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<SEC-DOCUMENT>0000950152-06-002677.txt : 20060330
<SEC-HEADER>0000950152-06-002677.hdr.sgml : 20060330
<ACCEPTANCE-DATETIME>20060330082113
ACCESSION NUMBER:		0000950152-06-002677
CONFORMED SUBMISSION TYPE:	10KSB
PUBLIC DOCUMENT COUNT:		8
CONFORMED PERIOD OF REPORT:	20051231
FILED AS OF DATE:		20060330
DATE AS OF CHANGE:		20060330

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CENTRAL FEDERAL CORP
		CENTRAL INDEX KEY:			0001070680
		STANDARD INDUSTRIAL CLASSIFICATION:	SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
		IRS NUMBER:				341877137
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10KSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25045
		FILM NUMBER:		06720647

	BUSINESS ADDRESS:	
		STREET 1:		C/O CENTRAL FEDERAL BANK
		STREET 2:		601 MAIN ST
		CITY:			WELLSVILLE
		STATE:			OH
		ZIP:			43968
		BUSINESS PHONE:		3305321517

	MAIL ADDRESS:	
		STREET 1:		C/O CENTRAL FEDERAL BANK
		STREET 2:		601 MAIN ST
		CITY:			WELLSVILLE
		STATE:			OH
		ZIP:			43968

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GRAND CENTRAL FINANCIAL CORP
		DATE OF NAME CHANGE:	19980918
</SEC-HEADER>
<DOCUMENT>
<TYPE>10KSB
<SEQUENCE>1
<FILENAME>l17961ae10ksb.htm
<DESCRIPTION>CENTRAL FEDERAL CORPORATION       10KSB
<TEXT>
<HTML>
<HEAD>
<TITLE>Central Federal Corporation       10KSB</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>U.S. SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 10-KSB</B>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>For the Fiscal Year Ended December&nbsp;31, 2005</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>For the transition period from
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
to&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Commission File Number: 0-25045</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B><FONT style="border-bottom: 1px solid #000000">CENTRAL FEDERAL CORPORATION.</FONT></B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Name of Small Business Issuer in Its Charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Delaware<BR>
(State or Other Jurisdiction of<BR>
Incorporation or Organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">34-1877137<BR>
(I.R.S. Employer Identification No.)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">2923 Smith Road, Fairlawn, Ohio<BR>
(Address of Principal Executive Offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">44333<BR>
(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">(330)&nbsp;666-7979<BR>
(Issuer&#146;s Telephone Number, Including Area Code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Securities registered under Section&nbsp;12(b) of the Exchange Act: None</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Securities registered under Section&nbsp;12(g) of the Exchange Act:</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Common Stock, par value $.01 per share<BR>
(Title of Class)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check if the registrant is not required to file reports pursuant to Section&nbsp;13 or 15(d) of the
Exchange Act. <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by checkmark whether the registrant: (1)&nbsp;filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12&nbsp;months (or for such shorter period that the
registrant was required to file such reports), and (2)&nbsp;has been subject to such filing requirements
for the past 90&nbsp;days. YES <FONT face="Wingdings">&#254;</FONT> NO <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check if there is no disclosure of delinquent filers in response to Item&nbsp;405 of Regulation&nbsp;S-B
contained in this form, and no disclosure will be contained, to the best of the registrant&#146;s
knowledge, in definitive proxy or information statements incorporated by reference in Part&nbsp;III of
this Form 10-KSB or any amendment to this Form 10-KSB. <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant is a shell company (as defined in Rule&nbsp;12(b)-2 of the
Exchange Act). YES <FONT face="Wingdings">&#111;</FONT> NO <FONT face="Wingdings">&#254;</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The registrant&#146;s revenues for the fiscal year ended December&nbsp;31, 2005 were $9.6&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The aggregate market value of the voting and non-voting common equity of the registrant held by
non-affiliates as of March&nbsp;15, 2006 was $28,830,000 based upon the closing price as reported on the
Nasdaq&#174; Capital Market for that date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of March&nbsp;15, 2006, there were 4,543,662 shares of the registrant&#146;s Common Stock outstanding.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DOCUMENTS INCORPORATED BY REFERENCE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Portions of the registrant&#146;s Rule&nbsp;14a-3(b) Annual Report to Shareholders for its fiscal year ended
December&nbsp;31, 2005 and its Proxy Statement for the 2006 Annual Meeting of Stockholders to be held on
May&nbsp;18, 2006, which was filed with the Securities and Exchange Commission (the &#147;Commission&#148;) on
March&nbsp;30, 2006, are incorporated herein by reference into Parts II and III, respectively, of this
Form 10-KSB.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Transitional Small Business Disclosure Format (Check One): YES <FONT face="Wingdings">&#111;</FONT> NO <FONT face="Wingdings">&#254;</FONT>
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">







<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B><I>Page</I></B></TD>

</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101"><B>PART I</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#102">Item&nbsp;1. Description of Business </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#103">Item&nbsp;2. Description of Property </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#104">Item&nbsp;3. Legal Proceedings </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#105">Item&nbsp;4. Submission of Matters to a Vote of Security Holders </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106"><B>PART II</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-30px"><A href="#107">Item&nbsp;5. Market for Common Equity, Related Stockholder Matters and Small Business Issuer Purchases of Equity Securities </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#108">Item&nbsp;6. Management&#146;s Discussion and Analysis or Plan of Operation </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#109">Item&nbsp;7. Financial Statements </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#110">Item&nbsp;8. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#111">Item&nbsp;8A.&nbsp;Controls and Procedures </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#112">Item&nbsp;8B.&nbsp;Other Information </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113"><B>PART III</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:45px; text-indent:-30px"><A href="#114">Item&nbsp;9. Directors and Executive Officers, Promoters and Control Persons; Compliance with Section&nbsp;16(a) of the Exchange Act </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#115">Item&nbsp;10. Executive Compensation </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#116">Item&nbsp;11. Security Ownership of Certain Beneficial Owners and Management
And Related Stockholder Matters </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#117">Item&nbsp;12. Certain Relationships and Related Transactions </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#118">Item&nbsp;13. Exhibits </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#119">Item&nbsp;14. Principal Accountant Fees and Services </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#120"><B>SIGNATURES</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#121"><B>EXHIBIT INDEX</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="l17961aexv11w1.txt">Exhibit 11.1 Computation of Per Share Earnings</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="l17961aexv13w1.txt">Exhibit 13.1 Annual Report</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="l17961aexv21w1.txt">Exhibit 21.1 Subsidiaries of the Registrant</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="l17961aexv23w1.txt">Exhibit 23.1 Consent of Independent Public Accounting Firm</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="l17961aexv31w1.txt">Exhibit 31.1 302 Certification for CEO</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="l17961aexv31w2.txt">Exhibit 31.2 302 Certification for CFO</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="l17961aexv32w1.txt">Exhibit 32.1 906 Certification for CEO and CFO</A></FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>


<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Forward-Looking Statements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Form 10-KSB contains &#147;forward-looking statements&#148; which may be identified by the use of such
words as &#147;may,&#148; &#147;believe,&#148; &#147;expect,&#148; &#147;anticipate,&#148; &#147;should,&#148; &#147;plan,&#148; &#147;estimate,&#148; &#147;predict,&#148;
&#147;continue&#148; and &#147;potential&#148; or the negative of these terms or other comparable terminology. Examples
of forward-looking statements include, but are not limited to, estimates with respect to our
financial condition, results of operations and business that are subject to various factors which
could cause actual results to differ materially from these estimates. These factors include, but
are not limited to (i)&nbsp;general and local economic conditions, (ii)&nbsp;changes in interest rates,
deposit flows, demand for mortgages and other loans, real estate values and competition, (iii)
changes in accounting principles, policies or guidelines, (iv)&nbsp;changes in legislation or
regulation; and (v)&nbsp;other economic, competitive, governmental, regulatory and technological factors
affecting our operations, pricing, products and services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any or all of our forward-looking statements in this Form 10-KSB and in any other public statements
we make may turn out to be wrong. They can be affected by inaccurate assumptions we might make or
by known or unknown risks and uncertainties. Consequently, no forward-looking statement can be
guaranteed. We do not intend to update any of the forward-looking statements after the date of
this Annual Report or to conform these statements to actual results.
</DIV>

<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART I</B>
</DIV>

<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1 Description of Business</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>General</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Central Federal Corporation (the Company), formerly known as Grand Central Financial Corp., was
organized as a Delaware corporation in September&nbsp;1998 as the holding company for CFBank, a
community-oriented savings institution which was originally organized in 1892, formerly known as
Central Federal Savings and Loan Association of Wellsville and more recently as Central Federal
Bank, in connection with CFBank&#146;s conversion from a mutual to stock form of organization. As used
herein, the terms &#147;we,&#148; &#147;us,&#148; &#147;our&#148; and the &#147;Company&#148; refer to Central Federal Corporation and its
subsidiaries, unless the context indicates to the contrary. As a savings and loan holding company,
we are subject to regulation by the Office of Thrift Supervision (the OTS). In January&nbsp;2006, the
Company successfully completed the offering of 2.3&nbsp;million shares of common stock at a purchase
price of $7.00 per share raising additional capital of approximately $14.5&nbsp;million after offering
expenses and underwriting commissions. The proceeds from this offering provide the Company with a
larger capital base to take advantage of opportunities to execute its growth strategy and will be
used for general corporate purposes. Reserve Mortgage Services, Inc. (Reserve), a wholly owned
subsidiary of CFBank from October&nbsp;2004 until May&nbsp;12, 2005 when it was merged into CFBank, was
acquired in October&nbsp;2004 to expand our mortgage services business. Central Federal Capital Trust I
(the Trust), a wholly owned subsidiary of the Company, was formed in 2003 to raise additional
funding for the Company. Under accounting guidance in Financial Accounting Standards Board (FASB)
Interpretation No.&nbsp;46, as revised in December&nbsp;2003, the Trust is not consolidated with the Company.
Accordingly, the Company does not report the securities issued by the Trust as liabilities, and
instead reports as liabilities the subordinated debentures issued by the Company and held by the
Trust. Currently, we do not transact any material business other than through CFBank and the Trust.
At December&nbsp;31, 2005, assets totaled $173.0&nbsp;million and stockholders&#146; equity totaled $16.1
million.
</DIV>


<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CFBank is a community-oriented financial institution offering a variety of financial services to
meet the needs of the communities we serve. We attract deposits from the general public and uses
such deposits, together with borrowings and other funds, primarily to originate commercial and
commercial real estate loans, single-family and multi-family residential mortgage loans and home
equity lines of credit. We also invest in consumer loans, construction and land loans and
securities. In 2003, we began originating more commercial, commercial real estate and multi-family
mortgage loans than in the past as part of our expansion into business financial services.
Revenues are derived principally from the generation of interest and fees on loans originated and,
to a lesser extent, interest and dividends on securities. Our primary sources of funds are retail
savings deposits and certificates of deposit and, to a lesser extent, brokered certificates of
deposit, principal and interest payments on loans and securities, Federal Home Loan Bank (FHLB)
advances and other borrowings and proceeds from the sale of loans. Our principal market area for
customer loans and deposits includes the following Ohio counties: Summit County through an office
in Fairlawn, Ohio; Franklin County through an office in Columbus, Ohio; and Columbiana County
through offices in Calcutta and Wellsville, Ohio. A residential mortgage origination office is
located in Akron, Ohio. We originate commercial and conventional real estate loans and business
loans throughout Ohio.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market Area and Competition</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our primary market area is a competitive market for financial services and we face competition both
in making loans and in attracting deposits. Direct competition comes from a number of financial
institutions operating in our market area, many with a statewide or regional presence, and in some
cases, a national presence. Many of these financial institutions are significantly larger and have
greater financial resources than us. Competition for loans and deposits comes from savings
institutions, mortgage banking companies, commercial banks, credit unions, brokerage firms and
insurance companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Lending Activities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Loan Portfolio Composition. </I></B>The loan portfolio consists primarily of mortgage loans secured by
single-family and multi-family residences and commercial real estate loans. At December&nbsp;31, 2005,
gross loans receivable totaled $125.7&nbsp;million. Commercial, commercial real estate and multi-family
mortgage loans totaled $72.5&nbsp;million and represented 57.7% of the gross loan portfolio at December
31, 2005 compared to 48.3% at December&nbsp;31, 2004 and 17.8% at December&nbsp;31, 2003. The increase in
the percentage of commercial, commercial real estate and multi-family mortgage loans in the
portfolio was a result of the growth strategy implemented in 2003 to expand into business financial
services. Single-family residential mortgage loans totaled $23.6&nbsp;million and represented 18.8% of
total gross loans at year-end 2005 compared to $41.4&nbsp;million or 37.9% of total gross loan at
year-end 2004. The decline in single-family residential loans was due to a securitization of $18.6
million of these loans in June&nbsp;2005. The remainder of the portfolio consisted of consumer loans,
which totaled $29.5&nbsp;million, or 23.5% of gross loans receivable at year-end 2005 and included $8.8
million in home equity lines of credit which were purchased in 2005. At year-end 2005, 23.3% of
the loan portfolio had fixed rates, compared to 32.8% at year-end 2004 and 55.7% at year-end 2003.
The decline in the percentage of fixed rate loans in the portfolio was a result of growth in
commercial, commercial real estate and multi-family mortgage loans and home equity lines of credit
in 2004 and 2005, which are predominantly adjustable rate loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The types of loans originated are subject to federal and state law and regulations. Interest rates
charged on loans are affected by the demand for such loans, the supply of money available for
lending purposes and the rates offered by competitors. In turn, these factors are affected by,
among other things, economic conditions, fiscal policies of the federal government, monetary
policies of the Federal Reserve Board and legislative tax policies.
</DIV>


<P align="center" style="font-size: 10pt">4
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the composition of the loan portfolio in dollar amounts and as a
percentage of the portfolio at the dates indicated.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real estate mortgage loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Single-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.81</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">41,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">37.94</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">59.58</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,206</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">24.04</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.43</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.14</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">610</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.04</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,937</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">20.64</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.40</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,040</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.63</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total real estate
mortgage loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79,770</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">63.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88,284</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">80.80</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">71.39</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consumer loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Home equity loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.58</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">663</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.61</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.72</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Home equity lines of credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,852</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,928</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.43</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.81</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Automobile</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,237</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,735</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.90</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.57</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">626</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.57</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">663</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.13</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,540</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.56</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,030</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.43</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.05</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total loans receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125,657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net deferred loan fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(136</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(139</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Allowance for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,495</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(978</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(415</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans receivable, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">124,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">108,149</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Loan Maturity. </I></B>The following table shows the remaining contractual maturity of the loan
portfolio at December&nbsp;31, 2005. Demand loans and other loans having no stated schedule of
repayments or no stated maturity are reported as due within one year. The table does not include
potential prepayments or scheduled principal amortization.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>At December 31, 2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Real Estate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total Loans</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Mortgage</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Consumer</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Commercial</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Receivable</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amounts due:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Within one year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,044</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,626</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">After one year:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">More than one year to three years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,944</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">More than three years to five
years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,606</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,248</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">More than five years to 10&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,275</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,010</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">More than 10&nbsp;years to 15&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,567</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">More than 15&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,262</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total due after 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107,031</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total amount due</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">79,770</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,540</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">125,657</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">5
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth at December&nbsp;31, 2005, the dollar amount of total loans receivable
contractually due after December&nbsp;31, 2006, and whether such loans have fixed interest rates or
adjustable interest rates.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Due after December 31, 2006</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fixed</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Adjustable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real estate mortgage loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,030</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">74,406</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,023</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,322</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,719</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,584</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,303</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">82,259</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">107,031</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Origination of Loans. </I></B>Lending activities are conducted through our offices. In 2003, we began
originating commercial, commercial real estate and multi-family mortgage loans to take advantage of
opportunities for expansion into business financial services and growth in the Fairlawn and
Columbus, Ohio markets. These loans are predominantly adjustable rate loans. A majority of our
single-family mortgage loan originations are fixed-rate loans. Current originations of long-term
fixed-rate single-family mortgages are generally sold rather than retained in portfolio. Although
the decision to sell current single-family mortgage originations rather than retain the loans in
portfolio has resulted in declining single-family loan portfolio balances and lower earnings from
that portfolio in the near term, it protects future profitability, and we believe it is not prudent
to retain these long-term, fixed-rate loans and subject our performance to the interest rate risk
and reduced future earnings associated with a rise in interest rates. In a transaction with
Freddie Mac in the second quarter of 2005, we securitized single-family residential mortgage loans
held in our portfolio with an outstanding principal balance of $18.6&nbsp;million, reducing
single-family mortgage loan balances. The securitization increased liquidity as the securities
retained are readily marketable, eliminated credit risk on the loans and reduced CFBank&#146;s
risk-based capital requirement. Although we currently expect that most of the long-term fixed-rate
mortgage loan originations will continue to be sold on a servicing-released basis, a portion of the
loans may be retained for portfolio within our interest rate risk and profitability guidelines. We
also emphasize the origination of home equity lines of credit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Single-Family Mortgage Lending</I></B><B>. </B>A significant lending activity has been the origination of
permanent conventional mortgage loans secured by single-family residences located in our primary
market area. We currently sell substantially all of the fixed-rate single-family mortgage loans
that we originate on a servicing released basis. Prior to 2004, servicing rights were generally
retained on loans sold. Most single-family mortgage loans are underwritten according to Freddie
Mac guidelines. Loan originations are obtained from our loan officers and their contacts with the
local real estate industry, existing or past customers, and members of the local communities. At
December&nbsp;31, 2005, single-family mortgage loans totaled $23.6&nbsp;million, or 18.8% of total loans, of
which $8.7&nbsp;million, or 36.8% were fixed-rate loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our policy is to originate single-family residential mortgage loans in amounts up to 80% of the
appraised value of the property securing the loan and up to 95% of the appraised value if private
mortgage insurance is obtained. Mortgage loans generally include due-on-sale clauses which provide
us with the contractual right to deem the loan immediately due and payable in the event the
borrower transfers ownership of the property without our consent. Due-on-sale clauses are an
important means of adjusting the rates on the
</DIV>


<P align="center" style="font-size: 10pt">6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">fixed-rate mortgage loan portfolio, and we exercise our rights under these clauses. The
single-family mortgage loan originations are generally for terms to maturity of up to 30&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We offer several adjustable-rate mortgage (ARM)&nbsp;loan programs with terms of up to 30&nbsp;years and
interest rates that adjust with a maximum adjustment limitation of 2.0% per year and a 6.0%
lifetime cap. The interest rate adjustments on ARM loans currently offered are indexed to a
variety of established indices and these loans do not provide for initial deep discount interest
rates or for negative amortization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The volume and types of single-family ARM loans originated have been affected by such market
factors as the level of interest rates, consumer preferences, competition and the availability of
funds. In recent years, demand for single-family ARM loans in our primary market area has been
weak due to the low interest rate environment and consumer preference for fixed-rate loans.
Consequently, in recent years our origination of ARM loans on single-family residential properties
has not been significant as compared to our origination of fixed-rate loans. However, as a result
of management&#146;s strategy to sell current long-term fixed-rate loan production, ARM loans represent
a larger percentage of the portfolio. At December&nbsp;31, 2005, $14.9&nbsp;million, or 63.2% of the
single-family mortgage loan portfolio had adjustable rates, compared to 52.8% at December&nbsp;31, 2004
and 43.4% at December&nbsp;31, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Commercial and Multi-Family Real Estate Lending. </I></B>Beginning in 2003, we expanded into business
financial services and positioned ourselves for growth in the Fairlawn and Columbus, Ohio markets
and, as a result, originations of commercial real estate and multi-family residential mortgage
loans increased significantly. Commercial real estate and multi-family residential mortgage loans
totaled $56.1&nbsp;million at December&nbsp;31, 2005 or 44.7% of gross loans, an increase of $10.4&nbsp;million or
22.8% from $45.7&nbsp;million or 41.8% of gross loans at December&nbsp;31, 2004 and an increase of $49.8
million compared to $6.3&nbsp;million or 10.8% of gross loans receivable at December&nbsp;31, 2003. We
anticipate that commercial real estate and multi-family residential mortgage lending activities
will continue to grow in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We originate commercial real estate loans that are secured by properties used for business
purposes, such as manufacturing facilities, office buildings or retail facilities. Commercial real
estate and multi-family residential mortgage loans are secured by properties generally located in
our primary market area. Underwriting policies provide that commercial real estate and
multi-family residential mortgage loans may be made in amounts up to 85% of the appraised value of
the property. In underwriting commercial real estate and multi-family residential mortgage loans,
we consider the appraisal value and net operating income of the property, the debt service ratio
and the property owner&#146;s financial strength, expertise and credit history.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commercial real estate and multi-family residential mortgage loans are generally considered to
involve a greater degree of risk than single-family residential mortgage loans. Because payments
on loans secured by commercial real estate and multi-family properties are dependent on successful
operation or management of the properties, repayment of such loans may be subject to a greater
extent to adverse conditions in the real estate market or the economy. We seek to minimize these
risks through underwriting policies which require such loans to be qualified at origination on the
basis of the property&#146;s income and debt coverage ratio and the financial strength of the owners.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Commercial Lending. </I></B>Expansion into business financial services in 2003 also resulted in increased
originations of commercial loans. Commercial loans totaled $16.3&nbsp;million, or 13.0% of gross loans
at December&nbsp;31, 2005, an increase of $9.3&nbsp;million or 132.5% from $7.0&nbsp;million or 6.4% of gross
loans at December&nbsp;31, 2004, and an increase of $12.2&nbsp;million compared to $4.1&nbsp;million, or 7.1% of
gross loans at December&nbsp;31, 2003. We anticipate that commercial lending activities will continue
to grow in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We make commercial business loans primarily to small businesses that are generally secured by
business equipment, inventory, accounts receivable and other business assets. In underwriting
commercial loans,
</DIV>


<P align="center" style="font-size: 10pt">7
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">we consider the net operating income of the company, the debt service ratio and the financial
strength, expertise and credit history of the owners.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commercial loans are generally considered to involve a greater degree of risk than loans secured by
real estate. Because payments on commercial loans are dependent on successful operation of the
business enterprise, repayment of such loans may be subject to a greater extent to adverse
conditions in the economy. We seek to minimize these risks through underwriting policies which
require such loans to be qualified at origination on the basis of the enterprise&#146;s income and debt
coverage ratio and the financial strength of the owners.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Construction and Land Lending</I></B><B>. </B>To a lesser extent, we originate construction and land development
loans to contractors and individuals in our primary market areas. Construction loans are made to
finance the construction of owner-occupied single-family residential properties and individual
properties built by developers for future sale. Construction loans to individuals are fixed or
adjustable-rate loans which may convert to permanent loans with maturities of up to 30&nbsp;years.
Policies provide that construction loans may be made in amounts up to 80% of the appraised value of
the property for construction of single-family residences, and an independent appraisal of the
property is required. Loan proceeds are disbursed in increments as construction progresses and as
inspections warrant and regular inspections are required to monitor the progress of construction.
Land loans are determined on an individual basis, but generally they do not exceed 75% of the
actual cost or current appraised value of the property, whichever is less.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Construction and land financing is considered to involve a higher degree of credit risk than
long-term financing on improved, owner-occupied real estate. Risk of loss on a construction loan
is dependent largely upon the accuracy of the initial estimate of the property&#146;s value at
completion of construction or development compared to the estimated cost (including interest) of
construction. If the estimate of value proves to be inaccurate, we may be confronted with a
project, when completed, having a value which is insufficient to assure full repayment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Consumer and Other Lending</I></B><B>. </B>The consumer loan portfolio generally consists of home equity lines of
credit, automobile loans, home equity and home improvement loans and loans secured by deposits. At
December&nbsp;31, 2005, the consumer loan portfolio totaled $29.5&nbsp;million, or 23.5% of gross loans
receivable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Home equity lines of credit comprise the majority of consumer loan balances and totaled $23.9
million at December&nbsp;31, 2005. We offer a variable rate home equity line of credit with rates
adjusting monthly at up to 2% above the prime rate of interest as disclosed in <I>The Wall Street
Journal. </I>The amount of the line is based on the borrower&#146;s income and equity in the home. When
combined with the balance of the prior mortgage liens, these lines may not exceed 100% of the
appraised value of the property at the time of the loan commitment. These loans are secured by a
subordinate lien on the underlying real estate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Prior to 2003, we were in the business of making indirect automobile loans and loans secured by
automobiles totaled $9.3&nbsp;million or 15.9% of total loans at year-end 2003. We no longer originate
indirect automobile loans and make few direct automobile loans. As a result, automobile loans
totaled $4.2&nbsp;million or 3.4% of total loans at December&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Delinquencies and Classified Assets. </I></B>The Board of Directors monitors the status of all delinquent
loans thirty days or more past due, past due statistics and trends for all loans monthly.
Procedures with respect to resolving delinquencies vary depending on the nature and type of the
loan and period of delinquency. In general, we make every effort, consistent with safety and
soundness principles, to work with the borrower to have the loan brought current. If the loan is
not brought current, it then becomes necessary to repossess collateral and/or take legal action.
</DIV>


<P align="center" style="font-size: 10pt">8
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Federal regulations and CFBank&#146;s asset classification policy require use of an internal asset
classification system as a means of reporting and monitoring assets. We have incorporated the OTS
internal asset classifications as a part of our credit monitoring system. In accordance with
regulations, problem assets are classified as &#147;substandard,&#148; &#147;doubtful&#148; or &#147;loss&#148; and the
classifications are subject to review by the OTS. An asset is considered &#147;substandard&#148; under the
regulations if it is inadequately protected by the current net worth and paying capacity of the
obligor or of the collateral pledged, if any. An asset considered &#147;doubtful&#148; under the regulations
has all of the weaknesses inherent in those classified &#147;substandard&#148; with the added characteristic
that the weaknesses make &#147;collection or liquidation in full,&#148; on the basis of currently existing
facts, conditions and values, &#147;highly questionable and improbable.&#148; Assets considered &#147;loss&#148; under
the regulations are those considered &#147;uncollectible&#148; and having so little value that their
continuance as assets without the establishment of a specific loss allowance is not warranted.
Assets are required to be designated &#147;special mention&#148; when they posses weaknesses but do not
currently expose the insured institution to sufficient risk to warrant classification in one of
these categories. In order to more closely monitor credit risk as we employ our growth strategy in
business financial services, we have developed internal loan review procedures and a credit grading
system for commercial, commercial real estate and multi-family mortgage loans, and also utilize an
independent, external firm for loan review annually.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At December&nbsp;31, 2005, no assets were designated as special mention; $816,000 in assets were
classified as substandard, 98% of which were single-family mortgage loans; and no assets were
classified as doubtful or loss.
</DIV>



<P align="center" style="font-size: 10pt">9
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- LANDSCAPE -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth information concerning delinquent loans in dollar amounts and as a
percentage of the total loan portfolio. The amounts presented represent the total remaining
principal balances of the loans rather than the actual payment amounts which are overdue.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>December 31, 2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>December 31, 2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>December 31, 2003</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>60-89 Days</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>90 Days or More</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>60-89 Days</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>90 Days or More</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>60-89 Days</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>90 Days or More</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Balance of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Balance of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Balance of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Balance of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Loans</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="46"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real estate loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Single-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">149</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">714</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Multi-family</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Construction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Commercial</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consumer loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Home equity loans and
lines
of credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Automobile</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unsecured lines of credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total delinquent loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">286</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">741</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Delinquent loans as a
percent of total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.64</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.18</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.26</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.28</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">

    <TD colspan="3">The table does not include delinquent loans less than 60&nbsp;days past due. At December&nbsp;31, 2005, 2004 and 2003,
total loans past due 30 to 59&nbsp;days totaled $479,000, $549,000 and $481,000, respectively.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt">10
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Nonperforming Assets. </I></B>The following table contains information regarding nonperforming loans,
real estate owned (REO)&nbsp;and other repossessed assets. At December&nbsp;31, 2005, nonperforming loans
totaled $800,000. CFBank&#146;s policy is to stop accruing interest on loans 90&nbsp;days or more past due
and set up reserves for all previously accrued interest. At December&nbsp;31, 2005, the amount of
additional interest income that would have been recognized on nonaccrual loans if such loans had
continued to perform in accordance with their contractual terms was approximately $45,000. At
December&nbsp;31, 2005, 2004 and 2003, there were no impaired loans or troubled debt restructurings.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonaccrual loans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Single-family real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">714</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Consumer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">286</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">741</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real estate owned (REO)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">184</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other repossessed assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total nonperforming assets<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">934</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonperforming loans to total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.64</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.26</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.28</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nonperforming assets to total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.46</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.24</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.87</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Total nonaccrual loans equal total nonperforming loans.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Nonperforming assets consist of nonperforming loans (and impaired loans),
other repossessed assets and REO.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Allowance for Loan Losses. </I></B>Management analyzes the adequacy of the allowance for loan losses
regularly through reviews of the performance of the loan portfolio considering economic conditions,
changes in interest rates and the effect of such changes on real estate values and changes in the
composition of the loan portfolio. Such evaluation, which includes a review of all loans for which
full collectibility may not be reasonably assured, considers, among other matters, the estimated
fair value of the underlying collateral, economic conditions, historical loan loss experience,
changes in the size and growth of the loan portfolio and other factors that warrant recognition in
providing for an adequate loan loss allowance. The allowance for loan losses is established
through a provision for loan losses based on management&#146;s evaluation of the risk in its loan
portfolio. Various regulatory agencies, as an integral part of the examination process,
periodically review the allowance for loan losses. Such agencies may require additional provisions
for loan losses based upon information available at the time of the review. At December&nbsp;31, 2005,
the allowance for loan losses totaled 1.19% of total loans as compared to 0.90% at December&nbsp;31,
2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The OTS, in conjunction with the other federal banking agencies, has adopted an interagency policy
statement on the allowance for loan and lease losses. The policy statement provides guidance for
financial institutions on both the responsibilities of management for the assessment and
establishment of adequate allowances in accordance with generally accepted accounting principles
and guidance for banking agency examiners to use in evaluating the allowances. The policy
statement requires that institutions have effective systems and controls to identify, monitor and
address asset quality problems; that management analyze all significant factors that affect the
collectibility of the portfolio in a reasonable manner; and that management establish acceptable
allowance evaluation processes that meet the objectives set forth in the policy statement. CFBank
adopted an Allowance for Loan Losses Policy
</DIV>



