----

----

----

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

**OR**

| o | TRANSITION                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE                  ACT OF                  1934 |
|---|--------------------------------------------------------------------------------------------------------------------------------------------|

----

| FEDERAL                                                        | 61-1479859                              |
|----------------------------------------------------------------|-----------------------------------------|
| (State                  or other jurisdiction of               | (I.R.S.                  Employer       |
| incorporation                  or organization)                | Identification                  Number) |
|                                                           |                                    |
| 31                  Boonton Turnpike, Lincoln Park, New Jersey | 07035                                   |
| (Address                  of principal executive offices)      | (Zip                  Code)             |

**X **

----

|                                            | Page                                                                                                                                                                     |
|-------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| PART                  I - FINANCIAL INFORMATION | Number                                                                                                                                                                   |
|                                            |                                                                                                                                                                     |
| Item                  1:                        | Financial                  Statements                                                                                                                                    |   |
|                                            |                                                                                                                                                                     |   |
|                                            | Consolidated                    Statements of Financial Condition at September 30, 2007 and                    December 31, 2006 (Unaudited)                        | 1 |
|                                            |                                                                                                                                                                          |   |
|                                            | Consolidated                    Statements of Income for the Three Months and Nine Months                    Ended September 30, 2007 and 2006 (Unaudited)          | 2 |
|                                            |                                                                                                                                                                          |   |
|                                            | Consolidated                    Statements of Changes in Stockholders’ Equity for the Nine Months                    Ended September 30, 2007 and 2006 (Unaudited) | 3 |
|                                            |                                                                                                                                                                          |   |
|                                            | Consolidated                    Statements of Cash Flows for the Nine Months Ended September                    30, 2007 and 2006 (Unaudited)                       | 4 |
|                                            |                                                                                                                                                                     |   |
|                                            | Notes                  to Consolidated Financial Statements (Unaudited)                                                                                                  | 5–                  7 |
|                                            |                                                                                                                                                                     |   |
| Item                  2:                        | Management’s                  Discussion and Analysis of Financial                  Condition and Results of Operations                                            | 8–                  15 |
|                                            |                                                                                                                                                                     |   |
| Item                    3:                      | Controls                  and Procedures                                                                                                                                 | 16 |
|                                            |                                                                                                                                                                     |   |
| PART                    II - OTHER INFORMATION  | 17-18                                                                                                                                                                    |
|                                            |                                                                                                                                                                     |   |
| Item                    1:                      | Legal                  Proceedings                                                                                                                                       | 17 |
|                                            |                                                                                                                                                                     |   |
| Item                    2:                      | Unregistered                  Sales of Equity Securities and Use of Proceeds                                                                                             | 17 |
|                                            |                                                                                                                                                                     |   |
| Item                    3:                      | Defaults                  Upon Senior Securities                                                                                                                         | 17 |
|                                            |                                                                                                                                                                     |   |
| Item                    4:                      | Submission                  of Matters to a Vote of Security Holders                                                                                                     | 17 |
|                                            |                                                                                                                                                                     |   |
| Item                    5:                      | Other                  Information                                                                                                                                       | 17 |
|                                            |                                                                                                                                                                     |   |
| Item                    6:                      | Exhibits                  and Reports on Form 8-K                                                                                                                        | 18 |
|                                            |                                                                                                                                                                     |   |
| SIGNATURES                                 | 19                                                                                                                                                                       |

