----

----

| T | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

| £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| Minden Bancorp, Inc.                                   |
|--------------------------------------------------------|
| (Exact Name of Registrant as Specified in Its Charter) |

| Louisiana                                                      |   | 90-0610674                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
| 100 MBL Bank DriveMinden, Louisiana                            |   | 71055                                |
| (Address of Principal Executive Offices)                       |   | (Zip Code)                           |

| (318) 371-4156                                                                     |
|------------------------------------------------------------------------------------|
| (Registrant’s Telephone Number, Including Area Code)                         |
|                                                                               |
| Not Applicable                                                                     |
| (Former name, former address and former fiscal year, if changed since last report) |

| Large accelerated filer | £ | Accelerated filer              | £ |
|-----------------------------------|--------|-------------------------------------|--------|
| Non-accelerated filer        | £ | Smaller reporting company | T      |

----

----

----

Tab

| PART I - FINANCIAL INFORMATION | Page                                                                                        |
|--------------------------------|---------------------------------------------------------------------------------------------|
|                           |                                                                                        |   |
| Item 1 -             | Financial Statements (Unaudited)                                                            | 1 |
|                           |                                                                                        |   |
| Item 2 -             | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 25 |
|                           |                                                                                        |   |
| Item 3 -             | Quantitative and Qualitative Disclosures About Market Risk                                  | 30 |
|                           |                                                                                        |   |
| Item 4 -             | Controls and Procedures                                                                     | 30 |
|                           |                                                                                        |   |
| PART II - OTHER INFORMATION    |                                                                                        |
|                           |                                                                                        |   |
| Item 1 -             | Legal Proceedings                                                                           | 31 |
|                           |                                                                                        |   |
| Item 1A -            | Risk Factors                                                                                | 32 |
|                           |                                                                                        |   |
| Item 2 -             | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 32 |
|                           |                                                                                        |   |
| Item 3 -             | Defaults Upon Senior Securities                                                             | 33 |
|                           |                                                                                        |   |
| Item 4 -             | (Removed and Reserved)                                                                      | 33 |
|                           |                                                                                        |   |
| Item 5 -             | Other Information                                                                           | 33 |
|                           |                                                                                        |   |
| Item 6 -             | Exhibits                                                                                    | 33 |
|                           |                                                                                        |   |
| Signatures                     | 34                                                                                          |

----

Table of Contents

MI

|                                               |   | March 31, |    |   | December 31, |   |
|----------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
| A S S E T S                                        |   | 2011           |    |   | 2010              |   |
|                                               |   | (Unaudited)    |    |   |              |   |
|                                               |   |           |    |   |              |   |
| Cash and noninterest-bearing deposits              |   | $              | 2,964   |   |              | $      | 2,256 |   |
| Interest-bearing demand deposits                   |   |           | 687     |   |              |   | 421 |   |
| Federal funds sold                                 |   |           | 34,275  |   |              |   | 46,025 |   |
| Total cash and cash equivalents                    |   |           | 37,926  |   |              |   | 48,702 |   |
|                                               |   |           |    |   |              |   |   |   |
| Investment securities:                             |   |           |    |   |              |   |   |   |
| Securities held-to-maturity (estimated market      |   |           |    |   |              |   |   |   |
| value of $140-2010)                                |   |           | -       |   |              |   | 139 |   |
| Securities available-for-sale, at estimated market |   |           |    |   |              |   |   |   |
| value                                              |   |           | 61,079  |   |              |   | 62,436 |   |
|                                               |   |           |    |   |              |   |   |   |
| First National Banker’s Bank stock, at cost  |   |           | 210     |   |              |   | 210 |   |
| Federal Home Loan Bank stock, at cost              |   |           | 239     |   |              |   | 239 |   |
| Loans, net of allowance for loan losses of $1,314- |   |           |    |   |              |   |   |   |
| 2011 and $1,286-2010                               |   |           | 128,921 |   |              |   | 127,190 |   |
| Accrued interest receivable                        |   |           | 700     |   |              |   | 804 |   |
| Premises and equipment, net                        |   |           | 5,481   |   |              |   | 5,551 |   |
| Other real estate owned                            |   |           | -       |   |              |   | 10 |   |
| Prepaid and other assets                           |   |           | 1,641   |   |              |   | 2,470 |   |
|                                               |   |           |    |   |              |   |   |   |
| Total assets                                       |   | $              | 236,197 |   |              | $      | 247,751 |   |

----

Table of Contents

|                                                   |   | March 31, |    |   | December 31, |   |
|--------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
| LIABILITIES AND STOCKHOLDERS’ EQUITY             |   | 2011           |    |   | 2010              |   |
|                                                   |   | (Unaudited)    |    |   |              |   |
|                                                   |   |           |    |   |              |   |
| Liabilities:                                           |   |           |    |   |              |   |
| Deposits:                                              |   |           |    |   |              |   |
| Noninterest-bearing                                    |   | $              | 24,051  |   |              | $      | 33,805 |   |
| Interest-bearing                                       |   |           | 174,018 |   |              |   | 178,280 |   |
| Total deposits                                         |   |           | 198,069 |   |              |   | 212,085 |   |
| Accrued interest payable                               |   |           | 334     |   |              |   | 311 |   |
| Stock escrow liability                                 |   |           | -       |   |              |   | 10,230 |   |
| Other liabilities                                      |   |           | 786     |   |              |   | 1,015 |   |
| Total liabilities                                      |   |           | 199,189 |   |              |   | 223,641 |   |
|                                                   |   |           |    |   |              |   |   |   |
| Commitments and contingent liabilities                 |   |           |    |   |              |   |   |   |
|                                                   |   |           |    |   |              |   |   |   |
| Stockholders' equity:                                  |   |           |    |   |              |   |   |   |
| Preferred stock-$.01 par value; authorized 10,000,000  |   |           |    |   |              |   |   |   |
| shares-2011 and 1,000,000-2010; none issued-no rights/ |   |           | -       |   |              |   | - |   |
| preferences set by board                               |   |           |    |   |              |   |   |   |
| Common stock-$.01 par value; authorized 40,000,000     |   |           |    |   |              |   |   |   |
| shares-2011 and 4,000,000-2010; 2,382,137 shares       |   |           |    |   |              |   |   |   |
| issued and 2,382,137 shares-2011 and 2,379,205 shares- |   |           |    |   |              |   |   |   |
| outstanding                                            |   |           | 24      |   |              |   | 15 |   |
| Additional paid-in capital                             |   |           | 29,641  |   |              |   | 16,575 |   |
| Retained earnings                                      |   |           | 8,144   |   |              |   | 9,256 |   |
| Accumulated other comprehensive income (loss)          |   |           | (109    | )      |              |   | 267 |   |
|                                                   |   |           | 37,700  |   |              |   | 26,113 |   |
|                                                   |   |           |    |   |              |   |   |   |
| Unearned common stock held by Management               |   |           |    |   |              |   |   |   |
| Recognition and Retention Plan (MRRP)                  |   |           |    |   |              |   |   |   |
| (8,738 shares-2011 and 10,628 shares-2010)             |   |           | (60     | )      |              |   | (60 | ) |
|                                                   |   |           |    |   |              |   |   |   |
| Unallocated common stock held by ESOP (66,484-         |   |           |    |   |              |   |   |   |
| 2011 and 13,691 shares-2010 unreleased)                |   |           | (632    | )      |              |   | (95 | ) |
| Treasury stock-at cost (-0- shares-2011 and            |   |           |    |   |              |   |   |   |
| 89,434-2010)                                           |   |           | -       |   |              |   | (1,848 | ) |
| Total stockholders' equity (1)                         |   |           | 37,008  |   |              |   | 24,110 |   |
|                                                   |   |           |    |   |              |   |   |   |
| Total liabilities and stockholders' equity             |   | $              | 236,197 |   |              | $      | 247,751 |   |