<P align="center" style="font-size: 10pt">11
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">designed to provide a thorough, disciplined and consistently applied process that incorporates
management&#146;s current judgments about the credit quality of the loan portfolio into determination of
the allowance for loan losses in accordance with generally accepted accounting principles and
supervisory guidance. Management believes that an adequate allowance for loan losses has been
established. However, actual losses are dependent upon future events and, as such, further
additions to the level of allowances for estimated loan losses may become necessary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth activity in the allowance for loan losses for the periods indicated.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At or for the Year ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses, beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">361</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Charge-offs:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Single-family real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Consumer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total charge-offs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Recoveries on loans previously charged off:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Single-family real estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Consumer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total recoveries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net charge-offs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Provision for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">674</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses, end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">415</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses to total loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">.90</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">.71</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for loan losses to nonperforming loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">186.88</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">341.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">56.01</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net charge-offs to the allowance for losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.49</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.57</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net charge-offs to average loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">.08</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Expansion into business financial services and the significant growth in commercial,
commercial real estate and multi-family mortgage loans in 2004 and 2005 required an increase in the
provision and allowance for loan losses related to these loan types. The provision for loan losses
totaled $674,000 in 2005 and $646,000 in 2004, compared to $102,000 in 2003. At December&nbsp;31, 2005,
the allowance for commercial, commercial real estate and multi-family mortgage loans totaled $1.3
million, an increase of $456,000 from $862,000 at December&nbsp;31, 2004 and an increase of $1.2&nbsp;million
from $100,000 at December&nbsp;31, 2003 as these loan types grew from 17.8% of the total loan portfolio
at year-end 2003 to 48.3% at year-end 2004 and to 57.7% at year-end 2005. These loans tend to be
larger balance, higher risk loans and, as a result, 88.2% of the allowance was allocated to these
loan types at December&nbsp;31, 2005.
</DIV>


<P align="center" style="font-size: 10pt">12
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the allowance for loan losses in each of the categories listed at
the dates indicated and the percentage of such amounts to the total allowance and loans in each
category as a percent of total loans. Although the allowance may be allocated to specific loans or
loan types, the entire allowance is available for any loan that, in management&#146;s judgment, should
be charged-off.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="34" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>% of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>% of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>% of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Loans</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in each</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Each</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in each</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Each</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in each</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>in Each</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Category</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>to Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>to Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>to Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>to Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>to Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>to Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Allowance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Loans</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="center" colspan="35"><B>(Dollars in thousands)</B></TD>

</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Single-family mortgage and
construction loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.81</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.81</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">.41</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">38.97</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">51.33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">60.62</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consumer loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.03</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.45</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">24.58</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.56</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commercial, commercial real
estate and multi-family mortgage
loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">88.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">57.69</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">862</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">88.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">48.26</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">24.09</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.82</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total allowance for loan losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">13
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Real Estate Owned</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At December&nbsp;31, 2005, there was no real estate owned. Assets acquired through or instead of loan
foreclosure are initially recorded at fair value when acquired, establishing a new cost basis. If
fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense.
Costs after acquisition are expensed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Activities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Federally chartered savings institutions have the authority to invest in various types of liquid
assets, including United States Treasury obligations, securities of various federal agencies,
certificates of deposit of insured banks and savings institutions, bankers&#146; acceptances and federal
funds. Subject to various restrictions, federally chartered savings institutions may also invest
their assets in commercial paper, municipal bonds, investment-grade corporate debt securities and
mutual funds whose assets conform to the investments that a federally chartered savings institution
is otherwise authorized to make directly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The investment policy established by the Board of Directors is designed to provide and maintain
liquidity, generate a favorable return on investments without incurring undue interest rate and
credit risk, and complement lending activities. The policy provides authority to invest in United
States Treasury and federal agency securities meeting the policy&#146;s guidelines, mortgage-backed
securities guaranteed by the U.S. government and agencies thereof, and municipal bonds. To improve
liquidity and eliminate the credit risk associated with mortgages held in our portfolio, we
securitized single-family residential mortgage loans with an outstanding principal balance of $18.6
million in a transaction with Freddie Mac in 2005. The securitization (i)&nbsp;increased liquidity as
the securities retained are readily marketable, (ii)&nbsp;eliminated credit risk on the loans and (iii)
reduced CFBank&#146;s risk-based capital requirement. In 2003, also to increase liquidity, all
securities previously classified as &#147;held to maturity&#148; were transferred to &#147;available for sale&#148;.
At December&nbsp;31, 2005, the securities portfolio totaled $30.9&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At December&nbsp;31, 2005, all mortgage-backed securities in the securities portfolio were insured or
guaranteed by Freddie Mac or Fannie Mae. There were no collateralized mortgage obligations that
failed stress testing at December&nbsp;31, 2005. Management reports high risk mortgage derivatives
testing results to the Board of Directors quarterly, at which time the Board may direct management
to divest any such securities failing any portion of the testing, in accordance with regulations.<BR>
</DIV>


<P align="center" style="font-size: 10pt">14
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth certain information regarding the amortized cost and fair value of
securities at the dates indicated.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amortized</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities available for sale:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Federal agency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,983</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,755</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,759</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">State and municipal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,375</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mortgage-backed</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,047</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,398</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,697</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,992</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total securities available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,830</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,508</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,126</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net unrealized gains on securities
available for sale</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">304</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,508</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,508</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,126</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">15
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below sets forth certain information regarding the carrying value, weighted average
yields and contractual maturities of securities available for sale as of December&nbsp;31, 2005. Yields
are stated on a fully taxable equivalent basis.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="38" style="border-bottom: 1px solid #000000"><B>At December 31, 2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>More than One Year to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>More than Five Years to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>One Year or Less</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Ten Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>More than Ten Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Carrying</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Yield</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal agency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,838</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.52</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">State and municipal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">995</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.12</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">992</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.34</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.23</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage-backed</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">304</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,263</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.58</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,047</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.48</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap colspan="2" align="right" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total securities
at fair value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,137</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.78</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.58</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.01</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">16
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Sources of Funds</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>General</I></B><B>. </B>Deposits, loan repayments and prepayments, securities maturities and prepayments,
borrowings, proceeds from loan sales and cash flows generated from operations are the primary
sources of funds for use in lending, investing and for other general purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Deposits</I></B><B>. </B>CFBank offer a variety of deposit accounts with a range of interest rates and terms
including passbook accounts, savings and club accounts, interest-bearing checking accounts, money
market accounts and certificates of deposit. For the year ended December&nbsp;31, 2005, certificates of
deposit constituted 50.8% of total average deposits. The term of the certificates of deposit
offered vary from seven days to five years at rates established by management. Specific terms of
an individual account vary according to the type of account, the minimum balance required, the time
period funds must remain on deposit and the interest rate, among other factors. The flow of
deposits is influenced significantly by general economic conditions, changes in money market rates,
prevailing interest rates and competition. At December&nbsp;31, 2005, certificate accounts maturing in
less than one year totaled $48.1&nbsp;million. Most of these accounts are expected to be reinvested and
we do not believe that there are any material risks associated with the respective maturities of
these certificates. Deposits are obtained predominantly from the areas in which CFBank offices are
located, and brokered deposits are accepted. At December&nbsp;31, 2005, brokered deposits totaled $13.0
million. We rely primarily on a willingness to pay market-competitive interest rates to attract
and retain these deposits. Accordingly, rates offered by competing financial institutions affect
our ability to attract and retain deposits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certificate accounts in amounts of $100,000 or more totaled $25.8&nbsp;million at December&nbsp;31, 2005,
maturing as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Maturity Period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Average Rate</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Three months or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.61</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over 3 through 6&nbsp;months</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.16</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over 6 through 12&nbsp;months</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.12</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Over 12&nbsp;months</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.93</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">17
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the distribution of average deposit account balances for the periods
indicated and the weighted average interest rates on each category of deposits presented. Averages
for the periods presented are based on month-end balances.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="34" style="border-bottom: 1px solid #000000"><B>For the Year ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Rate</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Deposits</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Paid</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Deposits</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Paid</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Deposits</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Paid</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="34"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest-bearing checking accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.26</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.82</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">.58</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">.86</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Money market accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">19.65</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.01</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.34</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,843</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.43</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.40</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,121</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.65</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">.61</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">22.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">.57</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,373</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">24.43</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">.82</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certificates of deposit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,957</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.78</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">46.78</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.57</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">51.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.24</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Noninterest-bearing deposits:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Demand deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,471</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.33</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,674</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,781</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total average deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">118,072</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.55</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">83,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.79</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">75,221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.14</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents by various rate categories, the amount of certificate accounts
outstanding at the dates indicated and the periods to maturity of the certificate accounts
outstanding at December&nbsp;31, 2005.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Period to Maturity from December 31, 2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>One to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Two to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Over</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Less than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Two</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Three</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Three</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>One Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="26"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certificate accounts:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">0 to 1.99%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,270</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,847</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,148</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.00 to 2.99%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,555</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,123</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.00 to 3.99%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,744</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,035</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,984</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,221</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4.00 to 4.99%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,906</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">405</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,152</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.00 to 5.99%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">655</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">977</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6.00% and above</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap colspan="2" align="right" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total certificate
accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">47,977</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,592</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,595</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">68,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">36,693</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">18
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Borrowings. </I></B>FHLB advances are used as an alternative to retail deposits to fund operations as
part of our operating strategy. The advances are collateralized primarily by certain mortgage
loans, home equity lines of credit, commercial real estate loans and mortgage-backed securities and
secondarily by investment in capital stock of the FHLB. FHLB advances are made pursuant to several
credit programs, each of which has its own interest rate and range of maturities. The maximum
amount that the FHLB will advance to member institutions fluctuates from time to time in accordance
with the policies of the FHLB.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A revolving line of credit with an unaffiliated bank acquired in the Reserve acquisition in 2004
provided financing primarily for single-family mortgage loan originations and was collateralized by
loan sales proceeds receivable. This line of credit was repaid and closed in 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2003, we formed the Trust, which issued $5.0&nbsp;million of 3&nbsp;month LIBOR plus 2.85% floating rate
trust preferred securities as part of a pooled offering of such securities. We issued $5,155 of
subordinated debentures to the Trust in exchange for ownership of all of the common stock of the
Trust and the proceeds of the preferred securities sold by the Trust. The subordinated debentures
mature on December&nbsp;30, 2033 and we may redeem the subordinated debentures, in whole or in part, at
par, any time after December&nbsp;30, 2008. We have the option to defer interest payments on the
subordinated debentures from time to time for a period not to exceed five consecutive years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under FASB Interpretation No.&nbsp;46, as revised in December&nbsp;2003, the Trust is not consolidated with
the Company. Accordingly, we do not report the securities issued by the Trust as liabilities, and
instead report the subordinated debentures issued by the Company and held by the Trust as
liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth certain information regarding borrowed funds at or for the periods
ended on the dates indicated:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>At or for the Year ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2003</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10"><B>(Dollars in thousands)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FHLB advances and other borrowings:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Average balance outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,192</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Maximum amount outstanding at any month-end
during the period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,062</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,542</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Balance outstanding at end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,655</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Weighted average interest rate during the period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">3.62</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.28</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.59</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Weighted average interest rate at end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.25</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.76</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.28</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Subsidiary Activities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of December&nbsp;31, 2005, we maintained CFBank and the Trust as wholly owned subsidiaries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Personnel</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of December&nbsp;31, 2005, we had 52 full-time and two part-time employees.
</DIV>


<P align="center" style="font-size: 10pt">19
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Regulation and Supervision</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>General. </I></B>CFBank is a federally-chartered savings association. It is subject to regulation,
examination and supervision by the OTS and the Federal Deposit Insurance Corporation (FDIC)&nbsp;as its
deposit insurer. CFBank is a member of the Savings Association Insurance Fund (SAIF), and its
deposit accounts are insured up to applicable limits by the FDIC. All the deposit premiums paid by
CFBank to the FDIC for deposit insurance are currently paid to the SAIF. CFBank also is a member
of the FHLB of Cincinnati, which is one of the 12 regional FHLBs. CFBank must file reports with the
OTS concerning its activities and financial condition, and must obtain regulatory approvals prior
to entering into certain transactions, such as mergers with, or acquisitions of, other depository
institutions. The OTS conducts periodic examinations to assess CFBank&#146;s compliance with various
regulatory requirements. This regulation and supervision establishes a comprehensive framework of
activities in which a savings association can engage and is intended primarily for the protection
of the insurance fund and depositors. As a savings and loan holding company, we must file certain
reports with, and otherwise comply with, the rules and regulations of the OTS and, with respect to
federal securities laws, of the Securities and Exchange Commission (the Commission).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The OTS and the FDIC have significant discretion in connection with their supervisory and
enforcement activities and examination policies, including policies with respect to the
classification of assets and the establishment of adequate loan loss reserves for regulatory
purposes. Any change in such policies, whether by the OTS, the FDIC, the Commission or the United
States Congress, could have a material adverse impact on the Company, CFBank and our operations and
shareholders. The following discussion is intended to be a summary of the material statutes and
regulations applicable to savings associations and their holding companies, but it does not purport
to be a comprehensive description of all such statutes and regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Regulation of Federal Savings Associations</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Business Activities. </I></B>CFBank derives its lending and investment powers from the Home Owners&#146; Loan
Act, as amended (HOLA), and OTS regulations. Under these laws and regulations, CFBank may invest
in mortgage loans secured by residential and commercial real estate, commercial and consumer loans,
certain types of debt securities and certain other assets. CFBank may also establish service
corporations that may engage in activities not otherwise permissible for CFBank, including certain
real estate equity investments and securities and insurance brokerage activities. CFBank&#146;s
authority to invest in certain types of loans or other investments is limited by federal law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Loans to One Borrower. </I></B>CFBank is generally subject to the same limits on loans to one borrower as
is a national bank. With specified exceptions, CFBank&#146;s total loans or extensions of credit to a
single borrower cannot exceed 15% of CFBank&#146;s unimpaired capital and surplus, which does not
include accumulated other comprehensive income. CFBank may lend additional amounts up to 10% of
its unimpaired capital and surplus which does not include accumulated other comprehensive income,
if the loans or extensions of credit are fully-secured by readily marketable collateral. CFBank
currently complies with applicable loans-to-one-borrower limitations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>QTL Test. </I></B>The HOLA requires that CFBank, as a savings association, comply with the qualified
thrift lender (QTL)&nbsp;test. Under the QTL test, CFBank is required to maintain at least 65% of its
portfolio assets in certain &#147;qualified thrift investments&#148; for at least nine months of the most
recent twelve-month period. &#147;Portfolio assets&#148; means, in general, CFBank&#146;s total assets less the
sum of (i)&nbsp;specified liquid assets up to 20% of total assets, (ii)&nbsp;goodwill and other intangible
assets and (iii)&nbsp;the value of property used to conduct CFBank&#146;s business. CFBank may also satisfy
the QTL test by qualifying as a domestic building and loan
</DIV>



<P align="center" style="font-size: 10pt">20
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">association as defined in the Internal Revenue Code of 1986, as amended (the Code). CFBank
met the QTL test at December&nbsp;31, 2005 and in each of the prior 12&nbsp;months, and, therefore, qualified
as a thrift lender. If CFBank fails the QTL test, it must either operate under certain
restrictions on its activities or convert to a national bank charter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Capital Requirements. </I></B>The OTS regulations require savings associations to meet three minimum
capital standards: (i)&nbsp;a tangible capital ratio requirement of 1.5% of total assets as adjusted
under the OTS regulations; (ii)&nbsp;a leverage ratio requirement of 3.0% of core capital to such
adjusted total assets, if a savings association has been assigned the highest composite rating of 1
under the Uniform Financial Institutions Rating System; and (iii)&nbsp;a risk-based capital ratio
requirement of 8.0% of core and supplementary capital to total risk-based assets. The minimum
leverage capital ratio for any other depository institution that does not have a composite rating
of 1 will be 4%, unless a higher leverage capital ratio is warranted by the particular
circumstances or risk profile of the depository institution. In determining the amount of
risk-weighted assets for purposes of the risk-based capital requirement, a savings association must
compute its risk-based assets by multiplying its assets and certain off-balance sheet items by risk
weights, which range from 0% for cash and obligations issued by the United States Government or its
agencies to 100% for consumer and commercial loans, as assigned by the OTS capital regulation based
on the risks found by the OTS to be inherent in the type of asset.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Tangible capital is defined, generally, as common shareholders&#146; equity (including retained
earnings), certain non-cumulative perpetual preferred stock and related earnings, minority
interests in equity accounts of fully consolidated subsidiaries, less intangibles (other than
certain mortgage servicing rights), and investments in and loans to subsidiaries engaged in
activities not permissible for a national bank. Core capital is defined similarly to tangible
capital, but core capital also includes certain qualifying supervisory goodwill and certain
purchased credit card relationships. Supplementary capital currently includes cumulative and other
preferred stock, mandatory convertible debt securities, subordinated debt and intermediate
preferred stock and the allowance for loan and lease losses. In addition, up to 45% of unrealized
gains on available-for-sale equity securities with a readily determinable fair value may be
included in tier 2 capital. The allowance for loan and lease losses includable in supplementary
capital is limited to a maximum of 1.25% of risk-weighted assets, and the amount of supplementary
capital that may be included as total capital cannot exceed the amount of core capital. At
December&nbsp;31, 2005, CFBank met each of its capital requirements, in each case on a fully phased-in
basis.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Excess</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Capital</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Actual</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Required</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(Deficiency)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Actual</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Required</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Capital</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Capital</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>(Dollars in thousands)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tangible</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Core (Leverage)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,906</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Risk-based</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,454</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,758</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8.0</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Capital Distributions. </I></B>The OTS imposes various restrictions or requirements on the ability of
CFBank to make capital distributions, including cash dividends. A savings institution that is the
subsidiary of a savings and loan holding company must file a notice with the OTS at least 30&nbsp;days
before making a capital distribution. CFBank must file an application for prior approval if the
total amount of its capital distributions, including the proposed distribution, for the applicable
calendar year would exceed an
</DIV>

<P align="center" style="font-size: 10pt">21
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">amount equal to CFBank&#146;s net income for that year plus CFBank&#146;s
retained net income for the previous
two years. The OTS may disapprove of a notice of application if (i)&nbsp;CFBank would be
undercapitalized following the distribution, (ii)&nbsp;the proposed capital distribution would raise
safety and soundness concerns or (iii)&nbsp;the capital distribution would violate a prohibition
contained in any statute, regulation, or agreement. The Company&#146;s ability to pay dividends,
service debt obligations and repurchase common stock is dependent upon receipt of dividend payments
from CFBank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Branching. </I></B>Subject to certain limitations, HOLA and OTS regulations permit federally chartered
savings associations to establish branches in any State of the United States. The authority to
establish such a branch is available (i)&nbsp;in States that expressly authorize branches of savings
associations located in another State and (ii)&nbsp;to an association that qualifies as a &#147;domestic
building and loan association&#148; under the Code, which imposes qualification requirements similar to
those for a qualified thrift lender under HOLA. <I>See </I>"&#151; QTL Test.&#148; The authority for a federal
savings association to establish an interstate branch network would facilitate a geographic
diversification of the association&#146;s activities. This authority under HOLA and OTS regulations
preempts any State law purporting to regulate branching by federal savings associations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Community Reinvestment. </I></B>Under the Community Reinvestment Act (the CRA), as implemented by OTS
regulations, a savings association has a continuing and affirmative obligation consistent with its
safe and sound operation to help meet the credit needs of its entire community, including low- and
moderate-income neighborhoods. The CRA does not establish specific lending requirements or
programs for financial institutions nor does it limit an institution&#146;s discretion to develop the
types of products and services that it believes are best suited to its particular community,
consistent with the CRA. The CRA requires the OTS, in connection with its examination of a savings
association, to assess the association&#146;s record of meeting the credit needs of its community and to
take such record into account in its evaluation of certain applications by the association. The
CRA also requires each institution to publicly disclose its CRA rating.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The CRA regulations establish an assessment system that bases an association&#146;s rating on its actual
performance in meeting community needs. In particular, the assessment system focuses on three
tests: (i)&nbsp;a lending test, to evaluate the institution&#146;s record of making loans in its assessment
areas; (ii)&nbsp;an investment test, to evaluate the institution&#146;s record of investing in community
development projects, affordable housing and programs benefiting low- or moderate-income
individuals and businesses; and (iii)&nbsp;a service test, to evaluate the institution&#146;s delivery of
services through its branches, ATMs and other offices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Transactions with Related Parties. </I></B>CFBank&#146;s authority to engage in transactions with its
&#147;affiliates&#148; is limited by the OTS regulations and by Sections&nbsp;23A and 23B of the Federal Reserve
Act (the FRA). In general, these transactions must be on terms which are as favorable to CFBank as
comparable transactions with non-affiliates. In addition, certain types of these transactions are
restricted to an aggregate percentage of CFBank&#146;s capital. Collateral in specified amounts must
usually be provided by affiliates in order to receive loans from CFBank. In addition, the OTS
regulations prohibit a savings association from lending to any affiliates that engages in
activities not permissible for bank holding companies and from purchasing the securities of any
affiliate, other than a subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective April&nbsp;1, 2003, the Federal Reserve Board (the FRB) rescinded its interpretations of
Sections&nbsp;23A and 23B of the FRA and replaced these interpretations with Regulation&nbsp;W. In addition,
Regulation&nbsp;W makes various changes to existing law regarding Sections&nbsp;23A and 23B, including
expanding the definition of what constitutes an affiliate subject to Sections&nbsp;23A and 23B and
exempting certain subsidiaries of state-chartered banks from the restrictions of Sections&nbsp;23A and
23B. Under Regulation&nbsp;W, all transactions entered into on or before December&nbsp;12, 2002, which
either became subject to Sections
</DIV>

<P align="center" style="font-size: 10pt">22
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">23A and 23B solely because of Regulation&nbsp;W, and all transactions
covered by Sections&nbsp;23A and 23B, the
treatment of which will change solely because of Regulation&nbsp;W, became subject to Regulation&nbsp;W on
July&nbsp;1, 2003. All other covered affiliate transactions became subject to Regulation&nbsp;W on April&nbsp;1,
2003. The Federal Reserve Board expects each depository institution that is subject to Sections
23A and 23B to implement policies and procedures to ensure compliance with Regulation&nbsp;W.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CFBank&#146;s authority to extend credit to its directors, executive officers and 10% shareholders, as
well as to entities controlled by such persons, is currently governed by the requirements of
Sections 22(g) and 22(h) of the FRA and Regulation&nbsp;O of the Federal Reserve Board. Among other
things, these provisions require that extensions of credit to insiders: (i)&nbsp;be made on terms that
are substantially the same as, and follow credit underwriting procedures that are not less
stringent than, those prevailing for comparable transactions with unaffiliated persons and that do
not involve more than the normal risk of repayment or present other unfavorable features; and (ii)
not exceed certain limitations on the amount of credit extended to such persons, individually and
in the aggregate, which limits are based, in part, on the amount of CFBank&#146;s capital. The
regulations allow small discounts on fees on residential mortgages for directors, officers and
employees. In addition, extensions for credit in excess of certain limits must be approved by
CFBank&#146;s Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Section&nbsp;402 of the Sarbanes-Oxley Act prohibits the extension of personal loans to directors and
executive officers of issuers. The prohibition, however, does not apply to mortgages advanced by
an insured depository institution, such as CFBank, which are subject to the insider lending
restrictions of Section 22(h) of the FRA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Enforcement. </I></B>The OTS has primary enforcement responsibility over savings associations, including
CFBank. This enforcement authority includes, among other things, the ability to assess civil money
penalties, to issue cease and desist orders and to remove directors and officers. In general,
these enforcement actions may be initiated in response to violations of laws and regulations and to
unsafe or unsound practices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Standards for Safety and Soundness. </I></B>Under federal law, the OTS has adopted a set of guidelines
prescribing safety and soundness standards. These guidelines establish general standards relating
to internal controls and information systems, internal audit systems, loan documentation, credit
underwriting, interest rate exposure, asset growth, asset quality, earnings standards,
compensation, fees and benefits. In general, the guidelines require appropriate systems and
practices to identify and manage the risks and exposures specified in the guidelines. In addition,
the OTS adopted regulations that authorize, but do not require, the OTS to order an institution
that has been given notice that it is not satisfying these safety and soundness standards to submit
a compliance plan. If, after being notified, an institution fails to submit an acceptable plan of
compliance or fails in any material respect to implement an accepted plan, the OTS must issue an
order directing action to correct the deficiency and may issue an order directing other actions of
the types to which an undercapitalized association is subject under the &#147;prompt corrective action&#148;
provisions of federal law. If an institution fails to comply with such an order, the OTS may seek
to enforce such order in judicial proceedings and to impose civil money penalties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Real Estate Lending Standards. </I></B>The OTS and the other federal banking agencies adopted regulations
to prescribe standards for extensions of credit that (i)&nbsp;are secured by real estate or (ii)&nbsp;are
made for the purpose of financing the construction of improvements on real estate. The OTS
regulations require each savings association to establish and maintain written internal real estate
lending standards that are consistent with safe and sound banking practices and appropriate to the
size of the association and the nature and scope of its real estate lending activities. The
standards also must be consistent with accompanying OTS guidelines, which include loan-to-value
ratios for the different types of real estate loans. Associations are also permitted to make a
limited amount of loans that do not conform to the
</DIV>

<P align="center" style="font-size: 10pt">23
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">proposed loan-to-value limitations so long as
such exceptions are reviewed and justified appropriately.
The guidelines also list a number of lending situations in which exceptions to the loan-to-value
standards are justified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Prompt Corrective Regulatory Action. </I></B>Under the OTS prompt corrective action regulations, the OTS is
required to take certain, and is authorized to take other, supervisory actions against
undercapitalized savings associations. For this purpose, a savings association would be placed in
one of the following four categories based on the association&#146;s capital: (i)&nbsp;well-capitalized; (ii)
adequately capitalized; (iii)&nbsp;undercapitalized; or (iv)&nbsp;critically undercapitalized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At December&nbsp;31, 2005, CFBank met the criteria for being considered &#147;well-capitalized.&#148; When
appropriate, the OTS can require corrective action by a savings association holding company under
the &#147;prompt corrective action&#148; provision of federal law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Insurance of Deposit Accounts. </I></B>CFBank is a member of the SAIF. Under federal law, the FDIC
established a risk based assessment system for determining the deposit insurance assessments to be
paid by insured depository institutions. Under the assessment system, the FDIC assigns an
institution to one of three capital categories based on the institution&#146;s financial information as
of the quarter ending three months before the beginning of the assessment period. An institution&#146;s
assessment rate depends on the capital category and supervisory category to which it is assigned.
Under the regulation, there are nine risk assessment classifications (<I>i.e.</I>, combinations of capital
groups and supervisory subgroups) to which different assessment rates are applied. Assessment
rates currently range from 0.0% of deposits for an institution in the highest category (<I>i.e.</I>,
well-capitalized and financially sound, with no more than a few minor weaknesses) to 0.27% of
deposits for an institution in the lowest category (<I>i.e.</I>, undercapitalized and substantial
supervisory concern). The FDIC is authorized to raise the assessment rates as necessary to
maintain the required reserve ratio of 1.25%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition, all FDIC-insured institutions are required to pay assessments to the FDIC at an annual
rate of approximately 0.0168% of insured deposits to fund interest payments on bonds issued by the
Financing Corporation, an agency of the federal government established to recapitalize the
predecessor to the Bank Insurance Fund. These assessments will continue until the Financing
Corporation bonds mature in 2017.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Federal Home Loan Bank System. </I></B>CFBank is a member of the FHLB of Cincinnati, which is one of the
regional FHLBs composing the FHLB System. Each FHLB provides a central credit facility primarily
for its member institutions: (i)&nbsp;the greater of $1,000 or 0.20% of the member&#146;s mortgage-related
assets; and (ii)&nbsp;4.50% of the dollar amount of any outstanding advances under such member&#146;s
advances, collateral pledge and security agreement with the FHLB. CFBank, as a member of the FHLB
of Cincinnati is required to acquire and hold shares of capital stock in the FHLB of Cincinnati in
an amount at least equal to 0.12% of the total assets of CFBank. CFBank is also required to own
activity based stock, which is based on 4.45% of CFBank&#146;s outstanding advances. These percentages
are subject to change by the FHLB. CFBank was in compliance with this requirement with an
investment in FHLB of Cincinnati stock at December&nbsp;31, 2005 of $2.7&nbsp;million. Any advances from a
FHLB must be secured by specified types of collateral, and all long-term advances may be obtained
only for the purpose of providing funds for residential housing finance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The FHLBs are required to provide funds for the resolution of insolvent thrifts and to contribute
funds for affordable housing programs. These requirements could reduce the amount of earnings that
the FHLBs can pay as dividends to their members and could also result in the FHLBs imposing a
higher rate of interest on advances to their members. If dividends were reduced, or interest on
future FHLB advances increased, CFBank&#146;s net interest income would be affected. Under the
Gramm-Leach-Bliley Act (the GLB Act), membership in the FHLB is now voluntary for all
federally-chartered savings associations,
</DIV>

<P align="center" style="font-size: 10pt">24
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such as CFBank. The GLB Act also replaces the existing
redeemable stock structure of the FHLB
System with a capital structure that requires each FHLB to meet a leverage limit and a risk-based
permanent capital requirement. Two classes of stock are authorized: Class&nbsp;A (redeemable on
six-month notice) and Class&nbsp;B (redeemable on five-year notice).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Federal Reserve System. </I></B>CFBank is subject to provisions of the FRA and the FRB&#146;s regulations
pursuant to which depositary institutions may be required to maintain non-interest-earning reserves
against their deposit accounts and certain other liabilities. Currently, reserves must be
maintained against transaction accounts (primarily NOW and regular checking accounts). The FRB
regulations generally require that reserves be maintained in the amount of 3.0% of the aggregate of
transaction accounts up to $42.1&nbsp;million. The amount of aggregate transaction accounts in excess
of $42.1&nbsp;million are currently subject to a reserve ratio of 10.0%. The FRB regulations currently
exempt $6.0&nbsp;million of otherwise reservable balances from the reserve requirements, which exemption
is adjusted by the FRB at the end of each year. CFBank is in compliance with the foregoing reserve
requirements. Because required reserves must be maintained in the form of vault cash, a non
interest-bearing account at a Federal Reserve Bank, or a pass-through account as defined by the
FRB, the effect of this reserve requirement is to reduce CFBank&#146;s interest-earning assets. The
balances maintained to meet the reserve requirements imposed by the FRB may be used to satisfy
liquidity requirements imposed by the OTS. FHLB System members are also authorized to borrow from
the Federal Reserve discount window, but FRB regulations require such institutions to exhaust all
FHLB sources before borrowing from a Federal Reserve Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Privacy Regulations. </I></B>The OTS has published final regulations implementing the privacy protection
provisions of the GLB Act. The new regulations generally require that CFBank disclose its privacy
policy, including identifying with whom it shares a customer&#146;s &#147;non-public personal information,&#148;
to any customer at the time of establishing the customer relationship and annually thereafter. In
addition, CFBank is required to provide its customers with the ability to &#147;opt-out&#148; of having their
personal information shared with unaffiliated third parties and not to disclose account numbers or
access codes to non-affiliated third parties for marketing purposes. CFBank currently has a
privacy protection policy in place and believes that such policy is in compliance with the
regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>The USA PATRIOT Act. </I></B>CFBank is subject to the USA PATRIOT Act, which gives the federal government
new powers to address terrorist threats through enhanced domestic security measures, expanded
surveillance powers, increased information sharing and broadened anti-money laundering
requirements. By way of amendments to the Bank Secrecy Act, Title III of the USA PATRIOT Act takes
measures intended to encourage information sharing among bank regulatory agencies and law
enforcement bodies. Further, certain provisions of Title III impose affirmative obligations on a
broad range of financial institutions, including banks, thrifts, brokers, dealers, credit unions,
money transfer agents and parties registered under the Commodity Exchange Act. Among other
requirements, Title III of the USA PATRIOT Act imposes the following requirements with respect to
financial institutions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pursuant to Section&nbsp;352, all financial institutions must establish anti-money laundering
programs that include, at minimum: (i)&nbsp;internal policies, procedures, and controls; (ii)
specific designation of an anti-money laundering compliance officer; (iii)&nbsp;ongoing employee
training programs; and (iv)&nbsp;an independent audit function to test the anti-money laundering
program.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pursuant to Section&nbsp;326, on May&nbsp;9, 2003, the Secretary of the Department of Treasury, in
conjunction with other bank regulators, issued Joint Final Rules that provide for minimum
standards with respect to customer identification and verification. These rules became
effective on October&nbsp;1, 2003.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">25
</DIV>

