~~Table~~UNITED ~~of Contents~~STATES

~~UNITED~~SECURITIES ~~STATES~~AND EXCHANGE COMMISSION

~~SECURITIES~~Washington, ~~AND EXCHANGE COMMISSION~~ D.C. 20549

~~Washington,~~FORM ~~D.C. 20549~~ 10-K

~~FORM~~[X] ~~10-K~~ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT of 1934

xFor ~~ANNUAL~~the ~~REPORT~~Fiscal ~~PURSUANT~~Year TOEnded ~~SECTION~~December 1331, ~~or 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 [FEE REQUIRED]~~2011

~~For~~[ ~~the~~] ~~Fiscal~~TRANSITION ~~Year~~REPORT ~~Ended~~PURSUANT ~~December 31,~~TO ~~2010~~SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

¨For ~~TRANSITION~~the ~~REPORT~~transition ~~PURSUANT~~period TOfrom ~~SECTION~~___________to ~~13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]~~___________.

~~For~~Commission ~~the~~File ~~transition period from to~~ No. 000-24147

Commission File No. 000-24147

Killbuck Bancshares, Inc.
(Exact name of registrant as specified in its charter)

Ohio		34-1700284
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

165 North Main Street Killbuck, Ohio 44637
(Address of principal executive offices)

~~Killbuck~~Registrant's ~~Bancshares~~telephone number, ~~Inc.~~including area code: (330) 276-2771

~~(Exact~~Securities ~~name~~to ofbe ~~registrant~~registered aspursuant ~~specified~~to inSection ~~its charter~~12(b) of the Act: None

Ohio		34-1700284
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Securities to be registered pursuant to Section 12(g) of the Act:

~~165~~Title ~~North~~of ~~Main~~each ~~Street~~ class Name of each exchange on which registered Common Stock No Par Value None

~~Killbuck~~Indicate by check mark if the registrant is a well-known seasoned issuer, ~~Ohio~~as ~~44637~~defined in Rule 405 of the Securities Act.Yes [ ]No [ x ]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(~~Address~~d) of ~~principal~~the ~~executive~~Exchange ~~offices)~~Act.Yes [ ]No [ x ]

~~Registrant’s~~Indicate ~~telephone number,~~by ~~including~~check ~~area~~mark ~~code:~~whether the registrant (~~330~~1) ~~276-2771~~ has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period than the registrant was required to file such report(s), and (2) has been subject to such filing requirements for the past 90 days. [x] Yes [ ] No

~~Securities~~Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be ~~registered~~submitted and posted pursuant to ~~Section 12~~Rule 405 of Regional S-T (b)§ 232.405 of this chapter) during the ~~Act:~~preceding ~~None~~12 months (or for such shorter period that the registrant was required to submit and post such files). [x] Yes [ ] No

~~Securities~~Indicate toby becheck ~~registered~~mark if disclosure of delinquent filers pursuant to ~~Section 12(g)~~ Item 405 of Regulation S-K is not contained herein, and will not be contained, to the ~~Act:~~best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in part III of this Form 10-K or any amendment to this Form 10-K. [x]

~~Title~~Indicate ofby ~~each~~check ~~class~~mark ~~Name~~whether ofthe ~~each~~registrant ~~exchange~~is ona ~~which~~large ~~registered~~accelerated ~~Common~~filer, ~~Stock~~an Noaccelerated ~~Par~~filer, ~~Value~~a ~~None~~non-accelerated filer, or a small reporting company (Check one):

~~Indicate~~Large ~~by check~~accelerated ~~mark~~filer if[ ~~the~~] ~~registrant~~Accelerated isfiler a[ ~~well~~] Non-~~known~~accelerated ~~seasoned~~filer ~~issuer,~~[ as] ~~defined~~Smaller inreporting ~~Rule~~Company ~~405~~[ ofX ~~the Securities Act. Yes ¨ No x~~ ]

Indicate by check mark ifwhether the registrant is ~~not~~a ~~required~~shell tocompany ~~file~~(as ~~reports~~defined ~~pursuant to~~in ~~Section 13~~Rule or12b-2 ~~Section 15(d)~~ of the Exchange Act). Yes ¨ [ ]No [ x ]

~~Indicate~~The byaggregate ~~check~~market ~~mark~~value ~~whether~~of the ~~registrant~~voting ~~(1) has~~stock ~~filed~~held ~~all~~by ~~reports~~nonaffiliates ~~required~~of tothe beregistrant, ~~filed~~calculated by ~~Section 13~~reference orto ~~15(d)~~the ofstock ~~the~~valuation ~~Securities~~done ~~Exchange Act~~on ofKillbuck ~~1934~~Bancshares, ~~during~~Inc. ~~the~~common ~~preceding~~stock 12as ~~months~~of ~~(or~~June ~~for~~30, ~~such~~2011 ~~shorter~~was ~~period~~$63.8 ~~than~~million ~~the~~(Registrant ~~registrant~~has ~~was~~assumed ~~required~~that toall ~~file~~of ~~such~~its ~~report(s),~~executive officers and ~~(2) has~~directors ~~been~~are ~~subject~~affiliates. Such toassumption ~~such~~shall ~~filing~~not ~~requirements~~be ~~for~~deemed ~~the~~to ~~past~~be 90conclusive ~~days. x Yes ¨ No~~for any other purpose):

~~Indicate~~There bywere ~~check mark whether the registrant has submitted electronically and posted on its corporate Website~~613,771 ifshares ~~any,~~of ~~every~~no ~~Interactive~~par ~~Data~~value ~~File~~common ~~required~~stock tooutstanding beas ~~submitted and posted pursuant to Rule 405~~ of ~~Regional~~December ~~S-T~~31, ~~(§ 232~~2011.~~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~~

~~Indicate~~DOCUMENTS byINCORPORATED ~~check~~BY mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in part III of this Form 10-K or any amendment to this Form 10-K. x REFERENCE

~~Indicate~~1. byPortions ~~check~~of ~~mark whether~~ the ~~registrant~~2011 isAnnual aReport ~~large~~to ~~accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company (Check one):~~ Shareholders

~~Large~~2. ~~accelerated~~Portions ~~filer~~of ¨the ~~Accelerated~~Proxy ~~filer~~Statement ¨for ~~Non-accelerated~~the ~~filer~~Annual ¨Meeting ~~Smaller~~of ~~reporting~~Shareholders ~~Company~~to xbe held on May 14, 2011. (Part III)

~~Indicate~~FORM ~~by check mark whether the registrant is a shell company (as defined in Rule 12b~~10-2K ~~of the Exchange Act). Yes ¨ No x~~ INDEX

The aggregate market value of the voting stock held by nonaffiliates of the registrant, calculated by reference to the stock valuation done on Killbuck Bancshares, Inc. common stock as of December 31, 2010 was $63.3 million (Registrant has assumed that all of its executive officers and directors are affiliates. Such assumption shall not be deemed to be conclusive for any other purpose):

PART I

Item 1.	Business

Item 1A	Risk Factors

Item 1B	Unresolved Staff Comments

Item 2.	Properties

Item 3.	Legal Proceedings

Item 4.	Mine Safety Disclosures

PART II

Item 5.	Market for the Registrant's Common Stock, Related Stockholder Matters and Issuer Purchase of Equity Securities

Item 6.	Selected Financial Data

Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7A.	Quantitative and Qualitative Disclosure About Market Risk

Item 8.	Financial Statements and Supplementary Data

Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9A.	Controls and Procedures

Item 9B.	Other Information

PART III

Item 10.	Directors, Executive Officers and Corporate Governance

Item 11.	Executive Compensation

Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 13.	Certain Relationships and Related Transactions, and Director Independence

Item 14.	Principal Accounting Fees and Services

PART IV

Item 15.	Exhibits and Financial Statement Schedules

~~There~~PART ~~were 615,945 shares of no par value common stock outstanding as of December 31, 2010.~~ I

~~DOCUMENTS~~Killbuck ~~INCORPORATED~~Bancshares, BYInc. ~~REFERENCE~~(the “Company”) may from time to time make written or oral “forward-looking statements”, including statements contained in the Company’s filings with the Securities and Exchange Commission (including this Annual Report on Form 10-K and the Exhibits thereto), in its report to shareholders and in other communications by the Company, which are made in good faith by the Company pursuant to the “safe harbor” provisions of the private securities litigation reform act of 1995.

1.These ~~Portions~~forward-looking statements involve risks and uncertainties, such as statements of the ~~2010~~Company’s ~~Annual~~plans, ~~Report~~objectives, expectations, estimates and intentions that are subject to ~~Shareholders~~change based on various important factors (some of which are beyond the Company’s control). The following factors, among others, could cause the Company’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, changes in real estate values in the Company’s primary lending areas, market and monetary fluctuations; the impact of changes in financial services’ laws and regulations (including laws concerning taxes, banking, securities and insurance); technological changes, acquisitions; changes in consumer spending and savings habits; and the success of the Company at managing the risks involved in the foregoing.

2.The ~~Portions~~Company ofcautions that the ~~Proxy~~foregoing ~~Statement~~list ~~for~~of ~~the~~important ~~Annual~~factors ~~Meeting~~is ofnot ~~Shareholders~~exclusive. The Company does not undertake to beupdate ~~held~~any onforward-looking ~~May~~statement, 9whether written or oral, ~~2011.~~that ~~(Part~~may ~~III)~~be made from time to time by or on behalf of the Company.

~~Table~~Item ~~of Contents~~1. Business

~~FORM~~Killbuck ~~10-K~~Bancshares, ~~INDEX~~Inc. (the "Company") was incorporated under the laws of the State of Ohio for the primary purpose of acquiring and holding all of the outstanding shares of The Killbuck Savings Bank Company (the “Bank”). The principal office of the Company is located at 165 N. Main Street, Killbuck, Ohio. The Killbuck Savings Bank Company was incorporated under the banking laws of the State of Ohio in 1900.

PART I
Item 1.	Business	3
Item 1A	Risk Factors	9
Item 1B	Unresolved Staff Comments	9
Item 2.	Properties	9
Item 3.	Legal Proceedings	10
Item 4.	Removed and Reserved	10
PART II
Item 5.	Market for the Registrant’s Common Stock, Related Stockholder Matters and Issuer Purchase of Equity Securities	10
Item 6.	Selected Financial Data	12
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 7A.	Quantitative and Qualitative Disclosure About Market Risk	21
Item 8.	Financial Statements and Supplementary Data	22
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	22
Item 9A.	Controls and Procedures	22
Item 9B.	Other Information	23
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	23
Item 11.	Executive Compensation	24
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	24
Item 13.	Certain Relationships and Related Transactions, and Director Independence	24
Item 14.	Principal Accounting Fees and Services	24
PART IV
Item 15.	Exhibits and Financial Statement Schedules	24

The Bank is headquartered in Killbuck, Ohio, which is in Holmes County. Holmes County is located in northeastern Ohio, and has a population of approximately 42,000.

2The Bank provides a wide range of retail banking services to individuals and small to medium-sized businesses. These services include various deposit products, business and personal loans, credit cards, residential mortgage loans, home equity loans, internet banking, bill payment, and other consumer oriented financial services including IRA accounts, Health Savings Accounts (“HSA”), safe deposit and night depository facilities. The Bank also has automatic teller machines (“ATM”) located at all locations providing 24 hour banking service to our customers. The Bank belongs to STAR, a national ATM network with thousands of locations nationwide. Neither the Company nor the Bank has any foreign operations, assets, investments or deposits.

~~Table~~The ofBank ~~Contents~~is the Company’s sole subsidiary. The Bank has ten offices, with seven in Holmes County including a loan production office, two in Knox County and one in Tuscarawas County.

~~PART~~The ICompany, through its Bank subsidiary, conducts the business of a commercial banking organization. At December 31, 2011, the Company and its subsidiary had total consolidated assets of $436.5 million and total consolidated shareholders’ equity of $45.2 million. The capital of the Company consists of 1,000,000 authorized shares of capital stock, no par value of which 613,771 shares were issued and outstanding at December 31, 2011 to 988 shareholders.

~~Killbuck~~The ~~Bancshares,~~Bank ~~Inc.~~is ~~(the~~a ~~“Company”)~~state ~~may~~chartered ~~from~~commercial ~~time to time make written or oral “forward-looking statements”~~bank, ~~including~~regulated ~~statements~~by ~~contained in~~ the ~~Company’s~~Ohio ~~filings~~Division ~~with~~of ~~the securities~~Financial ~~and~~Institutions ~~exchange commission~~ (~~including~~"ODFI") ~~this Annual Report on Form 10-K~~ and the ~~Exhibits~~Federal ~~thereto~~Reserve Board (“FRB”), inwith its ~~report~~deposits toinsured ~~shareholders and in other communications~~ by the ~~Company,~~Federal ~~which~~Deposit ~~are~~Insurance ~~made~~Corporation ~~in good faith by the Company pursuant to the~~ (“~~safe harbor~~FDIC”) ~~provisions~~to of the ~~private~~extent ~~securities~~permitted ~~litigation~~by ~~reform act of 1995~~law.

These forward-looking statements involve risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). The following factors, among others, could cause the Company’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, changes in real estate values in the Company’s primary lending areas, market and monetary fluctuations; the impact of changes in financial services’ laws and regulations (including laws concerning taxes, banking, securities and insurance); technological changes, acquisitions; changes in consumer spending and savings habits; and the success of the Company at managing the risks involved in the foregoing. Employees

~~The~~As ~~Company~~of ~~cautions~~December ~~that~~31, 2011, the ~~foregoing~~Bank ~~list~~had of100 ~~important~~full-time ~~factors~~and is21 ~~not~~part-time ~~exclusive~~employees. The Company ~~does~~had ~~not~~no ~~undertake~~employees. The toBank ~~update~~provides ~~any~~a ~~forward~~number of benefits for its full-~~looking statement~~time employees, ~~whether~~including ~~written~~health orand ~~oral~~life insurance, ~~that~~pension, ~~may~~workers' becompensation, ~~made~~social ~~from~~security, ~~time~~paid tovacations, ~~time~~and bynumerous bank services. No employees are union participants or onsubject ~~behalf~~to ofa ~~the~~collective ~~Company.~~bargaining agreement.

~~Item 1. Business~~ Competition

~~Killbuck~~The ~~Bancshares,~~commercial ~~Inc.~~banking ~~(the~~business ~~“Company”)~~in ~~was incorporated under~~ the ~~laws~~market ofareas ~~the~~served ~~State~~by ~~of Ohio for~~ the ~~primary~~Bank ~~purpose~~is ofvery ~~acquiring~~competitive. Many ~~and holding all~~ of ~~the~~these ~~outstanding~~competitors ~~shares~~are ofsubstantially ~~The~~larger ~~Killbuck Savings~~than ~~Bank Company (~~the “Bank”). In ~~The~~addition ~~principal~~to ~~office~~local ofbank competition, the ~~Company~~Bank iscompetes ~~located~~with atlarger ~~165~~commercial N.banks ~~Main~~headquartered ~~Street,~~in ~~Killbuck~~metropolitan areas, ~~Ohio.~~savings ~~The~~banks, ~~Killbuck~~credit ~~Savings~~unions, ~~Bank~~finance ~~Company~~companies ~~was~~and ~~incorporated~~other ~~under~~financial ~~the~~intermediaries ~~banking~~for ~~laws~~loans ofand ~~the State of Ohio in 1900~~deposits.

