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Delaware		34-1877137
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

V. Gerard Comizio Thacher Profitt & Wood LLP 1700 Pennsylvania Avenue, NW, Suite 800 Washington, DC 20006 202.347.8400		Stanley E. Everett Brouse McDowell Suite 500, 388 South Main Street Akron, Ohio 44311 330.535.5711

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The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities, and it is not soliciting an offer to buy these securities, in any state where the offer or sale is not permitted.

		Per Share				Total
Public offering price		$				$
Underwriting commissions to be paid by us(1)		$				$
Net proceeds before expenses to be received by us		$				$

(1)	This is a firm commitment underwriting by Ryan Beck & Co. We will pay underwriting commissions on the sale of the shares of common stock to the public. Ryan Beck & Co. has been granted a 30-day option to purchase up to an additional 300,000 shares of common stock to cover over-allotments, if any. See “Underwriting.”

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Prospectus Summary		1
Risk Factors		5
Forward-Looking Statements		10
Use of Proceeds		11
Market for Our Common Stock and Dividends		12
Capitalization		13
Selected Consolidated Financial Information		14
Supplementary Consolidated Financial Information		17
Management’s Discussion and Analysis of Financial Condition and Results of Operations		19
Quantitative and Qualitative Disclosures about Market Risk		32
Business		33
Management		50
Regulation and Supervision		53
Description of Our Common Stock		62
Principal Stockholders		66
Underwriting		68
Interests of Named Experts and Counsel		70
Incorporation of Certain Information by Reference		70
Where You Can Find Additional Information		70
Commission Position on Indemnification for Securities Act Liabilities		70
Index to Financial Statements		F-1
EX-1 Underwriting Agreement
EX-23.1 Consent of Independent Public Accountants

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	•	Commercial Mortgage Loans. Repayment is dependent upon income being generated in amounts sufficient to cover operating expenses and debt service.
	•	Commercial Loans. Repayment is dependent upon the successful operation of the borrower’s business.
	•	Consumer Loans. Consumer loans (such as personal lines of credit) are collateralized, if at all, with assets that may not provide an adequate source of payment of the loan due to depreciation, damage, or loss.

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	•	announcements of developments related to our business,
	•	fluctuations in our results of operations,
	•	sales of substantial amounts of our securities into the marketplace,
	•	general conditions in our banking niche or the worldwide economy,
	•	a shortfall in revenues or earnings compared to securities analysts’ expectations,
	•	lack of an active trading market for the common stock,
	•	changes in analysts’ recommendations or projections, and
	•	our announcement of new acquisitions or other projects.

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			High				Low				Dividend
2005
	Third Quarter		$	10.49			$	8.07			$	0.09
	Second Quarter			10.99				9.53				0.09
	First Quarter			13.72				10.15				0.09
2004
	Fourth Quarter		$	13.73			$	10.95			$	0.09
	Third Quarter			15.22				11.25				0.09
	Second Quarter			18.00				12.35				0.09
	First Quarter			16.10				12.00				0.09
2003
	Fourth Quarter		$	16.18			$	13.60			$	0.09
	Third Quarter			14.00				10.70				0.09
	Second Quarter			13.13				10.49				0.09
	First Quarter			11.03				9.28				0.09

Number of

Number of

Securities to be

Securities

Issued Upon

Weighted-Average

Remaining

Exercise of

Exercise Price of

Available for Future

Outstanding

Outstanding

Issuance under

Options, Warrants

Options, Warrants

Equity

Plan Category

and Rights

and Rights

Compensation Plans

Equity compensation plans approved by shareholders

300,872

$

11.33

10,000

Equity compensation plans not approved by shareholders

—

—

Total

300,872

$

11.33

10,000

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			At September 30, 2005
							Pro Forma
			Actual				Adjustments				Pro Forma
			(Dollars in thousands)
Long term debt:
	Subordinated debentures		$	5,155							$	5,155
	Total indebtedness			5,155								5,155
Shareholders’ equity:
	Preferred stock, 1,000,000 shares authorized, none issued			—								—
	Common stock, $.01 par value, 6,000,000 shares authorized:
	2,312,195 shares issued before the offering
	(4,312,195 shares pro forma)(1)			23				20				43
	Additional paid-in capital(1)			12,801				14,370				27,171
	Retained earnings			5,179								5,179
	Accumulated other comprehensive income			316								316
	Unearned stock based incentive plan shares			(354	)							(354	)
	Treasury stock, at cost, 68,533 shares			(783	)							(783	)
	Total shareholders’ equity			17,182				14,390				31,572
	Total capitalization		$	22,337			$	14,390			$	36,727

(1)	Assumes the sale of 2,000,000 shares of common stock in this offering, generating net proceeds of $14.4 million after deducting offering expenses.

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						At December 31,
		At September 30,
		2005				2004				2003				2002				2001				2000
		(Unaudited)
						(Dollars in thousands)
Selected Financial Condition Data:
Total assets		$	157,853			$	171,005			$	107,011			$	110,551			$	120,927			$	140,933
Cash and cash equivalents			2,335				32,675				8,936				12,861				4,329				2,930
Securities available for sale			33,321				13,508				27,126				1,439				2,092				3,090
Securities held to maturity			—				—				—				17,822				23,343				35,796
Loans, net(1)			106,999				108,149				58,024				62,565				70,570				86,265
Goodwill			—				1,749				—				—				—				—
Other intangible assets			—				299				—				—				—				—
Deposits			120,745				101,624				73,358				74,690				76,168				73,997
FHLB advances			13,945				41,170				7,500				11,430				18,393				40,536
Other borrowings			—				2,249				—				4,900				7,000				7,000
Subordinated debentures			5,155				5,155				5,155				—				—				—
Total shareholders’ equity			17,182				19,507				19,856				17,583				18,160				17,833

				For the
				Nine Months Ended
				September 30,								For the Year Ended December 31,
				2005				2004				2004				2003				2002				2001				2000
				(Unaudited)								(Dollars in thousands)
Summary of Earnings:
Total interest income				$	6,223			$	4,260			$	6,144			$	5,435			$	7,067			$	9,588			$	9,834
Total interest expense					2,585				1,405				2,149				3,521				3,462				5,299				5,802
	Net interest income				3,638				2,855				3,995				1,914				3,605				4,289				4,032
Provision for loan losses					402				366				646				102				19				62				—
	Net interest income after provision for loan losses				3,236				2,489				3,349				1,812				3,586				4,227				4,032
Noninterest income
	Net gain (loss) on sale of securities				—				(55	)			(55	)			42				16				15				10
	Other				673				337				592				714				549				169				284
		Total noninterest income			673				282				537				756				565				184				294
Impairment loss on goodwill and intangibles					1,966				—				—				—				—				—				—
Noninterest expense					5,117				4,671				6,420				5,930				3,164				3,501				3,900
		Total noninterest expense			7,083				4,671				6,420				5,930				3,164				3,501				3,900
Income (loss) before income taxes					(3,174	)			(1,900	)			(2,534	)			(3,362	)			987				910				426
Income tax expense (benefit)					(547	)			(683	)			(872	)			(988	)			313				312				150
		Net income (loss)		$	(2,627	)		$	(1,217	)		$	(1,662	)		$	(2,374	)		$	674			$	598			$	276

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		At or For the Nine
		Months Ended
		September 30,								At or For the Year Ended December 31,
		2005(2)				2004				2004				2003				2002				2001				2000
		(Unaudited)
Selected Financial Ratios and Other Data:
Performance Ratios:(3)
Return on average assets			(2.19	)%			(1.30	)%			(1.23	)%			(2.19	)%			0.58	%			0.45	%			0.02	%
Return on average equity			(18.22	)%			(8.48	)%			(8.60	)%			(12.34	)%			3.76	%			3.32	%			1.27	%
Average yield on interest-earning assets(4)			5.78	%			5.04	%			5.03	%			5.62	%			6.98	%			7.71	%			7.42	%
Average rate paid on interest-bearing liabilities			2.60	%			1.84	%			1.93	%			2.63	%			3.63	%			4.65	%			5.01	%
Average interest rate spread(5)			3.18	%			3.20	%			3.10	%			2.99	%			3.35	%			3.06	%			2.21	%
Net interest margin, fully taxable equivalent(6)(7)			3.38	%			3.38	%			3.27	%			3.28	%			3.56	%			3.45	%			2.96	%
Interest-earning assets to interest-bearing liabilities			108.4	%			110.9	%			109.8	%			113.4	%			106.1	%			109.2	%			120.2	%
Efficiency ratio(8)			164.3	%			146.3	%			140.0	%			225.7	%			76.2	%			78.5	%			90.4	%
Noninterest expense to average assets			5.9	%			5.0	%			4.7	%			5.5	%			2.7	%			2.6	%			2.8	%
Dividend payout ratio			n/m				n/m				n/m				n/m				83.7	%			81.6	%			n/m
Capital Ratios:(2)
Equity to total assets at end of period			10.88	%			12.39	%			11.41	%			18.56	%			15.90	%			15.02	%			12.65	%
Average equity to average assets			12.02	%			15.30	%			14.26	%			17.76	%			15.54	%			13.54	%			15.68	%
Tangible capital ratio(9)			7.82	%			9.51	%			8.10	%			13.90	%			18.90	%			18.40	%			15.60	%
Core capital ratio(9)			7.82	%			9.51	%			8.10	%			13.90	%			18.90	%			18.40	%			15.60	%
Risk-based capital ratio(9)			11.48	%			14.55	%			12.20	%			21.60	%			38.60	%			35.70	%			32.40	%
Asset Quality Ratios:(2)
Nonperforming loans to total loans(10)			0.56	%			0.17	%			0.26	%			1.28	%			1.25	%			1.25	%			0.56	%
Nonperforming assets to total assets(11)			0.40	%			0.56	%			0.24	%			0.87	%			0.71	%			0.81	%			0.35	%
Allowance for loan losses to total loans			1.13	%			0.77	%			0.90	%			0.71	%			0.57	%			0.53	%			0.41	%
Allowance for loan losses to nonperforming loans(10)			202.2	%			451.6	%			342.0	%			56.0	%			46.2	%			42.2	%			72.4	%
Net charge-offs to average loans			0.18	%			0.06	%			0.10	%			0.08	%			0.05	%			0.05	%			0.02	%
Per Share Data:
Basic earnings (loss) per share		$	(1.19	)		$	(0.61	)		$	(0.82	)		$	(1.31	)		$	0.44			$	0.38			$	0.17
Diluted earnings (loss) per share			(1.19	)			(0.61	)			(0.82	)			(1.31	)			0.43				0.38				0.17
Dividends declared(12)			0.27				0.27				0.36				0.36				0.36				0.31				6.25
Tangible book value per share at end of period			7.66				8.92				7.99				9.81				10.68				10.42				10.19

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(1)		Loans, net represents gross loans receivable net of the allowance for loan losses, loans in process and deferred loan origination fees.
(2)		Performance ratios for the nine months ended September 30, 2005 were significantly affected by the pre-tax $2.0 million impairment loss on goodwill and intangibles

Following are performance ratios excluding this charge:
Return on average assets			(0.61	)%
Return on average equity			(5.04	)%
Efficiency ratio			118.7	%
Ratio of noninterest expense to average assets			4.3	%
Reconciliation of GAAP net loss to loss excluding the impairment loss on goodwill and intangibles
GAAP net loss		$	(2,627	)
Impairment loss on goodwill and intangibles net of tax			1,893
Loss excluding impairment loss on goodwill and intangibles		$	(734	)

(3)		Asset quality ratios and capital ratios are end-of-period ratios. All other ratios are based on average monthly balances during the indicated periods.
(4)		Calculations of yield are presented on a taxable equivalent basis using the federal income tax rate of 34%.
(5)		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.
(6)		The net interest margin represents net interest income as a percent of average interest-earning assets.
(7)		Calculated excluding the $1.3 million penalty on payment of FHLB advances in 2003
(8)		The efficiency ratio equals noninterest expense divided by net interest income plus noninterest income (excluding gains or losses on securities transactions).
(9)		Regulatory capital ratios of CFBank.
(10)		Nonperforming loans consist of nonaccrual loans and other loans 90 days or more past due.
(11)		Nonperforming assets consist of nonperforming loans, other repossessed assets and REO.
(12)		We paid a return of capital dividend of $6.00 per share in 2000.