----

|                                                                                                                    |   | September                    30, |        |   | December                    31, |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|-------------|--------|---------------------------------|--------|
| ASSETS                                                                                                                  |   | 2007                             |        |   | 2006                            |   |
|                                                                                                                    |   |                             |        |   |                            |   |
| Cash                    and amounts due from depository institutions                                                    |   | $                                | 1,201,611   |   |                            | $      | 1,228,459 |   |
| Interest-bearing                    deposits in other banks                                                             |   |                             | 1,353,679   |   |                            |   | 1,372,050 |   |
|                                                                                                                    |   |                             |        |   |                            |   |   |   |
| Total                    cash and cash equivalents                                                                      |   |                             | 2,555,290   |   |                            |   | 2,600,509 |   |
|                                                                                                                    |   |                             |        |   |                            |   |   |   |
| Term                    deposits                                                                                        |   |                             | 292,935     |   |                            |   | 189,771 |   |
| Securities                    available for sale                                                                        |   |                             | 2,610,255   |   |                            |   | 2,573,628 |   |
| Securities                    held to maturity                                                                          |   |                             | 18,973,702  |   |                            |   | 18,334,915 |   |
| Loans                    receivable, net of allowance for loan losses of                    2007  $187,000;   |   |                             |        |   |                            |   |   |   |
|   and                    2006 $136,000**;** respectively                                                      |   |                             | 73,710,140  |   |                            |   | 67,450,821 |   |
| Premises                    and equipment                                                                               |   |                             | 1,602,982   |   |                            |   | 851,357 |   |
| Federal                    Home Loan Bank of New York stock, at cost                                                    |   |                             | 1,121,400   |   |                            |   | 1,121,400 |   |
| Interest                    receivable                                                                                  |   |                             | 560,278     |   |                            |   | 489,495 |   |
| Other                    assets                                                                                         |   |                             | 418,535     |   |                            |   | 358,258 |   |
|                                                                                                                    |   |                             |        |   |                            |   |   |   |
| Total                    assets                                                                                         |   | $                                | 101,845,517 |   |                            | $      | 93,970,154 |   |
|                                                                                                                    |   |                             |        |   |                            |   |   |   |
| LIABILITIES                    AND STOCKHOLDERS' EQUITY                                                                 |   |                             |        |   |                            |   |   |   |
|                                                                                                                    |   |                             |        |   |                            |   |   |   |
| Liabilities:                                                                                                            |   |                             |        |   |                            |   |   |   |
| Deposits:                                                                                                               |   |                             |        |   |                            |   |   |   |
|      Non-interest                    bearing deposits                                          |   | $                                | 1,145,663   |   |                            | $      | 768,473 |   |
| Interest                    bearing deposits                                                                            |   |                             | 64,437,642  |   |                            |   | 57,075,421 |   |
|    Total                    deposits                                                                     |   |                             | 65,583,305  |   |                            |   | 57,843,894 |   |
|                                                                                                                    |   |                             |        |   |                            |   |   |   |
| Advances                    from Federal Home Loan Bank of New York                                                     |   |                             | 21,922,578  |   |                            |   | 21,978,331 |   |
| Advance                    payments by borrowers for taxes and insurance                                                |   |                             | 424,837     |   |                            |   | 360,771 |   |
| Other                    liabilities                                                                                    |   |                             | 600,749     |   |                            |   | 542,848 |   |
|                                                                                                                    |   |                             |        |   |                            |   |   |   |
| Total                    liabilities                                                                                    |   |                             | 88,531,469  |   |                            |   | 80,725,844 |   |
|                                                                                                                    |   |                             |        |   |                            |   |   |   |
| Stockholders'                    equity:                                                                                |   |                             |        |   |                            |   |   |   |
| Preferred                    stock; no par value; 1,000,000 shares authorized;                                          |   |                             |        |   |                            |   |   |   |
|   none                    issued or outstanding                                                               |   |                             | -           |   |                            |   | - |   |
| Common                    stock; $.01 par value; 5,000,000 shares authorized;                                           |   |                             |        |   |                            |   |   |   |
|   1,851,500                    issued; 1,845,290 shares outstanding at September 30,                    2007; |   |                             | 18,515      |   |                            |   | 18,515 |   |
|   1,851,500                    shares outstanding at December 31, 2006                                        |   |                             |        |   |                            |   |   |   |
| Additional                    paid-in capital                                                                           |   |                             | 7,536,814   |   |                            |   | 7,484,694 |   |
| Retained                    earnings - substantially restricted                                                         |   |                             | 6,313,240   |   |                            |   | 6,252,608 |   |
| Treasury                    stock, at cost; 6210 shares                                                                 |   |                             | (49,991     | )      |                            |   | - |   |
| Unearned                    ESOP shares                                                                                 |   |                             | (332,341    | )      |                            |   | (346,861 | ) |
| Accumulated                    other comprehensive loss                                                                 |   |                             | (172,189    | )      |                            |   | (164,646 | ) |
|                                                                                                                    |   |                             |        |   |                            |   |   |   |
| Total                    stockholders' equity                                                                           |   |                             | 13,314,048  |   |                            |   | 13,244,310 |   |
|                                                                                                                    |   |                             |        |   |                            |   |   |   |
| Total                    liabilities and stockholders' equity                                                           |   | $                                | 101,845,517 |   |                            | $      | 93,970,154 |   |