|   | (1) | Prior period per shares issued and outstanding figures were adjusted for comparability using the conversion ratio of 1.7427 due to completion of second step offering on January 4, 2011. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                                |   | Three months Ended |   |
|-----------------------------------------------------|--------|------------------------------|--------|
|                                                |   |                         |   |
|                                                |   | March 31, 2011     |   |   | March 31, 2010 |   |
|                                                |   | (Unaudited)                  |   |   | (Unaudited) |   |
| Interest and dividend income:                       |   |                         |   |   |   |   |
| Loans, including fees                               |   | $                            | 1,941  |   |   | $ | 1,836 |   |
| Investments-taxable:                                |   |                         |   |   |   |   |   |   |
| Securities                                          |   |                         | 147    |   |   |   | 196 |   |
| Mortgage-backed securities                          |   |                         | 126    |   |   |   | 95 |   |
| Other                                               |   |                         | 28     |   |   |   | 16 |   |
| Total interest income                               |   |                         | 2,242  |   |   |   | 2,143 |   |
|                                                |   |                         |   |   |   |   |   |   |
| Interest expense:                                   |   |                         |   |   |   |   |   |   |
| Interest-bearing demand deposits and savings        |   |                         | 86     |   |   |   | 111 |   |
| Certificates of deposit                             |   |                         | 331    |   |   |   | 377 |   |
| Total interest expense                              |   |                         | 417    |   |   |   | 488 |   |
|                                                |   |                         |   |   |   |   |   |   |
| Net interest income                                 |   |                         | 1,825  |   |   |   | 1,655 |   |
| Provision for loan losses                           |   |                         | 30     |   |   |   | 30 |   |
|                                                |   |                         |   |   |   |   |   |   |
| Net interest income after provision for loan losses |   |                         | 1,795  |   |   |   | 1,625 |   |
|                                                |   |                         |   |   |   |   |   |   |
| Noninterest income:                                 |   |                         |   |   |   |   |   |   |
| Customer service fees                               |   |                         | 196    |   |   |   | 160 |   |
| Gain (loss) on sale of assets                       |   |                         | 178    |   |   |   | (1 | ) |
| Other operating income                              |   |                         | 9      |   |   |   | 17 |   |
| Total noninterest income                            |   |                         | 383    |   |   |   | 176 |   |
|                                                |   |                         |   |   |   |   |   |   |
| Noninterest expense:                                |   |                         |   |   |   |   |   |   |
| Salaries and benefits                               |   |                         | 596    |   |   |   | 583 |   |
| Occupancy expense                                   |   |                         | 191    |   |   |   | 188 |   |
| FDIC deposit insurance                              |   |                         | 79     |   |   |   | 76 |   |
| Professional and supervisory fees                   |   |                         | 52     |   |   |   | 40 |   |
| Computer expense                                    |   |                         | 42     |   |   |   | 36 |   |
| Other operating expense                             |   |                         | 101    |   |   |   | 104 |   |
| Total noninterest expense                           |   |                         | 1,061  |   |   |   | 1,027 |   |
|                                                |   |                         |   |   |   |   |   |   |
| Income before income taxes                          |   |                         | 1,117  |   |   |   | 774 |   |
| Income tax expense                                  |   |                         | 381    |   |   |   | 263 |   |
| Net income                                          |   | $                            | 736    |   |   | $ | 511 |   |
|                                                |   |                         |   |   |   |   |   |   |
| Earnings per share (EPS)-basic                      |   | $                            | 0.31   |   |   | $ | 0.22 |   |
| Diluted EPS                                         |   | $                            | 0.30   |   |   | $ | 0.21 |   |

