |   | 1,745       |   |   |     | 4,468  |   |   |   | - |   |
| Land                     |   |            | 20,529  |   |   |   | 13,859  |            |   |   | 2,692       |   |   |     | 3,978  |   |   |   | - |   |
| Commercial               |   |            | 16,759  |   |   |   | 16,113  |            |   |   | 224         |   |   |     | 422    |   |   |   | - |   |
| Consumer                 |   |            | 4,206   |   |   |   | 4,160   |            |   |   | 19          |   |   |     | 27     |   |   |   | - |   |
| Total Loans              |   | $               | 265,384 |   |   | $      | 240,567 |            |   | $      | 8,163       |   |   | $        | 16,377 |   |   | $ | 277 |   |

| December 31, 2010        |   | Total Portfolio |    |   | Pass   |   |    | Special Mention |   |   | Substandard |   |   | Doubtful |   |
|--------------------------|--------|-----------------|---------|--------|--------|--------|---------|-----------------|--------|--------|-------------|--------|--------|----------|--------|
|                     |   | (In Thousands)  |    |
|                     |   |            |    |
| Construction             |   | $               | 6,975   |   |   | $      | 6,681   |            |   | $      | 16          |   |   | $        | 278    |   |   | $ | - |   |
| 1-4 family residential   |   |            | 117,616 |   |   |   | 107,010 |            |   |   | 5,256       |   |   |     | 5,224  |   |   |   | 126 |   |
| Multi-family residential |   |            | 14,997  |   |   |   | 14,087  |            |   |   | -           |   |   |     | 334    |   |   |   | 576 |   |
| Nonresidential           |   |            | 89,607  |   |   |   | 81,624  |            |   |   | 1,471       |   |   |     | 6,512  |   |   |   | - |   |
| Land                     |   |            | 21,016  |   |   |   | 14,199  |            |   |   | 2,845       |   |   |     | 3,972  |   |   |   | - |   |
| Commercial               |   |            | 16,413  |   |   |   | 15,290  |            |   |   | 230         |   |   |     | 893    |   |   |   | - |   |
| Consumer                 |   |            | 4,533   |   |   |   | 4,188   |            |   |   | 25          |   |   |     | 320    |   |   |   | - |   |
| Total Loans              |   | $               | 271,157 |   |   | $      | 243,079 |            |   | $      | 9,843       |   |   | $        | 17,533 |   |   | $ | 702 |   |

----

| ·   | An expected loan payment is in excess of 90 days past due (non-performing), or non-earning. |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | The financial condition of the borrower has deteriorated to such a point that close monitoring is necessary. Payments do not necessarily have to be past due. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Repayment from the primary source of repayment is gone or impaired. |
|--------------------|---------------------------------------------------------------------|

| ·   | The borrower has filed for bankruptcy protection. |
|--------------------|---------------------------------------------------|

| ·   | The loans are inadequately protected by the net worth and cash flow of the borrower. |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | The guarantors have been called upon to make payments. |
|--------------------|--------------------------------------------------------|

| ·   | The borrower has exhibited a continued inability to reduce principal (although interest payment may be current). |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | The bank is considering a legal action against the borrower. |
|--------------------|--------------------------------------------------------------|

| ·   | The collateral position has deteriorated to a point where there is a possibility the bank may sustain some loss. This may be due to the financial condition, improper documentation, or to a reduction in the value of the collateral. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Although loss may not seem likely, the Company has gone to extraordinary lengths (restructuring with extraordinary lengths) to protect its position in order to maintain a high probability of repayment. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Flaws in documentation leave the Company in a subordinated or unsecured position. |
|--------------------|-----------------------------------------------------------------------------------|