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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pursuant to Section&nbsp;312 financial institutions that establish, maintain, administer, or
manage private banking accounts or correspondent accounts in the United States for
non-United States
persons or their representatives (including foreign individuals visiting the United States)
must establish appropriate, specific and, where necessary, enhanced due diligence policies,
procedures and controls designed to detect and report money laundering. Effective December
25, 2001, financial institutions are prohibited from establishing, maintaining,
administering or managing correspondent accounts for foreign shell banks (foreign banks that
do not have a physical presence in any country), and such institutions are subject to
certain record keeping obligations with respect to correspondent accounts of foreign banks.
Bank regulators are directed to consider a holding company&#146;s effectiveness in combating
money laundering when ruling on FRA and Bank Merger Act applications.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Holding Company Regulation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Central Federal Corporation is a savings and loan holding company regulated by the OTS and, as
such, is registered with and subject to OTS examination and supervision, as well as certain
reporting requirements. In addition, the OTS has enforcement authority over the holding company
and any of our non-savings institution subsidiaries. Among other things, this authority permits
the OTS to restrict or prohibit activities that are determined to be a serious risk to the
financial safety, soundness or stability of a subsidiary savings institution. Unlike bank holding
companies, federal savings and loan holding companies are not subject to any regulatory capital
requirements or to supervision by the Federal Reserve System.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Permissible Activities of Central Federal Corporation. </I></B>Because we acquired CFBank prior to May&nbsp;4,
1999, we are permitted to engage in the following non-financial activities under the GLB Act: (i)
furnishing or performing management services for a savings institution subsidiary; (ii)&nbsp;conducting
an insurance agency or escrow business; (iii)&nbsp;holding, managing or liquidating assets owned or
acquired from a savings institution subsidiary; (iv)&nbsp;holding or managing properties used or
occupied by a savings institution subsidiary; (v)&nbsp;acting as trustee under a deed of trust; (vi)&nbsp;any
other activity (a)&nbsp;that the FRB, by regulation, has determined to be permissible for bank holding
companies under Section 4(c) of the Bank Holding Company Act of 1956 (the BHC Act), unless the
Director of the OTS, by regulation, prohibits or limits any such activity for savings and loan
holding companies, or (b)&nbsp;in which multiple savings and loan holding companies were authorized by
regulation to directly engage in on March&nbsp;5, 1987; (vii)&nbsp;purchasing, holding, or disposing of stock
acquired in connection with a qualified stock issuance if the purchase of such stock by such
holding company is approved by the Director of the OTS; and (viii)&nbsp;any activity permissible for
financial holding companies under section 4(k) of the BHC Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Permissible activities which are deemed to be financial in nature or incidental thereto under
section 4(k) of the BHC Act include: (i)&nbsp;lending, exchanging, transferring, investing for others or
safeguarding money or securities; (ii)&nbsp;insurance activities or providing and issuing annuities, and
acting as principal, agent or broker; (iii)&nbsp;financial, investment or economic advisory services;
(iv)&nbsp;issuing or selling instruments representing interests in pools of assets that a bank is
permitted to hold directly; (v)&nbsp;underwriting, dealing in or making a market in securities; (vi)
activities previously determined by the FRB to be closely related to banking; (vii)&nbsp;activities that
bank holding companies are permitted to engage in outside of the United States; and (viii)
portfolio investments made by an insurance company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Restrictions Applicable to All Savings and Loan Holding Companies. </I></B>Federal law prohibits a savings
and loan holding company, including us, directly or indirectly, from acquiring: (i)&nbsp;control (as
defined under HOLA) of another savings institution (or a holding company parent) without prior OTS
approval; (ii)&nbsp;through merger, consolidation or purchase of assets, another savings institution or
a holding company thereof, or acquiring all or substantially all of the assets of such institution
(or a holding company)
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">without prior OTS approval; or (iii)&nbsp;control of any depository institution
not insured by the FDIC (except
through a merger with and into the holding company&#146;s savings institution subsidiary that is
approved by the OTS).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A savings and loan holding company may not acquire as a separate subsidiary an insured institution
that has a principal office outside of the state where the principal office of its subsidiary
institution is located, except (i)&nbsp;in the case of certain emergency acquisitions approved by the
FDIC, (ii)&nbsp;if such holding company controls a savings institution subsidiary that operated a home
or branch office in such additional state as of March&nbsp;5, 1987 or (iii)&nbsp;if the laws of the state in
which the savings institution to be acquired is located specifically authorize a savings
institution chartered by that state to be acquired by a savings institution chartered by the state
where the acquiring savings institution or savings and loan holding company is located or by a
holding company that controls such a state-chartered association.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the savings institution subsidiary of a federal mutual holding company fails to meet the QTL
test set forth in Section 10(m) of the HOLA and regulations of the OTS, the holding company must
register with the FRB as a bank holding company under the BHC Act within one year of the savings
institution&#146;s failure to so qualify.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Prohibitions Against Tying Arrangements. </I></B>Federal savings banks are subject to the prohibitions of
12 U.S.C. &#167; 1972 on certain tying arrangements. A depository institution is prohibited, subject to
some exceptions, from extending credit to or offering any other service, or fixing or varying the
consideration for such extension of credit or service, on the condition that the customer obtain
some additional service from the institution or its affiliates or not obtain services of a
competitor of the institution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Federal Securities Laws. </I></B>Our common stock is registered with the SEC under Section 12(g) of
the Securities Exchange Act of 1934, as amended (the Exchange Act), and, accordingly, we are
subject to information, proxy solicitation, insider trading restrictions, and other
requirements under the Exchange Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>The Sarbanes-Oxley Act of 2002. </I></B>As a public company, we are subject to the Sarbanes-Oxley Act of
2002 (Sarbanes-Oxley Act), which implements a broad range of corporate governance and accounting
measures for public companies designed to promote honesty and transparency in corporate America and
better protect investors from corporate wrongdoing. The Sarbanes-Oxley Act&#146;s principal legislation
and the derivative regulation and rule making promulgated by the SEC includes: (i)&nbsp;the creation of
an independent accounting oversight board; (ii)&nbsp;auditor independence provisions that restrict
non-audit services that accountants may provide to their audit clients; (iii)&nbsp;additional corporate
governance and responsibility measures, including the requirement that the principal executive
officer and principal financial officer certify financial statements; (iv)&nbsp;a requirement that
companies establish and maintain a system of internal control over financial reporting and that a
company&#146;s management provide an annual report regarding its assessment of the effectiveness of such
internal control over financial reporting to its independent accountants and that such accountants
provide an attestation report with respect to management&#146;s assessment of the effectiveness of the
company&#146;s internal control over financial reporting; (v)&nbsp;the forfeiture of bonuses or other
incentive-based compensation and profits from the sale of the company&#146;s securities by directors and
senior officers in the twelve month period following initial publication of any financial
statements that later require restatement; (vi)&nbsp;an increase in the oversight of, and enhancement of
certain requirements relating to audit committees of public companies and how they interact with
independent auditors; (vii)&nbsp;the requirement that audit committee members must be independent and
are absolutely barred from accepting consulting, advisory or other compensatory fees from the
issuer; (viii)&nbsp;the requirement that companies disclose whether at least one member of the audit
committee is a &#147;financial expert&#148; (as such term is defined by the SEC) and if not, why not; (ix)
expanded disclosure requirements for corporate insiders, including accelerated reporting of stock
transactions by insiders and a prohibition on insider trading during pension blackout periods; (x)
a prohibition on
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">personal loans to directors and officers, except certain loans made by insured
financial institutions; (xi)
disclosure of a code of ethics and the requirement of filing of a Form 8-K for a change or waiver
of such code; (xii)&nbsp;mandatory disclosure by analysts of potential conflicts of interest; and (xiii)
a range of enhanced penalties for fraud and other violations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Compliance with the Sarbanes-Oxley Act and the regulations promulgated there under may have a
material impact on our results of operations and financial condition, as the internal control rules
become applicable to non-accelerated filers in 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Quotation on Nasdaq&#174;</I></B><B>. </B>Our common stock is quoted on the Nasdaq<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Capital Market. In order to
maintain such quotation, we are subject to certain corporate governance requirements, including:
(i)&nbsp;a majority of our Board of Directors must be composed of independent directors; (ii)&nbsp;we are
required to have an audit committee composed of at least three directors, each of whom is an
independent director, as such term is defined by both the rules of the National Association of
Securities Dealers (NASD)&nbsp;and by Exchange Act regulations; (iii)&nbsp;our nominating committee and
compensation committee must also be composed entirely of independent directors; and (iv)&nbsp;each of
our audit committee and nominating committee must have a publicly available written charter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal and State Taxation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Federal Taxation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>General. </I></B>We report income on a calendar year, consolidated basis using the accrual method of
accounting, and we are subject to federal income taxation in the same manner as other corporations,
with some exceptions discussed below. The following discussion of tax matters is intended only as
a summary and does not purport to be a comprehensive description of the tax rules applicable to the
Company and CFBank. We are subject to a maximum federal income tax rate of 34% for 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Distributions. </I></B>Under the 1996 Act, if CFBank makes &#147;non-dividend distributions&#148; to the holding
company, such distributions will be considered to have been made from CFBank&#146;s unrecaptured tax bad
debt reserves (including the balance of its reserves as of December&nbsp;31, 1987) to the extent
thereof, and then from CFBank&#146;s supplemental reserve for losses on loans, to the extent thereof,
and an amount based on the amount distributed (but not in excess of the amount of such reserves)
will be included in CFBank&#146;s taxable income. Non-dividend distributions include distributions in
excess of CFBank&#146;s current and accumulated earnings and profits, as calculated for federal income
tax purposes, distributions in redemption of stock, and distributions in partial or complete
liquidation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dividends paid out of CFBank&#146;s current or accumulated earnings and profits will not be so included
in CFBank&#146;s taxable income. At year-end 2005, CFBank had no accumulated earnings and profits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The amount of additional taxable income triggered by a non-dividend distribution is an amount that,
when reduced by the tax attributable to the income, is equal to the amount of the distribution.
Thus, if CFBank makes a non-dividend distribution to the holding company, approximately one and
one-half times the amount of such distribution (but not in excess of the amount of such reserves)
would be includable in income for federal income tax purposes, assuming a 34% federal corporate
income tax rate. CFBank does not intend to pay dividends that would result in a recapture of any
portion of its bad debt reserves.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Ohio Taxation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are subject to the Ohio corporate franchise tax, which, as applied to the holding company, is a
tax measured by both net earnings and net worth. In general, the tax liability is the greater of
5.1% on the
</DIV>

<P align="center" style="font-size: 10pt">28
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">first $50,000 of computed Ohio taxable income and 8.5% of computed Ohio taxable income
in excess of
$50,000 or 0.4% times of taxable net worth. Under these alternative measures of computing tax
liability, complex formulas determine the jurisdictions to which total net income and total net
worth are apportioned or allocated. The minimum tax is $50 per year, and maximum tax liability as
measured by net worth is limited to $150,000 per year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A special litter tax also applies to all corporations, including the holding company, subject to
the Ohio corporate franchise tax. This litter tax does not apply to &#147;financial institutions.&#148; If
the franchise tax is paid on the net income basis, the litter tax is equal to 0.11% of the first
$50,000 of computed Ohio taxable income and 0.22% of computed Ohio taxable income in excess of
$50,000. If the franchise tax is paid on the net worth basis, the litter tax is equal to 0.014%
times taxable net worth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain holding companies, such as Central Federal Corporation, will qualify for complete exemption
from the net worth tax if certain conditions are met. The holding company will most likely meet
these conditions, and thus, calculate its Ohio franchise tax on the net income basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CFBank is a &#147;financial institution&#148; for State of Ohio tax purposes. As such, it is subject to the
Ohio corporate franchise tax on &#147;financial institutions,&#148; which is imposed annually at a rate of
1.3% of CFBank&#146;s apportioned book net worth, determined in accordance with generally accepted
accounting principles, less any statutory deduction. As a &#147;financial institution,&#148; CFBank is not
subject to any tax based upon net income or net profits imposed by the State of Ohio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Delaware Taxation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a Delaware holding company not earning income in Delaware, we are exempted from Delaware
corporate income tax but are required to file an annual report with and pay an annual franchise tax
to the State of Delaware.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Available Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our
website address is <U>www.CFBankonline.com</U>. We make available free of charge through our website
our annual report on Form 10-KSB, quarterly reports on Form 10-QSB, current reports on Form 8-K and
any amendments to these reports as soon as reasonably practicable after we electronically file such
reports with the Commission. These reports can be found on our website under the caption &#147;CF News
and Links &#151; Investor Relations &#151; SEC Filings.&#148; Investors also can obtain copies of our filings
from the Commission&#146;s website at www.sec.gov.
</DIV>

<P align="center" style="font-size: 10pt">29
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left" colspan="3"><B>Item&nbsp;2&nbsp;&nbsp;Description of Property</B></TD>

</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We conduct our business through five offices located in Summit, Columbiana, and Franklin Counties,
Ohio.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Original</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Net Book Value of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Property or</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Leased</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Leased</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Date of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Leasehold</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>or</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>or</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Lease</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Improvements at</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Location</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Acquired</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Expiration</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>December 31, 2005</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(Dollars in thousands)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Administrative/Home Office:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2923 Smith Rd</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Leased</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">396</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fairlawn, Ohio 44333</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Branch Offices:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em">
    <TD><DIV style="margin-left:15px; text-indent:-15px">601 Main Street</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Owned</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">712</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wellsville, Ohio 43968</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">49028 Foulks Drive</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Owned</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">304</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">East Liverpool, Ohio 43920</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4249 Easton Way, Suite&nbsp;125</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Leased</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Columbus, Ohio 43219</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Residential Mortgage Origination Office:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1730 Akron-Peninsula Rd</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Leased</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Akron, Ohio 44313</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left" colspan="3"><B>Item&nbsp;3&nbsp;&nbsp;Legal Proceedings</B></TD>

</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We may, from time to time, be involved in various legal proceedings in the normal course of
business. Periodically, there have been various claims and lawsuits involving CFBank, such as
claims to enforce liens, condemnation proceedings on properties in which CFBank holds security
interests, claims involving the making and servicing of real property loans and other issues
incident to our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2005, CFBank terminated the Richard J. O&#146;Donnell, President of Reserve. The former
President filed a request for arbitration against CFBank and contends that CFBank owes him $600,000
for breaching an employment agreement between him and CFBank by discharging him without just cause.
CFBank responded by denying that it breached the employment agreement in that CFBank had just
cause to discharge him for flagrant misconduct and malfeasance, alleging causes of action for
breach of contract, breach of fiduciary duty, and breach of duty of loyalty. The arbitration is in
the discovery stage and the outcome cannot be determined at this time. Mr.&nbsp;O&#146;Donnell owned 5.5% of
the Company&#146;s outstanding shares at the time the dispute arose. In January&nbsp;2006, the Company
issued 2.3&nbsp;million shares of its common stock in a public stock offering and, as a result of the
increase in the number of outstanding shares, Mr.&nbsp;O&#146;Donnell&#146;s ownership has been reduced to 2.7%.
</DIV>

<P align="center" style="font-size: 10pt">30
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are not a party to any other pending legal proceeding that management believes would have a
material adverse effect on our financial condition or operations, if decided adversely to us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">No tax shelter penalty was assessed against the Company or any of our subsidiaries by the Internal
Revenue Service (IRS)&nbsp;in fiscal year 2005 or at any other time, in connection with any transaction
deemed by the IRS to be abusive or to have a significant tax avoidance purpose.
</DIV>
<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left" colspan="3"><B>Item&nbsp;4&nbsp;&nbsp;Submission of Matters to a Vote of Security Holders</B></TD>

</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None.
</DIV>
<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART II</B>
</DIV>

<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD colspan="3"><B>Item&nbsp;5&nbsp;&nbsp;Market for Common Equity, Related Stockholder Matters and Small Business Issuer Purchases
of Equity Securities</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The market information required by Item&nbsp;201(a), the stockholders information required by Item
201(b) and the dividend information required by Item 201(c) of Regulation&nbsp;S-B is incorporated by
reference to our 2005 Annual Report to shareholders distributed to shareholders and furnished to
the Commission under Rule&nbsp;14a-3(b) of the Exchange Act; the information appears under the caption
&#147;Market Prices and Dividends Declared&#148; on page 18 and in &#147;Note 18 &#151; Capital Requirements and
Restrictions on Retained Earnings&#148; at page 41 therein, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The equity compensation plan information required by Item 201(d) of Regulation&nbsp;S-B is set forth
herein under Part&nbsp;III, Item&nbsp;11, Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The information required by Item&nbsp;701 of Regulation&nbsp;S-B with respect to our sales of unregistered
securities during fiscal 2003 has been reported previously in filings made with the Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We did not purchase any of our equity securities requiring disclosure under Item&nbsp;703 of Regulation
S-B.
</DIV>
<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left" colspan="3"><B>Item&nbsp;6&nbsp;&nbsp;Management&#146;s Discussion and Analysis or Plan of Operation</B></TD>

</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Information required by Item&nbsp;303 of Regulation&nbsp;S-B is incorporated by reference to our 2005 Annual
Report to shareholders distributed to shareholders and furnished to the Commission under Rule
14a-3(b) of the Exchange Act; the information appears under the caption &#147;Management&#146;s Discussion
and Analysis of Financial Condition and Results of Operations&#148; at page 4 therein.
</DIV>
<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left" colspan="3"><B>Item&nbsp;7&nbsp;&nbsp;Financial Statements</B></TD>

</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The consolidated financial statements required by Item 310(a) of Regulation&nbsp;S-B are incorporated by
reference to our 2005 Annual Report to shareholders distributed to shareholders and furnished to
the Commission under Rules&nbsp;14a-3(b) and (c)&nbsp;of the Exchange Act; the financial statements appear
under the caption &#147;Financial Statements&#148; at page 19 therein and include the following:
</DIV>

<P align="center" style="font-size: 10pt">31
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Report of Independent Registered Public Accounting Firm<BR>
Consolidated Balance Sheets<BR>
Consolidated Statements of Operations<BR>
Consolidated Statements of Comprehensive Loss<BR>
Consolidated Statements of Changes in Shareholders&#146; Equity<BR>
Consolidated Statements of Cash Flows<BR>
Notes to Consolidated Financial Statements
</DIV>

<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD colspan="3"><B>Item&nbsp;8&nbsp;&nbsp;Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None.
</DIV>
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left" colspan="3"><B>Item&nbsp;8A&nbsp;&nbsp;Controls and Procedures</B></TD>

</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Evaluation of disclosure controls and procedures. </I>We maintain disclosure controls and procedures
that are designed to ensure that information required to be disclosed in our Exchange Act reports
is recorded, processed, summarized and reported within the time periods specified in the SEC&#146;s
rules and forms, and that such information is accumulated and communicated to our management,
including our principal executive officer and principal financial officer, as appropriate, to allow
timely decisions regarding required disclosure based closely on the definition of &#147;disclosure
controls and procedures&#148; in Rule&nbsp;13a-14(c). Management, with the participation of our principal
executive and financial officers, has evaluated the effectiveness of its disclosure controls and
procedures (as such term is defined in Rules&nbsp;13a-15(e) and 15d-15(e) under the Securities Exchange
Act of 1934 (Exchange Act)) as of the end of the period covered by this report. Based on such
evaluation, our principal executive officer and principal financial officer have concluded that, as
of the end of such period, our disclosure controls and procedures are effective in recording,
processing, summarizing and reporting, on a timely basis, information required to be disclosed by
us in the reports we file or submit under the Exchange Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Changes in internal control over financial reporting. </I>We made no significant changes in our
internal controls or in other factors that could significantly affect these controls subsequent to
the date of the completion of the evaluation of those controls by our principal executive officer
and principal financial officer.
</DIV>
<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left" colspan="3"><B>Item&nbsp;8B&nbsp;&nbsp;Other Information</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None.
</DIV>

<P align="center" style="font-size: 10pt">32
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART III</B>
</DIV>

<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD colspan="3"><B>Item&nbsp;9&nbsp;&nbsp;Directors, Executive Officers, Promoters and Control Persons; Compliance with Section&nbsp;16(a)
of the Exchange Act</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Directors. </I>Information required by Item&nbsp;401 of Regulation&nbsp;S-B with respect to our directors and
committees of the Board of Directors is incorporated by reference to our definitive Proxy Statement
for our 2006 Annual Meeting of Stockholders filed with the Commission on March&nbsp;30, 2006, under the
caption &#147;PROPOSAL 1. ELECTION OF DIRECTORS.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Executive Officers of the Registrant</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Age at</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Position held with the Company</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>and/or Subsidiaries</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">David C. Vernon <SUP style="font-size: 85%; vertical-align: text-top">(1) </SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">65</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman, Company and CFBank</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mark S. Allio <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice-Chairman, President and Chief
Executive Officer, Company;
Vice-Chairman and Chief Executive
Officer, CFBank</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Raymond E. Heh
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">63</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Operating
Officer, CFBank</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">R. Parker MacDonell
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regional President &#151; Columbus, CFBank</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Eloise L. Mackus
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice President, General
Counsel and Secretary, Company and
CFBank</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Timothy M. O&#146;Brien
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice President &#151; Mortgage
Operations, CFBank</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Therese A. Liutkus
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">46</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Treasurer and Chief Financial
Officer, Company and CFBank</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Vernon held this position thru December&nbsp;31, 2005, after which time he assumed the role of
Vice-Chairman of the Board of Directors of the Company and CFBank.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Allio held these positions thru December&nbsp;31, 2005, after which time he assumed the role of
Chairman of the Board of Directors of the Company and CFBank.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">David C. Vernon was Chairman of the Board of the Company and CFBank at December&nbsp;31, 2005. He
served as President and Chief Executive Officer of the Company and Chief Executive Officer of
CFBank from January&nbsp;2003 until January&nbsp;31, 2005. He has worked for more than 40&nbsp;years in banking in
our markets. He founded Summit Bank in Akron in 1991, which operated successfully until its
acquisition by FirstFederal Financial Services Corp. in 1997. Mr.&nbsp;Vernon held previous leadership
positions with the
</DIV>

<P align="center" style="font-size: 10pt">33
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Firestone Bank and Bank One Akron NA. On January&nbsp;1, 2006, he retired as Chairman
and assumed the role of Vice-Chairman of the Company and CFBank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mark S. Allio, Vice-Chairman, President and Chief Executive Officer of Central Federal and
Vice-Chairman and Chief Executive Officer of CFBank since February&nbsp;1, 2005, has more than 29&nbsp;years
of banking and banking-related experience, including service as President and Chief Executive
Officer of Rock Bank in Livonia, Michigan, an affiliate of Quicken Loans, Inc. from April&nbsp;2003 to
December&nbsp;2004. He was previously President of Third Federal Savings, MHC in Cleveland, Ohio, a
multi-billion dollar thrift holding company from January&nbsp;2000 to December&nbsp;2002 and Chief Financial
Officer of Third Federal from 1988 thru 1999. On January&nbsp;1, 2006, Mr.&nbsp;Allio assumed the role of
Chairman of the Company and CFBank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Raymond E. Heh, President and Chief Operating Officer, joined CFBank in June&nbsp;2003. Formerly, Mr.
Heh held numerous positions at Bank One Akron NA including Chairman, President and CEO. He was
with Bank One Akron NA for 18&nbsp;years and has over 40&nbsp;years of experience in the commercial banking
industry. Mr.&nbsp;Heh is a graduate of The Pennsylvania State University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">R.&nbsp;Parker MacDonell, Regional President &#151; Columbus, joined CFBank in May&nbsp;2003. Mr.&nbsp;MacDonell is a
third generation Ohio banker with 18&nbsp;years of commercial banking experience. He is a former Senior
Vice President of Bank One Columbus NA, a position he held for three years during his 15&nbsp;year
tenure with Bank One. He is a graduate of Dartmouth College and received his master&#146;s degree from
Yale University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Eloise L. Mackus is Senior Vice President, General Counsel and Secretary of the Company and CFBank.
Prior to joining us in July&nbsp;2003, Ms.&nbsp;Mackus practiced in law firms in Connecticut and Ohio and
was the Vice President and General Manager of International Markets for The J. M. Smucker Company.
Ms.&nbsp;Mackus completed a bachelor&#146;s degree at Calvin College and a juris doctorate at The University
of Akron School of Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Timothy M. O&#146;Brien is Senior Vice President &#151; Mortgage Operations of CF Bank. Prior to joining us
in August&nbsp;2005, Mr.&nbsp;O&#146;Brien was Director of Asset &#038; Risk Management at DeepGreen Financial and
Senior Vice President at Greystone Funding Corporation. Mr.&nbsp;O&#146;Brien has 12&nbsp;years of banking
experience concentrating in commercial, residential and consumer product lines. He received a
bachelor&#146;s degree in Business Administration from the University of Toledo in 1988.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Therese A. Liutkus joined the Company and CFBank as Chief Financial Officer in November&nbsp;2003.
Prior to that time, Ms.&nbsp;Liutkus was Chief Financial Officer of First Place Financial Corp. and
First Place Bank for six years and she has more than 20&nbsp;years of banking experience. Ms.&nbsp;Liutkus
is a certified public accountant and has a bachelor&#146;s degree in accounting from Cleveland State
University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Compliance with </I><I>Section 16(a)</I><I> of the Exchange Act. </I>Information required by Item&nbsp;405 of Regulation
S-B is incorporated by reference to our definitive Proxy Statement for our 2006 Annual Meeting of
Stockholders filed with the Commission on March&nbsp;30, 2006, under the caption &#147;ADDITIONAL INFORMATION
ABOUT DIRECTORS AND EXECUTIVE OFFICERS &#151;Section&nbsp;16(a) Beneficial Ownership Reporting Compliance.&#148;
Copies of Section&nbsp;16 reports, Forms 3, 4 and 5, are available on our website, www.CFBankonline.com
under the caption &#147;CF News and Links &#151; Investor Relations &#151; Section&nbsp;16 Filings.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Code of Ethics. </I>We have adopted a code of ethics, our Financial Code of Ethics, which meets the
requirements of Item&nbsp;406 of Regulation&nbsp;S-B and applies to our principal executive officer,
principal financial officer and principal accounting officer. Since our inception in 1998, we have
had a Code of Business Conduct and Ethics (Code of Conduct). We require all directors, officers
and other employees
</DIV>

<P align="center" style="font-size: 10pt">34
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to adhere to the Code of Conduct in addressing the legal and ethical issues
encountered in conducting their work. The Code of Conduct requires that our employees avoid
conflicts of interest, comply with all
laws and other legal requirements, conduct business in an honest and ethical manner and otherwise
act with integrity and in the Company&#146;s best interest. The Financial Code of Ethics and
the Code of Conduct are available on our website, www.CFBankonline.com under the caption &#147;CF News
and Links &#151; Investor Relations &#151; Corporate Governance.&#148;
</DIV>
<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left" colspan="3"><B>Item&nbsp;10&nbsp;&nbsp;Executive Compensation</B></TD>

</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Information required by Item&nbsp;402 of Regulation&nbsp;S-B is incorporated by reference to our definitive
Proxy Statement for the 2006 Annual Meeting of Stockholders filed with the Commission on March&nbsp;30,
2006, under the caption &#147;EXECUTIVE COMPENSATION.&#148;
</DIV>
<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">

    <TD colspan="3"><B>Item&nbsp;11&nbsp;&nbsp;Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Security Ownership of Certain Beneficial Owners and Management. </I>Information required by Item&nbsp;403
of Regulation&nbsp;S-B is incorporated by reference to our definitive Proxy Statement for the 2006
Annual Meeting of Stockholders filed with the Commission on March&nbsp;30, 2006, under the caption
&#147;STOCK OWNERSHIP.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Related Stockholder Matters &#151; Equity Compensation Plan Information</I>. The following table sets forth
information about Company common stock that may be issued upon exercise of options, warrants and
rights under all of the Company&#146;s equity compensation plans as of December&nbsp;31, 2005.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Securities</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Securities to be</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Remaining</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Issued Upon</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted-Average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Available for</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Exercise of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Exercise Price of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Future Issuance</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Outstanding</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Outstanding</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">under Equity</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Options, Warrants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Options, Warrants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Compensation</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Plan Category</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">and Rights</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">and Rights</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Plans</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity compensation
plans approved by
shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">290,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,126</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity compensation
plans not approved
by shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">290,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,126</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See Part&nbsp;II, Item&nbsp;7, Financial Statements, Notes 1 and 17, for a description of the principal
provisions of our equity compensation plans. The information required by Item&nbsp;7 is incorporated by
reference to our 2005 Annual Report to shareholders distributed to shareholders and furnished to
the Commission under Rules&nbsp;14a-3(b) and (c)&nbsp;of the Exchange Act; the financial statements appear
under the caption &#147;Financial Statements&#148; at page 19 therein.
</DIV>

<P align="center" style="font-size: 10pt">35
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="117"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left" colspan="3"><B>Item&nbsp;12&nbsp;&nbsp;Certain Relationships and Related Transactions</B></TD>

</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Information required by Item&nbsp;404 of Regulation&nbsp;S-B is incorporated by reference to our definitive
Proxy Statement for our 2006 Annual Meeting of Stockholders filed with the Commission on March&nbsp;30,
2006,
under the caption &#147;ADDITIONAL INFORMATION ABOUT DIRECTORS AND OFFICERS &#151; Certain Relationships and
Related Transactions.&#148;
</DIV>
<DIV align="left">
<A name="118"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left" colspan="3"><B>Item&nbsp;13&nbsp;&nbsp;Exhibits</B></TD>

</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">See Exhibit&nbsp;Index at page 38 of this report on Form 10-KSB.
</DIV>
<DIV align="left">
<A name="119"></A>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left" colspan="3"><B>Item&nbsp;14&nbsp;&nbsp;Principal Accountant Fees and Services</B></TD>

</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Information required by Item 9(e) of Schedule&nbsp;14A pursuant to this Item&nbsp;14 is incorporated by
reference to our definitive Proxy Statement for our 2006 Annual Meeting of Stockholders filed with
the Commission on March&nbsp;30, 2006, under the caption &#147;PROPOSAL 2: RATIFICATION OF APPOINTMENT OF
INDEPENDENT AUDITORS.&#148;
</DIV>