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			March 31				June 30				September 30				December 31
2005
Total interest income			$	1,938			$	2,098			$	2,187
Total interest expense				769				856				960
	Net interest income			1,169				1,242				1,227
Provision for loan losses				218				134				50
	Net interest income after provision for loan losses			951				1,108				1,177
Total noninterest income				299				213				161
Impairment loss on goodwill and intangibles(1)				—				—				1,966
Total noninterest expense				1,702				1,738				1,677
	Loss before income tax			(452	)			(417	)			(2,305	)
Income tax benefit				(163	)			(147	)			(237	)
Net loss			$	(289	)		$	(270	)		$	(2,068	)
Basic loss per share			$	(0.13	)		$	(0.12	)		$	(0.94	)
Diluted loss per share			$	(0.13	)		$	(0.12	)		$	(0.94	)
2004
Total interest income			$	1,271			$	1,372			$	1,617			$	1,884
Total interest expense				400				441				564				744
	Net interest income			871				931				1,053				1,140
Provision for loan losses				36				34				296				280
	Net interest income after provision for loan losses			835				897				757				860
Total noninterest income				92				134				56				255
Total noninterest expense				1,355				1,483				1,833				1,749
	Loss before income tax			(428	)			(452	)			(1,020	)			(634	)
Income tax benefit				(160	)			(168	)			(355	)			(189	)
Net loss			$	(268	)		$	(284	)		$	(665	)		$	(445	)
Basic loss per share			$	(0.13	)		$	(0.14	)		$	(0.33	)		$	(0.21	)
Diluted loss per share			$	(0.13	)		$	(0.14	)		$	(0.33	)		$	(0.21	)
2003
Total interest income			$	1,488			$	1,355			$	1,425			$	1,167
Total interest expense(2)				601				516				612				1,792
	Net interest income			887				839				813				(625	)
Provision for loan losses				—				83				—				19
	Net interest income after provision for loan losses			887				756				813				(644	)
Total noninterest income				171				211				234				140
Total noninterest expense(3)				2,770				675				1,129				1,356
	Income before income tax			(1,712	)			292				(82	)			(1,860	)
Income tax expense (benefit)				(589	)			240				(48	)			(591	)

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		March 31				June 30				September 30				December 31
Net income (loss)		$	(1,123	)		$	52			$	(34	)		$	(1,269	)
Basic earnings (loss) per share		$	(0.74	)		$	0.03			$	(0.02	)		$	(0.64	)
Diluted earnings (loss) per share		$	(0.74	)		$	0.03			$	(0.02	)		$	(0.64	)

(1)		The quarter ended September 30, 2005 includes $2.0 million pre-tax impairment loss on goodwill and intangibles.
(2)		Interest expense during the quarter ended December 31, 2003 included a $1.3 million penalty on prepayment of FHLB advances.
(3)		Noninterest expense during the quarter ended March 31, 2003 included $1.8 million in salaries and benefits expense related to restructuring of employee benefit plans and payments on agreements with former executives.

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			For the Nine Months Ended September 30,
			2005												2004
			Average				Interest				Average				Average				Interest				Average
			Outstanding				Earned/				Yield/				Outstanding				Earned/				Yield/
			Balance				Paid				Rate				Balance				Paid				Rate
			(Dollars in thousands)
Interest-earning assets:
Securities(1)(2)			$	23,375			$	727				4.19	%		$	21,768			$	650				4.01	%
Loans(3)				112,002				5,274				6.28	%			74,404				3,328				5.96	%
Other earning assets				4,490				86				2.55	%			13,189				180				1.82	%
FHLB stock				3,836				136				4.73	%			3,675				112				4.06	%
	Total interest-earning assets			143,703				6,223				5.78	%			113,036				4,270				5.04	%
Noninterest-earning assets				16,224												12,103
	Total assets		$	159,927											$	125,139
Interest-bearing liabilities:
Deposits				108,135				1,939				2.39	%			76,243				993				1.74	%
FHLB advances and other borrowings(4)				24,416				646				3.53	%			25,702				412				2.14	%
	Total interest-bearing liabilities			132,551				2,585				2.60	%			101,945				1,405				1.84	%
Noninterest-bearing liabilities				8,156												4,052
	Total liabilities			140,707												105,997
Equity				19,220												19,142
	Total liabilities and equity		$	159,927											$	125,139
Net interest-earning assets			$	11,152											$	11,091
Net interest income/interest rate spread							$	3,638				3.18	%						$	2,865				3.20	%
Net interest margin												3.38	%											3.38	%
Average interest-earning assets to average interest-bearing liabilities				108.4	%											110.9	%

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			For the Year Ended December 31,
			2004												2003
			Average				Interest				Average				Average				Interest				Average
			Outstanding				Earned/				Yield/				Outstanding				Earned/				Yield/
			Balance				Paid				Rate				Balance				Paid				Rate
			(Dollars in thousands)
Interest-earning assets:
Securities(1)(2)			$	19,605			$	780				4.01	%		$	23,675			$	942				4.02	%
Loans(3)				81,900				4,855				5.93	%			57,449				4,203				7.32	%
Other earning assets				17,329				367				2.12	%			12,410				152				1.22	%
FHLB stock				3,694				152				4.11	%			3,557				141				3.96	%
	Total interest-earning assets			122,528				6,154				5.03	%			97,091				5,438				5.62	%
Noninterest-earning assets				13,034												11,268
	Total assets		$	135,562											$	108,359
Interest-bearing liabilities:
Deposits				80,305				1,436				1.79	%		$	73,440				1,570				2.14	%
FHLB advances and other borrowings(4)				31,265				713				2.28	%			12,192				681				5.59	%
	Total interest-bearing liabilities			111,570				2,149				1.93	%			85,632				2,251				2.63	%
Noninterest-bearing liabilities				4,658												3,484
	Total liabilities			116,228												89,116
Equity				19,334												19,243
	Total liabilities and equity		$	135,562											$	108,359
Net interest-earning assets			$	10,958											$	11,459
Net interest income/interest rate spread							$	4,005				3.10	%						$	3,187				2.99	%
Net interest margin												3.27	%											3.28	%
Average interest-earning assets to average interest-bearing liabilities				109.8	%											113.4	%

(1)	Includes securities available for sale and held to maturity. 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 $1.3 million penalty on prepayment of FHLB advances in 2003.

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			Nine Months Ended												Year Ended
			September 30, 2005												December 31, 2004
			Compared to Nine Months Ended												Compared to Year Ended
			September 30, 2004												December 31, 2003
			Increase (decrease)												Increase (decrease)
			due to												due to
			Rate				Volume				Net				Rate				Volume				Net
			(Dollars in thousands)
Interest-earning assets:
Securities(1)			$	28			$	49			$	77			$	(2	)		$	(160	)		$	(162	)
Loans				184				1,762				1,946				(904	)			1,556				652
Other earning assets				84				(178	)			(94	)			140				75				215
FHLB stock				19				5				24				6				5				11
	Total interest-earning assets			315				1,638				1,953				(760	)			1,476				716
Interest-bearing liabilities:
Deposits				448				498				946				(272	)			138				(134	)
FHLB advances and other borrowings(2)				268				(34	)			234				(576	)			608				32
	Total interest-bearing liabilities			716				464				1,180				(848	)			746				(102	)
Net change in net interest income			$	(401	)		$	1,174			$	773			$	88			$	730			$	818

(1)	Securities amounts presented on a fully taxable equivalent basis.
(2)	Amounts do not include $1.3 million penalty on prepayment of FHLB advances in 2003.

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Basis Point Change in Rates		NPV Ratio
+300			10.91	%
+200			11.29	%
+100			11.55	%
0			11.63	%
-100			11.42	%
-200			11.00	%

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												At December 31,
				At September 30,
				2005								2004								2003								2002
								Percent								Percent								Percent								Percent
								of								of								of								of
				Amount				Total				Amount				Total				Amount				Total				Amount				Total
				(Dollars in thousands)
Real estate mortgage loans:
	Single-family			$	23,352				21.6	%		$	41,450				38.0	%		$	34,810				59.6	%		$	47,108				74.8	%
	Multi-family				25,620				23.6	%			25,602				23.4	%			1,250				2.1	%			1,536				2.5	%
	Construction				—				0.0	%			1,127				1.0	%			610				1.1	%			134				0.2	%
	Commercial real estate				26,753				24.7	%			20,105				18.4	%			5,040				8.6	%			—				0.0	%
		Total real estate mortgage loans			75,725				69.9	%			88,284				80.8	%			41,710				71.4	%			48,778				77.5	%
Consumer loans:
	Home equity loans				880				0.8	%			663				0.6	%			1,003				1.7	%			1,378				2.2	%
	Home equity lines of credit				13,921				12.9	%			5,928				5.4	%			1,640				2.8	%			1,109				1.8	%
	Automobile				4,684				4.3	%			6,735				6.2	%			9,292				15.9	%			10,540				16.7	%
	Other				696				0.6	%			626				0.6	%			663				1.2	%			877				1.4	%
		Total consumer loans			20,181				18.6	%			13,952				12.8	%			12,598				21.6	%			13,904				22.1	%
Commercial loans					12,481				11.5	%			7,030				6.4	%			4,116				7.0	%			261				0.4	%
		Total loans receivable			108,387				100.0	%			109,266				100.0	%			58,424				100.0	%			62,943				100.0	%
Less:
	Net deferred loan fees				(163	)							(139	)							15								(17	)
	Allowance for loan losses				(1,225	)							(978	)							(415	)							(361	)
Loans receivable, net				$	106,999							$	108,149							$	58,024							$	62,565

					At September 30, 2005
					Single-family,
					Multi-family
					and								Commercial
					Construction								and
					Real Estate								Commercial				Total Loans
					Mortgage				Consumer				Real Estate				Receivable
					(Dollars in thousands)
Amounts due:
	Within one year				$	1,329			$	2,273			$	11,080			$	14,682
	After one year:
		More than 1 year to 3 years				327				2,449				4,115				6,891
		More than 3 years to 5 years				420				3,813				6,143				10,376
		More than 5 years to 10 years				21,182				1,333				6,330				28,845
		More than 10 years to 15 years				8,017				39				7,981				16,037
		More than 15 years				17,697				10,274				3,585				31,556
			Total due after one year			47,643				17,908				28,154				93,705
	Total amount due				$	48,972			$	20,181			$	39,234			$	108,387