~~The~~There ~~Bank~~are iseight ~~headquartered~~financial institutions operating in ~~Killbuck,~~Holmes ~~Ohio~~County. As of June 30, 2011 (the most recent date for which such information is inavailable), ~~Holmes~~the ~~County.~~Bank ~~Holmes~~had ~~County~~the islargest ~~located~~market share with $288.3 million in ~~northeastern~~total ~~Ohio,~~deposits ~~and~~as ~~has~~of such date, representing a ~~population~~market share of approximately ~~41,000~~45%. The institution with the second largest market share had deposits of $231.7 million as of such date, representing a market share of approximately 36%.

~~The~~Regulation ~~Bank provides a wide range of retail banking services to individuals~~ and small to medium-sized businesses. These services include various deposit products, business and personal loans, credit cards, residential mortgage loans, home equity loans, internet banking, bill payment, and other consumer oriented financial services including IRA accounts, Health Savings Accounts (“HSA”), safe deposit and night depository facilities. The Bank also has automatic teller machines (“ATM”) located at all locations providing 24 hour banking service to our customers. The Bank belongs to STAR, a national ATM network with thousands of locations nationwide. Neither the Company nor the Bank has any foreign operations, assets, investments or deposits. Supervision

The ~~Bank~~following is ~~the~~a ~~Company’s~~summary ~~sole~~of ~~subsidiary.~~certain ~~The~~statutes ~~Bank~~and ~~has~~regulations ~~ten~~affecting ~~offices,~~the ~~with~~Company ~~seven~~and inits ~~Holmes~~subsidiary. This ~~County~~summary ~~including~~is aqualified ~~loan~~in ~~production~~its ~~office,~~entirety ~~two~~by insuch ~~Knox~~statutes ~~County~~ and ~~one in Tuscarawas County~~regulations.

3The Company

~~Table of Contents~~General

The Company, ~~through~~is ~~its~~a ~~Bank~~registered ~~subsidiary,~~bank ~~conducts~~holding ~~the~~company ~~business~~under ofthe aBank ~~commercial~~Holding ~~banking~~Company ~~organization.~~Act ~~At December 31~~of 1956, ~~2010~~as amended, ~~the~~("BHC ~~Company~~Act") and ~~its~~as ~~subsidiary~~such ~~had~~is ~~total~~subject ~~consolidated~~to ~~assets~~regulation ofby ~~$405~~the FRB.1 A ~~million~~bank ~~and~~holding ~~total~~company ~~consolidated~~is ~~shareholders’~~required ~~equity~~to offile ~~$43.7~~with ~~million. The capital of~~ the ~~Company~~FRB ~~consists~~quarterly ofreports ~~1,000,000~~and ~~authorized~~other ~~shares~~information ofregarding ~~capital stock,~~its nobusiness ~~par~~operations ~~value~~and those of ~~which~~its ~~615,945~~subsidiaries. A ~~shares~~bank ~~were~~holding ~~issued~~company and ~~outstanding~~its atsubsidiary ~~December 31,~~banks ~~2010~~are also subject to ~~1,001~~examination ~~shareholders.~~by the FRB.

~~The~~Financial ~~Bank~~Services isModernization aAct ~~state chartered commercial bank, regulated by the Ohio Division~~ of ~~Financial Institutions (“ODFI”) and the Federal Reserve Board (“FRB”), with its deposits insured by the Federal Deposit Insurance Corporation (“FDIC”) to the extent permitted by law.~~ 1999

~~Employees~~Under the Gramm-Leach-Bliley Act (better known as the Financial Services Modernization Act of 1999), bank holding companies are entitled to become financial holding companies and thereby affiliate with securities firms and insurance companies and engage in other activities that are financial in nature. A bank holding company may become a financial holding company if each of its subsidiary banks is well capitalized under the Federal Deposit Insurance Corporation Act of 1991 prompt corrective action provisions, is well managed, and has at least a satisfactory rating under the Community Reinvestment Act by filing a declaration that the bank holding company wishes to become a financial holding company. No regulatory approval will be required for a financial holding company to acquire a company, other than a bank or savings association, engaged in activities that are financial in nature or incidental to activities that are financial in nature, as determined by the FRB.

~~As of December 31, 2010, the Bank had 98 full-time and 25 part-time employees.~~ The ~~Company~~Financial ~~had~~Services noModernization ~~employees.~~Act ~~The~~defines ~~Bank~~“financial ~~provides~~in anature” number of benefits for its full-time employees, including health and life insurance, pension, workers’ compensation, social security, paid vacations, and numerous bank services. No employees are union participants or subject to ~~a collective bargaining agreement.~~ include:

~~Competition~~· securities underwriting, dealing and market making;

~~The~~· ~~commercial banking~~sponsoring ~~business~~mutual infunds the market areas served by the Bank is very competitive. Many of these competitors are substantially larger than the Bank. In addition to local bank competition, the Bank competes with larger commercial banks headquartered in metropolitan areas, savings banks, credit unions, finance companies and ~~other~~investment ~~financial intermediaries for loans and deposits.~~ companies;

~~There~~· ~~are eight~~insurance ~~financial~~underwriting ~~institutions~~and operating in Holmes County. As of June 30, 2010 (the most recent date for which such information is available), the Bank had the largest market share with $259.0 million in total deposits as of such date, representing a market share of approximately 44%. The institution with the second largest market share had deposits of $216.3 million as of such date, representing a market share of approximately 37%. agency;

~~Regulation~~· merchant bank activities and ~~Supervision~~activities that the Federal Reserve Board has determined to be closely relating to banking.

~~The following~~In isaddition, a ~~summary~~financial ofholding ~~certain~~company ~~statutes~~may ~~and~~not ~~regulations~~acquire ~~affecting~~a ~~the~~company ~~Company~~that ~~and~~is ~~its~~engaged ~~subsidiary.~~in ~~This~~activities ~~summary~~that isare ~~qualified~~financial in ~~its~~nature ~~entirety~~unless byeach ~~such~~of ~~statutes~~the ~~and~~subsidiary ~~regulations.~~banks of the financial holding company has a Community Reinvestment Act rating of satisfactory or better.

~~The~~Affiliate ~~Company~~ Transactions

~~General~~Various governmental requirements, including Sections 23A and 23B of the Federal Reserve Act, limit borrowings by holding companies and non-bank subsidiaries from affiliated insured depository institutions, and also limit various other transactions between holding companies and their non-bank subsidiaries, on the one hand, and their affiliated insured depository institutions on the other. Section 23A of the Federal Reserve Act also generally requires that an insured depository institution’s loan to its non-bank affiliates be secured, and Section 23B of the Federal Reserve Act generally requires that an insured depository institution’s transactions with its non-bank affiliates be on arms-length terms.

~~The~~Control Company is a registered bank holding company under the Bank Holding Company Act of 1956, as amended, (“BHC Act”) and as such is subject to regulation by the FRB. A bank holding company is required to file with the FRB quarterly reports and other information regarding its business operations and those of its subsidiaries. A bank holding company and its subsidiary banks are also subject to examination by the FRB. Acquisitions

~~Financial~~The ~~Services~~Change ~~Modernization~~in Bank Control Act prohibits a person or group of ~~1999~~persons from acquiring “control” of a bank holding company, unless the FRB has been notified and has not objected to the transaction. Under the rebuttable presumption established by the FRB, the acquisition of 10% or more of a class of voting stock of a bank holding company with a class of securities registered under Section 12 of the Exchange Act, such as the Company, would, under the circumstances set forth in the presumption, constitute acquisition of control of the bank holding company.

~~Under~~In addition, the ~~Gramm-Leach-Bliley~~BHC Act ~~(better~~requires ~~known~~every asbank holding company to obtain the ~~Financial~~prior ~~Services~~approval ~~Modernization~~of ~~Act~~the FRB before acquiring substantially all the assets of ~~1999),~~any bank or bank holding ~~companies~~company ~~are~~or ~~entitled~~ownership toor ~~become financial~~control of any voting shares of any bank or bank holding ~~companies~~company, ~~and~~if, ~~thereby~~after ~~affiliate~~such ~~with~~acquisition, ~~securities~~it ~~firms~~would ~~and~~own ~~insurance~~or ~~companies~~control, ~~and~~directly ~~engage~~or inindirectly, ~~other~~more ~~activities~~than ~~that~~five ~~are~~percent ~~financial~~(5%) inof ~~nature.~~the Avoting shares of such bank or bank holding company, ~~may~~or ~~become~~would otherwise be able to exercise a ~~financial~~“controlling influence” over the other bank or holding company. In ifapproving ~~each~~acquisitions by bank holding companies of ~~its~~companies ~~subsidiary banks~~engaged isin ~~well~~banking-related ~~capitalized~~activities, ~~under~~the FRB considers whether the ~~Federal~~performance ~~Deposit~~of ~~Insurance~~any ~~Corporation~~such ~~Act~~activity by a subsidiary of ~~1991~~the ~~prompt~~holding ~~corrective~~company ~~action~~reasonably ~~provisions,~~can isbe ~~well~~expected ~~managed~~to produce benefits to the public, ~~and~~such ~~has~~as atgreater ~~least~~convenience, aincreased ~~satisfactory~~competition, ~~rating~~or ~~under~~gains ~~the~~in ~~Community~~efficiency, ~~Reinvestment~~which ~~Act~~outweigh bypossible ~~filing~~adverse aeffects, ~~declaration~~such ~~that~~as ~~the bank~~over ~~holding~~concentration ~~company~~of ~~wishes~~resources, todecrease ~~become~~of acompetition, ~~financial~~conflicts ~~holding~~of ~~company.~~interest, Noor unsound banking practices.

4Securities Laws and Compliance

~~Table~~In 1998, the Company's common stock was registered under the Securities Exchange Act of ~~Contents~~1934, as amended ("1934 Act"). This registration requires ongoing compliance with the 1934 Act and its periodic filing requirements, as well as a wide range of federal and state securities laws. These requirements include, but are not limited to, the filing of annual, quarterly and other reports with the SEC, certain requirements as to the solicitation of proxies from shareholders, as well as other proxy rules, and compliance with the reporting requirements and "short-swing" profit rules imposed by section 16 of the 1934 Act.

~~regulatory~~The approval will be required for a financial holding company to acquire a company, other than a bank or savings association, engaged in activities that are financial in nature or incidental to activities that are financial in nature, as determined by the FRB. Bank

The ~~Financial~~Company ~~Services~~operates ~~Modernization~~the ~~Act~~Bank ~~defines “financial~~as inits ~~nature”~~only subsidiary. As an Ohio state-chartered commercial bank, the Bank is supervised and regulated by the ODFI, and is subject to ~~include:~~the laws and regulations applicable to all Ohio commercial banks.

•Capital ~~securities underwriting, dealing and market making;~~Requirements

•The ~~sponsoring~~FRB, ~~mutual~~ODFI, ~~funds~~and FDIC require banks and ~~investment~~holding companies; to maintain minimum capital ratios.

•The ~~insurance~~FRB ~~underwriting~~has promulgated "risk-adjusted" capital guidelines for bank holding companies. The ODFI and ~~agency;~~FDIC have adopted substantially similar risk-based capital guidelines with respect to the Bank. These ratios involve a mathematical process of assigning various risk weights to different classes of assets, then evaluating the sum of the risk-weighted balance sheet structure against the Company's capital base. The rules set the minimum guidelines for the ratio of capital to risk-weighted assets (including certain off-balance sheet activities, such as standby letters of credit) at 8%. At least half of the total capital is to be composed of common equity, retained earnings, and a limited amount of perpetual preferred stock less certain goodwill items ("Tier 1 Capital"). The remainder may consist of a limited amount of subordinated debt, other preferred stock, or a limited amount of loan loss reserves.

•In ~~merchant~~addition, the federal banking regulatory agencies have adopted leverage capital guidelines for banks and bank ~~activities~~holding companies. Under these guidelines, banks and ~~activities~~bank ~~that~~holding ~~the~~companies must maintain a minimum ratio of three percent (3%) Tier 1 Capital to total assets. The Federal Reserve Board has ~~determined~~indicated, tohowever, bethat ~~closely~~banking ~~relating~~organizations that are experiencing or anticipating significant growth, are expected to ~~banking~~maintain capital ratios well in excess of the minimum levels.

InRegulatory ~~addition,~~authorities amay ~~financial~~increase ~~holding~~such ~~company~~minimum ~~may~~regulatory ~~not~~capital ~~acquire~~requirements afor ~~company~~all ~~that~~banks isand ~~engaged~~bank inholding ~~activities~~companies, ~~that~~as ~~are~~well ~~financial~~as inspecific ~~nature~~individual ~~unless~~banks ~~each~~or ofbank ~~the subsidiary~~holding ~~banks~~companies. Mandated ofincreases in the ~~financial~~minimum ~~holding~~required ~~company~~capital ~~has~~ratios acould ~~Community~~adversely ~~Reinvestment~~affect ~~Act~~the ~~rating~~Company ofand ~~satisfactory~~the orBank, ~~better.~~including their ability to pay dividends.

~~Affiliate~~At ~~Transactions~~December 31, 2011, the Company’s respective total and Tier 1 risk-based capital ratios and leverage ratios significantly exceeded the minimum regulatory requirements. See Notes to the Consolidated Financial Statements included in the Annual Report and incorporated herein by reference in the report as Exhibit 13.

~~Various~~In ~~governmental requirements~~addition, ~~including~~the ~~Sections 23A~~Federal ~~and~~Deposit ~~23B~~Insurance Company Improvement Act of 1991 ("FDICIA"), and the ~~Federal~~regulations ~~Reserve~~promulgated ~~Act~~under FDICIA, ~~limit~~among ~~borrowings~~other bythings, ~~holding~~established ~~companies~~five capital categories for insured depository institutions-well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and ~~non~~critically undercapitalized-and requires U.S. federal bank ~~subsidiaries~~ ~~from~~regulatory ~~affiliated~~agencies to implement systems for “prompt corrective action” for insured depository institutions, ~~and~~that ~~also~~do ~~limit~~no ~~various~~meet ~~other~~minimum ~~transactions~~capital ~~between~~requirements ~~holding~~based ~~companies~~on ~~and~~these ~~their~~categories. Unless ~~non-~~a bank ~~subsidiaries~~is well capitalized, onit ~~the~~is ~~one~~subject ~~hand,~~to ~~and~~restrictions ~~their~~on ~~affiliated~~its ~~insured~~ability ~~depository~~to ~~institutions~~offer brokered deposits and on ~~the~~certain other~~. Section 23A~~ aspects of ~~the~~its ~~Federal~~operations. An ~~Reserve~~undercapitalized ~~Act~~bank ~~also~~must ~~generally~~develop ~~requires~~a ~~that~~capital anrestoration ~~insured~~plan ~~depository~~and ~~institution~~its parent bank holding company must guarantee the bank’s ~~loan~~compliance towith ~~its~~the ~~non-bank~~plan ~~affiliates~~up beto ~~secured,~~the ~~and~~lesser ~~Section 23B~~of 5% of the ~~Federal~~banks ~~Reserve~~or ~~Act~~thrift’s ~~generally~~assets ~~requires~~at ~~that~~the antime ~~insured depository~~it ~~institution~~became undercapitalized and the amount needed to comply with the plan. As of December 31, 2011, the Company’s ~~transactions~~banking ~~with~~subsidiary ~~its~~was ~~non-bank~~well ~~affiliates~~capitalized bepursuant onto ~~arms-length~~these ~~terms.~~prompt corrective action guidelines.