<P align="center" style="font-size: 10pt">36
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="120"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In accordance with Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="26%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>CENTRAL FEDERAL CORPORATION</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Mark S. Allio</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mark S. Allio</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Chairman, President and Chief Executive Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date: March&nbsp;30, 2006</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In accordance with the Exchange Act, this report has been signed below by the following persons on
behalf of the registrant and in the capacities and on the dates indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Title</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Date</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Mark S. Allio
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Mark S. Allio
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board, President&nbsp;and
Chief Executive Officer
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;30, 2006</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(principal executive officer)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Therese Ann Liutkus
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Therese Ann Liutkus, CPA
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Treasurer and Chief Financial Officer&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;30, 2006</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(principal accounting
and financial officer)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ David C. Vernon
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
David C. Vernon
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice-Chairman of the Board&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;30, 2006</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Jeffrey W. Aldrich
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Jeffrey W. Aldrich
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;30, 2006</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Thomas P. Ash
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Thomas P. Ash
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;30, 2006</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ William R. Downing
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
William R. Downing
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;30, 2006</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Gerry W. Grace
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Gerry W. Grace
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;30, 2006</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Jerry F. Whitmer
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Jerry F. Whitmer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;30, 2006</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">37
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="121"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">EXHIBIT INDEX
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Description of Exhibit</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Incorporation of the registrant (incorporated by reference to Exhibit&nbsp;3.1 to
the registrant&#146;s Registration Statement on Form&nbsp;SB-2 No.&nbsp;333-64089 filed with the Commission
on September&nbsp;23, 1998)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment to Certificate of Incorporation of the registrant (incorporated by reference to
Exhibit&nbsp;3.2 to the registrant&#146;s Registration Statement on Form&nbsp;S-2 No.&nbsp;333-129315 filed with
the Commission on October&nbsp;28, 2005)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Bylaws of the registrant (incorporated by reference to Exhibit&nbsp;3.3 to
the registrant&#146;s Registration Statement on Form&nbsp;S-2 No.&nbsp;333-129315 filed with the Commission
on October&nbsp;28, 2005)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Stock Certificate of Central Federal Corporation (incorporated by reference to
Exhibit&nbsp;4.0 to the registrant&#146;s Registration Statement on Form&nbsp;SB-2 No.&nbsp;333-64089 filed with
the Commission on September&nbsp;23, 1998)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Salary Continuation Agreement between CFBank and David C. Vernon (incorporated by
reference to Exhibit&nbsp;10.1 to the registrant&#146;s Form&nbsp;10-KSB for the fiscal year ended December
31, 2004, filed with the Commission on March&nbsp;30, 2005)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement between CFBank and Richard J. O&#146;Donnell (incorporated by
reference to Exhibit&nbsp;10.2 to the registrant&#146;s Form&nbsp;10-KSB for the fiscal year ended December
31, 2004, filed with the Commission on March&nbsp;30, 2005)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.3*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement between the registrant and David C. Vernon (incorporated by
reference to Exhibit&nbsp;10.1 to the registrant&#146;s Form&nbsp;10-KSB for the fiscal year ended December
31, 2003, filed with the Commission on March&nbsp;30, 2004)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.4*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment to Employment Agreement between the registrant and David C. Vernon (incorporated
by reference to Exhibit&nbsp;10.3 to the registrant&#146;s Form&nbsp;10-KSB for the fiscal year ended
December&nbsp;31, 2004, filed with the Commission on March&nbsp;30, 2005)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.5*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment to Employment Agreement between CFBank and David C. Vernon (incorporated by
reference to Exhibit&nbsp;10.4 to the registrant&#146;s Form&nbsp;10-KSB for the fiscal year ended December
31, 2004, filed with the Commission on March&nbsp;30, 2005)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.6*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Second Amendment to Employment Agreement between the registrant and David C. Vernon
(incorporated by reference to Exhibit&nbsp;10.5 to the registrant&#146;s Form&nbsp;10-KSB for the fiscal year
ended December&nbsp;31, 2004, filed with the Commission on March&nbsp;30, 2005)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.7*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Second Amendment to Employment Agreement between CFBank and David C. Vernon (incorporated by
reference to Exhibit&nbsp;10.6 to the registrant&#146;s Form&nbsp;10-KSB for the fiscal year ended December
31, 2004, filed with the Commission on March&nbsp;30, 2005)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">11.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Statement Re: Computation of Per Share Earnings</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">13.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Annual Report to Security Holders for the Fiscal Year Ended December&nbsp;31, 2005</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">21.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subsidiaries of the Registrant</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Independent Registered Public Accounting Firm</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">31.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rule&nbsp;13a-14(a) Certifications of the Chief Executive Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">31.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rule&nbsp;13a-14(a) Certifications of the Chief Financial Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">32.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Section&nbsp;1350 Certifications of the Chief Executive Officer and Chief Financial Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD colspan="3">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management contract or compensation plan or arrangement identified pursuant to
Item&nbsp;13 of Form&nbsp;10-KSB</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt">38
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-11.1
<SEQUENCE>2
<FILENAME>l17961aexv11w1.txt
<DESCRIPTION>EXHIBIT 11.1 COMPUTATION OF PER SHARE EARNINGS
<TEXT>
<PAGE>

                                                                    EXHIBIT 11.1

                        COMPUTATION OF PER SHARE EARNINGS

The information regarding Computation of Per Share Earnings is incorporated by
reference to the Company's 2005 Annual Report to shareholders distributed to
shareholders and furnished to the Commission under Rules 14a-3(b) and (c) of the
Exchange Act; the computation appears under the caption "Note 23 - Earnings Per
Share" at page 46 therein.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-13.1
<SEQUENCE>3
<FILENAME>l17961aexv13w1.txt
<DESCRIPTION>EXHIBIT 13.1 ANNUAL REPORT
<TEXT>
<PAGE>
                                                                               .
                                                                               .
                                                                               .

                                                                    EXHIBIT 13.1

 ANNUAL REPORT TO SECURITY HOLDERS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2005

Table of Contents

<TABLE>
<CAPTION>
                                                             Page
                                                             ----
<S>                                                          <C>
Message to Shareholders                                        3

Management's Discussion and Analysis of
Financial Condition and Results of Operations
Selected Financial and Other Data                              4
General                                                        6
Forward-Looking Statements                                     6
Management Strategy                                            7
Financial Condition                                            8
Comparison of Results of Operations for 2005 and 2004         10
Comparison of Results of Operations for 2004 and 2003         12
Quantitative and Qualitative Disclosures about Market Risk    16
Liquidity and Capital Resources                               17
Impact of Inflation                                           17
Critical Accounting Policies                                  17
Market Prices and Dividends Declared                          18

Financial Statements
Report of Independent Registered Public Accounting Firm       19
Consolidated Financial Statements                             20
Notes to Consolidated Financial Statements                    26

Board of Directors                                            48

Officers                                                      48

CFBank Office Locations                                       48

Corporate Data
Annual Report                                                 48
Annual Meeting                                                48
Shareholder Services                                          48
</TABLE>

<PAGE>

Message to Shareholders

Dear Shareholders,

Change, growth, execution, discovery and restructuring are all words that are
applicable to the successful implementation of our vision. Over the past three
years we have asked you, our shareholders, to allow us an opportunity to build
an outstanding community bank that is focused on growth and a fanatical
attention to detail and customer service. You have been patient as we have
undergone a number of changes and we are appreciative and thankful.

During this past year we made additional tough decisions that required
restructuring and added expense in the short term. At the same time we made
substantial investments for the future that are required for the foundation of a
strong, growth oriented community bank.

In February 2005 Mark Allio took the reins as CEO and he has brought us years of
residential lending, management experience and financial accounting expertise.
Dave Vernon, Ray Heh and the other members of the commercial banking team
continued to lead our expansion into business financial services. And expand we
did. Total loans grew 29% during the year. Specifically, commercial loans,
commercial real estate and multi-family loans grew 37.5%. On the consumer side
we focused our attention on Home Equity Lines of Credit which grew over 302%
during the year.

We also saw substantial growth in deposits which grew 25%; while certificates of
deposits grew 48%.

The growth added significantly to our net interest income for the year, which
increased 24%.

We are approaching the point where the growth will be sufficient to bring about
the profitability we envisioned when we implemented our growth and expansion
plan at the beginning of 2003.

In the fourth quarter of the year, we announced and executed an offering of 2.3
million shares of common stock. Proceeds from issuing the additional shares have
provided us with the needed capital for continued growth. The offering was
completed in January 2006 and we have received the $14.5 million net proceeds
from the offering.

Our promise of creating value for our customers, the communities we serve and
for our shareholders continues. Systemic, sustainable and profitable growth will
be our focus for 2006.

We look forward to the coming year and the opportunity to build on the
accomplishments of 2005. We are growing and becoming stronger. Thank you for
your support.


Mark S. Allio
Chairman, President and CEO


David C. Vernon
Vice-Chairman


                                      -2-

<PAGE>

         Management's Discussion and Analysis of Financial Condition and
                              Results of Operations

                        SELECTED FINANCIAL AND OTHER DATA

The information in the following tables should be read in conjunction with our
Consolidated Financial Statements, the related Notes and Management's Discussion
and Analysis of Financial Condition and Results of Operations as contained in
this report.

<TABLE>
<CAPTION>
                                                        AT DECEMBER 31,
                                     ----------------------------------------------------
                                       2005       2004       2003       2002       2001
                                     --------   --------   --------   --------   --------
                                                    (DOLLARS IN THOUSANDS)
<S>                                  <C>        <C>        <C>        <C>        <C>
SELECTED FINANCIAL CONDITION DATA:
Total assets                         $173,021   $171,005   $107,011   $110,551   $120,927
Cash and cash equivalents               2,972     32,675      8,936     12,861      4,329
Securities available for sale          30,872     13,508     27,126      1,439      2,092
Securities held to maturity                --         --         --     17,822     23,343
Loans, net(1)                         124,026    108,149     58,024     62,565     70,570
Allowance for loan losses               1,495        978        415        361        373
Nonperforming assets                      800        418        934        783        985
Foreclosed assets                          --        132        193          2         98
Goodwill                                   --      1,749         --         --         --
Other intangible assets                    --        299         --         --         --
Deposits                              127,588    101,624     73,358     74,690     76,168
FHLB advances                          22,995     41,170      7,500     11,430     18,393
Other borrowings                           --      2,249         --      4,900      7,000
Subordinated debentures                 5,155      5,155      5,155         --         --
Total shareholders' equity             16,081     19,507     19,856     17,583     18,160
</TABLE>

<TABLE>
<CAPTION>
                                              FOR THE YEAR ENDED DECEMBER 31,
                                     ------------------------------------------------
                                       2005       2004       2003      2002     2001
                                     --------   --------   --------   ------   ------
                                                  (DOLLARS IN THOUSANDS)
<S>                                  <C>        <C>        <C>        <C>      <C>
SUMMARY OF OPERATIONS:
Total interest income                $ 8,691    $ 6,144    $ 5,435    $7,067   $9,588
Total interest expense                 3,723      2,149      3,521     3,462    5,299
                                     -------    -------    -------    ------   ------
   Net interest income                 4,968      3,995      1,914     3,605    4,289
Provision for loan losses                674        646        102        19       62
                                     -------    -------    -------    ------   ------
   Net interest income after
      provision for loan losses        4,294      3,349      1,812     3,586    4,227
Noninterest income:
   Net gain (loss) on sale of
      securities                          --        (55)        42        16       15
   Other                                 866        592        714       549      169
                                     -------    -------    -------    ------   ------
      Total noninterest income           866        537        756       565      184
Impairment loss on goodwill and
   intangibles                         1,966         --         --        --       --
Noninterest expense (12)               6,861      6,420      5,930     3,164    3,501
                                     -------    -------    -------    ------   ------
Income (loss) before income taxes     (3,667)    (2,534)    (3,362)      987      910
Income tax expense (benefit)            (377)      (872)      (988)      313      312
                                     -------    -------    -------    ------   ------
      Net income (loss)              $(3,290)   $(1,662)   $(2,374)   $  674   $  598
                                     =======    =======    =======    ======   ======
</TABLE>

                                                    (See footnotes on next page)


                                      -3-

<PAGE>

         Management's Discussion and Analysis of Financial Condition and
                              Results of Operations

<TABLE>
<CAPTION>
                                                                AT OR FOR THE YEAR ENDED DECEMBER 31,
                                                          --------------------------------------------------
                                                            2005       2004       2003       2002      2001
                                                          --------   -------    -------    -------   -------
<S>                                                       <C>        <C>        <C>        <C>       <C>
SELECTED FINANCIAL RATIOS AND OTHER DATA:

PERFORMANCE RATIOS:(2) (10)
Return on average assets                                    (2.02%)    (1.23%)    (2.19%)     0.58%     0.45%
Return on average equity                                   (17.71%)    (8.60%)   (12.34%)     3.76%     3.32%
Average yield on interest-earning assets(3)                  5.93%      5.03%      5.62%      6.98%     7.71%
Average rate paid on interest-bearing liabilities            2.75%      1.93%      2.63%      3.63%     4.65%
Average interest rate spread(4)                              3.18%      3.10%      2.99%      3.35%     3.06%
Net interest margin, fully taxable equivalent(5) (11)        3.39%      3.27%      3.28%      3.56%     3.45%
Interest-earning assets to interest-bearing liabilities    108.28%    109.82%    113.38%    106.09%   109.17%
Efficiency ratio(6)                                        151.30%    139.96%    225.65%     76.17%    78.53%
Noninterest expense to average assets                        5.43%      4.74%      5.47%      2.74%     2.63%
Dividend payout ratio                                         n/m        n/m        n/m       83.7%    81.58%

CAPITAL RATIOS:(2)
Equity to total assets at end of period                      9.29%     11.41%     18.56%     15.90%    15.02%
Average equity to average assets                            11.43%     14.26%     17.76%     15.54%    13.54%
Tangible capital ratio (9)                                   6.90%      8.10%     13.90%     18.90%    18.40%
Core capital ratio (9)                                       6.90%      8.10%     13.90%     18.90%    18.40%
Risk-based capital ratio (9)                                10.10%     12.20%     21.60%     38.60%    35.70%

ASSET QUALITY RATIOS:(2)
Nonperforming loans to total loans (7)                       0.64%      0.26%      1.28%      1.25%     1.25%
Nonperforming assets to total assets(8)                      0.46%      0.24%      0.87%      0.71%     0.81%
Allowance for loan losses to total loans                     1.19%      0.90%      0.71%      0.57%     0.53%
Allowance for loan losses to nonperforming loans (7)       186.88%    341.96%     56.01%     46.22%    42.24%
Net charge-offs to average loans                             0.14%      0.10%      0.08%      0.05%     0.05%

PER SHARE DATA:
Basic earnings (loss) per share                           $ (1.49)   $ (0.82)   $ (1.31)   $  0.44   $  0.38
Diluted earnings (loss) per share                           (1.49)     (0.82)     (1.31)      0.43      0.38
Dividends declared                                           0.36       0.36       0.36       0.36      0.31
Tangible book value per share at end of period               7.17       7.99       9.81      10.68     10.42
</TABLE>

- ----------
(1)  Loans, net represents gross loans receivable net of the allowance for loan
     losses, loans in process and deferred loan origination fees.

(2)  Asset quality ratios and capital ratios are end-of-period ratios. All other
     ratios are based on average monthly balances during the indicated periods.

(3)  Calculations of yield are presented on a taxable equivalent basis using the
     federal income tax rate of 34%.

(4)  The average interest rate spread represents the difference between the
     weighted average yield on average interest-earning assets and the weighted
     average cost of average interest-bearing liabilities.

(5)  The net interest margin represents net interest income as a percent of
     average interest-earning assets.

(6)  The efficiency ratio equals noninterest expense divided by net interest
     income plus noninterest income (excluding gains or losses on securities
     transactions).

(7)  Nonperforming loans consist of nonaccrual loans and other loans 90 days or
     more past due.

(8)  Nonperforming assets consist of nonperforming loans, other repossessed
     assets and REO.

(9)  Regulatory capital ratios of CFBank.

(10) Performance ratios for the year ended December 31, 2005 were significantly
     affected by the pre-tax $2.0 million impairment loss on goodwill and
     intangibles. Following are performance ratios excluding this charge:

<TABLE>
<S>                                                   <C>
     Return on average assets                          (0.86%)
     Return on average equity                          (7.27%)
     Efficiency ratio                                 117.60%
     Ratio of noninterest expense to average assets     4.20%
</TABLE>

     Reconciliation of GAAP net loss to loss excluding the impairment loss on
     goodwill and intangibles:

<TABLE>
<S>                                                   <C>
     GAAP net loss                                    $(3,290)
     Impairment loss on goodwill and intangibles,
        net of tax                                      1,893
                                                      -------
     Loss excluding impairment loss on goodwill and
        intangibles                                   $(1,397)
                                                      =======
     Diluted loss per share                           $ (0.63)
                                                      =======
</TABLE>

(11) Calculated excluding the $1.3 million penalty on prepayment of FHLB
     advances in 2003.

(12) Excludes the $2.0 million impairment loss in 2005.


                                      -4-
<PAGE>

   Management's Discussion and Analysis of Financial Condition and Results of
                                   Operations

GENERAL

Central Federal Corporation is a savings and loan holding company incorporated
in Delaware in 1998. Our primary business is the operation of our principal
subsidiary, CFBank, a federally chartered savings association formed in Ohio in
1892.

We are a community-oriented financial institution offering a variety of
financial services to meet the needs of the communities we serve. We attract
deposits from the general public and use the deposits, together with borrowings
and other funds, primarily to originate commercial and commercial real estate
loans, single-family and multi-family residential mortgage loans and home equity
lines of credit. We also invest in consumer loans, construction and land loans
and securities.

We emphasize personalized service, access to decision makers, timely response to
loan requests and loan processing and the convenience of telephone banking,
corporate cash management and online internet banking for our depositors.

Our principal market area for loans and deposits includes the following Ohio
counties: Summit County through our office in Fairlawn, Ohio; Franklin County
through our office in Columbus, Ohio; and Columbiana County through our offices
in Calcutta and Wellsville, Ohio. We have a residential mortgage origination
office in Akron, Ohio. We originate commercial and conventional real estate
loans and business loans throughout Ohio.

Management's discussion and analysis represents a review of our consolidated
financial condition and results of operations. This review should be read in
conjunction with our consolidated financial statements and related notes.

Our results of operations are dependent primarily on net interest income, which
is the difference between the interest income earned on loans and securities and
the cost of funds, consisting of interest paid on deposits and borrowed funds.
Net interest income is affected by regulatory, economic and competitive factors
that influence interest rates, loan demand and deposit flows. Net income is also
affected by, among other things, loan fee income, provisions for loan losses,
service charges, gains on loan sales, operating expenses and franchise and
income taxes. Operating expenses principally consist of employee compensation
and benefits, occupancy and other general and administrative expenses. Results
of operations are significantly affected by general economic and competitive
conditions, particularly changes in market interest rates, government policies
and actions of regulatory authorities. Future changes in applicable laws,
regulations or government policies may also materially impact our performance.

FORWARD-LOOKING STATEMENTS

This Annual Report contains "forward-looking statements" which may be identified
by the use of such words as "may," "believe," "expect," "anticipate," "should,"
"plan," "estimate," "predict," "continue" and "potential" or the negative of
these terms or other


                                       -5-

<PAGE>

   Management's Discussion and Analysis of Financial Condition and Results of
                                   Operations

comparable terminology. Examples of forward-looking statements include, but are
not limited to, estimates with respect to our financial condition, results of
operations and business that are subject to various factors which could cause
actual results to differ materially from these estimates. These factors include,
but are not limited to (i) general and local economic conditions, (ii) changes
in interest rates, deposit flows, demand for mortgages and other loans, real
estate values and competition, (iii) changes in accounting principles, policies
or guidelines, (iv) changes in legislation or regulation; and (v) other
economic, competitive, governmental, regulatory and technological factors
affecting our operations, pricing, products and services.

Any or all of the forward-looking statements in this Annual Report and in any
other public statements we make may turn out to be wrong. They can be affected
by inaccurate assumptions we might make or by known or unknown risks and
uncertainties. Consequently, no forward-looking statement can be guaranteed. We
do not intend to update any of the forward-looking statements after the date of
this Annual Report or to conform these statements to actual results.

MANAGEMENT STRATEGY

From the time of our mutual-to-stock thrift conversion in 1998 through 2002, we
operated as an overcapitalized company exhibiting limited growth potential and
earnings that were well below industry averages in terms of returns on average
assets and equity. In order to increase our growth potential and earnings and to
more effectively deploy our capital, the Board of Directors recognized that we
needed to strengthen our management team, move into more rapidly growing markets
and expand into business banking in order to be properly positioned to deliver
long-term shareholder value.

At the beginning of 2003, the Board of Directors adopted a plan which called for
adding experienced bankers to the management team, converting to a new data
processing system, opening new offices in Fairlawn and Columbus and expanding
into business financial services. The plan also called for other structural
changes. Implementing the plan has resulted in increased expenses in the
short-term, and our level of net interest income has not been sufficient to
cover the increased overhead levels since we embarked on this strategy. We have
undertaken significant restructuring costs, such as severance costs, termination
of our Employee Stock Ownership Plan, freezing our defined benefit plan and
restructuring our Federal Home Loan Bank (FHLB) debt. We believe that we have
largely completed restructuring our management team and balance sheet, and
believe that we are positioned to increase shareholder value as we become a more
profitable community bank and continue building on the growth we have achieved
in the past three years. While we recognize that we have many well-established
competitors in our new markets, we believe that we will be able to achieve
significant growth in these markets over the next several years. Our stock
offering in January 2006 provided approximately $14.5 million in additional
capital which has enabled us to expand our lending limit and further enhance our
ability to expand in the markets we serve.


                                       -6-

<PAGE>

   Management's Discussion and Analysis of Financial Condition and Results of
                                   Operations

Our strategy to increase growth and profitability has the following components:

- -    Management -- In 2003, we began to put in place a strong senior management
     team with extensive banking experience. We believe it is unusual for a
     community bank to have a management team with such depth of experience and
     expertise. There has been significant industry consolidation in our markets
     in recent years, and we believe a substantial segment of the market is
     eager to do business with experienced bankers who are willing and able to
     provide personal service and prompt decisions.

- -    Growth Markets -- With the change in management, we also adopted an
     ambitious growth plan and expanded into new markets. We opened offices in
     Columbus and Fairlawn, Ohio, where higher population and median income
     levels offer far greater potential for growth and profitability. Along with
     our expansion into these new markets, we shifted our focus to more fully
     serving the more profitable commercial and commercial real estate loan
     markets. We also enhanced our mortgage lending capabilities by positioning
     ourselves to originate mortgages utilizing the internet.

- -    Customer Service -- We have differentiated ourselves from the competition
     by providing personalized service and access to experienced decision makers
     with the goal of meeting the individual financial needs and objectives of
     each customer. We limit the number of accounts served by each of our
     officers so that CFBank clients receive the highest level of personal
     service. We also provide courier service for depositors, and we are a
     leader in utilizing technology to enhance the level of service we provide.

- -    Asset Quality -- Historically, we have had excellent asset quality, which
     we have been careful to maintain. We have a team of very experienced
     lenders, and believe we have developed a stronger credit review process
     than would typically be seen at a community bank. With an increased legal
     lending limit as a result of our recent stock offering, we plan to
     significantly increase our loan portfolio while maintaining superior asset
     quality through conservative underwriting practices.

We continued to successfully execute our plan for growth during 2005.
Commercial, commercial real estate and multi-family loans increased $19.8
million or 37.5% during 2005 and totaled $72.5 million at December 31, 2005.
Home equity lines of credit increased $17.9 million or 302.4% during 2005 and
totaled $23.9 million at year-end, including the purchase an $8.8 million pool
of these loans in October 2005. Deposits increased $26.0 million or 25.5% during
2005 and totaled $127.6 million at year-end.

This growth positively impacted net interest income which increased 24.4% and
totaled $5.0 million in 2005 compared to $4.0 million in 2004. Net interest
margin increased to 3.39% during 2005 compared to 3.27% during 2004.

In January 2006, we successfully completed the offering of 2.3 million shares of
common stock at a purchase price of $7.00 per share raising additional capital
of approximately $14.5 million after offering expenses and underwriting
commissions. The proceeds from this offering provided the capital needed to take
advantage of opportunities as we continue to execute our strategy of growth.


                                       -7-

<PAGE>

   Management's Discussion and Analysis of Financial Condition and Results of
                                   Operations

Profitability during 2005 was negatively impacted by pretax operating losses of
Reserve Mortgage Services (Reserve), our mortgage banking division. We expected
the division's performance to be immediately accretive to earnings, but lower
than projected loan origination and sales volumes resulted in losses. We
recorded a non-cash after-tax impairment loss of $1.9 million in the quarter
ended September 30, 2005 to write-off the value of goodwill and other intangible
assets related to the October 2004 acquisition of Reserve. Recognition of the
impairment loss had no effect on the regulatory capital ratios of CFBank or
tangible book value of the Company.

In December 2005, a redemption of $1.3 million in FHLB stock resulted in a $1.0
million gain for tax purposes which utilized a portion of our net operating loss
carryforward. The stock redemption resulted in no gain for book purposes but did
result in the recognition of federal income tax expense of $344,000, which was a
non-cash, non-recurring expense reflecting the tax liability associated with
FHLB stock dividends received from 1978 through 1997 which reduced the basis of
the shares redeemed for which no deferred tax liability had been established.

Profitability during 2005 was also impacted by expenses associated with
additions to management and staff necessary to support growth, operating
expenses associated with expansion into new markets and provisions for loan
losses resulting from increased commercial, commercial real estate and
multi-family residential lending. Current projections indicate improved
performance in 2006 that is significantly dependent on our ability to continue
to grow. Operating expenses which were essential for our expansion into business
and financial services require the support of a larger asset base and resultant
increased earnings to achieve profitability.

We are not aware of any market or institutional trends, other events or
uncertainties that are expected to have a material effect on liquidity, capital
resources or operations. We are not aware of any current recommendations by
regulators which would have a material effect if implemented.

FINANCIAL CONDITION

GENERAL. Total assets at December 31, 2004 included $30.0 million in overnight
investments at a positive spread to the FHLB advances used to fund the
investment. As short-term interest rates increased and the spread between the
investment and borrowing declined, the investments were liquidated and cash was
used to repay the advances during the first quarter of 2005. The $2.0 million
increase in total assets to $173.0 million at December 31, 2005 from $171.0
million at December 31, 2004 occurred even though assets and liabilities were
reduced by $30 million as a result of unwinding the arbitrage transaction. The
remaining increase in total assets was due to $19.8 million growth in commercial
loans and $17.9 million growth in home equity lines of credit offset by the $2.0
million pre-tax impairment charge discussed previously. Loan growth was funded
by deposit growth and FHLB advances.


                                       -8-

<PAGE>

   Management's Discussion and Analysis of Financial Condition and Results of
                                   Operations

CASH AND CASH EQUIVALENTS. Cash and cash equivalents totaled $3.0 million at
December 31, 2005, a decline of $29.7 million from $32.7 million at December 31,
2004 due to the use of cash to repay FHLB advances as discussed above.

SECURITIES. Securities available for sale increased $17.4 million during the
year and totaled $30.9 million at December 31, 2005 compared to $13.5 million at
December 31, 2004. The increase in the portfolio was the result of a
securitization of single-family residential mortgage loans held in our portfolio
with an outstanding principal balance of $18.6 million with Freddie Mac in the
second quarter of 2005. The securitization increased liquidity as the securities
retained are readily marketable and held as available-for-sale. Credit risk on
the loans was eliminated as a result of the securitization and CFBank's
risk-based capital requirement was reduced.

LOANS. Loans, net totaled $124.0 million at December 31, 2005 compared to $108.1
million at December 31, 2004. Not considering the securitization transaction
which reduced net mortgage balances by $18.5 million, overall loan balances
increased by $34.4 million, or 38.4% driven by growth in commercial, commercial
real estate, multi-family loans and home equity lines of credit which are an
integral focus of our strategic growth plan. Commercial, commercial real estate
and multi-family loans increased $19.8 million or 37.5% during 2005 and totaled
$72.5 million at December 31, 2005 compared to $52.7 million at December 31,
2004 as we continued to focus on lending to businesses. Home equity lines of
credit increased $17.9 million or 302.4% during 2005 and totaled $23.9 million
at year-end 2005 compared to $6.0 million at year-end 2004. Growth in home
equity lines of credit included the purchase of an $8.8 million pool of these
loans in October 2005.

FEDERAL HOME LOAN BANK STOCK. FHLB stock declined $1.1 million during 2005 and
totaled $2.7 million at year-end 2005 compared to $3.8 million at year-end 2004
due to the $1.3 million redemption discussed above offset by current year stock
dividends.

GOODWILL AND OTHER INTANGIBLE ASSETS. Goodwill totaling $1.7 million represented
the excess of the purchase price over the fair value of acquired tangible assets
and liabilities and identifiable intangible assets from the Reserve acquisition.
Other intangible assets consisted of prior owner intangibles arising from the
acquisition. The decision to recognize the impairment loss discussed above was
in accordance with Statement of Financial Accounting Standards (SFAS) No. 142,
"Goodwill and Other Intangible Assets" which requires recognition of an
impairment loss when the carrying amount of the asset is not recoverable and its
carrying amount exceeds its fair value. Additional information is included in
Notes 8 and 21 to our audited consolidated financial statements.

DEPOSITS. Deposits increased $26.0 million, or 25.5% during 2005 and totaled
$127.6 million at December 31, 2005 compared to $101.6 million at December 31,
2004. The increase was due to growth of $22.3 million in certificate of deposit
accounts and $7.2 million in demand deposit accounts (including money market
accounts) offset by a $3.5 million decline in traditional savings account
balances. The growth in certificate of deposit accounts included $6.9 million in
brokered deposits, which totaled $13.0 million


                                       -9-

<PAGE>

   Management's Discussion and Analysis of Financial Condition and Results of
                                   Operations

at year-end 2005. We expect to continue to use brokered deposits as a source of
funding depending on market conditions, pricing and funding needs.

FEDERAL HOME LOAN BANK ADVANCES. FHLB advances declined $18.2 million during
2005 and totaled $23.0 million at year-end 2005 compared to $41.2 million at
year-end 2004 due to repayment of advances associated with the arbitrage
transaction, discussed previously and use of advances in the current year to
fund loan growth. FHLB advances at year-end 2005 include $10.3 million in fixed
rate advances maturing at various times from March 2006 through September 2008
at an average interest rate of 2.90% which were drawn primarily during the first
six months of 2004 to fund loans at low borrowing interest rates and protect our
interest rate risk position as market interest rates increased.

OTHER BORROWINGS. Other borrowings, which totaled $2.2 million at December 31,
2004, represented the outstanding balance on a revolving line of credit which
was acquired in the Reserve acquisition. The line of credit was repaid during
the quarter ended March 31, 2005.

