Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨

		Page Number

	PART I

Item 1.	Financial Statements and Related Notes	2 - 20
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21 - 31
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	31 - 32
Item 4.	Controls and Procedures	33

	PART II

Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.	Defaults Upon Senior Securities	34
Item 4.	Removed and Reserved	34
Item 5.	Other Information	34
Item 6.	Exhibits	34

Form 10-Q Signature Page		35

(Dollars in thousands)	September 30,		December 31,
	2010		2009
Assets
Cash and cash equivalents	$	13,042	$	12,379
Investment securities:
Available-for-sale, at fair value		156,580		161,568
Other securities		8,170		8,051
Loans, net		322,913		342,738
Loans held for sale		10,162		4,703
Premises and equipment, net		15,311		15,877
Real estate owned		4,093		1,129
Bank owned life insurance		12,917		12,548
Goodwill		12,894		12,894
Other intangible assets, net		2,218		2,481
Accrued interest and other assets		9,003		9,799
Total assets	$	567,303	$	584,167

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing demand	$	54,722	$	54,799
Money market and NOW		165,543		162,449
Savings		31,882		29,010
Time, $100,000 and greater		50,925		48,422
Time, other		133,095		143,915
Total deposits		436,167		438,595

Federal Home Loan Bank borrowings		41,446		56,004
Other borrowings		27,884		26,179
Accrued interest, taxes, and other liabilities		6,677		9,494
Total liabilities		512,174		530,272

Commitments and contingencies

Stockholders’ equity:
Preferred stock, $0.01 par, 200,000 shares authorized; none issued		-		-
Common stock, $0.01 par, 7,500,000 shares authorized; 2,504,265 and 2,489,779
shares issued at September 30, 2010 and December 31, 2009, respectively		25		25
Additional paid-in capital		25,100		24,844
Retained earnings		27,295		27,523
Accumulated other comprehensive income		2,709		1,503
Total stockholders’ equity		55,129		53,895

Total liabilities and stockholders’ equity	$	567,303	$	584,167

	Three months ended						Nine months ended
(Dollars in thousands, except per share amounts)	September 30,						September 30,
	2010			2009			2010			2009
Interest income:
Loans:
Taxable	$	4,764		$	5,062		$	14,398		$	15,365
Tax-exempt		61			55			207			168
Investment securities:
Taxable		606			1,045			2,087			3,230
Tax-exempt		606			637			1,854			1,867
Other		2			3			4			10
Total interest income		6,039			6,802			18,550			20,640
Interest expense:
Deposits		916			1,401			2,923			4,598
Borrowings		654			793			2,018			2,483
Total interest expense		1,570			2,194			4,941			7,081
Net interest income		4,469			4,608			13,609			13,559
Provision for loan losses		500			1,900			5,200			3,000
Net interest income after provision for loan losses		3,969			2,708			8,409			10,559
Non-interest income:
Fees and service charges		1,330			1,191			3,470			3,289
Gains on sales of loans, net		833			722			2,237			2,629
Bank owned life insurance		124			126			372			373
Other		101			71			350			358
Total non-interest income		2,388			2,110			6,429			6,649
Investment securities gains (losses), net:
Impairment losses on investment securities		(251	)		(133	)		(391	)		(709	)
Gains on sales of investment securities		-			-			563			-
Investment securities gains (losses), net		(251	)		(133	)		172			(709	)
Non-interest expense:
Compensation and benefits		2,358			2,360			6,997			6,739
Occupancy and equipment		731			716			2,123			2,030
Federal deposit insurance premiums		180			176			542			656
Data processing		208			189			640			583
Amortization of intangibles		208			196			569			574
Professional fees		113			190			433			554
Advertising		137			121			374			361
Other		827			878			2,664			2,729
Total non-interest expense		4,762			4,826			14,342			14,226
Earnings (loss) before income taxes		1,344			(141	)		668			2,273
Income tax expense (benefit)		241			(254	)		(531	)		139
Net earnings	$	1,103		$	113		$	1,199		$	2,134
Earnings per share:
Basic	$	0.44		$	0.05		$	0.48		$	0.86
Diluted	$	0.44		$	0.05		$	0.48		$	0.86
Dividends per share	$	0.19		$	0.18		$	0.57		$	0.54