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					At December 31, 2004
					Single-family,
					Multi-family
					and								Commercial
					Construction								and
					Real Estate								Commercial				Total Loans
					Mortgage				Consumer				Real Estate				Receivable
					(Dollars in thousands)
Amounts due:
	Within one year				$	1,027			$	625			$	6,264			$	7,916
	After one year:
		More than 1 year to 3 years				2,483				2,549				2,874				7,906
		More than 3 years to 5 years				1,257				4,359				3,219				8,835
		More than 5 years to 10 years				24,197				1,801				3,995				29,993
		More than 10 years to 15 years				13,074				—				7,831				20,905
		More than 15 years				26,141				4,618				2,952				33,711
			Total due after one year			67,152				13,327				20,871				101,350
	Total amount due				$	68,179			$	13,952			$	27,135			$	109,266

			Due after September 30, 2006
			Fixed				Adjustable				Total
			(Dollars in thousands)
Single-family, multi-family and construction real estate mortgage loans			$	10,805			$	36,838			$	47,643
Consumer loans				5,483				12,425				17,908
Commercial and commercial real estate loans				7,544				20,610				28,154
	Total loans		$	23,832			$	69,873			$	93,705

			Due after December 31, 2005
			Fixed				Adjustable				Total
			(Dollars in thousands)
Single-family, multi-family and construction real estate mortgage loans			$	21,131			$	46,021			$	67,152
Consumer loans				7,407				5,920				13,327
Commercial and commercial real estate loans				5,386				15,485				20,871
	Total loans		$	33,924			$	67,426			$	101,350

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				September 30, 2005																December 31, 2004
				60-89 Days								90 Days or More								60-89 Days								90 Days or More
				Number				Principal				Number				Principal				Number				Principal				Number				Principal
				of				Balance				of				Balance				of				Balance				of				Balance
				Loans				of Loans				Loans				of Loans				Loans				of Loans				Loans				of Loans
				(Dollars in thousands)
Real estate loans:
	Single-family				—			$	—				9			$	590				2			$	49				8			$	276
	Multi-family				—				—				—				—				—				—				—				—
	Construction				—				—				—				—				—				—				—				—
	Commercial				—				—				—				—				—				—				—				—
Consumer loans:
	Home equity loans and lines of credit				—				—				—				—				1				7				—				—
	Automobile				3				10				2				16				5				43				2				9
	Unsecured lines of credit				—				—				—				—				—				—				—				—
	Other				2				2				—				—				—				—				1				1
Commercial loans					—				—				—				—				—				—				—				—
		Total delinquent loans			5			$	12				11			$	606				8			$	99				11			$	286
Delinquent loans as a percent of total loans									0.01	%							0.56	%							0.09	%							0.26	%

			December 31, 2003																December 31, 2002
			60-89 Days								90 Days or More								60-89 Days								90 Days or More
			Number				Principal				Number				Principal				Number				Principal				Number				Principal
			of				Balance				of				Balance				of				Balance				of				Balance
			Loans				of Loans				Loans				of Loans				Loans				of Loans				Loans				of Loans
			(Dollars in thousands)
Real estate loans:
	Single-family			3			$	97				9			$	714				10			$	559				10			$	761
	Multi-family			—				—				—				—				—				—				—				—
	Construction			—				—				—				—				—				—				—				—
	Commercial			—				—				—				—				—				—				—				—
Consumer loans:
	Home equity loans and lines of credit			3				37				—				—				—				—				—				—
	Automobile			2				13				2				6				1				5				3				19
	Unsecured lines of credit			—				—				1				1				—				—				1				1
	Other			—				—				4				20				2				6				—				—
Commercial loans				1				25				—				—				—				—				—				—
	Total delinquent loans			9			$	172				16			$	741				13			$	570				14			$	781
Delinquent loans as a percent of total loans								0.30	%							1.28	%							0.91	%							1.24	%

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								At December 31,
				At September 30,
				2005				2004				2003				2002
				(Dollars in thousands)
Nonaccrual loans:
	Single-family real estate			$	590			$	276			$	714			$	761
	Consumer				16				10				27				20
		Total(1)			606				286				741				781
Real estate owned (REO)					33				132				184				—
Other repossessed assets					—				—				9				2
		Total nonperforming assets(2)		$	639			$	418			$	934			$	783
Nonperforming loans to total loans					0.56	%			0.26	%			1.28	%			1.25	%
Nonperforming assets to total assets					0.40	%			0.24	%			0.87	%			0.71	%

(1)	Total nonaccrual loans equal total nonperforming loans.
(2)	Nonperforming assets consist of nonperforming loans (and impaired loans), other repossessed assets and REO.

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				At or For the								At or For the
				Nine Months Ended								Year Ended
				September 30,								December 31,
				2005				2004				2004				2003				2002
				(Dollars in thousands)
Allowance for loan losses, beginning of period				$	978			$	415			$	415			$	361			$	373
Charge-offs:
	Single-family real estate				148				—				—				—				—
	Consumer				52				50				117				50				35
		Total charge-offs			200				50				117				50				35
Recoveries on loans previously charged off:
	Single-family real estate				9				—				—				—				—
	Consumer				36				16				34				2				4
		Total recoveries			45				16				34				2				4
Net charge-offs					155				34				83				48				31
Provision for loan losses					402				366				646				102				19
Allowance for loan losses, end of period				$	1,225			$	747			$	978			$	415			$	361
Allowance for loan losses to total loans					1.13	%			0.77	%			0.90	%			0.71	%			0.57	%
Allowance for loan losses to nonperforming loans					202.23	%			451.55	%			341.96	%			56.01	%			46.22	%
Net charge-offs to the allowance for losses					16.87	%			6.07	%			8.49	%			11.57	%			8.59	%
Net charge-offs to average loans					0.18	%			0.06	%			0.10	%			0.08	%			0.05	%

			At September 30 2005												At December 31, 2004
							% of												% of
							Allowance				Percent of								Allowance				Percent of
							in each				Loans in								in each				Loans in
							Category				Each								Category				Each
							to Total				Category to								to Total				Category to
			Amount				Allowance				Total Loans				Amount				Allowance				Total Loans
			(Dollars in thousands)
Single-family real estate mortgage and
	construction loans		$	55				4.5	%			21.6	%		$	4				0.4	%			39.0	%
Consumer loans				114				9.3	%			18.6	%			112				11.5	%			12.8	%
Commercial, commercial real estate and multi-family mortgage loans				1,056				86.2	%			59.8	%			862				88.1	%			48.2	%
Total allowance for loan losses			$	1,225				100.0	%			100.0	%		$	978				100.0	%			100.0	%

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		At December 31,
		2003												2002
						% of				Percent of								% of
						Allowance				Loans in								Allowance				Percent of
						in each				Each								in each				Loans in
						Category				Category								Category				Each
						to Total				to Total								to Total				Category to
		Amount				Allowance				Loans				Amount				Allowance				Total Loans
		(Dollars in thousands)
Single-family real estate mortgage and construction loans		$	213				51.3	%			60.7	%		$	296				82.0	%			75.0	%
Consumer loans			102				24.6	%			21.6	%			64				17.7	%			22.1	%
Commercial, commercial real estate and multi-family mortgage loans			100				24.1	%			17.7	%			1				0.3	%			2.9	%
Total allowance for loan losses		$	415				100.0	%			100.0	%		$	361				100.0	%			100.0	%

Net Book Value of

Property or

Leasehold

Original Year

Date of Lease

Improvements at

Location

Leased or Owned

Leased or Acquired

Expiration

December 31, 2004

2923 Smith Road

Fairlawn, Ohio 44333

Leased

2004

2014

$

259,000

601 Main Street

Wellsville, Ohio 43968

Owned

1989

—

751,000

49028 Foulks Drive

East Liverpool, Ohio 43920

Owned

1979

—

327,000

4249 Easton Way, Suite 125

Columbus, Ohio 43219

Leased

2003

2009

15,000

Reserve Mortgage Services

1730 Akron-Peninsula Road

Akron, Ohio 44313

Leased

2004

2009

44,000

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														At December 31,
						At September 30,
						2005								2004								2003								2002
						Amortized				Fair				Amortized				Fair				Amortized				Fair				Amortized				Fair
						Cost				Value				Cost				Value				Cost				Value				Cost				Value
						(Dollars in thousands)
Securities available for sale:
	Federal agency					$	6,007			$	5,907			$	5,018			$	4,983			$	12,755			$	12,759			$	—			$	—
	Municipal						2,020				2,011				—				—				1,370				1,375				—				—
		Total securities available for sale					8,027				7,918				5,018				4,983				14,125				14,134				—				—
Securities held to maturity:
	U.S. Government and federal agency						—				—				—				—				—				—				2,527				2,557
	Corporate						—				—				—				—				—				—				1,996				1,996
		Total securities held to maturity					—				—				—				—				—				—				4,523				4,553
			Total federal agency and municipal securities				8,027				7,918				5,018				4,983				14,125				14,134				4,523				4,553
Mortgage-backed securities:
	Available for sale						24,814				25,403				8,398				8,525				12,697				12,992				1,395				1,439
	Held to maturity						—				—				—				—				—				—				13,299				13,616
				Total mortgage-backed securities			24,814				25,403				8,398				8,525				12,697				12,992				14,694				15,055
Net unrealized gains on securities available for sale							480				—				92				—				304				—				44				—
Total securities						$	33,321			$	33,321			$	13,508			$	13,508			$	27,126			$	27,126			$	19,261			$	19,608

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		At September 30, 2005
										More than One								More than Five								More than
		One Year or Less								Year to Five Years								Years to Ten Years								Ten Years								Total
						Weighted								Weighted								Weighted								Weighted								Weighted
		Carrying				Average				Carrying				Average				Carrying				Average				Carrying				Average				Carrying				Average
		Value				Yield				Value				Yield				Value				Yield				Value				Yield				Value				Yield
		(Dollars in thousands)
Federal agency		$	—				—			$	5,907				3.52	%		$	—							$	—							$	5,907				3.52	%
Mortgage-backed			—				—				353				5.38	%			3,484				4.94	%			21,566				5.37	%			25,403				5.31	%
Municipal			—				—				1,003				4.12	%			1,008				4.34	%			—								2,011				4.23	%
Total securities at fair value		$	—				—			$	7,263				3.70	%		$	4,492				4.80	%		$	21,566				5.37	%		$	33,321				4.93	%

		At December 31, 2004
										More than One								More than Five								More than
		One Year or Less								Year to Five Years								Years to Ten Years								Ten Years								Total
						Weighted								Weighted								Weighted								Weighted								Weighted
		Carrying				Average				Carrying				Average				Carrying				Average				Carrying				Average				Carrying				Average
		Value				Yield				Value				Yield				Value				Yield				Value				Yield				Value				Yield
		(Dollars in thousands)
Federal agency		$	—				—			$	4,983				3.37	%		$	—			$	—											$	4,983				3.37%
Mortgage-backed			—				—				496				5.35	%			3,197				4.55	%			4,832				4.95%				8,525				4.82%
Total securities at fair value		$	—				—			$	5,479				3.55	%		$	3,197				4.55	%		$	4,832				4.95%			$	13,508				4.28%

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							Weighted
							Average
Maturity Period			Amount				Rate
			(Dollars in thousands)
Three months or less			$	5,013				3.29	%
Over 3 through 6 months				4,054				3.37	%
Over 6 through 12 months				3,962				3.71	%
Over 12 months				8,620				3.96	%
	Total		$	21,649

							Weighted
							Average
Maturity Period			Amount				Rate
			(Dollars in thousands)
Three months or less			$	3,704				2.47	%
Over 3 through 6 months				226				1.82	%
Over 6 through 12 months				2,834				2.80	%
Over 12 months				4,495				3.67	%
	Total		$	11,259