SUBORDINATED DEBENTURES. Subordinated debentures totaled $5.2 million at
year-end 2005 and 2004 and were issued in 2003 in exchange for the proceeds of a
$5.0 million trust preferred securities offering issued by a trust formed by the
Company. The proceeds of the offering are available to provide capital for
CFBank to support growth.

SHAREHOLDERS' EQUITY. Total shareholders' equity declined $3.4 million or 17.6%
during 2005 and totaled $16.1 million at December 31, 2005 compared to $19.5
million at December 31, 2004 primarily due to the net loss and dividends during
the year. Our capital ratio was 9.29% at December 31, 2005 compared to 11.41% at
December 31, 2004. In January 2006, we successfully completed the offering of
2.3 million shares of common stock raising additional capital of approximately
$14.5 million after offering expenses and underwriting commissions.

Office of Thrift Supervision (OTS) regulations require savings institutions to
maintain certain minimum levels of regulatory capital. Additionally, the
regulations establish a framework for the classification of savings institutions
into five categories: well-capitalized, adequately capitalized,
undercapitalized, significantly undercapitalized and critically
undercapitalized. Generally, an institution is considered well-capitalized if it
has a core (Tier 1) capital ratio of at least 5.0% (based on adjusted total
assets); a core (Tier 1) risk-based capital ratio of a least 6.0%; and a total
risk-based capital ratio of at least 10.0%. CFBank had capital ratios above the
well-capitalized levels at year-end 2005 and 2004.

COMPARISON OF RESULTS OF OPERATIONS FOR 2005 AND 2004

GENERAL. Operations resulted in a net loss of $3.3 million or $.1.49 per diluted
share in 2005, an increase of $1.6 million compared to a net loss of $1.7
million or $.82 per diluted share in 2004 primarily due to the impairment loss
on goodwill and intangibles and


                                      -10-

<PAGE>

   Management's Discussion and Analysis of Financial Condition and Results of
                                   Operations

federal income tax on the FHLB stock redemption discussed above offset by
increased net interest income resulting from our growth strategy.

NET INTEREST INCOME. Net interest income is a significant component of net
income, and consists of the difference between interest income generated on
interest-earning assets and interest expense incurred on interest-bearing
liabilities. Net interest income is primarily affected by the volumes, interest
rates and composition of interest-earning assets and interest-bearing
liabilities. The following tables titled "Average Balances, Interest Rates and
Yields" and "Rate/Volume Analysis of Net Interest Income" provide important
information on factors impacting net interest income and should be read in
conjunction with this discussion of net interest income.

Net interest income increased 24.4% and totaled $5.0 million in 2005 compared to
$4.0 million in 2004. The improvement in net interest income was due to growth
in assets, primarily commercial, commercial real estate and multi-family
mortgage loans and home equity lines of credit.

Interest income increased $2.6 million or 41.5% to $8.7 million in 2005,
compared to $6.1 million in 2004, primarily due to increased income on loans and
securities offset by a decline in income from short-term cash investments.
Interest income on loans increased $2.4 million, or 50.3% in 2005 to $7.3
million compared to $4.9 million in 2004, due to growth in loan balances and
higher yields on loans. Average loan balances increased $32.3 million and
totaled $114.2 million in 2005 compared to $81.9 million in 2004 primarily due
to commercial, commercial real estate and multi-family mortgage loan growth.
Average loan yields increased 46 basis points (bp) to 6.39% in 2005 compared to
5.93% in 2004 due to an increase in short-term market interest rates in 2005 and
growth in commercial, commercial real estate and multi-family mortgage loans and
home equity lines of credit, which are primarily adjustable rate loans and
comprised 76.7% of the loan portfolio in 2005 compared to 53.7% in 2004.
Interest income on securities increased $351,000 or 45.6% and totaled $1.1
million in 2005 compared to $770,000 in 2004 due to an increase in the average
balance and yield on securities. The average balance of securities increased
$5.8 million and totaled $25.4 million in 2005 compared to $19.6 million in 2004
due to the securitization transaction discussed previously. The yield on
securities increased 44 bp and totaled 4.45% in 2005 compared to 4.01% in 2004
primarily due to the mortgage loan securitization which added higher yielding
assets to the securities portfolio. Interest income on federal funds sold and
other earning assets declined $279,000 and totaled $88,000 in 2005 compared to
$367,000 in 2004 due to a decline in the average balance partially offset by an
increase in yield on these assets. The average balance of other earning assets
decreased $13.9 million and totaled $3.4 million in 2005 compared to $17.3
million in 2004, which included the arbitrage transaction described previously.
The yield on other earning assets increased 49 bp to 2.61% in 2005 from 2.12% in
2004 as short-term market interest rates increased during 2005. The average
balance of interest-earning assets increased $24.2 million and the average yield
of interest-earning assets increased 90 bp during 2005.

Interest expense increased $1.6 million or 73.2% to $3.7 million in 2005
compared to $2.1 million in 2004 due to increased interest expense on both
deposits and borrowings.


                                      -11-

<PAGE>

   Management's Discussion and Analysis of Financial Condition and Results of
                                   Operations

Interest expense on deposits increased $1.4 million or 96.7% to $2.8 million
from $1.4 million in 2004 due to increases in both the average balance and cost
of deposits. Average deposit balances increased $30.3 million to $110.6 million
in 2005 from $80.3 million in 2004 primarily due to growth in certificate of
deposit accounts. The average cost of deposits increased 76 bp to 2.55% in 2005
from 1.79% in 2004 due to higher market interest rates in 2005. Interest expense
on FHLB advances and other borrowings, including subordinated debentures,
increased $186,000 or 26.1% to $899,000 in 2005 from $713,000 in 2004 due to an
increase in the average cost offset by a decline in the average balance of
borrowings. The average cost of FHLB advances and other borrowings increased 134
bp to 3.62% in 2005 from 2.28% in 2004 primarily due increased short-term
interest rates in 2005 which negatively affected both the cost of short-term
FHLB advances and subordinated debentures. The average balance of FHLB advances
and other borrowings decreased $6.4 million to $24.9 million in 2005 from $31.3
million in 2004 as short-term borrowings were repaid when the arbitrage
transaction described previously was unwound in the first quarter of 2005. The
average balance of interest-bearing liabilities increased $23.9 million and the
average cost of interest-bearing liabilities increased 82 bp in 2005.

Net interest margin increased 12 bp from 3.27% in 2004 to 3.39% in 2005.

PROVISION FOR LOAN LOSSES. Management analyzes the adequacy of the allowance for
loan losses regularly through reviews of the performance of the loan portfolio
considering economic conditions, changes in interest rates and the effect of
such changes on real estate values and changes in the composition of the loan
portfolio. The allowance for loan losses is established through a provision for
loan losses based on management's evaluation of the risk in its loan portfolio.
The evaluation includes a review of all loans for which full collectibility may
not be reasonably assured and considers, among other matters, the estimated fair
value of the underlying collateral, economic conditions, historical loan loss
experience, changes in the size and growth of the loan portfolio and additional
factors that warrant recognition in providing for an adequate loan loss
allowance. Future additions to the allowance for loan losses will be dependent
on these factors.

Based on management's review, the provision for loan losses totaled $674,000 in
2005; comparable to $646,000 in 2004. At December 31, 2005, the allowance for
commercial, commercial real estate and multi-family mortgage loans totaled $1.3
million, an increase of $456,000 or 52.9% from $862,000 at December 31, 2004 as
these loan types increased from 48.3% of the loan portfolio at year-end 2004 to
58.7% at year-end 2005. 88.2% of the allowance was allocated to these loan types
at December 31, 2005, as they tend to be larger balance, higher risk loans. At
December 31, 2005, the allowance for loan losses represented 1.19% of total
loans compared to 0.90% at December 31, 2004. Nonperforming loans, all of which
are nonaccrual loans, totaled $800,000 at December 31, 2005, an increase of
$514,000 compared to $286,000 at December 31, 2004 representing an increase in
single-family mortgage loan delinquencies. At December 31, 2005, 0.6% of total
loans were nonaccrual loans compared to 0.3% at December 31, 2004. All of the
nonaccrual loan balances are secured by single-family homes in our primary
market area. Management believes the allowance for loan losses is adequate to
absorb probable incurred credit losses in the loan portfolio at December 31,
2005; however,


                                      -12-

<PAGE>

   Management's Discussion and Analysis of Financial Condition and Results of
                                   Operations

future additions to the allowance may be necessary based on changes in economic
conditions and the factors discussed in the previous paragraph.

NONINTEREST INCOME. Noninterest income increased $329,000 or 61.3% to $866,000
in 2005 compared to $537,000 in 2004 due to an increase in net gains on loan
sales. Mortgage loan originations and sales increased and net gains on sales
totaled $469,000 in 2005, an increase of $247,000 from $222,000 in 2004 due to
increased originations by the mortgage banking division acquired in October
2004. Significant future increases in market mortgage interest rates may reduce
the volume of loan originations, sales and resultant gains.

NONINTEREST EXPENSE. Noninterest expense included an impairment loss of $2.0
million recognized in the third quarter of 2005, discussed previously.
Noninterest expense, excluding the impairment loss, totaled $6.9 million in
2005, an increase of $441,000 or 6.9% compared to $6.4 million in 2004 primarily
due to operating costs related to Reserve, (acquired in October 2004) which
totaled $831,000 in 2005 compared to $144,000 in 2004. Current year noninterest
expense also included $68,000 in professional fees related to implementation of
the internal control provisions of Section 404 of the Sarbanes-Oxley Act of 2002
which will be applicable to us beginning in 2007. Noninterest expense in 2004
included $106,500 in legal and professional fees related to the reverse stock
split abandoned by the Board in early 2005 and $166,000 in expenses related to
employee severance and post-retirement life insurance benefits associated with
bank owned life insurance.

INCOME TAXES. The income tax benefit in 2005 totaled $377,000 and included a
non-cash non-recurring federal income tax charge of $344,000 related to
redemption of FHLB stock described previously. The goodwill impairment loss
recognized in 2005 was not deductible for tax purposes.

COMPARISON OF RESULTS OF OPERATIONS FOR 2004 AND 2003

GENERAL. We incurred a net loss of $1.7 million or $.82 per diluted share in
2004, a 30.0% improvement from the net loss of $2.4 million or $1.31 per diluted
share in 2003 primarily due to higher net interest income offset by additional
provision for loan losses, a decline in gains on loan sales and increased
noninterest expense.

NET INTEREST INCOME. Net interest income totaled $4.0 million in 2004 compared
to $1.9 million in 2003. Net interest income in 2003 included a $1.3 million
pre-tax prepayment penalty incurred in the repayment of long-term, fixed-rate
FHLB advances, discussed below. Not including the prepayment penalty, net
interest income increased 25.5% in 2004 compared to 2003. The improvement in net
interest income was due to growth in assets, primarily commercial, commercial
real estate and multi-family mortgage loans, and a reduction in the cost of
borrowings in 2004 due to FHLB advance payoffs, noted above and lower market
interest rates.


                                      -13-

<PAGE>

   Management's Discussion and Analysis of Financial Condition and Results of
                                   Operations

Interest income increased $709,000 or 13.0% to $6.1 million in 2004, compared to
$5.4 million in 2003 primarily due to increased income on loans and short-term
cash investments offset by a decline in income on securities. Interest income on
loans increased $652,000, or 15.5% in 2004 to $4.9 million, compared to $4.2
million in 2003, primarily due to growth in loan balances offset by lower yields
on loans. Average loan balances increased $24.5 million and totaled $81.9
million in 2004 compared to $57.4 million in 2003 primarily due to loan growth
pursuant to our strategy to expand into business financial services in the
Fairlawn and Columbus, Ohio markets. Average loan yields declined 139 bp to
5.93% in 2004 compared to 7.32% in 2003 due to payoffs of higher yielding
mortgage loans and growth in commercial, commercial real estate and multi-family
mortgage loans, which are primarily adjustable rate loans at lower rates than
single-family mortgage loans and comprised 59.6% of the loan portfolio in 2003
compared to 37.9% in 2004. Interest income on federal funds sold and other
earning assets totaled $367,000 in 2004 and increased $215,000, or 141.4% from
$152,000 in 2003 due to an increase in both the average balance and yield of
other earning assets. The average balance of other earning assets increased $4.9
million and totaled $17.3 million in 2004 compared to $12.4 million in 2003 as
we maintained short-term cash balances in anticipation of loan growth. The yield
on other earning assets increased 90 bp to 2.12% in 2004 from 1.22% in 2003 as
short-term market interest rates increased during 2004. Interest income on
securities declined $169,000 or 18.0% and totaled $770,000 in 2004 compared to
$939,000 in 2003 primarily due to a decline in the average balance of
securities. The average balance of securities declined $4.1 million and totaled
$19.6 million in 2004 compared to $23.7 million in 2003 due to cash flows from
maturities and sales of securities generally invested in short-term cash
investments in anticipation of loan growth. The yield on securities was 4.01% in
2004 compared to 4.02% in 2003. The average balance of interest-earning assets
increased $25.4 million and the average yield of interest-earning assets
declined 59 bp during 2004.

Interest expense, not including the $1.3 million prepayment penalty, decreased
$102,000 or 4.5% to $2.1 million in 2004 compared to $2.2 million in 2003 due to
a decline in interest expense on deposits offset by an increase in interest
expense on borrowings. Interest expense on deposits decreased $134,000 or 8.5%
to $1.4 million in 2004 from $1.6 million in 2003 due to a decline in the cost
of deposits offset by an increase in the deposit balances. The average cost of
deposits declined 35 bp to 1.79% in 2004 from 2.14% in 2003. Average deposit
balances increased $6.9 million to $80.3 million in 2004 from $73.4 million in
2003 primarily due to success in building deposit relationships with business
loan customers. Interest expense on FHLB advances and other borrowings including
subordinated debentures increased $32,000 or 4.7% to $713,000 in 2004 from
$681,000 in 2003, not including the $1.3 million prepayment penalty. The
increase was due to higher borrowing balances offset by a decline in the average
cost of borrowings. The average balance of FHLB advances and other borrowings
increased $19.1 million to $31.3 million in 2004 from $12.2 million in 2003 as
borrowings were used to fund loan growth and short-term cash investments. The
average cost of FHLB advances and other borrowings decreased 331 bp to 2.28% in
2004 from 5.59% in 2003 primarily due to payoff of long- term, fixed-rate FHLB
advances in 2003. The average balance of interest-bearing liabilities increased
$25.9 million and the average cost of interest-bearing liabilities declined 70
bp in 2004.

Net interest margin declined 1 bp from 3.28% in 2003 to 3.27% in 2004.


                                      -14-

<PAGE>

   Management's Discussion and Analysis of Financial Condition and Results of
                                   Operations

PROVISION FOR LOAN LOSSES. The provision for loan losses is based on
management's regular review of the loan portfolio as described in detail
previously. Based on this review, the provision for loan losses totaled $646,000
in 2004, an increase of $544,000 from $102,000 in 2003. The significant growth
in commercial, commercial real estate and multi-family mortgage loans in 2004
required an increase in the provision and allowance for loan losses. At December
31, 2004, the allowance for commercial, commercial real estate and multi-family
mortgage loans totaled $862,000, an increase of $762,000 from $100,000 at
December 31, 2003 as these loan types grew from 17.8% of the total loan
portfolio at year-end 2003 to 48.3% at year-end 2004. 88.4% of the allowance was
allocated to these loan types at December 31, 2004, as they tend to be larger
balance, higher risk loans. At December 31, 2004, the allowance for loan losses
represented .90% of total loans compared to .71% at December 31, 2003. Further,
nonperforming loans, all of which are nonaccrual loans, were $286,000 at
December 31, 2004 and $741,000 at December 31, 2003. At December 31, 2004, 0.3%
of total loans were nonaccrual, compared to 1.3% at December 31, 2003. The
decline in nonaccrual loans was principally due to acquisition of properties
through the foreclosure process. More than 96% of the nonaccrual loan balances
were secured by single-family homes in our primary market area.

NONINTEREST INCOME. Noninterest income declined $219,000 or 29.0% to $537,000 in
2004, compared to $756,000 in 2003 due to losses on security sales and decreased
gains on sales of loans offset by increased loan servicing fees. Net losses on
sales of securities, which totaled $55,000 in 2004 compared to gains of $42,000
in 2003, were primarily from sales of fixed-rate debt securities. Gains on sales
of loans totaled $222,000 in 2004, a decline of $207,000 or 48.3% from $429,000
during 2003 due to decreased mortgage originations and sales as market mortgage
interest rates increased and customer refinancing slowed during 2004. Net loan
servicing fee income totaled $62,000 in 2004, an increase of $163,000 from a net
loss of $101,000 in 2003, primarily a result of slower mortgage loan prepayments
as market interest rates increased in 2004.

NONINTEREST EXPENSE. Noninterest expense increased $490,000 or 8.3% and totaled
$6.4 million in 2004 compared to $5.9 million in 2003 primarily due to a full
year of operating costs related to staffing, improved technology and expansion
to new locations in Fairlawn and Columbus, including data processing, occupancy,
depreciation and other expenses. Noninterest expense in 2004 also included
$106,500 in legal and professional fees related to the abandoned reverse stock
split and $412,000 in expenses related to employee severance, post-retirement
life insurance benefits associated with bank owned life insurance, one time
charges recognized in connection with the servicing of loans and one time
internal operating account write-offs. Expense for the year ended December 31,
2003 included $1.6 million in salaries and benefits expense related to
restructuring of employee benefit plans and payments on agreements with former
executives.

INCOME TAXES. The income tax benefit associated with the lower net loss in 2004
totaled $872,000 compared to $988,000 in 2003.


                                      -15-
<PAGE>

   Management's Discussion and Analysis of Financial Condition and Results of
                                   Operations

AVERAGE BALANCES, INTEREST RATES AND YIELDS. The following table presents for
the periods indicated the total dollar amount of fully taxable equivalent
interest income from average interest-earning assets and the resultant yields,
as well as the interest expense on average interest-bearing liabilities,
expressed in both dollars and rates.

<TABLE>
<CAPTION>
                                                                   For the Years Ended December 31,
                                    ----------------------------------------------------------------------------------------------
                                                 2005                            2004                            2003
                                    ------------------------------  ------------------------------  ------------------------------
                                      Average    Interest  Average    Average    Interest  Average    Average    Interest  Average
                                    Outstanding   Earned/   Yield/  Outstanding   Earned/   Yield/  Outstanding   Earned/   Yield/
                                      Balance      Paid      Rate     Balance      Paid      Rate     Balance      Paid      Rate
                                    -----------  --------  -------  -----------  --------  -------  -----------  --------  -------
                                                                        (Dollars in thousands)
<S>                                 <C>          <C>       <C>      <C>          <C>       <C>      <C>          <C>       <C>
Interest-earning assets:
   Securities (1) (2)                $ 25,404     $1,121    4.45%    $ 19,605     $  780    4.01%    $ 23,675     $  942    4.02%
   Loans (3)                          114,157      7,295    6.39%      81,900      4,855    5.93%      57,449      4,203    7.32%
   Other earning assets                 3,368         88    2.61%      17,329        367    2.12%      12,410        152    1.22%
   FHLB stock                           3,751        187    4.99%       3,694        152    4.11%       3,557        141    3.96%
                                     --------     ------             --------     ------             --------     ------
      Total interest-earning
         assets                       146,680      8,691    5.93%     122,528      6,154    5.03%      97,091      5,438    5.62%
   Noninterest-earning assets          15,872                          13,034                          11,268
                                     --------                        --------                        --------
      Total assets                   $162,552                        $135,562                        $108,359
                                     ========                        ========                        ========

Interest-bearing liabilities:
   Deposits                          $110,601      2,824    2.55%    $ 80,305      1,436    1.79%    $ 73,440      1,570    2.14%
   FHLB advances and other
      borrowings (4)                   24,860        899    3.62%      31,265        713    2.28%      12,192        681    5.59%
                                     --------     ------             --------     ------             --------     ------
      Total interest-bearing
         liabilities                  135,461      3,723    2.75%     111,570      2,149    1.93%      85,632      2,251    2.63%
   Noninterest-bearing liabilities      8,518                           4,658                           3,484
                                     --------                        --------                        --------
      Total liabilities               143,979                         116,228                          89,116
  Equity                               18,573                          19,334                          19,243
                                     --------                        --------                        --------
      Total liabilities and equity   $162,552                        $135,562                        $108,359
                                     ========                        ========                        ========
   Net interest-earning assets       $ 11,219                        $ 10,958                        $ 11,459
                                     ========                        ========                        ========
   Net interest income/interest
      rate spread                                 $4,968    3.18%                 $4,005    3.10%                 $3,187    2.99%
                                                  ======    ====                  ======    ====                  ======    ====
   Net interest margin                                      3.39%                           3.27%                           3.28%
                                                            ====                            ====                            ====
   Average interest-earning assets
      to average interest-bearing
      liabilities                      108.28%                         109.82%                         113.38%
                                     ========                        ========                        ========
</TABLE>

- ----------
(1)  Average balance is computed using the carrying value of securities.

     Average yield is computed using the historical amortized cost average
     balance for available for sale securities.

(2)  Average yields and interest earned are stated on a fully taxable equivalent
     basis.

(3)  Balance is net of deferred loan origination fees, undisbursed proceeds of
     construction loans and includes nonperforming loans.

(4)  Interest paid does not include the $1.3 million penalty on prepayment of
     FHLB advances in 2003.


                                      -16-
<PAGE>

   Management's Discussion and Analysis of Financial Condition and
                             Results of Operations

RATE/VOLUME ANALYSIS OF NET INTEREST INCOME. The following table presents the
dollar amount of changes in interest income and interest expense for major
components of interest-earning assets and interest-bearing liabilities. It
distinguishes between the increase or decrease related to changes in balances
and/or changes in interest rates. For each category of interest-earning assets
and interest-bearing liabilities, information is provided on changes
attributable to (i) changes in volume (i.e., changes in volume multiplied by the
prior rate) and (ii) changes in rate (i.e., changes in rate multiplied by prior
volume). For purposes of this table, changes attributable to both rate and
volume which cannot be segregated have been allocated proportionately to the
change due to volume and the change due to rate.

<TABLE>
<CAPTION>
                                                     Year Ended                     Year Ended
                                                  December 31, 2005             December 31, 2004
                                               Compared to Year Ended         Compared to Year Ended
                                                  December 31, 2004             December 31, 2003
                                            ----------------------------   ---------------------------
                                            Increase (decrease)            Increase (decrease)
                                                   due to                         due to
                                            -------------------            -------------------
                                               Rate    Volume       Net       Rate   Volume       Net
                                              ------   ------     ------     -----   ------      -----
                                                              (Dollars in thousands)
<S>                                         <C>        <C>        <C>      <C>       <C>         <C>
Interest-earning assets:
   Securities (1)                             $   92   $  249     $  341     $  (2)  $ (160)     $(162)
   Loans                                         402    2,038      2,440      (904)   1,556        652
   Other earning assets                           70     (349)      (279)      140       75        215
   FHLB stock                                     33        2         35         6        5         11
                                              ------   ------     ------     -----   ------      -----
      Total interest-earning assets              597    1,940      2,537      (760)   1,476        716
Interest-bearing liabilities:
   Deposits                                      737      651      1,388      (272)     138       (134)
   FHLB advances and other borrowings (2)        354     (168)       186      (576)     608         32
                                              ------   ------     ------     -----   ------      -----
      Total interest-bearing liabilities       1,091      483      1,574      (848)     746       (102)
                                              ------   ------     ------     -----   ------      -----
Net change in net interest income             $ (494)  $1,457     $  963     $  88   $  730      $ 818
                                              ======   ======     ======     =====   ======      =====
</TABLE>

(1)  Securities amounts are presented on a fully taxable equivalent basis.

(2)  Amounts do not include the $1.3 million penalty on prepayment of FHLB
     advances in 2003.


                                      -17-

<PAGE>

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the risk of loss from adverse changes in market prices and
interest rates. We have not engaged in and, accordingly, have no risk related to
trading accounts, commodities, foreign exchange, hedging activities, interest
rate derivatives or interest rate swaps. However, our hedging policy does allow
CFBank to enter into hedging activities, such as interest rate swaps, up to 10%
of total assets. Market risk arises primarily from interest rate risk inherent
in our lending and deposit gathering activities and the issuance of debentures.
The measurement of market risk associated with financial instruments is
meaningful only when all related and offsetting on- and off-balance sheet
transactions are aggregated, and the resulting net positions are identified.
Disclosures about the fair value of financial instruments as of December 31,
2005, which reflect changes in market prices and rates, are set forth in Note 20
to our consolidated financial statements.

Management actively monitors and manages interest rate risk. The primary
objective in managing interest rate risk is to limit, within established
guidelines, the adverse impact of changes in interest rates on our net interest
income and capital. CFBank measures the effect of interest rate changes on its
net portfolio value (NPV), which is the difference between the estimated market
value of its assets and liabilities under different interest rate scenarios.
Changes in NPV are measured using instantaneous changes in interest rates,
rather than linear changes in rates over a period of time. At December 31, 2005
CFBank's NPV ratios, using interest rate shocks ranging from a 300 bp rise in
rates to a 200 bp decline in rates are shown in the following table. All values
are within the acceptable range established by the Board.

<TABLE>
<CAPTION>
    Net Portfolio Value
        (Bank only)
- ---------------------------
  Basis Point
Change in Rates   NPV Ratio
- ---------------   ---------
<S>               <C>
      +300           9.70%
      +200          10.11%
      +100          10.52%
         0          10.78%
      -100          10.85%
      -200          10.40%
</TABLE>

In evaluating CFBank's exposure to interest rate risk, certain shortcomings
inherent in the method of analysis presented in the foregoing table must be
considered. For example, although certain assets and liabilities may have
similar maturities or periods to which they reprice, they may react in different
degrees to changes in market interest rates. In addition, the interest rates on
certain types of assets and liabilities may fluctuate in advance of changes in
market interest rates, while interest rates on other types may lag behind
changes in market rates. Furthermore, in the event of a change in interest
rates, prepayments and early withdrawal levels would likely deviate
significantly from those assumed in calculating the table. Finally, the ability
of many borrowers to service their debt may decrease when interest rates rise.
Therefore, the actual effect of changing interest rates may differ materially
from that presented in the foregoing table.


                                      -18-

<PAGE>

Our interest rate risk position has improved as a result of management's
strategic decisions to sell fixed-rate single-family mortgage loan originations
rather than retain long-term, low fixed-rate loans in portfolio and grow
commercial, commercial real estate and multi-family loans and home equity lines
of credit, which, in many cases, have adjustable interest rates. Our interest
rate risk position also improved as a result of the extension of maturity dates
of borrowings using longer-term, fixed-rate FHLB advances in 2004 and the
securitization of mortgage loans in 2005, which increased the liquidity of the
mortgages.

LIQUIDITY AND CAPITAL RESOURCES

In general terms, liquidity is a measurement of ability to meet cash needs. The
primary objective in liquidity management is to maintain the ability to meet
loan commitments or to repay deposits and other liabilities in accordance with
their terms without an adverse impact on current or future earnings. Principal
sources of funds are deposits, amortization and prepayments of loans,
maturities, sales and principal receipts of securities available for sale,
borrowings and operations. While maturities and scheduled amortization of loans
are predictable sources of funds, deposit flows and loan prepayments are greatly
influenced by general interest rates, economic conditions and competition.

CFBank is required by regulation to maintain sufficient liquidity to ensure its
safe and sound operation. Thus, adequate liquidity may vary depending on the
bank's overall asset/liability structure, market conditions, the activities of
competitors and the requirements of its own deposit and loan customers.
Management believes that CFBank's liquidity is sufficient.

Liquidity management is both a daily and long-term responsibility of management.
We adjust our investments in liquid assets, primarily cash, short-term
investments and other assets that are widely traded in the secondary market,
based on management's assessment of expected loan demand, expected deposit
flows, yields available on interest-earning deposits and securities and the
objective of our asset/liability management program. In addition to liquid
assets, we have other sources of liquidity available including, but not limited
to access to advances from the FHLB, use of brokered deposits and the ability to
obtain deposits by offering above-market interest rates.

CFBank relies primarily on competitive rates, customer service and relationships
with customers to retain deposits. Based on our historical experience with
deposit retention and current retention strategies, we believe that, although it
is not possible to predict future terms and conditions upon renewal, a
significant portion of such deposits will remain with the bank.

At December 31, 2005, CFBank exceeded all of its regulatory capital requirements
to be considered well-capitalized with a Tier 1 capital level of $11.7 million,
or 6.9% of adjusted total assets, which exceeds the required level of $8.5
million, or 5.0%; Tier 1 risk-based capital level of $11.7 million, or 9.0% of
risk-weighted assets, which exceeds the required level of $7.8 million, or 6.0%;
and risk-based capital of $13.2 million, or 10.1% of risk-weighted assets, which
exceeds the required level of $13.1 million, or 10.0%. In January 2006, the
holding company contributed $10.4 million in additional capital to CFBank.


                                      -19-

<PAGE>

IMPACT OF INFLATION

The financial statements and related data presented herein have been prepared in
accordance with generally accepted accounting principles, which presently
require us to measure financial position and results of operations primarily in
terms of historical dollars. Changes in the relative value of money due to
inflation are generally not considered. In management's opinion, changes in
interest rates affect our financial condition to a far greater degree than
change in the inflation rate. While interest rates are generally influenced by
changes in the inflation rate, they do not move concurrently. Rather, interest
rate volatility is based on changes in the expected rate of inflation, as well
as changes in monetary and fiscal policy. A financial institution's ability to
be relatively unaffected by changes in interest rates is a good indicator of its
ability to perform in a volatile economic environment. In an effort to protect
itself from the effects of interest rate volatility, we review interest rate
risk frequently and take the steps necessary to minimize any detrimental effects
on profitability.

CRITICAL ACCOUNTING POLICIES

We follow financial accounting and reporting policies that are in accordance
with U. S. generally accepted accounting principles and conform to general
practices within the banking industry. These policies are presented in Note 1 to
our audited consolidated financial statements. Some of these accounting policies
are considered to be critical accounting policies, which are those policies that
require management's most difficult, subjective or complex judgments, often as a
result of the need to make estimates about the effect of matters that are
inherently uncertain. Application of assumptions different than those used by
management could result in material changes in our financial position or results
of operations. Management believes that the judgments, estimates and assumptions
used in the preparation of the consolidated financial statements are appropriate
given the factual circumstances at the time.

We have identified accounting polices that are critical accounting policies and
an understanding of these policies is necessary to understand our financial
statements. One critical accounting policy relates to determining the adequacy
of the allowance for loan losses. The Allowance for Loan Losses Policy provides
a thorough, disciplined and consistently applied process that incorporates
management's current judgments about the credit quality of the loan portfolio
into determination of the allowance for loan losses in accordance with generally
accepted accounting principles and supervisory guidance. Management estimates
the allowance balance required using past loan loss experience, the nature and
volume of the portfolio, information about specific borrower situations and
estimated collateral values, economic conditions, and other factors. Management
believes that an adequate allowance for loan losses has been established.
Additional information regarding this policy is included in the sections above
captioned "Provision for Loan Losses" and in Notes 1 and 4 to our audited
consolidated financial statements.