----

Table of Contents

|                                             |   | CommonStock |   |   | AdditionalPaid-InCapital |   |   | RetainedEarnings |   |   | AccumulatedOtherComprehensiveIncome |   |   | UnearnedMRRP |   |   | UnearnedESOP |   |   | TreasuryStock |   |   | Total  |   |
|--------------------------------------------------|--------|-------------|--------|--------|--------------------------|--------|--------|------------------|--------|--------|-------------------------------------|--------|--------|--------------|--------|--------|--------------|--------|--------|---------------|--------|--------|--------|--------|
|                                             |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |
| Balance January 1, 2010                          |   |        | 15     |   |                     |   | 16,572 |             |   |   | 7,314                               |   |   |         | 82     |   |         |   | (78    | )             |   |   | (155   | )      |   |   | (1,848 | ) |   |   | 21,902 |   |
|                                             |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                       |   |        | -      |   |                     |   | -      |             |   |   | 511                                 |   |   |         | -      |   |         |   | -      |          |   |   | -      |   |   |   | - |   |   |   | 511 |   |
| Change in net unrealized gain                    |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| on securities available for                      |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| sale, net of taxes and reclassification          |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustment $59                                   |   |        | -      |   |                     |   | -      |             |   |   | -                                   |   |   |         | 114    |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   | 114 |   |
| Total Comprehensive income                       |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   | 625 |   |
|                                             |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| MRRP shares awarded                              |   |        | -      |   |                     |   | -      |             |   |   | -                                   |   |   |         | -      |   |         |   | -      |          |   |   | -      |   |   |   | - |   |   |   | - |   |
| Dividends (.11 per share)                        |   |        | -      |   |                     |   | -      |             |   |   | (62                                 | )      |   |         | -      |   |         |   | -      |          |   |   | -      |   |   |   | - |   |   |   | (62 | ) |
| Amortization of awards under                     |   |        | -      |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| MRRP-net of release of MRRP/ESOP                 |   |        | -      |   |                     |   | 6      |             |   |   | -                                   |   |   |         | -      |   |         |   | -      |          |   |   | -      |   |   |   |   |   |   |   | 6 |   |
| Unearned MRRP/ESOP                               |   |        | -      |   |                     |   | -      |             |   |   | -                                   |   |   |         | -      |   |         |   | -      |          |   |   | -      |   |   |   |   |   |   |   | - |   |
| Treasury stock sold                              |   |        | -      |   |                     |   | -      |             |   |   | -                                   |   |   |         | -      |   |         |   | -      |          |   |   | -      |   |   |   | - |   |   |   | - |   |
|                                             |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance March 31, 2010                           |   |        | 15     |   |                     |   | 16,578 |             |   |   | 7,763                               |   |   |         | 196    |   |         |   | (78    | )             |   |   | (155   | )      |   |   | (1,848 | ) |   |   | 22,471 |   |
|                                             |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance January 1, 2011                          |   |        | 15     |   |                     |   | 16,575 |             |   |   | 9,256                               |   |   |         | 267    |   |         |   | (60    | )             |   |   | (95    | )      |   |   | (1,848 | ) |   |   | 24,110 |   |
| Net Income                                       |   |        | -      |   |                     |   | -      |             |   |   | 736                                 |   |   |         | -      |   |         |   | -      |          |   |   | -      |   |   |   | - |   |   |   | 736 |   |
| Change in net unrealized gain                    |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| on securities available for                      |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| sale, net of taxes and reclassification          |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustment $193                                  |   |        | -      |   |                     |   | -      |             |   |   | -                                   |   |   |         | (376   | )      |         |   |   |          |   |   |   |   |   |   |   |   |   |   | (376 | ) |
| Total Comprehensive income                       |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   | 360 |   |
|                                             |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of Common Stock, net of $899 conversion |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| cost                                             |   |        | 9      |   |                     |   | 13,035 |             |   |   | -                                   |   |   |         | -      |   |         |   | -      |          |   |   | (557   | )      |   |   | - |   |   |   | 12,487 |   |
| Exercise of stock options                        |   |        | -      |   |                     |   | 26     |             |   |   | -                                   |   |   |         | -      |   |         |   | -      |          |   |   | -      |   |   |   | - |   |   |   | 26 |   |
| Amortization of awards under                     |   |        | -      |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| MRRP-net of release of MRRP/ESOP                 |   |        | -      |   |                     |   | 5      |             |   |   | -                                   |   |   |         | -      |   |         |   | -      |          |   |   | -      |   |   |   |   |   |   |   | 5 |   |
| Unearned MRRP/ESOP                               |   |        | -      |   |                     |   | -      |             |   |   | -                                   |   |   |         | -      |   |         |   | -      |          |   |   | 20     |   |   |   |   |   |   |   | 20 |   |
| Treasury stock retired                           |   |        | -      |   |                     |   | -      |             |   |   | (1,848                              | )      |   |         | -      |   |         |   | -      |          |   |   | -      |   |   |   | 1,848 |   |   |   | - |   |
|                                             |   |        |   |   |                     |   |   |             |   |   |                                |   |   |         |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance March 31, 2011                           |   | $           | 24     |   |                     | $      | 29,641 |             |   | $      | 8,144                               |   |   | $            | (109   | )      |         | $      | (60    | )             |   | $      | (632   | )      |   | $ | - |   |   | $ | 37,008 |   |

----

Table of Contents

|                                                            |   | Three Months Ended |    |
|-----------------------------------------------------------------|--------|------------------------------|---------|
|                                                            |   |                         |    |
|                                                            |   | March 31, 2011     |    |   | March 31, 2010 |   |
|                                                            |   | (Unaudited)                  |    |   | (Unaudited) |   |
| Cash flows from operating activities:                           |   |                         |    |   |   |   |
| Net income                                                      |   | $                            | 736     |   |   | $ | 511 |   |
| Adjustments to reconcile net income to net cash                 |   |                         |    |   |   |   |   |   |
| provided by operating activities:                               |   |                         |    |   |   |   |   |   |
| Provision for loan losses                                       |   |                         | 30      |   |   |   | 30 |   |
| Depreciation and amortization                                   |   |                         | 70      |   |   |   | 75 |   |
| MRRP and other expenses                                         |   |                         | 25      |   |   |   | 21 |   |
| Net amortization of securities                                  |   |                         | 88      |   |   |   | - |   |
| Gain on sale of assets                                          |   |                         | (178    | ) |   |   | - |   |
| Loans held for sale-originated                                  |   |                         | (384    | ) |   |   | - |   |
| Loans held for sale-sold                                        |   |                         | 384     |   |   |   | - |   |
| Decrease in prepaid expenses and accrued income                 |   |                         | 644     |   |   |   | 109 |   |
| Increase (decrease) in interest payable and other liabilities   |   |                         | (207    | ) |   |   | 80 |   |
| Total adjustments                                               |   |                         | 472     |   |   |   | 315 |   |
| Net cash provided by operating activities                       |   |                         | 1,208   |   |   |   | 826 |   |
|                                                            |   |                         |    |   |   |   |   |   |
| Cash flows from investing activities:                           |   |                         |    |   |   |   |   |   |
| Sales, maturities and paydowns of securities available for sale |   |                         | 19,279  |   |   |   | 828 |   |
| Purchase of securities available for sale                       |   |                         | (18,398 | ) |   |   | - |   |
| Sales, maturities and paydowns of securities held to maturity   |   |                         | 136     |   |   |   | 8 |   |
| Net increase in loans                                           |   |                         | (1,761  | ) |   |   | (5,412 | ) |
| Purchase of premises and equipment, net                         |   |                         | -       |   |   |   | (19 | ) |
| Proceeds from sale of other assets                              |   |                         | 11      |   |   |   | - |   |
| Net cash used by investing activities                           |   |                         | (733    | ) |   |   | (4,595 | ) |
|                                                            |   |                         |    |   |   |   |   |   |
| Cash flows from financing activities:                           |   |                         |    |   |   |   |   |   |
| Net decrease in deposits                                        |   |                         | (14,016 | ) |   |   | (10,607 | ) |
| Proceeds from stock offering - net of costs                     |   |                         | 12,968  |   |   |   |   |   |
| Decrease in stock escrow liability                              |   |                         | (10,230 | ) |   |   |   |   |
| Proceeds from stock options exercised                           |   |                         | 26      |   |   |   |   |   |
| Dividends paid                                                  |   |                         | -       |   |   |   | (62 | ) |
| Net cash used by financing activities                           |   |                         | (11,252 | ) |   |   | (10,669 | ) |

