Belmont Savings Bank (OH)

1-44 Family Mortgage Ratio As Reported.

Please note the following:

Per UBPR of 3/31/2011, Belmont Savings Bank's UBPR Report, page 9, breaks out the Bank's percentage of assets as follows: Loans net 15.91% of assets, GNMA-FNMA--FHLMC MBS Passthroughs HTM 54.99% and AFS 26.02. The PASSTHROUGHS carry the full faith and credit of the US Treasury. When you report that the 1-4 family mortgage/loans is 75.28%, I believe that distorts the true financial makeup of the bank's balance sheet. You are correct that the bank's dependency ratio is high, but please note that only 1/3rd of the bank's MBS' are pledged and that the bank's MBS portfolio was $$349,458,287 as of 3/31/2011, and that makes up 81% of the bank's assets. The issue over fees being low is recognized by Management and the Board of Directors, and also that the deposit customer s of the bank are the actual owners in a mutual institution. You are correct in the analysis of the dependency ratio, however, only 1/3rd of the MBS' are pledged, and that leaves over $200,000,000.00 not pledged. Liquidity is an issue that is viewed in many ways and this is open to how one views liquidity. The Teaxs ratio of this Bank was 5.88% as of 3/31/2011. I believe that covers any questions about the coverage ratio of Belmont Savings Bank. Thank you for allowing me to comment on your website. Thomas Poe, President and CEO of Belmont Savings Bank- Bellaire, Ohio.