**2006      ANNUAL REPORT**

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**LINCOLN      PARK BANCORP**

**2006      Annual Report to Stockholders**

**Table      of Contents**

| Letter                  to Stockholders                                                                               | 2      |
|-----------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                  |        |
| Selected                  Consolidated Financial Information and Other Data                                           | 3      |
|                                                                                                                  |   |
| Management’s                  Discussion and Analysis of Financial Condition and Results of** **Operations | 5      |
|                                                                                                                  |   |
| Independent                  Auditor’s Report                                                                   | 15     |
|                                                                                                                  |   |
| Consolidated                  Financial Statements                                                                    | 16     |
|                                                                                                                  |   |
| Directors                  and Executive Officers                                                                     | 56     |
|                                                                                                                  |   |
| Stockholder                  Information                                                                              | 57     |
|                                                                                                                  |   |
| Market                  Information                                                                                   | 58     |

**Visit      our website at **
**www.lincolnparksavings.com**

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**31      Boonton Turnpike, Lincoln Park, New Jersey      07035**

**973-694-0330      FAX 973-694-3114**

**www.lincolnparksavings.com**

** **

| **Sincerely,**                                                          |   |   |   |
|-------------------------------------------------------------------------|--------|--------|--------|
|                                                                    |   |   |   |
| /s/ David              G.              Baker                       |   |   |        |
|                                                                         |   |   |        |
| **David                G. Baker****President                & CEO** |   |   |   |

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**LINCOLN      PARK BANCORP**

**SELECTED      CONSOLIDATED FINANCIAL **
**INFORMATION      AND OTHER DATA**

|                                                        |   | **At                  December 31,**        |       |
|-------------------------------------------------------------|--------|---------------------------------------------|------------|
|                                                        |   | **2006**                                    |       | **2005** |   | **2004** |   |
|                                                        |   | **(Dollars                  in Thousands)** |       |
| **Selected                  Financial Condition Data****:** |   |                                        |       |   |   |   |   |
|                                                        |   |                                        |       |   |   |   |   |
| Total                  assets                               |   | **$**                                       | **93,970** |   | $ | 93,958 |   | $ | 86,699 |   |
| Loans                  receivable, net (1)                  |   |                                        | **67,451** |   |   | 66,383 |   |   | 57,154 |   |
| Cash                  and cash equivalents                  |   |                                        | **2,601**  |   |   | 2,316 |   |   | 5,898 |   |
| Term                  deposits                              |   |                                        | **190**    |   |   | 581 |   |   | 81 |   |
| Securities                  available for sale              |   |                                        | **2,574**  |   |   | 3,002 |   |   | 4,316 |   |
| Securities                  held to maturity                |   |                                        | **18,335** |   |   | 18,817 |   |   | 17,043 |   |
| Deposits                                                    |   |                                        | **57,844** |   |   | 54,367 |   |   | 57,216 |   |
| FHLB                  advances                              |   |                                        | **21,978** |   |   | 25,534 |   |   | 16,143 |   |
| Stockholders’                  equity                 |   |                                        | **13,244** |   |   | 13,388 |   |   | 12,827 |   |

----

| (1) | Net                of loans in process, allowance for loan losses and deferred loan                fees. |
|-----|----------------------------------------------------------------------------------------------------------|

|                                                                                                |   | **Years                  Ended December 31,**                                          |      |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|-----------|
|                                                                                                |   | **2006**                                                                               |      | **2005** |   | **2004** |   |
|                                                                                                |   | **(Dollars                  in Thousands,****Except Per Share                  Data)** |      |
| **Selected                  Operations Data****:**                                                  |   |                                                                                   |      |   |   |   |   |
|                                                                                                |   |                                                                                   |      |   |   |   |   |
| Total                  interest income                                                              |   | **$**                                                                                  | **4,965** |   | $ | 4,418 |   | $ | 3,719 |   |
| Total                  interest expense                                                             |   |                                                                                   | **2,576** |   |   | 1,722 |   |   | 1,363 |   |
| Net                  interest income                                                                |   |                                                                                   | **2,389** |   |   | 2,696 |   |   | 2,356 |   |
| (Recovery                  of) provision for loan losses                                            |   |                                                                                   | **(22**   | **)** |   | 6 |   |   | 30 |   |
| Net                  interest income after (recovery of) provision for loan                  losses |   |                                                                                   | **2,411** |   |   | 2,690 |   |   | 2,326 |   |
| Non-interest                  income                                                                |   |                                                                                   | **134**   |   |   | 100 |   |   | 110 |   |
| Non-interest                  expenses                                                              |   |                                                                                   | **2,042** |   |   | 1,843 |   |   | 1,769 |   |
| Income                  taxes                                                                       |   |                                                                                   | **189**   |   |   | 370 |   |   | 262 |   |
| Net                  income                                                                         |   | **$**                                                                                  | **314**   |   | $ | 576 |   | $ | 405 |   |
| Net                  income per share (2005 and 2004 restated)                                      |   | **$**                                                                                  | **0.18**  |   | $ | 0.32 |   | $ | 0.39 |   |

----

|                                                                                                  |   | **At                December 31,** |        |
|-------------------------------------------------------------------------------------------------------|--------|------------------------------------|-------------|
|                                                                                                  |   | **2006**                           |        | **2005** |   | **2004** |   |
| **Selected                Financial Ratios and Other Data****:**                                      |   |                               |        |   |   |   |   |
| **Performance                Ratios:**                                                                |   |                               |        |   |   |   |   |
| Return                on average assets (ratio of net income to average total assets)                 |   |                               | **0.33**    | **%** |   | 0.65 | % |   | 0.51 | % |
| Return                on average equity                                                               |   |                               | **2.37**    |   |   | 4.40 |   |   | 7.59 |   |
| Net                yield on average interest-earning assets                                           |   |                               | **5.37**    |   |   | 5.09 |   |   | 3.10 |   |
| Net                interest rate spread (1)                                                           |   |                               | **2.15**    |   |   | 2.78 |   |   | 2.97 |   |
| Average                interest-earning assets to average interest-bearing                liabilities |   |                               | **115.77**  |   |   | 116.30 |   |   | 107.30 |   |
| Non-interest                expense to average assets                                                 |   |                               | **2.15**    |   |   | 2.06 |   |   | 2.24 |   |
| Efficiency                ratio                                                                       |   |                               | **80.94**   |   |   | 65.92 |   |   | 71.74 |   |
|                                                                                                  |   |                               |        |   |   |   |   |   |   |   |
| **Capital                Ratios:**                                                                    |   |                               |        |   |   |   |   |   |   |   |
| Average                equity to average total assets                                                 |   |                               | **13.97**   |   |   | 14.65 |   |   | 6.77 |   |
| Tier                1 leverage ratio                                                                  |   |                               | **10.37**   |   |   | 10.70 |   |   | 10.43 |   |
| Tier                1 risk-based ratio                                                                |   |                               | **19.06**   |   |   | 19.26 |   |   | 19.52 |   |
| Total                risk-based capital ratio                                                         |   |                               | **19.33**   |   |   | 19.58 |   |   | 19.86 |   |
|                                                                                                  |   |                               |        |   |   |   |   |   |   |   |
| **Asset                Quality Ratios:**                                                              |   |                               |        |   |   |   |   |   |   |   |
| Net                charge-offs to average nonperforming assets                                        |   |                               | **0.07**    |   |   | 0.81 |   |   | 0.24 |   |
| Net                charge-offs to average loans outstanding                                           |   |                               | **—** |   |   | 0.01 |   |   | — |   |
| Allowance                for loan losses to gross loans outstanding                                   |   |                               | **0.20**    |   |   | 0.24 |   |   | 0.27 |   |
| Nonperforming                loans to total assets                                                    |   |                               | **0.17**    |   |   | 0.30 |   |   | 0.49 |   |
| Nonperforming                assets to total assets                                                   |   |                               | **0.17**    |   |   | 0.30 |   |   | 0.49 |   |
|                                                                                                  |   |                               |        |   |   |   |   |   |   |   |
| **Other                Data:**                                                                        |   |                               |        |   |   |   |   |   |   |   |
| Number                of full-service offices                                                         |   |                               | **1**       |   |   | 1 |   |   | 1 |   |

----

| (1) | Represents                the difference between the average yield on interest-earning assets                and                the average cost of interest-bearing                liabilities. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**LINCOLN      PARK BANCORP AND SUBSIDIARY**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF**

**FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

**General**

**Forward-Looking      Statements**

**Critical      Accounting Policies**

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**LINCOLN      PARK BANCORP AND SUBSIDIARY**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF**

**FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

**Comparison      of Financial Condition at December 31, 2006 and 2005**

** **

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**LINCOLN      PARK BANCORP AND SUBSIDIARY**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF**

**FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

**Comparison      of Financial Condition at December 31, 2006 and 2005      (Cont’d.)**

**Comparison      of Operating Results for the Years Ended December 31, 2006 and      2005**

**General.      **

**Interest      Income. **

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**LINCOLN      PARK BANCORP AND SUBSIDIARY**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF**

**FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

**Comparison      of Operating Results for the Years Ended December 31, 2006 and 2005      (Cont’d.)**

**Interest      Expense.**

**Net      Interest Income. **

**Provision      for (Recovery of) Loan Losses.**

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**LINCOLN      PARK BANCORP AND SUBSIDIARY**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF**

**FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

**Comparison      of Operating Results for the Years Ended December 31, 2006 and 2005      (Cont’d.)**

**Non-interest      Income. **

**Non-interest      Expenses. **

**Income      Tax Expense. **

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**LINCOLN      PARK BANCORP AND SUBSIDIARY**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF**

**FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

**Average      Balance Sheet**

|                                                                              |   | **At                  December 31, 2006**  |       | **Year                  Ended December 31,** |   |
|-----------------------------------------------------------------------------------|--------|-------------------------------------------------|------------|----------------------------------------------|--------|
|                                                                              |   |                                                 |       | **2006**                                     |   | **2005** |   |
|                                                                              |   | **Outstanding                  Balance**        |       | **Yield/                  Cost**             |   | **Average                  Outstanding Balance** |   | **Interest                  Earned/ Paid** |   | **Yield/                  Cost** |   | **Average                  Outstanding Balance** |   | **Interest                  Earned/ Paid** |   | **Yield/                  Cost** |   |
|                                                                              |   | **(Dollars                  in Thousands)**     |       |
|                                                                              |   |
| Interest-earning                  assets:                                         |   |                                            |       |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                  receivable (1)                                             |   | **$**                                           | **67,451** |                                         |   | **5.83** | **%** | **$** | **67,726** |   | **$** | **3,846** |   |   | **5.68** | **%** | $ | 61,321 |   | $ | 3,331 |   |   | 5.43 | % |
| Taxable                  securities (2)(3)                                        |   |                                            | **19,996** |                                         |   | **4.69** | **%** |   | **20,795** |   |   | **1,026** |   |   | **4.93** | **%** |   | 21,479 |   |   | 1,004 |   |   | 4.67 | % |
| Tax-exempt                  securities(2)                                         |   |                                            | **913**    |                                         |   | **3.93** | **%** |   | **922** |   |   | **36** |   |   | **4.39** | **%** |   | 937 |   |   | 36 |   |   | 3.84 | % |
| Other                  interest-earning assets                                    |   |                                            | **2,684**  |                                         |   | **4.38** | **%** |   | **3,097** |   |   | **57** |   |   | **1.84** | **%** |   | 3,013 |   |   | 47 |   |   | 1.56 | % |
| Total                  interest-earning assets                                    |   |                                            | **91,044** |                                         |   | **5.52** | **%** |   | **92,540** |   |   | **4,965** |   |   | **5.37** | **%** |   | 86,750 |   |   | 4,418 |   |   | 5.09 | % |
|                                                                              |   |                                            |       |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning                  assets                                      |   |                                            | **2,926**  |                                         |   |   |   |   | **2,249** |   |   |   |   |   |   |   |   | 2,511 |   |   |   |   |   |   |   |
|                                                                              |   |                                            |       |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  assets                                                     |   | **$**                                           | **93,970** |                                         |   |   |   | **$** | **94,789** |   |   |   |   |   |   |   | $ | 89,261 |   |   |   |   |   |   |   |
|                                                                              |   |                                            |       |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                  liabilities:                                    |   |                                            |       |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                  deposits:                                       |   |                                            |       |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                                                                            |   | **$**                                           | **11,088** |                                         |   | **2.13** | **%** | **$** | **11,826** |   |   | **262** |   |   | **2.22** | **%** | $ | 11,615 |   |   | 147 |   |   | 1.27 | % |
| Savings                  and club                                                 |   |                                            | **13,182** |                                         |   | **1.01** | **%** |   | **14,698** |   |   | **148** |   |   | **1.01** | **%** |   | 16,668 |   |   | 169 |   |   | 1.01 | % |
| Certificates                  of deposit                                          |   |                                            | **32,806** |                                         |   | **4.62** | **%** |   | **27,606** |   |   | **1,066** |   |   | **3.86** | **%** |   | 26,491 |   |   | 717 |   |   | 2.71 | % |
| Borrowed                  money                                                   |   |                                            | **21,978** |                                         |   | **4.24** | **%** |   | **25,802** |   |   | **1,100** |   |   | **4.26** | **%** |   | 19,815 |   |   | 689 |   |   | 3.48 | % |
| Total                  interest-bearing liabilities                               |   |                                            | **79,054** |                                         |   | **3.58** | **%** |   | **79,932** |   |   | **2,576** |   |   | **3.22** | **%** |   | 74,589 |   |   | 1,722 |   |   | 2.31 | % |
|                                                                              |   |                                            |       |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing                  liabilities:                                |   |                                            |       |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing                  demand                                      |   |                                            | **769**    |                                         |   |   |   |   | **1,104** |   |   |   |   |   |   |   |   | 996 |   |   |   |   |   |   |   |
| Other                                                                             |   |                                            | **903**    |                                         |   |   |   |   | **509** |   |   |   |   |   |   |   |   | 595 |   |   |   |   |   |   |   |
|                                                                              |   |                                            | **1,672**  |                                         |   |   |   |   | **1,613** |   |   |   |   |   |   |   |   | 1,591 |   |   |   |   |   |   |   |
| Total                  liabilities                                                |   |                                            | **80,726** |                                         |   |   |   |   | **81,545** |   |   |   |   |   |   |   |   | 76,180 |   |   |   |   |   |   |   |
|                                                                              |   |                                            |       |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                                                                            |   |                                            | **13,244** |                                         |   |   |   |   | **13,244** |   |   |   |   |   |   |   |   | 13,081 |   |   |   |   |   |   |   |
| Total                  liabilities and equity                                     |   | **$**                                           | **93,970** |                                         |   |   |   | **$** | **94,789** |   |   |   |   |   |   |   | $ | 89,261 |   |   |   |   |   |   |   |
| Net                  interest income                                              |   |                                            |       |                                         |   |   |   |   |   |   | **$** | **2,389** |   |   |   |   |   |   |   | $ | 2,696 |   |   |   |   |
| Interest                  rate spread (4)                                         |   |                                            |       |                                         |   | **1.94** | **%** |   |   |   |   |   |   |   | **2.15** | **%** |   |   |   |   |   |   |   | 2.78 | % |
| Net                  interest margin (5)                                          |   |                                            |       |                                         |   |   |   |   |   |   |   |   |   |   | **2.58** | **%** |   |   |   |   |   |   |   | 3.11 | % |
| Net                  interest-earning assets                                 |   | **$**                                           | **11,990** |                                         |   |   |   | **$** | **12,608** |   |   |   |   |   |   |   | $ | 12,161 |   |   |   |   |   |   |   |
| Ratio                  of interest-earning assets to interest-bearing liabilities |   |                                            | **1.15**   | **x**                                   |   |   |   |   | **1.16** | **x**  |   |   |   |   |   |   |   | 1.16 | x  |   |   |   |   |   |   |