~~Control~~Dividend ~~Acquisitions~~ Regulation

The ~~Change~~ability inof ~~Bank~~the ~~Control~~Company ~~Act~~to ~~prohibits~~obtain afunds ~~person~~for orthe ~~group~~payment of ~~persons~~dividends ~~from~~and ~~acquiring~~for ~~“control”~~other ofcash arequirements ~~bank~~is ~~holding~~largely ~~company,~~dependent ~~unless~~ on the ~~FRB~~amount ~~has~~of ~~been~~dividends ~~notified~~that ~~and~~may ~~has~~be ~~not~~declared ~~objected~~by to the ~~transaction~~Bank. Generally, ~~Under~~ the ~~rebuttable~~Bank ~~presumption~~may ~~established~~not bydeclare ~~the~~a ~~FRB~~dividend, ~~the~~without ~~acquisition~~ODFI ofapproval, ~~10%~~if orthe ~~more~~total of dividends declared in a ~~class~~calendar ofyear ~~voting~~exceeds ~~stock~~the total of aits ~~bank~~net ~~holding~~income ~~company~~for ~~with~~that ayear ~~class~~combined ofwith ~~securities~~its ~~registered under~~retained ~~Section 12~~earnings of the ~~Exchange~~preceding ~~Act,~~two ~~such~~years. At asDecember ~~the Company~~31, ~~would~~2011, ~~under~~ the ~~circumstances~~Bank ~~set~~had ~~forth in~~ the ~~presumption,~~ability ~~constitute~~to ~~acquisition~~pay dividends of ~~control~~approximately of$3.0 million to the ~~bank~~Company ~~holding~~without ~~company.~~prior regulatory approval.

InGovernment ~~addition,~~Policies ~~the~~and BHC Act requires every bank holding company to obtain the prior approval of the FRB before acquiring substantially all the assets of any bank or bank holding company or ownership or control of any voting shares of any bank or bank holding company, if, after such acquisition, it would own or control, directly or indirectly, more than five percent (5%) of the voting shares of such bank or bank holding company, or would otherwise be able to exercise a “controlling influence” over the other bank or holding company. In approving acquisitions by bank holding companies of companies engaged in banking-related activities, the FRB considers whether the performance of any such activity by a subsidiary of the holding company reasonably can be expected to produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency, which outweigh possible adverse effects, such as over concentration of resources, decrease of competition, conflicts of interest, or unsound banking practices. Legislation

~~Securities~~The ~~Laws~~earnings of the Company are dependent upon the earnings of its wholly-owned subsidiary bank. The earnings of the subsidiary bank are affected by the policies of regulatory authorities, including the Ohio Division of Financial Institutions, the Board of Governors of the FRB and ~~Compliance~~the FDIC. For example, an important function of the FRB is to regulate aggregate national credit and money supply through such means as open market dealings in securities, establishment of the discount rate on member bank borrowings, and changes in reserve requirements against member bank deposits. Policies of these agencies may be influenced by many factors, including inflation, unemployment, short-term and long-term changes in the international trade balance and fiscal policies of the United States government. The policies and regulations of the regulatory agencies have had and will continue to have a significant effect on deposits, loans and investment growth, as well as the rate of interest earned and paid, and therefore will affect the earnings of the subsidiary bank and the Company in the future, although the degree of such future impact cannot accurately be predicted.

InFDIC 1998, the Company’s common stock was registered under the Securities Exchange Act of 1934, as amended (“1934 Act”). This registration requires ongoing compliance with the 1934 Act and its periodic filing requirements, as well as a wide range of federal and state securities laws. These requirements include, but are not limited to, the filing of annual, quarterly and other reports with the SEC, certain requirements as to the solicitation of proxies from shareholders, as well as other proxy rules, and Insurance

5All of the Bank’s deposits are insured under the Federal Deposit Insurance Act by the FDIC to the fullest extent permitted by law. As an FDIC-insured institution, the Bank is required to pay deposit insurance premium assessments to the FDIC. The federal deposit insurance system was overhauled in 2006 as a result of the enactment of The Federal Deposit Insurance Reform Act of 2005 (the “Reform Act”), which was signed into law in February of 2006. Pursuant to the Reform Act, the FDIC has modified its risk-based assessment system for deposit insurance premiums. Under the new system, all insured depository institutions are placed into one of four categories and assessed insurance premiums based primarily on their level of capital and supervisory evaluations.

~~Table~~For the quarter beginning January 1, 2009, the FDIC raised the base annual assessment rate for institutions in Risk Category I to between 12 and 14 basis points while the base annual assessment rates for institutions in Risk Categories II, III and IV were increased to 17, 35, and 50 basis points, respectively. For the quarter beginning April 1, 2009 the FDIC set the base annual assessment rate for institutions in Risk Category I to between 12 and 16 basis points and the base annual assessment rates for institutions in Risk Categories II, III and IV at 22, 32, and 45 basis points, respectively. An institution’s assessment rate could be lowered by as much as five basis points based on the ratio of ~~Contents~~its long-term unsecured debt to deposits or, for smaller institutions, based on the ratio of certain amounts of Tier 1 capital to deposits. The assessment rate may be adjusted for Risk Category I institutions that have a high level of brokered deposits and have experienced higher levels of asset growth (other than through acquisitions) and could be increased by as much as ten basis points for institutions in Risk Categories II, III, and IV whose ratio of brokered deposits to deposits exceeds 10%. Reciprocal deposit arrangements like CDARS were treated as brokered deposits for Risk Category II, III, and IV institutions but not for institutions in Risk Category I. An institution’s base assessment rate would also be increased if an institution’s ratio of secured liabilities (including FHLB advances and repurchase agreements) to deposits exceeds 25%. The maximum adjustment for secured liabilities for institutions in Risk Categories I, II, III and IV would be 8, 11, 16, and 22.5 basis points, respectively, provided that the adjustment may not increase an institution’s base assessment rate by more than 50%.

~~compliance~~The ~~with~~FDIC ~~the~~imposed ~~reporting~~a ~~requirements~~special assessment equal to five basis points of assets less Tier 1 capital as of June 30, 2009 payable on September 30, 2009 and ~~“short~~reserved the right to impose additional special assessments. In lieu of further special assessments, on November 12, 2009 the FDIC approved a final rule to require all insured depository institutions to prepay their estimated risk-~~swing”~~based ~~profit~~assessments ~~rules~~for ~~imposed~~the byfourth ~~section~~quarter 16of 2009, and for all of 2010, 2011, and 2012 on December 30, 2009. For purposes of estimating future assessments, an institution would assume 5% annual growth in the ~~1934~~assessment ~~Act~~base and a three basis point increase in the current assessment rate for 2011 and 2012. The prepaid assessment would be applied against the actual assessment until exhausted. Any funds remaining after June 30, 2013 would be returned to the institution. If the prepayment would impair an institution’s liquidity or otherwise create significant hardship, it could apply for an exemption.

On February 7, 2011, the FDIC adopted a final rule on deposit insurance assessments, implementing a change in the deposit insurance assessment base, as required by the Dodd-Frank Act. The ~~Bank~~final rule also changed the assessment rates. Under the new rule, deposit insurance assessments are based on average total assets, less average tangible equity capital instead of average total deposits. Base assessment rates were reduced to between 5 and 9 basis points for institutions in Risk Category I, 14 basis points for institutions in Risk Category II, 23 basis points for institutions in Risk Category III, and 35 basis points for institutions in Risk Category IV. The changes to the assessment base and the base rates became effective April 1, 2011.

~~The~~In ~~Company~~addition, ~~operates~~all ~~the~~FDIC-insured ~~Bank~~institutions asare ~~its~~required ~~only~~to ~~subsidiary.~~pay Asassessments anto ~~Ohio~~the ~~state-chartered commercial~~FDIC ~~bank,~~to ~~the~~fund ~~Bank~~interest ispayments ~~supervised~~on ~~and~~bonds ~~regulated~~issued by the ~~ODFI~~Financing Corporation (“FICO”), ~~and~~an isagency ~~subject~~of the Federal government established to recapitalize the ~~laws~~Federal Savings and ~~regulations~~Loan ~~applicable~~Insurance toCorporation. ~~all~~The ~~Ohio~~FICO ~~commercial~~assessment ~~banks~~rates, which are determined quarterly, averaged .00835 % of insured deposits on an annualized basis in fiscal year 2011. These assessments will continue until the FICO bonds mature in 2017.

~~Capital~~Depositor ~~Requirements~~Preference Statute

~~The~~In ~~FRB,~~the ~~ODFI~~“liquidation or other resolution” of an institution by any receiver, U.S. federal legislation provides that deposits and ~~FDIC~~certain ~~require~~claims ~~banks~~for administrative expenses and ~~holding~~employee ~~companies~~compensation ~~to maintain~~against ~~minimum~~the ~~capital~~insured ~~ratios.~~depository institution would be afforded a priority over general unsecured claims against that institution, including federal funds and letters of credit.

~~The~~Recent FRB has promulgated “risk-adjusted” capital guidelines for bank holding companies. The ODFI and FDIC have adopted substantially similar risk-based capital guidelines with respect to the Bank. These ratios involve a mathematical process of assigning various risk weights to different classes of assets, then evaluating the sum of the risk-weighted balance sheet structure against the Company’s capital base. The rules set the minimum guidelines for the ratio of capital to risk-weighted assets (including certain off-balance sheet activities, such as standby letters of credit) at 8%. At least half of the total capital is to be composed of common equity, retained earnings, and a limited amount of perpetual preferred stock less certain goodwill items (“Tier 1 Capital”). The remainder may consist of a limited amount of subordinated debt, other preferred stock, or a limited amount of loan loss reserves. Legislation

InThe ~~addition~~Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) signed by the President on July 21, 2010 posed a significant impact on financial regulations. Certain provisions such as the ~~federal~~permanent ~~banking~~increase ~~regulatory agencies~~in ~~have~~deposit ~~adopted~~insurance ~~leverage~~coverage ~~capital~~had ~~guidelines~~an immediate effective date. Provisions regarding rules for interchanges fees on electronic debit transactions were effective July 21, 2011. Other provisions which, though intended to provide regulatory relief to community banks, may require time and ~~bank~~further ~~holding~~analysis ~~companies~~to evaluate the actual consequences. ~~Under~~Implementation ~~these~~of ~~guidelines~~the Dodd-Frank Act provisions, which are conservatively estimated at more than 5,000 pages of new or expanded regulations for banks, will result in new rulemaking by the federal regulatory agencies over the next several years. Fully implementing the new and ~~bank~~expanded ~~holding~~regulation ~~companies~~will ~~must~~involve ~~maintain~~ensuring acompliance ~~minimum~~with ~~ratio~~extensive new disclosure and reporting requirements. The Dodd-Frank Act created an independent regulatory body, the Bureau of ~~three~~Consumer ~~percent~~Financial Protection (3%“Bureau”) ~~Tier~~, 1with ~~Capital~~authority and responsibility to ~~total~~set ~~assets~~rules and regulations for most consumer protection laws applicable to all banks — large and small — adds another regulator to scrutinize and police financial activities. ~~The~~Transfer ~~Federal Reserve~~to ~~Board~~the Bureau of all consumer financial protection functions for designated laws by the other federal agencies was completed during 2011. The Bureau has ~~indicated,~~responsibility ~~however~~for mortgage reform and enforcement, ~~that~~as ~~banking~~well ~~organizations~~as ~~that~~broad new powers over consumer financial activities which could impact what consumer financial services would be available and how they are ~~experiencing~~provided. orThe ~~anticipating~~following ~~significant~~consumer ~~growth,~~protection laws are ~~expected~~the designated laws that will fall under the Bureau’s rulemaking authority: the Alternative Mortgage Transactions Parity Act of 1928, the Consumer Leasing Act of 1976, the Electronic Fund Transfer Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act subject to ~~maintain~~certain ~~capital~~exclusions, ~~ratios~~the ~~well~~Fair inDebt ~~excess~~Collection Practices Act, the Home Owners Protection Act, certain privacy provisions of the ~~minimum~~Gramm-Leach-Bliley ~~levels~~Act, the Home Mortgage Disclosure Act (HMDA), the Home Ownership and Equity Protection Act of 1994, the Real Estate Settlement Procedures Act (RESPA), the S.A.F.E. Mortgage Licensing Act of 2008 (SAFE Act), and the Truth in Lending Act. Review and revision of current financial regulations in conjunction with added new financial service regulations will heighten the regulatory compliance burden and increase litigation risk for the banking industry.

~~Regulatory~~Also, ~~authorities~~in ~~may~~response ~~increase~~to ~~such~~unprecedented ~~minimum~~financial ~~regulatory~~market ~~capital~~turmoil, ~~requirements~~the Emergency Economic Stabilization Act of 2008 ("EESA") was enacted in 2008. EESA authorized the U.S. Treasury Department to provide up to $700 billion in funding for ~~all~~the ~~banks~~financial ~~and~~services ~~bank~~industry. ~~holding~~Pursuant ~~companies~~to the EESA, asthe ~~well~~Treasury aswas ~~specific~~initially ~~individual banks~~authorized orto ~~bank~~use ~~holding~~$350 ~~companies~~billion for the Troubled Asset Relief Program (“TARP”). ~~Mandated~~Of ~~increases~~this inamount, Treasury allocated $250 billion to the ~~minimum~~TARP ~~required~~Capital ~~capital~~Purchase ~~ratios~~Program. ~~could~~On ~~adversely~~January ~~affect~~15, 2009, the ~~Company~~second ~~and~~$350 billion of TARP monies was released to the ~~Bank~~Treasury. The Secretary's authority under TARP expired on December 31, ~~including~~2009. ~~their~~The ~~ability~~Company previously determined to ~~pay~~not ~~dividends.~~participate in the TARP Capital Purchase Program.

AtIn ~~December 31,~~addition ~~2010,~~to the ~~Company’s~~Dodd-Frank ~~respective~~Act ~~total~~ and ~~Tier~~EESA, 1there ~~risk-based~~is ~~capital~~significant ~~ratios~~potential for new federal regulations relating to lending, funding practices, and ~~leverage~~liquidity ~~ratios~~and ~~significantly~~capital ~~exceeded~~standards, and the ~~minimum~~bank regulatory ~~requirements.~~agencies ~~See~~are ~~Notes~~expected to ~~the Consolidated~~be ~~Financial~~very ~~Statements~~aggressive ~~included~~ in ~~the~~responding ~~Annual~~to ~~Report~~concerns and ~~incorporated~~trends ~~herein~~identified byin ~~reference~~examinations. inThese ~~the~~increased ~~report~~governmental asactions ~~Exhibit~~may ~~13.~~increase our costs and limit our ability to pursue certain business opportunities.

~~In addition,~~Reports the Federal Deposit Insurance Company Improvement Act of 1991 (“FDICIA”), and the regulations promulgated under FDICIA, among other things, established five capital categories for insured depository institutions-well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized-and requires U.S. federal bank regulatory agencies to ~~implement~~Security systems for “prompt corrective action” for insured depository institutions that do no meet minimum capital requirements based on these categories. Unless a bank is well capitalized, it is subject to restrictions on its ability to offer brokered deposits and on certain other aspects of its operations. An undercapitalized bank must develop a capital restoration plan and its parent bank holding company must guarantee the bank’s compliance with the plan up to the lesser of 5% of the banks or thrift’s assets at the time it became undercapitalized and the amount needed to comply with the plan. As of December 31, 2010, the Company’s banking subsidiary was well capitalized pursuant to these prompt corrective action guidelines. Holders

6The Company files Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, current reports on Form 8-K and proxy solicitation materials, as applicable, under Commission Regulation 14A. The public may read and copy any materials the Company files with the Commission at the SEC’s Public Reference Room at 100 F. Street, NE, Washington, DC 20549, on official business days during the hours of 10:00 am to 3:00 pm. The public may obtain information on the operation of the Public Reference Room by calling the Commission at 1-800-SEC-0330. The Commission maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the Commission at http://www.sec.gov. The Company’s Internet website is http://www.killbuckbank.com. The proxy statement and annual report to security holders are available at http://materials.proxyvote.com/494113.