----

| March 31, 2011           |   | 30-59 Days Past Due                  |   |   | 60-89 Days Past Due |   |   | Greater than 90 Days |   |   | Total Past Due |   |   | Current |   |   | Total Loans Receivables |   |    | Total Loans 90 Days and Accruing |   |
|--------------------------|--------|--------------------------------------|--------|--------|---------------------|--------|--------|----------------------|--------|--------|----------------|--------|--------|---------|--------|--------|-------------------------|--------|---------|----------------------------------|--------|
|                     |   | (In Thousands, Except Share Amounts) |   |
| Construction             |   | $                                    | -      |   |                | $      | -      |                 |   | $      | 167            |   |   | $       | 167    |   |                    | $      | 4,710   |                             |   | $ | 4,876 |   |   | $ | - |   |
| 1-4 family residential   |   |                                 | 1,181  |   |                |   | 331    |                 |   |   | 2,542          |   |   |    | 4,054  |   |                    |   | 110,481 |                             |   |   | 114,535 |   |   |   | - |   |
| Multi-family residential |   |                                 | -      |   |                |   | -      |                 |   |   | 337            |   |   |    | 337    |   |                    |   | 16,260  |                             |   |   | 16,597 |   |   |   | - |   |
| Nonresidential           |   |                                 | 127    |   |                |   | 171    |                 |   |   | 2,634          |   |   |    | 2,932  |   |                    |   | 84,950  |                             |   |   | 87,882 |   |   |   | - |   |
| Land                     |   |                                 | 89     |   |                |   | 79     |                 |   |   | 1,774          |   |   |    | 1,942  |   |                    |   | 18,587  |                             |   |   | 20,529 |   |   |   | - |   |
| Commercial               |   |                                 | 53     |   |                |   | 50     |                 |   |   | 325            |   |   |    | 428    |   |                    |   | 16,331  |                             |   |   | 16,759 |   |   |   | - |   |
| Consumer                 |   |                                 | 22     |   |                |   | -      |                 |   |   | 23             |   |   |    | 45     |   |                    |   | 4,160   |                             |   |   | 4,206 |   |   |   | - |   |
|                     |   | $                                    | 1,472  |   |                | $      | 631    |                 |   | $      | 7,802          |   |   | $       | 9,905  |   |                    | $      | 255,479 |                             |   | $ | 265,384 |   |   | $ | - |   |

| December 31, 2010        |   | 30-59 Days Past Due                  |   |   | 60-89 Days Past Due |   |   | Greater than 90 Days |   |   | Total Past Due |   |   | Current |   |   | Total Loans Receivables |   |    | Total Loans 90 Days and Accruing |   |
|--------------------------|--------|--------------------------------------|--------|--------|---------------------|--------|--------|----------------------|--------|--------|----------------|--------|--------|---------|--------|--------|-------------------------|--------|---------|----------------------------------|--------|
|                     |   | (In Thousands, Except Share Amounts) |   |
| Construction             |   | $                                    | -      |   |                | $      | -      |                 |   | $      | 165            |   |   | $       | 165    |   |                    | $      | 6,810   |                             |   | $ | 6,975 |   |   | $ | - |   |
| 1-4 family residential   |   |                                 | 132    |   |                |   | 839    |                 |   |   | 2,304          |   |   |    | 3,275  |   |                    |   | 114,341 |                             |   |   | 117,616 |   |   |   | - |   |
| Multi-family residential |   |                                 | -      |   |                |   | -      |                 |   |   | 910            |   |   |    | 910    |   |                    |   | 14,087  |                             |   |   | 14,997 |   |   |   | - |   |
| Nonresidential           |   |                                 | -      |   |                |   | -      |                 |   |   | 4,673          |   |   |    | 4,673  |   |                    |   | 84,934  |                             |   |   | 89,607 |   |   |   | - |   |
| Land                     |   |                                 | -      |   |                |   | 372    |                 |   |   | 1,749          |   |   |    | 2,121  |   |                    |   | 18,895  |                             |   |   | 21,016 |   |   |   | - |   |
| Commercial               |   |                                 | 542    |   |                |   | -      |                 |   |   | 265            |   |   |    | 807    |   |                    |   | 15,606  |                             |   |   | 16,413 |   |   |   | - |   |
| Consumer                 |   |                                 | 37     |   |                |   | -      |                 |   |   | 315            |   |   |    | 352    |   |                    |   | 4,181   |                             |   |   | 4,533 |   |   |   | - |   |
|                     |   | $                                    | 711    |   |                | $      | 1,211  |                 |   | $      | 10,381         |   |   | $       | 12,303 |   |                    | $      | 258,854 |                             |   | $ | 271,157 |   |   | $ | - |   |