----

| (1) | Loans                receivable are net of the allowance for loan                losses. |
|-----|------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
| (2) | Includes                both available for sale and held to maturity                securities. |
|-----|-------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
| (3) | Includes                stock in Federal Home Loan Bank of New                York. |
|-----|-------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
| (4) | Net                interest rate spread represents the difference between the yield                on                interest-earning assets and the cost of interest-bearing                liabilities. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
| (5) | Net                interest margin represents net interest income as a percentage of                interest-earning assets. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

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**LINCOLN      PARK BANCORP AND SUBSIDIARY**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF**

**FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

**Rate/Volume      Analysis**

|                                         |   | **Year                Ended December 31,**       |    |
|----------------------------------------------|--------|--------------------------------------------------|---------|
|                                         |   | **2006                vs. 2005**                 |    |
|                                         |   | **Increase/(Decrease)****Due                to** |    | **Total****Increase****(Decrease)** |   |
|                                         |   |
|                                         |   | **Volume**                                       |    | **Rate** |   |   |   |
|                                         |   | **(Dollars                in Thousands)**        |    |
|                                         |   |                                             |    |   |   |   |   |
| Interest                income:              |   |                                             |    |   |   |   |   |
| Loans                receivable              |   | **$**                                            | **357** |   | **$** | **158** |   | **$** | **515** |   |
| Taxable                securities            |   |                                             | **(28** | **)** |   | **50** |   |   | **22** |   |
| Tax-exempt                securities         |   |                                             | **(5**  | **)** |   | **5** |   |   | — |   |
| Other                interest-earning assets |   |                                             | **1**   |   |   | **9** |   |   | **10** |   |
|                                         |   |                                             |    |   |   |   |   |   |   |   |
| Total                interest income         |   |                                             | **326** |   |   | **221** |   |   | **547** |   |
|                                         |   |                                             |    |   |   |   |   |   |   |   |
| Interest                expense:             |   |                                             |    |   |   |   |   |   |   |   |
| Interest-bearing                deposits:    |   |                                             |    |   |   |   |   |   |   |   |
| Demand                                       |   |                                             | **1**   |   |   | **114** |   |   | **115** |   |
| Savings                and club accounts     |   |                                             | **(21** | **)** |   | — |   |   | **(21** | **)** |
| Certificates                of deposits      |   |                                             | **31**  |   |   | **318** |   |   | **349** |   |
| Borrowed                money                |   |                                             | **170** |   |   | **175** |   |   | **411** |   |
|                                         |   |                                             |    |   |   |   |   |   |   |   |
| Total                interest expense        |   |                                             | **248** |   |   | **606** |   |   | **854** |   |
|                                         |   |                                             |    |   |   |   |   |   |   |   |
| Net                change in interest income |   | **$**                                            | **78**  |   | **$** | **(385** | **)** | **$** | **(307** | **)** |

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**LINCOLN      PARK BANCORP AND SUBSIDIARY**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF**

**FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

**Management      of Market Risk**

**General**

|   | · | We                  maintain moderate levels of short-term liquid assets. At December                  31,                  2006, our short-term liquid assets totaled $2.7 million; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We                  originate for portfolio adjustable-rate mortgage loans. At December                  31,                  2006, our adjustable-rate mortgage loans totaled $15.0                  million; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We                  attempt to increase the maturity of our liabilities as market conditions                  allow. In particular, in recent years, we have emphasized intermediate-                  to                  long-term FHLB advances as a source of funds. At December 31, 2006,                  we had                  $14.5 million of FHLB advances with terms to maturity of between                  one and                  ten years; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We                  invest in securities with step-up rate features providing for increased                  interest rates prior to maturity according to a pre-determined                  schedule                  and formula. However, these step-up rates may not keep pace with                  rising                  interest rates in the event of a rapidly rising rate environment.                  In                  addition, these investments may be called at the option of the                  issuer. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Net      Portfolio Value.**

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**LINCOLN      PARK BANCORP AND SUBSIDIARY**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF**

**FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

| **Change                  in**                                         |   | **Net                  Portfolio Value**    |       | **Net                  Portfolio Value as a Percentage of****Present                  Value of Assets** |   |
|------------------------------------------------------------------------|--------|---------------------------------------------|------------|---------------------------------------------------------------------------------------------------------|--------|
| **Interest                  Rates****(basis                  points)** |   | **Estimated****NPV**                        |       | **Amount                  of****Change**                                                                |   | **Percent                  of Change** |   | **NPV                  Ratio** |   | **Change                  in Basis Points** |   |
|                                                                   |   | **(Dollars                  in Thousands)** |       |
|                                                                   |   |                                        |       |                                                                                                    |   |   |   |   |   |   |   |
| +**200**                                                               |   | **$**                                       | **13,239** |                                                                                                    | **$**  | **(3,599** | **)** |   | **(21** | **)%** |   | **15.69** |   |   | **(288)                  basis points** |   |
| **0**                                                                  |   |                                        | **16,838** |                                                                                                    |   | — |   |   | — |   |   | **18.57** |   |   | —**basis points** |   |
| **-200**                                                               |   |                                        | **19,198** |                                                                                                    |   | **2,360** |   |   | **14** | **%** |   | **19.98** |   |   | **141                  basis points** |   |

**Liquidity      and Capital Resources**

----

**LINCOLN      PARK BANCORP AND SUBSIDIARY**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF**

**FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

**Liquidity      and Capital Resources (Continued)**

**Effect      of Inflation and Changing Prices**

----

REPORT        OF        INDEPENDENT        REGISTERED        PUBLIC        ACCOUNTING        FIRM

|                                                                                                      |   |   |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|--------|
| **/s/              Beard Miller Company LLP**                                                             |   |   |        |
|                                                                                                           |   |   |        |
| Beard                Miller Company LLPPine                Brook, New JerseyMarch                19, 2007 |   |   |   |

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***LINCOLN        PARK        BANCORP        AND        SUBSIDIARY***

----

**CONSOLIDATED        STATEMENTS        OF FINANCIAL        CONDITION**

|                                                                                                                                                   |   | **December 31,** |           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|----------------|
|                                                                                                                                                   |   | **2006**              |           | **2005** |   |
| **ASSETS**                                                                                                                                             |   |                  |           |   |   |
| Cash                  and amounts due from depository institutions                                                                                     |   | **$**                 | **1,228,459**  |   | $ | 1,627,946 |   |
| Interest-bearing                  deposits                                                                                                             |   |                  | **1,372,050**  |   |   | 688,232 |   |
|                                                                                                                                                   |   |                  |           |   |   |   |   |
| Cash                  and Cash Equivalents                                                                                                             |   |                  | **2,600,509**  |   |   | 2,316,178 |   |
|                                                                                                                                                   |   |                  |           |   |   |   |   |
| Term                  deposits                                                                                                                         |   |                  | **189,771**    |   |   | 580,629 |   |
| Securities                  available for sale                                                                                                         |   |                  | **2,573,628**  |   |   | 3,002,336 |   |
| Securities                  held to maturity (estimated fair value 2006 $17,890,013;                  2005 $18,320,241)                                |   |                  | **18,334,915** |   |   | 18,817,087 |   |
| Loans                  receivable, net of allowance for loan losses 2006 $136,000; 2005                  $158,500                                      |   |                  | **67,450,821** |   |   | 66,383,298 |   |
| Premises                  and equipment                                                                                                                |   |                  | **851,357**    |   |   | 883,848 |   |
| Federal                  Home Loan Bank of New York stock                                                                                              |   |                  | **1,121,400**  |   |   | 1,264,500 |   |
| Interest                  receivable                                                                                                                   |   |                  | **489,495**    |   |   | 448,172 |   |
| Other                                                                                                                                                  |   |                  | **358,258**    |   |   | 262,209 |   |
|                                                                                                                                                   |   |                  |           |   |   |   |   |
| **Total                  Assets**                                                                                                                      |   | **$**                 | **93,970,154** |   | $ | 93,958,257 |   |
|                                                                                                                                                   |   |                  |           |   |   |   |   |
| **LIABILITIES                    AND STOCKHOLDERS’                    EQUITY**                                                                   |   |                  |           |   |   |   |   |
|                                                                                                                                                   |   |                  |           |   |   |   |   |
| **LIABILITIES**                                                                                                                                        |   |                  |           |   |   |   |   |
| Deposits:                                                                                                                                              |   |                  |           |   |   |   |   |
| Non-interest                  bearing deposits                                                                                                         |   | **$**                 | **768,473**    |   | $ | 749,600 |   |
| Interest                  bearing deposits                                                                                                             |   |                  | **57,075,421** |   |   | 53,617,214 |   |
| Total                  Deposits                                                                                                                        |   |                  | **57,843,894** |   |   | 54,366,814 |   |
|                                                                                                                                                   |   |                  |           |   |   |   |   |
| Advances                  from Federal Home Loan Bank of New York                                                                                      |   |                  | **21,978,331** |   |   | 25,533,730 |   |
| Advance                  payments by borrowers for taxes and insurance                                                                                 |   |                  | **360,771**    |   |   | 364,785 |   |
| Other                                                                                                                                                  |   |                  | **542,848**    |   |   | 305,390 |   |
|                                                                                                                                                   |   |                  |           |   |   |   |   |
| **Total                  Liabilities**                                                                                                                 |   |                  | **80,725,844** |   |   | 80,570,719 |   |
|                                                                                                                                                   |   |                  |           |   |   |   |   |
| **STOCKHOLDERS’                  EQUITY**                                                                                                        |   |                  |           |   |   |   |   |
| Preferred                  stock; no par value; 1,000,000 shares authorized; none issued or                  outstanding                               |   |                  | **—**    |   |   | — |   |
| Common                  stock; $0.01 par value; 5,000,000 shares authorized; 1,851,500                  shares                  issued and outstanding |   |                  | **18,515**     |   |   | 18,515 |   |
| Paid-in                  capital                                                                                                                       |   |                  | **7,484,694**  |   |   | 7,776,418 |   |
| Retained                  earnings                                                                                                                     |   |                  | **6,252,608**  |   |   | 5,982,726 |   |
| Unearned                  ESOP shares                                                                                                                  |   |                  | **(346,861**   | **)** |   | (366,220 | ) |
| Accumulated                  other comprehensive loss                                                                                                  |   |                  | **(164,646**   | **)** |   | (23,901 | ) |
|                                                                                                                                                   |   |                  |           |   |   |   |   |
| **Total                  Stockholders’ Equity**                                                                                                  |   |                  | **13,244,310** |   |   | 13,387,538 |   |
|                                                                                                                                                   |   |                  |           |   |   |   |   |
| **Total                  Liabilities and Stockholders’ Equity**                                                                                  |   | **$**                 | **93,970,154** |   | $ | 93,958,257 |   |

*See      notes to consolidated financial      statements.*

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***LINCOLN      PARK      BANCORP      AND      SUBSIDIARY***

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**CONSOLIDATED        STATEMENTS        OF INCOME**

|                                                                                                                                                                      |   | **Years                  Ended December 31,** |          |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|---------------|
|                                                                                                                                                                      |   | **2006**                                           |          | **2005** |   |
| **INTEREST                  INCOME**                                                                                                                                      |   |                                               |          |   |   |
| Loans,                  including fees                                                                                                                                    |   | **$**                                              | **3,845,732** |   | $ | 3,330,933 |   |
| Securities                                                                                                                                                                |   |                                               | **1,062,363** |   |   | 1,039,959 |   |
| Other                  interest-earning assets                                                                                                                            |   |                                               | **56,937**    |   |   | 46,652 |   |
| **Total                  Interest Income**                                                                                                                                |   |                                               | **4,965,032** |   |   | 4,417,544 |   |
|                                                                                                                                                                      |   |                                               |          |   |   |   |   |
| **INTEREST                  EXPENSE**                                                                                                                                     |   |                                               |          |   |   |   |   |
| NOW                  and money market                                                                                                                                     |   |                                               | **261,640**   |   |   | 144,498 |   |
| Savings                  and club                                                                                                                                         |   |                                               | **148,062**   |   |   | 169,934 |   |
| Certificates                  of deposit                                                                                                                                  |   |                                               | **1,066,422** |   |   | 717,985 |   |
| Borrowings                                                                                                                                                                |   |                                               | **1,099,983** |   |   | 689,391 |   |
| **Total                  Interest Expense**                                                                                                                               |   |                                               | **2,576,107** |   |   | 1,721,808 |   |
|                                                                                                                                                                      |   |                                               |          |   |   |   |   |
| **Net                  Interest Income**                                                                                                                                  |   |                                               | **2,388,925** |   |   | 2,695,736 |   |
|                                                                                                                                                                      |   |                                               |          |   |   |   |   |
| **(RECOVERY                  OF) PROVISION                  FOR LOAN                  LOSSES**                                                                            |   |                                               | **(22,384**   | **)** |   | 6,017 |   |
|                                                                                                                                                                      |   |                                               |          |   |   |   |   |
| **Net                  Interest Income after (Recovery of) Provision for Loan                  Losses**                                                                   |   |                                               | **2,411,309** |   |   | 2,689,719 |   |
|                                                                                                                                                                      |   |                                               |          |   |   |   |   |
| **NON-INTEREST                  INCOME**                                                                                                                                  |   |                                               |          |   |   |   |   |
| Fees                  and service charges                                                                                                                                 |   |                                               | **88,451**    |   |   | 80,581 |   |
| Gain                  (loss) on calls of term deposits and securities held to                  maturity                                                                   |   |                                               | **500**       |   |   | (7,239 | ) |
| Gain                  on sales of securities available for sale                                                                                                           |   |                                               | **9,612**     |   |   | — |   |
| Other                                                                                                                                                                     |   |                                               | **35,513**    |   |   | 26,764 |   |
| **Total                  Non-Interest Income**                                                                                                                            |   |                                               | **134,076**   |   |   | 100,106 |   |
|                                                                                                                                                                      |   |                                               |          |   |   |   |   |
| **NON-INTEREST                  EXPENSES**                                                                                                                                |   |                                               |          |   |   |   |   |
| Salaries                  and employee benefits                                                                                                                           |   |                                               | **855,109**   |   |   | 775,706 |   |
| Occupancy                  expense of premises                                                                                                                            |   |                                               | **109,903**   |   |   | 125,445 |   |
| Equipment                                                                                                                                                                 |   |                                               | **247,474**   |   |   | 216,144 |   |
| Advertising                                                                                                                                                               |   |                                               | **45,340**    |   |   | 49,174 |   |
| Federal                  insurance premium                                                                                                                                |   |                                               | **6,973**     |   |   | 7,944 |   |
| Other                                                                                                                                                                     |   |                                               | **777,431**   |   |   | 668,581 |   |
| **Total                  Non-Interest Expenses**                                                                                                                          |   |                                               | **2,042,230** |   |   | 1,842,994 |   |
|                                                                                                                                                                      |   |                                               |          |   |   |   |   |
| **Income                  before Income Taxes**                                                                                                                           |   |                                               | **503,155**   |   |   | 946,831 |   |
|                                                                                                                                                                      |   |                                               |          |   |   |   |   |
| **INCOME                  TAXES**                                                                                                                                         |   |                                               | **189,163**   |   |   | 370,442 |   |
|                                                                                                                                                                      |   |                                               |          |   |   |   |   |
| **Net                  Income**                                                                                                                                           |   | **$**                                              | **313,992**   |   | $ | 576,389 |   |
| **NET                  INCOME                  PER SHARE                  - BASIC**                                                                                       |   | **$**                                              | **0.18**      |   | $ | 0.32 |   |
|                                                                                                                                                                      |   |                                               |          |   |   |   |   |
| **WEIGHTED                  AVERAGE                  NUMBER                  OF COMMON                  SHARES                  OUTSTANDING                  :****BASIC** |   |                                               | **1,792,115** |   |   | 1,818,426 |   |
| **NET                    INCOME                    PER COMMON                    SHARE:****DILUTED**                                                                      |   | **$**                                              | **0.17**      |   | $ | 0.32 |   |
| **WEIGHTED                    AVERAGE                    NUMBER                    OF COMMON                    SHARES                    OUTSTANDING:****DILUTED**       |   |                                               | **1,794,648** |   |   | 1,818,426 |   |

