Securities available for sale increased $152.0 million, or 72.2 percent, to $362.4 million at September 30, 2010 from $210.4 million at December 31, 2009, as we invested the proceeds of our initial public stock offering and cash generated through operations in securities classified as available for sale. The increase in securities available for sale resulted from the purchase of $231.4 million of government-sponsored mortgage backed securities, government-sponsored collateralized mortgage obligations and agency securities, partially offset by principal repayments, maturities and calls of $79.9 million and sales of $1.7 million. 

Loans, net of the allowance for loan losses and deferred fees and discounts, decreased $30.5 million, or 4.4 percent, to $667.6 million at September 30, 2010 from $698.1 million at December 31, 2009, primarily due to a $19.6 million decrease in automobile loans, a $6.9 million decrease in commercial real estate loans, a $6.4 million decrease in commercial business loans and a $5.6 million decrease in real estate construction loans.  One- to four-family residential mortgage loans increased $9.1 million as $94.6 million in originations of one- to four-family residential mortgage loans were partially offset by loan sales of $45.5 million, loan repayments of $37.2 million and a $2.9 million reclassification to other real estate owned.

Deposits decreased $110.1 million, or 12.1 percent, to $799.9 million at September 30, 2010 from $910.0 million at December 31, 2009.  At December 31, 2009, deposits included $159.5 million in subscriptions received for the purchase of shares of common stock in our initial public stock offering. Upon the completion of the stock offering on January 20, 2010, $106.0 million of the net proceeds became capital of the Company.  Certificates of deposit increased $18.9 million, to $352.7 million at September 30, 2010 from $333.8 million at December 31, 2009, as customers sought the safety of insured deposit products as an alternative to other types of investments.