----

|                                                                                                    |   | Three                    Months Ended              |      |   | Nine                    Months Ended               |   |
|---------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|-----------|--------|----------------------------------------------------|--------|
|                                                                                                    |   | September                    30,    |      |   | September                    30,    |   |
|                                                                                                    |   | 2007                                               |      |   | 2006                                               |   |   | 2007 |   |   | 2006 |   |
| Interest                    income:                                                                     |   |                                               |      |   |                                               |   |   |   |   |   |   |   |
| Loans,                    including fees                                                                |   | $                                                  | 1,072,582 |   |                                               | $      | 976,562 |   |   | $ | 3,078,564 |   |   | $ | 2,837,339 |   |
| Securities                                                                                              |   |                                               | 272,602   |   |                                               |   | 268,009 |   |   |   | 810,732 |   |   |   | 794,391 |   |
| Other                    interest-earning assets                                                        |   |                                               | 15,906    |   |                                               |   | 13,648 |   |   |   | 42,315 |   |   |   | 40,293 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
|  Total                    interest income                                                          |   |                                               | 1,361,090 |   |                                               |   | 1,258,219 |   |   |   | 3,931,611 |   |   |   | 3,672,023 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Interest                    expense:                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                |   |                                               | 572,620   |   |                                               |   | 380,586 |   |   |   | 1,601,007 |   |   |   | 1,033,578 |   |
| Advances                    and other borrowed money                                                    |   |                                               | 233,333   |   |                                               |   | 295,162 |   |   |   | 694,572 |   |   |   | 827,866 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
|  Total                    interest expense                                                         |   |                                               | 805,953   |   |                                               |   | 675,748 |   |   |   | 2,295,579 |   |   |   | 1,861,444 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net                    interest income                                                                  |   |                                               | 555,137   |   |                                               |   | 582,471 |   |   |   | 1,636,032 |   |   |   | 1,810,579 |   |
| (Recovery                    of) provision for loan losses                                              |   |                                               | -         |   |                                               |   | (1,000 | ) |   |   | 51,000 |   |   |   | 2,616 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net                    interest income after (recovery of) provision for loan                    losses |   |                                               | 555,137   |   |                                               |   | 583,471 |   |   |   | 1,585,032 |   |   |   | 1,807,963 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                    income:                                                                 |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Fees                    and service charges                                                             |   |                                               | 28,479    |   |                                               |   | 23,630 |   |   |   | 77,996 |   |   |   | 60,265 |   |
| Net                    gains on calls of securities held to maturity                                    |   |                                               | -         |   |                                               |   | - |   |   |   | - |   |   |   | 500 |   |
| Net                    gains on calls of securities available for sale                                  |   |                                               | 5,488     |   |                                               |   | - |   |   |   | 15,669 |   |   |   | 9,612 |   |
| Miscellaneous                                                                                           |   |                                               | 8,137     |   |                                               |   | 6,738 |   |   |   | 19,653 |   |   |   | 17,677 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
|  Total                    non-interest income                                                      |   |                                               | 42,104    |   |                                               |   | 30,368 |   |   |   | 113,318 |   |   |   | 88,054 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                    expenses:                                                               |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                    and employee benefits                                                       |   |                                               | 257,357   |   |                                               |   | 222,102 |   |   |   | 715,798 |   |   |   | 635,690 |   |
| Net                    occupancy expense of premises                                                    |   |                                               | 43,876    |   |                                               |   | 28,679 |   |   |   | 99,482 |   |   |   | 83,931 |   |
| Equipment                                                                                               |   |                                               | 98,152    |   |                                               |   | 66,565 |   |   |   | 224,842 |   |   |   | 183,416 |   |
| Advertising                                                                                             |   |                                               | 14,226    |   |                                               |   | 12,849 |   |   |   | 39,550 |   |   |   | 33,087 |   |