*See        notes to consolidated financial        statements.*

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***LINCOLN      PARK      BANCORP      AND      SUBSIDIARY***

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****CONSOLIDATED      STATEMENTS      OF CHANGES      IN STOCKHOLDERS’      EQUITY****

**Years      Ended December 31, 2006 and 2005**

|                                                                                                                                                                                         |   | **Common****Stock** |        | **Paid-in****Capital** |   | **Retained                  Earnings** |   | **Unearned                  ESOP****Shares** |          | **Accumulated                  Other Comprehensive Income (Loss)** |   | **Total**    |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|-------------|------------------------|--------|----------------------------------------|--------|----------------------------------------------|---------------|--------------------------------------------------------------------|--------|--------------|--------|
|                                                                                                                                                                                         |   |                |        |                   |   |                                   |   |                                         |          |                                                               |   |         |   |   |   |   |   |   |   |
| **BALANCE                  - DECEMBER                  31, 2004**                                                                                                                            |   | $                   | 18,515      |                   | $      | 7,783,602                              |   | $                                            | 5,409,484     |                                                               | $      | (385,580     | )      | $ | 1,350 |   | $ | 12,827,371 |   |
|                                                                                                                                                                                         |   |                |        |                   |   |                                   |   |                                         |          |                                                               |   |         |   |   |   |   |   |   |   |
| Comprehensive                  income:                                                                                                                                                       |   |                |        |                   |   |                                   |   |                                         |          |                                                               |   |         |   |   |   |   |   |   |   |
| Net                  income                                                                                                                                                                  |   |                | —     |                   |   | —                                |   |                                         | 576,389       |                                                               |   | —      |   |   | — |   |   | 576,389 |   |
| Other                  comprehensive loss:Unrealized                  holding loss onsecurities                  available for sale, net ofdeferred                  income taxes of $16,891 |   |                | —     |                   |   | —                                |   |                                         | —       |                                                               |   | —      |   |   | (25,251 | ) |   | (25,251 | ) |
|                                                                                                                                                                                         |   |                |        |                   |   |                                   |   |                                         |          |                                                               |   |         |   |   |   |   |   |   |   |
| **Total                  Comprehensive Income**                                                                                                                                              |   |                |        |                   |   |                                   |   |                                         |          |                                                               |   |         |   |   |   |   |   | 551,138 |   |
|                                                                                                                                                                                         |   |                |        |                   |   |                                   |   |                                         |          |                                                               |   |         |   |   |   |   |   |   |   |
| Restricted                  stock earned                                                                                                                                                     |   |                | —     |                   |   | 841                                    |   |                                         | —       |                                                               |   | —      |   |   | — |   |   | 841 |   |
| Additional                  cost of initial public stock offering                                                                                                                            |   |                | —     |                   |   | (8,025                                 | )      |                                         | —       |                                                               |   | —      |   |   | — |   |   | (8,025 | ) |
| ESOP                  shares committed to be released                                                                                                                                        |   |                | —     |                   |   | —                                |   |                                         | (3,147        | )                                                                  |   | 19,360       |   |   | — |   |   | 16,213 |   |
|                                                                                                                                                                                         |   |                |        |                   |   |                                   |   |                                         |          |                                                               |   |         |   |   |   |   |   |   |   |
| **BALANCE                  - DECEMBER                  31, 2005**                                                                                                                            |   |                | 18,515      |                   |   | 7,776,418                              |   |                                         | 5,982,726     |                                                               |   | (366,220     | )      |   | (23,901 | ) |   | 13,387,538 |   |
|                                                                                                                                                                                         |   |                |        |                   |   |                                   |   |                                         |          |                                                               |   |         |   |   |   |   |   |   |   |
| Comprehensive                  income:                                                                                                                                                       |   |                | **—** |                   |   | **—**                            |   |                                         | **—**   |                                                               |   | **—**  |   |   | **—** |   |   | **—** |   |
| Net                  income                                                                                                                                                                  |   |                | **—** |                   |   | **—**                            |   |                                         | **313,992**   |                                                               |   | **—**  |   |   | **—** |   |   | **313,992** |   |
| Other                  comprehensive income:                                                                                                                                                 |   |                |        |                   |   |                                   |   |                                         |          |                                                               |   |         |   |   |   |   |   |   |   |
| Realized                  gain on sale of securitiesavailable                  for sale, net of deferredincome                  taxes of $3,851.                                             |   |                | **—** |                   |   | **—**                            |   |                                         | **—**   |                                                               |   | **—**  |   |   | **(5,761** | **)** |   |   |   |
| Unrealized                  holding gain on securitiesavailable                  for sale, net of deferred income                  taxes of $15,440.                                         |   |                | **—** |                   |   | **—**                            |   |                                         | **—**   |                                                               |   | **—**  |   |   | **23,102** |   |   | **17,341** |   |
|                                                                                                                                                                                         |   |                |        |                   |   |                                   |   |                                         |          |                                                               |   |         |   |   |   |   |   |   |   |
| **Total                  Comprehensive Income**                                                                                                                                              |   |                |        |                   |   |                                   |   |                                         |          |                                                               |   |         |   |   |   |   |   | **331,333** |   |
| Adjustment                  to initially apply FASB No.158,                  net of deferred income taxes of $105,390                                                                        |   |                | **—** |                   |   | **—**                            |   |                                         | **—**   |                                                               |   | **—**  |   |   | **(158,086** | **)** |   | **(158,086** | **)** |
| Purchase                  of restricted stock                                                                                                                                                |   |                | **—** |                   |   | **(355,778**                           | **)**  |                                         | **—**   |                                                               |   | **—**  |   |   | **—** |   |   | **(355,778** | **)** |
| Restricted                  stock earned                                                                                                                                                     |   |                | **—** |                   |   | **30,095**                             |   |                                         | **—**   |                                                               |   | **—**  |   |   | **—** |   |   | **30,095** |   |
| Stock                  options                                                                                                                                                               |   |                | **—** |                   |   | **33,959**                             |   |                                         | **—**   |                                                               |   | **—**  |   |   | **—** |   |   | **33,959** |   |
| Dividends                  paid                                                                                                                                                              |   |                | **—** |                   |   | **—**                            |   |                                         | **(40,882**   | **)**                                                              |   | **—**  |   |   | **—** |   |   | **(40,882** | **)** |
| ESOP                  shares committed to be released                                                                                                                                        |   |                | **—** |                   |   | **—**                            |   |                                         | **(3,228**    | **)**                                                              |   | **19,359**   |   |   | **—** |   |   | **16,131** |   |
|                                                                                                                                                                                         |   |                |        |                   |   |                                   |   |                                         |          |                                                               |   |         |   |   |   |   |   |   |   |
| **BALANCE                  - DECEMBER                  31, 2006**                                                                                                                            |   | **$**               | **18,515**  |                   | **$**  | **7,484,694**                          |   | **$**                                        | **6,252,608** |                                                               | **$**  | **(346,861** | **)**  | **$** | **(164,646** | **)** | **$** | **13,244,310** |   |

*See        notes to consolidated financial        statements.*

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***LINCOLN      PARK      BANCORP      AND      SUBSIDIARY***

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**CONSOLIDATED      STATEMENTS      OF CASH      FLOWS**

|                                                                                                                |   | **Years                  Ended December 31,** |            |
|---------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|-----------------|
|                                                                                                                |   | **2006**                                           |            | **2005** |   |
| **CASH                  FLOWS                  FROM OPERATING                  ACTIVITIES**                         |   |                                               |            |   |   |
| Net                  income                                                                                         |   | **$**                                              | **313,992**     |   | $ | 576,389 |   |
| Adjustments                  to reconcile net income to net cash provided by operating                  activities: |   |                                               |            |   |   |   |   |
| Depreciation                  of premises and equipment                                                             |   |                                               | **67,693**      |   |   | 64,335 |   |
| Amortization                  and accretion, net                                                                    |   |                                               | **33,551**      |   |   | 45,873 |   |
| Gain                  on sale of securities available for sale                                                      |   |                                               | **(9,612**      | **)** |   | — |   |
| (Gain)                  loss on calls of term deposits and securities held to                  maturity             |   |                                               | **(500**        | **)** |   | 7,239 |   |
| (Recovery                  of) provision for loan losses                                                            |   |                                               | **(22,384**     | **)** |   | 6,017 |   |
| Increase                  in interest receivable                                                                    |   |                                               | **(41,323**     | **)** |   | (51,139 | ) |
| Increase                  in other assets                                                                           |   |                                               | **4,876**       |   |   | (166,515 | ) |
| Increase                  in accrued interest payable                                                               |   |                                               | **15,600**      |   |   | 25,008 |   |
| Deferred                  income taxes                                                                              |   |                                               | **(25,728**     | **)** |   | (3,951 | ) |
| Increase                  in other liabilities                                                                      |   |                                               | **(15,753**     | **)** |   | 131,931 |   |
| ESOP                  shares committed to be released                                                               |   |                                               | **16,131**      |   |   | 16,213 |   |
| Restricted                  stock earned                                                                            |   |                                               | **30,095**      |   |   | 841 |   |
| Stock                  options                                                                                      |   |                                               | **33,959**      |   |   | — |   |
|                                                                                                                |   |                                               |            |   |   |   |   |
| **Net                  Cash Provided by Operating Activities**                                                      |   |                                               | **400,597**     |   |   | 652,241 |   |
|                                                                                                                |   |                                               |            |   |   |   |   |
| **CASH                  FLOWS                  FROM INVESTING                  ACTIVITIES**                         |   |                                               |            |   |   |   |   |
| Purchases                  of term deposits                                                                         |   |                                               | —         |   |   | (495,000 | ) |
| Proceeds                  from maturities and calls of term deposits                                                |   |                                               | **396,000**     |   |   | **—** |   |
| Purchases                  of securities available for sale                                                         |   |                                               | **(87,418**     | **)** |   | (78,457 | ) |
| Proceeds                  from maturities and calls of securities available for sale                                |   |                                               | **500,000**     |   |   | 1,300,000 |   |
| Principal                  repayments on securities available for sale                                              |   |                                               | **29,611**      |   |   | 45,969 |   |
| Proceeds                  from sales of securities available for sale                                               |   |                                               | **24,298**      |   |   | **—** |   |
| Purchases                  of securities held to maturity                                                           |   |                                               | **(1,000,000**  | **)** |   | (3,960,000 | ) |
| Proceeds                  from maturities and calls of securities held to maturity                                  |   |                                               | **1,210,500**   |   |   | 1,785,000 |   |
| Principal                  repayments on securities held to maturity                                                |   |                                               | **271,796**     |   |   | 392,359 |   |
| Net                  increase in loans receivable                                                                   |   |                                               | **(1,082,697**  | **)** |   | (9,279,812 | ) |
| Additions                  to premises and equipment                                                                |   |                                               | **(35,202**     | **)** |   | (28,252 | ) |
| Purchase                  of Federal Home Loan Bank of New York stock                                               |   |                                               | **(367,050**    | **)** |   | (629,600 | ) |
| Redemption                  of Federal Home Loan Bank of New York stock                                             |   |                                               | **510,150**     |   |   | 172,300 |   |
|                                                                                                                |   |                                               |            |   |   |   |   |
| **Net                  Cash Provided by (Used in) Investing Activities**                                            |   |                                               | **369,988**     |   |   | (10,775,493 | ) |
|                                                                                                                |   |                                               |            |   |   |   |   |
| **CASH                  FLOWS                  FROM FINANCING                  ACTIVITIES**                         |   |                                               |            |   |   |   |   |
| Net                  increase (decrease) in deposits                                                                |   |                                               | **3,469,819**   |   |   | (2,850,389 | ) |
| Proceeds                  of advances from the Federal Home Loan Bank of New York                                   |   |                                               | **87,900,000**  |   |   | 35,375,000 |   |
| Repayments                  of advances from the Federal Home Loan Bank of New York                                 |   |                                               | **(91,455,399** | **)** |   | (25,984,468 | ) |
| (Decrease)                  increase in advance payments by borrowers for taxes and                  insurance      |   |                                               | **(4,014**      | **)** |   | 9,024 |   |
| Additional                  cost of initial public stock offering                                                   |   |                                               | **—**     |   |   | (8,025 | ) |
| Dividends                  paid                                                                                     |   |                                               | **(40,882**     | **)** |   | — |   |
| Purchase                  of restricted stock                                                                       |   |                                               | **(355,778**    | **)** |   | — |   |
|                                                                                                                |   |                                               |            |   |   |   |   |
| **Net                  Cash (Used in) Provided by Financing Activities**                                            |   |                                               | **(486,254**    | **)** |   | 6,541,142 |   |
|                                                                                                                |   |                                               |            |   |   |   |   |
| **Net                  Increase (Decrease) in Cash and Cash Equivalents**                                           |   |                                               | **284,331**     |   |   | (3,582,110 | ) |
|                                                                                                                |   |                                               |            |   |   |   |   |
| **CASH                  AND CASH                  EQUIVALENTS                  - BEGINNING**                        |   |                                               | **2,316,178**   |   |   | 5,898,288 |   |
|                                                                                                                |   |                                               |            |   |   |   |   |
| **CASH                  AND CASH                  EQUIVALENTS                  - ENDING**                           |   | **$**                                              | **2,600,509**   |   | $ | 2,316,178 |   |
|                                                                                                                |   |                                               |            |   |   |   |   |
| **SUPPLEMENTARY                  CASH                  FLOWS                  INFORMATION**                         |   |                                               |            |   |   |   |   |
| Income                  taxes paid                                                                                  |   | **$**                                              | **483,797**     |   | $ | 263,741 |   |
|                                                                                                                |   |                                               |            |   |   |   |   |
| Interest                  paid                                                                                      |   | **$**                                              | **2,560,487**   |   | $ | 1,696,800 |   |

