OPERATING SEGMENTS

6 Months Ended

Jun. 30, 2011

OPERATING SEGMENTS [Abstract]

OPERATING SEGMENTS

7.           OPERATING SEGMENTS

An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker.  The Company has determined that it has two reportable segments:  a traditional banking segment and a nonbank segment.  The traditional banking segment consists of the Company's banking subsidiary, First Federal Savings Bank of Iowa (the “Bank”), and the holding company.  Following its recent conversion from a federal savings bank to an Iowa state chartered bank, the Bank operates as a state commercial bank providing deposit, loan and other related products to individuals and small businesses, primarily in the communities where their offices are located.  The nonbank segment, which is set forth under the caption “All Others” below, consists of the operations of the subsidiaries under the Bank, and includes real estate abstracting services, insurance and investment services, and ownership of low-income housing tax credit apartment complexes.

Transactions between affiliates, the resulting revenues of which are shown in the inter-segment revenue category, are conducted at market prices that would be paid if the companies were not affiliates.

	Three Months Ended June 30, 2011									Six Months Ended June 30, 2011
	Traditional									Traditional
	Banking			All Others			Total			Banking		All Others			Total
Interest income	$	5,119,889		$	-		$	5,119,889		$	10,295,496	$	-		$	10,295,496
Interest expense		1,496,255			26,927			1,523,182			3,075,153		54,142			3,129,295
Net interest income (loss)		3,623,634			(26,927	)		3,596,707			7,220,343		(54,142	)		7,166,201
Provision for loan losses		485,000			-			485,000			785,000		-			785,000
Net interest income (loss) after
provision for loan losses		3,138,634			(26,927	)		3,111,707			6,435,343		(54,142	)		6,381,201
Noninterest income		1,381,638			457,918			1,839,556			2,620,528		853,118			3,473,646
Securities gains, net		30,041			-			30,041			30,041		-			30,041
Noninterest expense		3,922,732			417,060			4,339,792			7,450,764		826,480			8,277,244
Income (loss) before income taxes		627,581			13,931			641,512			1,635,148		(27,504	)		1,607,644
Provision for income taxes		77,800			15,900			93,700			357,900		11,700			369,600
Net income (loss)	$	549,781		$	(1,969	)	$	547,812		$	1,277,248	$	(39,204	)	$	1,238,044
Inter-segment revenue (expense)	$	130,910		$	(130,910	)	$	-		$	275,060	$	(275,060	)	$	-
Total assets	$	439,077,280		$	3,551,918		$	442,629,198		$	439,077,280	$	3,551,918		$	442,629,198
Total deposits	$	357,567,252		$	-		$	357,567,252		$	357,567,252	$	-		$	357,567,252
	Three Months Ended June 30, 2010									Six Months Ended June 30, 2010
	Traditional									Traditional
	Banking			All Others			Total			Banking		All Others			Total
Interest income	$	5,593,835		$	-		$	5,593,835		$	11,381,621	$	-		$	11,381,621
Interest expense		1,936,416			28,038			1,964,454			3,930,453		56,106			3,986,559
Net interest income (loss)		3,657,419			(28,038	)		3,629,381			7,451,168		(56,106	)		7,395,062
Provision for loan losses		1,610,000			-			1,610,000			2,410,000		-			2,410,000
Net interest income (loss) after
provision for loan losses		2,047,419			(28,038	)		2,019,381			5,041,168		(56,106	)		4,985,062
Noninterest income		1,434,207			440,100			1,874,307			2,675,150		863,754			3,538,904
Securities gains, net		-			-			-			7,652		-			7,652
Noninterest expense		3,778,573			424,531			4,203,104			7,102,370		853,556			7,955,926
Income (loss) before taxes		(296,947	)		(12,469	)		(309,416	)		621,600		(45,908	)		575,692
Provision for income taxes		(183,400	)		3,000			(180,400	)		80,300		(4,200	)		76,100
Net income	$	(113,547	)	$	(15,469	)	$	(129,016	)	$	541,300	$	(41,708	)	$	499,592
Inter-segment revenue (expense)	$	177,922		$	(177,922	)	$	-		$	353,196	$	(353,196	)	$	-
Total assets	$	448,496,463		$	3,633,269		$	452,129,732		$	448,496,463	$	3,633,269		$	452,129,732
Total deposits	$	344,540,516		$	-		$	344,540,516		$	344,540,516	$	-		$	344,540,516