~~Table~~Item of1A Risk ~~Contents~~Factors

~~Dividend~~Not ~~Regulation~~applicable to Smaller Reporting Companies.

~~The~~Item ~~ability~~1B Unresolved ofStaff the Company to obtain funds for the payment of dividends and for other cash requirements is largely dependent on the amount of dividends that may be declared by the Bank. Generally, the Bank may not declare a dividend, without ODFI approval, if the total of dividends declared in a calendar year exceeds the total of its net income for that year combined with its retained earnings of the preceding two years. At December 31, 2010, the Bank had the ability to pay dividends of approximately $3.8 million to the Company without prior regulatory approval. Comments

~~Government Policies and Legislation~~ None

~~The~~Item ~~earnings~~2 ofDescription ~~the Company are dependent upon the earnings~~ of its wholly-owned subsidiary bank. The earnings of the subsidiary bank are affected by the policies of regulatory authorities, including the Ohio Division of Financial Institutions, the Board of Governors of the FRB and the FDIC. For example, an important function of the FRB is to regulate aggregate national credit and money supply through such means as open market dealings in securities, establishment of the discount rate on member bank borrowings, and changes in reserve requirements against member bank deposits. Policies of these agencies may be influenced by many factors, including inflation, unemployment, short-term and long-term changes in the international trade balance and fiscal policies of the United States government. The policies and regulations of the regulatory agencies have had and will continue to have a significant effect on deposits, loans and investment growth, as well as the rate of interest earned and paid, and therefore will affect the earnings of the subsidiary bank and the Company in the future, although the degree of such future impact cannot accurately be predicted. Property

~~Deposit Insurance Assessments~~ Properties

The ~~deposits~~Company ofand the ~~Company~~Bank’s ~~banking~~executive ~~subsidiary~~offices are ~~insured~~located upat to165 ~~regulatory~~North ~~limits~~Main Street, Killbuck, Ohio. The Company pays no rent or other form of consideration for the use of this facility. All office properties are owned by the ~~FDIC,~~Bank ~~and,~~except ~~accordingly~~the German Village Branch, ~~are~~which ~~subject~~is toleased. The ~~deposit~~Bank ~~insurance~~has ~~assessments~~seven ~~based~~offices onlocated ~~the~~in ~~Federal~~Holmes ~~Deposit~~County ~~Insurance Reform~~(1), ~~Act~~two ofin ~~2005~~Knox County (2), asand ~~adopted~~one in Tuscarawas County (3). The Bank’s total investment in office property and ~~took~~equipment ~~effect~~was on$11.1 ~~April 21~~million with a net book value $5.5 million at December 31, ~~2006~~2011. The offices are at the following locations.

Deposit Insurance

Main Office: (1)	Mt. Hope Branch (1)	Millersburg Loan Annex (1)
165 North Main Street	8115 State Rt. 241	164 N. Clay Street
Killbuck, Ohio 44637	Mt. Hope, Ohio 44660	Millersburg, Ohio 44654

Millersburg North Branch (1)	Millersburg South Branch (1)	Apple Valley Branch (2)
181 N. Washington Street	1642 S. Washington Street	21841 Plank Road
Millersburg, Ohio 44654	Millersburg, Ohio 44654	Howard, Ohio 43028

German Village Branch (1)	Sugarcreek Branch (3)
4900 Oak Street	1035 W. Main Street
Berlin, Ohio 44610	Sugarcreek, Ohio 44681

Danville Branch (2)	Berlin Branch (1) (4)
701 S. Market Street	4790 Township Road 366
Danville, Ohio 43014	Millersburg, Ohio 44654

As an FDIC-insured institution, the Bank is required to pay deposit insurance premium assessments to the FDIC. The amount each institution pays for FDIC deposit insurance coverage is determined in accordance with a risk-based assessment system under which all insured depository institutions are placed into one of nine categories and assessed insurance premiums based upon their level of capital and supervisory evaluation. Institutions classified as well capitalized (~~as defined by the FDIC~~4) ~~and~~Includes ~~considered~~ATM ~~healthy~~location ~~pay~~at ~~the~~4853 ~~lowest~~Main ~~premium~~Street, ~~while~~Berlin, ~~institutions~~Ohio ~~that are less than adequately capitalized (as defined by the FDIC) and considered substantial supervisory concerns pay the highest premium~~44610. ~~Because the Bank is presently “well capitalized” it pays the minimum deposit insurance premiums.~~

~~The~~Item Emergency Economic Stabilization Act of 2008 provided a temporary increase in deposit insurance coverage from $100,000 to $250,000 per depositor. This legislation was effective immediately upon the President’s signature on October 3, ~~2008.~~Legal ~~The basic deposit insurance limit was set to return to $100,000 on January 1, 2010, however, at this time, the date has been extended to December 31, 2013.~~ Proceedings

~~The~~Neither ~~FDIC~~the ~~may~~Bank ~~terminate~~nor the ~~deposit~~Company ~~insurance~~is ofinvolved in any ~~insured~~material ~~depository~~legal ~~institution~~proceedings. The ifBank, ~~the~~from ~~FDIC~~time ~~determines~~to time, ~~after~~is a ~~hearing,~~party ~~that~~to ~~the~~litigation, ~~institution~~which ~~has engaged~~arises ~~or is engaging~~ in ~~unsafe~~the orordinary ~~unsound~~course ~~practices~~of business, issuch inas anclaims ~~unsafe or unsound condition~~ to ~~continue~~enforce ~~operations~~liens, orclaims ~~has~~involving ~~violated~~the ~~any~~origination ~~applicable~~and ~~law,~~servicing ~~regulation,~~of ~~order~~loans, orand ~~any~~other ~~condition~~issues ~~imposed~~related into ~~writing~~the ~~by,~~business orof ~~written agreement with,~~ the ~~FDIC~~Bank. ~~The~~ In ~~FDIC~~the ~~may~~opinion ~~also~~of ~~suspend~~management, ~~deposit insurance temporarily during~~ the ~~hearing~~resolution ~~process~~of ~~for~~any asuch ~~permanent~~issues ~~termination~~will ofgenerally ~~insurance~~not ifhave ~~the~~a ~~institution~~material ~~has~~adverse noimpact ~~tangible~~on ~~capital. Management of~~ the ~~Company~~financial isposition, ~~not~~results ~~aware~~ of ~~any~~operation, ~~activity~~ or ~~condition~~liquidity ~~that could result in termination~~ of the ~~deposit~~Bank ~~insurance~~or of the ~~Bank~~Company.

7Item 4 Mine Safety Disclosures

~~Table of Contents~~None

~~Depositor~~PART ~~Preference Statute~~ II

InItem ~~the~~5 ~~“liquidation~~Market ~~or other resolution” of an institution by any receiver, U.S. federal legislation provides that deposits and certain claims~~ for ~~administrative~~Registrant’s ~~expenses~~Common ~~and employee compensation against the insured depository institution would be afforded a priority over general unsecured claims against that institution~~Stock, ~~including~~Related ~~federal~~Stockholder ~~funds~~Matters and ~~letters~~Issuer Purchase of ~~credit.~~Equity Securities

~~Recent~~At ~~Legislation~~December 31, 2011, there were 613,771 of the Company’s shares issued and outstanding, held by 988 shareholders of record and in street name. While there is no established public trading market for our common stock, our shares are currently quoted in the inter-dealer quotation, or “over-the-counter,” marketplace under the trading symbol “KILB.” Over-the-counter securities are generally considered to be any equity securities not otherwise listed on a national exchange, such as NASDAQ, NYSE or Amex. The principal over-the-counter market is operated by OTC Markets Group, Inc. (formerly Pink OTC Markets Inc.), which provides quotes for the Company on its middle tier, the OTCQB. All OTCQB companies are reporting with the SEC or a U.S. banking regulator, but there are no financial or qualitative standards to be in this tier. Community Banc Investments (“CBI”), a licensed intrastate securities dealer that specializes in marketing the stock of independent banks located in Ohio, also handles a limited amount of the Company’s stock transactions.

The ~~Dodd-Frank~~ ~~Wall~~common ~~Street~~stock ~~Reform and Consumer Protection Act~~ of ~~2010 (“Dodd-Frank Act”) signed by~~ the ~~President~~Company ontrades ~~July 21, 2010 posed a significant impact on financial regulations~~infrequently. Parties ~~Certain~~interested ~~provisions such as the permanent increase~~ in ~~deposit~~ ~~insurance~~buying ~~coverage~~or ~~had~~selling an immediate effective date. Provisions regarding rules for interchanges fees on electronic debit transactions must be effective by July 21, 2011. Other provisions which, though intended to provide regulatory relief to community banks, may require time and further analysis to evaluate the ~~actual~~Company’s ~~consequences.~~stock ~~Implementation of the Dodd-Frank Act provisions, which~~ are ~~conservatively~~generally ~~estimated~~referred at more than 5,000 pages of new or expanded regulations for banks, will result in new rulemaking by the federal regulatory agencies over the next several years. Fully implementing the new and expanded regulation will involve ensuring compliance with extensive new disclosure and reporting requirements. The Dodd-Frank Act created an independent regulatory body, the Bureau of Consumer Financial Protection (“Bureau”), with authority and responsibility to ~~set rules and regulations for most consumer protection laws applicable to all banks — large and small — adds another regulator to scrutinize and police financial activities~~CBI. ~~Transfer to the Bureau of all consumer financial protection functions for designated laws by the other federal agencies must be completed no later than July 21, 2011.~~ The ~~Bureau~~quarterly ~~has~~high ~~responsibility for mortgage reform~~ and ~~enforcement,~~low asprice ~~well~~information asin ~~broad new powers over consumer financial activities which could impact what consumer financial services would be available and how they are provided. The following consumer protection laws are~~ the ~~designated~~table ~~laws~~below ~~that~~was ~~will~~obtained ~~fall~~from ~~under~~CBI the Bureau’s rulemaking authority: the Alternative Mortgage Transactions Parity Act of 1928, the Consumer Leasing Act of 1976, the Electronic Fund Transfer Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act subject to certain exclusions, the Fair Debt Collection Practices Act, the Home Owners Protection Act, certain privacy provisions of the Gramm-Leach-Bliley Act, the Home Mortgage Disclosure Act (HMDA), the Home Ownership and ~~Equity Protection Act of 1994,~~ the ~~Real~~OTC ~~Estate~~Markets ~~Settlement Procedures Act (RESPA)~~Group, ~~the S~~Inc.A.F.E. Mortgage Licensing Act of 2008 (SAFE Act), and the Truth in Lending Act. Review and revision of current financial regulations in conjunction with added new financial service regulations will heighten the regulatory compliance burden and increase litigation risk for the banking industry.

Also, in response to recent unprecedented financial market turmoil, the Emergency Economic Stabilization Act of 2008 (“EESA”) was enacted in 2008. EESA authorized the U.S. Treasury Department to provide up to $700 billion in funding for the financial services industry. Pursuant to the EESA, the Treasury was initially authorized to use $350 billion for the Troubled Asset Relief Program (“TARP”). Of this amount, Treasury allocated $250 billion to the TARP Capital Purchase Program. On January 15, 2009, the second $350 billion of TARP monies was released to the Treasury. The Secretary’s authority under TARP expired on December 31, 2009. The Company previously determined to not participate in the TARP Capital Purchase Program.

Quarter Ended		High		Low		Cash Dividends Paid

2011	March 31	$	107.27	$	106.37		N/A
	June 30		109.04		108.01	$	1.50
	September 30		110.95		109.26		N/A
	December 31		111.64		110.29	$	1.55

2010	March 31	$	106.39	$	104.74		N/A
	June 30		107.59		106.72	$	1.50
	September 30		108.83		107.45		N/A
	December 31		109.52		107.71	$	1.55

InManagement ~~addition~~does ~~to the~~not ~~Dodd-Frank~~have ~~Act~~knowledge ~~and~~of ~~EESA,~~the ~~there~~prices ispaid ~~significant~~in ~~potential~~all ~~for~~transactions ~~new~~and ~~federal~~has ~~regulations~~not ~~relating~~verified tothe ~~lending,~~accuracy ~~funding~~of ~~practices,~~those ~~and~~prices ~~liquidity~~that ~~and~~have ~~capital~~been ~~standards,~~reported. Because ~~and~~of the ~~bank~~lack ~~regulatory~~of ~~agencies~~an ~~are~~established ~~expected~~market tofor bethe ~~very~~Company’s ~~aggressive~~stock, inthese ~~responding~~prices ~~to concerns~~may ~~and~~not ~~trends~~reflect ~~identified~~the inactual ~~examinations.~~prices ~~These~~at ~~increased~~which ~~governmental~~the ~~actions~~stock ~~may~~would ~~increase~~trade ~~our~~in ~~costs~~a ~~and~~more ~~limit~~active ~~our ability to pursue certain business opportunities~~market.

8Cash dividends are paid on a semi-annual basis. The Company has paid regular semi-annual cash dividends for the last twenty years, and assuming the ability to do so, it is management’s intent that the Company will continue to declare regular semi-annual cash dividends.

~~Table~~For information on dividends per share, earnings per share and ratio of ~~Contents~~dividends to earnings per share, see the Selected Financial Data of the 2011 Annual Report to Shareholders of Killbuck Bancshares, Inc, included in this Report as Exhibit 13 and incorporated herein by reference.

~~Reports~~The ability of the Company to ~~Security~~pay ~~Holders~~dividends will depend on the earnings of the Bank and its financial condition, as well as other factors such as market conditions, interest rates and regulatory requirements. Therefore, no assurances may be given as to the continuation of the Company's ability to pay dividends or maintain its present level of earnings. For a discussion on Bank dividends see the Notes to the Consolidated Financial Statements of the 2011 Annual Report to Shareholders of Killbuck Bancshares, Inc. included in this Report as Exhibit 13 and incorporated herein by reference.

The ~~Company~~common ~~files~~stock ~~Annual~~of ~~Reports~~the onCompany ~~Form~~is ~~10-K,~~not ~~Quarterly~~subject ~~Reports~~to onany ~~Form~~redemption ~~10-Q,~~provisions ~~current~~or ~~reports~~restrictions on ~~Form 8-K and proxy solicitation materials, as applicable, under Commission Regulation 14A~~alienability. The ~~public~~common ~~may read~~stock ~~and~~is ~~copy~~entitled ~~any~~to ~~materials~~share ~~the~~pro ~~Company~~rata ~~files~~in ~~with~~dividends ~~the~~and ~~Commission~~in atdistributions ~~the~~in ~~SEC’s Public Reference Room at 100 F. Street, NE, Washington, DC 20549, on official business days during~~ the ~~hours~~event of ~~10:00~~dissolution amor ~~to 3:00 pm~~liquidation. There ~~The~~are ~~public~~not ~~may~~any ~~obtain information on the operation of the Public Reference Room by calling the Commission at 1-800-SEC-0330. The Commission maintains an Internet site that contains reports~~options, ~~proxy and information statements~~warrants, ~~and~~privileges nor other ~~information~~rights ~~regarding~~with ~~issuers~~respect ~~that file~~to ~~electronically with~~ the ~~Commission at http://www.sec.gov. The~~ Company’s ~~Internet~~shares ~~website~~at isthe ~~http://www.killbuckbank.com.~~present ~~The~~time, ~~proxy~~nor ~~statement~~are ~~and~~any ~~annual~~such ~~report~~rights proposed to ~~security~~be ~~holders are available at http://materials~~issued.~~proxyvote.com/494113.~~

~~Item 1A~~Unregistered ~~Risk~~Sales ~~Factors~~of Equity Securities and Use of Proceeds

~~Not applicable to Smaller Reporting Companies.~~ None

~~Item 1B~~Issuer ~~Unresolved~~Purchases ~~Staff~~of ~~Comments~~Equity Securities

None

Period	(a) Total Number of Shares (or Units) Purchased	(b) Average Price Paid per Share (or Unit)	(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (1)	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
October 1 – 31, 2011	100	$111.35	N/A	N/A
November 1 – 30, 2011	--	--	N/A	N/A
December 1 – 31, 2011	--	--	N/A	N/A
Total (2)	100	$111.35	N/A	N/A

~~Item 2~~(1) ~~Description~~The Company does not have any publicly announced share repurchase plans as of ~~Property~~December 31, 2011.