*See        notes to consolidated financial        statements.*

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***LINCOLN      PARK      BANCORP      AND      SUBSIDIARY***

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**NOTES        TO CONSOLIDATED        FINANCIAL        STATEMENTS**

**NOTE        1 –        SUMMARY        OF SIGNIFICANT        ACCOUNTING        POLICIES**

**Business**

**Basis      of Consolidated Financial Statement Presentation**

**Cash      and Cash Equivalents**

**Securities      Available for Sale and Held to Maturity**

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***LINCOLN        PARK        BANCORPAND        SUBSIDIARY***

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**NOTES          TO CONSOLIDATED          FINANCIAL          STATEMENTS**

**NOTE          1 – SUMMARY          OF SIGNIFICANT          ACCOUNTING          POLICIES          **
**(**CONTINUED**)**

**Loans      Receivable**

**Allowance      for Loan Losses**

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***LINCOLN          PARK          BANCORPAND          SUBSIDIARY***

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**NOTES            TO CONSOLIDATED            FINANCIAL            STATEMENTS**

**NOTE            1 – SUMMARY            OF SIGNIFICANT            ACCOUNTING            POLICIES            **
**(**CONTINUED**)**

**Allowance      for Loan Losses (Continued)**

**Concentration      of Risk**

**Premises      and Equipment**

|                                             |   | **Years**                            |
|--------------------------------------------------|--------|--------------------------------------|
| Building                                         |   | 30                - 50               |
| Building                improvements             |   | 5                -                25 |
| Furniture,                fixtures and equipment |   | 3                -                7  |

**Interest-Rate      Risk**

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***LINCOLN          PARK          BANCORPAND          SUBSIDIARY***

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**NOTES            TO CONSOLIDATED            FINANCIAL            STATEMENTS**

**NOTE            1 – SUMMARY            OF SIGNIFICANT            ACCOUNTING            POLICIES            **
**(**CONTINUED**)**

**Income      Taxes**

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***LINCOLN        PARK        BANCORPAND        SUBSIDIARY***

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**NOTES          TO CONSOLIDATED          FINANCIAL          STATEMENTS**

**NOTE          1 – SUMMARY          OF SIGNIFICANT          ACCOUNTING          POLICIES          **
**(**CONTINUED**)**

**Stock-Based      Compensation Plans**

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***LINCOLN          PARK          BANCORPAND          SUBSIDIARY***

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**NOTES            TO CONSOLIDATED            FINANCIAL            STATEMENTS**

**NOTE            1 – SUMMARY            OF SIGNIFICANT            ACCOUNTING            POLICIES            **
**(**CONTINUED**)**

| ** **                                                                                                                                                                                                                                                                 | ** ** | **Year                  Ended****December                  31, 2005** |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-----------------------------------------------------------------------|---------|
| Net                  income as reported                                                                                                                                                                                                                                    |       | $                                                                     | 576,389 |   |
| Total                  stock-based compensation expense, net of income taxes, included                  in                  reported net income                                                                                                                            |       |                                                                  | 841     |   |
| Total                  stock-based compensation expense, net of income taxes, that would                  have                  been included in the determination of net income if the fair value                  method                  had been applied to all grants |       |                                                                  | (1,651  | ) |
| **Pro                  Forma Net Income**                                                                                                                                                                                                                                  |       | $                                                                     | 575,579 |   |
| Net                  income per common share, as reported:                                                                                                                                                                                                                 |       |                                                                  |    |   |
| Basic                                                                                                                                                                                                                                                                      |       | $                                                                     | 0.32    |   |
| Diluted                                                                                                                                                                                                                                                                    |       |                                                                  | 0.32    |   |
|                                                                                                                                                                                                                                                                       |       |                                                                  |    |   |
| Pro                  forma net income per common share:                                                                                                                                                                                                                    |       |                                                                  |    |   |
| Basic                                                                                                                                                                                                                                                                      |       | $                                                                     | 0.32    |   |
| Diluted                                                                                                                                                                                                                                                                    |       |                                                                  | 0.32    |   |

**Other      Comprehensive Income**

**Off-Balance      Sheet Financial Instruments**

**Net      Income per Common Share**

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***LINCOLN          PARK          BANCORPAND          SUBSIDIARY***

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**NOTES            TO CONSOLIDATED            FINANCIAL            STATEMENTS**

**NOTE            1 – SUMMARY            OF SIGNIFICANT            ACCOUNTING            POLICIES            **
**(**CONTINUED**)**

| ** **                                                           | ** ** | Years                Ended December 31, | ** **    |
|----------------------------------------------------------------------|------------|-----------------------------------------|---------------|
| ** **                                                           | ** ** | **2006**                                | ** **    | 2005 |   |
|                                                                 |       |                                    |          |   |   |
| Net                Income                                            |       | **$**                              | **313,992**   |   | $ | 576,389 |   |
|                                                                 |       |                                    |          |   |   |   |   |
| Basic                weighted average shares outstanding             |       |                                    | **1,792,115** |   |   | 1,818,426 |   |
| Plus:                Common stock equivalents                        |       |                                    | **2,533**     |   |   | — |   |
| Diluted                weighted average number of shares outstanding |       |                                    | **1,794,648** |   |   | 1,818,426 |   |
|                                                                 |       |                                    |          |   |   |   |   |
| Earnings                per share:                                   |       |                                    |          |   |   |   |   |
| Basic                                                                |       | **$**                                   | **0.18**      |   | $ | 0.32 |   |
| Diluted                                                              |       | **$**                                   | **0.17**      |   | $ | 0.32 |   |

**NOTE      2 – TERM      DEPOSITS**

|                                              |   | **December 31,** |        |
|---------------------------------------------------|--------|-----------------------|-------------|
|                                              |   | **2006**              |        | 2005 |   |
| Due                  within one year              |   | **$**                 | **99,000**  |   | $ | 396,000 |   |
| Due                  after one through five years |   |                  | **90,771**  |   |   | 184,629 |   |
|                                              |   |                  |        |   |   |   |   |
|                                              |   | **$**                 | **189,771** |   | $ | 580,629 |   |

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***LINCOLN      PARK      BANCORPAND      SUBSIDIARY***

----

**NOTES          TO CONSOLIDATED          FINANCIAL          STATEMENTS**

**NOTE      3 – SECURITIES      AVAILABLE      FOR SALE**

|                                              |   | **December 31,                  2006** |          |
|---------------------------------------------------|--------|---------------------------------------------|---------------|
|                                              |   | **Amortized****Cost**                       |          | **Gross****Unrealized****Gains** |   | **Gross****Unrealized****Losses** |   | **Carrying****Value** |   |
| U.S.                  Government Agencies:        |   |                                        |          |   |   |   |   |   |   |
| Due                  after one through five years |   | **$**                                       | **500,000**   |   | **$** | **—** |   | **$** | **5,000** |   | **$** | **495,000** |   |
| Due                  after five through ten years |   |                                        | **500,000**   |   |   | **—** |   |   | **15,000** |   |   | **485,000** |   |
| Due                  after ten years              |   |                                        | **1,000,000** |   |   | **—** |   |   | **18,000** |   |   | **982,000** |   |
|                                              |   |                                        | **2,000,000** |   |   | **—** |   |   | **38,000** |   |   | **1,962,000** |   |
|                                              |   |                                        |          |   |   |   |   |   |   |   |   |   |   |
|                                              |   |                                        |          |   |   |   |   |   |   |   |   |   |   |
| Equity                  securities                |   |                                        | **151,189**   |   |   | **30,157** |   |   | **619** |   |   | **180,727** |   |
|                                              |   |                                        |          |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed                  securities:      |   |                                        |          |   |   |   |   |   |   |   |   |   |   |
| Due                  after ten years              |   |                                        | **82,730**    |   |   | **900** |   |   | **—** |   |   | **83,630** |   |
|                                              |   |                                        |          |   |   |   |   |   |   |   |   |   |   |
| Municipal                  bonds:                 |   |                                        |          |   |   |   |   |   |   |   |   |   |   |
| Due                  after one through five years |   |                                        | **250,671**   |   |   | **—** |   |   | **920** |   |   | **249,751** |   |
| Due                  after five through ten years |   |                                        | **100,000**   |   |   | **—** |   |   | **2,480** |   |   | **97,520** |   |
|                                              |   |                                        | **350,671**   |   |   | **—** |   |   | **3,400** |   |   | **347,271** |   |
|                                              |   |                                        |          |   |   |   |   |   |   |   |   |   |   |
|                                              |   | **$**                                       | **2,584,590** |   | **$** | **31,057** |   | **$** | **42,019** |   | **$** | **2,573,628** |   |

|                                              |   | **December 31,                  2005** |      |
|---------------------------------------------------|--------|---------------------------------------------|-----------|
|                                              |   | **Amortized****Cost**                       |      | **Gross****Unrealized****Gains** |   | **Gross****Unrealized****Losses** |   | **Carrying**** Value** |   |
| U.S.                  Government Agencies:        |   |                                        |      |   |   |   |   |   |   |
| Due                  after one through five years |   | $                                           | 500,000   |   | $ | — |   | $ | 8,435 |   | $ | 491,565 |   |
| Due                  after five through ten years |   |                                        | 1,000,000 |   |   | 105 |   |   | 17,030 |   |   | 983,075 |   |
| Due                  after ten years              |   |                                        | 1,000,000 |   |   | — |   |   | 16,400 |   |   | 983,600 |   |
|                                              |   |                                        |      |   |   |   |   |   |   |   |   |   |   |
|                                              |   |                                        | 2,500,000 |   |   | 105 |   |   | 41,865 |   |   | 2,458,240 |   |
|                                              |   |                                        |      |   |   |   |   |   |   |   |   |   |   |
| Equity                  securities                |   |                                        | 78,457    |   |   | 7,211 |   |   | 5,187 |   |   | 80,481 |   |
|                                              |   |                                        |      |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed                  securities:      |   |                                        |      |   |   |   |   |   |   |   |   |   |   |
| Due                  after ten years              |   |                                        | 112,978   |   |   | 1,456 |   |   | 333 |   |   | 114,101 |   |
|                                              |   |                                        |      |   |   |   |   |   |   |   |   |   |   |
| Municipal                  bonds:                 |   |                                        |      |   |   |   |   |   |   |   |   |   |   |
| Due                  after five through ten years |   |                                        | 350,793   |   |   | 633 |   |   | 1,912 |   |   | 349,514 |   |
|                                              |   |                                        |      |   |   |   |   |   |   |   |   |   |   |
|                                              |   | $                                           | 3,042,228 |   | $ | 9,405 |   | $ | 49,297 |   | $ | 3,002,336 |   |

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***LINCOLN      PARK      BANCORPAND      SUBSIDIARY***

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**NOTES        TO CONSOLIDATED        FINANCIAL        STATEMENTS**

**NOTE      3 –      SECURITIES      AVAILABLE      FOR SALE      **
**(**CONTINUED**)**

|                                        |   | **Less                  than 12 Months** |        | **More                  than 12 Months** |   | **Total**         |   |
|---------------------------------------------|--------|------------------------------------------|-------------|------------------------------------------|--------|-------------------|--------|
|                                        |   | **Fair****Value**                        |        | **Unrealized****Losses**                 |   | **Fair****Value** |   | **Unrealized**** Losses** |   | **Fair****Value** |   | **Unrealized**** Losses** |   |
| **December                  31, 2006:**     |   |                                     |        |                                     |   |              |   |   |   |   |   |   |   |
| U.S.                  Government Agencies   |   | **$**                                    | **—** |                                     | **$**  | **—**       |   | **$** | **1,962,025** |   | **$** | **38,000** |   | **$** | **1,962,025** |   | **$** | **38,000** |   |
| Equity                  securities          |   |                                     | **—** |                                     |   | **—**       |   |   | **9,112** |   |   | **619** |   |   | **9,112** |   |   | **619** |   |
| Mortgage-backed                  Securities |   |                                     | **—** |                                     |   | **—**       |   |   | **—** |   |   | **—** |   |   | **—** |   |   | **—** |   |
| Municipal                  bonds            |   |                                     | **249,748** |                                     |   | **920**           |   |   | **97,515** |   |   | **2,480** |   |   | **347,263** |   |   | **3,400** |   |
|                                        |   |                                     |        |                                     |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   | **$**                                    | **249,748** |                                     | **$**  | **920**           |   | **$** | **2,068,652** |   | **$** | **41,099** |   | **$** | **2,318,400** |   | **$** | **42,019** |   |
| **December                  31, 2005:**     |   |                                     |        |                                     |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.                  Government Agencies   |   | $                                        | 482,970     |                                     | $      | 17,030            |   | $ | 1,475,165 |   | $ | 24,835 |   | $ | 1,958,135 |   | $ | 41,865 |   |
| Equity                  securities          |   |                                     | 48,655      |                                     |   | 5,187             |   |   | — |   |   | — |   |   | 48,655 |   |   | 5,187 |   |
| Mortgage-backed                  Securities |   |                                     | —     |                                     |   | —           |   |   | 37,184 |   |   | 333 |   |   | 37,184 |   |   | 333 |   |
| Municipal                  bonds            |   |                                     | —     |                                     |   | —           |   |   | 98,088 |   |   | 1,912 |   |   | 98,088 |   |   | 1,912 |   |
|                                        |   |                                     |        |                                     |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   | $                                        | 531,625     |                                     | $      | 22,217            |   | $ | 1,610,437 |   | $ | 27,080 |   | $ | 2,142,062 |   | $ | 49,297 |   |

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***LINCOLN      PARK      BANCORPAND      SUBSIDIARY***

