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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549





FORM 10-Q





(Mark One)



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

For the quarterly period ended March 31, 2009

OR



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

For the transition period from  to

Commission file number: 001-33573





Louisiana Bancorp, Inc.

(Exact Name of Registrant as Specified in Its Charter)







|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Louisiana                                                      |  | 20-8715162                          
|(State or Other Jurisdiction of Incorporation or Organization) |  | (I.R.S. Employer Identification No.)
|                                                               | 
|1600 Veterans Memorial Boulevard, Metairie, Louisiana          |  | 70005                               
|(Address of Principal Executive Offices)                       |  | (Zip Code)                          

(504) 834-1190

(Registrants Telephone Number, Including Area Code)





Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.    x  Yes     ̈  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files.     ̈   Yes     ̈  No

Indicate by check mark
whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting
company in Rule 12b-2 of the Exchange Act. (Check One):



|                           |  |                      |  |                                               |  |                             
|-------------------------- |  | -------------------- |  | --------------------------------------------- |  | ----------------------------
|Large accelerated filer   ̈ |  | Accelerated filer   ̈ |  | Non-accelerated filer   ̈                      |  | Smaller reporting company  x
|                           |  |                      |  | (Do not check if a smaller reporting company) |  |                             

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

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuers
classes of common stock, as of the latest practicable date: As of May 12, 2009, there were 5,368,649 shares of the Registrants common stock outstanding.









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PART I - FINANCIAL INFORMATION

Interim financial information required by Rule 10-01 of Regulation S-X and Item 303 of Regulation S-K is included in this Form 10-Q as referenced below.



|                            |  |                                                                                       |  |     
|--------------------------- |  | ------------------------------------------------------------------------------------- |  | ----
|                            |  |                                                                                       |  | Page
|Item 1 -                    |  | Financial Statements                                                                  |  | 3   
|                            |  |                                                                                      
|Item 2 -                    |  | Managements Discussion and Analysis of Financial Condition and Results of Operations |  | 17  
|                            |  |                                                                                      
|Item 3 -                    |  | Quantitative and Qualitative Disclosures About Market Risk                            |  | 22  
|                            |  |                                                                                      
|Item 4T -                   |  | Controls and Procedures                                                               |  | 22  
|                            | 
|PART II - OTHER INFORMATION |  |                                                                                      
|                            |  |                                                                                      
|Item 1 -                    |  | Legal Proceedings                                                                     |  | 22  
|                            |  |                                                                                      
|Item 1A -                   |  | Risk Factors                                                                          |  | 23  
|                            |  |                                                                                      
|Item 2 -                    |  | Unregistered Sales of Equity Securities and Use of Proceeds                           |  | 23  
|                            |  |                                                                                      
|Item 3 -                    |  | Defaults Upon Senior Securities                                                       |  | 23  
|                            |  |                                                                                      
|Item 4 -                    |  | Submission of Matters to a Vote of Security Holders                                   |  | 23  
|                            |  |                                                                                      
|Item 5 -                    |  | Other Information                                                                     |  | 23  
|                            |  |                                                                                      
|Item 6 -                    |  | Exhibits                                                                              |  | 23  
|                            | 
|Signatures                  |  | 24                                                                                   



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LOUISIANA BANCORP, INC.