														For the Year Ended December 31,
		For the Nine Months Ended
		September 30, 2005												2004												2003												2002
						Percent of												Percent of												Percent of												Percent of
						Total				Average								Total				Average								Total				Average								Total				Average
		Average				Average				Rate				Average				Average				Rate				Average				Average				Rate				Average				Average				Rate
		Balance				Deposits				Paid				Balance				Deposits				Paid				Balance				Deposits				Paid				Balance				Deposits				Paid
		(Dollars in thousands)
Interest-bearing checking accounts		$	11,389				9.9	%			1.42	%		$	11,602				13.8	%			0.58	%		$	8,463				11.3	%			0.86	%		$	8,748				11.5	%			1.66	%
Money market accounts			22,590				19.6	%			2.70	%			10,688				12.7	%			2.34	%			7,843				10.4	%			1.40	%			6,146				8.1	%			1.49	%
Savings accounts			16,614				14.4	%			0.61	%			18,730				22.3	%			0.57	%			18,373				24.4	%			0.82	%			17,812				23.3	%			1.69	%
Certificates of deposit			57,542				49.9	%			2.98	%			39,285				46.8	%			2.57	%			38,761				51.5	%			3.24	%			42,792				56.1	%			4.63	%
Noninterest-bearing deposits:
Demand deposits			7,140				6.2	%			—				3,674				4.4	%			—				1,781				2.4	%			—				754				1.0	%			—
Total average deposits		$	115,275				100.0	%			2.39	%		$	83,979				100.0	%			1.79	%		$	75,221				100.0	%			2.14	%		$	76,252				100.0	%			3.31	%

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		Period to Maturity from September 30, 2005
										Two to				Over				At				At December 31,
		Less than				One to				Three				Three				September 30,
		One Year				Two Years				Years				Years				2005				2004				2003				2002
		(Dollars in thousands)
Certificate accounts:
0 to 1.99%		$	6,084			$	40			$	—			$	—			$	6,124			$	11,847			$	8,148			$	5,980
2.00 to 2.99%			7,897				3,786				213				—				11,896				17,555				10,123				5,723
3.00 to 3.99%			18,938				3,849				1,515				1,271				25,573				9,984				11,221				11,656
4.00 to 4.99%			4,915				11,806				650				2,645				20,016				6,273				6,152				12,167
5.00 to 5.99%			437				—				—				—				437				655				977				3,421
6.00% and above			—				10				—				—				10				10				72				1,774
Total certificate accounts		$	38,271			$	19,491			$	2,378			$	3,916			$	64,056			$	46,324			$	36,693			$	40,721

			At or For the
			Nine Months				At or For the Year Ended
			Ended				December 31,
			September 30,
			2005				2004				2003				2002
							(Dollars in thousands)
FHLB advances and other borrowings:
	Average balance outstanding		$	24,416				31,265			$	12,192			$	19,902
	Maximum amount outstanding at any month-end during the period			47,062				48,574				16,542				19,370
	Balance outstanding at end of period			19,100				48,574				12,655				16,330
	Weighted average interest rate during period			3.53	%			2.28	%			5.59	%			4.83	%
	Weighted average interest rate at end of period			4.03	%			2.76	%			2.28	%			5.53	%

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										Excess				Capital
		Actual				Required				(Deficiency)				Actual				Required
		Capital				Capital				Amount				Percent				Percent
		(Dollars in thousands)
Tangible		$	12,165			$	2,334			$	9,831				7.8	%			1.5	%
Core (Leverage)			12,165				6,225				5,940				7.8	%			4.0	%
Risk-based			13,390				9,334				4,056				11.5	%			8.0	%

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	•	Pursuant to Section 352, all financial institutions must establish anti-money laundering programs that include, at minimum: (i) internal policies, procedures, and controls; (ii) specific designation of an anti-money laundering compliance officer; (iii) ongoing employee training programs; and (iv) an independent audit function to test the anti-money laundering program.
	•	Pursuant to Section 326, on May 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 1, 2003.

	•	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 will be subject to certain record keeping obligations with respect to correspondent accounts of foreign banks.
	•	Bank regulators are directed to consider a holding company’s effectiveness in combating money laundering when ruling on FRA and Bank Merger Act applications.

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	Federal Taxation

	Ohio Taxation

60

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	Delaware Taxation

61

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		Amount and Nature
		of Beneficial
		Ownership
Name and Address of Beneficial Owner		Shares				Percent
First Manhattan Company 437 Madison Avenue, New York, New York 10022			159,464				7.1	%
Richard J. O’Donnell 2923 Smith Road, Fairlawn, Ohio 44333			128,077				5.7	%

		Amount and Nature
		of Beneficial
		Ownership
Name and Address of Beneficial Owner		Shares				Percent
David C. Vernon, Chairman of the Board(1)			98,177				4.3	%
Mark S. Allio, Vice-Chairman of the Board, President and Chief Executive Officer(2)			48,451				2.2	%
Jeffrey W. Aldrich, Director(3)			34,790				1.5	%
Thomas P. Ash, Director(4)			34,572				1.5	%
William R. Downing, Director(5)			18,692				0.8	%
Gerry W. Grace, Director(4)			44,572				2.0	%
Jerry F. Whitmer, Director(6)			7,500				0.3	%
Raymond E. Heh, President and Chief Operating Officer, CFBank(7)			32,132				1.4	%
Therese A. Liutkus, CPA, Treasurer & Chief Financial Officer(8)			21,000				0.9	%
R. Parker MacDonell, President, Columbus Region, CFBank(9)			72,171				3.2	%
Eloise L. Mackus, Senior Vice President, General Counsel and Secretary(10)			23,000				1.0	%
Timothy M. O’Brien, Senior Vice President, Mortgage Services, CFBank			—				—
Richard J. O’Donnell, President, Mortgage Services, CFBank(11)			128,077				5.7	%
William R. Reed, Senior Credit Officer			—				—
All directors and executive officers of Central Federal Corporation and CFBank as a group (14 persons)(12)			563,124				23.4	%

	(1)	Includes 12,235 shares awarded to Mr. Vernon pursuant to our equity compensation plans which have not yet vested, but as to which he may provide voting recommendations. Includes 54,390 shares which may be acquired by exercising stock options within 60 days. Also includes 412 shares owned by Catherine Vernon, Mr. Vernon’s spouse.
	(2)	Includes 6,000 shares awarded to Mr. Allio pursuant to our equity compensation plans, which have not yet vested, but as to which he may provide voting recommendations.
	(3)	Includes 1,000 shares awarded to Mr. Aldrich pursuant to pursuant to our equity compensation plans, which have not yet vested, but as to which he may provide voting recommendations, and 9,694 shares which may be acquired by exercising stock options within 60 days. Also includes 23,104 shares owned by Jean Aldrich, Mr. Aldrich’s spouse.
	(4)	Includes 1,000 shares awarded to each of Mr. Ash and Mr. Grace pursuant to pursuant to our equity compensation plans, which have not yet vested, but as to which he may provide voting recommendations, and 9,694 shares which may be acquired by exercising stock options within 60 days.

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	(5)	Includes 2,000 shares awarded to Mr. Downing pursuant to our equity compensation plans which have not yet vested, but as to which he may provide voting recommendations, and 16,192 shares owned by R.H. Downing, Inc., which is 100% owned by Mr. Downing.
	(6)	Includes 2,000 shares awarded to Mr. Whitmer pursuant to our equity compensation plans which have not yet vested, but as to which he may provide voting recommendations.
	(7)	Includes 6,000 shares awarded to Mr. Heh pursuant to our equity compensation plans which have not yet vested, but as to which he may provide voting recommendations, and 23,132 shares which may be acquired by exercising stock options within 60 days.
	(8)	Includes 2,000 shares awarded to Ms. Liutkus pursuant to our equity compensation plans which have not yet vested, but as to which she may provide voting recommendations, and 14,500 shares which may be acquired by exercising stock options within 60 days.
	(9)	Includes 4,000 shares awarded to Mr. MacDonell pursuant to our equity compensation plans which have not yet vested, but as to which he may provide voting recommendations, and 21,500 shares which may be acquired by exercising stock options within 60 days.

(10)	Includes 4,500 shares awarded to Ms. Mackus pursuant to our equity compensation plans which have not yet vested, but as to which she may provide voting recommendations, and 14,500 shares which may be acquired by exercising stock options within 60 days.
(11)	Includes 5,000 shares which may be acquired by Mr. O’Donnell by exercising stock options within 60 days.
(12)	Includes 45,325 shares awarded to all directors and executive officers as a group pursuant to our equity compensation plans which have not yet vested, but as to which they may provide voting recommendations, and 162,014 shares which may be acquired by exercising stock options within 60 days.

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		Without Option				With Option
Per Share		$				$
Total		$				$

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	•	Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum.
	•	Over-allotment involves sales by the underwriter of shares in excess of the number of shares the underwriter is obligated to purchase, which creates a short position. The short position may be either a covered short position or a naked short position. In a covered short position, the number of shares over-allotted by the underwriter is not greater than the number of shares that it may purchase in the over-allotment option. In a naked short position, the number of shares involved is greater than the number of shares in the over-allotment option. The underwriter may close out any covered short position by either exercising its over-allotment option or purchasing shares in the open market.
	•	Covering transactions involve the purchase of common stock in the open market after the distribution has been completed in order to cover short positions. In determining the source of shares to close out the short position, the underwriter will consider, among other things, the price of shares available for purchase in the open market as compared to the price at which it may purchase shares through the over-allotment option. If the underwriter sells more shares than could be covered by the over-allotment option (a “naked short position”), the position can be closed out only by buying shares in the open market. A naked short position is more likely to be created if the underwriter is concerned that there could be downward pressure on the price of the shares in the open market after pricing that could adversely affect investors who purchase in this offering.
	•	Penalty bids permit the underwriter to reclaim a selling concession from a selected dealer when the common stock originally sold by the selected dealer is purchased in a stabilizing covering transaction to cover short positions.