	Nine months ended
(Dollars in thousands)	September 30,
	2010			2009

Net cash (used in) provided by operating activities	$	(726	)	$	4,089

Investing activities:
Net decrease in loans		10,457			16,286
Maturities and prepayments of investment securities		27,360			37,167
Purchases of investment securities		(30,993	)		(43,133	)
Proceeds from sale of investment securities		10,097			1,210
Proceeds from sales of foreclosed assets		1,036			1,954
Purchases of premises and equipment, net		(164	)		(676	)
Net cash paid in branch acquisition		-			(130	)
Net cash provided by investing activities		17,793			12,678
Financing activities:
Net (decrease) increase in deposits		(2,428	)		4,900
Federal Home Loan Bank advance repayments		(15,028	)		(10,027	)
Change in Federal Home Loan Bank line of credit, net		600			(6,000	)
Other borrowings, net		1,705			2,617
Proceeds from issuance of common stock under stock option plans		143			-
Excess tax benefit related to stock option plans		31			-
Payment of dividends		(1,427	)		(1,352	)
Purchase of treasury stock		-			(12	)
Net cash used in financing activities		(16,404	)		(9,874	)
Net increase in cash and cash equivalents		663			6,893
Cash and cash equivalents at beginning of period		12,379			13,788
Cash and cash equivalents at end of period	$	13,042		$	20,681

Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes	$	942		$	872
Cash paid during the period for interest		5,192			7,210

Supplemental schedule of noncash investing and financing activities:
Transfer of loans to real estate owned	$	3,973		$	1,827
Branch acquisition:
Fair value of liabilities assumed		-			6,650
Fair value of assets acquired	$	-		$	6,520

(Dollars in thousands, except per share amounts)	Common stock		Additional paid-in capital		Retained earnings			Treasury stock			Accumulated other comprehensive income		Total
Balance at December 31, 2008	$	24	$	23,873	$	27,819		$	(935	)	$	625	$	51,406
Comprehensive income:
Net earnings		-		-		2,134			-			-		2,134
Change in fair value of investment securities available-for-sale, net of tax		-		-		-			-			2,128		2,128
Total comprehensive income														4,262
Dividends paid ($0.54 per share)		-		-		(1,352	)		-			-		(1,352	)
Stock based compensation		-		118		-			-			-		118
Purchase of 800 treasury shares		-		-		-			(12	)		-		(12	)
Balance at September 30, 2009	$	24	$	23,991	$	28,601		$	(947	)	$	2,753	$	54,422

Balance at December 31, 2009	$	25	$	24,844	$	27,523		$	-		$	1,503	$	53,895
Comprehensive income:
Net earnings		-		-		1,199			-			-		1,199
Change in fair value of investment securities available-for-sale, net of tax		-		-		-			-			1,206		1,206
Total comprehensive income														2,405
Dividends paid ($0.57 per share)		-		-		(1,427	)		-			-		(1,427	)
Stock based compensation		-		82		-			-			-		82
Exercise of stock options, 14,486 shares, including excess tax benefit of $31		-		174		-			-			-		174
Balance at September 30, 2010	$	25	$	25,100	$	27,295		$	-		$	2,709	$	55,129

The condensed consolidated financial statements of Landmark Bancorp, Inc. (the “Company”) and subsidiary have been prepared in accordance with the instructions to Form 10-Q. To the extent that information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements are contained in or consistent with the consolidated audited financial statements incorporated by reference in the Company’s Form 10-K for the year ended December 31, 2009, such information and footnotes have not been duplicated herein. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of financial statements have been reflected herein. The December 31, 2009 consolidated balance sheet has been derived from the audited consolidated balance sheet as of that date. The results of the interim period ended September 30, 2010 are not necessarily indicative of the results expected for the year ending December 31, 2010. The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that financial statements are filed for potential recognition or disclosure.

The Company tests goodwill for impairment annually or more frequently if circumstances warrant. The Company determined that a decline in its stock price during the third quarter of 2010 constituted a triggering event, which required an impairment test to be performed. The Company performed an impairment test as of September 30, 2010 by comparing the fair value of the Company’s single reporting unit to its carrying value. Fair value was determined using observable market data including the Company’s market capitalization and valuation multiples compared to recent financial industry acquisition multiples for similar institutions to estimate the fair value of the Company’s single reporting unit. Based on the results of the September 30, 2010 impairment testing, which indicated no impairment, the Company concluded its goodwill was not impaired as of September 30, 2010. The Company can make no assurances that future impairment tests will not result in goodwill impairments.