----

Table of Contents

|                                             |   | Three Months Ended |    |
|--------------------------------------------------|--------|--------------------|---------|
|                                             |   |               |    |
|                                             |   | March 31, 2011     |    |   | March 31, 2010 |   |
|                                             |   | (Unaudited)        |    |   | (Unaudited) |   |
|                                             |   |               |    |   |   |   |
| Net decrease in cash and cash equivalents        |   |               | (10,777 | ) |   |   | (14,438 | ) |
|                                             |   |               |    |   |   |   |   |   |
| Cash and cash equivalents at beginning of period |   |               | 48,703  |   |   |   | 33,514 |   |
|                                             |   |               |    |   |   |   |   |   |
| Cash and cash equivalents at end of period       |   | $                  | 37,926  |   |   | $ | 19,076 |   |
|                                             |   |               |    |   |   |   |   |   |
| Supplemental disclosures:                        |   |               |    |   |   |   |   |   |
| Interest paid on deposits and borrowed funds     |   | $                  | 412     |   |   | $ | 494 |   |
| Income taxes paid                                |   | $                  | -       |   |   | $ | - |   |
|                                             |   |               |    |   |   |   |   |   |
| Noncash investing and financing activities:      |   |               |    |   |   |   |   |   |
| Transfer of loans to real estate owned           |   | $                  | -       |   |   | $ | 423 |   |
|                                             |   |               |    |   |   |   |   |   |
| Increase (decrease) in unrealized gain (loss) on |   |               |    |   |   |   |   |   |
| securities available for sale                    |   | $                  | (569    | ) |   | $ | 73 |   |

----

Table of Contents

| 1. | Summary of Significant Accounting Policies |
|----|--------------------------------------------|

----

Table of Contents

| 1. | Summary of Significant Accounting Policies (Continued) |
|----|--------------------------------------------------------|

----

Table of Contents

| 1. | Summary of Significant Accounting Policies (Continued) |
|----|--------------------------------------------------------|

----

Table of Contents

| 1. | Summary of Significant Accounting Policies (Continued) |
|----|--------------------------------------------------------|

----

Table of Contents

| 1. | Summary of Significant Accounting Policies (Continued) |
|----|--------------------------------------------------------|

----

Table of Contents

| 2. | Investment Securities |
|----|-----------------------|

|   |   |      |   |   | Gross      |   |   | Gross      |   |   | Estimated |   |
|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|-----------|--------|
|   |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Market    |   |
|   |   | Cost      |   |   | Gains      |   |   | Losses     |   |   | Value     |   |
|   |   |      |   |   |       |   |   |       |   |   |      |   |
| GNMA   |   | $         | 25     |   |       | $      | -      |       |   | $      | -         |   |   | $ | 25 |   |
| FNMA   |   |      | 106    |   |       |   | 1      |       |   |   | -         |   |   |   | 107 |   |
| FHLMC  |   |      | 8      |   |       |   | -      |       |   |   | -         |   |   |   | 8 |   |
|   |   | $         | 139    |   |       | $      | 1      |       |   | $      | -         |   |   | $ | 140 |   |

|                |   | March 31, 2011 |   |
|---------------------|--------|--------------------------|--------|
|                |   | Gross                    |   |   | Gross |   |   | Estimated |   |   |   |   |
|                |   | Amortized                |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                |   | Cost                     |   |   | Gains |   |   | Losses |   |   | Value |   |
|                |   |                     |   |   |   |   |   |   |   |   |   |   |
| Municipals          |   | $                        | 230    |   |   | $ | 3 |   |   | $ | - |   |   | $ | 233 |   |
| Agency Bonds (FNMA/ |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| /FHLMC/FFCB/FHLB)   |   |                     | 40,064 |   |   |   | 151 |   |   |   | 167 |   |   |   | 40,048 |   |
| CMO – FHLMC   |   |                     | 2,001  |   |   |   | - |   |   |   | 19 |   |   |   | 1,982 |   |
| FNMA pools          |   |                     | 12,939 |   |   |   | 13 |   |   |   | 79 |   |   |   | 12,873 |   |
| FHLMC pools         |   |                     | 6,010  |   |   |   | 20 |   |   |   | 87 |   |   |   | 5,943 |   |
|                |   | $                        | 61,244 |   |   | $ | 187 |   |   | $ | 352 |   |   | $ | 61,079 |   |

|                   |   | December 31, 2010 |   |
|------------------------|--------|-----------------------------|--------|
|                   |   | Gross                       |   |   | Gross |   |   | Estimated |   |   |   |   |
|                   |   | Amortized                   |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                   |   | Cost                        |   |   | Gains |   |   | Losses |   |   | Value |   |
|                   |   |                        |   |   |   |   |   |   |   |   |   |   |
| Asset Management Funds |   | $                           | 6,795  |   |   | $ | 121 |   |   | $ | - |   |   | $ | 6,916 |   |
| FHLMC Voting Common    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  |   |                        | 11     |   |   |   | - |   |   |   | 7 |   |   |   | 4 |   |
| Municipals             |   |                        | 230    |   |   |   | 4 |   |   |   | - |   |   |   | 234 |   |
| Agency Bonds (FNMA/    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB)                  |   |                        | 35,118 |   |   |   | 216 |   |   |   | 110 |   |   |   | 35,224 |   |
| CMO                    |   |                        | 2,027  |   |   |   | - |   |   |   | 20 |   |   |   | 2,007 |   |
| FNMA ARM pools         |   |                        | 9,683  |   |   |   | 77 |   |   |   | 49 |   |   |   | 9,711 |   |
| FHLMC ARM pools        |   |                        | 1,870  |   |   |   | 48 |   |   |   | 2 |   |   |   | 1,916 |   |
| GNMA ARM pools         |   |                        | 6,299  |   |   |   | 125 |   |   |   | - |   |   |   | 6,424 |   |
|                   |   | $                           | 62,033 |   |   | $ | 591 |   |   | $ | 188 |   |   | $ | 62,436 |   |