~~Properties~~(2) 100 shares of common stock were purchased by Killbuck Bancshares in open-market transactions.

~~The~~Item ~~Company~~6 ~~and~~Selected ~~the Bank’s~~Consolidated ~~executive~~Financial offices are located at 165 North Main Street, Killbuck, Ohio. The Company pays no rent or other form of consideration for the use of this facility. All office properties are owned by the Bank except the German Village Branch, which is leased. The Bank has seven offices located in Holmes County (1), two in Knox County (2), and one in Tuscarawas County (3). The Bank’s total investment in office property and equipment was $11.3 million with a net book value $5.8 million at December 31, 2010. The offices are at the following locations. Data

Main Office: (1)	Mt. Hope Branch (1)	Millersburg Loan Annex (1)
165 North Main Street	8115 State Rt. 241	164 N. Clay Street
Killbuck, Ohio 44637	Mt. Hope, Ohio 44660	Millersburg, Ohio 44654
Millersburg North Branch (1)	Millersburg South Branch (1)	Apple Valley Branch (2)
181 N. Washington Street	1642 S. Washington Street	21841 Plank Road
Millersburg, Ohio 44654	Millersburg, Ohio 44654	Howard, Ohio 43028
German Village Branch (1)	Sugarcreek Branch (3)
4900 Oak Street	1035 W. Main Street
Berlin, Ohio 44610	Sugarcreek, Ohio 44681
Danville Branch (2)	Berlin Branch (1) (4)
701 S. Market Street	4790 Township Road 366
Danville, Ohio 43014	Millersburg, Ohio 44654

Selected Consolidated Financial Data of the 2011 Annual Report to Shareholders of Killbuck Bancshares, Inc. is included in this Report as part of Exhibit 13, and is incorporated herein by reference.

~~(4)~~Item ~~Includes~~7 ~~ATM~~Management’s ~~location~~Discussion atand ~~4853~~Analysis ~~Main~~of ~~Street,~~Financial ~~Berlin,~~Condition ~~Ohio~~and ~~44610.~~Results of Operations

9Management's Discussion and Analysis of Financial Condition and Results of Operations included in the 2011 Annual Report to Shareholders of Killbuck Bancshares, Inc. and filed with this Report as Exhibit 13, and incorporated herein by reference.

~~Table~~Investment ~~of Contents~~Portfolio

~~Item 3~~Book ~~Legal~~Value ~~Proceedings~~of Investments

~~Neither~~Carrying ~~the~~values ~~Bank~~of ~~nor~~investment ~~the~~securities ~~Company~~at isDecember ~~involved~~31 inare ~~any~~as ~~material~~follows ~~legal proceedings. The Bank, from time to time, is a party to litigation, which arises~~ (in the ordinary course of business, such as claims to enforce liens, claims involving the origination and servicing of loans, and other issues related to the business of the Bank. In the opinion of management, the resolution of any such issues will generally not have a material adverse impact on the financial position, results of operation, or liquidity of the Bank or the Company. thousands):

Item 4 Removed and Reserved

Securities available for sale:	2011		2010		2009		2008		2007
Obligations of U.S. Government
Agencies and Corporations	$	97,599	$	75,486	$	64,841	$	50,939	$	53,116
Mutual funds		503		559		494		611		1,000
Total securities available for sale		98,102		76,045		65,335		51,550		54,116
Securities held to maturity:
Obligations of state and political subdivisions		41,040		39,332		35,087		32,168		29,552
Total securities held to maturity		41,040		39,332		35,087		32,168		29,552
Total	$	139,142	$	115,377	$	100,422	$	83,718	$	83,668

~~PART~~MATURITY IISCHEDULE OF INVESTMENTS

~~Item 5~~The ~~Market~~following ~~for~~table ~~Registrant’s~~presents ~~Common~~the ~~Stock~~investment portfolio, ~~Related~~the ~~Stockholder~~weighted ~~Matters~~average yield and ~~Issuer~~maturities ~~Purchase~~at ofDecember ~~Equity~~31, ~~Securities~~2011 (dollars in thousands):

The Company’s common shares are currently quoted by a number of quotation services, including the Over the Counter Bulletin Board (the “OTCBB”) and the Pink Sheets Electronic Quotation Service (the “Pink Sheets”), as well as by Community Banc Investments (“CBI”), each of which handles a limited amount of the Corporation’s stock transactions. The OTCBB and the Pink Sheets are both quotation services for “over-the-counter securities,” which are generally considered to be any equity securities not otherwise listed on a national exchange, such as NASDAQ, NYSE or Amex. CBI is a licensed intrastate securities dealer that specializes in marketing the stock of independent banks in Ohio. The Company’s common shares are quoted on the OTCBB and the Pink Sheets under the trading symbol “KLIB.” At December 31, 2010, there were 615,945 of the Company’s shares issued and outstanding, held by 1,001 shareholders of record and in street name.

	Within three months					After three months but Within one year					After one year but Within five years					After five but Within ten years					After 10 years
	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Total
Available for Sale (1)
Mortgage backed securities	$	--		0.00	%	$	895		1.87	%	$	393		5.45	%	$	--		0.00	%	$	3,434		0.86	%	$	4,722
Obligations of U.S.
Government sponsored enterprises	$	--		0.00	%	$	--		0.00	%	$	49,861		1.84	%	$	43,016		2.10	%	$	--		0.00	%	$	92,877
Mutual funds	$	--		0.00	%	$	503		0.00	%	$	--		0.00	%	$	--		0.00	%	$	--		0.00	%	$	503
Total	$	--		0.00	%	$	1,398		1.20	%	$	50,254		1.87	%	$	43,016		2.10	%	$	3,434		0.86	%	$	98,102
Held to Maturity
Obligations of state and political subdivisions (2)	$	--		0.00	%	$	2,538		3.85	%	$	14,598		3.59	%	$	23,048		3.41	%	$	856		3.12	%	$	41,040
Total	$	--		0.00	%	$	2,538		3.85	%	$	14,598		3.59	%	$	23,048		3.41	%	$	856		3.12	%	$	41,040

~~The common stock of the Company trades infrequently. Parties interested in buying or selling the Company’s stock are generally referred to Community Banc Investments~~ (~~“CBI”~~1). The ~~quarterly~~weighted ~~high~~average ~~and~~yield ~~low~~has ~~price~~been ~~information~~computed inusing the ~~table~~historical ~~below was~~amortized ~~obtained~~cost ~~from~~for ~~CBI~~available ~~and~~for ~~the~~sale ~~OTCBB~~securities.

Quarter Ended		High		Low		CashDividendsPaid
2010	March 31	$	106.39	$	104.74		N/A
	June 30		107.59		106.72	$	1.50
	September 30		108.83		107.45		N/A
	December 31		109.52		107.71	$	1.55
2009	March 31	$	116.36	$	104.35		N/A
	June 30		105.12		103.90	$	1.45
	September 30		105.92		104.18		N/A
	December 31		106.40		104.67	$	1.55

(2)	Weighted average yields on nontaxable obligations have been computed based on actual yield stated on the security.

Excluding holdings of U.S. Treasuries and Government sponsored enterprises; there were no investments in securities of any one issuer that exceeded 10% of the Company’s shareholders equity at December 31, 2011.

~~Table~~TYPES ofOF ~~Contents~~LOANS

~~Management~~The ~~does~~following ~~not~~table ~~have~~presents ~~knowledge~~the composition of the ~~prices~~loan ~~paid~~portfolio in(before ~~all~~consideration ~~transactions and has not verified the accuracy~~ of ~~those~~loan ~~prices~~origination ~~that~~fees ~~have~~and ~~been reported. Because of~~ the ~~lack~~allowance ~~of an established market~~ for ~~the~~loan ~~Company’s stock~~losses), ~~these~~as ~~prices~~well ~~may~~as ~~not reflect~~ the ~~actual~~percentage ~~prices~~of atloans ~~which~~by ~~the~~type ~~stock~~(dollars ~~would trade~~ in ~~a more active market.~~ thousands):

Cash dividends are paid on a semi-annual basis. The Company has paid regular semi-annual cash dividends for the last nineteen years, and assuming the ability to do so, it is management’s intent that the Company will continue to declare regular semi-annual cash dividends.

	2011					2010					December 31, 2009					2008					2007
	Amount		% of Total Loans			Amount		% of Total Loans			Amount		% of Total Loans			Amount		% of Total Loans			Amount		% of Total Loans
Real estate-residential	$	97,583		43.0	%	$	87,506		42.1	%	$	81,505		38.8	%	$	72,663		35.8	%	$	72,858		36.6	%
Real estate-farm		11,028		4.8			9,925		4.8			9,729		4.6			8,843		4.4			9,967		5.0
Real estate-commercial		58,214		25.7			51,311		24.7			57,924		27.6			59,505		29.3			59,817		30.0
Real estate-construction		12,468		5.5			10,406		5.0			11,873		5.6			12,077		5.9			7,778		3.9
Commercial and other		41,667		18.4			41,931		20.2			43,068		20.5			43,239		21.3			41,678		20.9
Consumer and credit card		5,865		2.6			6,866		3.2			6,140		2.9			6,901		3.3			7,201		3.6
	$	226,825		100.0	%	$	207,945		100.0	%	$	210,239		100.0	%	$	203,228		100.0	%	$	199,299		100.0	%

~~For information~~The largest category of loans comprising the Bank’s loan portfolio is residential real estate loans. These loans are primarily single-family residential real estate loans secured by a first mortgage on ~~dividends~~the ~~per~~dwelling. The ~~share~~risks associated with these loans are primarily the risk of default in repayment and inadequate collateral. Real estate commercial loans represent the second largest category and include development loans as well as investment commercial real estate loans. These loans have risks, ~~earnings~~which ~~per~~include ~~share~~the risk of default in the repayment of principal and ~~ratio~~inadequate collateral as well as the risk of ~~dividends~~cash toflow ~~earnings~~interruption ~~per~~due ~~share~~to, ~~see~~in the ~~Selected~~case ~~Financial~~of ~~Data~~rental real estate, the inability to obtain or collect adequate rental rates. The next largest loan segment of the ~~2010~~Bank’s ~~Annual~~loan ~~Report~~portfolio is the commercial and other category. The loans comprising this category represent loans to ~~Shareholders~~business interests located primarily within the Bank’s defined market areas. The Bank has no significant industry loan concentration. Commercial loans include both secured and unsecured loans. The risks associated with these loans are principally the risk in default of ~~Killbuck~~the ~~Bancshares,~~repayment ~~Inc~~of principal resulting from economic problems of the commercial customer, ~~included~~an ineconomic ~~this~~downturn ~~Report~~affecting asthe ~~Exhibit~~market 13in general and ~~incorporated~~, ~~herein~~in bythe ~~reference.~~case of secured loans, inadequate collateral.

~~The~~MATURITIES ~~ability~~AND ofSENSITIVITY ~~the~~TO ~~Company~~CHANGES toIN ~~pay~~INTEREST dividends will depend on the earnings of the Bank and its financial condition, as well as other factors such as market conditions, interest rates and regulatory requirements. Therefore, no assurances may be given as to the continuation of the Company’s ability to pay dividends or maintain its present level of earnings. For a discussion on Bank dividends see the Notes to the Consolidated Financial Statements of the 2010 Annual Report to Shareholders of Killbuck Bancshares, Inc. included in this Report as Exhibit 13 and incorporated herein by reference. RATE

The ~~common~~following ~~stock~~table ofpresents ~~the~~maturity ~~Company~~distribution ~~is not subject to any redemption provisions or restrictions on alienability. The common stock is entitled to share pro rata in dividends~~ and ininterest ~~distributions~~rate insensitivity ~~the event~~ of ~~dissolution~~real orestate ~~liquidation.~~– ~~There~~commercial, ~~are~~real ~~not~~estate ~~any~~- ~~options,~~construction ~~warrants,~~and ~~privileges~~commercial ~~nor~~and other ~~rights~~loans ~~with respect to the Company shares~~ at ~~the~~December ~~present time~~31, ~~nor~~2011 ~~are~~(dollars ~~any~~in ~~such rights proposed to be issued.~~ thousands):

	Within 1 Year		After 1 Year Within 5 Years		After 5 Years		Total
Real estate – commercial	$	41,485	$	14,172	$	2,557	$	58,214
Real estate – construction		9,069		3,092		307		12,468
Commercial and other		32,688		8,886		93		41,667
	$	83,242	$	26,150	$	2,957	$	112,349
Fixed interest rates	$	3,419	$	11,947	$	1,421	$	16,787
Variable interest rates		79,823		14,203		1,536		95,562
	$	83,242	$	26,150	$	2,957	$	112,349

~~Table~~RISK ~~of Contents~~ELEMENTS

~~Unregistered~~Loans ~~Sales~~are subject to ongoing periodic monitoring by management and the Board of ~~Equity~~Directors. The ~~Securities~~Company ceases accruing interest on residential mortgages secured by real estate and ~~Use~~consumer loans when principal or interest payments are delinquent 90 days or more. Commercial loans that are 90 days or more past due are reviewed by the Executive Vice President and the loan officer to determine whether they will be classified as nonperforming. These officers review various factors which include, but are not limited to, the timing of ~~Proceeds~~the maturity of the loan in relation to the ability to collect, whether the loan is deemed to be well secured, whether the loan is in the process of collection, and the favorable results of the analysis of customer financial data. A nonperforming loan will only be reclassified as a performing loan when stringent criteria have been met. At the time the accrual of interest is discontinued, future income is recognized only when cash is received or the loan has been returned to performing loan status. Renegotiated loans are those loans which terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the deterioration of the borrower. At December 31, 2011, the Company had nonperforming loans of $597,000. The following table presents information concerning nonperforming assets including nonaccrual loans, loans 90 days or more past due, renegotiated loans, other real estate and repossessed assets at December 31, (dollars in thousands).

None

	At December 31,
	2011			2010			2009			2008			2007
Loans on nonaccrual basis	$	596		$	107		$	-		$	73		$	839
Loans past due 90 days or more		1			2			-			-			-
Renegotiated loans (1)		-			-			-			-			-
Total nonperforming loans		597			109			-			73			839
Other real estate		-			-			23			-			-
Repossessed assets		-			-			-			-			-
Total nonperforming assets	$	597		$	109		$	23		$	73		$	839
Nonperforming loans as a percent of total loans		.26	%		.05	%		.00	%		.04	%		.42	%
Nonperforming loans as a percent of total assets		.14	%		.03	%		.00	%		.02	%		.25	%
Nonperforming assets as a percent of total assets		.14	%		.03	%		.01	%		.02	%		.25	%

~~Issuer~~(1) Excludes ~~Purchases~~renegotiated ~~of Equity~~loans ~~Securities~~that are performing or reported as nonaccrual.