| Legal                    Expense                                                                        |   |                                               | 11,901    |   |                                               |   | 28,546 |   |   |   | 56,990 |   |   |   | 98,042 |   |
| Audit                    and Accounting                                                                 |   |                                               | 28,019    |   |                                               |   | 29,618 |   |   |   | 80,568 |   |   |   | 72,380 |   |
| Federal                    insurance premium                                                            |   |                                               | 1,752     |   |                                               |   | 1,713 |   |   |   | 5,233 |   |   |   | 5,283 |   |
| Miscellaneous                                                                                           |   |                                               | 141,007   |   |                                               |   | 143,715 |   |   |   | 403,395 |   |   |   | 411,790 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
|  Total                    non-interest expenses                                                    |   |                                               | 596,290   |   |                                               |   | 533,787 |   |   |   | 1,625,858 |   |   |   | 1,523,619 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Income                    before income taxes                                                           |   |                                               | 951       |   |                                               |   | 80,051 |   |   |   | 72,492 |   |   |   | 372,398 |   |
| Income                    taxes (benefit)                                                               |   |                                               | (12,320   | )      |                                               |   | 26,663 |   |   |   | 8,283 |   |   |   | 137,968 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net                    income                                                                           |   | $                                                  | 13,271    |   |                                               | $      | 53,388 |   |   | $ | 64,209 |   |   | $ | 234,430 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net                    income per common share:                                                         |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                   |   | $                                                  | 0.01      |   |                                               | $      | 0.03 |   |   | $ | 0.04 |   |   | $ | 0.13 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                    average number of common shares and                                         |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
|   common                    stock equivalents outstanding:                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                   |   |                                               | 1,788,362 |   |                                               |   | 1,783,985 |   |   |   | 1,788,333 |   |   |   | 1,794,711 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net                    income per common share:                                                         |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                 |   | $                                                  | 0.01      |   |                                               | $      | 0.03 |   |   | $ | 0.04 |   |   | $ | 0.13 |   |
| Weighted                    average number of common shares and                                         |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
|   common                    stock equivalents outstanding:                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                 |   |                                               | 1,788,362 |   |                                               |   | 1,786,067 |   |   |   | 1,788,333 |   |   |   | 1,797,662 |   |
|                                                                                                    |   |                                               |      |   |                                               |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   | **Accumulated**   |   |         |      |   |
|-------------------------------------------------------------------------------------------------|--------|------------|------------|--------|----------------|--------|---------------|--------------|--------|--------|---------------|--------|--------|--------------|-------------|--------|-------------------|--------|--------------|-----------|--------|
|                                                                                            |   |       |       |   | **Additional** |   |          |         |   |   |          |   |   | **Unearned** |        |   | **Other**         |   |         |      |   |
|                                                                                            |   | **Common** |       |   | **Paid-in**    |   |          | **Retained** |   |   | **Treasury**  |   |   | **ESOP**     |        |   | **Comprehensive** |   |         |      |   |
|                                                                                            |   | **Stock**  |       |   | **Capital**    |   |          | **Earnings** |   |   | **Stock**     |   |   | **Shares**   |        |   | **Loss**          |   |         | **Total** |   |
| **Balance-December                    31, 2005**                                                |   | $          | 18,515     |   |           | $      | 7,776,418     |         |   | $      | 5,982,726     |   |   | $            | -           |   |              | $      | (366,220     | )         |   | $ | (23,901 | ) |   | $ | 13,387,538 |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| Comprehensive                    income:                                                        |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
|      Net                    income for the nine                        |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| months                    ended                                                                 |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