----

Table of Contents

| 2. | Investment Securities (Continued) |
|----|-----------------------------------|

|                        |   | Available for Sale |   |   | Held to Maturity |   |
|-----------------------------|--------|------------------------------|--------|--------|----------------------------|--------|
|                        |   | Amortized                    |   |   | Fair                       |   |   | Amortized |   |   | Fair |   |
|                        |   | Cost                         |   |   | Value                      |   |   | Cost |   |   | Value |   |
|                        |   |                         |   |   |                       |   |   |   |   |   |   |   |
| One year or less            |   | $                            | 5,250  |   |                       | $      | 5,282 |   |   | $ | - |   |   | $ | - |   |
| After 1 year thru 5 years   |   |                         | 36,137 |   |                       |   | 36,091 |   |   |   | - |   |   |   | - |   |
| After 5 years thru 10 years |   |                         | 17,856 |   |                       |   | 17,724 |   |   |   | - |   |   |   | - |   |
| After 10 years              |   |                         | 2,001  |   |                       |   | 1,982 |   |   |   | - |   |   |   | - |   |
|                        |   | $                            | 61,244 |   |                       | $      | 61,079 |   |   | $ | - |   |   | $ | - |   |

|               |   | Less than 12 Months |   |   | 12 Months or Greater |   |   | Total  |   |
|--------------------|--------|------------------------------------|--------|--------|-------------------------------------|--------|--------|--------|--------|
|               |   |                               |   |   | Gross                               |   |   |   |   |   | Gross |   |   |   |   |   | Gross |   |
|               |   | Fair                               |   |   | Unrealized                          |   |   | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|               |   | Value                              |   |   | Losses                              |   |   | Value  |   |   | Losses |   |   | Value |   |   | Losses |   |
|               |   |                               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2011:    |   |                               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CMO - FHLMC        |   | $                                  | 1,982  |   |                                | $      | 19     |   |   | $ | - |   |   | $ | - |   |   | $ | 1,982 |   |   | $ | 19 |   |
| Federal agencies   |   |                               | 21,830 |   |                                |   | 167    |   |   |   | - |   |   |   | - |   |   |   | 21,830 |   |   |   | 167 |   |
| Mortgage backed    |   |                               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities         |   |                               | 9,943  |   |                                |   | 166    |   |   |   | - |   |   |   | - |   |   |   | 9,943 |   |   |   | 166 |   |
|               |   | $                                  | 33,755 |   |                                | $      | 352    |   |   | $ | - |   |   | $ | - |   |   | $ | 33,755 |   |   | $ | 352 |   |
|               |   |                               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010: |   |                               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal agencies   |   | $                                  | 12,720 |   |                                | $      | 110    |   |   | $ | - |   |   | $ | - |   |   | $ | 12,720 |   |   | $ | 110 |   |
| FHLMC stock        |   |                               | 3      |   |                                |   | 7      |   |   |   | - |   |   |   | - |   |   |   | 3 |   |   |   | 7 |   |
| Mortgage backed    |   |                               |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities         |   |                               | 5,283  |   |                                |   | 67     |   |   |   | 423 |   |   |   | 5 |   |   |   | 5,706 |   |   |   | 72 |   |
|               |   | $                                  | 18,006 |   |                                | $      | 184    |   |   | $ | 423 |   |   | $ | 5 |   |   | $ | 18,429 |   |   | $ | 189 |   |

----

Table of Contents

| 2. | Investment Securities (Continued) |
|----|-----------------------------------|

| 3. | Loans and Allowance for Loan Losses |
|----|-------------------------------------|

|                                     |   | 2011   |    |   | 2010   |   |
|------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                     |   |   |    |   |   |   |
| First mortgage conventional loans:       |   |   |    |   |   |   |
| Secured by one-to-four-family residences |   | $      | 56,267  |   |   | $      | 56,281 |   |
| Commercial real estate                   |   |   | 26,323  |   |   |   | 27,131 |   |
| Commercial, other than real estate       |   |   | 12,638  |   |   |   | 12,177 |   |
| Land                                     |   |   | 13,773  |   |   |   | 11,473 |   |
| Consumer loans (including overdrafts of  |   |   |    |   |   |   |   |   |
| $282 and $44)                            |   |   | 12,464  |   |   |   | 12,156 |   |
| Loans secured by deposits                |   |   | 5,581   |   |   |   | 6,300 |   |
| Construction loans                       |   |   | 4,764   |   |   |   | 4,464 |   |
| Total                                    |   |   | 131,810 |   |   |   | 129,982 |   |
|                                     |   |   |    |   |   |   |   |   |
| Less: Allowance for loan losses          |   |   | (1,314  | )      |   |   | (1,286 | ) |
| Unfunded construction loan commitments   |   |   | (1,575  | )      |   |   | (1,506 | ) |
|                                     |   |   |    |   |   |   |   |   |
| Loans, net                               |   | $      | 128,921 |   |   | $      | 127,190 |   |

----

Table of Contents

| 3. | Loans and Allowance for Loan Losses (Continued) |
|----|-------------------------------------------------|

|                                |   | 2011   |   |   | 2010   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|
|                                |   |   |   |   |   |   |
| Balance, beginning of period        |   | $      | 1,286  |   |   | $      | 1,001 |   |
| Provision for loan losses           |   |   | 30     |   |   |   | 370 |   |
| Recoveries                          |   |   | 2      |   |   |   | 37 |   |
| Loans charged off-net of recoveries |   |   | (4     | )      |   |   | (122 | ) |
| Balance, end of period              |   | $      | 1,314  |   |   | $      | 1,286 |   |

| 4. | Other Assets |
|----|--------------|

|                         |   | 2011   |   |   | 2010   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|
|                         |   |   |   |   |   |   |
| Cash value of life insurance |   | $      | 566    |   |   | $      | 566 |   |
| Prepaid expenses             |   |   | 708    |   |   |   | 808 |   |
| Deferred income taxes        |   |   | 366    |   |   |   | 614 |   |
| Conversion cost/other        |   |   | 1      |   |   |   | 482 |   |
|                         |   | $      | 1,641  |   |   | $      | 2,470 |   |

