We recorded a provision for loan losses of $1.5 million for the twelve months ended December 31, 2010 and a provision for loan losses of $687,000 for the twelve months ended December 31, 2009. At December 31, 2010, nonperforming loans (including troubled debt restructurings not included in nonaccrual loans), totaled $5.4 million, or 2.8% of total loans, as compared to $3.4 million, or 2.0% of total loans, at December 31, 2009. The allowance for loan losses to total loans receivable increased to 1.11% at December 31, 2010 as compared to 0.55% at December 31, 2009. 

Noninterest income increased by $537,000, or 22.6%, to $2.9 million for the twelve months ended December 31, 2010 from $2.4 million for the twelve months ended December 31, 2009. The increase was primarily due to an increase in gains from the sale of securities and mortgage loans.

Noninterest expense increased by $173,000, or 2.0%, to $8.8 million for the twelve months ended December 31, 2010 from $8.7 million for the twelve months ended December 31, 2009. This increase was primarily attributable to an increase in compensation and benefits, including mortgage commissions, higher audit fees and outside consulting fees. 

COMPARISON OF FINANCIAL CONDITION DATA - DECEMBER 31, 2010 AND DECEMBER 31, 2009

Total assets increased by $30.7 million, or 14.7%, to $238.8 million at December 31, 2010 from $208.1 million at December 31, 2009. The increase was primarily the result of an increase in securities and loans.

Securities classified as available for sale increased by $8.6 million, or 63.6%, to $22.1 million at December 31, 2010 from $13.5 million at December 31, 2009, primarily as a result of investment of a portion of the proceeds from sale of common stock. At December 31, 2010, securities classified as available for sale consisted of collateralized mortgage obligations issued by government-sponsored enterprises, mortgage-backed securities, municipal obligations and agency securities.

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