----

**NOTES        TO CONSOLIDATED        FINANCIAL        STATEMENTS**

**NOTE        4 – SECURITIES        HELD        TO MATURITY**

|                                                    |   | **December 31,                  2006** |           |
|---------------------------------------------------------|--------|---------------------------------------------|----------------|
|                                                    |   | **Carrying****Value**                       |           | **Gross****Unrealized****Gains** |   | **Gross****Unrealized****Losses** |   | **Estimated                  Fair****Value** |   |
| U.S.                  Government Agencies:              |   |                                        |           |   |   |   |   |   |   |
| Due                  after one through five years       |   | **$**                                       | **500,000**    |   | **$** | **—** |   | **$** | **8,505** |   | **$** | **491,495** |   |
| Due                  after five years through ten years |   |                                        | **4,350,000**  |   |   | **—** |   |   | **79,492** |   |   | **4,270,508** |   |
| Due                  after ten years                    |   |                                        | **10,782,757** |   |   | **2,544** |   |   | **308,050** |   |   | **10,477,251** |   |
|                                                    |   |                                        |           |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |                                        | **15,632,757** |   |   | **2,544** |   |   | **396,047** |   |   | **15,239,254** |   |
|                                                    |   |                                        |           |   |   |   |   |   |   |   |   |   |   |
| Corporate                  bonds:                       |   |                                        |           |   |   |   |   |   |   |   |   |   |   |
| Due                  within one year                    |   |                                        | **100,000**    |   |   | **—** |   |   | **22** |   |   | **99,978** |   |
| Due                  after one year through five years  |   |                                        | **354,923**    |   |   | **1,793** |   |   | **13,150** |   |   | **343,566** |   |
| Due                  after five years through ten years |   |                                        | **200,000**    |   |   | **—** |   |   | **14,000** |   |   | **186,000** |   |
| Due                  after ten years                    |   |                                        | **500,000**    |   |   | **—** |   |   | **13,653** |   |   | **486,347** |   |
|                                                    |   |                                        |           |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |                                        | **1,154,923**  |   |   | **1,793** |   |   | **40,825** |   |   | **1,115,891** |   |
|                                                    |   |                                        |           |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed                  securities:            |   |                                        |           |   |   |   |   |   |   |   |   |   |   |
| Due                  within one year                    |   |                                        | **149**        |   |   | **4** |   |   | **—** |   |   | **153** |   |
| Due                  after one year through five years  |   |                                        | **2,244**      |   |   | **47** |   |   | **—** |   |   | **2,291** |   |
| Due                  after five through ten years       |   |                                        | **4,592**      |   |   | **132** |   |   | **—** |   |   | **4,724** |   |
| Due                  after ten years                    |   |                                        | **974,520**    |   |   | **5,854** |   |   | **21,258** |   |   | **959,116** |   |
|                                                    |   |                                        |           |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |                                        | **981,505**    |   |   | **6,037** |   |   | **21,258** |   |   | **966,284** |   |
|                                                    |   |                                        |           |   |   |   |   |   |   |   |   |   |   |
| Municipal                  bonds:                       |   |                                        |           |   |   |   |   |   |   |   |   |   |   |
| Due                  after ten years                    |   |                                        | **565,730**    |   |   | **6,003** |   |   | **3,149** |   |   | **568,584** |   |
|                                                    |   |                                        |           |   |   |   |   |   |   |   |   |   |   |
|                                                    |   | **$**                                       | **18,334,915** |   | **$** | **16,377** |   | **$** | **461,279** |   | **$** | **17,890,013** |   |

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***LINCOLN        PARK        BANCORPAND        SUBSIDIARY***

----

**NOTES          TO CONSOLIDATED          FINANCIAL          STATEMENTS**

**NOTE          4 – SECURITIES          HELD          TO MATURITY          (**CONTINUED**)**

|                                                    |   | **December 31,                  2005** |       |
|---------------------------------------------------------|--------|---------------------------------------------|------------|
|                                                    |   | **Carrying**** Value**                 |       | **Gross****Unrealized****Gains** |   | **Gross****Unrealized****Losses** |   | **Estimated                  Fair****Value** |   |
| U.S.                  Government Agencies:              |   |                                        |       |   |   |   |   |   |   |
| Due                  after five years through ten years |   | $                                           | 4,850,000  |   | $ | — |   | $ | 101,034 |   | $ | 4,748,966 |   |
| Due                  after ten years                    |   |                                        | 10,281,831 |   |   | 4,225 |   |   | 293,853 |   |   | 9,992,203 |   |
|                                                    |   |                                        |       |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |                                        | 15,131,831 |   |   | 4,225 |   |   | 394,887 |   |   | 14,741,169 |   |
|                                                    |   |                                        |       |   |   |   |   |   |   |   |   |   |   |
| Corporate                  bonds:                       |   |                                        |       |   |   |   |   |   |   |   |   |   |   |
| Due                  within one year                    |   |                                        | 185,000    |   |   | 847 |   |   | — |   |   | 185,847 |   |
| Due                  after one year through five years  |   |                                        | 198,889    |   |   | 4,348 |   |   | — |   |   | 203,236 |   |
| Due                  after five years through ten years |   |                                        | 956,851    |   |   | — |   |   | 93,276 |   |   | 863,575 |   |
| Due                  after ten years                    |   |                                        | 500,000    |   |   | — |   |   | 13,311 |   |   | 486,690 |   |
|                                                    |   |                                        |       |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |                                        | 1,840,740  |   |   | 5,195 |   |   | 106,587 |   |   | 1,739,348 |   |
|                                                    |   |                                        |       |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed                  securities:            |   |                                        |       |   |   |   |   |   |   |   |   |   |   |
| Due                  after one year through five years  |   |                                        | 5,482      |   |   | 226 |   |   | — |   |   | 5,708 |   |
| Due                  after ten years                    |   |                                        | 1,248,259  |   |   | 12,460 |   |   | 24,562 |   |   | 1,236,157 |   |
|                                                    |   |                                        |       |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |                                        | 1,253,741  |   |   | 12,686 |   |   | 24,562 |   |   | 1,241,865 |   |
|                                                    |   |                                        |       |   |   |   |   |   |   |   |   |   |   |
| Municipal                  bonds:                       |   |                                        |       |   |   |   |   |   |   |   |   |   |   |
| Due                  after ten years                    |   |                                        | 590,775    |   |   | 9,670 |   |   | 2,586 |   |   | 597,859 |   |
|                                                    |   |                                        |       |   |   |   |   |   |   |   |   |   |   |
|                                                    |   | $                                           | 18,817,087 |   | $ | 31,776 |   | $ | 528,622 |   | $ | 18,320,241 |   |

----

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***LINCOLN        PARK        BANCORPAND        SUBSIDIARY***

----

**NOTES        TO CONSOLIDATED        FINANCIAL        STATEMENTS**

**NOTE        4 –        SECURITIES        HELD        TO MATURITY        (CONTINUED)**

|                                        |   | **Less                  than 12 Months** |          | **More                  than 12 Months** |   | **Total**         |   |
|---------------------------------------------|--------|------------------------------------------|---------------|------------------------------------------|--------|-------------------|--------|
|                                        |   | **Fair****Value**                        |          | **Unrealized**** Losses**           |   | **Fair****Value** |   | **Unrealized**** Losses** |   | **Fair****Value** |   | **Unrealized**** Losses** |   |
| **December                  31, 2006:**     |   |                                     |          |                                     |   |              |   |   |   |   |   |   |   |
| U.S.                  Government Agencies   |   | **$**                                    | **990,310**   |                                     | **$**  | **9,690**         |   | **$** | **14,011,309** |   | **$** | **386,357** |   | **$** | **15,001,619** |   | **$** | **396,047** |   |
| Corporate                  bonds            |   |                                     | **99,978**    |                                     |   | **22**            |   |   | **914,848** |   |   | **40,803** |   |   | **1,014,826** |   |   | **40,825** |   |
| Mortgage-backed                  securities |   |                                     | **—**   |                                     |   | **—**       |   |   | **408,650** |   |   | **21,258** |   |   | **408,650** |   |   | **21,258** |   |
| Municipal                  bonds            |   |                                     | **—**   |                                     |   | **—**       |   |   | **96,851** |   |   | **3,149** |   |   | **96,851** |   |   | **3,149** |   |
|                                        |   |                                     |          |                                     |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   | **$**                                    | **1,090,288** |                                     | **$**  | **9,712**         |   | **$** | **15,431,658** |   | **$** | **451,567** |   | **$** | **16,521,946** |   | **$** | **461,279** |   |
| **December                  31, 2005:**     |   |                                     |          |                                     |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.                  Government Agencies   |   | $                                        | 4,278,174     |                                     | $      | 81,826            |   | $ | 10,224,645 |   | $ | 313,061 |   | $ | 14,502,819 |   | $ | 394,887 |   |
| Corporate                  bonds            |   |                                     | **—**   |                                     |   | **—**       |   |   | 1,350,264 |   |   | 106,587 |   |   | 1,350,265 |   |   | 106,587 |   |
| Mortgage-backed                  securities |   |                                     | 534,496       |                                     |   | 24,562            |   |   | **—** |   |   | **—** |   |   | 534,496 |   |   | 24,562 |   |
| Municipal                  bonds            |   |                                     | **—**   |                                     |   | **—**       |   |   | 97,414 |   |   | 2,586 |   |   | 97,414 |   |   | 2,586 |   |
|                                        |   |                                     |          |                                     |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   | $                                        | 4,812,670     |                                     | $      | 106,388           |   | $ | 11,672,323 |   | $ | 422,234 |   | $ | 16,484,994 |   | $ | 528,622 |   |

----

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***LINCOLN        PARK        BANCORPAND        SUBSIDIARY***

----

**NOTES        TO CONSOLIDATED        FINANCIAL        STATEMENTS**

**NOTE        5 – **L**OANS        RECEIVABLE**

|                                        |   | **December 31,** |           |
|---------------------------------------------|--------|-----------------------|----------------|
|                                        |   | **2006**              |           | **2005** |   |
| Real                  estate mortgage:      |   |                  |           |   |   |
| One-to-four                  family         |   | **$**                 | **43,658,682** |   | $ | 42,449,462 |   |
| Multi-family                                |   |                  | **857,315**    |   |   | 303,081 |   |
| Commercial                                  |   |                  | **1,913,269**  |   |   | 2,415,480 |   |
| Land                                        |   |                  | **436,965**    |   |   | **—** |   |
|                                        |   |                  |           |   |   |   |   |
|                                        |   |                  | **46,866,231** |   |   | 45,168,023 |   |
|                                        |   |                  |           |   |   |   |   |
| Real                  estate construction   |   |                  | **—**    |   |   | 629,515 |   |
|                                        |   |                  |           |   |   |   |   |
| Consumer:                                   |   |                  |           |   |   |   |   |
| Passbook                  or certificate    |   |                  | **59,309**     |   |   | 72,628 |   |
| Home                  equity line of credit |   |                  | **5,304,328**  |   |   | 6,598,784 |   |
| Home                  equity                |   |                  | **14,489,090** |   |   | 13,463,581 |   |
| Automobile                                  |   |                  | **217,771**    |   |   | 254,771 |   |
| Personal                  secured           |   |                  | **394,025**    |   |   | 124,939 |   |
| Personal                  unsecured         |   |                  | **87,734**     |   |   | 74,842 |   |
| Overdraft                  line of credit   |   |                  | **26,744**     |   |   | 21,844 |   |
|                                        |   |                  |           |   |   |   |   |
|                                        |   |                  | **20,579,001** |   |   | 20,611,389 |   |
|                                        |   |                  |           |   |   |   |   |
| **Total                  Loans**            |   |                  | **67,445,233** |   |   | 66,408,927 |   |
|                                        |   |                  |           |   |   |   |   |
| Deferred                  loan costs, net   |   |                  | **141,588**    |   |   | 132,871 |   |
| Allowance                  for loan losses  |   |                  | **(136,000**   | **)** |   | (158,500 | ) |
|                                        |   |                  |           |   |   |   |   |
|                                        |   |                  | **5,588**      |   |   | (25,629 | ) |
|                                        |   |                  |           |   |   |   |   |
|                                        |   | **$**                 | **67,450,821** |   | $ | 66,383,298 |   |

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***LINCOLN          PARK          BANCORPAND          SUBSIDIARY***

----

**NOTES          TO CONSOLIDATED          FINANCIAL          STATEMENTS**

**NOTE          5 –LOANS          RECEIVABLE (CONTINUED)**

|                                                   |   | **Years                  Ended December 31,** |      |
|--------------------------------------------------------|--------|----------------------------------------------------|-----------|
|                                                   |   | **2006**                                           |      | **2005** |   |
|                                                   |   | **(In                  Thousands)**                |      |
| Balance                  - beginning                   |   | **$**                                              | **3,575** |   | $ | 3,549 |   |
| Loans                  originated                      |   |                                               | **257**   |   |   | 1,016 |   |
| Collections                  of principal              |   |                                               | **(360**  | **)** |   | (869 | ) |
| Loans                  to persons no longer associated |   |                                               | **(595**  | **)** |   | (121 | ) |
|                                                   |   |                                               |      |   |   |   |   |
| Balance                  - ending                      |   | **$**                                              | **2,877** |   | $ | 3,575 |   |

|                                                                 |   | **Years                  Ended December 31,** |        |
|----------------------------------------------------------------------|--------|----------------------------------------------------|-------------|
|                                                                 |   | **2006**                                           |        | **2005** |   |
| Balance                  - beginning                                 |   | **$**                                              | **158,500** |   | $ | 156,000 |   |
| Recovery                  (credited) provision charged to operations |   |                                               | **(22,384** | **)** |   | 6,017 |   |
| Loans                  charged off                                   |   |                                               | **(116**    | **)** |   | (3,723 | ) |
| Recovery                                                             |   |                                               | **—** |   |   | 206 |   |
|                                                                 |   |                                               |        |   |   |   |   |
| Balance                  - ending                                    |   | **$**                                              | **136,000** |   | $ | 158,500 |   |

**NOTE        6 – PREMISES        AND EQUIPMENT**

|                                               |   | **December 31,** |          |
|----------------------------------------------------|--------|-----------------------|---------------|
|                                               |   | **2006**              |          | **2005** |   |
| Land                                               |   | **$**                 | **82,881**    |   | $ | 82,881 |   |
|                                               |   |                  |          |   |   |   |   |
| Buildings                  and improvements        |   |                  | **1,346,746** |   |   | 1,346,746 |   |
| Accumulated                  depreciation          |   |                  | **(692,323**  | **)** |   | (660,483 | ) |
|                                               |   |                  |          |   |   |   |   |
|                                               |   |                  | **654,423**   |   |   | 686,263 |   |
|                                               |   |                  |          |   |   |   |   |
| Furniture,                  fixtures and equipment |   |                  | **783,648**   |   |   | 748,446 |   |
| Accumulated                  depreciation          |   |                  | **(669,595**  | **)** |   | (633,742 | ) |
|                                               |   |                  |          |   |   |   |   |
|                                               |   |                  | **114,053**   |   |   | 114,704 |   |
|                                               |   |                  |          |   |   |   |   |
|                                               |   | **$**                 | **851,357**   |   | $ | 883,848 |   |

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***LINCOLN        PARK        BANCORPAND        SUBSIDIARY***

----

**NOTES          TO CONSOLIDATED          FINANCIAL          STATEMENTS**

**NOTE        7 – INTEREST        RECEIVABLE**

|                                                                                                           |   | **December 31,** |        |
|----------------------------------------------------------------------------------------------------------------|--------|-----------------------|-------------|
|                                                                                                           |   | **2006**              |        | **2005** |   |
| Loans,                  net of allowance for uncollectible interest 2006 $9,500; 2005                  $16,700 |   | **$**                 | **298,779** |   | $ | 266,008 |   |
| Securities                                                                                                     |   |                  | **190,613** |   |   | 181,652 |   |
| Other                  interest-earning assets                                                                 |   |                  | **103**     |   |   | 512 |   |
|                                                                                                           |   |                  |        |   |   |   |   |
|                                                                                                           |   | **$**                 | **489,495** |   | $ | 448,172 |   |