On May 8, 2009, the Company’s subsidiary, Landmark National Bank, assumed approximately $6.4 million in deposits in connection with a branch acquisition. As part of the transaction, Landmark National Bank agreed to pay a deposit premium of 1.75 percent on the core deposit balance as of 270 days after the close of the transaction. The core deposit premium, based on the acquired core deposit balances, was $86,000. The final core deposit premium, measured on February 2, 2010, was $49,000. The following is an analysis of changes in the core deposit intangible assets:

	Nine months ended September 30,
(Dollars in thousands)	2010						2009
	Fair value at acquisition			Accumulated amortization			Fair value at acquisition		Accumulated amortization
Balance at beginning of period	$	5,482		$	(3,767	)	$	5,396	$	(3,159	)
Additions		-			-			86		-
Adjustments to prior estimates		(37	)		-			-		-
Amortization		-			(386	)		-		(462	)
Balance at end of period	$	5,445		$	(4,153	)	$	5,482	$	(3,621	)

Mortgage servicing rights are related to loans serviced by the Company for unrelated third parties. The outstanding principal balances of such loans were $155.6 million and $138.4 million at September 30, 2010 and December 31, 2009, respectively. Gross service fee income related to such loans was $93,000 and $79,000 for the quarters ended September 30, 2010 and 2009, respectively, which is included in fees and service charges in the consolidated statements of operations. Gross service fee income for the nine months ended September 30, 2010 and 2009 was $269,000 and $194,000, respectively. The following is an analysis of changes in the mortgage servicing rights:

Aggregate core deposit and mortgage servicing rights amortization expense for the quarters ended September 30, 2010 and 2009, was $208,000 and $196,000, respectively. Aggregate core deposit and mortgage servicing rights amortization expense for the nine months ended September 30, 2010 and 2009, was $569,000 and $574,000, respectively. The following sets forth estimated amortization expense for all intangible assets for the remainder of 2010 and in successive years ending December 31:

	As of September 30, 2010
			Gross		Gross
	Amortized		unrealized		unrealized			Estimated
(Dollars in thousands)	cost		gains		losses			fair value

U. S. federal agency obligations	$	22,093	$	206	$	-		$	22,299
Municipal obligations, tax exempt		63,789		3,616		(27	)		67,378
Municipal obligations, taxable		2,755		27		(1	)		2,781
Mortgage-backed securities		49,826		1,280		(4	)		51,102
Common stocks		693		165		(51	)		807
Pooled trust preferred securities		1,131		-		(917	)		214
Certificates of deposit		11,999		-		-			11,999
Total	$	152,286	$	5,294	$	(1,000	)	$	156,580

	As of December 31, 2009
			Gross		Gross
	Amortized		unrealized		unrealized			Estimated
(Dollars in thousands)	cost		gains		losses			fair value

U. S. federal agency obligations	$	18,734	$	356	$	-		$	19,090
Municipal obligations, tax exempt		67,149		1,938		(228	)		68,859
Municipal obligations, taxable		1,366		-		(23	)		1,343
Mortgage-backed securities		63,265		1,532		(102	)		64,695
Common stocks		633		191		(19	)		805
Pooled trust preferred securities		1,528		-		(1,267	)		261
Certificates of deposit		6,515		-		-			6,515
Total	$	159,190	$	4,017	$	(1,639	)	$	161,568

As of September 30, 2010, the Company owned three investments in pooled trust preferred securities with an original cost basis of $2.5 million, which represent investments in pools of collateralized debt obligations issued by financial institutions and insurance companies. Included in the gross unrealized losses at September 30, 2010, are noncredit-related losses of $917,000 related to two investments in pooled trust preferred securities, Preferred Term Security (“PreTSL”) VIII and PreTSL IX, which were determined to be other-than-temporarily impaired and recorded in accumulated other comprehensive income. The amortized cost of PreTSL VIII and PreTSL IX was $1.1 million at September 30, 2010. During 2009, $854,000 of credit-related impairment losses was recognized on these two securities. A credit-related, other-than-temporary impairment charge of $242,000 was taken during the third quarter of 2010 for the remaining cost basis of the third investment in a pooled trust preferred security, PreTSL XVII, and as a result the security was determined to have no value. Additional credit-related, other-than-temporary impairment charges of $140,000 and $107,000 had previously been recorded on PreTSL XVII during the second quarter of 2010 and the fourth quarter of 2009, respectively. The fair value of PreTSL VIII and PreTSL IX totaled $214,000 at September 30, 2010, while the $917,000 of unrealized losses were included in accumulated other comprehensive income, net of tax. The fair value of the three securities totaled $261,000 at December 31, 2009, while $1.3 million of unrealized losses were included in accumulated other comprehensive income, net of tax.