Consolidated Balance Sheets



|                                                                                                                                                                                         |  |                      |         |   |            |   |         |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------- | ------- | - | ---------- | - | ------- | -
|                                                                                                                                                                                         |  | (unaudited)3/31/2009 |         |   | 12/31/2008 |  
|                                                                                                                                                                                         |  | (in thousands)       |        
|Assets                                                                                                                                                                                   |  |                      |         |   |            |   |         |  
|Cash and Due from Banks                                                                                                                                                                  |  | $                    | 2,731   |   |            | $ | 3,308   |  
|Short-term Interest-Bearing Deposits                                                                                                                                                     |  |                      | 9,074   |   |            |   | 1,666   |  
|                                                                                                                                                                                         |  |                      |         |   |            |   |         |  
|Total Cash and Cash Equivalents                                                                                                                                                          |  |                      | 11,805  |   |            |   | 4,974   |  
|Certificates of Deposit                                                                                                                                                                  |  |                      | 2,269   |   |            |   | 1,425   |  
|Securities Available-for-Sale, at Fair Value(amortized cost of $62,114, and $78,065, respectively)                                                                                       |  |                      | 64,453  |   |            |   | 80,091  |  
|Securities Held-to-Maturity, at Amortized Cost(estimated fair value of $116,140, and $127,255, respectively)                                                                             |  |                      | 111,551 |   |            |   | 123,429 |  
|Loans, Net of Allowance for Loan Losses of $2,009, and $1,952, respectively                                                                                                              |  |                      | 120,641 |   |            |   | 111,236 |  
|Accrued Interest Receivable                                                                                                                                                              |  |                      | 1,382   |   |            |   | 1,649   |  
|Stock in Federal Home Loan Bank                                                                                                                                                          |  |                      | 2,296   |   |            |   | 2,293   |  
|Premises and Equipment, Net                                                                                                                                                              |  |                      | 1,823   |   |            |   | 1,804   |  
|Other Assets                                                                                                                                                                             |  |                      | 545     |   |            |   | 548     |  
|                                                                                                                                                                                         |  |                      |         |   |            |   |         |  
|Total Assets                                                                                                                                                                             |  | $                    | 316,765 |   |            | $ | 327,449 |  
|                                                                                                                                                                                         |  |                      |         |   |            |   |         |  
|Liabilities and Shareholders Equity                                                                                                                                                     |  |                      |         |   |            |   |         |  
|Deposits                                                                                                                                                                                 |  |                      |         |   |            |   |         |  
|Noninterest-bearing                                                                                                                                                                      |  | $                    | 4,150   |   |            | $ | 4,219   |  
|Interest-bearing                                                                                                                                                                         |  |                      | 164,094 |   |            |   | 156,370 |  
|                                                                                                                                                                                         |  |                      |         |   |            |   |         |  
|Total deposits                                                                                                                                                                           |  |                      | 168,244 |   |            |   | 160,589 |  
|Borrowings                                                                                                                                                                               |  |                      | 63,943  |   |            |   | 76,660  |  
|Advance Payments by Borrowers for Taxes and Insurance                                                                                                                                    |  |                      | 1,297   |   |            |   | 1,639   |  
|Accrued Interest Payable                                                                                                                                                                 |  |                      | 626     |   |            |   | 664     |  
|Other Liabilities                                                                                                                                                                        |  |                      | 1,703   |   |            |   | 2,170   |  
|                                                                                                                                                                                         |  |                      |         |   |            |   |         |  
|Total Liabilities                                                                                                                                                                        |  |                      | 235,813 |   |            |   | 241,722 |  
|                                                                                                                                                                                         |  |                      |         |   |            |   |         |  
|Commitments and Contigencies                                                                                                                                                             |  |                      |        |   |            |   |        |  
|Shareholders Equity                                                                                                                                                                     |  |                      |         |   |            |   |         |  
|Common Stock, $.01 Par Value, 40,000,000 Shares Authorized;6,345,732 Shares Issued; 5,425,439 Shares Outstanding at March 31, 2009
and 5,931,312 Shares Outstanding at December 31, 2008 |  |                      | 63      |   |            |   | 63      |  
|Additional Paid-in-Capital                                                                                                                                                               |  |                      | 62,316  |   |            |   | 62,305  |  
|Unearned ESOP Shares                                                                                                                                                                     |  |                      | (4,696  | ) |            |   | (4,696  | )
|Unearned Recognition and Retention Plan Shares                                                                                                                                           |  |                      | (2,646  | ) |            |   | (3,200  | )
|Treasury Stock, at Cost (920,293 Shares at March 31, 2009 and 414,420 Shares at December 31, 2008)                                                                                       |  |                      | (11,495 | ) |            |   | (5,208  | )
|Retained Earnings                                                                                                                                                                        |  |                      | 35,866  |   |            |   | 35,126  |  
|Accumulated Other Comprehensive Income                                                                                                                                                   |  |                      | 1,544   |   |            |   | 1,337   |  
|                                                                                                                                                                                         |  |                      |         |   |            |   |         |  
|Total Shareholders Equity                                                                                                                                                               |  |                      | 80,952  |   |            |   | 85,727  |  
|                                                                                                                                                                                         |  |                      |         |   |            |   |         |  
|Total Liabilities and Shareholders Equity                                                                                                                                               |  | $                    | 316,765 |   |            | $ | 327,449 |  
|                                                                                                                                                                                         |  |                      |         |   |            |   |         |  

See accompanying notes to unaudited consolidated financial statements.