----

Table of Contents

| 5. | Deposits |
|----|----------|

|                                        |   | 2011   |    |   | 2010   |   |
|---------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                        |   |   |    |   |   |   |
| Demand deposit accounts (including official |   |   |    |   |   |   |
| checks of $2,069 in 2011 and $346 in 2010)  |   | $      | 102,418 |   |   | $      | 119,083 |   |
| Passbook savings                            |   |   | 13,413  |   |   |   | 13,500 |   |
| Certificates of deposit:                    |   |   |    |   |   |   |   |   |
| 0.00% – 0.99%                         |   |   | 6,577   |   |   |   | 104 |   |
| 1.00% – 1.99%                         |   |   | 70,685  |   |   |   | 72,329 |   |
| 2.00% – 2.99%                         |   |   | 4,691   |   |   |   | 6,282 |   |
| 3.00% – 3.99%                         |   |   | 285     |   |   |   | 451 |   |
| 4.00% – 4.99%                         |   |   | -       |   |   |   | 336 |   |
| Total certificates of deposit               |   |   | 82,238  |   |   |   | 79,502 |   |
| Total deposits                              |   | $      | 198,069 |   |   | $      | 212,085 |   |

|                |   | 2012   |   |   | 2013   |   |   | 2014   |   |   | Total  |   |
|---------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                |   |   |   |   |   |   |   |   |   |   |   |   |
| Maturing 2011       |   | $      | 60,894 |   |   |   |   |   |   |   |   |   |   |
| 0.00% – 0.99% |   | $      | 30     |   |   | $      | -      |   |   | $      | -      |   |   | $ | 30 |   |
| 1.00% – 1.99% |   |   | 17,236 |   |   |   | 1,955  |   |   |   | 692    |   |   |   | 19,883 |   |
| 2.00% – 2.99% |   |   | 367    |   |   |   | 1,064  |   |   |   | -      |   |   |   | 1,431 |   |
| Total               |   | $      | 17,633 |   |   | $      | 3,019  |   |   | $      | 692    |   |   | $ | 82,238 |   |

| 6. | Federal Home Loan Bank Advances |
|----|---------------------------------|

| 7. | Pension/ESOP Plan |
|----|-------------------|

----

Table of Contents

| 7. | Pension/ESOP Plan (Continued) |
|----|-------------------------------|

| 8. | Retained Earnings and Regulatory Capital |
|----|------------------------------------------|

----

Table of Contents

| 8. | Retained Earnings and Regulatory Capital (Continued) |
|----|------------------------------------------------------|

|                      |   |   |   |   |                    |   |   | To be Well    |   |
|---------------------------|--------|--------|--------|--------|-------------------------|--------|--------|-------------------------|--------|
|                      |   |   |   |   |                    |   |   | Capitalized Under  |   |
|                      |   |   |   |   | For Capital        |   |   | Prompt Corrective  |   |
|                      |   | Actual |   |   | Adequacy Purposes: |   |   | Action Provisions: |   |
|                      |   | Amount |   |   | Ratio                   |   |   | Amount                  |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                      |   |   |   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |
| As of March 31, 2011      |   |   |   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |
| Total capital (to Risk    |   |   |   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |
| Weighted Assets)          |   | $      | 31,645 |   |                    |   | 25.41  | %                       |   | $ | 39,962 |   |   |   | 38.0 | % |   | $ | 312,452 |   |   |   | 310.0 | % |
| Core (Tier I) Capital (to |   |   |   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk Weighted Assets)     |   | $      | 30,331 |   |                    |   | 24.36  | %                       |   |   | N/A |   |   |   | N/A |   |   | $ | 37,471 |   |   |   | 36.0 | % |
| Core (Tier I) Capital (to |   |   |   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets)             |   | $      | 30,331 |   |                    |   | 12.84  | %                       |   | $ | 39,448 |   |   |   | 34.0 | % |   | $ | 311,810 |   |   |   | 35.0 | % |
| Tangible Capital          |   |   |   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (to Total Assets)         |   | $      | 30,331 |   |                    |   | 12.84  | %                       |   | $ | 33,543 |   |   |   | 31.5 | % |   |   | N/A |   |   |   | N/A |   |
|                      |   |   |   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2010   |   |   |   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total capital (to Risk    |   |   |   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Assets)          |   | $      | 24,480 |   |                    |   | 20.26  | %                       |   | $ | 39,666 |   |   |   | 38.0 | % |   | $ | 312,083 |   |   |   | 310.0 | % |
| Core (Tier I) Capital (to |   |   |   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk Weighted Assets)     |   | $      | 23,143 |   |                    |   | 19.15  | %                       |   |   | N/A |   |   |   | N/A |   |   | $ | 37,250 |   |   |   | 36.0 | % |
| Core (Tier I) Capital (to |   |   |   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets)             |   | $      | 23,143 |   |                    |   | 9.37   | %                       |   | $ | 39,875 |   |   |   | 34.0 | % |   | $ | 312,343 |   |   |   | 35.0 | % |
| Tangible Capital          |   |   |   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (to Total Assets)         |   | $      | 23,143 |   |                    |   | 9.37   | %                       |   | $ | 33,703 |   |   |   | 31.5 | % |   |   | N/A |   |   |   | N/A |   |

|                                              |   | March 31, |   |   | December 31, |   |
|---------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                              |   | 2011           |   |   | 2010              |   |
|                                              |   |           |   |   |              |   |
| GAAP equity                                       |   | $              | 30,331 |   |              | $      | 23,410 |   |
| Accumulated other comprehensive unrealized gains  |   |           | --     |   |              |   | (267 | ) |
| Tier 1 capital                                    |   |           | 30,331 |   |              |   | 23,143 |   |
| Unrealized gains on available-for-sale securities |   |           | --     |   |              |   | 51 |   |
| Allowance for loan losses                         |   |           | 1,314  |   |              |   | 1,286 |   |
| Total capital                                     |   | $              | 31,645 |   |              | $      | 24,480 |   |

| 9. | Fair Value of Financial Instruments |
|----|-------------------------------------|