****NOTE      8 – DEPOSITS****

|                                     |   | **December                  31,**             |     |
|------------------------------------------|--------|-----------------------------------------------|----------|
|                                     |   | **2006**                                      |     | **2005** |   |
|                                     |   | **Weighted                  Average****Rate** |     | **Amount** |   | **Weighted                  Average**** Rate** |   | **Amount** |   |
| Demand:                                  |   |                                          |     |   |   |   |   |   |   |
| Non-interest                  bearing    |   |                                          | **0.00** | **%** | **$** | **768,473** |   |   | 0.00 | % | $ | 749,600 |   |
| NOW                  and money market    |   |                                          | **2.13** |   |   | **11,087,471** |   |   | 1.05 |   |   | 11,556,129 |   |
|                                     |   |                                          |     |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                                          | **1.99** |   |   | **11,855,944** |   |   | 0.99 |   |   | 12,305,729 |   |
|                                     |   |                                          |     |   |   |   |   |   |   |   |   |   |   |
| Savings                  and club        |   |                                          | **1.01** |   |   | **13,182,249** |   |   | 1.00 |   |   | 15,710,957 |   |
|                                     |   |                                          |     |   |   |   |   |   |   |   |   |   |   |
| Certificates                  of deposit |   |                                          | **4.62** |   |   | **32,805,701** |   |   | 3.20 |   |   | 26,350,128 |   |
|                                     |   |                                          |     |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                                          | **3.26** | **%** | **$** | **57,843,894** |   |   | 2.06 | % | $ | 54,366,814 |   |

|                                           |   | **December 31,** |       |
|------------------------------------------------|--------|-----------------------|------------|
|                                           |   | **2006**              |       | **2005** |   |
| One                  year of less              |   | **$**                 | **28,347** |   | $ | 18,417 |   |
| After                  one year to three years |   |                  | **4,130**  |   |   | 5,800 |   |
| After                  three years             |   |                  | **329**    |   |   | 2,133 |   |
|                                           |   |                  |       |   |   |   |   |
|                                           |   | **$**                 | **32,806** |   | $ | 26,350 |   |

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***LINCOLN          PARK          BANCORP          AND SUBSIDIARY***

----

**NOTES          TO CONSOLIDATED          FINANCIAL          STATEMENTS**

**NOTE          9 – ADVANCES          FROM FEDERAL          HOME          LOAN          BANK          OF NEW          YORK          (“FHLB”)**

|                                                |   | **December                  31,**             |        |
|-----------------------------------------------------|--------|-----------------------------------------------|-------------|
|                                                |   | **2006**                                      |        | **2005** |   |
|                                                |   | **Weighted                  Average****Rate** |        | **Amount** |   | **Weighted                  Average**** Rate** |   | **Amount** |   |
| Within                  one year                    |   |                                          | **5.12**    | **%** | **$** | **6,500,000** |   |   | 4.37 | % | $ | 7,475,000 |   |
| After                  one but within two years     |   |                                          | **3.75**    |   |   | **8,580,694** |   |   | 4.35 |   |   | 2,000,000 |   |
| After                  two but within three years   |   |                                          | **3.47**    |   |   | **2,948,251** |   |   | 3.71 |   |   | 9,028,717 |   |
| After                  three but within four years  |   |                                          | **4.19**    |   |   | **568,418** |   |   | 3.46 |   |   | 4,035,302 |   |
| After                  four but within five years   |   |                                          | **4.24**    |   |   | **1,515,000** |   |   | 4.19 |   |   | 729,649 |   |
| After                  five but within six years    |   |                                          | **—** |   |   | **—** |   |   | 3.55 |   |   | 1,252,355 |   |
| After                  six but within seven years   |   |                                          | **4.03**    |   |   | **899,364** |   |   | **—** |   |   | **—** |   |
| After                  seven but within eight years |   |                                          | **—** |   |   | **—** |   |   | 4.03 |   |   | 1,012,707 |   |
| After                  eight years                  |   |                                          | **5.31**    |   |   | **966,605** |   |   | **—** |   |   | **—** |   |
|                                                |   |                                          |        |   |   |   |   |   |   |   |   |   |   |
|                                                |   |                                          | **4.24**    | **%** | **$** | **21,978,331** |   |   | 3.93 | % | $ | 25,533,730 |   |

**NOTE        10 – REGULATORY        CAPITAL**

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*****LINCOLN      PARK      BANCORP      AND SUBSIDIARY*****

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**NOTES      TO CONSOLIDATED      FINANCIAL      STATEMENTS**

**NOTE      10 – REGULATORY      CAPITAL       (CONTINUED)**

|                                                              |   | **December 31,**               |      |
|-------------------------------------------------------------------|--------|-------------------------------------|-----------|
|                                                              |   | **2006**                            |      | **2005** |   |
|                                                              |   | **(In                  Thousands)** |      |
| GAAP                  capital                                     |   | **$**                               | **9,393** |   | $ | 9,525 |   |
| Unrealized                  loss on securities available for sale |   |                                | **24**    |   |   | 25 |   |
| Other                  comprehensive loss - DRP                   |   |                                | **158**   |   |   | **—** |   |
|                                                              |   |                                |      |   |   |   |   |
| Core                  and tangible capital                        |   |                                | **9,575** |   |   | 9,550 |   |
| General                  valuation allowance                      |   |                                | **136**   |   |   | 159 |   |
|                                                              |   |                                |      |   |   |   |   |
| **Total                  Regulatory Capital**                     |   | **$**                               | **9,711** |   | $ | 9,709 |   |

|                                                                |   | **Actual**                                        |      |  **For                  Capital Adequacy Purposes** |   | **To                  be Well Capitalized under**** Prompt                  Corrective Action****Provisions** |   |
|---------------------------------------------------------------------|--------|---------------------------------------------------|-----------|----------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|--------|
|                                                                |   |  **Amount**                                  |      | **Ratio**                                                |   | **Amount**                                                                                                         |   | **Ratio** |   | **Amount** |   | **Ratio** |   |
|                                                                |   |  **(Dollars                  in Thousands)** |      |
| **As                  of December 31, 2006:**                  |   |                                         |      |                                                     |   |                                                                                                               |   |   |   |   |   |   |   |
| Total                  risk-based capital (to risk-weighted assets) |   | **$**                                             | **9,711** |                                                     |   | **19.33**                                                                                                          | **%**  | **$** | **3****4,019** |   |   | **38.0** | **%** | **$** | **3****5,024** |   |   | **310.0** | **%** |
| Tier                  1 capital (to risk-weighted assets)           |   |                                              | **9,575** |                                                     |   | **19.06**                                                                                                          |   |   | **3****2,010** |   |   | **3****4.0** |   |   | **3****3,015** |   |   | **3****6.0** |   |
| Tier                  1 capital (to average assets)                 |   |                                              | **9,575** |                                                     |   | **10.37**                                                                                                          |   |   | **3****3,692** |   |   | **3****4.0** |   |   | **3****4,615** |   |   | **3****5.0** |   |
|                                                                |   |                                              |      |                                                     |   |                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **As                  of December 31, 2005:**                  |   |                                              |      |                                                     |   |                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  risk-based capital (to risk-weighted assets) |   | $                                                 | 9,709     |                                                     |   | 19.58                                                                                                              | %      | $ | 33,967 |   |   | 38.0 | % | $ | 34,959 |   |   | 310.0 | % |
| Tier                  1 capital (to risk-weighted assets)           |   |                                              | 9,550     |                                                     |   | 19.26                                                                                                              |   |   | 31,983 |   |   | 34.0 |   |   | 32,975 |   |   | 3                  6.0 |   |
| Tier                  1 capital (to average assets)                 |   |                                              | 9,550     |                                                     |   | 10.70                                                                                                              |   |   | 33,570 |   |   | 34.0 |   |   | 34,463 |   |   | 3                  5.0 |   |

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*****LINCOLN        PARK        BANCORP        AND SUBSIDIARY*****

----

**NOTES        TO CONSOLIDATED        FINANCIAL        STATEMENTS**

**NOTE        11 – INCOME        TAXES**

|                                            |   | **Years                  Ended December 31,** |        |
|-------------------------------------------------|--------|----------------------------------------------------|-------------|
|                                            |   | **2006**                                           |        | **2005** |   |
| Current                  income tax expense:    |   |                                               |        |   |   |
| Federal                                         |   | **$**                                              | **169,485** |   | $ | 284,669 |   |
| State                                           |   |                                               | **45,406**  |   |   | 89,724 |   |
|                                            |   |                                               |        |   |   |   |   |
|                                            |   |                                               | **214,891** |   |   | 374,393 |   |
|                                            |   |                                               |        |   |   |   |   |
| Deferred                  income tax (benefit): |   |                                               |        |   |   |   |   |
| Federal                                         |   |                                               | **(19,486** | **)** |   | (3,360 | ) |
| State                                           |   |                                               | **(6,242**  | **)** |   | (591 | ) |
|                                            |   |                                               |        |   |   |   |   |
|                                            |   |                                               | **(25,728** | **)** |   | (3,951 | ) |
|                                            |   |                                               |        |   |   |   |   |
|                                            |   | **$**                                              | **189,163** |   | $ | 370,442 |   |

|                                                                |   | **December 31,** |        |
|---------------------------------------------------------------------|--------|-----------------------|-------------|
|                                                                |   | **2006**              |        | **2005** |   |
| Deferred                income tax assets:                          |   |                  |        |   |   |
| Allowance                for loan losses                            |   | **$**                 | **62,566**  |   | $ | 78,160 |   |
| Deferred                loan fees and costs                         |   |                  | **1,497**   |   |   | 1,772 |   |
| Unrealized                loss on securities available for sale     |   |                  | **4,404**   |   |   | 15,991 |   |
| Benefit                plans                                        |   |                  | **23,087**  |   |   | **—** |   |
| Stock                compensation plans                             |   |                  | **19,009**  |   |   | 4,448 |   |
|  DRP                - other comprehensive loss                 |   |                  | **105,390** |   |   | **—** |   |
|                                                                |   |                  | **215,953** |   |   | 100,371 |   |
|                                                                |   |                  |        |   |   |   |   |
| Deferred                income tax liabilities:                     |   |                  |        |   |   |   |   |
| Depreciation                                                        |   |                  | **72,622**  |   |   | 75,992 |   |
| Capitalized                interest                                 |   |                  | **9,795**   |   |   | 10,374 |   |
|                                                                |   |                  | **82,417**  |   |   | 86,366 |   |
|                                                                |   |                  |        |   |   |   |   |
| **Net                Deferred Tax Assets Included in Other Assets** |   | **$**                 | **133,536** |   | $ | 14,005 |   |

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*******LINCOLN      PARK      BANCORP      AND SUBSIDIARY*******

----

**NOTES      TO CONSOLIDATED      FINANCIAL      STATEMENTS**

**NOTE      11 – INCOME      TAXES(CONTINUED)**

|                                                                                                  |   | **Years                  Ended December 31,** |        |
|-------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|-------------|
|                                                                                                  |   | **2006**                                           |        | **2005** |   |
| Federal                  income tax expense                                                           |   | **$**                                              | **171,073** |   | $ | 321,923 |   |
| Increases                  (reductions) in income taxes resulting from:                               |   |                                               |        |   |   |   |   |
| New                  Jersey corporate business tax, net of federal income tax                  effect |   |                                               | **25,848**  |   |   | 58,828 |   |
| Other                  items, net                                                                     |   |                                               | **(7,758**  | **)** |   | (10,309 | ) |
|                                                                                                  |   |                                               |        |   |   |   |   |
| **Effective                  Income Tax**                                                             |   | **$**                                              | **189,163** |   | $ | 370,442 |   |
| Effective                  income tax rate                                                            |   |                                               | **37.6**    | **%** |   | 39.1 | % |

**NOTE        12 – BENEFIT        PLANS**

**ESOP**

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***LINCOLN      PARK      BANCORP      AND      SUBSIDIARY***

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****N****OTES**** ****TO****C****ONSOLIDATED****F****INANCIAL****S****TATEMENTS****

**N**
**OTE**
**        12 –        B**
**ENEFIT        **
**P**
**LANS**
**        (C**
**ONTINUED**
**)**

**ESOP      (Continued)**

|   |   |   | **December                31,** |
|--------|--------|--------|---------------------------------|
|   |   |   | **2006**                        |   | **2005** |

|   | Shares                committed to be released |   | **3,549**  |   | 1,845  |
|--------|------------------------------------------------|--------|------------|--------|--------|
|   | Unreleased                shares               |   | **30,519** |   | 32,223 |
|   |                                           |   |       |   |   |
|   | **Total                ESOP Shares**           |   | **34,068** |   | 34,068 |

|   | Fair                value of unreleased shares |   | **$286,879** |   | $290,007 |
|--------|------------------------------------------------|--------|--------------|--------|----------|

**Stock-Based      Incentive Plan**

**Restricted      Stock Awards**

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***LINCOLN        PARK        BANCORP        AND        SUBSIDIARY***

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****N****OTES**** ****TO****C****ONSOLIDATED****F****INANCIAL****S****TATEMENTS****

**N**
**OTE**
**          12 – B**
**ENEFIT          **
**P**
**LANS**
**          (C**
**ONTINUED**
**)**

**Stock      Options**

|   |                                                          |   |   **Number                of****Option****Shares** | ** **  | **Range                of****Exercise****Price** | ** ** |  **Weighted****Average****Exercise****Price**                   |   |
|--------|---------------------------------------------------------------|--------|--------------------------------------------------------------|-------------|--------------------------------------------------|------------|----------------------------------------------------------------------|--------|
|   |                                                          |   |                                                         |        |                                             |       |                                                                 |   |
|   | December                31, 2004                              |   |                                                         | —     |                                             |       | —                                                              |   |   | — |   |
|   |                                                          |   |                                                         |        |                                             |       |                                                                 |   |   |   |   |
|   |                                                          |   |                                                         |        |                                             |       |                                                                 |   |   |   |   |
|   |                     Options granted       |   |                                                         | 66,520      |                                             | $          | 8.90                                                                 |   | $ | 8.90 |   |
|   |                     Options exercised     |   |                                                         | —     |                                             |       | —                                                              |   |   | — |   |
|   |                     Options cancelled     |   |                                                         | —     |                                             |       | —                                                              |   |   | — |   |
|   | December                31, 2005                              |   |                                                         | 66,520      |                                             | $          | 8.90                                                                 |   | $ | 8.90 |   |
|   |                                                          |   |                                                         |        |                                             |       |                                                                 |   |   |   |   |
|   |                                                          |   |                                                         |        |                                             |       |                                                                 |   |   |   |   |
|   |                     **Options granted**   |   |                                                         | **7,500**   |                                             | **$**      | **9.00**                                                             |   | **$** | **9.00** |   |
|   |                     **Options exercised** |   |                                                         | —     |                                             |       | —                                                              |   |   | — |   |
|   |                     **Options cancelled** |   |                                                         | **(10,000** | **)**                                            |       | **8.90**                                                             |   |   | **8.90** |   |
|   |                     **December 31, 2006** |   |                                                         | **64,020**  |                                             | **$**      | **8.90                –                $                9.00** |   | **$** | **8.91** |   |
|   |                                                          |   |                                                         |        |                                             |       |                                                                 |   |   |   |   |

|   |                                                              |   | **December                  31,** |
|--------|-------------------------------------------------------------------|--------|-----------------------------------|
|   |                                                              |   | **2006**                          |   | **2005** |
|   | Weighted                  average grant-date fair value per share |   | **$3.06**                         |   | $3.38 |
|   | Expected                  common stock dividend yield             |   | **—                  %**    |   | —                  % |
|   | Expected                  volatility                              |   | **19.28%**                        |   | 26.23% |
|   | Expected                  option life                             |   | **7.0                  years**    |   | 6.5                  - 7.0 years |
|   | Risk-free                  interest rate                          |   | **4.52%**                         |   | 4.38%                  - 4.39% |