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LOUISIANA BANCORP, INC.

Consolidated Statements of Income (Unaudited)



|                                                               |  |                                       |           |      |   |           |  
|-------------------------------------------------------------- |  | ------------------------------------- | --------- | ---- | - | --------- | -
|                                                               |  | For the Three MonthsEnded March 31,   |          
|                                                               |  | 2009                                  |           | 2008 |  
|                                                               |  | (in thousands, except per share data) |          
|Interest and Dividend Income                                   |  |                                       |           |      |   |           |  
|Loans, Including Fees                                          |  | $                                     | 1,838     |      | $ | 1,683     |  
|Mortgage Backed Securities                                     |  |                                       | 2,207     |      |   | 1,420     |  
|Investment Securities                                          |  |                                       | 213       |      |   | 561       |  
|Other interest-bearing deposits                                |  |                                       | 18        |      |   | 153       |  
|                                                               |  |                                       |           |      |   |           |  
|Total Interest and Dividend Income                             |  |                                       | 4,276     |      |   | 3,817     |  
|                                                               |  |                                       |           |      |   |           |  
|Interest Expense                                               |  |                                       |           |      |   |           |  
|Deposits                                                       |  |                                       | 944       |      |   | 1,030     |  
|Borrowings                                                     |  |                                       | 647       |      |   | 419       |  
|                                                               |  |                                       |           |      |   |           |  
|Total Interest Expense                                         |  |                                       | 1,591     |      |   | 1,449     |  
|                                                               |  |                                       |           |      |   |           |  
|Net Interest Income                                            |  |                                       | 2,685     |      |   | 2,368     |  
|Provision (Recovery) for Loan Losses                           |  |                                       | 57        |      |   | (17       | )
|                                                               |  |                                       |           |      |   |           |  
|Net Interest Income after Provision (Recovery) for Loan Losses |  |                                       | 2,628     |      |   | 2,385     |  
|                                                               |  |                                       |           |      |   |           |  
|Non-Interest Income                                            |  |                                       |           |      |   |           |  
|Customer Service Fees                                          |  |                                       | 86        |      |   | 76        |  
|Gain on Sale of Securities                                     |  |                                       | 91        |      |   |          |  
|Other Income                                                   |  |                                       | 26        |      |   | 35        |  
|                                                               |  |                                       |           |      |   |           |  
|Total Non-Interest Income                                      |  |                                       | 203       |      |   | 111       |  
|                                                               |  |                                       |           |      |   |           |  
|Non-Interest Expense                                           |  |                                       |           |      |   |           |  
|Salaries and Employee Benefits                                 |  |                                       | 1,107     |      |   | 919       |  
|Occupancy Expense                                              |  |                                       | 269       |      |   | 255       |  
|Other Expenses                                                 |  |                                       | 313       |      |   | 395       |  
|                                                               |  |                                       |           |      |   |           |  
|Total Non-Interest Expense                                     |  |                                       | 1,689     |      |   | 1,569     |  
|                                                               |  |                                       |           |      |   |           |  
|Income Before Income Tax Expense                               |  |                                       | 1,142     |      |   | 927       |  
|Income Tax Expense                                             |  |                                       | 402       |      |   | 306       |  
|                                                               |  |                                       |           |      |   |           |  
|Net Income                                                     |  | $                                     | 740       |      | $ | 621       |  
|                                                               |  |                                       |           |      |   |           |  
|Earnings Per Share                                             |  |                                       |           |      |   |           |  
|Basic                                                          |  | $                                     | 0.15      |      | $ | 0.11      |  
|Diluted                                                        |  | $                                     | 0.15      |      | $ | 0.11      |  
|Weighted Average Common Shares Outstanding                     |  |                                       |           |      |   |           |  
|Basic                                                          |  |                                       | 5,023,389 |      |   | 5,845,090 |  
|Diluted                                                        |  |                                       | 5,060,636 |      |   | 5,845,090 |  

See accompanying notes to unaudited financial statements.