Period

(a) TotalNumber ofShares (orUnits)Purchased

(b)Average PricePaid per Share(or Unit)

(d) Maximum Number(or Approximate DollarValue) of Shares (orUnits) that May Yet BePurchased Under thePlans or Programs

October 1 – 31, 2010

N/A

November 1 – 30, 2010

N/A

December 1 – 31, 2010

761

107.71

N/A

Total (2)

761

107.71

N/A

The amount of interest income that would have been recognized had the loans performed in accordance with their original terms was approximately $54,000 for the year ended December 31, 2011.

~~(1)~~There ~~The~~are ~~Company~~not ~~does~~any ~~not~~loans as of December 31, 2011, other than those discussed above, where known information about the borrower caused management to have ~~any~~serious ~~publicly~~doubts ~~announced~~about ~~share~~the ~~repurchase~~borrower’s ~~plans~~ability asto comply with their contractual repayment obligations. There are no concentrations of ~~December~~loans 31to borrowers engaged in similar activities which exceed 10% of total loans of which management is aware. Based upon the ongoing quarterly review and assessment of credit quality, ~~2010~~management is not aware of any trends or uncertainties related to any accounts which might have a material adverse effect on future earnings, liquidity or capital resources.

~~(2)~~There ~~761~~are ~~shares~~no ofother ~~common~~interest-bearing ~~stock~~assets ~~were~~that ~~purchased~~would bybe ~~Killbuck~~subject ~~Bancshares~~to disclosure as either nonperforming or impaired other than those disclosed in ~~open-market~~the ~~transactions~~Notes to the Consolidated Financial Statements for December 31, 2011, attached hereto as Exhibit 13 to this Annual Report on Form 10K.

~~Item 6~~LOAN ~~Selected~~LOSS ~~Consolidated Financial Data~~ EXPERIENCE

~~Selected Consolidated~~Management ~~Financial~~makes ~~Data~~periodic ofprovisions to the ~~2010~~allowance ~~Annual~~for ~~Report~~loan losses to ~~Shareholders~~maintain ofthe ~~Killbuck~~allowance ~~Bancshares,~~at ~~Inc~~an acceptable level commensurate with the credit risks inherent in the loan portfolio. There iscan ~~included~~be no assurances, however, that additional provisions will not be required in ~~this~~future ~~Report~~periods. The asfollowing ~~part~~table presents a summary of ~~Exhibit~~loan ~~13,~~losses by loan type and ischanges ~~incorporated~~in ~~herein~~the byallowance ~~reference.~~for loan losses for the years ended December 31, (dollars in thousands):

	Year Ended December 31,
	2011			2010			2009			2008			2007
Allowance for loan losses at beginning of year	$	2,666		$	2,441		$	2,525		$	2,510		$	2,394
Provision charged to expense		-			215			2			61			127
Charge-offs:
Real estate-residential		19			50			21			19			6
Real estate-farm		-			-			-			-			-
Real estate-commercial		393			-			37			33			71
Real estate-construction		-			-			-			-			-
Commercial and other		-			-			59			37			16
Consumer and credit card		5			10			16			24			39
Total charge-offs		417			60			133			113			132
Recoveries:
Real estate-residential		-			1			-			-			57
Real estate-farm		-			-			-			-			-
Real estate-commercial		4			44			12			42			27
Real estate-construction		-			-			-			-			-
Commercial and other		20			19			19			14			16
Consumer and credit card		2			6			16			11			21
Total recoveries		26			70			47			67			121
Net charge-offs		391			(10	)		86			46			11
Allowance for loan losses at end of period	$	2,275		$	2,666		$	2,441		$	2,525		$	2,510
Total loans outstanding	$	226,825		$	207,945		$	210,239		$	203,228		$	199,299
Average loans outstanding	$	217,016		$	210,091		$	207,846		$	201,179		$	202,692
Allowance for loan losses as a percent of total loans		1.00	%		1.28	%		1.16	%		1.24	%		1.26	%
Net charge-offs as a percent of average loans		.18	%		.00	%		.04	%		.02	%		.01	%

~~Table~~The Bank reviews the adequacy of ~~Contents~~its allowance for loan losses on a quarterly basis. In determining the adequacy of its allowance account the Bank makes allocations based upon loan categories, nonaccrual, past due and classified loans. The Bank has determined that the allowance is adequate as of December 31, 2011, based upon its analysis and experience. However, there can be no assurance that the current allowance for loan losses will be adequate to absorb all future loan losses.

~~Item 7~~The ~~Management~~following table presents management’s ~~Discussion~~estimate ~~and~~of ~~Analysis~~the allocation of ~~Financial~~the ~~Condition and~~allowance ~~Results~~for loan losses among the loan categories, although the entire allowance balance is available to absorb any actual charge-offs that may occur, along with the percentage of ~~Operations~~loans in each category to total loans for the years ended December 31 (dollars in thousands):

Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2010 Annual Report to Shareholders of Killbuck Bancshares, Inc. and filed with this Report as Exhibit 13, and incorporated herein by reference.

	2011					2010					2009					2008					2007
	Allowance		% of Loans to Total Loans			Allowance		% of Loans to Total Loans			Allowance		% of Loans to Total Loans			Allowance		% of Loans to Total Loans			Allowance		% of Loans to Total Loans
Real estate – residential	$	604		43.0	%	$	603		42.1	%	$	850		38.8	%	$	524		35.8	%	$	621		36.6	%
Real estate – farm		70		4.8			69		4.8			55		4.6			212		4.4			21		5.0
Real estate – commercial		519		25.7			887		24.7			580		27.6			990		29.3			566		30.0
Real estate – construction		98		5.5			98		5.0			67		5.6			-		5.9			-		3.9
Commercial and other loans		933		18.4			955		20.2			793		20.5			544		21.3			1,191		20.9
Consumer and credit loans		51		2.6			54		3.2			96		2.9			255		3.3			111		3.6
	$	2,275		100.0	%	$	2,666		100.0	%	$	2,441		100.0	%	$	2,525		100.0	%	$	2,510		100.0	%

~~Investment~~CONTRACTUAL ~~Portfolio~~ OBLIGATIONS

~~Book Value~~The following table presents, as of ~~Investments~~December 31, 2011, significant fixed and determinable contractual obligations to third parties by payment date. Further discussion of the nature of each obligation is included in the referenced Note to the Consolidated Financial Statements for December 31, 2011, attached hereto as Exhibit 13 to this Annual Report on Form 10K.

Carrying values of investment securities at December 31 are as follows (in thousands):

(In thousands)	Note Reference		One Year or Less		One to Three Years		Three to Five Years		Over Five Years		Total
Borrowed funds		8,9	$	1,134	$	151	$	75	$	1	$	1,361
Certificates of deposit		7		86,616		49,972		35,214		4		171,806
Operating leases		12		20		28		-		-		48
Deposits without a stated maturity		N/A		217,257		-		-		-		217,257
Total			$	305,027	$	50,151	$	35,289	$	5	$	390,472

	2010		2009		2008		2007		2006
Securities available for sale:
Obligations of U.S. Government Agencies and Corporations	$	75,486	$	64,841	$	50,939	$	53,116	$	34,753
Mutual funds		559		494		611		1,000		—
Total securities available for sale		76,045		65,335		51,550		54,116		34,753
Securities held to maturity:
Obligations of state and political subdivisions		39,332		35,087		32,168		29,552		29,993
Total securities held to maturity		39,332		35,087		32,168		29,552		29,993
Total	$	115,377	$	100,422	$	83,718	$	83,668	$	64,746

COMMITMENTS

The following table details the amounts and expected maturities of significant commitments as of December 31, 2011. Further discussion of these commitments is included in Notes to the Consolidated Financial Statements, attached hereto as Exhibit 13 to this Annual Report on Form 10K.

(In thousands)	One Year or Less		One to Three Years		Three to Five Years		Over Five Years		Total

Commitments to extend credit
Commercial	$	24,280	$	152	$	9	$	-	$	24,441
Residential real estate		6,750		305		-		-		7,055
Revolving home equity		-		-		-		15,631		15,631
Credit card lines		4,131		-		-		-		4,131
Standby letters of credit		834		-		-		-		834

~~MATURITY~~Item ~~SCHEDULE~~7A OFQuantitative ~~INVESTMENTS~~and Qualitative Disclosures About Market Risk

~~The~~See ~~following~~the ~~table~~section ~~presents~~Quantitative ~~the~~and ~~investment~~Qualitative ~~portfolio,~~Disclosures About Market Risk contained in the ~~weighted~~Company’s ~~average~~Management ~~yield~~Discussion and ~~maturities~~Analysis atattached ~~December 31,~~hereto ~~2010~~as ~~(dollars~~Exhibit in13 ~~thousands):~~and incorporated herein by reference.

	Within three months					After three months butWithin one year					After one year butWithin five years					After five butWithin ten years					After 10 years					Total
	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
Available for Sale (1)
Mortgage backed securities	$	2		4.17	%	$	21		4.47	%	$	1,574		3.26	%	$	210		4.03	%	$	3,983		0.65	%	$	5,790
Obligations of U.S. Government sponsored enterprises	$	1,920		2.51	%	$	—		0.00	%	$	36,670		2.33	%	$	31,106		2.31	%	$	—		0.00	%	$	69,696
Mutual funds	$	—		0.00	%	$	559		0.00	%	$	—		0.00	%	$	—		0.00	%	$	—		0.00	%	$	559
Total	$	1,922		2.51	%	$	580		0.16	%	$	38,244		2.37	%	$	31,316		2.32	%	$	3,983		0.65	%	$	76,045
Held to Maturity
Obligations of state and political subdivisions (2)	$	122		4.95	%	$	3,603		3.90	%	$	14,013		3.84	%	$	20,551		3.56	%	$	1,043		3.71	%	$	39,332
Total	$	122		4.95	%	$	3,603		3.90	%	$	14,013		3.84	%	$	20,551		3.56	%	$	1,043		3.71	%	$	39,332

Item 8 Financial Statements and Supplementary Data

~~(1)~~ The ~~weighted~~report ~~average~~of ~~yield~~the ~~has~~Independent ~~been~~Registered ~~computed~~Public ~~using~~Accountants and the ~~historical~~Consolidated ~~amortized~~Financial ~~cost~~Statements ~~for~~included ~~available~~in ~~for~~the ~~sale~~2011 ~~securities~~Annual Report to Shareholders of Killbuck Bancshares, Inc. and filed with this Report as Exhibit 13 are incorporated herein by reference.

~~(2)~~Item ~~Weighted~~9 ~~average~~Changes ~~yields~~in onand ~~nontaxable~~Disagreements ~~obligations~~with ~~have~~Accountants ~~been computed based~~ on ~~actual~~Accounting ~~yield~~and ~~stated~~Financial ~~on the security.~~Disclosure

Excluding holdings of U.S. Treasuries and Government sponsored enterprises, there were no investments in securities of any one issuer that exceeded 10% of the Company’s shareholders equity at December 31, 2010. None

14Item 9A. Controls and Procedures

~~Table~~The Company has carried out an evaluation, under the supervision and with the participation of ~~Contents~~the Company’s management, including the Company’s President and Chief Executive Officer and Vice President and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15. Based upon that evaluation, the President and Chief Executive Officer and Vice President and Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective, as of the end of the period covered by this report, in timely alerting them to material information relating to the Company (including its consolidated subsidiaries) required to be included in the Company’s periodic SEC filings.

~~TYPES~~There OFwas ~~LOANS~~no change in the Company’s internal control over financial reporting that occurred during the Company’s calendar quarter ended December 31, 2011, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

~~The~~Management’s ~~following~~Report ~~table~~on ~~presents~~Internal ~~the~~Control ~~composition~~Over ofFinancial ~~the loan portfolio (before consideration of loan origination fees and the allowance for loan losses), as well as the percentage of loans by type (dollars in thousands):~~ Reporting

	December 31,
	2010					2009					2008					2007					2006
	Amount		% ofTotal Loans			Amount		% ofTotal Loans			Amount		% ofTotal Loans			Amount		% ofTotal Loans			Amount		% ofTotal Loans
Real estate-residential	$	87,506		42.1	%	$	81,505		38.8	%	$	72,663		35.8	%	$	72,858		36.6	%	$	77,025		39.6	%
Real estate-farm		9,925		4.8			9,729		4.6			8,843		4.4			9,967		5.0			13,368		6.9
Real estate-commercial		51,311		24.7			57,924		27.6			59,505		29.3			59,817		30.0			50,147		25.8
Real estate-construction		10,406		5.0			11,873		5.6			12,077		5.9			7,778		3.9			10,917		5.6
Commercial and other		41,931		20.2			43,068		20.5			43,239		21.3			41,678		20.9			36,225		18.6
Consumer and credit card		6,866		3.2			6,140		2.9			6,901		3.3			7,201		3.6			6,941		3.5
	$	207,945		100.0	%	$	210,239		100.0	%	$	203,228		100.0	%	$	199,299		100.0	%	$	194,623		100.0	%

Management is responsible for the preparation and fair presentation of the financial statements included in this Annual Report. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and reflect management’s judgments and estimates concerning effects of events and transactions that are accounted for or disclosed.

15Management is also responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control over financial reporting includes those policies and procedures that pertain to the Company’s ability to record, process, summarize and report reliable financial data. Management recognizes that there are inherent limitations in the effectiveness of any internal control over financial reporting, including the possibility of human error and the circumvention or overriding of internal control. Accordingly, even effective internal control over financial reporting can provide only reasonable assurance with respect to financial statement preparation. Further, because of changes in conditions, the effectiveness of internal control over financial reporting may vary over time.

~~Table~~In order to ensure that the Company’s internal control over financial reporting is effective, management is required to evaluate, with the participation of ~~Contents~~the Company’s principal executive and principal financial officers, the effectiveness of the Company’s internal control over financial reporting as of the end of each year and did so most recently for its financial reporting as of December 31, 2011. Management’s assessment of the effectiveness of the Company’s internal control over financial reporting was based on criteria for effective internal control over financial reporting described in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission. Based on this assessment, management has concluded that the internal control over financial reporting was effective as of December 31, 2011. This Annual Report does not include an attestation report of the Company’s registered independent public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered independent public accounting firm pursuant to rules of the Securities and Exchange Commission which permits the Company to provide only management’s report in this Annual Report.