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***LINCOLN        PARK        BANCORP        AND        SUBSIDIARY***

----

****N****OTES**** ****TO****C****ONSOLIDATED****F****INANCIAL****S****TATEMENTS****

**N**
**OTE**
**            12 – B**
**ENEFIT            **
**P**
**LANS**
**            (C**
**ONTINUED**
**)**

**Stock      Options (Continued)**

|                               |   | ** Year                Ended December 31, 2006** |        |
|------------------------------------|--------|-------------------------------------------------------|-------------|
|                               |   |    **As                Reported**      |        | **Impact                of****Share-based****Compensation****Expense** |   |
| Operating                Income:   |   |                                                  |        |   |   |   |   |
| Net                Income          |   | **$**                                                 | **313,992** |   | **$** | **(55,013** | **)** |
|                               |   |                                                  |        |   |   |   |   |
| Earnings                per share: |   |                                                  |        |   |   |   |   |
| Basic                              |   | **$**                                                 | **0.18**    |   | **$** | **(0.03** | **)** |
| Diluted                            |   | **$**                                                 | **0.17**    |   | **$** | **(0.03** | **)** |

|                                           |   |   **Number                of****Shares** |        | **Weighted****Average****Grant                Date****Fair                Value** |   |
|------------------------------------------------|--------|----------------------------------------------------|-------------|-----------------------------------------------------------------------------------|--------|
|                                           |   |                                               |        |                                                                              |   |
| Non-vested                at December 31, 2005 |   |                                               | 66,520      |                                                                              | $      | 3.38 |   |
|                                           |   |                                               |        |                                                                              |   |   |   |
| Granted                                        |   |                                               | **7,500**   |                                                                              | **$**  | **3.06** |   |
| Vested                                         |   |                                               | **(10,018** | **)**                                                                             | **$**  | **3.38** |   |
| Forfeited                                      |   |                                               | **(10,000** | **)**                                                                             | **$**  | **3.38** |   |
|                                           |   |                                               |        |                                                                              |   |   |   |
| Non-vested                at December 31, 2006 |   |                                               | **54,002**  |                                                                              | **$**  | **3.34** |   |

----

***LINCOLN        PARK        BANCORP        AND        SUBSIDIARY***

----

****N****OTES**** ****TO****C****ONSOLIDATED****F****INANCIAL****S****TATEMENTS****

**N**
**OTE**
**            12 – B**
**ENEFIT            **
**P**
**LANS**
**            (C**
**ONTINUED**
**)**

**Stock      Options (Continued)**

| **Options                Outstanding** | ** ** | **Options                Exercisable** |
|----------------------------------------|------------|----------------------------------------|
|   **Year**                   | ** ** | **Number****Outstanding**              | ** ** | **Range                of****Exercise****Price** | ** ** | **Weighted****Average****Remaining****Contractual****Life                in Years** | ** ** |  **Weighted****Average****Exercise****Price** | ** ** | **Number****Exercisable** | ** ** |  **Weighted****Average****Exercise****Price** | ** ** | **Weighted****Average****Remaining****Contractual****Life                in Years** |
|                                   |       |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2005                                   |       | 56,520                                 |   | $8.90 |   | 9 |   |  $ | 8.90 |   | 10,018 |   |  $ | 8.90 |   | 9 |
|                                   |       |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **2006**                               |       | **7,500**                              |   | **$8.90-$9.00** |   | **9.5** |   |  **$** | **9.00** |   | **—** |   |   | **—** |   | **—** |
|                                   |       |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |       | **64,020**                             |   | **$8.90-$9.00** |   | **9.3** |   |  **$** | **8.91** |   | **10,018** |   |  **$** | **8.90** |   | **9** |

----

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***LINCOLN        PARK        BANCORP        AND        SUBSIDIARY***

----

****N****OTES**** ****TO****C****ONSOLIDATED****F****INANCIAL****S****TATEMENTS****

**N**
**OTE**
**            12 – B**
**ENEFIT            **
**P**
**LANS**
**            (C**
**ONTINUED**
**)**

**Director      Retirement Plan (“DRP”)**

|   | Benefit                Obligation - beginning                                                       |   | **$**  | **—** |   |
|--------|-----------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|
|   |                     Service cost                                                |   |   | **16,937**  |   |
|   |                     Interest cost                                               |   |   | **14,600**  |   |
|   |                     Prior service cost                                          |   |   | **304,672** |   |
|   |                     Actuarial (gain)                                            |   |   | **(17,233** | **)**  |
|   |                                                                                                |   |   |        |   |
|   | Benefit                Obligation - ending                                                          |   | **$**  | **318,976** |   |
|   |                                                                                                |   |   |        |   |
|   | Funded                Status –                Accrued liability included in other liabilities |   | **$**  | **318,976** |   |
|   |                                                                                                |   |   |        |   |
|   | Discount                Rate                                                                        |   |   | **5.75**    | **%**  |
|   |                                                                                                |   |   |        |   |
|   | Net                periods pension expense:                                                         |   |   |        |   |
|   |                     Service Cost                                                |   | **$**  | **16,937**  |   |
|   |                     Interest Cost                                               |   |   | **14,600**  |   |
|   |                     Amortization of unrecognized prior service liability        |   |   | **23,930**  |   |
|   |                                                                                                |   |   |        |   |
|   | Total                pension expense included in Other Non-Interest Expenses                        |   | **$**  | **55,467**  |   |
|   |                                                                                                |   |   |        |   |

| **2007**                       |   | **$**  | **—** |   |
|--------------------------------|--------|--------|-------------|--------|
| **2008**                       |   |   | **—** |   |
| **2009**                       |   |   | **13,372**  |   |
| **2010**                       |   |   | **15,960**  |   |
| **2011**                       |   |   | **18,278**  |   |
| **2012                - 2016** |   |   | **153,042** |   |
|                           |   | **$**  | **200,652** |   |

----

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***LINCOLN        PARK        BANCORP        AND        SUBSIDIARY***

----

****N****OTES**** ****TO****C****ONSOLIDATED****F****INANCIAL****S****TATEMENTS****

**N**
**OTE**
**        13 – O**
**THER**
**        N**
**ON**
**-I**
**NTEREST**
**        E**
**XPENSES**

|   |                                            |   |  **Years                Ended December 31,** |        |
|--------|-------------------------------------------------|--------|--------------------------------------------------------|-------------|
|   |                                            |   |  **2006**                                    |        | **2005**  |   |
|   | Directors’                compensation    |   | **$**                                                  | **260,350** |   | $ | 166,700 |   |
|   | Legal                                           |   |                                                   | **121,789** |   |   | 96,101 |   |
|   | Auditing                and accounting services |   |                                                   | **100,992** |   |   | 87,128 |   |
|   | Stationery                and printing          |   |                                                   | **59,593**  |   |   | 59,278 |   |
|   | Other                                           |   |                                                   | **234,707** |   |   | 259,374 |   |
|   |                                            |   |                                                   |        |   |   |   |   |
|   |                                            |   | **$**                                                  | **777,431** |   | $ | 668,581 |   |

**N**
**OTE**
**        14 – C**
**OMMITMENTS**
** **
**AND**
**        C**
**ONTINGENCIES**

----

----

***LINCOLN          PARK          BANCORP          AND          SUBSIDIARY***

----

****N****OTES**** ****TO****C****ONSOLIDATED****F****INANCIAL****S****TATEMENTS****

**N**
**OTE**
**        14 – C**
**OMMITMENTS**
** **
**AND**
**        C**
**ONTINGENCIES        (C**ONTINUED****)****

|   |                                      |   |  **December 31,**               |        |
|--------|-------------------------------------------|--------|-------------------------------------------|-------------|
|   |                                      |   |  **2006**                            |        |  **2005** |   |
|   |                                      |   |  **(In                  Thousands)** |        |
|   | To                  originate loans:      |   |                                      |        |   |   |   |   |
|   | Fixed                  rate mortgage      |   | **$**                                     | **454**     |   | $ | 145 |   |
|   | Adjustable                  rate mortgage |   |                                      | **—** |   |   | 526 |   |
|   | Home                  equity line         |   |                                      | **455**     |   |   | 200 |   |
|   | Consumer                                  |   |                                      | **—** |   |   | 21 |   |
|   |                                      |   |                                      |        |   |   |   |   |
|   | To                  fund lines of credit: |   |                                      |        |   |   |   |   |
|   | Home                  equity              |   |                                      | **8,690**   |   |   | 8,038 |   |
|   | Overdraft                                 |   |                                      | **77**      |   |   | 77 |   |

----

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***LINCOLN        PARK        BANCORP        AND        SUBSIDIARY***

----

****N****OTES**** ****TO****C****ONSOLIDATED****F****INANCIAL****S****TATEMENTS****

**N**
**OTE**
**        15 – E**
**STIMATED**
**        F**
**AIR**
**        V**
**ALUE**
** **
**OF**
**        F**
**INANCIAL**
**        I**
**NSTRUMENTS**

**Cash      and Cash Equivalents and Interest Receivable**

**Securities**

**Loans      Receivable**

**Restricted      Equity Securities**

**Deposits**

**Term      Deposits and Advances from Federal Home Loan Bank of New      York**

**Commitments      to Extend Credit**

----

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***LINCOLN      PARK      BANCORP      AND SUBSIDIARY***

----

**NOTES          TO CONSOLIDATED          FINANCIAL          STATEMENTS**

****NOTE      15 – ESTIMATED      FAIR      VALUE      OF      FINANCIAL      INSTRUMENTS      (CONTINUED)****

|                                                                                   |   | **December                  31,**   |       |
|----------------------------------------------------------------------------------------|--------|-------------------------------------|------------|
|                                                                                   |   | **2006**                            |       | **2005** |   |
|                                                                                   |   | **Carrying                  Value** |       | **Fair****Value** |   | **Carrying                  Value** |   | **Fair****Value** |   |
|                                                                                   |   | **(In                  Thousands)** |       |
| Financial                  assets:                                                     |   |                                |       |   |   |   |   |   |   |
| Cash                  and cash equivalents                                             |   | **$**                               | **2,601**  |   | **$** | **2,601** |   | $ | 2,316 |   | $ | 2,316 |   |
| Term                  deposits                                                         |   |                                | **190**    |   |   | **190** |   |   | 581 |   |   | 581 |   |
| Securities                  available for sale                                         |   |                                | **2,574**  |   |   | **2,574** |   |   | 3,002 |   |   | 3,002 |   |
| Securities                  held to maturity                                           |   |                                | **18,335** |   |   | **17,890** |   |   | 18,817 |   |   | 18,320 |   |
| Loans                  receivable, net                                                 |   |                                | **67,451** |   |   | **67,392** |   |   | 66,383 |   |   | 66,488 |   |
| Federal                  Home Loan Bank of New York stock                              |   |                                | **1,121**  |   |   | **1,121** |   |   | 1,265 |   |   | 1,265 |   |
| Interest                  receivable                                                   |   |                                | **489**    |   |   | **489** |   |   | 448 |   |   | 448 |   |
|                                                                                   |   |                                |       |   |   |   |   |   |   |   |   |   |   |
| Financial                  liabilities:                                                |   |                                |       |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                               |   |                                | **57,844** |   |   | **57,897** |   |   | 54,367 |   |   | 54,200 |   |
| Advances                  from the Federal Home Loan Bank                  of New York |   |                                | **21,978** |   |   | **22,017** |   |   | 25,534 |   |   | 25,266 |   |

----

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***LINCOLN          PARK          BANCORP          AND SUBSIDIARY***

----

**NOTES            TO CONSOLIDATED            FINANCIAL            STATEMENTS**

**NOTE        16 – PARENT        ONLY        FINANCIAL        INFORMATION**

| **STATEMENTS                  OF FINANCIAL CONDITION**           |   |
|-----------------------------------------------------------------------|--------|
|                                                                  |   | **December                  31,** |   |
|                                                                  |   | **2006** |   | **2005** |   |
| **Assets**                                                            |   |   |   |   |   |
| Cash                  and due from banks                              |   | **$** | **752,220** |   | $ | 349,606 |   |
| Term                  deposits                                        |   |   | **99,000** |   |   | 495,000 |   |
| Securities                  available for sale                        |   |   | **180,727** |   |   | 80,482 |   |
| Securities                  held to maturity                          |   |   | **2,444,692** |   |   | 2,540,348 |   |
| Loan                  receivable from the Savings Bank                |   |   | **366,527** |   |   | 376,353 |   |
| Interest                  receivable                                  |   |   | **33,745** |   |   | 34,474 |   |
| Investment                  in subsidiary                             |   |   | **9,392,868** |   |   | 9,524,765 |   |
| Other                  assets                                         |   |   | **12,912** |   |   | — |   |
|                                                                  |   |   |   |   |   |   |   |
| **Total                  Assets**                                     |   | **$** | **13,282,691** |   | $ | 13,401,028 |   |
| **Liabilities                  and Stockholders’ Equity**       |   |   |   |   |   |   |   |
| Other                  liabilities                                    |   | **$** | **38,381** |   | $ | 13,490 |   |
| Stockholders’                  equity                           |   |   | **13,244,310** |   |   | 13,387,538 |   |
|                                                                  |   |   |   |   |   |   |   |
| **Total                  Liabilities and Stockholders’ Equity** |   | **$** | **13,282,691** |   | $ | 13,401,028 |   |

----

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***LINCOLN            PARK            BANCORP            AND SUBSIDIARY***

----

**NOTES              TO CONSOLIDATED              FINANCIAL              STATEMENTS**

**NOTE          16 – PARENT          ONLY          FINANCIAL          INFORMATION**
** (**CONTINUED**)**

| **STATEMENTS                  OF INCOME**                                                                                                      |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                |   | **Years                  Ended December 31,** |   |
|                                                                                                                                                |   | **2006** |   | **2005** |   |
| Dividend                  from Bank                                                                                                                 |   | **$** | **350,000** |   | $ | — |   |
| Interest                  income                                                                                                                    |   |   | **174,946** |   |   | 155,622 |   |
| Non-interest                  income                                                                                                                |   |   | **9,616** |   |   | — |   |
| Total                  income                                                                                                                       |   |   | **534,562** |   |   | 155,622 |   |
|                                                                                                                                                |   |   |   |   |   |   |   |
| Non-interest                  expenses                                                                                                              |   |   | **161,683** |   |   | 196,159 |   |
|                                                                                                                                                |   |   |   |   |   |   |   |
| **Income                  (Loss) before Income Tax (Benefit) and Equity in Undistributed                  Earnings of                  Subsidiary** |   |   | **372,879** |   |   | (40,537 | ) |
|                                                                                                                                                |   |   |   |   |   |   |   |
| Income                  tax (benefit)                                                                                                               |   |   | **4,072** |   |   | (13,944 | ) |
|                                                                                                                                                |   |   |   |   |   |   |   |
| **Income                  (Loss) before Equity in Undistributed Earnings of                  Subsidiary**                                           |   |   | **368,807** |   |   | (26,593 | ) |
|                                                                                                                                                |   |   |   |   |   |   |   |
| Equity                  in undistributed earnings (loss) of subsidiary                                                                              |   |   | **(54,815** | **)** |   | 602,982 |   |
|                                                                                                                                                |   |   |   |   |   |   |   |
| **Net                  Income**                                                                                                                     |   | **$** | **313,992** |   | $ | 576,389 |   |