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LOUISIANA BANCORP, INC.

Consolidated Statements of Comprehensive Income

(Unaudited)



|                                                             |  |                                     |     |   |      |   |      
|------------------------------------------------------------ |  | ----------------------------------- | --- | - | ---- | - | -----
|                                                             |  | For the Three MonthsEnded March 31,
|                                                             |  | 2009                                |     |   | 2008
|                                                             |  | (in thousands)                     
|Net Income                                                   |  | $                                   | 740 |   |      | $ | 621  
|Other Comprehensive Income                                   |  |                                     |     |   |      |   |      
|Unrealized Holding Gains Arising During the period           |  |                                     | 298 |   |      |   | 408  
|Reclassification Adjustment for Gains Included in Net Income |  |                                     | (91 | ) |      |   |     
|                                                             |  |                                     |     |   |      |   |      
|Total Other Comprehensive Income                             |  |                                     | 207 |   |      |   | 408  
|                                                             |  |                                     |     |   |      |   |      
|Comprehensive Income                                         |  | $                                   | 947 |   |      | $ | 1,029
|                                                             |  |                                     |     |   |      |   |      



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LOUISIANA BANCORP, INC.

Consolidated Statements of Changes in Equity Capital (unaudited)

For the
Three Months Ended March 31, 2009 and 2008

(Dollars in thousands)



|                                                                                          |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |                     |   |        |  |   |       |  |   |        |  
|----------------------------------------------------------------------------------------- |  | ----------- | -- | ------------------------ | - | ------ | ----------------- |  | - | ---------------- | - |  | ------------- | ------ | - | ---------------- | - | ------------------------------------------ | - | ------------------- | - | ------ |  | - | ----- |  | - | ------ | -
|                                                                                          |  | CommonStock |    | AdditionalPaid-inCapital |   |        | UnearnedESOPStock |  |   | UnearnedRRPStock |   |  | TreasuryStock |        |   | RetainedEarnings |   | AccumulatedOtherComprehensiveIncome (Loss) |   | Total EquityCapital |  
|Balances at December 31, 2007                                                             |  | $           | 63 |                          | $ | 62,073 |                   |  | $ | (4,950           | ) |  | $             |       |   |                  | $ |                                           |   |                     | $ | 32,382 |  | $ | 302   |  | $ | 89,870 |  
|Net Income - Three Months Ended March 31, 2008                                            |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |                     |   | 621    |  |   |       |  |   | 621    |  
|Other Comprehensive Income, Net of Applicable Deferred Income Taxes                       |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |                     |   |        |  |   | 408   |  |   | 408    |  
|Stock Purchased for Recognition and Retention Plan                                        |  |             |    |                          |   |        |                   |  |   |                  |   |  |               | (250   | ) |                  |   |                                            |   |                     |   |        |  |   |       |  |   | (250   | )
|Stock Option Expense                                                                      |  |             |    |                          |   | 25     |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |                     |   |        |  |   |       |  |   | 25     |  
|                                                                                          |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |                     |   |        |  |   |       |  |   |        |  
|Balance at March 31, 2008                                                                 |  | $           | 63 |                          | $ | 62,098 |                   |  | $ | (4,950           | ) |  | $             | (250   | ) |                  | $ |                                           |   |                     | $ | 33,003 |  | $ | 710   |  | $ | 90,674 |  
|                                                                                          |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |                     |   |        |  |   |       |  |   |        |  
|Balances at December 31, 2008                                                             |  | $           | 63 |                          | $ | 62,305 |                   |  | $ | (4,696           | ) |  | $             | (3,200 | ) |                  | $ | (5,208                                     | ) |                     | $ | 35,126 |  | $ | 1,337 |  | $ | 85,727 |  
|Net Income - Three Months Ended March 31, 2009                                            |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |                     |   | 740    |  |   |       |  |   | 740    |  
|Other Comprehensive Income, Net of Applicable Deferred Income Taxes Deferred Income Taxes |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |                     |   |        |  |   | 207   |  |   | 207    |  
|Stock Purchased for Treasury                                                              |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   | (6,287                                     | ) |                     |   |        |  |   |       |  |   | (6,287 | )
|RRP Shares Earned                                                                         |  |             |    |                          |   | (48    | )                 |  |   |                  |   |  |               | 554    |   |                  |   |                                            |   |                     |   |        |  |   |       |  |   | 506    |  
|Stock Option Expense                                                                      |  |             |    |                          |   | 59     |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |                     |   |        |  |   |       |  |   | 59     |  
|                                                                                          |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |                     |   |        |  |   |       |  |   |        |  
|Balance at March 31, 2009                                                                 |  | $           | 63 |                          | $ | 62,316 |                   |  | $ | (4,696           | ) |  | $             | (2,646 | ) |                  | $ | (11,495                                    | ) |                     | $ | 35,866 |  | $ | 1,544 |  | $ | 80,952 |  
|                                                                                          |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |                     |   |        |  |   |       |  |   |        |  