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		Page
Consolidated Balance Sheets as of September 30, 2005(unaudited) and December 31, 2004			F-2
Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2005 and 2004 (unaudited)			F-3
Consolidated Statement of Changes in Shareholders’ Equity for the Nine Months Ended September 30, 2005 (unaudited)			F-4
Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2005 and 2004 (unaudited)			F-5
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2005 and 2004 (unaudited)			F-6
Notes to Consolidated Financial Statements for the Three and Nine Months Ended September 30, 2005 and 2004 (unaudited)			F-7
Report of Independent Registered Public Accounting Firm			F-17
Consolidated Balance Sheets as of December 31, 2004 and 2003			F-18
Consolidated Statements of Operations for the Years Ended December 31, 2004, 2003 and 2002			F-19
Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2004, 2003 and 2002			F-20
Consolidated Statements of Changes in Shareholders’ Equity for the Years Ended December 31, 2004, 2003 and 2002			F-21
Consolidated Statements of Cash Flows for the Years Ended December 31, 2004, 2003 and 2002			F-22
Notes to Consolidated Financial Statements for the Years Ended December 31, 2004, 2003 and 2002			F-24

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				September 30, 2005				December 31, 2004
				(Dollars in thousands
				except per share data)
ASSETS
Cash and cash equivalents				$	2,335			$	32,675
Securities available for sale					33,321				13,508
Loans held for sale					178				—
Loans, net of allowance of $1,225 and $978					106,999				108,149
Federal Home Loan Bank stock					3,914				3,778
Loan servicing rights					286				208
Foreclosed assets, net					33				132
Premises and equipment, net					2,839				2,690
Goodwill					—				1,749
Other intangible assets					—				299
Bank owned life insurance					3,504				3,401
Loan sales proceeds receivable					1,057				1,888
Deferred tax asset					1,952				1,491
Accrued interest receivable and other assets					1,435				1,037
				$	157,853			$	171,005
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
	Non-interest bearing			$	5,925			$	5,505
	Interest bearing				114,820				96,119
		Total deposits			120,745				101,624
Federal Home Loan Bank advances					13,945				41,170
Other borrowings					—				2,249
Advances by borrowers for taxes and insurance					69				321
Accrued interest payable and other liabilities					757				979
Subordinated debentures					5,155				5,155
		Total liabilities			140,671				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				12,801				12,519
	Retained earnings				5,179				8,497
	Accumulated other comprehensive income				316				61
	Unearned stock based incentive plan shares				(354	)			(351	)
	Treasury stock, at cost (2005 — 68,533 shares, 2004 — 108,671 shares)				(783	)			(1,242	)
		Total shareholders’ equity			17,182				19,507
				$	157,853			$	171,005

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			Three Months								Nine Months
			Ended								Ended
			September 30,								September 30,
			2005				2004				2005				2004
			(Dollars in thousands
			except per share data)
Interest and dividend income
	Loans, including fees		$	1,724			$	1,287			$	5,274			$	3,328
	Taxable securities			411				181				727				620
	Tax exempt securities			—				—				—				20
	Federal Home Loan Bank stock dividends			48				40				136				112
	Federal funds sold and other			4				109				86				180
				2,187				1,617				6,223				4,260
Interest expense
	Deposits			758				360				1,939				993
	Federal Home Loan Bank advances and other debt			119				146				415				250
	Subordinated debentures			83				58				231				162
				960				564				2,585				1,405
Net interest income				1,227				1,053				3,638				2,855
Provision for loan losses				50				296				402				366
Net interest income after provision for loan losses				1,177				757				3,236				2,489
Noninterest income
	Service charges on deposit accounts			46				36				142				98
	Net gains on sales of loans			54				19				361				63
	Loan servicing fees, net			15				(6	)			22				49
	Net gains (losses) on sales of securities			—				(36	)			—				(55	)
	Earnings on bank owned life insurance			35				36				103				110
	Other			11				7				45				17
				161				56				673				282
Noninterest expense
	Salaries and employee benefits			901				977				2,685				2,513
	Occupancy and equipment			117				84				350				222
	Data processing			117				105				360				315
	Franchise taxes			54				55				163				168
	Professional fees			145				90				376				282
	Director fees			46				47				127				127
	Postage, printing and supplies			31				89				128				184
	Advertising and promotion			16				22				114				71
	Telephone			28				20				94				64
	Loan expenses			6				8				25				38
	Foreclosed assets, net			15				12				22				3
	Depreciation			99				98				311				252
	Amortization of intangibles			20				—				82				—
	Impairment loss on goodwill and intangibles			1,966				—				1,966				—
	Other			82				226				280				432
				3,643				1,833				7,083				4,671
Loss before income taxes				(2,305	)			(1,020	)			(3,174	)			(1,900	)
Income tax benefit				(237	)			(355	)			(547	)			(683	)
Net loss			$	(2,068	)		$	(665	)		$	(2,627	)		$	(1,217	)
Loss per share:
	Basic		$	(0.94	)		$	(0.33	)		$	(1.19	)		$	(0.61	)
	Diluted		$	(0.94	)		$	(0.33	)		$	(1.19	)		$	(0.61	)

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															Accumulated				Unearned
							Additional								Other				Stock Based								Total
			Common				Paid-In				Retained				Comprehensive				Incentive				Treasury				Shareholders’
			Stock				Capital				Earnings				Income				Plan Shares				Stock				Equity
			(Dollars in thousands except per share data)
Balance at January 1, 2005			$	23			$	12,519			$	8,497			$	61			$	(351	)		$	(1,242	)		$	19,507
Comprehensive loss:
Net loss												(2,627	)															(2,627	)
Other comprehensive income																255												255
	Total comprehensive loss																											(2,372	)
Issuance of stock based incentive plan shares (17,675 shares)								193												(193	)			—
Release of 15,852 stock based incentive plan shares																				190								190
Tax benefits from stock based incentive plan shares released								33																				33
Stock options exercised (40,138 shares)								2				(86	)											459				375
Tax benefits from stock options exercised								54																				54
Cash dividends declared ($.27 per share)												(605	)															(605	)
Balance at September 30, 2005			$	23			$	12,801			$	5,179			$	316			$	(354	)		$	(783	)		$	17,182

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		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2005				2004				2005				2004
		(Dollars in thousands)
Net loss		$	(2,068	)		$	(665	)		$	(2,627	)		$	(1,217	)
Change in net unrealized gain (loss) on securities available for sale			(75	)			396				(142	)			(165	)
Less: Reclassification adjustment for gains and (losses) later recognized in net income			—				(36	)			—				(55	)
Net unrealized gains and (losses)			(75	)			432				(142	)			(110	)
Initial unrealized gain on mortgage-backed securities received in securitization			—				—				530				—
Tax effect			(25	)			(147	)			(133	)			37
Other comprehensive income (loss)			(50	)			285				255				(73	)
Comprehensive loss		$	(2,118	)		$	(380	)		$	(2,372	)		$	(1,290	)

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				Nine Months Ended
				September 30,
				2005				2004
				(Dollars in thousands)
Cash flows from operating activities				$	(379	)		$	(929	)
Cash flows from investing activities
	Net decrease in interest bearing deposits				—				1,289
	Available-for-sale securities:
		Sales			1,435				15,191
		Maturities, prepayments and calls			2,550				4,503
		Purchases			(5,037	)			(6,076	)
	Loan originations and payments, net				(17,677	)			(34,262	)
	Loans purchased				—				(5,390	)
	Additions to premises and equipment				(462	)			(1,007	)
	Other				69				79
		Net cash from investing activities			(19,122	)			(25,673	)
Cash flows from financing activities
	Net change in deposits				19,111				16,997
	Net change in short-term borrowings from the Federal Home Loan Bank and other				(27,474	)			13,900
	Proceeds from Federal Home Loan Bank advances and other debt				—				12,270
	Repayments on Federal Home Loan Bank advances and other debt				(2,000	)			—
	Net change in advances by borrowers for taxes and insurance				(252	)			(6	)
	Cash dividends paid				(599	)			(549	)
	Proceeds from exercise of stock options				375				306
	Repurchase of common stock				—				(131	)
		Net cash from financing activities			(10,839	)			42,787
Net change in cash and cash equivalents					(30,340	)			16,185
Beginning cash and cash equivalents					32,675				8,936
Ending cash and cash equivalents				$	2,335			$	25,121
Supplemental cash flow information:
	Interest paid			$	2,509			$	1,407
	Income taxes paid				—				—
Supplemental noncash disclosures:
	Securitization of single-family residential mortgage loans			$	18,497			$	—
	Transfers from loans to repossessed assets				—				728

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	Basis of Presentation:

	Operating Segments:

	Earnings Per Share:

F-7

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			Three Months Ended								Nine Months Ended
			September 30,								September 30,
			2005				2004				2005				2004
Basic
	Net loss		$	(2,068	)		$	(665	)		$	(2,627	)		$	(1,217	)
	Weighted average common shares outstanding			2,208,071				2,017,645				2,200,176				2,001,276
	Basic loss per common share		$	(0.94	)		$	(0.33	)		$	(1.19	)		$	(0.61	)
Diluted
	Net loss		$	(2,068	)		$	(665	)		$	(2,627	)		$	(1,217	)
	Weighted average common shares outstanding for basic loss per share			2,208,071				2,017,645				2,200,176				2,001,276
	Add: Dilutive effects of assumed exercises of stock options and stock based incentive plan shares			—				—				—				—
	Average shares and dilutive potential common shares			2,208,071				2,017,645				2,200,176				2,001,276
	Diluted loss per common share		$	(0.94	)		$	(0.33	)		$	(1.19	)		$	(0.61	)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2005				2004				2005				2004
Stock options			297,539				259,504				261,550				254,395
Stock based incentive plan shares			33,537				34,524				30,187				34,549

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	Stock Compensation:

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2005				2004				2005				2004
Net loss as reported		$	(2,068	)		$	(665	)		$	(2,627	)		$	(1,217	)
Deduct: Stock-based compensation expense determined under fair value based method			59				23				358				144
Pro forma net loss		$	(2,127	)		$	(688	)		$	(2,985	)		$	(1,361	)
Basic loss per share as reported		$	(0.94	)		$	(0.33	)		$	(1.19	)		$	(0.61	)
Pro forma basic loss per share			(0.96	)			(0.34	)			(1.36	)			(0.68	)
Diluted loss per share as reported		$	(0.94	)		$	(0.33	)		$	(1.19	)		$	(0.61	)
Pro forma diluted loss per share			(0.96	)			(0.34	)			(1.36	)			(0.68	)

						Nine
		Three				Months Ended
		Months Ended				September 30,
		September 30,
		2005				2005				2004
Risk-free interest rate			3.98	%			3.85	%			3.26	%
Expected option life (years)			6				6				6
Expected stock price volatility			26	%			27	%			24	%
Dividend yield			3.62	%			3.46	%			2.86	%
Weighted average fair value of options granted during the period		$	2.03			$	2.27			$	2.52

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	Reclassifications:

								Gross				Gross
				Fair				Unrealized				Unrealized
				Value				Gains				Losses
September 30, 2005
	Federal agency			$	5,907			$	1			$	(101	)
	Mortgage-backed				25,403				662				(73	)
	Municipal				2,011				—				(9	)
		Total		$	33,321			$	663			$	(183	)
December 31, 2004
	Federal agency			$	4,983			$	2			$	(37	)
	Mortgage-backed				8,525				195				(68	)
		Total		$	13,508			$	197			$	(105	)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2005				2004				2005				2004
Proceeds		$	1,435			$	11,239			$	1,435			$	15,191
Gross gains			—				—				—				41
Gross losses			—				(36	)			—				(96	)

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			Available for
			Sale Fair
			Value
Due from one to five years			$	6,910
Due from five to ten years				1,008
Mortgage-backed				25,403
	Total		$	33,321

				Less than 12 Months								12 Months or More								Total
				Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
Description of Securities				Value				Loss				Value				Loss				Value				Loss
September 30, 2005
	Federal agency			$	4,913			$	(101	)		$	—			$	—			$	4,913			$	(101	)
	Mortgage-backed				2,953				(19	)			2,076				(54	)			5,029				(73	)
	Municipal				2,011				(9	)											2,011				(9	)
		Total		$	9,877			$	(129	)		$	2,076			$	(54	)		$	11,953			$	(183	)
December 31, 2004
	Federal agency			$	3,976			$	(37	)		$	—			$	—			$	3,976			$	(37	)
	Mortgage-backed				700				(1	)			2,476				(67	)			3,176				(68	)
		Total		$	4,676			$	(38	)		$	2,476			$	(67	)		$	7,152			$	(105	)

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				September 30,				December 31,
				2005				2004
Commercial				$	12,481			$	7,030
Real estate:
	Single-family residential				23,352				41,450
	Multi-family residential				25,620				25,602
	Commercial				26,753				20,105
	Construction				—				1,127
Consumer					20,181				13,952
		Subtotal			108,387				109,266
Less: Net deferred loan fees					(163	)			(139	)
		Allowance for loan losses			(1,225	)			(978	)
Loans, net				$	106,999			$	108,149