----

|                                         |   | Recorded Investment |   |   | Unpaid Principal Balance |   |   | SpecificAllowance |   |   | Average Investment |   |   | Interest Income Recognized |   |
|----------------------------------------------|--------|---------------------|--------|--------|--------------------------|--------|--------|-------------------|--------|--------|--------------------|--------|--------|----------------------------|--------|
| Impaired loans without a specific allowance: |   |
| Construction                                 |   | $                   | -      |   |                     | $      | -      |              |   | $      | -                  |   |   | $                          | 19     |   |   | $ | 1 |   |
| 1-4 family residential                       |   |                | 3,198  |   |                     |   | 3,373  |              |   |   | -                  |   |   |                       | 4,401  |   |   |   | 54 |   |
| Multi-family residential                     |   |                | 1,987  |   |                     |   | 1,987  |              |   |   | -                  |   |   |                       | 1,516  |   |   |   | 9 |   |
| Nonresidential                               |   |                | 4,039  |   |                     |   | 5,024  |              |   |   | -                  |   |   |                       | 4,697  |   |   |   | 34 |   |
| Land                                         |   |                | 2,383  |   |                     |   | 2,383  |              |   |   | -                  |   |   |                       | 2,406  |   |   |   | 27 |   |
| Commercial                                   |   |                | 364    |   |                     |   | 392    |              |   |   | -                  |   |   |                       | 410    |   |   |   | 5 |   |
| Consumer                                     |   |                | -      |   |                     |   | -      |              |   |   | -                  |   |   |                       | -      |   |   |   | - |   |
|                                         |   | $                   | 11,971 |   |                     | $      | 13,159 |              |   | $      | -                  |   |   | $                          | 13,449 |   |   | $ | 130 |   |

|                                      |   | Recorded Investment |   |   | Unpaid Principal Balance |   |   | Specific Allowance |   |   | Average Investment |   |   | Interest Income Recognized |   |
|-------------------------------------------|--------|---------------------|--------|--------|--------------------------|--------|--------|--------------------|--------|--------|--------------------|--------|--------|----------------------------|--------|
| Impaired loans with a specific allowance: |   |                |   |   |                     |   |   |               |   |   |               |   |   |                       |   |
| Construction                              |   | $                   | 167    |   |                     | $      | 167    |               |   | $      | 14                 |   |   |                       | 166    |   |   | $ | - |   |
| 1-4 family residential                    |   |                | 1,880  |   |                     |   | 1,880  |               |   |   | 253                |   |   |                       | 1,895  |   |   |   | 5 |   |
| Multi-family residential                  |   |                | 337    |   |                     |   | 337    |               |   |   | 30                 |   |   |                       | 335    |   |   |   | - |   |
| Nonresidential                            |   |                | 429    |   |                     |   | 743    |               |   |   | 34                 |   |   |                       | 428    |   |   |   | - |   |
| Land                                      |   |                | 3,892  |   |                     |   | 4,402  |               |   |   | 661                |   |   |                       | 3,889  |   |   |   | 12 |   |
| Commercial                                |   |                | 58     |   |                     |   | 58     |               |   |   | 37                 |   |   |                       | 482    |   |   |   | - |   |
| Consumer                                  |   |                | -      |   |                     |   | -      |               |   |   | -                  |   |   |                       | -      |   |   |   | - |   |
|                                      |   | $                   | 6,763  |   |                     | $      | 7,587  |               |   | $      | 1,029              |   |   | $                          | 7,195  |   |   | $ | 17 |   |

|                     |   | Recorded Investment |   |   | Unpaid Principal Balance |   |   | Specific Allowance |   |   | Average Investment |   |   | Interest Income Recognized |   |
|--------------------------|--------|---------------------|--------|--------|--------------------------|--------|--------|--------------------|--------|--------|--------------------|--------|--------|----------------------------|--------|
| Total Impaired Loans:    |   |                |   |   |                     |   |   |               |   |   |               |   |   |                       |   |
| Construction             |   | $                   | 167    |   |                     | $      | 167    |               |   | $      | 14                 |   |   | $                          | 185    |   |   | $ | 1 |   |
| 1-4 family residential   |   |                | 5,078  |   |                     |   | 5,253  |               |   |   | 253                |   |   |                       | 6,296  |   |   |   | 59 |   |
| Multi-family residential |   |                | 2,324  |   |                     |   | 2,324  |               |   |   | 30                 |   |   |                       | 1,851  |   |   |   | 9 |   |
| Nonresidential           |   |                | 4,468  |   |                     |   | 5,767  |               |   |   | 34                 |   |   |                       | 5,125  |   |   |   | 34 |   |
| Land                     |   |                | 6,275  |   |                     |   | 6,785  |               |   |   | 661                |   |   |                       | 6,295  |   |   |   | 39 |   |
| Commercial               |   |                | 422    |   |                     |   | 450    |               |   |   | 37                 |   |   |                       | 892    |   |   |   | 5 |   |
| Consumer                 |   |                | -      |   |                     |   | -      |               |   |   | -                  |   |   |                       | -      |   |   |   | - |   |
|                     |   | $                   | 18,734 |   |                     | $      | 20,746 |               |   | $      | 1,029              |   |   | $                          | 20,644 |   |   | $ | 147 |   |