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LOUISIANA BANCORP, INC.

Consolidated Statements of Cash Flows (Unaudited)



|                                                                                  |  |                                     |         |   |      |   |         |  
|--------------------------------------------------------------------------------- |  | ----------------------------------- | ------- | - | ---- | - | ------- | -
|                                                                                  |  | For the Three MonthsEnded March 31, |        
|                                                                                  |  | 2009                                |         |   | 2008 |  
|                                                                                  |  | (In Thousands)                      |        
|Cash Flows form Operating Activities                                              |  |                                     |         |   |      |   |         |  
|Net Income                                                                        |  | $                                   | 740     |   |      | $ | 621     |  
|Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |  |                                     |         |   |      |   |         |  
|Depreciation                                                                      |  |                                     | 57      |   |      |   | 59      |  
|Provision (Recovery) for Loan Losses                                              |  |                                     | 57      |   |      |   | (17     | )
|Net Increase in RRP Shares Earned                                                 |  |                                     | 506     |   |      |   |        |  
|Stock Option Plan Expense                                                         |  |                                     | 59      |   |      |   | 25      |  
|Discount Accretion Net of Premium Amortization                                    |  |                                     | (102    | ) |      |   | (31     | )
|Gain on Insurance Settlement                                                      |  |                                     | (2      | ) |      |   |        |  
|Deferred Income Tax Benefit                                                       |  |                                     | (13     | ) |      |   | (7      | )
|Gain on Sale of Securities                                                        |  |                                     | (91     | ) |      |   |        |  
|Gain on Sale of Loans                                                             |  |                                     | (4      | ) |      |   | (11     | )
|Originations of Loans Held-for-Sale                                               |  |                                     |        |   |      |   | (445    | )
|Proceeds from Sales of Loans Held-for-Sale                                        |  |                                     |        |   |      |   | 442     |  
|Decrease in Accrued Interest Receivable                                           |  |                                     | 267     |   |      |   | 144     |  
|Decrease in Other Assets                                                          |  |                                     | 3       |   |      |   | 14      |  
|(Decrease) Increase in Accrued Interest Payable                                   |  |                                     | (38     | ) |      |   | 34      |  
|(Decrease) Increase in Other Liabilities                                          |  |                                     | (560    | ) |      |   | 582     |  
|                                                                                  |  |                                     |         |   |      |   |         |  
|Net Cash Provided by Operating Activities                                         |  |                                     | 879     |   |      |   | 1,410   |  
|                                                                                  |  |                                     |         |   |      |   |         |  
|Cash Flows form Investing Activities                                              |  |                                     |         |   |      |   |         |  
|Investment in Certificates of Deposit                                             |  |                                     | (1,042  | ) |      |   | (594    | )
|Purchase of Securities Available-for-Sale                                         |  |                                     |        |   |      |   | (7,769  | )
|Purchase of Securities Held-to-Maturity                                           |  |                                     |        |   |      |   | (24,082 | )
|Proceeds from Maturities of Certificates of Deposit                               |  |                                     | 198     |   |      |   | 693     |  
|Proceeds from Maturities of Securities Available-for-Sale                         |  |                                     | 15,948  |   |      |   | 11,310  |  
|Proceeds from Maturities of Securities Held-to-Maturity                           |  |                                     | 10,225  |   |      |   | 3,670   |  
|Proceeds from Sales of Securities Available-for-Sale                              |  |                                     | 1,849   |   |      |   |        |  
|Net Increase in Loans Receivable                                                  |  |                                     | (10,101 | ) |      |   | (4,091  | )
|Proceeds from Sales of Loans Held for Investing                                   |  |                                     | 643     |   |      |   | 546     |  
|Insurance Proceeds - Property Damage                                              |  |                                     | 42      |   |      |   |        |  
|Purchase of Property and Equipment                                                |  |                                     | (116    | ) |      |   | (5      | )
|Net Increase in Investment in Federal Home Loan Bank Stock                        |  |                                     | (3      | ) |      |   | (15     | )
|                                                                                  |  |                                     |         |   |      |   |         |  
|Net Cash Provided by (Used in) Investing Activities                               |  |                                     | 17,643  |   |      |   | (20,337 | )
|                                                                                  |  |                                     |         |   |      |   |         |  