		Three Months								Nine Months
		Ended								Ended
		September 30,								September 30,
		2005				2004				2005				2004
Beginning balance		$	1,242			$	465			$	978			$	415
Provision for loan losses			50				296				402				366
Loans charged-off			(83	)			(22	)			(200	)			(50	)
Recoveries			16				8				45				16
Ending balance		$	1,225			$	747			$	1,225			$	747

		September 30,				December 31,
		2005				2004
Loans past due over 90 days still on accrual		$	—			$	—
Nonaccrual loans			606				286

F-12

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Table of Contents

		Three Months								Nine Months
		Ended								Ended
		September 30,								September 30,
		2005				2004				2005				2004
Servicing rights:
Beginning of period		$	302			$	237			$	208			$	221
Additions			—				—				120				3
Amortized to expense			(28	)			(11	)			(49	)			(40	)
Provision for loss in fair value			12				(14	)			7				28
End of period		$	286			$	212			$	286			$	212
Valuation allowance:
Beginning of period		$	25			$	14			$	20			$	56
Additions expensed			—				14				—				14
Reductions credited to expense			(12	)			—				(7	)			(42	)
End of period		$	13			$	28			$	13			$	28

September 30, 2006		$	63
September 30, 2007			63
September 30, 2008			63
September 30, 2009			63
September 30, 2010			47

F-13

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Table of Contents

		Three and
		Nine Months
		Ended
		September 30,
		2005
Beginning of period		$	1,749
Acquired goodwill			—
Impairment			(1,749	)
End of period		$	—

			September 30, 2005								December 31, 2004
			Gross								Gross
			Carrying				Accumulated				Carrying				Accumulated
			Amount				Amortization				Amount				Amortization
Amortized intangible assets:
	Noncompete agreement		$	—			$	—			$	25			$	4
	Prior owner intangible			—				—				295				17
Total			$	—			$	—			$	320			$	21

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			September 30,				December 31,
			2005				2004
Maturity October 2005 at 4.06% floating rate			$	3,675			$	—
Maturity January 2005 at 2.20% floating rate				—				28,900
Maturities March 2006 thru September 2008, fixed at rates from 2.03% to 3.41%, averaging 2.91% at September 30, 2005, and maturities March 2005 thru September 2008, fixed at rates from 1.50% to 3.41%, averaging 2.70% at December 31, 2004				10,270				12,270
	Total		$	13,945			$	41,170

			September 30,				December 31,
			2005				2004
First mortgage loans under a blanket lien arrangement			$	23,131			$	41,269
Second mortgage loans				786				695
Multi-family mortgage loans				11,245				10,372
Home equity lines of credit				5,272				3,236
Commercial real estate loans				18,186				14,964
Securities				17,066				770
	Total		$	75,686			$	71,306

September 30, 2006			$	7,675
September 30, 2007				4,270
September 30, 2008				2,000
September 30, 2009				—
September 30, 2010				—
	Total		$	13,945

F-15

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			Banking				Mortgage Services				Parent and Other				Total
Three months ended September 30, 2005
	Net interest income (expense)		$	1,301			$	10			$	(84	)		$	1,227
	Provision for loan losses			(50	)			—				—				(50	)
	Other revenue			67				87				7				161
	Impairment loss on goodwill and intangibles			—				(1,966	)			—				(1,966	)
	Other expense			(1,429	)			(185	)			(63	)			(1,677	)
	Loss before income tax			(111	)			(2,054	)			(140	)			(2,305	)
	Income tax benefit			(47	)			(104	)			(86	)			(237	)
	Net loss		$	(64	)		$	(1,950	)		$	(54	)		$	(2,068	)
Nine months ended September 30, 2005
	Net interest income (expense)		$	3,847			$	22			$	(231	)		$	3,638
	Provision for loan losses			(402	)			—				—				(402	)
	Other revenue			252				394				27				673
	Impairment loss on goodwill and intangibles			—				(1,966	)			—				(1,966	)
	Other expense			(4,190	)			(681	)			(246	)			(5,117	)
	Loss before income tax			(493	)			(2,231	)			(450	)			(3,174	)
	Income tax benefit			(192	)			(164	)			(191	)			(547	)
	Net loss		$	(301	)		$	(2,067	)		$	(259	)		$	(2,627	)
September 30, 2005
	Segment assets		$	156,699			$	480			$	674			$	157,853

F-16

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F-17

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				December 31,
				2004				2003
				(Dollars in thousands
				except per share data)
ASSETS
Cash and cash equivalents				$	32,675			$	8,936
Interest-bearing deposits in other financial institutions					—				1,587
Securities available for sale					13,508				27,126
Loans held for sale					—				106
Loans, net of allowance of $978 and $415					108,149				58,024
Federal Home Loan Bank stock					3,778				3,626
Loan servicing rights					208				221
Foreclosed assets, net					132				193
Premises and equipment, net					2,690				1,932
Goodwill					1,749				—
Other intangible assets					299				—
Bank owned life insurance					3,401				3,256
Loan sales proceeds receivable					1,888				—
Deferred tax asset					1,491				930
Accrued interest receivable and other assets					1,037				1,074
				$	171,005			$	107,011
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
	Non-interest bearing			$	5,505			$	2,457
	Interest bearing				96,119				70,901
		Total deposits			101,624				73,358
Federal Home Loan Bank advances					41,170				7,500
Other borrowings					2,249				—
Advances by borrowers for taxes and insurance					321				207
Accrued interest payable and other liabilities					979				935
Subordinated debentures					5,155				5,155
		Total liabilities			151,498				87,155
Shareholders’ equity
	Preferred stock, 1,000,000 shares authorized; none issued				—				—
	Common stock, $.01 par value; 6,000,000 shares authorized; 2004 — 2,294,520 shares issued, 2003 — 2,280,020 shares issued				23				23
	Additional paid-in capital				12,519				11,845
	Retained earnings				8,497				10,997
	Accumulated other comprehensive income				61				201
	Unearned stock based incentive plan shares				(351	)			(357	)
	Treasury stock, at cost (2004 — 108,671 shares, 2003 — 255,648 shares)				(1,242	)			(2,853	)
		Total shareholders’ equity			19,507				19,856
				$	171,005			$	107,011

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			For the Years Ended
			December 31,
			2004				2003				2002
			(Dollars in thousands
			except per share data)
Interest and dividend income
	Loans, including fees		$	4,855			$	4,203			$	5,255
	Taxable securities			750				934				1,518
	Tax exempt securities			20				5				—
	Federal Home Loan Bank stock dividends			152				141				157
	Federal funds sold and other			367				152				137
				6,144				5,435				7,067
Interest expense
	Deposits			1,436				1,570				2,501
	Federal Home Loan Bank advances and other debt			488				1,940				961
	Subordinated debentures			225				11				—
				2,149				3,521				3,462
Net interest income				3,995				1,914				3,605
Provision for loan losses				646				102				19
Net interest income after provision for loan losses				3,349				1,812				3,586
Noninterest income
	Service charges on deposit accounts			141				165				130
	Net gains on sales of loans			222				429				313
	Loan servicing fees, net			62				(101	)			8
	Net gains (losses) on sales of securities			(55	)			42				16
	Earnings on bank owned life insurance			145				188				68
	Other			22				33				30
				537				756				565
Noninterest expense
	Salaries and employee benefits			3,454				3,549				1,713
	Occupancy and equipment			327				224				96
	Data processing			431				246				196
	Franchise taxes			196				301				287
	Professional fees			424				673				212
	Director fees			169				119				84
	Postage, printing and supplies			167				198				133
	Advertising and promotion			171				27				20
	Telephone			91				48				23
	Loan expenses			48				91				143
	Foreclosed assets, net			57				14				(34	)
	Depreciation			355				176				144
	Amortization of intangibles			21				—				—
	Other			509				264				147
				6,420				5,930				3,164
Income (loss) before income taxes				(2,534	)			(3,362	)			987
Income tax expense (benefit)				(872	)			(988	)			313
Net income (loss)			$	(1,662	)		$	(2,374	)		$	674
Earnings (loss) per share:
	Basic		$	(0.82	)		$	(1.31	)		$	0.44
	Diluted		$	(0.82	)		$	(1.31	)		$	0.43

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		For the Years Ended
		December 31,
		2004				2003				2002
		(Dollars in thousands
		except per share data)
Net income (loss)		$	(1,662	)		$	(2,374	)		$	674
Unrealized holding gains (losses) on securities available for sale			(267	)			(154	)			34
Less: Reclassification adjustment for gains and (losses) later recognized in net income			(55	)			42				16
Net unrealized gains and (losses)			(212	)			(196	)			18
Unrealized gain on securities transferred from held to maturity to available for sale			—				458				—
Tax effect			72				(89	)			(6	)
Other comprehensive income (loss)			(140	)			173				12
Comprehensive income (loss)		$	(1,802	)		$	(2,201	)		$	686

F-20

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																							Unearned
																			Unearned				Stock
															Accumulated				Employee				Based
							Additional								Other				Stock				Incentive								Total
			Common				Paid-In				Retained				Comprehensive				Ownership				Plan				Treasury				Shareholders’
			Stock				Capital				Earnings				Income				Plan Shares				Shares				Stock				Equity
			(Dollars in thousands except per share data)
Balance at January 1, 2002			$	19			$	8,310			$	13,962			$	16			$	(1,651	)		$	(270	)		$	(2,226	)		$	18,160
Comprehensive income:
Net income												674																				674
Other comprehensive income																12																12
	Total comprehensive income																															686
Commitment to release 21,588 employee stock ownership plan shares								(4	)											226												222
Release of 15,516 stock based incentive plan shares																								110								110
Purchase of 96,410 shares of treasury stock																												(1,044	)			(1,044	)
Cash dividends declared ($.36 per share)												(551	)																			(551	)
Balance at December 31, 2002				19				8,306				14,085				28				(1,425	)			(160	)			(3,270	)			17,583
Comprehensive income:
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 income:
Net loss												(1,662	)																			(1,662	)
Other comprehensive loss																(140	)															(140	)
	Total comprehensive loss																															(1,802	)
Issuance of stock based incentive plan shares, net of forfeitures (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								359																				1,428				1,787
Other								30																								30
Cash dividends declared ($.36 per share)												(748	)																			(748	)
Balance at December 31, 2004			$	23			$	12,519			$	8,497			$	61			$	—			$	(351	)		$	(1,242	)		$	19,507