The ~~largest~~Board ~~category~~ of ~~loans~~Directors, ~~comprising~~acting ~~the~~through ~~Bank’s~~its ~~loan~~Audit ~~portfolio~~Committee, is ~~residential~~responsible ~~real~~for ~~estate~~the ~~loans. These~~oversight ~~loans~~of ~~are~~the ~~primarily~~Company’s ~~single-family~~accounting ~~residential~~policies, ~~real~~financial ~~estate~~reporting ~~loans~~and ~~secured~~internal ~~by a first mortgage on the dwelling~~control. The ~~risks~~Audit ~~associated~~Committee ~~with~~of ~~these loans are primarily~~ the ~~risk~~Board of ~~default~~Directors inis ~~repayment~~comprised ~~and~~entirely ~~inadequate~~of ~~collateral.~~outside ~~Real~~directors ~~estate~~who ~~commercial loans~~are ~~represent~~independent ~~the~~of ~~second~~management. The ~~largest~~Audit ~~category~~Committee ~~and~~is ~~include~~responsible ~~development~~for ~~loans~~the asappointment ~~well~~and ascompensation ~~investment~~of ~~commercial~~the ~~real~~independent ~~estate~~registered ~~loans.~~public ~~These~~accounting ~~loans~~firm ~~have~~and ~~risks,~~approves ~~which~~decisions ~~include~~regarding the ~~risk~~appointment ofor ~~default~~removal inof the ~~repayment~~Company’s ofinternal ~~principal~~auditors. The ~~and~~Committee ~~inadequate~~meets ~~collateral~~periodically aswith ~~well as~~management, the ~~risk~~independent ofregistered ~~cash~~public ~~flow~~accountants ~~interruption~~and ~~due to, in~~ the ~~case~~internal ofauditors ~~rental~~to ~~real~~ensure ~~estate,~~that ~~the~~they ~~inability~~are tocarrying ~~obtain~~out ortheir ~~collect adequate rental rates~~responsibilities. The ~~next~~Audit ~~largest~~Committee ~~loan~~is ~~segment~~also ofresponsible ~~the~~for ~~Bank’s~~performing ~~loan~~an ~~portfolio~~oversight isrole ~~the~~by ~~commercial~~reviewing and ~~other~~monitoring ~~category.~~the ~~The loans~~financial, ~~comprising~~accounting ~~this~~and ~~category~~auditing ~~represent~~procedures ~~loans~~of tothe ~~business~~Company ~~interests~~in ~~located~~addition ~~primarily~~to ~~within~~reviewing the ~~Bank~~Company’s ~~defined~~financial ~~market areas~~reports. The ~~Bank~~independent ~~has~~registered nopublic ~~significant~~accountants ~~industry~~and ~~loan~~the ~~concentration.~~internal ~~Commercial~~auditors ~~loans~~have ~~include~~full ~~both~~and ~~secured~~unlimited ~~and~~access ~~unsecured~~to ~~loans. The~~the ~~risks~~Audit ~~associated~~Committee, with ~~these~~or ~~loans~~without ~~are~~management, ~~principally~~to ~~the~~discuss ~~risk in default of~~ the ~~repayment~~adequacy of ~~principal~~internal ~~resulting~~control ~~from~~over ~~economic~~financial ~~problems of the commercial customer~~reporting, anand ~~economic~~any ~~downturn~~other ~~affecting~~matter ~~the~~which ~~market~~they inbelieve ~~general~~should ~~and,~~be inbrought to the ~~case~~attention of ~~secured loans,~~the ~~inadequate~~Audit ~~collateral~~Committee.

~~MATURITIES~~Item ~~AND~~9B. ~~SENSITIVITY~~Other ~~TO CHANGES IN INTEREST RATE~~ Information

The following table presents maturity distribution and interest rate sensitivity of real estate – commercial, real estate—construction and commercial and other loans at December 31, 2010 (dollars in thousands): None

	Within1 Year		After 1 YearWithin5 Years		After 5 Years		Total
Real estate – commercial	$	33,833	$	14,344	$	3,134	$	51,311
Real estate – construction		7,964		2,099		343		10,406
Commercial and other		32,036		8,983		912		41,931
	$	73,833	$	25,426	$	4,389	$	103,648
Fixed interest rates	$	3,073	$	13,527	$	2,716	$	19,316
Variable interest rates		70,760		11,899		1,673		84,332
	$	73,833	$	25,426	$	4,389	$	103,648

PART III

~~RISK~~Item ~~ELEMENTS~~10 Directors, Executive Officers and Corporate Governance

~~Loans~~The ~~are~~following ~~subject~~table tolists ~~ongoing~~the ~~periodic~~Executive ~~monitoring~~Officers byof ~~management and~~ the ~~Board of Directors. The~~ Company ~~ceases~~and ~~accruing~~its ~~interest~~subsidiary, onThe ~~residential~~Killbuck ~~mortgages secured~~Savings byBank ~~real~~Company, ~~estate~~ and ~~consumer~~certain ~~loans~~other ~~when~~information ~~principal~~with orrespect ~~interest~~to ~~payments~~each ~~are~~individual ~~delinquent~~as 90of ~~days~~December or31, ~~more~~2011. The ~~Commercial~~information ~~loans~~required ~~that are 90 days or more past due are reviewed~~ by ~~the~~this ~~Executive~~item ~~Vice~~with ~~President~~respect ~~and the loan officer~~ to ~~determine~~Directors ~~whether they~~and ~~will~~other beexecutive ~~classified as nonperforming. These~~ officers ~~review~~of ~~various~~the ~~factors~~Company ~~which~~and ~~include~~its subsidiary, ~~but~~The ~~are~~Killbuck ~~not~~Savings ~~limited~~Bank toCompany, ~~the~~is ~~timing~~incorporated ofherein ~~the~~by ~~maturity~~reference ofto the ~~loan~~information inunder ~~relation to~~ the ~~ability~~heading to“Election ~~collect,~~of ~~whether~~Directors ~~the~~and ~~loan~~Information iswith ~~deemed~~Respect to beDirectors ~~well~~and ~~secured, whether~~Officers” ~~the loan is~~ in the ~~process~~Proxy Statement of ~~collection, and~~ the ~~favorable~~Company. The ~~results~~information ofrequired ~~the~~regarding ~~analysis~~disclosure of ~~customer~~any ~~financial~~known ~~data.~~late Afilings ~~nonperforming~~or ~~loan~~failure ~~will~~by ~~only~~an beinsider ~~reclassified~~to asfile a ~~performing~~report ~~loan~~required ~~when~~by ~~stringent~~Section ~~criteria~~16(a) ~~have~~of ~~been met. At~~ the ~~time~~Securities ~~the accrual~~Exchange ofAct ~~interest~~ is ~~discontinued,~~incorporated ~~future~~herein ~~income~~by isreference ~~recognized~~to ~~only~~the ~~when~~information ~~cash~~under ~~is received or~~ the ~~loan~~heading ~~has~~“Compliance ~~been~~with ~~returned~~Section ~~to performing loan status. Renegotiated loans are those loans which terms have been renegotiated to provide~~ 16(a) ~~reduction or deferral~~ of ~~principal~~the orSecurities ~~interest~~Exchange asAct ~~a result~~ of ~~the~~1934” ~~deterioration~~in of the ~~borrower.~~Proxy AtStatement ~~December 31,~~of ~~2010,~~ the Company ~~had nonperforming loans of $392,000~~. The following table presents information concerning nonperforming assets including nonaccrual loans, loans 90 days or more past due, renegotiated loans, other real estate and repossessed assets at December 31, (dollars in thousands).

Name	Age	All Positions with Company and Bank

Craig A. Lawhead	54	President and CEO of the Company and CEO of the Bank since March 2011. Vice president and treasurer of Company from 1992 to March 2011; President of the Bank since May 2010; Executive vice president of the Bank from 1991 to May 2010; Director of both the Company and the Bank since December 2010.

Victor H. Weaver	50	Vice president and treasurer of the Company since March 2011; Executive vice president of the Bank since December 2010; Vice president of the Bank from 2002 to December 2010.

Luther E. Proper	62	Senior vice president/administration of the Company and the Bank since March 2011. President and CEO of the Company and CEO of the Bank from 1991 to March 2011. Vice-chairman of the Board of Directors of both the Company and the Bank since 2001.

Lawrence M. Cardinal	60	Vice president and secretary of the Company since June 2010; Senior vice president and Chief Financial Officer of Bank since June 2010.

~~Table~~The Company has adopted a Code of ~~Contents~~Ethics that applies to its principal executive, financial and accounting officers. A copy of the Code of Ethics is posted on the Company’s web site at http://www.killbuckbank.com. In the event we make any amendment to, or grant any waiver of, a provision of the Code of Ethics that applies to the principal executive, financial or accounting officer, or any person performing similar functions, that requires disclosure under applicable SEC rules, we intend to disclose such amendment or waiver, the nature of and reasons for it, along with the name of the person to whom it was granted and the date, on our internet website.

	At December 31,
	2010			2009			2008			2007			2006
Loans on nonaccrual basis	$	107		$	—		$	73		$	839		$	471
Loans past due 90 days or more		2			—			—			—			—
Renegotiated loans		283			—			—			—			—
Total nonperforming loans		392			—			73			839			471
Other real estate		—			23			—			—			80
Repossessed assets		—			—			—			—			—
Total nonperforming assets	$	392		$	23		$	73		$	839		$	551
Nonperforming loans as a percent of total loans		.19	%		.00	%		.04	%		.42	%		.24	%
Nonperforming loans as a percent of total assets		.10	%		.00	%		.02	%		.25	%		.15	%
Nonperforming assets as a percent of total assets		.10	%		.01	%		.02	%		.25	%		.18	%

Item 11 Executive Compensation

17Information required by this item is incorporated herein by reference to the information under the heading “Executive Compensation and Other Information” in the Proxy Statement of the Company.

~~Table~~Item 12 Security Ownership of ~~Contents~~Certain Beneficial Owners and Management and Related Stockholder Matters

~~The~~Information ~~amount~~required ofby ~~interest~~this ~~income~~item ~~that~~is ~~would~~incorporated ~~have~~herein ~~been~~by ~~recognized~~reference ~~had~~to the ~~loans~~information ~~performed~~under the heading “Principal Shareholders” and “Security Ownership of Management” in ~~accordance~~the ~~with their~~Proxy ~~original~~Statement ~~terms~~of ~~was~~the ~~less~~Company. The ~~than~~Company $5currently has no equity compensation plans or arrangements,~~000~~ ~~for~~such ~~the~~as ~~year~~stock ~~ended~~option ~~December 31~~or restricted stock arrangements, ~~2010.~~pursuant to which equity securities of the Company are authorized for issuance.

~~There~~Item ~~are~~13 ~~not~~Certain ~~any~~Relationships ~~loans~~and asRelated ~~of December 31~~Transactions, 2010, other than those discussed above, where known information about the borrower caused management to have serious doubts about the borrower’s ability to comply with their contractual repayment obligations. There are no concentrations of loans to borrowers engaged in similar activities which exceed 10% of total loans of which management is aware. Based upon the ongoing quarterly review and ~~assessment~~Director ~~of credit quality, management is not aware of any trends or uncertainties related to any accounts which might have a material adverse effect on future earnings, liquidity or capital resources.~~ Independence

~~There~~Information ~~are~~required noby ~~other~~this ~~interest-bearing assets~~item ~~that~~is ~~would~~incorporated beherein ~~subject~~by reference to ~~disclosure~~the asinformation ~~either~~under ~~nonperforming~~the orheading ~~impaired~~“Director ~~other~~Independence ~~than~~and ~~those~~Related ~~disclosed~~Party Transactions” in the ~~Notes~~Proxy toStatement of the Company and in the Notes to Consolidated Financial Statements ~~for~~included ~~December 31,~~in ~~2010,~~the ~~attached~~2011 ~~hereto~~Annual asReport ~~Exhibit~~to 13Shareholders tofiled with this ~~Annual~~ Report onas ~~Form 10K.~~Exhibit 13.

~~LOAN~~Item ~~LOSS~~14 ~~EXPERIENCE~~Principal Accounting Fees and Services

~~Management~~Information ~~makes~~required ~~periodic~~by ~~provisions~~this toitem ~~the~~is ~~allowance~~incorporated ~~for~~herein ~~loan~~by ~~losses~~reference to ~~maintain~~ the ~~allowance~~information atunder anthe ~~acceptable~~heading ~~level~~“Audit ~~commensurate~~Committee ~~with~~Report” ~~the credit risks inherent~~ in the ~~loan~~Proxy ~~portfolio.~~Statement ~~There can be no assurances, however, that additional provisions will not be required in future periods. The following table presents a summary~~ of ~~loan losses by loan type and changes in~~ the ~~allowance for loan losses for the years ended December 31, (dollars in thousands):~~ Company.

18PART IV

~~Table~~Item of15 ~~Contents~~Exhibits and Financial Statement Schedules

	Year Ended December 31,
	2010			2009			2008			2007			2006
Allowance for loan losses at beginning of year	$	2,441		$	2,525		$	2,510		$	2,394		$	2,313
Provision charged to expense		215			2			61			127			215
Charge-offs:
Real estate-residential		50			21			19			6			212
Real estate-farm		—			—			—			—			—
Real estate-commercial		—			37			33			71			92
Real estate-construction		—			—			—			—			—
Commercial and other		—			59			37			16			181
Consumer and credit card		10			16			24			39			9
Total charge-offs		60			133			113			132			494
Recoveries:
Real estate-residential		1			—			—			57			32
Real estate-farm		—			—			—			—			—
Real estate-commercial		44			12			42			27			308
Real estate-construction		—			—			—			—			—
Commercial and other		19			19			14			16			—
Consumer and credit card		6			16			11			21			20
Total recoveries		70			47			67			121			360
Net charge-offs		(10	)		86			46			11			134
Allowance for loan losses at end of period	$	2,666		$	2,441		$	2,525		$	2,510		$	2,394
Total loans outstanding	$	207,945		$	210,239		$	203,228		$	199,299		$	194,623
Average loans outstanding	$	210,091		$	207,846		$	201,179		$	202,692		$	202,525
Allowance for loan losses as a percent of total loans		1.28	%		1.16	%		1.24	%		1.26	%		1.23	%
Net charge-offs as a percent of average loans		.00	%		.04	%		.02	%		.01	%		.07	%

Financial Statements and Schedules

19The following Consolidated Financial Statements of Killbuck Bancshares, Inc. included in the Annual Report to Shareholders covering the Years Ended December 31, 2011, 2010, and 2009 are incorporated by reference in item 8:

~~Table~~Report of ~~Contents~~Independent Registered Public Accounting Firm

~~The~~Consolidated ~~Bank~~Balance ~~reviews~~Sheet ~~the~~at adequacy of its allowance for loan losses on a quarterly basis. In determining the adequacy of its allowance account the Bank makes allocations based upon loan categories, nonaccrual, past due and classified loans. The Bank has determined that the allowance is adequate as of December 31, ~~2010,~~2011 ~~based upon its analysis~~ and ~~experience.~~ ~~However, there can be no assurance that the current allowance for loan losses will be adequate to absorb all future loan losses.~~ 2010

~~The~~Consolidated ~~following~~Statement ~~table presents management’s estimate~~ of ~~the~~Income ~~allocation~~for of the ~~allowance~~Years ~~for~~Ended ~~loan~~December ~~losses among the loan categories~~31, ~~although the entire allowance balance is available to absorb any actual charge-offs that may occur~~2011, ~~along~~2010 ~~with~~and ~~the percentage of loans in each category to total loans for the years ended December 31 (dollars in thousands):~~ 2009

	2010					2009					2008					2007					2006
	Allowance		% ofLoanstoTotalLoans			Allowance		% ofLoanstoTotalLoans			Allowance		% ofLoanstoTotalLoans			Allowance		% ofLoanstoTotalLoans			Allowance		% ofLoanstoTotalLoans
Real estate – residential	$	603		42.1	%	$	850		38.8	%	$	524		35.8	%	$	621		36.6	%	$	540		39.6	%
Real estate – farm		69		4.8			55		4.6			212		4.4			21		5.0			60		6.9
Real estate – commercial		887		24.7			580		27.6			990		29.3			566		30.0			451		25.8
Real estate – construction		98		5.0			67		5.6			—		5.9			—		3.9			—		5.6
Commercial and other loans		955		20.2			793		20.5			544		21.3			1,191		20.9			1,181		18.6
Consumer and credit loans		54		3.2			96		2.9			255		3.3			111		3.6			162		3.5
	$	2,666		100.0	%	$	2,441		100.0	%	$	2,525		100.0	%	$	2,510		100.0	%	$	2,394		100.0	%

Consolidated Statement of Changes in Shareholders’ Equity for the Years Ended December 31, 2011, 2010 and 2009

20Consolidated Statement of Cash Flows for the Years Ended December 31, 2011, 2010 and 2009

~~Table~~Notes ofto ~~Contents~~Consolidated Financial Statements

~~CONTRACTUAL~~Schedules ~~OBLIGATIONS~~are omitted because they are inapplicable, not required, or the information is included in the Consolidated Financial Statements or Notes thereto.