|                            September 30, 2006                |   |       | -          |   |           |   | -             |         |   |   | 234,430       |   |   |         | -           |   |              |   | -            |      |   |   | - |   |   |   | 234,430 |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| Other                    comprehensive income:                                                  |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| Unrealized                    holding gain                                                      |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| on securities                                                                              |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| available                    for sale, net of deferred                                          |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| income                    taxes of  $5,164                                            |   |       | -          |   |           |   | -             |         |   |   | -             |   |   |         | -           |   |              |   | -            |      |   |   | 7,720 |   |   |   | 7,720 |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| **     Total                    Comprehensive Income**                 |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   | ** ** | **242,150** |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| ESOP                    shares committed to be released                                         |   |       | -          |   |           |   | -             |         |   |   | (2,232        | )      |   |         | -           |   |              |   | 14,520       |      |   |   | - |   |   |   | 12,288 |   |
| Purchase                    of restricted Stock                                                 |   |       | -          |   |           |   | (355,778      | )            |   |   | -             |   |   |         | -           |   |              |   | -            |      |   |   | - |   |   |   | (355,778 | ) |
| Restricted                    stock earned                                                      |   |       | -          |   |           |   | 21,536        |         |   |   | -             |   |   |         | -           |   |              |   | -            |      |   |   | - |   |   |   | 21,536 |   |
| Stock                    options                                                                |   |       | -          |   |           |   | 26,263        |         |   |   | -             |   |   |         | -           |   |              |   | -            |      |   |   | - |   |   |   | 26,263 |   |
| Dividends                    paid                                                               |   |       | -          |   |           |   | -             |         |   |   | (40,882       | )      |   |         | -           |   |              |   | -            |      |   |   | - |   |   |   | (40,882 | ) |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| **Balance-September                    30, 2006**                                               |   | **$**      | **18,515** |   |           | **$**  | **7,468,439** |         |   | **$**  | **6,174,042** |   |   | **$**        | **-**       |   |              | **$**  | **(351,700** | **)**     |   | **$** | **(16,181** | **)** |   | **$** | **13,293,115** |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| **Balance-December                    31, 2006**                                                |   | $          | 18,515     |   |           | $      | 7,484,694     |         |   | $      | 6,252,608     |   |   | $            | -           |   |              | $      | (346,861     | )         |   | $ | (164,646 | ) |   | **$** | **13,244,310** |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| Comprehensive                    income:                                                        |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
|      Net                    income for the nine months                 |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
|      ended                    September 30, 2007                       |   |       | -          |   |           |   | -             |         |   |   | 64,209        |   |   |         | -           |   |              |   | -            |      |   |   | - |   |   |   | 64,209 |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| Other                    comprehensive income:                                                  |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
|      Unrealized                    holding loss on securities          |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
|      available                    for sale, net of deferred            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
|      income                    taxes  (benefit) of ($ 2,960) |   |       | -          |   |           |   | -             |         |   |   | -             |   |   |         | -           |   |              |   | -            |      |   |   | (20,466 | ) |   |   | (20,466 | ) |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| Directors'                    reitirement plan, net of deferred                                 |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   | - |   |
|      taxes                    of $8,614                                |   |       | -          |   |           |   | -             |         |   |   | -             |   |   |         | -           |   |              |   | -            |      |   |   | 12,923 |   |   |   | 12,923 |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| **Total                    Comprehensive Income**                                               |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   | ** ** | **56,666** |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| ESOP                    shares committed to be released                                         |   |       | -          |   |           |   | -             |         |   |   | (3,577        | )      |   |         | -           |   |              |   | 14,520       |      |   |   | - |   |   |   | 10,943 |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| Restricted                    stock earned                                                      |   |       | -          |   |           |   | 24,458        |         |   |   | -             |   |   |         | -           |   |              |   | -            |      |   |   | - |   |   |   | 24,458 |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| Stock                    options                                                                |   |       | -          |   |           |   | 27,662        |         |   |   | -             |   |   |         | -           |   |              |   | -            |      |   |   | - |   |   |   | 27,662 |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| Treasury                    stock purchased                                                     |   |       | -          |   |           |   | -             |         |   |   | -             |   |   |         | (49,991     | )      |              |   | -            |      |   |   | - |   |   |   | (49,991 | ) |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
|                                                                                            |   |       |       |   |           |   |          |         |   |   |          |   |   |         |        |   |              |   |         |      |   |   |   |   |   |   |   |   |
| **Balance-September                    30, 2007**                                               |   | **$**      | **18,515** |   |           | **$**  | **7,536,814** |         |   | **$**  | **6,313,240** |   |   | **$**        | **(49,991** | **)**  |              | **$**  | **(332,341** | **)**     |   | **$** | **(172,189** | **)** |   | **$** | **13,314,048** |   |