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						2004				2003				2002
						(Dollars in thousands
						except per share data)
Net income (loss)						$	(1,662	)		$	(2,374	)		$	674
Adjustments to reconcile net income to net cash provided by operating activities:
		Provision for loan losses					646				102				19
		Valuation loss on mortgage servicing rights					(36	)			56				—
		Depreciation					355				176				144
		Amortization, net					184				(5	)			(77	)
		Net realized (gain) loss on sales of securities					55				(42	)			(16	)
		Loss (gain) on disposal of premises and equipment					(3	)			50				—
		Gain on sale of foreclosed assets					13				—				—
		FHLB stock dividend					(152	)			(141	)			(157	)
		ESOP expense					—				638				222
		SBIP expense					243				141				110
		Net change in:
			Loans held for sale				106				(106	)			8,221
			Bank owned life insurance				(145	)			(188	)			(68	)
			Loan sales proceeds receivable				(589	)			—				—
			Deferred tax asset				(589	)			(1,083	)			138
			Accrued interest receivable and other assets				86				(22	)			(206	)
			Accrued interest payable and other liabilities				(42	)			(600	)			865
				Net cash from operating activities			(1,530	)			(3,398	)			9,869
Cash flows from investing activities
	Net decrease in interest bearing deposits						1,587				5,618				(199	)
	Available-for-sale securities:
		Sales					15,191				3,078				386
		Maturities, prepayments and calls					5,114				28,968				594
		Purchases					(7,081	)			(46,914	)			(290	)
	Held-to-maturity securities:
		Maturities, prepayments and calls					—				7,201				27,056
		Purchases					—				—				(21,508	)
	Loan originations and payments, net						(45,900	)			4,434				8,010
	Loans purchased						(5,574	)			—				—
	Additions to premises and equipment						(1,027	)			(1,326	)			(127	)
	Proceeds from the sale of premises and equipment						5				—				—
	Proceeds from the sale of foreclosed assets						765				—				—
	Purchase of bank owned life insurance						—				—				(3,000	)
	Net cash used in acquisition						(236	)			—				—
	Cash received in repayment of ESOP loan						—				853				—
		Net cash from investing activities					(37,156	)			1,912				10,922

F-22

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				2004				2003				2002
				(Dollars in thousands
				except per share data)
Cash flows from financing activities
	Net change in deposits				28,266				(1,332	)			(1,478	)
	Net change in short-term borrowings from the Federal Home Loan Bank and other				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				—				(16,330	)			(9,063	)
	Net change in advances by borrowers for taxes and insurance				114				(241	)			(123	)
	Proceeds from subordinated debentures				—				5,155				—
	Cash dividends paid				(735	)			(655	)			(551	)
	Proceeds from private placement				—				3,119				—
	Proceeds from exercise of stock options				412				345				—
	Repurchase of common stock				(319	)			—				(1,044	)
		Net cash from financing activities			62,425				(2,439	)			(12,259	)
Net change in cash and cash equivalents					23,739				(3,925	)			8,532
Beginning cash and cash equivalents					8,936				12,861				4,329
Ending cash and cash equivalents				$	32,675			$	8,936			$	12,861
Supplemental cash flow information:
	Interest paid			$	2,178			$	3,519			$	3,495
	Income taxes paid				—				106				160
Supplemental noncash disclosures:
	Transfer of securities from held to maturity to available for sale			$	—			$	10,533			$	—
	Transfers from loans to repossessed assets				716				193				—
	Acquisition of Reserve Mortgage Services, Inc. through issuance of common stock				1,787				—				—

F-23

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F-24

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F-25

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		2004				2003				2002
Net income (loss) as reported		$	(1,662	)		$	(2,374	)		$	674
Deduct: Stock-based compensation expense determined under fair value based method			183				175				121
Pro forma net income (loss)		$	(1,845	)		$	(2,549	)		$	553
Basic earnings (loss) per share as reported		$	(0.82	)		$	(1.31	)		$	0.44
Pro forma basic earnings (loss) per share			(0.91	)			(1.40	)			0.36
Diluted earnings (loss) per share as reported		$	(0.82	)		$	(1.31	)		$	0.43
Pro forma diluted earnings (loss) per share			(0.91	)			(1.40	)			0.35

F-26

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		2004				2003
Risk-free interest rate			3.26%				2.96%
Expected option life (years)			6.0  years				5.9  years
Expected stock price volatility			24%				44%
Dividend yield			2.86%				3.13%
Weighted average fair value of options granted during year			$2.53				$3.96

F-27

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F-28

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		At October 22, 2004
Cash		$	189
Loan sales proceeds receivable			1,299
Loans receivable			54
Premises and equipment			83
Other assets			3
Intangible assets			320
Goodwill			1,749
Total assets acquired			3,697
Loans payable			1,232
Other liabilities			259
Total liabilities assumed			1,491
Net assets acquired		$	2,206

F-29

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		2004				2003				2002
Net interest income		$	3,988			$	1,906			$	3,597
Net income (loss)		$	(1,682	)		$	(2,175	)		$	711
Basic earnings (loss) per share		$	(0.79	)		$	(1.12	)		$	0.43
Diluted earnings (loss) per share		$	(0.79	)		$	(1.12	)		$	0.42

							Gross				Gross
			Fair				Unrealized				Unrealized
			Value				Gains				Losses
2004
	Federal agency		$	4,983			$	2			$	(37	)
	Mortgage-backed			8,525				195				(68	)
	Total		$	13,508			$	197			$	(105	)
2003
	Federal agency		$	12,759			$	8			$	(4	)
	State and municipal			1,375				5				—
	Mortgage-backed			12,992				400				(105	)
	Total		$	27,126			$	413			$	(109	)

		2004				2003				2002
Proceeds		$	15,191			$	3,078			$	386
Gross gains			41				42				16
Gross losses			(96	)			—				—

			Available
			for Sale
			Fair
			Value
Due from one to five years			$	4,983
Mortgage-backed				8,525
	Total		$	13,508

F-30

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		Less than 12 Months								12 Months or More								Total
						Unrealized								Unrealized								Unrealized
2004 Description of Securities		Fair Value				Loss				Fair Value				Loss				Fair Value				Loss
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	)

		Less than 12 Months								12 Months or More								Total
						Unrealized								Unrealized								Unrealized
2003 Description of Securities		Fair Value				Loss				Fair Value				Loss				Fair Value				Loss
Federal agency		$	4,026			$	(4	)		$	—			$	—			$	4,026			$	(4	)
Mortgage-backed			4,021				(105	)			—				—				4,021				(105	)
Total temporarily impaired		$	8,047			$	(109	)		$	—			$	—			$	8,047			$	(109	)

F-31

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				2004				2003
Commercial				$	7,030			$	4,116
Real estate:
	Single-family residential				41,450				34,810
	Multi-family residential				25,602				1,250
	Commercial				20,105				5,040
	Construction				1,127				610
Consumer					13,952				12,598
		Subtotal			109,266				58,424
Less: Net deferred loan fees					(139	)			15
		Allowance for loan losses			(978	)			(415	)
Loans, net				$	108,149			$	58,024

		2004				2003				2002
Beginning balance		$	415			$	361			$	373
Provision for loan losses			646				102				19
Loans charged-off			(117	)			(50	)			(35	)
Recoveries			34				2				4
Ending balance		$	978			$	415			$	361

		2004				2003
Loans past due over 90 days still on accrual		$	—			$	—
Nonaccrual loans			286				741

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		2004				2003				2002
Servicing rights:
Beginning of year		$	221			$	200			$	88
Additions			3				195				162
Amortized to expense			(52	)			(118	)			(50	)
Provision for loss in fair value			36				(56	)			—
End of year		$	208			$	221			$	200
Valuation allowance:
Beginning of year		$	56			$	—			$	—
Additions expensed			—				56				—
Reductions credited to expense			(36	)			—				—
End of year		$	20			$	56			$	—

2005		$	47
2006			47
2007			47
2008			47
2009			40

		2004				2003
Land and land improvements		$	127			$	117
Buildings			1,880				1,713
Furniture, fixtures and equipment			2,020				1,416
Leasehold improvements			325				10
			4,352				3,256
Less: accumulated depreciation			(1,662	)			(1,324	)
		$	2,690			$	1,932

F-33

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2005		$	287
2006			287
2007			265
2008			251
2009			208
Thereafter			662
Total		$	1,960

	Goodwill

		2004
Beginning of year		$	—
Acquired goodwill			1,749
Impairment			—
End of year		$	1,749

			2004
			Gross
			Carrying				Accumulated
			Amount				Amortization
Amortized intangible assets:
	Noncompete agreement		$	25			$	4
	Prior owner intangible			295				17
Total			$	320			$	21

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2005		$	119
2006			98
2007			82
Total		$	299

2005		$	29,329
2006			9,822
2007			2,999
2008			1,019
2009			3,155
		$	46,324

		2004				2003
Maturity January 2005 at 2.20% floating rate		$	28,900			$	—
Maturity January 2004 at 1.09% floating rate			—				7,500
Maturities March 2005 thru September 2008, fixed at rates from 1.50% to 3.41%, averaging 2.70%			12,270				—
Total		$	41,170			$	7,500

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	Payment information

2005		$	30,900
2006			4,000
2007			4,270
2008			2,000
2009			—
Total		$	41,170

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		2004				2003				2002
Unvested shares outstanding at beginning of year			40,518				28,695				43,043
Granted			26,028				28,500				—
Vested			(19,968	)			(12,024	)			(14,348	)
Forfeited			(5,325	)			(4,653	)			—
Unvested shares outstanding at end of year			41,253				40,518				28,695
Shares available for grant			8,659				10,028				3,875

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		2004				2003				2002
Current federal		$	(283	)		$	95			$	175
Deferred federal			(589	)			(1,083	)			138
Total		$	(872	)		$	(988	)		$	313

		2004				2003				2002
Federal statutory rate times financial statement income (loss)		$	(861	)		$	(1,143	)		$	336
Effect of:
Bank owned life insurance income			(49	)			(64	)			(23	)
ESOP shares released at fair market value			—				207				1
Other			38				12				(1	)
		$	(872	)		$	(988	)		$	313
Effective tax rate			(34.4	)%			(29.4	)%			31.7	%

F-38

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			2004				2003
Deferred tax assets:
	Allowance for loan losses		$	333			$	141
	Deferred loan fees			159				160
	Post-retirement death benefits			34				—
	Deferred compensation			13				—
	Nonaccrual interest			5				36
	Accrued stock awards			58				39
	Net operating loss			1,810				1,325
	Deferred tax credits			17				—
	Other			6				14
				2,435				1,715
Deferred tax liabilities:
	Depreciation			284				229
	FHLB stock dividend			430				378
	Intangible assets			95				—
	Mortgage servicing rights			71				75
	Prepaid expenses			33				—
	Unrealized gain on securities available for sale			31				103
				944				785
Net deferred tax asset (liability)			$	1,491			$	930

F-39

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		2004								2003								2002
						Weighted								Weighted								Weighted
						Average								Average								Average
						Exercise								Exercise								Exercise
		Shares				Price				Shares				Price				Shares				Price
Outstanding at beginning of year			209,721			$	10.17				182,497			$	9.23				182,497			$	9.23
Granted			110,864				12.63				77,758				11.79				—
Exercised			(44,900	)			9.19				(37,302	)			9.23				—
Forfeited			(19,149	)			11.16				(13,232	)			9.26				—
Outstanding at end of year			256,536			$	11.32				209,721			$	10.17				182,497			$	9.23
Options exercisable at year-end			106,386			$	9.86				101,285			$	9.20				107,903			$	9.22
Options available for grant			12,149								18,364								11,390

		Outstanding												Exercisable
						Weighted
						Average				Weighted								Weighted
						Remaining				Average								Average
						Contractual				Exercise								Exercise
Range of Exercise Prices		Number				Life				Price				Number				Price
$9.19 - $10.05			92,638				5.0 years			$	9.32				82,726			$	9.24
$11.50 - $12.70			146,666				8.9 years			$	12.30				21,994			$	11.91
$13.76 - $13.94			17,232				9.1 years			$	13.81				1,666			$	13.94