Another critical accounting policy relates to the valuation of the deferred tax
asset for net operating losses. Net operating losses totaling $2.8 million, $2.5
million and $696,000 expire in 2023, 2024 and 2025, respectively. No valuation
allowance has been recorded against the deferred tax asset for net operating
losses because the benefit is more likely than not to be realized. As we
continue our strategy to expand into business financial services and focus on
growth, the resultant increase in interest-earning assets is expected to
increase profitability.


                                      -20-
<PAGE>

Additional information is included in Notes 1 and 15 to our audited consolidated
financial statements.

Another critical accounting policy relates to the valuation of goodwill and the
assessment of impairment. Goodwill is not subject to amortization and is tested
for impairment annually or more frequently if events or changes in circumstances
indicate that the asset might be impaired. Goodwill totaling $1.7 million
resulted from the acquisition of Reserve in 2004 and represented the excess of
the purchase price over the fair value of acquired tangible assets and
liabilities and identifiable intangible assets. We expected Reserve's
performance to be accretive to earnings, but lower than projected loan
origination and sales volumes have resulted in losses. Management does not
believe that volumes will achieve a sufficient level to support the recorded
goodwill. As a result, we recorded a non-cash after-tax impairment loss of $1.9
million or $.86 per diluted share in the quarter ended September 30, 2005 to
write-off the $1.7 million value of goodwill and $217,000 in other intangible
assets related to the acquisition. The decision to recognize the impairment loss
was in accordance with SFAS No. 142, "Goodwill and Other Intangible Assets"
which requires recognition of an impairment loss when the carrying amount of the
asset is not recoverable and its carrying amount exceeds its fair value.
Additional information is included in Notes 1, 8 and 21 to our audited
consolidated financial statements.

MARKET PRICES AND DIVIDENDS DECLARED

The common stock of Central Federal Corporation trades on the Nasdaq SmallCap
Market under the symbol "CFBK." As of December 31, 2005, there were 2,243,662
shares of common stock outstanding and 567 shareholders, excluding persons or
entities holding stock in nominee or street name through various brokerage
firms.

The following table shows the quarterly reported high and low trade prices of
the common stock and cash dividends per share declared during 2005 and 2004.

<TABLE>
<CAPTION>
                  High      Low    Dividends
                 ------   ------   ---------
<S>              <C>      <C>      <C>
2005
First quarter    $13.72   $10.15     $0.09
Second quarter    10.99     9.53      0.09
Third quarter     10.49     8.07      0.09
Fourth quarter     9.45     7.07      0.09

2004
First quarter    $16.10   $12.00     $0.09
Second quarter    18.00    12.35      0.09
Third quarter     15.22    11.25      0.09
Fourth quarter    13.73    10.95      0.09
</TABLE>


                                      -21-

<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders
Central Federal Corporation
Fairlawn, Ohio

We have audited the accompanying consolidated balance sheets of Central Federal
Corporation as of December 31, 2005 and 2004 and the related consolidated
statements of operations, comprehensive loss, changes in shareholders' equity
and cash flows for each of the three years in the period ended December 31,
2005. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Central Federal
Corporation as of December 31, 2005 and 2004 and the results of its operations
and its cash flows for each of the three years in the period ended December 31,
2005, in conformity with U.S. generally accepted accounting principles.

                                                    Crowe Chizek and Company LLC

Cleveland, Ohio
February 13, 2006


                                      -22-

<PAGE>

                           CENTRAL FEDERAL CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                           December 31, 2005 and 2004
                  (Dollars in thousands except per share data)

<TABLE>
<CAPTION>
                                                      2005       2004
                                                    --------   --------
<S>                                                 <C>        <C>
ASSETS
Cash and cash equivalents                           $  2,972   $ 32,675
Securities available for sale                         30,872     13,508
Loans held for sale                                      178         --
Loans, net of allowance of $1,495 and $978           124,026    108,149
Federal Home Loan Bank stock                           2,656      3,778
Loan servicing rights                                    250        208
Foreclosed assets, net                                    --        132
Premises and equipment, net                            2,934      2,690
Goodwill                                                  --      1,749
Other intangible assets                                   --        299
Bank owned life insurance                              3,531      3,401
Loan sales proceeds receivable                         2,241      1,888
Deferred tax asset                                     1,978      1,491
Accrued interest receivable and other assets           1,383      1,037
                                                    --------   --------
                                                    $173,021   $171,005
                                                    ========   ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
   Non-interest bearing                             $  7,509   $  5,505
   Interest bearing                                  120,079     96,119
                                                    --------   --------
      Total deposits                                 127,588    101,624
Federal Home Loan Bank advances                       22,995     41,170
Other borrowings                                          --      2,249
Advances by borrowers for taxes and insurance            113        321
Accrued interest payable and other liabilities         1,089        979
Subordinated debentures                                5,155      5,155
                                                    --------   --------
      Total liabilities                              156,940    151,498

Shareholders' equity
   Preferred stock, 1,000,000 shares authorized;
      none issued                                         --         --
   Common stock, $.01 par value; 6,000,000 shares
      authorized; 2005 - 2,312,195 shares issued,
      2004 - 2,294,520 shares issued                      23         23
   Additional paid-in capital                         12,787     12,519
   Retained earnings                                   4,315      8,497
   Accumulated other comprehensive income                 28         61
   Unearned stock based incentive plan shares           (289)      (351)
   Treasury stock, at cost (2005 - 68,533 shares,
      2004 - 108,671 shares)                            (783)    (1,242)
                                                    --------   --------
      Total shareholders' equity                      16,081     19,507
                                                    --------   --------
                                                    $173,021   $171,005
                                                    ========   ========
</TABLE>

                             See accompanying notes.


                                      -23-
<PAGE>

                           CENTRAL FEDERAL CORPORATION
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                  Years ended December 31, 2005, 2004 and 2003
                  (Dollars in thousands except per share data)

<TABLE>
<CAPTION>
                                                        2005      2004      2003
                                                      -------   -------   -------
<S>                                                   <C>       <C>       <C>
Interest and dividend income
   Loans, including fees                              $ 7,295   $ 4,855   $ 4,203
   Taxable securities                                   1,121       750       934
   Tax exempt securities                                   --        20         5
   Federal Home Loan Bank stock dividends                 187       152       141
   Federal funds sold and other                            88       367       152
                                                      -------   -------   -------
                                                        8,691     6,144     5,435
Interest expense
   Deposits                                             2,824     1,436     1,570
   Federal Home Loan Bank advances and other debt         578       488     1,940
   Subordinated debentures                                321       225        11
                                                      -------   -------   -------
                                                        3,723     2,149     3,521
                                                      -------   -------   -------
Net interest income                                     4,968     3,995     1,914
Provision for loan losses                                 674       646       102
                                                      -------   -------   -------
Net interest income after provision for loan losses     4,294     3,349     1,812
Noninterest income
   Service charges on deposit accounts                    195       141       165
   Net gains on sales of loans                            469       222       429
   Loan servicing fees, net                                16        62      (101)
   Net gains (losses) on sales of securities               --       (55)       42
   Earnings on bank owned life insurance                  130       145       188
   Other                                                   56        22        33
                                                      -------   -------   -------
                                                          866       537       756
Noninterest expense
   Salaries and employee benefits                       3,568     3,454     3,549
   Occupancy and equipment                                462       327       224
   Data processing                                        495       431       246
   Franchise taxes                                        233       196       301
   Professional fees                                      595       424       673
   Director fees                                          170       169       119
   Postage, printing and supplies                         161       167       198
   Advertising and promotion                              138       171        27
   Telephone                                              122        91        48
   Loan expenses                                           32        48        91
   Foreclosed assets, net                                  18        57        14
   Depreciation                                           415       355       176
   Amortization of intangibles                             82        21        --
   Impairment loss on goodwill and intangibles          1,966        --        --
   Other                                                  370       509       264
                                                      -------   -------   -------
                                                        8,827     6,420     5,930
                                                      -------   -------   -------
Loss before income taxes                               (3,667)   (2,534)   (3,362)
Income tax benefit                                       (377)     (872)     (988)
                                                      -------   -------   -------
Net loss                                              $(3,290)  $(1,662)  $(2,374)
                                                      =======   =======   =======
Loss per share:
   Basic                                              $ (1.49)  $ (0.82)  $ (1.31)
   Diluted                                            $ (1.49)  $ (0.82)  $ (1.31)

</TABLE>

                             See accompanying notes.


                                      -24-

<PAGE>

                           CENTRAL FEDERAL CORPORATION
                  CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
                  Years ended December 31, 2005, 2004 and 2003
                  (Dollars in thousands except per share data)

<TABLE>
<CAPTION>
                                                        2005      2004      2003
                                                      -------   -------   -------
<S>                                                   <C>       <C>       <C>
Net loss                                              $(3,290)  $(1,662)  $(2,374)
Change in net unrealized gain (loss) on securities
   available for sale                                    (580)     (267)     (154)
Less: Reclassification adjustment for gains and
   (losses) later recognized in net income                 --       (55)       42
                                                      -------   -------   -------
Net unrealized loss                                      (580)     (212)     (196)
Initial unrealized gain on mortgage-backed
   securities received in securitization                  530        --        --
Unrealized gain on securities transferred from held
   to maturity to available for sale                       --        --       458
Tax effect                                                 17        72       (89)
                                                      -------   -------   -------
Other comprehensive income (loss)                         (33)     (140)      173
                                                      -------   -------   -------
Comprehensive loss                                    $(3,323)  $(1,802)  $(2,201)
                                                      =======   =======   =======
</TABLE>

                             See accompanying notes.


                                      -25-
<PAGE>

                          CENTRAL FEDERAL CORPORATION
           CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                  Years ended December 31, 2005, 2004 and 2003
                  (Dollars in thousands except per share data)

<TABLE>
<CAPTION>
                                                                                      Unearned   Unearned
                                                                                      Employee    Stock
                                                                       Accumulated     Stock      Based
                                                Additional                Other      Ownership  Incentive                Total
                                        Common    Paid-In   Retained  Comprehensive     Plan       Plan    Treasury  Shareholders'
                                         Stock    Capital   Earnings      Income       Shares     Shares     Stock       Equity
                                        ------  ----------  --------  -------------  ---------  ---------  --------  -------------
<S>                                     <C>     <C>         <C>       <C>            <C>        <C>        <C>       <C>
Balance at January 1, 2003                $19     $ 8,306    $14,085      $  28       $(1,425)    $(160)    $(3,270)    $17,583
Comprehensive loss:
Net loss                                                      (2,374)                                                    (2,374)
Other comprehensive income                                                  173                                             173
                                                                                                                        -------
   Total comprehensive loss                                                                                              (2,201)
Issuance of common stock in private
placement, net of offering costs of
   $64 (312,649 shares)                     3       3,116                                                                 3,119
Issuance of stock based incentive
   plan shares (28,500 shares)              1         337                                          (338)                     --
Sale of employee stock ownership plan
   shares at plan termination
   (81,000 shares)                                    125                                 748                               873
Final allocation of employee stock
   ownership plan shares at plan
   termination (41,882 shares)                        (39)                                677                               638
Release of 16,002 stock based
   incentive plan shares                                                                            141                     141
Stock options exercised (37,302
   shares)                                                       (72)                                           417         345
Tax benefits from stock options
   exercised                                                      47                                                         47
Cash dividends declared ($.36 per
   share)                                                       (689)                                                      (689)
                                          ---     -------    -------      -----       -------     -----     -------     -------
Balance at December 31, 2003               23      11,845     10,997        201            --      (357)     (2,853)     19,856
Comprehensive loss:
Net loss                                                      (1,662)                                                    (1,662)
Other comprehensive loss                                                   (140)                                           (140)
                                                                                                                        -------
   Total comprehensive loss                                                                                              (1,802)
Issuance of stock based incentive plan
   shares (20,703 shares)                             237                                          (237)                     --
Release of 21,278 stock based
   incentive plan shares                                                                            243                     243
Stock options exercised (44,900
   shares)                                                       (90)                                           502         412
Tax benefits from stock options
   exercised                                           48                                                                    48
Purchase of 25,000 shares of treasury
   stock                                                                                                       (319)       (319)
Issuance of 127,077 shares of treasury
   stock in acquisition                               389                                                     1,428       1,817
Cash dividends declared ($.36 per
   share)                                                       (748)                                                      (748)
                                          ---     -------    -------      -----       -------     -----     -------     -------
Balance at December 31, 2004               23      12,519      8,497         61            --      (351)     (1,242)     19,507
Comprehensive loss:
Net loss                                                      (3,290)                                                    (3,290)
Other comprehensive income                                                  (33)                                            (33)
                                                                                                                        -------
   Total comprehensive loss                                                                                              (3,323)
Issuance of stock based incentive plan
   shares (17,675 shares)                             178                                          (178)                     --
Release of 20,447 stock based
   incentive plan shares                                                                            240                     240
Tax benefits from stock based
   incentive plan shares released                      34                                                                    34
Stock options exercised (40,138
   shares)                                              2        (86)                                           459         375
Tax benefits from stock options
   exercised                                           54                                                                    54
Cash dividends declared ($.36 per
   share)                                                       (806)                                                      (806)
                                          ---     -------    -------      -----       -------    ------     -------     -------
Balance at December 31, 2005              $23     $12,787    $ 4,315      $  28       $    --    $ (289)    $  (783)    $16,081
                                          ===     =======    =======      =====       =======    ======     =======     =======

</TABLE>

                             See accompanying notes.


                                      -26-
<PAGE>

                           CENTRAL FEDERAL CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                  Years ended December 31, 2005, 2004 and 2003
                  (Dollars in thousands except per share data)

<TABLE>
<CAPTION>
                                                                  2005       2004       2003
                                                                --------   --------   --------
<S>                                                             <C>        <C>        <C>
Cash flows from operating activities
Net loss                                                        $ (3,290)  $ (1,662)  $ (2,374)
Adjustments to reconcile net loss to net cash
   provided by operating activities:
      Provision for loan losses                                      674        646        102
      Valuation (gain) loss on mortgage servicing rights               4        (36)        56
      Depreciation                                                   415        355        176
      Amortization, net                                               42        184         (5)
      Impairment loss on goodwill and intangibles                  1,966         --         --
      Net realized (gain) loss on sales of securities                 --         55        (42)
      Loss (gain) on disposal of premises and equipment                3         (3)        50
      Loss (gain) on sale of foreclosed assets                         9         13         --
      FHLB stock dividend                                           (186)      (152)      (141)
      SBIP expense                                                   240        243        141
      ESOP expense                                                    --         --        638
      Net change in:
         Loans held for sale                                        (178)       106       (106)
         Bank owned life insurance                                  (130)      (145)      (188)
         Loan sales proceeds receivable                             (353)      (589)        --
         Deferred tax assets                                        (470)      (589)    (1,083)
         Accrued interest receivable and other assets               (240)        86        (22)
         Accrued interest payable and other liabilities              107        (42)      (600)
                                                                --------   --------   --------
            Net cash from operating activities
                                                                  (1,387)    (1,530)    (3,398)
Cash flows from investing activities
   Net decrease in interest bearing deposits                          --      1,587      5,618
   Available-for-sale securities:
      Sales                                                        1,435     15,191      3,078
      Maturities, prepayments and calls                            4,580      5,114     28,968
      Purchases                                                   (5,037)    (7,081)   (46,914)
   Held-to-maturity securities:
      Maturities, prepayments and calls                               --         --      7,201
   Loan originations and payments, net                           (26,158)   (45,900)     4,434
   Loans purchased                                                (8,778)    (5,574)        --
   Proceeds from redemption of FHLB stock                          1,308         --         --
   Additions to premises and equipment                              (662)    (1,027)    (1,326)
   Proceeds from the sale of premises and equipment                   --          5         --
   Proceeds from the sale of foreclosed assets                       104        765         --
   Net cash used in acquisition                                       --       (236)        --
   Cash received in repayment of ESOP loan                            --         --        853
                                                                --------   --------   --------
      Net cash from investing activities                         (33,208)   (37,156)     1,912
Cash flows from financing activities
   Net change in deposits                                         25,950     28,266     (1,332)
   Net change in short-term borrowings from the Federal Home
      Loan Bank and other                                        (18,424)    22,417      7,500
   Proceeds from Federal Home Loan Bank advances and other
      debt                                                            --     12,270         --
   Repayments on Federal Home Loan Bank
      advances and other debt                                     (2,000)        --    (16,330)
   Net change in advances by borrowers for taxes and
      insurance                                                     (208)       114       (241)
   Proceeds from subordinated debentures                              --         --      5,155
   Cash dividends paid                                              (801)      (735)      (655)
   Proceeds from private placement                                    --         --      3,119
   Proceeds from exercise of stock options                           375        412        345
   Repurchase of common stock                                         --       (319)        --
                                                                --------   --------   --------
      Net cash from financing activities                           4,892     62,425     (2,439)
Net change in cash and cash equivalents                          (29,703)    23,739     (3,925)
Beginning cash and cash equivalents                               32,675      8,936     12,861
                                                                --------   --------   --------
Ending cash and cash equivalents                                $  2,972   $ 32,675   $  8,936
                                                                ========   ========   ========
Supplemental cash flow information:
   Interest paid                                                $  3,657   $  2,178   $  3,519
   Income taxes paid                                                  --         --        106
Supplemental noncash disclosures:
   Securitization of single-family residential mortgage loans   $ 18,497   $     --   $     --
   Transfers from loans to repossessed assets                         --        716        193
   Acquisition of Reserve Mortgage Services, Inc. through
      issuance of common stock                                        --      1,787         --
   Transfer of securities from held to maturity to available
      for sale                                                        --         --     10,533

</TABLE>

                            See accompanying notes.


                                      -27-

<PAGE>

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations and Principles of Consolidation: The consolidated financial
statements include Central Federal Corporation, its wholly-owned subsidiary,
CFBank, and Reserve Mortgage Services, Inc. (Reserve), a wholly owned subsidiary
of CFBank from October 22, 2004 through May 12, 2005 at which time it was merged
into CFBank, together referred to as "the Company". Intercompany transactions
and balances are eliminated in consolidation.

The Company provides financial services through its offices in Fairlawn,
Columbus, Wellsville and Calcutta, Ohio. Its primary deposit products are
checking, savings, and term certificate accounts, and its primary lending
products are residential mortgage, commercial, and installment loans.
Substantially all loans are secured by specific items of collateral including
business assets, consumer assets, and commercial and residential real estate.
Commercial loans are expected to be repaid from cash flow from operations of
businesses. There are no significant concentrations of loans to any one industry
or customer. However, the customers' ability to repay their loans is dependent
on the real estate and general economic conditions in the areas. Other financial
instruments which potentially represent concentrations of credit risk include
deposit accounts in other financial institutions.

Use of Estimates: To prepare financial statements in conformity with U.S.
generally accepted accounting principles, management makes estimates and
assumptions based on available information. These estimates and assumptions
affect the amounts reported in the financial statements and the disclosures
provided, and actual results could differ. The allowance for loan losses, loan
servicing rights and fair values of financial instruments are particularly
subject to change.

Cash Flows: Cash and cash equivalents include cash and deposits with other
financial institutions under 90 days. Net cash flows are reported for customer
loan and deposit transactions, interest-bearing deposits in other financial
institutions and borrowings with original maturities under 90 days.

Securities: Debt securities are classified as held to maturity and carried at
amortized cost when management has the positive intent and ability to hold them
to maturity. Debt securities are classified as available for sale when they
might be sold before maturity. Equity securities with readily determinable fair
values are classified as available for sale. Securities available for sale are
carried at fair value, with unrealized holding gains and losses reported in
other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums
and discounts on securities are amortized on the level-yield method without
anticipating prepayments, except for mortgage-backed securities where
prepayments are anticipated. Gains and losses on sales are recorded on the trade
date and determined using the specific identification method.


                                      -28-

<PAGE>

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Declines in the fair value of securities below their cost that are other than
temporary are reflected as realized losses. In estimating other-than-temporary
losses, management considers: (1) the length of time and extent that fair value
has been less than cost, (2) the financial condition and near term prospects of
the issuer, and (3) the Company's ability and intent to hold the security for a
period sufficient to allow for any anticipated recovery in fair value.

Loans Held for Sale: Mortgage loans originated and intended for sale in the
secondary market are carried at the lower of aggregate cost or market, as
determined by outstanding commitments from investors. Net unrealized losses, if
any, are recorded as a valuation allowance and charged to earnings.

Mortgage loans held for sale after 2003 are generally sold with servicing rights
released. Mortgage loans held for sale prior to 2004 were generally sold with
servicing rights retained and the carrying value of mortgage loans sold was
reduced by the cost allocated to the servicing right. Gains and losses on sales
of mortgage loans are based on the difference between the selling price and the
carrying value of the related loan sold.

Loans: Loans that management has the intent and ability to hold for the
foreseeable future or until maturity or payoff are reported at the principal
balance outstanding, net of unearned interest, deferred loan fees and costs, and
an allowance for loan losses. Interest income is accrued on the unpaid principal
balance. Loan origination fees, net of certain direct origination costs, are
deferred and recognized in interest income using the level-yield method without
anticipating prepayments.

Interest income on mortgage and commercial loans is discontinued at the time the
loan is 90 days delinquent unless the loan is well-secured and in process of
collection. Consumer and credit card loans are typically charged-off no later
than 90 days past due. Past due status is based on the contractual terms of the
loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier
date if collection of principal or interest is considered doubtful.

All interest accrued but not received for loans placed on nonaccrual is reversed
against interest income. Interest received on such loans is accounted for on the
cash-basis or cost-recovery method, until qualifying for return to accrual.
Loans are returned to accrual status when all the principal and interest amounts
contractually due are brought current and future payments are reasonably
assured.

Acquired Loans: Allowances for all acquired loans subject to Statement of
Position (SOP) 03-3 reflect only those losses incurred after acquisition - that
is, the present value of cash flows expected at acquisition that are not
expected to be collected.

The Company acquires loans individually and in groups or portfolios. At
acquisition, the Company reviews each loan to determine whether there is
evidence of deterioration of credit quality since origination and if it is
probable that it will be unable to collect all amounts due according to the
loan's contractual terms. If both conditions exist, the Company determines


                                      -29-

<PAGE>

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

whether each such loan is to be accounted for individually or whether such loans
will be assembled into pools of loans based on common risk characteristics
(credit score, loan type, and date of origination). The Company considers
expected prepayments, and estimates the amount and timing of undiscounted
expected principal, interest, and other cash flows (expected at acquisition) for
each loan and subsequently aggregated pool of loans. The Company determines the
excess of the loan's or pool's scheduled contractual principal and contractual
interest payments over all cash flows expected at acquisition as an amount that
should not be accreted (nonaccretable difference). The remaining
amount--representing the excess of the loan's cash flows expected to be
collected over the amount paid--is accreted into interest income over the
remaining life of the loan or pool (accretable yield).

Over the life of the loan or pool, the Company continues to estimate cash flows
expected to be collected, and evaluates whether the present value of its loans
determined using the effective interest rates has decreased and if so,
recognizes a loss. The present value of any subsequent increase in the loan's or
pool's actual cash flows or cash flows expected to be collected is used first to
reverse any existing valuation allowance for that loan or pool. For any
remaining increases in cash flows expected to be collected, the Company adjusts
the amount of accretable yield recognized on a prospective basis over the loan's
or pool's remaining life.

Allowance for Loan Losses: The allowance for loan losses is a valuation
allowance for probable incurred credit losses. Loan losses are charged against
the allowance when management believes the uncollectibility of a loan balance is
confirmed. Subsequent recoveries, if any, are credited to the allowance.
Management estimates the allowance balance required using past loan loss
experience, the nature and volume of the portfolio, information about specific
borrower situations and estimated collateral values, economic conditions, and
other factors. Allocations of the allowance may be made for specific loans, but
the entire allowance is available for any loan that, in management's judgment,
should be charged-off.

The allowance consists of specific and general components. The specific
component relates to loans that are individually classified as impaired or loans
otherwise classified as substandard or doubtful. The general component covers
non-classified loans and is based on historical loss experience adjusted for
current factors.

A loan is impaired when full payment under the loan terms is not expected.
Commercial, multi-family residential and commercial real estate loans are
individually evaluated for impairment. If a loan is impaired, a portion of the
allowance is allocated so that the loan is reported, net, at the present value
of estimated future cash flows using the loan's existing rate or at the fair
value of collateral if repayment is expected solely from the collateral. Large
groups of smaller balance loans, such as consumer and single-family residential
real estate loans, are collectively evaluated for impairment, and accordingly,
they are not separately identified for impairment disclosures.


                                      -30-

<PAGE>

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Servicing Rights: Servicing rights represent the allocated value of retained
servicing rights on loans sold. Servicing assets are expensed in proportion to,
and over the period of, estimated net servicing revenues. Impairment is
evaluated based on the fair value of the assets, using groupings of the
underlying loans as to interest rates and then, secondarily, as to loan type and
investor. Fair value is determined using prices for similar assets with similar
characteristics, when available, or based upon discounted cash flows using
market-based assumptions. Any impairment of a grouping is reported as a
valuation allowance, to the extent that fair value is less than the capitalized
amount for a grouping.

Transfers of Financial Assets: Transfers of financial assets are accounted for
as sales when control over the assets has been surrendered. Control over
transferred assets is deemed to be surrendered when (1) the assets have been
isolated from the Company, (2) the transferee obtains the right (free of
conditions that constrain it from taking advantage of that right) to pledge or
exchange the transferred assets, and (3) the Company does not maintain effective
control over the transferred assets through an agreement to repurchase them
before their maturity.

Foreclosed Assets: Assets acquired through or instead of loan foreclosure are
initially recorded at fair value when acquired, establishing a new cost basis.
If fair value declines subsequent to foreclosure, a valuation allowance is
recorded through expense. Costs after acquisition are expensed.

Premises and Equipment: Land is carried at cost. Premises and equipment are
stated at cost less accumulated depreciation. Buildings and related components
are depreciated using the straight-line method with useful lives ranging from 7
to 40 years. Furniture, fixtures and equipment are depreciated using the
straight-line method with useful lives ranging from 3 to 25 years. Leasehold
improvements are amortized over the lives of the respective leases.

Federal Home Loan Bank (FHLB) stock: The Bank is a member of the FHLB system.
Members are required to own a certain amount of stock based on the level of
borrowings and other factors, and may invest in additional amounts. FHLB stock
is carried at cost, classified as a restricted security, and periodically
evaluated for impairment. Because this stock is viewed as long term investment,
impairment is based on ultimate recovery of par value. Both cash and stock
dividends are reported as income.

Bank Owned Life Insurance: The Company has purchased life insurance policies on
certain directors and employees. Bank owned life insurance is recorded at its
cash surrender value, or the amount that can be realized.

Goodwill and Other Intangible Assets: Goodwill results from business
acquisitions and represents the excess of the purchase price over the fair value
of acquired tangible assets and liabilities and identifiable intangible assets.
Goodwill is assessed at least annually for impairment, or more frequently if
events or circumstances indicate the asset might be impaired, and any such
impairment is recognized in the period identified. See Note 8 - Goodwill and
Intangible Assets for information regarding the impairment loss recognized in
2005.


                                      -31-

<PAGE>

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Other intangible assets consist of a noncompete agreement and prior owner
intangible assets arising from the acquisition of Reserve. They are initially
measured at fair value and then are amortized on the straight-line method over
their estimated useful lives.

Long-term Assets: Premises and equipment, other intangible assets, and other
long-term assets are reviewed for impairment when events indicate their carrying
amount may not be recoverable from future undiscounted cash flows. If impaired,
the assets are recorded at fair value. See Note 8 - Goodwill and Intangible
Assets for information regarding the impairment loss recognized in 2005.

Loan Commitments and Related Financial Instruments: Financial instruments
include off-balance-sheet credit instruments, such as commitments to make loans
and commercial letters of credit, issued to meet customer financing needs. The
face amount for these items represents the exposure to loss, before considering
customer collateral or ability to repay. Such financial instruments are recorded
when they are funded.

Stock Compensation: Employee compensation expense under stock options is
reported using the intrinsic value method. No stock-based compensation cost is
reflected in net income, as all options granted had an exercise price equal to
or greater than the market price of the underlying common stock at date of
grant. The following table illustrates the effect on net income and earnings per
share if expense was measured using the fair value recognition provisions of
Statement of Financial Accounting Standards (SFAS) No. 123, Accounting for
Stock-Based Compensation.

<TABLE>
<CAPTION>
                                                2005      2004      2003
                                              -------   -------   -------
<S>                                           <C>       <C>       <C>
Net loss as reported                          $(3,290)  $(1,662)  $(2,374)
Deduct: Stock-based compensation expense
   determined under fair value based method       404       183       175
                                              -------   -------   -------
Pro forma net loss                            $(3,694)  $(1,845)  $(2,549)
                                              =======   =======   =======
Basic loss per share as reported              $ (1.49)  $ (0.82)  $ (1.31)
Pro forma basic loss per share                  (1.68)    (0.91)    (1.40)
Diluted loss per share as reported            $ (1.49)  $ (0.82)  $ (1.31)
Pro forma diluted loss per share                (1.68)    (0.91)    (1.40)
</TABLE>

The pro forma effects are computed using option pricing models, using the
following weighted- average assumptions as of grant date.

<TABLE>
<CAPTION>
                                                  2005          2004          2003
                                                 -----         -----         -----
<S>                                              <C>           <C>           <C>
Risk-free interest rate                           3.85%         3.26%         2.96%

Expected option life (years)                       6.0 years     6.0 years     5.9 years
Expected stock price volatility                     27%           24%           44%
Dividend yield                                    3.46%         2.86%         3.13%
Weighted average fair value of options granted
during year                                      $2.27         $2.53         $3.96
</TABLE>


                                      -32-

<PAGE>

On June 23, 2005, the Board of Directors approved the accelerated vesting of all
unvested stock options awarded prior to 2005 to eligible participants under the
1999 Stock Based Incentive Plan and the 2003 Equity Compensation Plan. As a
result of the acceleration, unvested options granted in 2003 and 2004 to acquire
102,000 shares of the Company's common stock, which otherwise would have vested
on various dates thru January 16, 2008, became immediately exercisable. All
other terms and conditions applicable to options granted under these plans,
including the exercise prices and the number of shares subject to the
accelerated options, are unchanged. No compensation expense was recognized from
the accelerated vesting of the stock options.

The decision to accelerate the vesting of these options was related to the
issuance of Statement of Financial Accounting Standard No. 123 (revised 2004),
Share Based Payment (SFAS 123R). In accordance with the provisions of SFAS 123R,
the Company adopted the pronouncement on January 1, 2006 and believes the
above-mentioned acceleration of vesting will eliminate compensation expense
related to these options of approximately $115 and $33 in 2006 and 2007. The
total expense is reflected in the pro forma footnote disclosure above, as
permitted under the transition guidance provided by the Financial Accounting
Standards Board. As a result of the acceleration of the vesting of these
options, the Company has no unvested options at January 1, 2006. Future option
grants will be accounted for in accordance with SFAS 123R.