The following table presents, as of December 31, 2010, significant fixed and determinable contractual obligations to third parties by payment date. Further discussion of the nature of each obligation is included in the referenced Note to the Consolidated Financial Statements for December 31, 2010, attached hereto as Exhibit 13 to this Annual Report on Form 10K. Exhibits

(In thousands)	NoteReference		One Yearor Less		One toThreeYears		Three toFiveYears		Over FiveYears		Total
Borrowed funds		8,9	$	3,827	$	258	$	126	$	18	$	4,229
Certificates of deposit		7		89,084		51,326		28,851		7		169,268
Operating leases		12		20		41		7		—		68
Deposits without a stated maturity		N/A		186,921		—		—		—		186,921
Total			$	279,852	$	51,625	$	28,984	$	25	$	360,486

The following exhibits are filed herewith and/or are incorporated herein by reference.

~~COMMITMENTS~~Exhibit Number Description

~~The~~3(i) ~~following~~Certificate ~~table details the amounts~~ and ~~expected~~Articles ~~maturities~~ of ~~significant~~Incorporation ~~commitments as~~ of ~~December 31,~~Killbuck ~~2010. Further discussion of these commitments is included in Notes to the Consolidated Financial Statements~~Bancshares, ~~attached hereto as Exhibit 13 to this Annual Report on Form 10K~~Inc. *

(In thousands)	One Yearor Less		One toThreeYears		Three toFiveYears		Over FiveYears		Total
Commitments to extend credit
Commercial	$	20,095	$	1,215	$	9	$	—	$	21,319
Residential real estate		2,949		4		—		—		2,953
Revolving home equity		—		—		—		14,451		14,451
Credit card lines		4,110		—		—		—		4,110
Standby letters of credit		1,185		—		—		—		1,185

3(ii)

Code of Regulations of Killbuck Bancshares, Inc.*

~~Item 7A~~10.1 ~~Quantitative~~Employment ~~and~~Agreement ~~Qualitative~~dated ~~Disclosures~~April ~~About~~23, ~~Market~~2007 ~~Risk~~between Killbuck Savings Bank Company and Luther E. Proper. **

~~See~~10.2 ~~the~~Employment ~~section~~Agreement ~~Quantitative~~dated ~~and~~April ~~Qualitative~~23, ~~Disclosures~~2007 ~~About~~between ~~Market~~Killbuck ~~Risk~~Savings ~~contained~~Bank ~~in the~~ Company’s ~~Management Discussion~~ and ~~Analysis~~Craig ~~attached hereto~~A. ~~as Exhibit 13 and incorporated herein by reference~~Lawhead. **

2112 Statement regarding computation of ratios.

~~Table~~13 Portions of ~~Contents~~the 2011 Annual Report to Shareholders

~~Item 8~~21 ~~Financial~~Subsidiary ~~Statements~~of ~~and~~the ~~Supplementary~~Holding ~~Data~~ Company.*

~~The report of the Independent Registered Public Accountants and the Consolidated Financial Statements included in the 2010 Annual Report to Shareholders of Killbuck Bancshares, Inc~~31.1 ~~and~~Rule ~~filed~~13a-14(a) ~~with this Report as Exhibit 13 are incorporated herein by reference.~~ Certification

~~Item 9~~31.2 ~~Changes~~Rule in13a-14(a) ~~and Disagreements with Accountants on Accounting and Financial Disclosure~~ Certification

~~None~~32.1 Certification pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

~~Item 9A~~32.2 ~~Controls~~Certification ~~and~~pursuant ~~Procedures~~to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

The Company has carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s President and Chief Executive Officer and Vice President and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15101.INS ~~Based~~XBRL ~~upon~~Instance that evaluation, the President and Chief Executive Officer and Vice President and Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective, as of the end of the period covered by this report, in timely alerting them to material information relating to the Company (including its consolidated subsidiaries) required to be included in the Company’s periodic SEC filings. ***

~~There~~101.SCH ~~was~~XBRL ~~no change~~Taxonomy inExtension ~~the~~Schema Company’s internal control over financial reporting that occurred during the Company’s calendar quarter ended December 31, 2010, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. ***

~~Management’s~~101.CAL ~~Report~~XBRL onTaxonomy ~~Internal~~Extension ~~Control~~Calculation ~~Over Financial Reporting~~ ***

~~Management is responsible for the preparation and fair presentation of the financial statements included in this Annual Report~~101.DEF ~~The consolidated~~XBRL ~~financial~~Taxonomy ~~statements~~Extension ~~have~~Definition been prepared in conformity with accounting principles generally accepted in the United States of America and reflect management’s judgments and estimates concerning effects of events and transactions that are accounted for or disclosed. ***

~~Management is also responsible for establishing and maintaining adequate internal control over financial reporting~~101.LAB ~~The~~XBRL ~~Company’s~~Taxonomy ~~internal~~Extension ~~control~~Labels over financial reporting includes those policies and procedures that pertain to the Company’s ability to record, process, summarize and report reliable financial data. Management recognizes that there are inherent limitations in the effectiveness of any internal control over financial reporting, including the possibility of human error and the circumvention or overriding of internal control. Accordingly, even effective internal control over financial reporting can provide only reasonable assurance with respect to financial statement preparation. Further, because of changes in conditions, the effectiveness of internal control over financial reporting may vary over time. ***

In order to ensure that the Company’s internal control over financial reporting is effective, management is required to evaluate, with the participation of the Company’s principal executive and principal financial officers, the effectiveness of the Company’s internal control over financial reporting as of the end of each year and did so most recently for its financial reporting as of December 31, 2010101.PRE ~~Management’s~~XBRL ~~assessment~~Taxonomy ofExtension ~~the~~Presentation effectiveness of the Company’s internal control over financial reporting was based on criteria for effective internal control over financial reporting described in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission. Based on this assessment, management has concluded that the internal control over financial reporting was effective as of December 31, 2010. This Annual Report does not include an attestation report of the Company’s registered independent public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered independent public accounting firm pursuant to rules of the Securities and Exchange Commission which permits the Company to provide only management’s report in this Annual Report. ***

22* Incorporated by reference to an identically numbered exhibit to the Form 10 (File No. 000-24147) filed with the SEC on April 30, 1998 and subsequently amended on July 8, 1998 and July 31, 1998.

~~Table~~** ofIncorporated ~~Contents~~by reference to an identically numbered exhibit to the Form 8-K filed with the SEC on April 23, 2007.

~~The~~*** ~~Board~~XBRL ofinformation ~~Directors, acting through its Audit Committee,~~ is ~~responsible~~furnished ~~for the oversight of the Company’s accounting policies, financial reporting~~ and ~~internal~~not ~~control.~~filed ~~The~~or ~~Audit~~a ~~Committee~~part of ~~the~~a ~~Board~~registration ofstatement ~~Directors~~or isprospectus ~~comprised entirely of outside directors who are independent of management. The Audit Committee is responsible~~ for ~~the appointment~~purposes ~~and compensation~~ of ~~the~~sections ~~independent~~11 ~~registered public accounting firm and approves decisions regarding the appointment~~ or ~~removal~~12 of the ~~Company’s~~Securities ~~internal~~Act ~~auditors.~~of ~~The~~1933, ~~Committee~~as ~~meets periodically with management~~amended, ~~the independent registered public accountants and the internal auditors to ensure that they are carrying out their responsibilities. The Audit Committee~~ is ~~also~~deemed ~~responsible~~not filed for ~~performing~~purposes anof ~~oversight~~section ~~role~~18 byof ~~reviewing and monitoring~~ the ~~financial,~~Securities ~~accounting~~Exchange ~~and auditing~~Act ~~procedures~~ of ~~the Company in addition to reviewing the Company’s financial reports. The independent registered public accountants and the internal auditors have full and unlimited access to the Audit Committee~~1934, ~~with~~as ~~or without management~~amended, ~~to discuss the adequacy of internal control over financial reporting,~~ and ~~any~~otherwise ~~other~~is ~~matter~~not ~~which~~subject ~~they believe should be brought~~ to ~~the~~liability ~~attention~~under ofthese ~~the Audit Committee~~sections.

~~Item 9B. Other Information~~ SIGNATURES

~~None~~Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

~~PART~~Killbuck ~~III~~Bancshares, Inc.

~~Item 10 Directors, Executive Officers and Corporate Governance~~ (Registrant)

~~The~~By: ~~following~~/s/ ~~table~~Craig ~~lists the Executive Officers of the Company and its subsidiary, The Killbuck Savings Bank Company, and certain other information with respect to each individual as of December 31, 2010~~A. The information required by this item with respect to Directors and other executive officers of the Company and its subsidiary, The Killbuck Savings Bank Company, is incorporated herein by reference to the information under the heading “Election of Directors and Information with Respect to Directors and Officers” in the Proxy Statement of the Company. The information required regarding disclosure of any known late filings or failure by an insider to file a report required by Section 16(a) of the Securities Exchange Act is incorporated herein by reference to the information under the heading “Compliance with Section 16(a) of the Securities Exchange Act of 1934” in the Proxy Statement of the Company. Lawhead

Name	Age	All Positions with Company and Bank
Luther E. Proper	61	President and CEO of the Company since 1991. CEO of the Bank since 1991. Mr. Proper retired from these positions effective March 21, 2011. Vice-chairman of the Board of Directors of both the Company and the Bank since 2001.
Craig A. Lawhead	53	President and CEO of the Company and CEO of the Bank effective March 21, 2011. Vice president and treasurer of Company since 1992; President of the Bank since May 2010: Executive vice president of the Bank from 1991 to May 2010. Director of both the Company and the Bank since December 2010.
Victor H. Weaver	49	Executive vice president of the Bank since December 2010; Vice president of the Bank from 2002 to December 2010.
Lawrence M. Cardinal	59	Vice president and secretary of the Company since June 2010; Senior vice president and Chief Financial Officer of Bank since June 2010.

Craig A. Lawhead

~~The~~President ~~Company has adopted a Code of Ethics that applies to its principal executive, financial~~ and ~~accounting~~Chief ~~officers.~~Executive ~~A copy of the Code of Ethics is posted on the Company’s web site at http:~~Officer//www.killbuckbank.com. In the event we make any amendment to, or grant any waiver of, a provision of the Code of Ethics that applies to the principal executive, financial or accounting officer, or any person performing similar functions, that requires disclosure under applicable SEC rules, we intend to disclose such amendment or waiver, the nature of and reasons for it, along with the name of the person to whom it was granted and the date, on our internet website. Director

23(Duly authorized representative)

~~Table~~Pursuant to the requirements of ~~Contents~~the Securities Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Item 11 Executive Compensation

Signatures	Description	Date

/s/ Craig A. Lawhead	President, Chief Executive	March 26, 2012
Craig A. Lawhead	Officer and Director

/s/ Luther E. Proper	Senior Vice President/	March 26, 2012
Luther E. Proper	Administration and Director

/s/ John W. Baker	Director	March 26, 2012
John W. Baker

/s/ Ted Bratton	Director	March 26, 2012
Ted Bratton

/s/ Gail E. Patterson	Director	March 26, 2012
Gail E. Patterson

/s/ Allan R. Mast	Director	March 26, 2012
Allan R. Mast

/s/ Max A. Miller	Director	March 26, 2012
Max A. Miller

/s/ Dean J. Mullet	Director	March 26, 2012
Dean J. Mullet

/s/ Michael S. Yoder	Director	March 26, 2012
Michael S. Yoder

/s/ Lawrence M. Cardinal	Chief Financial and Chief	March 26, 2012
Lawrence M. Cardinal	Accounting Officer

Information required by this item is incorporated herein by reference to the information under the heading “Executive Compensation and Other Information” in the Proxy Statement of the Company.

Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Information required by this item is incorporated herein by reference to the information under the heading “Principal Shareholders” and “Security Ownership of Management” in the Proxy Statement of the Company. The Company currently has no equity compensation plans or arrangements, such as stock option or restricted stock arrangements, pursuant to which equity securities of the Company are authorized for issuance.

Item 13 Certain Relationships and Related Transactions, and Director Independence

Information required by this item is incorporated herein by reference to the information under the heading “Director Independence and Related Party Transactions” in the Proxy Statement of the Company and in the Notes to Consolidated Financial Statements included in the 2010 Annual Report to Shareholders filed with this Report as Exhibit 13.

Item 14 Principal Accounting Fees and Services

Information required by this item is incorporated herein by reference to the information under the heading “Audit Committee Report” in the Proxy Statement of the Company.

PART IV

Item 15 Exhibits and Financial Statement Schedules

Financial Statements and Schedules

The following Consolidated Financial Statements of Killbuck Bancshares, Inc. included in the Annual Report to Shareholders covering the Years Ended December 31, 2010, 2009, and 2008 are incorporated by reference in item 8:

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheet at December 31, 2010 and 2009

Consolidated Statement of Income for the Years Ended December 31, 2010, 2009 and 2008

Consolidated Statement of Changes in Shareholders’ Equity for the Years Ended December 31, 2010, 2009 and 2008

Consolidated Statement of Cash Flows for the Years Ended December 31, 2010, 2009 and 2008

Notes to Consolidated Financial Statements

Schedules are omitted because they are inapplicable, not required, or the information is included in the Consolidated Financial Statements or Notes thereto.

Exhibits

The following exhibits are filed herewith and/or are incorporated herein by reference.

ExhibitNumber		Description
3(i)		Certificate and Articles of Incorporation of Killbuck Bancshares, Inc.*
3(ii)		Code of Regulations of Killbuck Bancshares, Inc.*
10.1		Employment Agreement dated April 23, 2007 between Killbuck Savings Bank Company and Luther E. Proper. **
10.2		Employment Agreement dated April 23, 2007 between Killbuck Savings Bank Company and Craig A. Lawhead. **
12		Statement regarding computation of ratios.
13		Portions of the 2010 Annual Report to Shareholders
21		Subsidiary of the Holding Company.*
31.1		Rule 13a-14(a) Certification
31.2		Rule 13a-14(a) Certification
32.1		Certification pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2003.
32.2		Certification pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2003.

* Incorporated by reference to an identically numbered exhibit to the Form 10 (File No. 000-24147) filed with the SEC on April 30, 1998 and subsequently amended on July 8, 1998 and July 31, 1998.

** Incorporated by reference to an identically numbered exhibit to the Form 8-K filed with the SEC on April 23, 2007.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Killbuck Bancshares, Inc. (Registrant) By: /s/ Craig A. Lawhead Craig A. Lawhead President and Chief Executive Officer/Director (Duly authorized representative)

Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signatures	Description	Date
/s/ Luther E. Proper	President, Chief Executive Officer (Retired effective March 21, 2011) and Director	March 28, 2011
Luther E. Proper
/s/ Craig A. Lawhead	President, Chief Executive Officer (Effective March 21, 2011) and Director	March 28, 2011
Craig A. Lawhead
/s/ John W. Baker	Director	March 28, 2011
John W. Baker
/s/ Ted Bratton	Director	March 28, 2011
Ted Bratton
/s/ Gail E. Patterson	Director	March 28, 2011
Gail E. Patterson
/s/ Allan R. Mast	Director	March 28, 2011
Allan R. Mast
/s/ Max A. Miller	Director	March 28, 2011
Max A. Miller
/s/ Dean J. Mullet	Director	March 28, 2011
Dean J. Mullet
/s/ Kenneth E. Taylor	Director	March 28, 2011
Kenneth E. Taylor
/s/ Michael S. Yoder	Director	March 28, 2011
Michael S. Yoder
/s/ Lawrence M. Cardinal	Chief Financial and Chief Accounting Officer	March 28, 2011
Lawrence M. Cardinal

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