Unaudited

($ in Thousands)

For the twelve months ended December 31,

2003

2002

$ Change

% Change

Interest income:

Loans receivable

$ 4,954

$ 5,030

$ (76)

$ -2%

Investment securities

1,021

950

71

7%

Federal funds sold

27

48

(21)

-44%

Interest bearing deposits with banks

102

129

(27)

-21%

Total interest income

6,104

6,157

(53)

-1%

Interest expense:

Deposits

1,812

2,056

(244)

-12%

Other

244

294

(50)

-17%

Total interest expense

2,056

2,350

(294)

-13%

Net interest income

4,048

3,807

241

6%

Provision for loan losses

100

800

(700)

-88%

Net interest income after

provision for loan losses

3,948

3,007

941

31%

Noninterest income:

Mortgage banking income

1,161

1,284

(123)

-10%

Service charges on deposit accounts

153

187

(34)

-18%

Other

180

139

41

29%

Total noninterest income

1,494

1,610

(116)

-7%

Noninterest expense:

Compensation and benefits

3,246

2,916

330

11%

Occupancy and equipment

530

521

9

2%

Other

1,094

992

102

10%

Total noninterest expense

4,870

4,429

441

10%

Income before income taxes

572

188

384

204%

Income taxes

210

80

130

163%

Net income

$ 362

$ 108

$ 254

235%

Basic net income per share

$ 0.43

$ 0.13

$ 0.30

231%