Income Taxes: Income tax expense is the total of the current year income tax due
or refundable and the change in deferred tax assets and liabilities. Deferred
tax assets and liabilities are the expected future tax amounts for the temporary
differences between carrying amounts and tax bases of assets and liabilities,
computed using enacted tax rates. A valuation allowance, if needed, reduces
deferred tax assets to the amount expected to be realized. Deferred tax assets
are recognized for net operating losses that expire primarily in 2023, 2024 and
2025 because the benefit is more likely than not to be realized.

Retirement Plans: Pension expense is the net of service and interest cost,
return on plan assets and amortization of gains and losses not immediately
recognized. Supplemental executive retirement plan expense allocates the
benefits over years of service.

Employee Stock Ownership Plan: The cost of shares issued to the ESOP, but not
yet allocated to participants, is shown as a reduction of shareholders' equity.
Compensation expense is based on the market price of shares as they are
committed to be released to participant accounts. Dividends on allocated ESOP
shares reduce retained earnings; dividends on unearned ESOP shares reduce debt
and accrued interest. See Note 14 - ESOP Plan for information regarding
termination of this plan in 2003.


                                      -33-
<PAGE>

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Earnings Per Common Share: Basic earnings per common share is net income divided
by the weighted average number of common shares outstanding during the period.
ESOP shares are considered outstanding for this calculation unless unearned.
Stock based incentive plan shares are considered outstanding as they are earned
over the vesting period. Diluted earnings per common share includes the dilutive
effect of stock based incentive plan shares and additional potential common
shares issuable under stock options.

Comprehensive Income (Loss): Comprehensive income (loss) consists of net income
(loss) and other comprehensive income (loss). Other comprehensive income (loss)
includes unrealized gains and losses on securities available for sale, which are
also recognized as a separate component of equity.

Loss Contingencies: Loss contingencies, including claims and legal actions
arising in the ordinary course of business, are recorded as liabilities when the
likelihood of loss is probable and an amount or range of loss can be reasonably
estimated. Management does not believe there now are such matters that will have
a material effect on the financial statements. See Note 25 - Arbitration for
information regarding a request for arbitration filed against CFBank by the
former President of Reserve.

Restrictions on Cash: Cash on hand or on deposit with the Federal Reserve Bank
of $624 and $459 was required to meet regulatory reserve and clearing
requirements at year-end 2005 and 2004. These balances do not earn interest.

Dividend Restriction: Banking regulations require maintaining certain capital
levels and may limit the dividends paid by the bank to the holding company or by
the holding company to shareholders.

Fair Value of Financial Instruments: Fair values of financial instruments are
estimated using relevant market information and other assumptions, as more fully
disclosed in a separate note. Fair value estimates involve uncertainties and
matters of significant judgment regarding interest rates, credit risk,
prepayments, and other factors, especially in the absence of broad markets for
particular items. Changes in assumptions or in market conditions could
significantly affect the estimates.

Operating Segments: Beginning in 2005, internal financial information is
primarily reported and aggregated in two lines of business, banking and mortgage
banking. Prior to 2005, while the chief decision-makers monitored the revenue
streams of the various products and services, the identifiable segments were not
material and operations were managed and financial performance was evaluated on
a Company-wide basis. Accordingly, all of the financial service operations were
considered by management to be aggregated in one reportable operating segment.

Reclassifications: Some items in the prior year financial statements were
reclassified to conform to the current presentation.


                                      -34-

<PAGE>

NOTE 2 - SUBSEQUENT EVENT (UNAUDITED)

In January 2006, the Company successfully completed the offering of 2.3 million
shares of common stock at a purchase price of $7.00 per share raising additional
capital of approximately $14.5 million after offering expenses and underwriting
commissions. The proceeds from this offering provide the Company with a larger
capital base to take advantage of opportunities to execute its growth strategy
and will be used for general corporate purposes. In January 2006, the holding
company contributed $10.4 million in capital to CFBank from the proceeds of this
offering. See Note 18 - Capital Requirements and Restrictions on Retained
Earnings for information regarding CFBank's capital levels.

NOTE 3 - SECURITIES

The fair value of available for sale securities and the related gross unrealized
gains and losses recognized in accumulated other comprehensive income (loss)
were as follows:

<TABLE>
<CAPTION>
                                      Gross        Gross
                           Fair    Unrealized   Unrealized
                          Value       Gains       Losses
                         -------   ----------   ----------
<S>                      <C>       <C>          <C>
2005
   Federal agency        $ 5,838      $ --        $(169)
   State and municipal     1,987        --          (33)
   Mortgage-backed        23,047       405         (161)
                         -------      ----        -----
      Total              $30,872      $405        $(363)
                         =======      ====        =====
2004
   Federal agency        $ 4,983      $  2        $ (37)
   Mortgage-backed         8,525       195          (68)
                         -------      ----        -----
      Total              $13,508      $197        $(105)
                         =======      ====        =====
</TABLE>


                                      -35-

<PAGE>

NOTE 3 - SECURITIES (continued)

Sales of available for sale securities were as follows:

<TABLE>
<CAPTION>
                2005      2004     2003
               ------   -------   ------
<S>            <C>      <C>       <C>
Proceeds       $1,435   $15,191   $3,078
Gross gains        --        41       42
Gross losses       --       (96)      --
</TABLE>

The tax (benefit) provision related to these net realized gains and losses was
($19) and $14, for the years ended 2004 and 2003, respectively.

The fair value of debt securities at year-end 2005 by contractual maturity were
as follows. Securities not due at a single maturity date, primarily
mortgage-backed securities, are shown separately.

<TABLE>
<CAPTION>
                             Available
                              for Sale
                                Fair
                               Value
                             ---------
<S>                          <C>
Due from one to five years    $ 6,833
Due from five to ten years        992
Mortgage-backed                23,047
                              -------
   Total                      $30,872
                              =======
</TABLE>

Securities at year-end 2005 and 2004 with a carrying amount of $15,689 and $770
were pledged to secure Federal Home Loan Bank advances. At year-end 2005 and
2004, there were no holdings of securities of any one issuer, other than federal
agencies, in an amount greater than 10% of shareholders' equity.

Securities with unrealized losses at year-end 2005 and 2004, aggregated by
investment category and length of time that individual securities have been in a
continuous unrealized loss position, are as follows:

<TABLE>
<CAPTION>
                               Less than 12 Months        12 Months or More               Total
                             -----------------------   -----------------------   -----------------------
2005                                      Unrealized                Unrealized                Unrealized
Description of Securities    Fair Value      Loss      Fair Value      Loss      Fair Value      Loss
- --------------------------   ----------   ----------   ----------   ----------   ----------   ----------
<S>                          <C>          <C>          <C>          <C>          <C>          <C>
Federal agency                 $1,955       $ (42)       $3,883       $(127)       $ 5,838      $(169)
State and municipal             1,987         (33)           --          --          1,987        (33)
Mortgage-backed                 5,953         (79)        1,907         (82)         7,860       (161)
                               ------       -----        ------       -----        -------      -----
Total temporarily impaired     $9,895       $(154)       $5,790       $(209)       $15,685      $(363)
                               ======       =====        ======       =====        =======      =====
</TABLE>


                                      -36-

<PAGE>

NOTE 3 - SECURITIES (continued)

<TABLE>
<CAPTION>
                               Less than 12 Months        12 Months or More               Total
                             -----------------------   -----------------------   -----------------------
2004                                      Unrealized                Unrealized                Unrealized
Description of Securities    Fair Value      Loss      Fair Value      Loss      Fair Value      Loss
- --------------------------   ----------   ----------   ----------   ----------   ----------   ----------
<S>                          <C>          <C>          <C>          <C>          <C>          <C>
Federal agency                 $3,976        $(37)       $   --        $ --        $3,976       $ (37)
Mortgage-backed                   700          (1)        2,476         (67)        3,176         (68)
                               ------        ----        ------        ----        ------       -----
Total temporarily impaired     $4,676        $(38)       $2,476        $(67)       $7,152       $(105)
                               ======        ====        ======        ====        ======       =====
</TABLE>

     Unrealized losses on the above federal agency and mortgage-backed
     securities have not been recognized in income because the issuers of the
     bonds are all federal agencies and the decline in fair value is temporary
     and largely due to changes in market interest rates. The fair value is
     expected to recover as the bonds approach their maturity date and/or market
     rates decline.

     Unrealized losses on state and municipal bonds have not been recognized in
     income because the bonds are of high credit quality (rated AAA), management
     has the intent and ability to hold for the foreseeable future and the
     decline in fair value is largely due to changes in interest rates. The fair
     value is expected to recover as the bonds approach maturity.

NOTE 4 - LOANS

Loans at year-end were as follows:

<TABLE>
<CAPTION>
                                    2005       2004
                                  --------   --------
<S>                               <C>        <C>
Commercial                        $ 16,347   $  7,030
Real estate:
   Single-family residential        23,627     41,450
   Multi-family residential         30,206     25,602
   Commercial                       25,937     20,105
   Construction                         --      1,127
Consumer                            29,540     13,952
                                  --------   --------
      Subtotal                     125,657    109,266
Less: Net deferred loan fees          (136)      (139)
      Allowance for loan losses     (1,495)      (978)
                                  --------   --------
Loans, net                        $124,026   $108,149
                                  ========   ========
</TABLE>


                                      -37-
<PAGE>

NOTE 4 - LOANS (continued)

Activity in the allowance for loan losses was as follows:

<TABLE>
<CAPTION>
                             2005     2004   2003
                            ------   -----   ----
<S>                         <C>      <C>     <C>
Beginning balance           $  978   $ 415   $361
Provision for loan losses      674     646    102
Loans charged-off             (255)   (117)   (50)
Recoveries                      98      34      2
                            ------   -----   ----
Ending balance              $1,495   $ 978   $415
                            ======   =====   ====
</TABLE>

Impaired loans are not material for any period presented.

Nonperforming loans were as follows:

<TABLE>
<CAPTION>
                                               2005   2004
                                               ----   ----
<S>                                            <C>    <C>
Loans past due over 90 days still on accrual   $ --   $ --
Nonaccrual loans                                800    286
</TABLE>

Nonperforming loans include both smaller balance single-family mortgage and
consumer loans that are collectively evaluated for impairment and individually
classified impaired loans. There were no nonperforming commercial, commercial
real estate or multi-family loans at year-end 2005 or 2004.


                                      -38-

<PAGE>

NOTE 5 - LOAN SERVICING

Mortgage loans serviced for others are not reported as assets. The principal
balances of these loans were $37,790 and $27,319 at year-end 2005 and 2004.

Custodial escrow balances maintained in connection with serviced loans were $482
and $282 at year-end 2005 and 2004.

Activity for capitalized mortgage servicing rights and the related valuation
allowance follows:

<TABLE>
<CAPTION>
                                                2005   2004    2003
                                                ----   ----   -----
<S>                                             <C>    <C>    <C>
Servicing rights, net of valuation allowance:
Beginning of period                             $208   $221   $ 200
Additions                                        120      3     195
Amortized to expense                             (74)   (52)   (118)
Provision for loss in fair value                  (4)    36     (56)
                                                ----   ----   -----
End of period                                   $250   $208   $ 221
                                                ====   ====   =====
Valuation allowance:
Beginning of period                             $ 20   $ 56   $  --
Additions expensed                                 4     --      56
Reductions credited to expense                    --    (36)     --
                                                ----   ----   -----
End of period                                   $ 24   $ 20   $  56
                                                ====   ====   =====
</TABLE>

The fair value of capitalized mortgage servicing rights was $314 and $213 at
year-end 2005 and 2004. Fair value was determined using a 10% discount rate and
prepayment speeds ranging from 128% to 800%, depending on the stratification of
the specific right.

The weighted average amortization period is 4.8 years. Estimated amortization
expense for each of the next five years:

<TABLE>
<S>    <C>
2006   $63
2007    61
2008    59
2009    55
2010    36
</TABLE>


                                      -39-

<PAGE>

NOTE 6 - SECURITIZATION

On June 30, 2005, the Company securitized single-family residential mortgage
loans with an outstanding principal balance of $18.6 million, formerly held in
its portfolio, with Freddie Mac. The Company continues to hold the securities
and service the loans. The Company receives annual servicing fees of 0.25
percent of the outstanding balance and recorded a servicing asset related to
this transaction of $120. Since the Company cannot de-securitize the securities
to get back the loans, the securitization is not considered a sale or transfer
under SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets
and Extinguishments of Liabilities, but an exchange of loans for securities
under SFAS No. 134, Accounting for Mortgage-Backed Securities Retained after the
Securitization of Mortgage Loans Held for Sale by a Mortgage Banking Enterprise
and SFAS No. 115, Accounting for Certain Investments in Debt and Equity
Securities because the Company received the beneficial interest in the loans it
transferred to Freddie Mac. As such, the mortgage-backed securities were
recorded at the cost of the loans and were classified as "available for sale"
with a $530,000 initial unrealized gain reported in other comprehensive income.

NOTE 7 - PREMISES AND EQUIPMENT

Year-end premises and equipment were as follows:

<TABLE>
<CAPTION>
                                      2005      2004
                                    -------   -------
<S>                                 <C>       <C>
Land and land improvements          $   127   $   127
Buildings                             1,880     1,880
Furniture, fixtures and equipment     2,514     2,020
Leasehold improvements                  484       325
                                    -------   -------
                                      5,005     4,352
Less: accumulated depreciation       (2,071)   (1,662)
                                    -------   -------
                                    $ 2,934   $ 2,690
                                    =======   =======
</TABLE>

The Company leases certain office properties. Rent expense was $351, $209, and
$14 for 2005, 2004 and 2003. Rent commitments under noncancelable operating
leases were as follows, before considering renewal options that generally are
present.

<TABLE>
<S>          <C>
2006         $  282
2007            261
2008            248
2009            207
2010            154
Thereafter      521
             ------
Total        $1,673
             ======
</TABLE>


                                      -40-
<PAGE>

NOTE 7 - PREMISES AND EQUIPMENT (continued)

The Company is a one-third owner of a limited liability company that owns and
manages the office building at 2923 Smith Road, Fairlawn, Ohio 44333 where the
Company's headquarters and CFBank's Fairlawn office are located. The Company
entered into a 10 year lease with the limited liability company in March 2004
that calls for monthly payments of $11, increasing 3% annually for the life of
the lease through February 2014. Total rent expense under this operating lease,
including common area maintenance costs per the lease agreement, was $171 and
$114 in 2005 and 2004.

The former President of Reserve is a 100% owner of a company that owns and
manages the office building at 1730 Akron-Peninsula Road, Akron, Ohio 44313
where CFBank's mortgage services office is located. Lease agreements are for 5
year terms expiring at various times from May 2007 through December 2009, and
call for monthly rental payments of $7, increasing 3% annually for the lives of
the respective leases. Total rent expense was $86 and $8 in 2005 and 2004.

NOTE 8 - GOODWILL AND INTANGIBLE ASSETS

GOODWILL

<TABLE>
<CAPTION>
                        2005     2004
                      -------   ------
<S>                   <C>       <C>
Beginning of period   $ 1,749   $   --
Acquired goodwill          --    1,749
Impairment             (1,749)      --
                      -------   ------
End of period         $    --   $1,749
                      =======   ======
</TABLE>

Goodwill was related to the October 2004 acquisition of Reserve Mortgage
Services, Inc., the Company's mortgage services division. The acquisition of
Reserve was expected to be immediately accretive to earnings. Unfortunately, the
Reserve operation experienced losses rather than the expected profits.
Management does not believe that volumes will achieve a sufficient level to
support the recorded goodwill and, as a result, a goodwill impairment loss of
$1,749 was recorded in the quarter ended September 30, 2005. The fair value of
the mortgage services segment was estimated using the expected present value of
future cash flows in determining the impairment loss.


                                      -41-

<PAGE>

NOTE 8 - GOODWILL AND INTANGIBLE ASSETS (continued)

ACQUIRED INTANGIBLE ASSETS

Acquired intangible assets were as follows as of year end:

<TABLE>
<CAPTION>
                                         2005                      2004
                               -----------------------   -----------------------
                                 Gross                    Gross
                               Carrying    Accumulated   Carrying    Accumulated
                                Amount    Amortization    Amount    Amortization
                               --------   ------------   --------   ------------
<S>                            <C>        <C>            <C>        <C>
Amortized intangible assets:
   Noncompete agreement           $--          $--         $ 25          $ 4
   Prior owner intangible          --           --          295           17
                                  ---          ---         ----          ---
Total                             $--          $--         $320          $21
                                  ===          ===         ====          ===
</TABLE>

Aggregate amortization expense was $82 and $21 for 2005 and 2004. There was no
amortization expense in 2003 as the assets were acquired in the Company's
purchase of Reserve Mortgage Services, Inc. in October 2004.

In association with the goodwill impairment loss discussed above, it was
determined that the carrying amount of other intangible assets was not
recoverable and exceeded the fair value. An impairment loss of $217, the
unamortized balance of other intangible assets, was recorded in the quarter
ended September 30, 2005.

NOTE 9 - DEPOSITS

Time deposits of $100 or more were $25,802 and $11,259 at year-end 2005 and
2004.

Scheduled maturities of time deposits for the next five years were as follows.

<TABLE>
<S>                 <C>
December 31, 2006   $47,977
December 31, 2007    15,463
December 31, 2008     1,592
December 31, 2009     3,037
December 31, 2010       558
                    -------
                    $68,627
                    =======
</TABLE>

Time deposits included $13,024 and $6,117 in brokered deposits at year-end 2005
and 2004.


                                      -42-

<PAGE>

NOTE 10 - FEDERAL HOME LOAN BANK ADVANCES

At year-end, advances from the Federal Home Loan Bank were as follows:

<TABLE>
<CAPTION>
                                                           2005      2004
                                                         -------   -------
<S>                                                      <C>       <C>
Maturity January 2006 at 4.33% floating rate             $12,725   $    --
Maturity January 2005 at 2.20% floating rate                  --    28,900
Maturities March 2006 through September 2008,
   fixed at rates from 2.03% to 3.41%, averaging 2.91%    10,270        --
Maturities March 2005 through September 2008,
   fixed at rates from 1.50% to 3.41%, averaging 2.70%        --    12,270
                                                         -------   -------
Total                                                    $22,995   $41,170
                                                         =======   =======
</TABLE>

The fixed rate advances are due in full at their maturity date, with a penalty
if prepaid. Floating rate advances at year-end 2005 can be prepaid at any time
with no penalty.

In December 2003, the Company prepaid $11,195 in Federal Home Loan Bank
advances, with an average cost of 5.52% and an average remaining maturity of 4.5
years. These fixed-rate advances were originated primarily in 1998 and 1999 and
were used to finance mortgage loans which had prepaid. Accordingly, the loans
represented a costly source of funding which was not necessary due to the
liquidity position of the Company. The pre-tax prepayment penalty associated
with this transaction was $1,270 and is included in interest expense on Federal
Home Loan Bank advances and other debt in the 2003 Consolidated Statement of
Operations.

The advances were collateralized as follows:

<TABLE>
<CAPTION>
                                                          2005      2004
                                                        -------   -------
<S>                                                     <C>       <C>
First mortgage loans under a blanket lien arrangement   $23,308   $41,269
Second mortgages                                            783       695
Multi-family mortgage loans                               8,885    10,372
Home equity lines of credit                               9,109     3,236
Commercial real estate loans                             18,014    14,964
Securities                                               15,689       770
                                                        -------   -------
Total                                                   $75,788   $71,306
                                                        =======   =======
</TABLE>

Based on this collateral and the Company's holdings of FHLB stock, the Company
is eligible to borrow up to $45,744 at year-end 2005.

Payment information

Required payments over the next five years are:

<TABLE>
<S>     <C>
2006    $16,725
2007      4,270
2008      2,000
        -------
Total   $22,995
        =======
</TABLE>


                                      -43-
<PAGE>

NOTE 11 - OTHER BORROWINGS

The Company had a revolving line of credit with an unaffiliated bank, acquired
in the Reserve acquisition, which provided financing up to $3,000. The line of
credit matured on June 30, 2005 and was not renewed. Interest on the outstanding
balance was payable monthly at the prime rate plus .25%. The line of credit was
collateralized by loan sales proceeds receivable. The interest rate was 5.5% and
the outstanding balance was $2,238 at year-end 2004.

The Company had a term note payable to an unaffiliated bank, acquired in the
Reserve acquisition, payable in monthly installments of principal and interest
of $1. Interest on the note was at the prime rate plus .50%. The note was
collateralized by equipment and accounts receivable of Reserve and was repaid in
January 2005. The interest rate was 5.75% and the outstanding balance was $11 at
year-end 2004.

NOTE 12 - SUBORDINATED DEBENTURES

In December 2003, Central Federal Capital Trust I, a trust formed by the
Company, closed a pooled private offering of 5,000 trust preferred securities
with a liquidation amount of $1 per security. The Company issued $5,155 of
subordinated debentures to the trust in exchange for ownership of all of the
common security of the trust and the proceeds of the preferred securities sold
by the trust. The Company may redeem the subordinated debentures, in whole or in
part, in a principal amount with integral multiples of $1, on or after December
30, 2008 at 100% of the principal amount, plus accrued and unpaid interest. The
subordinated debentures mature on December 30, 2033. The subordinated debentures
are also redeemable in whole or in part from time to time, upon the occurrence
of specific events defined within the trust indenture. The Company has the
option to defer interest payments on the subordinated debentures from time to
time for a period not to exceed five consecutive years. There are no required
payments on the subordinated debentures over the next 5 years.

The trust preferred securities and subordinated debentures have a variable rate
of interest, reset quarterly, equal to the sum of the three month London
Interbank Offered Rate (LIBOR) and 2.85%, which was 6.87% at year-end 2005. The
Company's investment in the common stock of the trust was $155 and is included
in other assets.

NOTE 13 - BENEFIT PLANS

Multi-employer pension plan: The Company participates in a multi-employer
contributory trusteed pension plan. The retirement benefits to be provided by
the plan were frozen as of June 30, 2003 and future employee participation in
the plan was stopped. The plan was maintained for all eligible employees and the
benefits were funded as accrued. The cost of funding was charged directly to
operations. The unfunded liability at June 30, 2005 totaled $268. The Company's
contribution for the plan years ending June 30, 2006, June 30, 2005 and June 30,
2004, totaled $90, $66 and $34.


                                      -44-

<PAGE>

NOTE 13 - BENEFIT PLANS (continued)

401(k) Plan: In 2003, the Company instituted a 401(k) benefit plan. Employees 21
years of age and older are eligible to participate and are eligible for Company
matching contributions after one year of service. The plan allows employee
contributions up to 90% of their compensation, which may be matched by the
Company on a discretionary basis. There was no match in 2005, 2004 or 2003.

Salary Continuation Agreement: In 2004, the Company initiated a nonqualified
salary continuation agreement for the Vice-Chairman of the Company. Benefits
provided under the plan are unfunded, and payments will be made the by Company.
Under the plan, the Company pays him, or his beneficiary, a benefit of $25
annually for 20 years, beginning the earlier of March 2008 or termination of his
employment. The expense related to this plan totaled $68 and $38 in 2005 and
2004. The accrual is included in accrued interest payable and other liabilities
in the consolidated balance sheets and totaled $106 and $38 at year-end 2005 and
2004.

Life Insurance Benefits: The Company entered into agreements with certain
employees, former employees and directors to provide life insurance benefits
which are funded through life insurance policies purchased and owned by the
Company. The expense related to these benefits totaled $11 and $101 in 2005 and
2004. The accrual is included in accrued interest payable and other liabilities
in the consolidated balance sheets and totaled $112 and $101 at year-end 2005
and 2004.

NOTE 14 - ESOP PLAN

Until the plan was terminated in 2003, employees participated in an Employee
Stock Ownership Plan (ESOP). The ESOP borrowed from the Company to purchase
155,111 shares of stock at $10 per share. The Company made discretionary
contributions to the ESOP, and paid dividends on unallocated shares to the ESOP,
and the ESOP used funds it received to repay the loan. When loan payments were
made, ESOP shares were allocated to participants based on relative compensation
and expense was recorded. Dividends on allocated shares increased participant
accounts.

The ESOP received $738 from a return of capital distribution paid by the Company
in 2000 and purchased an additional 83,353 shares with the proceeds.

At the time of termination, there were 122,882 unearned ESOP shares of which
81,000 shares were sold and the proceeds were used to repay the outstanding
balance of the loan incurred to fund the ESOP plan at inception. The remaining
41,882 shares were allocated to participants on a fully vested basis. The cost
associated with terminating the ESOP totaled $638 and is included in salaries
and employee benefits expense in the 2003 Consolidated Statement of Operations.

There was no contribution to the ESOP in 2003. Expense for 2003 was $638.


                                      -45-

<PAGE>

NOTE 15 - INCOME TAXES

Income tax expense (benefit) was as follows.

<TABLE>
<CAPTION>
                    2005    2004     2003
                   -----   -----   -------
<S>                <C>     <C>     <C>
Current federal    $  93   $(283)  $    95
Deferred federal    (470)   (589)   (1,083)
                   -----   -----   -------
Total              $(377)  $(872)  $  (988)
                   =====   =====   =======
</TABLE>

Effective tax rates differ from federal statutory rate of 34% applied to loss
before income taxes due to the following.

<TABLE>
<CAPTION>
                                                     2005     2004     2003
                                                   -------   -----   -------
<S>                                                <C>       <C>     <C>
Federal statutory rate times financial statement
loss                                               $(1,247)  $(861)  $(1,143)
Effect of:
Goodwill impairment                                    595      --        --
FHLB stock redemption                                  344      --        --
Bank owned life insurance income                       (44)    (49)      (64)
ESOP shares released at fair market value               --      --       207
Other                                                  (25)     38        12
                                                   -------   -----   -------
                                                   $  (377)  $(872)  $  (988)
                                                   =======   =====   =======
Effective tax rate                                   -10.3%  -34.4%    -29.4%
</TABLE>

In December 2005, a redemption of $1,300 in FHLB stock resulted in a $1,000 gain
for tax purposes which utilized a portion of the Company's net operating loss
carryforward. The stock redemption resulted in no gain for book purposes but did
result in the recognition of federal income tax expense of $344. The federal
income tax charge was a non-cash, non-recurring expense reflecting the tax
liability associated with FHLB stock dividends received from 1978 through 1997
which reduced the basis of the shares redeemed for which no deferred tax
liability had been established.


                                      -46-

<PAGE>

NOTE 15 - INCOME TAXES (Continued)

Year-end deferred tax assets and liabilities were due to the following.

<TABLE>
<CAPTION>
                                                       2005     2004
                                                      ------   ------
<S>                                                   <C>      <C>
Deferred tax assets:
   Allowance for loan losses                          $  508   $  333
   Deferred loan fees                                    107      159
   Post-retirement death benefits                         38       34
   Deferred compensation                                  36       13
   Nonaccrual interest                                    17        5
   Accrued stock awards                                   84       58
   Net operating losses                                2,122    1,810
   Deferred tax credits                                   17       17
   Other                                                   4        6
                                                      ------   ------
                                                       2,933    2,435

Deferred tax liabilities:
   Depreciation                                          299      284
   FHLB stock dividends                                  493      430
   Intangible assets                                      --       95
   Mortgage servicing rights                              85       71
   Prepaid expenses                                       30       33
   Unrealized gain on securities available for sale       14       31
   Other                                                  34       --
                                                      ------   ------
                                                         955      944
                                                      ------   ------
Net deferred tax asset                                $1,978   $1,491
                                                      ======   ======
</TABLE>

Federal income tax laws provided additional bad debt deductions through 1987,
totaling $2,250. Accounting standards do not require a deferred tax liability to
be recorded on this amount, which otherwise would total $765 at year-end 2005.
If CFBank were liquidated or otherwise ceases to be a bank or if tax laws were
to change, this amount would be expensed.

No valuation allowance has been recorded against the deferred tax asset for net
operating losses because the benefit is more likely than not to be realized. Net
operating losses totaling $2,839, $2,707 and $696 expire in 2023, 2024 and 2025,
respectively.

NOTE 16 - RELATED PARTY TRANSACTIONS

Loans to principal officers, directors and their affiliates at year-end 2005
totaled $5 and represented the disbursed portion of a $1,400 line of credit to
an affiliate of a director. The remaining $1,395 was disbursed on January 3,
2006.

Deposits from principal officers, directors, and their affiliates at year-end
2005 and 2004 were $1,808 and $1,282.


                                      -47-
<PAGE>

NOTE 17 - STOCK BASED INCENTIVE PLANS

Stock based incentive plans (SBIP) provide for stock option grants and
restricted stock awards to directors, officers and employees. The 1999 Stock
Based Incentive Plan was approved by shareholders on July 13, 1999. The plan
provided for 193,887 shares for stock option grants and 77,554 shares for
restricted stock awards. The 2003 Equity Compensation Plan was ratified by
shareholders on April 23, 2003 and provided an aggregate of 100,000 shares for
stock option grants and restricted stock awards, including up to a maximum of
30,000 shares for restricted stock awards. An amendment and restatement of the
2003 Equity Compensation Plan was approved by stockholders on April 20, 2004 to
provide an additional 100,000 shares of Company stock for stock option grants
and restricted stock awards, including up to a maximum of 30,000 shares for
restricted stock awards. A second amendment and restatement of the 2003 Equity
Compensation Plan was approved by stockholders on May 20, 2005 to provide an
additional 100,000 shares of Company stock for stock option grants and
restricted stock awards, including up to a maximum of 30,000 shares for
restricted stock awards. Both plans provide for options to be granted for terms
of up to, but not exceeding ten years from the date of grant and cannot be
granted at a price less than the fair market value of the common stock on the
date of grant. Shares related to forfeited stock options and restricted stock
awards become available for subsequent grant under the terms of the plans.
Exercise price is the market price at date of grant for stock options, so there
is no compensation expense recognized in the income statement. Options granted
in 2005 vested on December 31, 2005. See Note 1 - Summary of Significant
Accounting Policies - Stock Compensation for information regarding the Board of
Directors' decision on June 23, 2005, to accelerate vesting of all unvested
stock options awarded prior to 2005 to eligible participants under the 1999
Stock Based Incentive Plan and the 2003 Equity Compensation Plan.

A summary of the activity for stock options is as follows.