----

|                                        |   | Recorded Investment |   |   | Unpaid Principal Balance |   |   | Specific Allowance |   |   | Average Investment |   |   | Interest Income Recognized |   |
|---------------------------------------------|--------|---------------------|--------|--------|--------------------------|--------|--------|--------------------|--------|--------|--------------------|--------|--------|----------------------------|--------|
| Impaired loans withouta specific allowance: |   |                |   |   |                     |   |   |               |   |   |               |   |   |                       |   |
| Construction                                |   | $                   | 113    |   |                     | $      | 113    |               |   | $      | -                  |   |   | $                          | 260    |   |   | $ | 9 |   |
| 1-4 family residential                      |   |                | 5,834  |   |                     |   | 6,011  |               |   |   | -                  |   |   |                       | 2,602  |   |   |   | 67 |   |
| Multi-family residential                    |   |                | 334    |   |                     |   | 334    |               |   |   | -                  |   |   |                       | 875    |   |   |   | 16 |   |
| Nonresidential                              |   |                | 5,106  |   |                     |   | 6,405  |               |   |   | -                  |   |   |                       | 6,125  |   |   |   | 141 |   |
| Land                                        |   |                | 2,856  |   |                     |   | 3,366  |               |   |   | -                  |   |   |                       | 1,609  |   |   |   | 51 |   |
| Commercial                                  |   |                | 381    |   |                     |   | 410    |               |   |   | -                  |   |   |                       | 713    |   |   |   | 32 |   |
| Consumer                                    |   |                | -      |   |                     |   | -      |               |   |   | -                  |   |   |                       | -      |   |   |   | - |   |
|                                        |   | $                   | 14,624 |   |                     | $      | 16,639 |               |   | $      | -                  |   |   | $                          | 12,184 |   |   | $ | 316 |   |

|                                      |   | Recorded Investment |   |   | Unpaid Principal Balance |   |   | Specific Allowance |   |   | Average Investment |   |   | Interest Income Recognized |   |
|-------------------------------------------|--------|---------------------|--------|--------|--------------------------|--------|--------|--------------------|--------|--------|--------------------|--------|--------|----------------------------|--------|
| Impaired loans with a specific allowance: |   |                |   |   |                     |   |   |               |   |   |               |   |   |                       |   |
| Construction                              |   | $                   | 165    |   |                     | $      | 165    |               |   | $      | 14                 |   |   |                       | 165    |   |   | $ | 1 |   |
| 1-4 family residential                    |   |                | 1,935  |   |                     |   | 1,935  |               |   |   | 200                |   |   |                       | 1,866  |   |   |   | 43 |   |
| Multi-family residential                  |   |                | 576    |   |                     |   | 576    |               |   |   | 34                 |   |   |                       | 230    |   |   |   | - |   |
| Nonresidential                            |   |                | 1,387  |   |                     |   | 1,387  |               |   |   | 351                |   |   |                       | 792    |   |   |   | - |   |
| Land                                      |   |                | 3,485  |   |                     |   | 3,485  |               |   |   | 578                |   |   |                       | 1,779  |   |   |   | 8 |   |
| Commercial                                |   |                | 520    |   |                     |   | 520    |               |   |   | 37                 |   |   |                       | 520    |   |   |   | 34 |   |
| Consumer                                  |   |                | -      |   |                     |   | -      |               |   |   | -                  |   |   |                       | -      |   |   |   | - |   |
|                                      |   | $                   | 8,068  |   |                     | $      | 8,068  |               |   | $      | 1,214              |   |   | $                          | 5,352  |   |   | $ | 86 |   |

|                     |   | Recorded Investment |   |   | Unpaid Principal Balance |   |   | Specific Allowance |   |   | Average Investment |   |   | Interest Income Recognized |   |
|--------------------------|--------|---------------------|--------|--------|--------------------------|--------|--------|--------------------|--------|--------|--------------------|--------|--------|----------------------------|--------|
| Total Impaired Loans:    |   |                |   |   |                     |   |   |               |   |   |               |   |   |                       |   |
| Construction             |   | $                   | 278    |   |                     | $      | 278    |               |   | $      | 14                 |   |   | $                          | 425    |   |   | $ | 10 |   |
| 1-4 family residential   |   |                | 7,769  |   |                     |   | 7,946  |               |   |   | 200                |   |   |                       | 4,468  |   |   |   | 110 |   |
| Multi-family residential |   |                | 910    |   |                     |   | 910    |               |   |   | 34                 |   |   |                       | 1,105  |   |   |   | 16 |   |
| Nonresidential           |   |                | 6,493  |   |                     |   | 7,792  |               |   |   | 351                |   |   |                       | 6,917  |   |   |   | 141 |   |
| Land                     |   |                | 6,341  |   |                     |   | 6,851  |               |   |   | 578                |   |   |                       | 3,388  |   |   |   | 59 |   |
| Commercial               |   |                | 901    |   |                     |   | 930    |               |   |   | 37                 |   |   |                       | 1,233  |   |   |   | 66 |   |
| Consumer                 |   |                | -      |   |                     |   | -      |               |   |   | -                  |   |   |                       | -      |   |   |   | - |   |
|                     |   | $                   | 22,692 |   |                     | $      | 24,707 |               |   | $      | 1,214              |   |   | $                          | 17,536 |   |   | $ | 402 |   |