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																		To Be Well
										For Capital								Capitalized Under
										Adequacy								Prompt Corrective
		Actual								Purposes								Action Provisions
		Amount				Ratio				Amount				Ratio				Amount				Ratio
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
2003
Total Capital to risk weighted assets		$	15,093				21.6	%		$	5,597				8.0	%		$	6,997				10.0	%
Tier 1 (Core) Capital to risk weighted assets			14,678				21.0				2,799				4.0				4,198				6.0
Tier 1 (Core) Capital to adjusted assets			14,678				13.9				4,217				4.0				5,272				5.0
Tangible Capital (to adjusted total assets)			14,678				13.9				1,584				1.5				N/A

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		2004								2003
		Fixed				Variable				Fixed				Variable
		Rate				Rate				Rate				Rate
Commitments to make loans		$	882			$	917			$	486			$	520
Unused lines of credit			543				8,406				—				4,257

			2004								2003
			Carrying								Carrying
			Amount				Fair Value				Amount				Fair Value
Financial assets
	Cash and cash equivalents		$	32,675			$	32,675			$	8,936			$	8,936
	Interest-bearing deposits in other financial institutions			—				—				1,587				1,587
	Securities available for sale			13,508				13,508				27,126				27,126
	Loans held for sale			—				—				106				107
	Loans, net			108,149				108,712				58,024				59,341
	Federal Home Loan Bank stock			3,778				3,778				3,626				3,626
	Loan sales proceeds receivable			1,888				1,888				—				—
	Accrued interest receivable			501				501				487				487
Financial liabilities
	Deposits			(101,624	)			(102,030	)			(73,358	)			(73,927	)
	Federal Home Loan Bank advances			(41,170	)			(41,017	)			(7,500	)			(7,500	)
	Other borrowings			(2,249	)			(2,249	)			—				—
	Subordinated debentures			(5,155	)			(5,155	)			(5,155	)			(5,155	)
	Accrued interest payable			(36	)			(36	)			(65	)			(65	)

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		2004				2003
ASSETS
Cash and cash equivalents		$	8,504			$	9,238
Investment in banking subsidiary			15,708				15,099
Investment in and advances to other subsidiaries			296				289
Other assets			399				621
Total assets		$	24,907			$	25,247
LIABILITIES AND EQUITY
Debt		$	5,155			$	5,155
Accrued expenses and other liabilities			245				236
Shareholders’ equity			19,507				19,856
Total liabilities and shareholders’ equity		$	24,907			$	25,247

		2004				2003				2002
Interest income		$	—			$	20			$	77
Dividends from subsidiaries			—				5,437				2,800
Other income			—				11				—
Interest expense			225				59				297
Other expense			306				338				173
Income (loss) before income tax and undistributed subsidiaries operations			(531	)			5,071				2,407
Income tax benefit			143				125				137
Effect of subsidiaries’ operations			(1,274	)			(7,570	)			(1,870	)
Net income (loss)		$	(1,662	)		$	(2,374	)		$	674

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					2004				2003				2002
Cash flows from operating activities
	Net income (loss)				$	(1,662	)		$	(2,374	)		$	674
	Adjustments:
		Effect of subsidiaries’ operations				1,274				7,570				1,870
		Change in other assets and other liabilities				296				(102	)			(230	)
			Net cash from operating activities			(92	)			5,094				2,314
Cash flows from investing activities
	Cash received in repayment of ESOP loan					—				853				212
	Investments in subsidiaries					—				(289	)			—
			Net cash from investing activities			—				564				212
Cash flows from financing activities
	Proceeds of borrowings					—				5,155				—
	Repayments of borrowings					—				(4,900	)			(2,100	)
	Proceeds from stock issue					—				3,119				—
	Proceeds from exercise of stock options					412				345				—
	Purchase of treasury stock					(319	)			—				(1,044	)
	Dividends paid					(735	)			(655	)			(551	)
	Dividends on unallocated ESOP shares					—				—				(53	)
			Net cash from financing activities			(642	)			3,064				(3,748	)
Net change in cash and cash equivalents						(734	)			8,722				(1,222	)
Beginning cash and cash equivalents						9,238				516				1,738
Ending cash and cash equivalents					$	8,504			$	9,238			$	516

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			2004				2003				2002
Basic
	Net income (loss)		$	(1,662	)		$	(2,374	)		$	674
	Weighted average common shares outstanding			2,033,376				1,815,210				1,530,429
	Basic earnings (loss) per common share		$	(0.82	)		$	(1.31	)		$	0.44
Diluted
	Net income (loss)		$	(1,662	)		$	(2,374	)		$	674
	Weighted average common shares outstanding for basic earnings (loss) per share			2,033,376				1,815,210				1,530,429
	Add: Dilutive effects of assumed exercises of stock options and stock based incentive plan shares			—				—				31,570
	Average shares and dilutive potential common shares			2,033,376				1,815,210				1,561,999
	Diluted earnings (loss) per common share		$	(0.82	)		$	(1.31	)		$	0.43

		2004				2003				2002
Stock options			263,400				225,285				8,000
Stock based incentive plan shares			33,313				28,927				—

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		Page
Prospectus Summary			1
Risk Factors			5
Forward-Looking Statements			10
Use of Proceeds			11
Market for Our Common Stock and Dividends			12
Capitalization			13
Selected Consolidated Financial Information			14
Supplementary Consolidated Financial Information			17
Management’s Discussion and Analysis of Financial Condition and Results of Operations			19
Quantitative and Qualitative Disclosures about Market Risk			32
Business			33
Management			50
Regulation and Supervision			53
Description of Our Common Stock			62
Principal Stockholders			66
Underwriting			68
Interests of Named Experts and Counsel			70
Incorporation of Certain Information by Reference			70
Where You Can Find Additional Information			70
Commission Position on Indemnification for Securities Act Liabilities			70
Index to Financial Statements			F-1

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Item 14.	Other Expenses of Issuance and Distribution.

Securities and Exchange Commission Registration Fee			$	2,500
Nasdaq® Fee				25,000
Accounting Fees and Expenses*				60,000
Printing Fees and Expenses*				75,000
Legal Fees and Expenses *				225,000
Transfer Agent Fees*				10,000
Blue Skies Fees and Expenses, and Miscellaneous*				52,500
	Total*		$	450,000

*	Estimated

Item 15.	Indemnification of Directors And Officers.

	(i) may indemnify any person who was, is or is threatened to be made, a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of such corporation), by reason of the fact that such person is or was an officer, director, employee or agent of such corporation, or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, provided such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation’s best interests and, with respect to any criminal action or proceeding, if he had no reasonable cause to believe that his conduct was illegal; and
	(ii) may indemnify any person who is, was or is threatened to be made, a party to any threatened, pending or completed action or suit by or in the right of the corporation by reason of the fact that such person was a director, officer, employee or agent of such corporation, or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys’ fees) actually and reasonably incurred by any such person in connection with the defense or settlement of such action or suit, provided such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation’s best interests and that no indemnification is permitted without judicial approval if the officer, director, employee or agent is adjudged to be liable to the corporation.

II-1

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II-2

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Item 16.	Exhibits.

Item 17.	Undertakings.

II-3

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	CENTRAL FEDERAL CORPORATION
	By: /s/ Eloise L. Mackus
	Eloise L. Mackus, Secretary

Signature				Title
/s/ David C. Vernon   David C. Vernon				Chairman of the Board
/s/ Mark S. Allio   Mark S. Allio				Vice Chairman of the Board; President and Chief Executive Officer (principal executive officer)
/s/ Therese Ann Liutkus   Therese Ann Liutkus				Treasurer and Chief Financial Officer (principal financial officer and principal accounting officer)
/s/ Jeffrey W. Aldrich   Jeffrey W. Aldrich				Director
/s/ Thomas P. Ash   Thomas P. Ash				Director
/s/ W. R. Downing   W. R. Downing				Director
/s/ Gerry W. Grace   Gerry W. Grace				Director
/s/ Jerry F. Whitmer   Jerry F. Whitmer				Director

II-4

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Exhibit
Number				Document Name
	1			Underwriting Agreement
	3	.1		Certificate of Incorporation of the registrant (incorporated by reference to Exhibit 3.1 to the registrant’s Registration Statement on Form SB-2 No. 333-64089 filed with the Commission on September 23, 1998)
	3	.2		Amendment to Certificate of Incorporation of the registrant (incorporated by reference to Exhibit 3.2 to the registrant’s Registration Statement on Form S-2 No. 333-129315 filed with the Commission on October 28, 2005)
	3	.3		Amended and Restated Bylaws of the registrant (incorporated by reference to Exhibit 3.3 to the registrant’s Registration Statement on Form S-2 No. 333-129315 filed with the Commission on October 28, 2005)
	4			Form of Stock Certificate of the registrant (incorporated by reference to Exhibit 4.0 to the registrant’s Registration Statement on Form SB-2 No. 333-64089 filed with the Commission on September 23, 1998)
	5			Opinion of Brouse McDowell, A Legal Professional Association, on legality of common stock (incorporated by reference to Exhibit 5 to the registrant’s Registration Statement on Form S-2 No. 333-129315 filed with the Commission on October 28, 2005)
	10	.1*		Salary Continuation Agreement between CFBank and David C. Vernon (incorporated by reference to Exhibit 10.1 to the registrant’s Form 10-KSB for the fiscal year ended December 31, 2004, filed with the Commission on March 30, 2005)
	10	.2*		Employment Agreement between CFBank and Richard J. O’Donnell (incorporated by reference to Exhibit 10.2 to the registrant’s Form 10-KSB for the fiscal year ended December 31, 2004, filed with the Commission on March 30, 2005)
	10	.3*		Employment Agreement between the registrant and David C. Vernon (incorporated by reference to Exhibit 10.1 to the registrant’s Form 10-KSB for the fiscal year ended December 31, 2003, filed with the Commission on March 30, 2004)
	10	.4*		Amendment to Employment Agreement between the registrant and David C. Vernon (incorporated by reference to Exhibit 10.3 to the registrant’s Form 10-KSB for the fiscal year ended December 31, 2004, filed with the Commission on March 30, 2005)
	10	.5*		Amendment to Employment Agreement between CFBank and David C. Vernon (incorporated by reference to Exhibit 10.4 to the registrant’s Form 10-KSB for the fiscal year ended December 31, 2004, filed with the Commission on March 30, 2005)
	10	.6*		Second Amendment to Employment Agreement between the registrant and David C. Vernon (incorporated by reference to Exhibit 10.5 to the registrant’s Form 10-KSB for the fiscal year ended December 31, 2004, filed with the Commission on March 30, 2005)
	10	.7*		Second Amendment to Employment Agreement between CFBank and David C. Vernon (incorporated by reference to Exhibit 10.6 to the registrant’s Form 10-KSB for the fiscal year ended December 31, 2004, filed with the Commission on March 30, 2005)
	11			Statement Re: Computation of Per Share Earnings (incorporated by reference to Exhibit 11 to the registrant’s Registration Statement on Form S-2 No. 333-129315 filed with the Commission on October 28, 2005)
	21			Subsidiaries of the registrant (incorporated by reference to Exhibit 21 to the registrant’s Registration Statement on Form S-2 No. 333-129315 filed with the Commission on October 28, 2005)
	23	.1		Consent of Independent Registered Public Accounting Firm
	23	.2		Consent of Brouse McDowell (included in Exhibit 5)
	24			Power of Attorney (incorporated by reference to Exhibit 24 to the registrant’s Registration Statement on Form S-2 No. 333-129315 filed with the Commission on October 28, 2005)

*	Denotes management contract or other compensatory plan or arrangement

E-1