<TABLE>
<CAPTION>
                              2005                 2004                 2003
                       ------------------   ------------------   ------------------
                                 Weighted             Weighted             Weighted
                                  Average              Average              Average
                                 Exercise             Exercise             Exercise
                        Shares     Price     Shares     Price     Shares     Price
                       -------   --------   -------   --------   -------   --------
<S>                    <C>       <C>        <C>       <C>        <C>       <C>
Outstanding at
   beginning of year   256,536    $11.32    209,721    $10.17    182,497    $ 9.23
Granted                 86,474     10.39    110,864     12.63     77,758     11.79
Exercised              (40,138)     9.33    (44,900)     9.19    (37,302)     9.23
Forfeited              (12,000)    11.27    (19,149)    11.16    (13,232)     9.26
                       -------    ------    -------    ------    -------    ------
Outstanding at
   end of year         290,872    $11.32    256,536    $11.32    209,721    $10.17
                       =======    ======    =======    ======    =======    ======
Options available
   for grant            20,000               12,149               18,364

Options exercisable
   at year-end         290,872    $11.32    106,386    $ 9.86    101,285    $ 9.20
                       =======    ======    =======    ======    =======    ======
</TABLE>


                                      -48-

<PAGE>

Options outstanding at year-end 2005 were as follows.

<TABLE>
<CAPTION>
                             Outstanding                 Exercisable
                  --------------------------------   ------------------
                              Weighted
                              Average     Weighted             Weighted
                             Remaining     Average              Average
Range of                    Contractual   Exercise             Exercise
Exercise Prices    Number       Life        Price    Number      Price
- ---------------   -------   -----------   --------   -------   --------
<S>               <C>       <C>           <C>        <C>        <C>
$9.19 - $10.42    133,640    7.4 years     $10.00    133,640    $10.00
$11.50 - $12.70   140,000    7.6 years     $12.28    140,000    $12.28
$13.76- $13.94     17,232    5.1 years     $13.81     17,232    $13.81
</TABLE>

A summary of activity for restricted stock awards is as follows.

<TABLE>
<CAPTION>
                                               2005      2004      2003
                                             -------   -------   -------
<S>                                          <C>       <C>       <C>
Unvested shares outstanding at beginning
of year                                       41,253    40,518    28,695
Granted                                       20,000    26,028    28,500
Vested                                       (13,300)  (19,968)  (12,024)
Forfeited                                     (2,126)   (5,325)   (4,653)
                                             -------   -------   -------
Unvested shares outstanding at end of year    45,827    41,253    40,518
                                             =======   =======   =======
Shares available for grant                    20,126     8,659    10,028
                                             =======   =======   =======
</TABLE>

Compensation expense for restricted stock awards is recognized over the vesting
period of the shares based on the fair value of the shares on the date of grant.
Unearned compensation is reported as a reduction of shareholders' equity until
earned. Compensation expense was $240, $243 and $141 for 2005, 2004 and 2003.


                                      -49-
<PAGE>

NOTE 18 - CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS

CFBank is subject to regulatory capital requirements administered by federal
banking agencies. Capital adequacy guidelines and, additionally for banks,
prompt corrective action regulations involve quantitative measures of assets,
liabilities, and certain off-balance-sheet items calculated under regulatory
accounting practices. Capital amounts and classifications are also subject to
qualitative judgments by regulators. Failure to meet capital requirements can
initiate regulatory action.

Prompt corrective action regulations provide five classifications:
well-capitalized, adequately capitalized, undercapitalized, significantly
undercapitalized, and critically undercapitalized, although these terms are not
used to represent overall financial condition. If adequately capitalized,
regulatory approval is required to accept brokered deposits. If
undercapitalized, capital distributions are limited, as is asset growth and
expansion, and capital restoration plans are required. The most recent
regulatory notification categorized CFBank as well-capitalized at year-end 2005
and 2004. In January 2006, the holding company contributed $10.4 million in
additional capital to CFBank. There are no conditions or events since then that
management believes have changed the institution's category.

Actual and required capital amounts and ratios are presented below at year-end.

<TABLE>
<CAPTION>
                                                                         To Be Well-
                                                                      Capitalized Under
                                                     For Capital      Prompt Corrective
                                     Actual       Adequacy Purposes   Action Provisions
                                ---------------   -----------------   -----------------
                                 Amount   Ratio     Amount   Ratio      Amount   Ratio
                                -------   -----    -------   -----      -------  -----
<S>                             <C>       <C>     <C>        <C>      <C>        <C>
2005
Total Capital to risk
   weighted assets              $13,212   10.1%    $10,454    8.0%      $13,067  10.0%
Tier 1 (Core) Capital to risk
   weighted assets               11,717    9.0%      5,227    4.0%        7,840   6.0%
Tier 1 (Core) Capital to
   adjusted assets               11,717    6.9%      6,811    4.0%        8,514   5.0%
Tangible Capital (to
   adjusted total assets)        11,717    6.9%      2,554    1.5%          N/A
</TABLE>


                                      -50-

<PAGE>

NOTE 18 - CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Continued)

<TABLE>
<CAPTION>
                                                                         To Be Well-
                                                                      Capitalized Under
                                                     For Capital      Prompt Corrective
                                     Actual       Adequacy Purposes   Action Provisions
                                ---------------   -----------------   -----------------
                                 Amount   Ratio     Amount   Ratio      Amount   Ratio
                                -------   -----    -------   -----      -------  -----
<S>                             <C>       <C>     <C>        <C>      <C>        <C>
2004
Total Capital to risk
   weighted assets              $14,555    12.2%    $9,580    8.0%      $11,975   10.0%
Tier 1 (Core) Capital to risk
   weighted assets               13,576    11.3      4,790    4.0         7,185    6.0
Tier 1 (Core) Capital to
   adjusted assets               13,576     8.1      6,726    4.0         8,408    5.0
Tangible Capital (to
   adjusted total assets)        13,576     8.1      2,522    1.5           N/A
</TABLE>

The Qualified Thrift Lender test requires at least 65% of assets be maintained
in housing-related finance and other specified areas. If this test is not met,
limits are placed on growth, branching, new investments, FHLB advances and
dividends, or CFBank must convert to a commercial bank charter. Management
believes that this test is met.

CFBank converted from a mutual to a stock institution, and a "liquidation
account" was established at $14,300, which was net worth reported in the
conversion prospectus. Eligible depositors who have maintained their accounts,
less annual reductions to the extent they have reduced their deposits, would
receive a distribution from this account if CFBank liquidated. Dividends may not
reduce shareholders' equity below the required liquidation account balance.

The holding company's principal source of funds for dividend payments is
dividends received from CFBank. Banking regulations limit the amount of
dividends that may be paid without prior approval of regulatory agencies. Under
these regulations, the amount of dividends that may be paid in any calendar year
is limited to the current year's net profits, combined with the retained net
profits of the preceding two years, subject to the capital requirements
described above. At year-end 2005, no amount is available to pay dividends to
the holding company without prior approval from the Office of Thrift Supervision
(OTS).


                                      -51-
<PAGE>

NOTE 19 - LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES

Some financial instruments, such as loan commitments, credit lines, letters of
credit, and overdraft protection, are issued to meet customer financing needs.
These are agreements to provide credit or to support the credit of others, as
long as conditions established in the contract are met, and usually have
expiration dates. Commitments may expire without being used. Off-balance-sheet
risk to credit loss exists up to the face amount of these instruments, although
material losses are not anticipated. The same credit policies are used to make
such commitments as are used for loans, including obtaining collateral at
exercise of the commitment.

The contractual amount of financial instruments with off-balance-sheet risk was
as follows at year-end.

<TABLE>
<CAPTION>
                                   2005               2004
                            -----------------   ----------------
                             Fixed   Variable   Fixed   Variable
                             Rate      Rate      Rate     Rate
                            ------   --------   -----   --------
<S>                         <C>      <C>        <C>     <C>
Commitments to make loans   $1,453    $ 1,961    $882    $  917
Unused lines of credit         905     16,846     543     8,406
</TABLE>

Commitments to make loans are generally made for periods of 60 days or less. The
fixed rate loan commitments have interest rates ranging from 6.50% to 8.75% at
December 31, 2005 and 5.75% to 9.63% at December 31, 2004 with maturities
ranging from 2 years to 30 years.

NOTE 20 - FAIR VALUES OF FINANCIAL INSTRUMENTS

Carrying amounts and estimated fair values of financial instruments were as
follows at year-end.

<TABLE>
<CAPTION>
                                              2005                    2004
                                     ---------------------   ---------------------
                                      Carrying      Fair      Carrying      Fair
                                       Amount      Value       Amount      Value
                                     ---------   ---------   ---------   ---------
<S>                                  <C>         <C>         <C>         <C>
Financial assets
   Cash and cash equivalents         $   2,972   $   2,972   $  32,675   $  32,675
   Securities available for sale        30,872      30,872      13,508      13,508
   Loans held for sale                     178         178          --          --
   Loans, net                          124,026     125,343     108,149     108,712
   Federal Home Loan Bank stock          2,656       2,656       3,778       3,778
   Loan sales proceeds receivable        2,241       2,241       1,888       1,888
   Accrued interest receivable             845         845         501         501

Financial liabilities
   Deposits                           (127,588)   (127,935)   (101,624)   (102,030)
   Federal Home Loan Bank advances     (22,995)    (22,756)    (41,170)    (41,017)
   Other borrowings                         --          --      (2,249)     (2,249)
   Subordinated debentures              (5,155)     (5,155)     (5,155)     (5,155)
   Accrued interest payable                (90)        (90)        (36)        (36)
</TABLE>


                                      -52-

<PAGE>

NOTE 20 - FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued)

The methods and assumptions used to estimate fair value are described as
follows.

Carrying amount is the estimated fair value for cash and cash equivalents,
short-term borrowings, Federal Home Loan Bank stock, loan sales proceeds
receivable, accrued interest receivable and payable, demand deposits, short-term
debt, and variable rate loans or deposits that reprice frequently and fully.
Security fair values are based on market prices or dealer quotes, and if no such
information is available, on the rate and term of the security and information
about the issuer. For fixed rate loans or deposits and for variable rate loans
or deposits with infrequent repricing or repricing limits, fair value is based
on discounted cash flows using current market rates applied to the estimated
life and credit risk. Fair values for impaired loans are estimated using
discounted cash flow analysis or underlying collateral values. Fair value of
loans held for sale is based on market quotes. Fair value of debt is based on
current rates for similar financing. The fair value of off-balance-sheet items
is based on the current fees or cost that would be charged to enter into or
terminate such arrangements.

NOTE 21 - BUSINESS COMBINATION

On October 22, 2004, the Company acquired 100% of the outstanding common stock
of RJO Financial Services, Inc., doing business as Reserve Mortgage Services
(Reserve), an Akron, Ohio based company licensed as a mortgage banker in Ohio,
Florida and Georgia. Reserve's name changed to Reserve Mortgage Services, Inc.
and it became an operating subsidiary of CFBank on the date of the acquisition.
It was subsequently merged into CFBank on May 12, 2005. Operating results of
Reserve are included in the consolidated financial statements since the date of
the acquisition.

The aggregate purchase price was $2,206, including $419 in cash and $1,787 in
common stock. The value of the 127,077 common shares issued was determined based
on the average market price over the week before and after the terms of the
acquisition were agreed to and announced.

The purchase price resulted in goodwill of $1,749, a noncompete agreement of $25
and prior owner intangible of $295. See Note 8 - Goodwill and Intangible Assets
for information regarding the impairment loss recognized in 2005. Prior to
recognition of the impairment loss, the noncompete agreement was amortized over
its one year term and the prior owner intangible was amortized over 3 years,
using the straight-line method for book and tax purposes. Goodwill was not
amortized but instead evaluated for impairment. Goodwill is not deductible for
tax purposes.


                                      -53-

<PAGE>

NOTE 22 - PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

Condensed financial information of Central Federal Corporation follows.

CONDENSED BALANCE SHEETS
December 31

<TABLE>
<CAPTION>
                                                     2005      2004
                                                   -------   -------
<S>                                                <C>       <C>
ASSETS
Cash and cash equivalents                          $ 6,989   $ 8,504
Investment in banking subsidiary                    13,009    15,708
Investment in and advances to other subsidiaries       319       296
Other assets                                         1,142       399
                                                   -------   -------
Total assets                                       $21,459   $24,907
                                                   =======   =======
LIABILITIES AND EQUITY
Subordinated debentures                            $ 5,155   $ 5,155
Accrued expenses and other liabilities                 223       245
Shareholders' equity                                16,081    19,507
                                                   -------   -------
Total liabilities and shareholders' equity         $21,459   $24,907
                                                   =======   =======
</TABLE>

CONDENSED STATEMENTS OF OPERATIONS
Years ended December 31

<TABLE>
<CAPTION>
                                             2005      2004      2003
                                           -------   -------   -------
<S>                                        <C>       <C>       <C>
Interest income                            $    --   $    --   $    20
Dividends from subsidiaries                     --        --     5,437
Other income                                    --        --        11
Interest expense                               321       225        59
Other expense                                  308       306       338
                                           -------   -------   -------
Loss before income tax and
   undistributed subsidiaries operations      (629)     (531)    5,071
Income tax benefit                             239       143       125
Effect of subsidiaries' operations          (2,900)   (1,274)   (7,570)
                                           -------   -------   -------
Net loss                                   $(3,290)  $(1,662)  $(2,374)
                                           =======   =======   =======
</TABLE>


                                      -54-
<PAGE>

NOTE 22 - PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION
(Continued)

CONDENSED STATEMENTS OF CASH FLOWS
Years ended December 31

<TABLE>
<CAPTION>
                                                       2005      2004      2003
                                                     -------   -------   -------
<S>                                                  <C>       <C>       <C>
Cash flows from operating activities
   Net loss                                          $(3,290)  $(1,662)  $(2,374)
   Adjustments:
      Effect of subsidiaries' operations               2,900     1,274     7,570
      Change in other assets and other liabilities      (716)      296      (102)
                                                     -------   -------   -------
         Net cash from operating activities           (1,106)      (92)    5,094
Cash flows from investing activities
   Cash received in repayment of ESOP loan                --        --       853
   Investments in subsidiaries                            17        --      (289)
                                                     -------   -------   -------
         Net cash from investing activities               17        --       564
Cash flows from financing activities
   Proceeds from subordinated debentures                  --        --     5,155
   Repayments of borrowings                               --        --    (4,900)
   Proceeds from stock issue                              --        --     3,119
   Proceeds from exercise of stock options               375       412       345
   Purchase of treasury stock                             --      (319)       --
   Dividends paid                                       (801)     (735)     (655)
   Dividends on unallocated ESOP shares                   --        --        --
                                                     -------   -------   -------
         Net cash from financing activities             (426)     (642)    3,064
                                                     -------   -------   -------
Net change in cash and cash equivalents               (1,515)     (734)    8,722
Beginning cash and cash equivalents                    8,504     9,238       516
                                                     -------   -------   -------
Ending cash and cash equivalents                     $ 6,989   $ 8,504   $ 9,238
                                                     =======   =======   =======
</TABLE>


                                      -55-

<PAGE>

NOTE 23 - EARNINGS PER SHARE

The factors used in the earnings per share computation follow.

<TABLE>
<CAPTION>
                                                                  2005         2004         2003
                                                               ----------   ----------   ----------
<S>                                                            <C>          <C>          <C>
Basic
   Net loss                                                    $   (3,290)  $   (1,662)  $   (2,374)
                                                               ==========   ==========   ==========
   Weighted average common shares outstanding                   2,203,623    2,033,376    1,815,210
                                                               ==========   ==========   ==========
   Basic loss per common share                                 $    (1.49)  $    (0.82)  $    (1.31)
                                                               ==========   ==========   ==========
Diluted
   Net loss                                                    $   (3,290)  $   (1,662)  $   (2,374)
                                                               ==========   ==========   ==========
   Weighted average common shares outstanding
      for basic loss per share                                  2,203,623    2,033,376    1,815,210
   Add: Dilutive effects of assumed exercises
      of stock options and stock based incentive plan shares           --           --           --
                                                               ----------   ----------   ----------
   Average shares and dilutive potential common shares          2,203,623    2,033,376    1,815,210
                                                               ==========   ==========   ==========
   Diluted loss per common share                               $    (1.49)  $    (0.82)  $    (1.31)
                                                               ==========   ==========   ==========
</TABLE>

The following potential average common shares were anti-dilutive and not
considered in computing diluted earnings (loss) per share because the Company
had a loss from continuing operations, the exercise price of the options was
greater than the average stock price for the periods or the fair value of the
stock based incentive plan shares at the date of grant was greater than the
average stock price for the periods.

<TABLE>
<CAPTION>
                                      2005      2004      2003
                                    -------   -------   -------
<S>                                 <C>       <C>       <C>
Stock options                       270,131   263,400   225,285
Stock based incentive plan shares    29,366    33,313    28,927
</TABLE>


                                      -56-
<PAGE>

NOTE 24 - SEGMENT INFORMATION

The reportable segments are determined by the products and services offered,
primarily distinguished between banking and mortgage banking operations. Loans,
securities, deposits and servicing fees provide the revenues in the banking
operation, and single-family residential mortgage loan sales provide the
revenues in mortgage banking. All operations are domestic.

Prior to the Company's acquisition of Reserve in October 2004, mortgage banking
operations were performed by CFBank. While the chief decision-makers monitored
the revenue streams of the various products and services prior to 2005, the
identifiable segments were not material and operations were managed and
financial performance was evaluated on a Company-wide basis. Accordingly, all of
the financial service operations were considered by management to be aggregated
in one reportable operating segment. As such, no segment information is included
for the previous periods.

The accounting policies used are the same as those described in the summary of
significant accounting policies. Segment performance is evaluated using net
income. Goodwill is allocated to mortgage banking. Income taxes are allocated
and transactions among segments are made at fair value. Information reported
internally for performance assessment follows: Parent and Other includes
activities that are not directly attributed to the reportable segments, and is
comprised of the Parent Company and elimination entries between all segments.

<TABLE>
<CAPTION>
                                               Mortgage   Parent and   Consolidated
                                     Banking    Banking      Other         Total
                                    --------   --------   ----------   ------------
<S>                                 <C>        <C>        <C>          <C>
2005
Net interest income (expense)       $  5,266   $    23      $ (321)      $  4,968
Provision for loan losses               (674)       --          --           (674)
Net gain (loss) on sales of loans        (19)      488          --            469
Other revenue                            364        --          33            397
Impairment loss on goodwill and
   intangibles                            --    (1,966)         --         (1,966)
Depreciation and amortization           (394)     (103)         --           (497)
Other expense                         (5,334)     (728)       (302)        (6,364)
                                    --------   -------      ------       --------
Loss before income tax                  (791)   (2,286)       (590)        (3,667)
Income tax expense (benefit)              44      (182)       (239)          (377)
                                    --------   -------      ------       --------
Net loss                            $   (835)  $(2,104)     $ (351)      $ (3,290)
                                    ========   =======      ======       ========

December 31, 2005
Segment assets                      $169,151   $ 2,411      $1,459       $173,021
                                    ========   =======      ======       ========
</TABLE>


                                      -57-

<PAGE>

NOTE 25 - ARBITRATION

In December 2005, CFBank terminated the President of Reserve. The former
President filed a request for arbitration against CFBank and contends that
CFBank owes him $600 for breaching an employment agreement between him and
CFBank by discharging him without just cause. CFBank responded by denying that
it breached the employment agreement in that CFBank had just cause to discharge
him for flagrant misconduct and malfeasance, alleging causes of action for
breach of contract, breach of fiduciary duty, and breach of duty of loyalty. The
arbitration is in the discovery stage and an outcome can not be determined at
this time.


                                      -58-

<PAGE>

CENTRAL FEDERAL CORPORATION
AND CFBANK
BOARD OF DIRECTORS

Mark S. Allio
Chairman, President & Chief Executive Officer
Central Federal Corporation
Chairman & Chief Executive Officer
CFBank

David C. Vernon
Vice-Chairman
Central Federal Corporation and
CFBank

Jeffrey W. Aldrich
Former President
Sterling China Co.

Thomas P. Ash
Director of Governmental Relations
Buckeye Association of School Administrators

William R. Downing
President
R.H. Downing Inc.

Gerry W. Grace
Former President
Grace Services, Inc.

Jerry F. Whitmer, Esq.
Of Counsel
Brouse McDowell

CENTRAL FEDERAL CORPORATION
OFFICERS

Mark S. Allio
Chairman, President & Chief
Executive Officer

David C. Vernon
Vice-Chairman

Eloise L. Mackus, Esq.
Senior Vice President,
General Counsel & Secretary

Therese A. Liutkus, CPA
Treasurer & Chief Financial Officer

Laura L. Martin
Assistant Secretary

CFBANK
COLUMBUS DEVELOPMENT BOARD

Dr. Steven J. Yakubov
Interventional Cardiologist
Mid Ohio Cardiology and Vascular Consultants

James J. Chester
Partner
Chester Willcox and Saxbe, LLP

R. Parker MacDonell
President - Columbus Region
CFBank

John L. Mead
Owner
Little Turtle Golf Course

Louis A. Nobile, Jr.
Former President
Bank One Lima

Robert F. Parsons
Director of Development & Marketing
Communities in Schools, Columbus Inc.

CFBANK
EXECUTIVE OFFICERS

Mark S. Allio
Chairman & Chief Executive Officer

David C. Vernon
Vice-Chairman

Raymond E. Heh
President & Chief Operating Officer

R. Parker MacDonell
President - Columbus Region

Eloise L. Mackus, Esq.
Senior Vice President, General Counsel & Secretary

Timothy M. O'Brien
Senior Vice President, Mortgage Operations

Therese A. Liutkus, CPA
Treasurer & Chief Financial Officer

William R. Reed
Senior Credit Officer

CFBANK
OFFICE LOCATIONS

CALCUTTA, OHIO
49028 Foulks Drive
Calcutta, Ohio 43920
330-385-4323

COLUMBUS, OHIO
4249 Easton Way
Suite 125
Columbus, Ohio 43219
614-334-7979

FAIRLAWN, OHIO
2923 Smith Road
Fairlawn, Ohio 44333
330-666-7979

WELLSVILLE, OHIO
601 Main Street
Wellsville, Ohio 43968
330-532-1517

MORTGAGE OPERATIONS & SERVICES
1730 Akron-Peninsula Rd.
Akron, Ohio 44313
330-945-7000


                                      -59-

<PAGE>

Corporate Data

Annual Report

A copy of the Annual Report on Form 10-KSB filed with the Securities and
Exchange Commission will be available March 30, 2006 without charge upon written
request to:

Therese A. Liutkus, CPA
Treasurer and Chief Financial Officer
Central Federal Corporation
2923 Smith Road
Fairlawn, Ohio 44333
Phone: 330-576-1209
Fax: 330-666-7959
Email: TerriLiutkus@cfbankmail.com

Annual Meeting

The Annual Meeting of Shareholders of Central Federal Corporation will be held
at 10 a.m. on Thursday, May 18, 2006 at the Fairlawn Country Club, 200 North
Wheaton Road, Fairlawn, Ohio.

Shareholder Services

The Registrar and Transfer Company serves as transfer agent for Central Federal
Corporation shares. Communications regarding change of address, transfer of
shares or lost certificates should be sent to:

The Registrar & Transfer Company
10 Commerce Drive
Cranford, New Jersey 07016
Phone: 800-368-5948


                                      -60-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21.1
<SEQUENCE>4
<FILENAME>l17961aexv21w1.txt
<DESCRIPTION>EXHIBIT 21.1 SUBSIDIARIES OF THE REGISTRANT
<TEXT>
<PAGE>

                                                                    EXHIBIT 21.1

                         SUBSIDIARIES OF THE REGISTRANT

CFBank
Central Federal Capital Trust I
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>5
<FILENAME>l17961aexv23w1.txt
<DESCRIPTION>EXHIBIT 23.1 CONSENT OF INDEPENDENT PUBLIC ACCOUNTING FIRM
<TEXT>
<PAGE>

                                                                    EXHIBIT 23.1

            CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration
Statements on Form S-8 (333-84817, 333-105515, 333-114025, 333-115943, and
333-125661), Form S-2 (333-129315) and Form S-3 (333-110218) of Central Federal
Corporation (formerly Grand Central Financial Corp.) of our report dated
February 13, 2006, related to the consolidated financial statements of Central
Federal Corporation included in this annual report on Form 10-KSB for the year
ended December 31, 2005.

                                        Crowe Chizek and Company LLC

Cleveland, Ohio
March 29, 2006
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>6
<FILENAME>l17961aexv31w1.txt
<DESCRIPTION>EXHIBIT 31.1 302 CERTIFICATION FOR CEO
<TEXT>
<PAGE>

                                                                    EXHIBIT 31.1

                          Rule 13a-14(a) Certifications

I, Mark S. Allio, certify, that:

     1.   I have reviewed this report on Form 10-KSB of Central Federal
          Corporation;

     2.   Based on my knowledge, this report does not contain any untrue
          statement of a material fact or omit to state a material fact
          necessary to make the statements made, in light of the circumstances
          under which such statements were made, not misleading with respect to
          the period covered by this report;

     3.   Based on my knowledge, the financial statements, and other financial
          information included in this report, fairly present in all material
          respects the financial condition, results of operations and cash flows
          of the small business issuer as of, and for, the periods presented in
          this report;

     4.   The small business issuer's other certifying officer and I are
          responsible for establishing and maintaining disclosure controls and
          procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))
          and internal control over financial reporting (as defined in Exchange
          Act Rules 13a-15(f)) for the small business issuer and have:

               a)   Designed such disclosure controls and procedures, or caused
                    such disclosure controls and procedures to be designed under
                    our supervision, to ensure that material information
                    relating to the small business issuer, including its
                    consolidated subsidiaries, is made known to us by others
                    within those entities, particularly during the period in
                    which this report is being prepared;

               b)   Designed such internal control over financial reporting, or
                    caused such internal control over financial reporting to be
                    designed under our supervision, to provide reasonable
                    assurance regarding the reliability of financial reporting
                    and the preparation of financial statements for external
                    purposes in accordance with generally accepted accounting
                    principles;

               c)   Evaluated the effectiveness of the small business issuer's
                    disclosure controls and procedures and presented in this
                    report our conclusions about the effectiveness of the
                    disclosure controls and procedures, as of the end of the
                    period covered by this report based on such evaluation; and

               d)   Disclosed in this report any change in the small business
                    issuer's internal control over financial reporting that
                    occurred during the small business issuer's fourth fiscal
                    quarter that has materially affected, or is reasonably
                    likely to materially affect, the small business issuer's
                    internal control over financial reporting; and

     5.   The small business issuer's other certifying officer and I have
          disclosed, based on our most recent evaluation of internal control
          over financial reporting, to the small business issuer's auditors and
          the audit committee of small business issuer's board of directors:

               a)   All significant deficiencies and material weaknesses in the
                    design or operation of internal control over financial
                    reporting which are reasonably likely to adversely affect
                    the small business issuer's ability to record, process,
                    summarize and report financial information; and

               b)   Any fraud, whether or not material, that involves management
                    or other employees who have a significant role in the small
                    business issuer's internal control over financial reporting.


Date: March 30, 2006                    /s/ Mark S. Allio
                                        ----------------------------------------
                                        Mark S. Allio
                                        Chairman of the Board, President
                                        and Chief Executive Officer
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>7
<FILENAME>l17961aexv31w2.txt
<DESCRIPTION>EXHIBIT 31.2 302 CERTIFICATION FOR CFO
<TEXT>
<PAGE>

                                                                    EXHIBIT 31.2

                          Rule 13a-14(a) Certifications

I, Therese Ann Liutkus, certify, that:

     1.   I have reviewed this report on Form 10-KSB of Central Federal
          Corporation;

     2.   Based on my knowledge, this report does not contain any untrue
          statement of a material fact or omit to state a material fact
          necessary to make the statements made, in light of the circumstances
          under which such statements were made, not misleading with respect to
          the period covered by this report;

     3.   Based on my knowledge, the financial statements, and other financial
          information included in this report, fairly present in all material
          respects the financial condition, results of operations and cash flows
          of the small business issuer as of, and for, the periods presented in
          this report;

     4.   The small business issuer's other certifying officer and I are
          responsible for establishing and maintaining disclosure controls and
          procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))
          and internal control over financial reporting (as defined in Exchange
          Act Rules 13a-15(f)) for the small business issuer and have:

               a)   Designed such disclosure controls and procedures, or caused
                    such disclosure controls and procedures to be designed under
                    our supervision, to ensure that material information
                    relating to the small business issuer, including its
                    consolidated subsidiaries, is made known to us by others
                    within those entities, particularly during the period in
                    which this report is being prepared;

               b)   Designed such internal control over financial reporting, or
                    caused such internal control over financial reporting to be
                    designed under our supervision, to provide reasonable
                    assurance regarding the reliability of financial reporting
                    and the preparation of financial statements for external
                    purposes in accordance with generally accepted accounting
                    principles;

               c)   Evaluated the effectiveness of the small business issuer's
                    disclosure controls and procedures and presented in this
                    report our conclusions about the effectiveness of the
                    disclosure controls and procedures, as of the end of the
                    period covered by this report based on such evaluation; and

               d)   Disclosed in this report any change in the small business
                    issuer's internal control over financial reporting that
                    occurred during the small business issuer's fourth fiscal
                    quarter that has materially affected, or is reasonably
                    likely to materially affect, the small business issuer's
                    internal control over financial reporting; and

     5.   The small business issuer's other certifying officer and I have
          disclosed, based on our most recent evaluation of internal control
          over financial reporting, to the small business issuer's auditors and
          the audit committee of small business issuer's board of directors:

                    a)   All significant deficiencies and material weaknesses in
                         the design or operation of internal control over
                         financial reporting which are reasonably likely to
                         adversely affect the small business issuer's ability to
                         record, process, summarize and report financial
                         information; and

                    b)   Any fraud, whether or not material, that involves
                         management or other employees who have a significant
                         role in the small business issuer's internal control
                         over financial reporting.


Date: March 30, 2006                    /s/ Therese Ann Liutkus
                                        ----------------------------------------
                                        Therese Ann Liutkus, CPA
                                        Treasurer and Chief Financial Officer
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>8
<FILENAME>l17961aexv32w1.txt
<DESCRIPTION>EXHIBIT 32.1 906 CERTIFICATION FOR CEO AND CFO
<TEXT>
<PAGE>

                                                                    EXHIBIT 32.1

                           Section 1350 Certifications

In connection with the Annual Report of Central Federal Corporation (the
"Company") on Form 10-KSB for the fiscal year ended December 31, 2005 as filed
with the Securities and Exchange Commission (the "Report"), the undersigned,
Mark S. Allio, Chairman of the Board, President and Chief Executive Officer of
the Company and Therese Ann Liutkus, Treasurer and Chief Financial Officer of
the Company, certify, pursuant to 18 U.S.C. Section 1350, as added by Section
906 of the Sarbanes-Oxley Act of 2002, that:

     (1)  The Report fully complies with the requirements of Section 13(a) or
          15(d) of the Securities Exchange Act of 1934; and

     (2)  The information contained in the Report fairly presents, in all
          material respects, the financial condition and results of operations
          of the Company as of and for the period covered by the Report.


                                        /s/ Mark S. Allio
                                        ----------------------------------------
                                        Mark S. Allio
                                        Chairman of the Board, President
                                        and Chief Executive Officer


                                        /s/ Therese Ann Liutkus
                                        ----------------------------------------
                                        Therese Ann Liutkus, CPA
                                        Treasurer and Chief Financial Officer

Date: March 30, 2006
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