----

Table of Contents

| 9. | Fair Value of Financial Instruments (Continued) |
|----|-------------------------------------------------|

----

Table of Contents

| 9. | Fair Value of Financial Instruments (Continued) |
|----|-------------------------------------------------|

|                                |   | March 31, |    |   | December 31, |   |
|-------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                |   | 2011           |    |   | 2010              |   |
|                                |   | Carrying       |    |   | Fair              |   |   | Carrying |   |   | Fair |   |
|                                |   | Amount         |    |   | Value             |   |   | Amount |   |   | Value |   |
|                                |   |           |    |   |              |   |   |   |   |   |   |   |
| Financial assets:                   |   |           |    |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents           |   | $              | 37,926  |   |              | $      | 37,926 |   |   | $ | 48,702 |   |   | $ | 48,702 |   |
| Securities available for sale       |   |           | 61,079  |   |              |   | 61,079 |   |   |   | 62,436 |   |   |   | 62,436 |   |
| Securities held to maturity         |   |           | -       |   |              |   | - |   |   |   | 139 |   |   |   | 140 |   |
| FNBB & FHLB stock               |   |           | 449     |   |              |   | 449 |   |   |   | 449 |   |   |   | 449 |   |
| Loans, net                          |   |           | 128,921 |   |              |   | 129,330 |   |   |   | 127,190 |   |   |   | 126,795 |   |
| Accrued interest receivable         |   |           | 700     |   |              |   | 700 |   |   |   | 804 |   |   |   | 804 |   |
|                                |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:              |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                            |   |           | 198,069 |   |              |   | 198,069 |   |   |   | 212,085 |   |   |   | 212,276 |   |
| Accrued interest payable            |   |           | 334     |   |              |   | 334 |   |   |   | 311 |   |   |   | 311 |   |
|                                |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Off-balance sheet credit related to |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| financial instruments:              |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to extend credit        |   |           | 34,090  |   |              |   | 34,090 |   |   |   | 16,378 |   |   |   | 16,378 |   |

|   | · | Level 1 valuations, where the valuation is based on quoted market prices for identical assets or liabilities traded in active markets (which include exchanges and over-the-counter markets with sufficient volume), |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 2 valuations, where the valuation is based on quoted market prices for similar instruments traded in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market, and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3 valuations, where the valuation is generated from model-based techniques that use significant assumptions not observable in the market, but observable based on the Company’s-specific data. These unobservable assumptions reflect the Company’s own estimates for assumptions that market participants would use in pricing the asset or liability. Valuation techniques typically include option pricing models, discounted cash flow models and similar techniques, but may also include the use of market prices of assets or liabilities that are not directly comparable to the subject asset or liability. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 9. | Fair Value of Financial Instruments (Continued) |
|----|-------------------------------------------------|

|                          |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Fair Value |   |
|-------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|--------|-----------------|--------|
| March 31, 2011:               |   |         |   |   |         |   |   |         |   |   |            |   |
| Securities available for sale |   | $            | -      |   |         | $      | 61,079 |         |   | $      | -               |   |   | $ | 61,079 |   |
|                          |   |         |   |   |         |   |   |         |   |   |            |   |   |   |   |   |
| December 31, 2010:            |   |         |   |   |         |   |   |         |   |   |            |   |   |   |   |   |
| Securities available for sale |   |         | -      |   |         |   | 62,436 |         |   |   | -               |   |   |   | 62,436 |   |

| 10. | Segment Reporting |
|-----|-------------------|

| 11. | Stock Based Benefit Plans |
|-----|---------------------------|

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| 11. | Stock Based Benefit Plans(Continued) |
|-----|--------------------------------------|

|                              |   | Total Options |    |
|-----------------------------------|--------|--------------------|---------|
|                              |   | Number             |    |   | Average |   |   | Average |   |
|                              |   | of                 |    |   | Exercise |   |   | Intrinsic |   |
|                              |   | Shares             |    |   | Price |   |   | Value |   |
|                              |   |               |    |   |   |   |   |   |   |
| Outstanding-December 31, 2007     |   |               | 82,046  |   |   | $ | 8.82 |   |   |   |   |
| Granted                           |   |               | 4,888   |   |   | $ | 11.96 |   |   |   |   |
| Outstanding-December 31, 2008     |   |               | 86,934  |   |   | $ | 9.00 |   |   |   |   |
| Granted                           |   |               | 20,867  |   |   | $ | 6.31 |   |   |   |   |
| Outstanding-December 31, 2010 and |   |               |    |   |   |   |   |   |   |   |   |
| 2009                              |   |               | 107,801 |   |   | $ | 8.65 |   |   | $ | 441,984 |   |
| Forfeited and exercised           |   |               | (4,891  | ) |   |   |   |   |   |   |   |   |
| Outstanding-March 31, 2011        |   |               | 102,910 |   |   |   |   |   |   |   |   |   |
| Options exercisable at period end |   |               | 87,457  |   |   |   |   |   |   | $ | 358,574 |   |

|                         |   | Options Outstanding |    |
|------------------------------|--------|--------------------------|---------|
|                         |   |                     |    | Weighted |   | Weighted |   |
|                         |   |                     |    | Average |   | Average |   |
| Range of                |   | Number                   |    | Remaining |   | Exercise |   |
| Exercise Prices         |   | Outstanding              |    | Contractual Life |   | Price |   |
|                         |   |                     |    |   |   |   |   |
| $5.00 - $7.50                |   |                     | 20,867  |   | 8 years |   | $ | 6.31 |   |
| $7.51 - $10.00               |   |                     | 77,155  |   | 3 years |   | $ | 8.82 |   |
| $10.01 and above             |   |                     | 4,888   |   | 7 years |   | $ | 11.96 |   |
|                         |   |                     |    |   |   |   |   |   |   |
| Outstanding at end of period |   |                     | 102,910 |   | 4.2 years    |   | $ | 8.46 |   |

