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Presidential Bank, FSB

Consolidated Statement of ConditionFiscal Year-End March 31, 2006

Assets

Cash and due from banks

$10,876,046

Federal funds sold

44,311,087

Investment securities - available-for-sale

5,555,763

Investment securities - held-to-maturity

5,087,161

Loans held for sale

21,752,075

Loans and leases receivable, net

359,944,184

Accrued interest receivable

2,143,943

Federal home loan bank stock, at cost

940,300

Bank premises and equipment, net

1,485,146

Deferred income taxes

450,850

Other assets

966,615

Total assets

$453,513,170


Liabilities and Equity

Deposits

$404,040,489

Mortgage funding and cashiers' checks outstanding

10,538,791

Advance payments from borrowers for taxes and insurance

1,228,389

Income taxes payable

343,293

Accrued expenses and other liabilities

1,179,773

Total liabilities

$417,330,735

Minor interest in subsidiary

124,937

Shareholders' equity

Capital stock ($1.00 par value)

428,829

Additional paid-in capital

6,381,193

Other comprehensive loss

(78,806)

Retained earnings

29,326,282

Total shareholders' equity

$36,057,498

Total liabilities and shareholders' equity

$453,513,170


NOTE: This statement has been prepared in accordance with the regulatory requirements of the Office of Thrift Supervision (OTS). Tangible, Core, and Total Capital are the elements of regulatory capital determined under such reporting requirements. Regulatory capital is the basis by which the OTS determines whether a savings association is operating in a safe and sound manner. As of March 31, 2006, Presidential Bank, FSB was in the "well capitalized" category as defined by OTS, with Core and Tangible Capital of $36,182,437 and Total Capital of $37,387,506, compared to the applicable minimum regulatory requirements of $6,804,911 for Tangible Capital, $18,146,428 for Core Capital, and $25,266,759 for Total Capital.

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