Perpetual Federal Savings Bank of Urbana(OTCBB: “PFOH”) reported second quarter net income for fiscal 2011 of $645,000 or basic and diluted earnings per share of $0.26 for the quarter ended March 31, 2011, compared to net income of $708,000 or basic and diluted earnings per share of $0.29 for the quarter ended March 31, 2010.

For the six months ended March 31, 2011, the Bank reported $1.4 million of net income, or $0.56 per share of basic and diluted earnings, compared to $1.4 million of net income, or $0.55 per share of basic and diluted earnings for the six months a year earlier.

Net interest income increased for the three and six months ended March 31 compared to the prior comparable periods due to decreases in interest expense, which more than offset decreased interest income.

Declining interest rates resulted in decreased interest expense during the three and six month periods ended March 31 as compared to the same periods in 2010.

The Savings Bank’s interest income decreased during the three and six month periods ended March 31 compared to the prior comparable periods. Lower rates paid on interest-bearing deposits and loans resulted in decreased interest income for the three and six months ended March 31 compared to the same periods in 2010.