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| 11. | Stock Based Benefit Plans(Continued) |
|-----|--------------------------------------|

|                                  |   |           |   |   | Weighted                  |   |
|---------------------------------------|--------|----------------|--------|--------|---------------------------|--------|
|                                  |   | Number of |   |   | Grant Date Fair |   |
|                                  |   | Shares         |   |   | Value                     |   |
|                                  |   |           |   |   |                      |   |
| Non-vested options, December 31, 2010 |   |           | 19,625 |   |                      | $      | 7.39 |   |
| Vested                                |   |           | (4,172 | )      |                      | $      | 7.39 |   |
| Non-vested options, March 31, 2011    |   |           | 15,453 |   |                      | $      | 7.38 |   |

| 12. | Supplemental Retirement Benefit Agreement |
|-----|-------------------------------------------|

| 13. | Earnings Per Share (EPS) |
|-----|--------------------------|

| 14. | Plan of Conversion |
|-----|--------------------|

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| 14. | Plan of Conversion (Continued) |
|-----|--------------------------------|

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| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------------|

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|                                                                   |   |                                 |   |   | Three Months Ended March 31, |   |
|------------------------------------------------------------------------|--------|--------------------------------------|--------|--------|--------------------------------------------------|--------|
|                                                                   |   |                                 |   |   | 2011                                             |   |   | 2010 |   |
|                                                                   |   | Yield/RateAt March31, 2011 |   |   | AverageBalance                                   |   |   | Interest |   |   | AverageYield/Rate(1) |   |   | AverageBalance |   |   | Interest |   |   | AverageYield/Rate |   |
| Interest-earning assets:                                               |   | (Dollars in thousands)               |   |
| Loans receivable(1)                                                    |   |                                 | 6.02   | %      |                                             | $      | 126,082 |   |   | $ | 1,941 |   |   |   | 6.16 | % |   | $ | 117,477 |   |   | $ | 1,836 |   |   |   | 6.25 | % |
| Investment securities                                                  |   |                                 | 1.79   |   |                                             |   | 58,377 |   |   |   | 273 |   |   |   | 1.87 |   |   |   | 50,210 |   |   |   | 291 |   |   |   | 2.32 |   |
| Other interest-earning assets                                          |   |                                 | 0.32   |   |                                             |   | 47,446 |   |   |   | 28 |   |   |   | 0.24 |   |   |   | 26,974 |   |   |   | 16 |   |   |   | .24 |   |
| Total interest-earning assets                                          |   |                                 | 3.98   | %      |                                             |   | 231,905 |   |   |   | 2,242 |   |   |   | 3.87 | % |   |   | 194,661 |   |   |   | 2,143 |   |   |   | 4.40 | % |
| Non-interest-earning assets                                            |   |                                 |   |   |                                             |   | 12,909 |   |   |   |   |   |   |   |   |   |   |   | 12,492 |   |   |   |   |   |   |   |   |   |
| Total assets                                                           |   |                                 |   |   |                                             |   | 244,814 |   |   |   |   |   |   |   |   |   |   |   | 207,153 |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                          |   |                                 |   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings, NOW and moneymarket accounts                                  |   |                                 | 0.37   |   |                                             |   | 95,177 |   |   |   | 86 |   |   |   | 0.36 |   |   |   | 85,657 |   |   |   | 111 |   |   |   | 0.52 |   |
| Certificates of deposit                                                |   |                                 | 1.61   |   |                                             |   | 81,320 |   |   |   | 331 |   |   |   | 1.63 |   |   |   | 75,953 |   |   |   | 377 |   |   |   | 1.99 |   |
| Total deposits                                                         |   |                                 | 0.96   |   |                                             |   | 176,497 |   |   |   | 417 |   |   |   | 0.95 |   |   |   | 161,810 |   |   |   | 488 |   |   |   | 1.21 |   |
| Other borrowings                                                       |   |                                 | --     |   |                                             |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Total interest-bearing liabilities                                     |   |                                 | 0.96   | %      |                                             |   | 176,497 |   |   |   | 417 |   |   |   | 0.95 | % |   |   | 161,610 |   |   |   | 488 |   |   |   | 1.21 | % |
| Non-interest-bearing liabilities                                       |   |                                 |   |   |                                             |   | 35,468 |   |   |   |   |   |   |   |   |   |   |   | 24,189 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                      |   |                                 |   |   |                                             |   | 211,965 |   |   |   |   |   |   |   |   |   |   |   | 185,799 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity(2)                                          |   |                                 |   |   |                                             |   | 32,849 |   |   |   |   |   |   |   |   |   |   |   | 21,355 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity(1)                    |   |                                 |   |   |                                             | $      | 244,814 |   |   |   |   |   |   |   |   |   |   | $ | 207,154 |   |   |   |   |   |   |   |   |   |
| Net interest-earning assets                                            |   |                                 |   |   |                                             | $      | 55,408 |   |   |   |   |   |   |   |   |   |   | $ | 33,051 |   |   |   |   |   |   |   |   |   |
| Net interest income; average interestrate spread                       |   |                                 | 3.02   | %      |                                             |   |   |   |   | $ | 1,825 |   |   |   | 2.92 | % |   |   |   |   |   | $ | 1,655 |   |   |   | 3.19 | % |
| Net interest margin(3)                                                 |   |                                 |   |   |                                             |   |   |   |   |   |   |   |   |   | 3.15 | % |   |   |   |   |   |   |   |   |   |   | 3.40 | % |
| Average interest-earning assets toaverage interest-bearing liabilities |   |                                 |   |   |                                             |   |   |   |   |   |   |   |   |   | 131.39 | % |   |   |   |   |   |   |   |   |   |   | 120.45 | % |

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| (1) | Includes loans held for sale. |
|-----|-------------------------------|

| (2) | Includes retained earnings and other comprehensive income (loss). |
|-----|-------------------------------------------------------------------|

| (3) | Equals net interest income divided by average interest-earning assets. |
|-----|------------------------------------------------------------------------|

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3 –

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| No.  |   | Description                                                           |
|------|--------|-----------------------------------------------------------------------|
| 31.1 |   | Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer |
| 31.2 |   | Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer |
| 32.1 |   | Section 1350 Certification                                            |

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SIG

|               | MINDEN BANCORP, INC. |
|--------------------|----------------------|
|               |                 |   |
| Date: May 16, 2011 | By:                  | /s Jack E. Byrd, Jr. |
|               |                 | Jack E. Byrd, Jr. |
|               |                 | President and Chief Executive Officer |
|               |                 |   |
| Date: May 16, 2011 | By:                  | /s/ Becky T. Harrell |
|               |                 | Becky T. Harrell |
|               |                 | Chief Financial Officer |

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