----

|                                                                                   |   | Nine                    Months Ended               |        |
|----------------------------------------------------------------------------------------|--------|----------------------------------------------------|-------------|
|                                                                                   |   | September                    30,    |        |
|                                                                                   |   | 2007                                               |        |   | 2006 |   |
| Cash                    flows from operating activities:                               |   |                                               |        |   |   |   |
| Net                    income                                                          |   | $                                                  | 64,209      |   |   | $ | 234,430 |   |
| Adjustments                    to reconcile net income to net                          |   |                                               |        |   |   |   |   |   |
|  cash                    provided by operating activities:                        |   |                                               |        |   |   |   |   |   |
| Depreciation                    of premises and equipment                              |   |                                               | 54,946      |   |   |   | 50,611 |   |
| Amortization                    and accretion, net                                     |   |                                               | 56,298      |   |   |   | 24,973 |   |
| Gain                    on calls of securities held to maturity                        |   |                                               | -           |   |   |   | (500 | ) |
| Net                    gain on sales of securities available for sale                  |   |                                               | (15,669     | ) |   |   | (9,612 | ) |
| Provision                    for loan losses                                           |   |                                               | 51,000      |   |   |   | 2,616 |   |
| Increase                    in interest receivable                                     |   |                                               | (70,783     | ) |   |   | (60,259 | ) |
| (Increase)                    decrease in other assets                                 |   |                                               | (56,560     | ) |   |   | 198,673 |   |
| (Decrease)                    increase in accrued interest payable                     |   |                                               | (3,407      | ) |   |   | 27,549 |   |
| Increase                    (decrease) in other liabilities                            |   |                                               | 71,475      |   |   |   | (241,668 | ) |
| ESOP                    shares committed to be released                                |   |                                               | 10,943      |   |   |   | 12,288 |   |
| Restricted                    stock earned                                             |   |                                               | 24,459      |   |   |   | 21,536 |   |
| Stock                    options                                                       |   |                                               | 27,661      |   |   |   | 26,263 |   |
| Net                    cash provided by operating activities                           |   |                                               | 214,572     |   |   |   | 286,900 |   |
|                                                                                   |   |                                               |        |   |   |   |   |   |
| Cash                    flows from investing activities:                               |   |                                               |        |   |   |   |   |   |
| Purchases                    of term deposits                                          |   |                                               | (297,000    | ) |   |   | - |   |
| Proceeds                    from maturities of term deposits                           |   |                                               | 198,000     |   |   |   | - |   |
| Purchases                    of securities available for sale                          |   |                                               | (371,381    | ) |   |   | (86,867 | ) |
| Proceeds                    from maturities and calls of securities available for sale |   |                                               | -           |   |   |   | 500,000 |   |
| Principal                    repayments on securities available for sale               |   |                                               | 18,302      |   |   |   | 23,421 |   |
| Proceeds                    from sales of securities available for sale                |   |                                               | 312,710     |   |   |   | 24,298 |   |
| Purchases                    of securities held to maturity                            |   |                                               | (934,000    | ) |   |   | (1,000,000 | ) |
| Proceeds                    from maturities and calls of securities held to maturity   |   |                                               | 100,000     |   |   |   | 710,500 |   |
| Principal                    repayments on securities held to maturity                 |   |                                               | 160,009     |   |   |   | 201,729 |   |
| Net                    increase in loans receivable                                    |   |                                               | (6,335,179  | ) |   |   | (2,680,526 | ) |
| Additions                    to premises and equipment                                 |   |                                               | (806,571    | ) |   |   | (35,202 | ) |
| Purchase                    of Federal Home Loan Bank of New York stock                |   |                                               | (214,800    | ) |   |   | (367,050 | ) |
| Redemption                    of Federal Home Loan Bank of New York stock              |   |                                               | 214,800     |   |   |   | 329,350 |   |
| Net                    cash used in investing activities                               |   |                                               | (7,955,110  | ) |   |   | (2,380,347 | ) |
|                                                                                   |   |                                               |        |   |   |   |   |   |
| Cash                    flows from financing activities:                               |   |                                               |        |   |   |   |   |   |
| Net                    increase in deposits                                            |   |                                               | 7,736,997   |   |   |   | 1,700,413 |   |
| Proceeds                    from advances from Federal Home Loan Bank of New York      |   |                                               | 45,300,000  |   |   |   | 68,750,000 |   |
| Repayments                    of advances from Federal Home Loan Bank of New York      |   |                                               | (45,355,753 | ) |   |   | (68,288,136 | ) |
| Net                    increase in payments by borrowers for taxes and insurance       |   |                                               | 64,066      |   |   |   | 7,967 |   |
| Purchase                    of restricted stock                                        |   |                                               | -           |   |   |   | (355,778 | ) |
| Purchase                    of treasury stock                                          |   |                                               | (49,991     | ) |   |   | - |   |
| Dividends                    paid                                                      |   |                                               | -           |   |   |   | (40,882 | ) |
| Net                    cash provided by financing activities                           |   |                                               | 7,695,319   |   |   |   | 1,773,584 |   |
|                                                                                   |   |                                               |        |   |   |   |   |   |
| Net                    decrease in cash and cash equivalents                           |   |                                               | (45,219     | ) |   |   | (319,863 | ) |
| Cash                    and cash equivalents - beginning                               |   |                                               | 2,600,509   |   |   |   | 2,316,178 |   |
|                                                                                   |   |                                               |        |   |   |   |   |   |
| Cash                    and cash equivalents - ending                                  |   | $                                                  | 2,555,290   |   |   | $ | 1,996,315 |   |
|                                                                                   |   |                                               |        |   |   |   |   |   |
| Supplemental                    information:                                           |   |                                               |        |   |   |   |   |   |
| Cash                    paid during the period for:                                    |   |                                               |        |   |   |   |   |   |
| Interest                    on deposits and borrowings                                 |   | $                                                  | 2,298,986   |   |   | $ | 1,835,323 |   |
| Income                    taxes                                                        |   | $                                                  | 10,574      |   |   | $ | 389,797 |   |