The summary of available-for-sale investment securities shows that some of the securities had unrealized losses, or were temporarily impaired, as of September 30, 2010 and December 31, 2009. This temporary impairment represents the estimated amount of loss that would be realized if the securities were sold on the valuation date. Securities which were temporarily impaired are shown below, along with the length of the impairment period.

			As of September 30, 2010
(Dollars in thousands)			Less than 12 months					12 months or longer					Total
	No. of		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	securities		value		losses			value		losses			value		losses
Municipal obligations, tax exempt		2	$	407	$	(3	)	$	481	$	(24	)	$	888	$	(27	)
Municipal obligations, taxable		1		999		(1	)		-		-			999		(1	)
Mortgage-backed securities		3		2,335		(4	)		-		-			2,335		(4	)
Common stocks		3		420		(44	)		17		(7	)		437		(51	)
Pooled trust preferred securities		2		-		-			214		(917	)		214		(917	)
Total		11	$	4,161	$	(52	)	$	712	$	(948	)	$	4,873	$	(1,000	)

			As of December 31, 2009
(Dollars in thousands)			Less than 12 months					12 months or longer					Total
	No. of		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	securities		value		losses			value		losses			value		losses
Municipal obligations, tax exempt		24	$	7,765	$	(167	)	$	780	$	(61	)	$	8,545	$	(228	)
Municipal obligations, taxable		2		1,233		(23	)		-		-			1,233		(23	)
Mortgage-backed securities		6		8,140		(101	)		44		(1	)		8,184		(102	)
Common stocks		4		59		(19	)		-		-			59		(19	)
Pooled trust preferred securities		3		-		-			261		(1,267	)		261		(1,267	)
Total		39	$	17,197	$	(310	)	$	1,085	$	(1,329	)	$	18,282	$	(1,639	)

The Company performs quarterly reviews of the investment portfolio to determine if investment securities have any declines in fair value which might be considered other-than-temporary. The initial review begins with all securities in an unrealized loss position. The Company’s assessment of other-than-temporary impairment is based on its reasonable judgment of the specific facts and circumstances impacting each individual security at the time such assessments are made. The Company reviews and considers all available information, including expected cash flows, the structure of the security, the credit quality of the underlying assets and the current and anticipated market conditions. Any credit-related impairments on debt securities are realized through a charge to operations. If an equity security is determined to be other-than-temporarily impaired, the entire impairment is realized through a charge to earnings.

As of September 30, 2010, the Company does not intend to sell and it is more likely than not that the Company will not be required to sell its municipal obligations in an unrealized loss position until the recovery of its cost. Due to the issuers’ continued satisfaction of the securities’ obligations in accordance with their contractual terms and the expectation that they will continue to do so, the evaluation of the fundamentals of the issuers’ financial condition and other objective evidence, the Company believes that the municipal obligations identified in the tables above were temporarily impaired as of September 30, 2010 and December 31, 2009.

The receipt of principal, at par, and interest on mortgage-backed securities is guaranteed by the respective government-sponsored agency guarantor, such that the Company believes that its mortgage-backed securities do not expose the Company to credit-related losses. Based on these factors, along with the Company’s intent to not sell the security and the Company’s belief that it is more likely than not that the Company will not be required to sell the security before recovery of its cost basis, the Company believes that the mortgage-backed securities identified in the tables above were temporarily impaired as of September 30, 2010 and December 31, 2009. The Company’s mortgage-backed securities portfolio consists of securities underwritten to the standards of and guaranteed by the government-sponsored agencies of FHLMC, FNMA and GNMA.

As of September 30, 2010, the Company owned three investments in pooled trust preferred securities with an original cost basis of $2.5 million. The market for these securities is considered to be inactive. The Company used discounted cash flow models to assess if the present value of the cash flows expected to be collected was less than the amortized cost, which would result in an other-than-temporary impairment associated with the credit of the underlying collateral. The assumptions used in preparing the discounted cash flow models include the following: estimated discount rates, estimated deferral and default rates on collateral, expected recoveries, and estimated cash flows including all information available through the date of issuance of the financial statements. The discounted cash flow analysis included a review of all issuers within the collateral pool and incorporated higher deferral and default rates, as compared to historical rates, in the cash flow projections through maturity.