----

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| ·   | We expect to face increased regulation of our industry. Compliance with such regulation may increase our costs and limit our ability to pursue business opportunities. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our ability to assess the creditworthiness of our customers may be impaired if the models and approach we use to select, manage and underwrite our customers become less predictive of future behaviors. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The process we use to estimate losses inherent in our credit exposure requires difficult, subjective and complex judgments, including forecasts of economic conditions and how these economic predictions might impair the ability of our borrowers to repay their loans, which may no longer be capable of accurate estimation which may, in turn, impact the reliability of the process. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our ability to borrow from other financial institutions on favorable terms or at all could be adversely affected by further disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Competition in our industry could intensify as a result of the increasing consolidation of financial services companies in connection with current market conditions. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We may be required to pay significantly higher deposit insurance premiums because market developments have significantly depleted the insurance fund of the FDIC and reduced the ratio of reserves to insured deposits. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Salaries and employee benefits, a 4.7% increase period to period, reflective of increased branch personnel |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·  | Net occupancy and equipment expenses, a 5.9% increase period to period, reflective of the addition of branches and information technology |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Professional fees, a 28.3% increase period to period, reflective of the current regulatory environment which has placed pressure on financial institutions to provide third party analysis at all levels of the operation |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Period                             |   | Total Number of Shares (or Units) Purchased (1) |   |   | Average Price Paid Per Share (or Unit) |   |   | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs |   |   | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs |   |
|------------------------------------|--------|-------------------------------------------------|--------|--------|----------------------------------------|--------|--------|---------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|
| January 2011(1/1/11 thru 1/31/11)  |   |                                            | -      |   |                                   |   | -      |                                                                                        |   |   | -                                                                                                                       |   |   |   | 13,830 |   |
| February 2011(2/1/11 thru 2/28/11) |   |                                            | 100    |   |                                   |   | 15.50  |                                                                                        |   |   | 100                                                                                                                     |   |   |   | 13,730 |   |
| March 2011(3/1/11 thru 3/31/11)    |   |                                            | 900    |   |                                   |   | 15.84  |                                                                                        |   |   | 900                                                                                                                     |   |   |   | 12,830 |   |
|  Total                        |   |                                            | 1,000  |   |                                   |   | 15.81  |                                                                                        |   |   | 1,000                                                                                                                   |   |   |   | 12,830 |   |

| (1)   | During the periods reported above, there were 1,000 shares of Common Stock that were purchased by the Company through a publicly announced plan or program. The shares of Common Stock were purchased in open-market transactions for the purpose of satisfying a 2010 award under the Corporation’s Recognition and Retention Plan. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31(1) | CEO Certification required by 17 C.F.R. Section 240.13a-14(a)                                                          |
|--------|-------|------------------------------------------------------------------------------------------------------------------------|
|   | 31(2) | CFO Certification required by 17 C.F.R. Section 240.13a-14(a)                                                          |
|   | 32    | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

----

|               | RIVER VALLEY BANCORP |
|--------------------|----------------------|
|               |                 |   |
|               |                 |   |
| Date: May 16, 2011 | By:                  | /s/ Matthew P. Forrester |
|               |                 | Matthew P. Forrester |
|               |                 | President and Chief Executive Officer |
|               |                 |   |
|               |                 |   |
| Date: May 16, 2011 | By:                  | /s/ Vickie L. Grimes |
|               |                 | Vickie L. Grimes |
|               |                 | Vice President of Finance |

----

| No.   |   | Description                                                                                                             |   | Location |
|-------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|----------|
| 31(1) |   | CEO Certification required by 17 C.F.R. Section 240.13a-14(a)                                                           |   | Attached |
| 31(2) |   | CFO Certification required by 17 C.F.R. Section 240.13a-14(a)                                                           |   | Attached |
| 32    |   | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |   | Attached |

----