----

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***LINCOLN              PARK              BANCORP              AND SUBSIDIARY***

----

**NOTES                TO CONSOLIDATED                FINANCIAL                STATEMENTS**

**NOTE            16 – PARENT            ONLY            FINANCIAL            INFORMATION**
** (**CONTINUED**)**

| **STATEMENTS                  OF CASH FLOWS**                                                                            |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                          |   | **Years                  Ended December 31,** |   |
|                                                                                                                          |   | **2006** |   | **2005** |   |
| **Cash                  Flows from Operating Activities**                                                                     |   |   |   |   |   |
| Net                  income                                                                                                   |   | **$** | **313,992** |   | $ | 576,389 |   |
| Adjustments                  to reconcile net income to net cash provided by (used in) operating                  activities: |   |   |   |   |   |   |   |
| Decrease                  (increase) in interest receivable                                                                   |   |   | **729** |   |   | (33,294 | ) |
| Increase                  in other liabilities                                                                                |   |   | **13,901** |   |   | 12,131 |   |
| Gain                  on sale of securities available for sale                                                                |   |   | **(9,612** | **)** |   | — |   |
| Increase                  in other assets                                                                                     |   |   | **(12,913** | **)** |   | — |   |
| Equity                  in undistributed loss (earnings) in subsidiary                                                        |   |   | **54,815** |   |   | (602,982 | ) |
|                                                                                                                          |   |   |   |   |   |   |   |
| **Net                  Cash Provided by (Used in) Operating Activities**                                                      |   |   | **360,912** |   |   | (47,756 | ) |
|                                                                                                                          |   |   |   |   |   |   |   |
| **Cash                  Flows from Investing Activities**                                                                     |   |   |   |   |   |   |   |
| Proceeds                  from maturities of term deposits                                                                    |   |   | **396,000** |   |   | — |   |
| Purchases                  of securities available for sale                                                                   |   |   | **(87,418** | **)** |   | (78,456 | ) |
| Proceeds                  from sales of securities available for sale                                                         |   |   | **24,298** |   |   | — |   |
| Purchases                  of securities held to maturity                                                                     |   |   | **—** |   |   | (2,600,000 | ) |
| Principal                  repayments on securities held to maturity                                                          |   |   | **95,656** |   |   | 59,652 |   |
| Decrease                  in loan receivable from Savings Bank                                                                |   |   | **9,826** |   |   | 10,841 |   |
|                                                                                                                          |   |   |   |   |   |   |   |
| **Net                  Cash Used in Investing Activities**                                                                    |   |   | **438,362** |   |   | (2,607,963 | ) |
|                                                                                                                          |   |   |   |   |   |   |   |
| **Cash                  Flows Provided by Financing Activities**                                                              |   |   |   |   |   |   |   |
| Additional                  cost of initial public stock offering                                                             |   |   | **—** |   |   | (8,025 | ) |
| Cash                  dividends paid                                                                                          |   |   | **(40,882** | **)** |   | — |   |
| Purchase                  of restricted stock                                                                                 |   |   | **(355,778** | **)** |   | — |   |
|                                                                                                                          |   |   |   |   |   |   |   |
| **Net                  Cash Used in Financing Activities**                                                                    |   |   | **(396,660** | **)** |   | (8,025 | ) |
|                                                                                                                          |   |   |   |   |   |   |   |
| **Net                  Increase (Decrease) in Cash and Cash Equivalents**                                                     |   |   | **402,614** |   |   | (2,663,744 | ) |
|                                                                                                                          |   |   |   |   |   |   |   |
| **Cash                  and Cash Equivalents - Beginning**                                                                    |   |   | **349,606** |   |   | 3,013,350 |   |
|                                                                                                                          |   |   |   |   |   |   |   |
| **Cash                  and Cash Equivalents - Ending**                                                                       |   | **$** | **752,220** |   | $ | 349,606 |   |

----

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***LINCOLN          PARK          BANCORP          AND SUBSIDIARY***

----

**NOTES            TO CONSOLIDATED            FINANCIAL            STATEMENTS**

**NOTE      17 – QUARTERLY      FINANCIAL      DATA      (UNAUDITED)**

|                                                                            |   | **Quarter                  Ended**                                                           |          |
|---------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|---------------|
|                                                                            |   | **March                  31, 2006**                                                          |          | **June                  30, 2006** |   | **September                  30,****2006** |   | **December                  31, 2006** |   |
|                                                                            |   | **(In                  Thousands, Except for Share and Per Share                  Amounts)** |          |
|                                                                            |   |                                                                                         |          |   |   |   |   |   |   |
| Interest                  income                                                |   | **$**                                                                                        | **1,182**     |   | **$** | **1,232** |   | **$** | **1,258** |   | **$** | **1,293** |   |
| Interest                  expense                                               |   |                                                                                         | **559**       |   |   | **627** |   |   | **676** |   |   | **715** |   |
|                                                                            |   |                                                                                         |          |   |   |   |   |   |   |   |   |   |   |
| **Net                  Interest Income**                                        |   |                                                                                         | **623**       |   |   | **605** |   |   | **582** |   |   | **578** |   |
|                                                                            |   |                                                                                         |          |   |   |   |   |   |   |   |   |   |   |
| Provision                  for loan losses                                      |   |                                                                                         | **3**         |   |   | — |   |   | **(1** | **)** |   | **(25** | **)** |
|                                                                            |   |                                                                                         |          |   |   |   |   |   |   |   |   |   |   |
| **Net                  Interest Income after Provision for Loan Losses**        |   |                                                                                         | **620**       |   |   | **605** |   |   | **583** |   |   | **603** |   |
|                                                                            |   |                                                                                         |          |   |   |   |   |   |   |   |   |   |   |
| Non-interest                  income                                            |   |                                                                                         | **33**        |   |   | **24** |   |   | **30** |   |   | **46** |   |
| Non-interest                  expenses                                          |   |                                                                                         | **514**       |   |   | **476** |   |   | **533** |   |   | **518** |   |
|                                                                            |   |                                                                                         |          |   |   |   |   |   |   |   |   |   |   |
| **Income                  before Income Taxes**                                 |   |                                                                                         | **139**       |   |   | **153** |   |   | **80** |   |   | **131** |   |
|                                                                            |   |                                                                                         |          |   |   |   |   |   |   |   |   |   |   |
| Income                  taxes                                                   |   |                                                                                         | **53**        |   |   | **58** |   |   | **27** |   |   | **51** |   |
|                                                                            |   |                                                                                         |          |   |   |   |   |   |   |   |   |   |   |
| **Net                  Income**                                                 |   | **$**                                                                                        | **86**        |   | **$** | **95** |   | **$** | **53** |   | **$** | **80** |   |
|                                                                            |   |                                                                                         |          |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |                                                                                         |          |   |   |   |   |   |   |   |   |   |   |
| Net                  income per common share - basic                            |   | **$**                                                                                        | **0.05**      |   | **$** | **0.05** |   | **$** | **0.03** |   | **$** | **0.04** |   |
|                                                                            |   |                                                                                         |          |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average number of common shares outstanding - basic   |   |                                                                                         | **1,819,490** |   |   | **1,794,046** |   |   | **1,783,985** |   |   | **1,784,413** |   |
|  Net                  income per common share - diluted                    |   | **$**                                                                                        | **0.05**      |   | **$** | **0.05** |   | **$** | **0.03** |   | **$** | **0.04** |   |
|                                                                            |   |                                                                                         |          |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average number of common shares outstanding - diluted |   |                                                                                         | **1,824,558** |   |   | **1,798,922** |   |   | **1,786,067** |   |   | **1,784,413** |   |

----

----

***LINCOLN            PARK            BANCORP            AND SUBSIDIARY***

----

**NOTES              TO CONSOLIDATED              FINANCIAL              STATEMENTS**

**NOTE        17 – QUARTERLY        FINANCIAL        DATA        (UNAUDITED)        (**CONTINUED**)**

|                                                                                                       |   | **Quarter                  Ended**                                                           |      |
|------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|-----------|
|                                                                                                       |   | **March                  31,**** 2005**                                                 |      | **June                  30,****2005** |   | **September                  30,****2005** |   | **December                  31,****2005** |   |
|                                                                                                       |   | **(In                  Thousands, Except for Share and Per Share                  Amounts)** |      |
|                                                                                                       |   |                                                                                         |      |   |   |   |   |   |   |
| Interest                  income                                                                           |   | $                                                                                            | 1,034     |   | $ | 1,096 |   | $ | 1,122 |   | $ | 1,166 |   |
| Interest                  expense                                                                          |   |                                                                                         | 368       |   |   | 398 |   |   | 448 |   |   | 508 |   |
|                                                                                                       |   |                                                                                         |      |   |   |   |   |   |   |   |   |   |   |
| **Net                  Interest Income**                                                                   |   |                                                                                         | 666       |   |   | 698 |   |   | 674 |   |   | 658 |   |
|                                                                                                       |   |                                                                                         |      |   |   |   |   |   |   |   |   |   |   |
| Provision                  for loan losses                                                                 |   |                                                                                         | 27        |   |   | (9 | ) |   | (22 | ) |   | 10 |   |
|                                                                                                       |   |                                                                                         |      |   |   |   |   |   |   |   |   |   |   |
| **Net                  Interest Income after Provision for Loan Losses**                                   |   |                                                                                         | 639       |   |   | 707 |   |   | 696 |   |   | 648 |   |
|                                                                                                       |   |                                                                                         |      |   |   |   |   |   |   |   |   |   |   |
| Non-interest                  income                                                                       |   |                                                                                         | 16        |   |   | 32 |   |   | 26 |   |   | 26 |   |
| Non-interest                  expenses                                                                     |   |                                                                                         | 459       |   |   | 469 |   |   | 452 |   |   | 463 |   |
|                                                                                                       |   |                                                                                         |      |   |   |   |   |   |   |   |   |   |   |
| **Income                  before Income Taxes**                                                            |   |                                                                                         | 196       |   |   | 270 |   |   | 270 |   |   | 211 |   |
|                                                                                                       |   |                                                                                         |      |   |   |   |   |   |   |   |   |   |   |
| Income                  taxes                                                                              |   |                                                                                         | 76        |   |   | 106 |   |   | 105 |   |   | 84 |   |
|                                                                                                       |   |                                                                                         |      |   |   |   |   |   |   |   |   |   |   |
| **Net                  Income**                                                                            |   | $                                                                                            | 120       |   | $ | 164 |   | $ | 165 |   | $ | 127 |   |
|                                                                                                       |   |                                                                                         |      |   |   |   |   |   |   |   |   |   |   |
|                                                                                                       |   |                                                                                         |      |   |   |   |   |   |   |   |   |   |   |
| Net                  income per common share - basic and diluted                                           |   | $                                                                                            | 0.07      |   | $ | 0.09 |   | $ | 0.09 |   | $ | 0.07 |   |
|                                                                                                       |   |                                                                                         |      |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average number of common shares outstanding - basic and                  diluted |   |                                                                                         | 1,817,787 |   |   | 1,818,212 |   |   | 1,818,638 |   |   | 1,819,064 |   |

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***LINCOLN          PARK          BANCORP          AND SUBSIDIARY***

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**NOTES            TO CONSOLIDATED            FINANCIAL            STATEMENTS**

**NOTE        18 – RECENT        ACCOUNTING        PRONOUNCEMENTS**

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***LINCOLN      PARK      BANCORP      AND      SUBSIDIARY***

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**NOTES        TO        CONSOLIDATED        FINANCIAL        STATEMENTS**

**N**
**OTE**
**        18 –        R**
**ECENT**
**        A**
**CCOUNTING**
**        P**
**RONOUNCEMENTS**
**        (C**
**ONTINUED**
**)**

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***LINCOLN      PARK      BANCORP      AND      SUBSIDIARY***

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**NOTES        TO        CONSOLIDATED        FINANCIAL        STATEMENTS**

**NOTE        19 –        SUBSEQUENT        EVENTS**

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***LINCOLN        PARK        BANCORP        AND        SUBSIDIARY***

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**DIRECTORS      AND EXECUTIVE OFFICERS**

**Directors**

**Executive      Officers**

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***LINCOLN          PARK          BANCORP          AND          SUBSIDIARY***

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**STOCKHOLDER      INFORMATION**

**Annual      Meeting**

**Stock      Listing**

**Counsel**

**Special      Counsel**

**Independent      Auditors**

**Transfer      Agent and Registrar**

**Annual      Report on Form 10-KSB**

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***LINCOLN          PARK          BANCORP          AND          SUBSIDIARY***

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**MARKET      INFORMATION**

| **Quarter                  Ended**  |   |   | **High** |   |   | **Low** |   |   | **Dividends** |   |
|-------------------------------------|--------|--------|----------|--------|--------|---------|--------|--------|---------------|--------|
|                                |   |   |     |   |   |    |   |   |          |   |
| December                  31, 2004  |   | $      | 12.00    |   | $      | 10.75   |   |   | —       |   |
|                                |   |   |     |   |   |    |   |   |          |   |
| March                  31, 2005     |   | $      | 11.25    |   | $      | 9.90    |   |   | —       |   |
|                                |   |   |     |   |   |    |   |   |          |   |
| June                  30, 2005      |   | $      | 10.00    |   | $      | 8.60    |   |   | —       |   |
|                                |   |   |     |   |   |    |   |   |          |   |
| September                  30, 2005 |   | $      | 9.95     |   | $      | 8.80    |   |   | —       |   |
|                                |   |   |     |   |   |    |   |   |          |   |
| December                  31, 2005  |   | $      | 9.50     |   | $      | 8.62    |   |   | —       |   |
|                                |   |   |     |   |   |    |   |   |          |   |
| March                  31, 2006     |   | $      | 10.10    |   | $      | 8.85    |   | $      | .05           |   |
|                                |   |   |     |   |   |    |   |   |          |   |
| June                  30, 2006      |   | $      | 10.05    |   | $      | 9.50    |   |   | —       |   |
|                                |   |   |     |   |   |    |   |   |          |   |
| September                  30, 2006 |   | $      | 9.70     |   | $      | 9.10    |   |   | —       |   |
|                                |   |   |     |   |   |    |   |   |          |   |
| December                  31, 2006  |   | $      | 9.48     |   | $      | 8.75    |   |   | —       |   |

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