----

----

----

|                                                   |   | Three                    Months Ended |   |   | Nine                    Months Ended  |   |
|--------------------------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|
|                                                   |   | September                    30, 2007 |   |   | September                    30, 2007 |   |
|                                                   |   |                                  |   |   |                                  |   |
| Service                    Cost                        |   | $                                     | 2,441  |   |                                  | $      | 7,323 |   |
| Interest                    Cost                       |   |                                  | 4,884  |   |                                  |   | 14,652 |   |
| Unrecognized                    Past Service Liability |   |                                  | 7,179  |   |                                  |   | 21,537 |   |
|                                                   |   |                                  |   |   |                                  |   |   |   |
| TOTAL                                                  |   | $                                     | 14,504 |   |                                  | $      | 43,512 |   |

----

**Forward-Looking        Statements.**

**Comparison        of Financial Condition at September 30, 2007 and December 31,        2006**

----

**Comparison        of Financial Condition at September 30, 2007 and December 31, 2006        (Cont’d.)**

**Comparison        of Operating Results for the Three Months Ended September 30, 2007 and        2006**

**General.        **

**Interest        Income. **

----

**Comparison        of Operating Results for the Three Months Ended September 30, 2007 and 2006        (Cont’d.)**

**Interest        Expense. **

**Net        Interest Income. **

**Provision        for Loan Losses. **

**Non-interest        Income**

----

**Comparison        of Operating Results for the Three Months Ended September 30, 2007 and 2006        (Cont’d.)**

**Non-interest        Expenses. **

**Income        Tax Expense. **

**Comparison        of Operating Results for the Nine Months Ended September 30, 2007 and        2006**

**General.        **

**Interest        Income. **

----

**Comparison        of Operating Results for the Nine Months Ended September 30, 2007 and 2006        (Cont’d.)**

**Interest        Expense. **

**Net        Interest Income. **

**Provision        for Loan Losses**

**Non-interest        Income.**

**Non-interest        Expenses. **

**Income        Tax Expense. **

----

**Management        of Market Risk**

**General**

|   | · | We                  maintain moderate levels of short-term liquid assets.  At                  September 30, 2007, our short-term liquid assets totaled $2.6                  million;                                                                                                                                                                                                                                                                                                                    |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | · | We                  originate for portfolio adjustable-rate mortgage loans and adjustable                  home                  equity lines of credit.  At September 30, 2007, our                  adjustable-rate mortgage loans totaled $13.9 million and our adjustable                  home equity lines of credit totaled $5.0 million;                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | · | We                  attempt to increase the maturity of our liabilities as market conditions                  allow.  In particular, since 2004, we have emphasized                  intermediate- to long-term FHLB advances as a source of                  funds.  At September 30, 2007 we had $6.3 million of FHLB                  advances with terms to maturity of between three and fifteen 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.**

----

**Management        of Market Risk (Cont’d.)**

| **Change                  in**              |   |   | **Net                  Portfolio Value**    |         |       | **Net                  Portfolio Value as a Percentage** |
|---------------------------------------------|--------|--------|---------------------------------------------|--------------|------------|----------------------------------------------------------|
| **Interest                  Rates**         |   |   | **(Dollars                  in Thousands)** |         |       | of                    Present Value of Assets            |
| **(basis                  points)**         |   |   |                                        |         |       |                                                     |   |   |   |   |   |   |   |   |
|                                        |   |   | **Estimated**                               |         |       | **Amount                  of**                           |   |   | **Percent                  of** |   |   | **NPV** |   |   |
|                                        |   |   | **NPV**                                     |    | **Change** |                                                | **Change** |   |   | **Ratio** |   | **Change                    in Basis Points** |
|                                        |   |   |                                        |         |       |                                                     |   |   |   |   |   |   |   |   |
| +200                                        |   |   | $                                           | 12,596       |       |                                                     | $ | (4,113 | ) |   |   | (24.6 | )% |   |   | 13.54% |   | (320)                  basis points |
| +100                                        |   |   |                                        | 14,682       |       |                                                     |   | (2,027 | ) |   |   | (12.1 | ) |   |   | 15.23   |   |  (151)basis                  points |
|                       0 |   |   |                                        | 16,709       |       |                                                     |   | — |   |   |   | — |   |   |   | 16.74   |   | —                  basis points |
| -100                                        |   |   |                                        | 17,656       |       |                                                     |   | 947 |   |   |   | 5.7 |   |   |   | 17.25   |   | 51                  basis points |
|                                   |   |   |                                        |         |       |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| -200                                        |   |   |                                        | 18,607       |       |                                                     |   | 1,898 |   |   |   | 11.4 |   |   |   | 17.72   |   | 98                  basis points |