As of September 30, 2010, the analysis of the Company’s three investments in pooled trust preferred securities indicated that the unrealized losses on two of the three securities were not credit-related. However, the analysis indicated that the unrealized loss was other-than-temporary on PreTSL XVII. The increase in nonperforming collateral in PreTSL XVII resulted in a credit-related other-than-temporary impairment for the remaining cost basis of $242,000 during the quarter ended September 30, 2010. The cumulative realized loss on PreTSL XVII totaled $489,000. The Company performed a discounted cash flow analysis, using the factors noted above to determine the amount of the other-than-temporary impairment that was applicable to either credit losses or other factors. As of September 30, 2010, the Company had recorded credit losses on all three PreTSL securities totaling $1.3 million through charges to earnings during 2009 and the first nine months of 2010.

	Three months ending September 30,
(Dollars in thousands)	2010		2009
Beginning balance	$	1,101	$	576
Additional credit losses:
Securities with no previous other-than-temporary impairment		-		-
Securities with previous other-than-temporary impairments		242		133
Ending balance	$	1,343	$	709

	Nine months ending September 30,
(Dollars in thousands)	2010		2009
Beginning balance	$	961	$	-
Additional credit losses:
Securities with no previous other-than-temporary impairment		-		709
Securities with previous other-than-temporary impairments		382		-
Ending balance	$	1,343	$	709

It is reasonably possible that the fair values of the Company’s investment securities could decline in the future if the overall economy and/or the financial condition of some of the issuers of these securities deteriorate and/or if the liquidity in markets for these securities declines. As a result, there is a risk that additional other-than-temporary impairments may occur in the future and any such amounts could be material to the Company’s consolidated financial statements. The fair value of the Company’s investment securities may also decline from an increase in market interest rates, as the market prices of these investments move inversely to their market yields.

Other investment securities primarily include restricted investments in Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock. The carrying value of the FHLB stock at September 30, 2010 and December 31, 2009 was $6.3 million and $6.2 million, respectively and the carrying value of the FRB stock at September 30, 2010 and December 31, 2009 was $1.8 million. These securities are not readily marketable and are required for regulatory purposes and borrowing availability. Since there are no available market values for these securities, they are carried at cost. Redemption of these investments at par value is at the option of the FHLB or FRB. The Company has assessed the ultimate recoverability of these investments and believe that no impairment has occurred.

(Dollars in thousands)	September 30,			December 31,
	2010			2009
One-to-four family residential real estate	$	91,729		$	98,333
Commercial real estate		102,014			106,470
Construction and land		26,439			36,864
Commercial loans		101,100			98,213
Consumer loans		5,989			7,884
Total gross loans		327,271			347,764
Deferred loan fees, costs and loans in process		242			442
Allowance for loan losses		(4,600	)		(5,468	)
Loans, net	$	322,913		$	342,738

Percent of total:
One-to-four family residential real estate		28.0	%		28.3	%
Commercial real estate		31.2	%		30.6	%
Construction and land		8.1	%		10.6	%
Commercial loans		30.9	%		28.2	%
Consumer loans		1.8	%		2.3	%
Total gross loans		100.0	%		100.0	%

Loans past due 30-89 days and still accruing interest totaled $2.7 million, or 0.8% of gross loans, at September 30, 2010, compared to $2.5 million, or 0.7% of gross loans, at December 31, 2009. Loans past due more than a month totaled $5.3 million, or 1.6% of gross loans, at September 30, 2010, compared to $13.3 million, or 3.8% of gross loans, at December 31, 2009. At September 30, 2010, $4.5 million in loans were on non-accrual status, or 1.4% of gross loans, compared to a balance of $11.8 million, or 3.4% of gross loans, at December 31, 2009. Non-accrual loans consist of loans 90 days or more past due and impaired loans that are not past due. There were no loans 90 days or more delinquent and still accruing interest at September 30, 2010 or December 31, 2009.