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|                                                          |  |                                     |         |   |      |   |        |  
|--------------------------------------------------------- |  | ----------------------------------- | ------- | - | ---- | - | ------ | -
|                                                          |  | For the Three MonthsEnded March 31, |        
|                                                          |  | 2009                                |         |   | 2008 |  
|                                                          |  | (In Thousands)                      |        
|Cash Flows form Financing Activities                      |  |                                     |         |   |      |   |        |  
|Increase in Deposits                                      |  |                                     | 7,655   |   |      |   | 5,129  |  
|Decrease in Advances by Borrowers for Taxes and Insurance |  |                                     | (342    | ) |      |   | (344   | )
|(Decrease) Increase in Borrowings                         |  |                                     | (12,717 | ) |      |   | 13,852 |  
|Stock Purchased for RRP                                   |  |                                     |        |   |      |   | (250   | )
|Purchase of Treasury stock                                |  |                                     | (6,287  | ) |      |   |       |  
|                                                          |  |                                     |         |   |      |   |        |  
|Net Cash (Used in) Provided by Financing Activities       |  |                                     | (11,691 | ) |      |   | 18,387 |  
|                                                          |  |                                     |         |   |      |   |        |  
|Net Increase (Decrease) in Cash and Cash Equivalents      |  |                                     | 6,831   |   |      |   | (540   | )
|Cash and Cash Equivalents, Beginning of Year              |  |                                     | 4,974   |   |      |   | 11,648 |  
|                                                          |  |                                     |         |   |      |   |        |  
|Cash and Cash Equivalents, End of Year                    |  | $                                   | 11,805  |   |      | $ | 11,108 |  
|                                                          |  |                                     |         |   |      |   |        |  
|Supplemental Disclosure of Cash Flow Information          |  |                                     |         |   |      |   |        |  
|Cash Paid During the Year for:                            |  |                                     |         |   |      |   |        |  
|Interest                                                  |  | $                                   | 1,629   |   |      | $ | 1,414  |  
|                                                          |  |                                     |         |   |      |   |        |  
|Income Taxes                                              |  | $                                   | 820     |   |      | $ | 10     |  
|                                                          |  |                                     |         |   |      |   |        |  



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LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES

BASIS OF PRESENTATION

The
accompanying unaudited financial statements of the Company were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition,
results of operations, and cash flows in conformity with generally accepted accounting principles. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial
statements have been included. The results of operations for the three month period ended March 31, 2009, are not necessarily indicative of the results which may be expected for the entire fiscal year.