**Liquidity        and Capital Resources**

----

**Liquidity        and Capital Resources (Cont’d.)**

|                                                        |   |                                      |   |   |         |   |   | Minimum                    Capital    |   |   | Corrective |   |
|-------------------------------------------------------------|--------|-------------------------------------------|--------|--------|--------------|--------|--------|---------------------------------------|--------|--------|------------|--------|
|                                                        |   | Actual                                    |   |   | Requirements |   |   | Actions                    Provisions |   |
|                                                        |   | Amount                                    |   |   | Ratio        |   |   | Amount                                |   |   | Ratio      |   |   | Amount |   |   | Ratio |   |
|                                                        |   | (dollars                    in thousands) |   |   |         |   |   |                                  |   |   |       |   |   |   |   |
|                                                        |   |                                      |   |   |         |   |   |                                  |   |   |       |   |   |   |   |   |   |   |
| Total                    Capital                            |   |                                      |   |   |         |   |   |                                  |   |   |       |   |   |   |   |   |   |   |
|   (to                    risk-weighted assets)    |   | $                                         | 9,615  |   |         |   | 17.31  | %                                     |   | $      | 4,443      |   |   |   | 8.00 | % |   | $ | 5,554 |   |   |   | 10.00 | % |
|                                                        |   |                                      |   |   |         |   |   |                                  |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                    1 Capital                           |   |                                      |   |   |         |   |   |                                  |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   (to                    risk-weighted assets)    |   |                                      | 9,428  |   |         |   | 16.98  | %                                     |   |   | 2,222      |   |   |   | 4.00 | % |   |   | 3,332 |   |   |   | 6.00 | % |
|                                                        |   |                                      |   |   |         |   |   |                                  |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Core                    (Tier 1) Capital                    |   |                                      |   |   |         |   |   |                                  |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   (to                    average total assets)    |   |                                      | 9,428  |   |         |   | 9.69   | %                                     |   |   | 3,890      |   |   |   | 4.00 | % |   |   | 4,863 |   |   |   | 5.00 | % |
|                                                        |   |                                      |   |   |         |   |   |                                  |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible                    Capital                         |   |                                      |   |   |         |   |   |                                  |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   (to                    adjusted average assets) |   |                                      | 9,428  |   |         |   | 9.69   | %                                     |   |   | 1,459      |   |   |   | 1.50 | % |   |   | - |   |   |   | - |   |

----

----

|   | a)     | Not                  applicable |
|--------|--------|---------------------------------|
|   |   |                            |
|   | b)     | Not                  applicable |

|                                              |   | Total                  Numberof                  SharesPurchased |   |   | Average                  PricePaid                  ForShares |   |   | Total                  Number ofShares                  PurchasedUnder                  a PubliclyAnnouncedRepurchase                  Plan |   |   | Maximum                  Numberof                  Shares ThatMay                  Yet BePurchased                  Under Repurchased Plan |   |
|---------------------------------------------------|--------|------------------------------------------------------------------|--------|--------|---------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|
| July                  1– July 31            |   |                                                             | -      |   |                                                          |   | -      |                                                                                                                                        |   |   | -                                                                                                                                          |   |   |   | - |   |
| August                  1 – August 31       |   |                                                             | -      |   |                                                          |   | -      |                                                                                                                                        |   |   | -                                                                                                                                          |   |   |   | - |   |
| September                  1 – September 30 |   |                                                             | 6,210  |   |                                                          | $      | 8.05   |                                                                                                                                        |   |   | 6,210                                                                                                                                      |   |   |   | 35,570 |   |

----

|   | 11.0   | Computation                  of earnings per share.                                                                                                                                                 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                |
|   | 31.1   | Certification                  of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley                  Act of 2002.                                                               |
|   | 31.2   | Certification                  of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley                  Act of 2002.                                                               |
|   | 32     | Certification                  of Chief Executive Officer and Chief Financial Officer Pursuant                  to Section                  906 of the Sarbanes-Oxley Act of                  2002. |

----

|                                     | LINCOLN                  PARK BANCORP                  |
|------------------------------------------|--------------------------------------------------------|
|                                     |                                                   |
|                                     |                                                   |
| Date:                  November 14, 2007 | /s/                  David G. Baker                    |
|                                     | David                  G. Baker                        |
|                                     | President                  and Chief Executive Officer |
|                                     |                                                   |
|                                     |                                                   |
| Date:                  November 14, 2007 | /s/                  Nandini Mallya                    |
|                                     | Nandini                  Mallya                        |
|                                     | Vice                  President and Treasurer          |
|                                     | Chief                  Financial Officer)              |