	September 30,			December 31,
(Dollars in thousands)	2010			2009
Total non-accrual loans	$	4,469		$	11,830
Accruing loans over 90 days past due		-			-
Nonperforming investments		1,131			1,528
Real estate owned		4,093			1,129
Total nonperforming assets	$	9,693		$	14,487

Total nonperforming loans to gross loans		1.4	%		3.4	%
Total nonperforming assets to total assets		1.7	%		2.5	%
Allowance for loan losses to gross loans outstanding		1.4	%		1.6	%
Allowance for loan losses to nonperforming loans		102.9	%		46.2	%

(Dollars in thousands)	September 30,		December 31,
	2010		2009
One-to-four family residential real estate	$	1,386	$	1,146
Commercial real estate		45		1,475
Construction and land		1,241		6,402
Commercial loans		1,762		2,785
Consumer loans		35		22
Total impaired loans	$	4,469	$	11,830

Impaired loans for which an allowance has been provided	$	2,768	$	10,620
Impaired loans for which no allowance has been provided		1,701		1,210
Allowance related to impaired loans	$	1,015	$	2,770

At September 30, 2010, the Company had a loan relationship totaling $853,000 that has been classified as a troubled debt restructuring. As of September 30, 2010, the value of the collateral securing the loan was deficient by $308,000, which was reserved for in the allowance related to impaired loans. The relationship consisted of two restructured 1-4 family residential real estate loans to a borrower who was experiencing financial difficulty and granted concessions at renewal. The interest rate on $308,000 of the loan relationship was judged to be below market for new debt with similar risk, and thus both of these loans were classified as troubled debt restructurings. These restructured loans are performing in accordance with their modified terms and the Company believes it probable that all amounts due under the modified terms of the agreements will be collected. At September 30, 2010 both loans were classified as non-accrual and impaired.

(Dollars in thousands, except per share amounts)	Three months ended September 30,				Nine months ended September 30,
	2010		2009		2010		2009
Net earnings	$	1,103	$	113	$	1,199	$	2,134

Weighted average common shares outstanding - basic		2,504,265		2,490,023		2,500,906		2,490,201
Assumed exercise of stock options		2,080		5,086		2,333		5,158
Weighted average common shares outstanding - diluted		2,506,345		2,495,109		2,503,239		2,495,359
Net earnings per share (1):
Basic	$	0.44	$	0.05	$	0.48	$	0.86
Diluted	$	0.44	$	0.05	$	0.48	$	0.86

(Dollars in thousands)	Three months ended September 30,						Nine months ended September 30,
	2010			2009			2010			2009
Net earnings	$	1,103		$	113		$	1,199		$	2,134

Unrealized holding losses on available-for-sale
securities for which a portion of an other-than-
temporary impairment has been recorded in earnings		(42	)		(154	)		(32	)		(339	)
Net unrealized holding gains on all other
available-for-sale securities		1,030			3,462			2,120			2,982
Less reclassification adjustment for losses (gains)
included in earnings		251			133			(172	)		709
Net unrealized gains		1,239			3,441			1,916			3,352
Income tax expense		461			1,270			710			1,224
Total comprehensive income	$	1,881		$	2,284

Delaware		43-1930755
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

701 Poyntz Avenue, Manhattan, Kansas		66502
(Address of principal executive offices)		(Zip Code)

	Nine months ended September 30,
(Dollars in thousands)	2010						2009
	Cost			Accumulated amortization			Cost			Accumulated amortization
Balance at beginning of period	$	1,447		$	(681	)	$	772		$	(602	)
Additions		343			-			671			-
Prepayments		(76	)		76			(67	)		67
Amortization		-			(183	)		-			(112	)
Balance at end of period	$	1,714		$	(788	)	$	1,376		$	(647	)

Year	Amount (in thousands)
Remainder of 2010	$	210
2011		760
2012		664
2013		364
2014		145
Thereafter		75

			Non-performing collateral as %
	Number of		of current collateral (at quarter end)
Investment	issuers in pool		Q4 2009			Q1 2010			Q2 2010			Q3 2010
PreTSL VIII		37		43.7	%		43.7	%		43.7	%		43.7	%
PreTSL IX		51		28.1	%		29.2	%		29.2	%		29.2	%
PreTSL XVII		58		19.9	%		20.6	%		24.0	%		35.7	%

(Dollars in thousands)														Cumulative
			Moody's		Original		Cost		Fair		Unrealized			realized
Investment	Class		rating		par		basis		value		loss			loss
PreTSL VIII		B		C	$	1,000	$	381	$	57	$	(325	)	$	(619	)
PreTSL IX		B		C		1,000		750		157		(592	)		(235	)
PreTSL XVII		C		C		500		-		-		-			(489	)
Total					$	2,500	$	1,131	$	214	$	(917	)	$	(1,343	)