Consolidated Balance Sheets See accompanying notes to consolidated financial statements. 20 (Dollars in thousands) December 31, _______________________________ 2010 2009 ___________ ___________ ASSETS Cash and non-interest bearing balances in financial institutions .............................................. $ 7,427 $ 8,705 Interest bearing balances in financial institutions..................................................................... 90 447 Federal funds sold ................................................................................................................... 3,421 4,070 ___________ __________ Total cash and cash equivalents ........................................................................................... 10,938 13,222 Securities available-for-sale ...................................................................................................... 142,055 124,776 Securities held-to-maturity ...................................................................................................... 18,397 19,557 Loans held-for-sale .................................................................................................................. 422 1,025 Loans receivable ...................................................................................................................... 418,233 458,245 Less: allowance for loan losses.................................................................................................. (9,121) (6,114) ___________ __________ Net loans receivable............................................................................................................. 409,112 452,131 Federal Home Loan Bank stock .............................................................................................. 3,381 3,650 Accrued interest receivable ...................................................................................................... 2,591 2,878 Premises and equipment.......................................................................................................... 19,293 19,590 Foreclosed real estate ............................................................................................................... 3,298 3,747 Cash value of bank owned life insurance ................................................................................. 12,452 12,049 Prepaid FDIC insurance premium .......................................................................................... 2,425 3,282 Other assets............................................................................................................................. 6,689 5,899 ___________ __________ Total assets.......................................................................................................................... $ 631,053 $ 661,806 ___________ __________ LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: Non-interest bearing ........................................................................................................... $ 50,712 $ 42,390 Interest bearing ................................................................................................................... 469,559 498,137 ___________ __________ Total ............................................................................................................................... 520,271 540,527 Repurchase agreements............................................................................................................ 16,074 15,893 Borrowed funds....................................................................................................................... 32,544 47,129 Accrued expenses and other liabilities ...................................................................................... 6,075 5,179 ___________ __________ Total liabilities .................................................................................................................... 574,964 608,728 Stockholders’ Equity: Preferred stock, no par or stated value;  10,000,000 shares authorized, none outstanding ............................................................ – .. – .. Common stock, no par or stated value; 10,000,000 shares authorized; shares issued: December 31, 2010 - 2,888,902 December 31, 2009 - 2,889,452 shares outstanding: December 31, 2010 - 2,826,796 December 31, 2009 - 2,818,578........................................................... 361 361 Additional paid-in capital........................................................................................................ 5,140 5,104 Accumulated other comprehensive income/(loss) .................................................................... (492) (170) Retained earnings .................................................................................................................... 52,398 49,312 Treasury stock, common shares at cost: December 31, 2010 - 62,106 December 31, 2009 - 70,874..................................... (1,318) (1,529) ___________ __________ Total stockholders’ equity ................................................................................................... 56,089 53,078 ___________ __________ Total liabilities and stockholders’ equity.............................................................................. $ 631,053 $ 661,806 ___________ __________