NATURE OF OPERATIONS

Louisiana Bancorp, Inc. (the
Company) was organized as a Louisiana corporation on March 16, 2007, for the purpose of becoming the holding company of Bank of New Orleans (the Bank) in anticipation of converting the Bank from a federally chartered
mutual savings bank to a federally chartered stock savings bank. In July 2007, the conversion of the Bank was completed. The Company is now the Banks parent holding company and holds all of the issued and outstanding shares of capital stock of
the Bank. The Bank operates in the banking/savings and loan industry and, as such, attracts deposits from the general public and uses such deposits primarily to originate loans secured by first mortgage loans on owner-occupied single-family
residences and other properties, as well as those for consumer needs.

The Bank is subject to competition from other financial
institutions, and is also subject to the regulations of certain Federal agencies and undergoes periodic examinations by those regulatory authorities.

SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK

Most of the Companys activities are with customers located within the
greater New Orleans area in Louisiana. Note 2 summarizes the types of securities in which the Company invests. Note 3 summarizes the types of lending in which the Company engages. The Company does not have any significant concentrations in any one
industry or to any one customer.

INVESTMENT SECURITIES

Securities are being accounted for in accordance with Statement of Financial Accounting Standards (SFAS) No. 115, Accounting for Certain Investments in Debt and Equity Securities. SFAS No. 115
requires the classification of securities into one of three categories: Trading, Available-for-Sale, or Held-to-Maturity. Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates this
classification periodically.

Available-for-sale securities are stated at market value, with unrealized gains and losses, net of income
taxes, reported as a separate component of accumulated other comprehensive income until realized. The amortized cost of available-for-sale debt securities is adjusted for amortization of premiums and accretion of discounts to maturity or, in the
case of mortgage-backed securities, over the estimated life of the security.

Securities designated as held-to-maturity are stated at cost
adjusted for amortization of the related premiums and accretion of discounts, using the interest method. The Company has the positive intent and ability to hold these securities to maturity.

The Company held no trading securities as of March 31, 2009 or December 31, 2008.

Amortization, accretion and accrued interest are included in interest income on securities. Realized gains and losses, and declines in value judged to be
other than temporary, are included in net securities gains or losses. Gains and losses on the sale of securities available-for-sale are determined using the specific-identification method.

LOANS

The Company grants one-to four-family,
multi-family residential, commercial, and land mortgage loans, and consumer and construction loans, and lines of credit to customers. Certain first mortgage loans are originated and sold under loan sale agreements. A substantial portion of the loan
portfolio is represented by mortgage loans secured by properties located throughout the greater New Orleans area. The ability of the Companys debtors to honor their contracts is dependent, in part, upon the real estate and general economic
conditions in this area.



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Loans are reported at their outstanding unpaid principal balance adjusted for charge-offs, the allowance
for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance.

When the
payment of principal or interest on a loan is delinquent for more than 90 days, or earlier in some cases, the loan is placed on non-accrual status, unless the loan is in the process of collection and the underlying collateral fully supports the
carrying value of the loan. If the decision is made to continue accruing interest on the loan, periodic reviews are made to confirm the accruing status of the loan. All interest accrued but not collected on loans placed in non-accrual status or on
loans charged-off, is reversed against income. The interest on these loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual basis. Loans are returned to accrual basis when all of the principal and
interest contractually due are brought current and future payments are reasonably assured.

The Company considers a loan to be impaired
when, based upon current information and events, it believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The Companys impaired loans include troubled debt
restructurings, and performing and non-performing loans on which full payment of principal or interest is not expected. The Company calculates an allowance required for impaired loans based on the present value of expected future cash flows
discounted at the loans effective interest rate, or at the loans observable market price or the fair value of its collateral.

ALLOWANCE FOR
LOAN LOSSES

The allowance for loan losses is a valuation allowance available for losses incurred on loans. All losses are charged to
the allowance for loan losses when the loss actually occurs or when a determination is made that a loss is likely to occur. Recoveries are credited to the allowance at the time of recovery.

The allowance is an amount that represents the amount of probable and reasonably estimable known and inherent losses in the loan portfolio, based on
evaluations of the collectibility of loans. The evaluations take into consideration such factors as changes in the types and amount of loans in the loan portfolio, historical loss experience, adverse situations that may affect the borrowers
ability to repay, estimated value of any underlying collateral, estimated losses relating to specifically identified loans, and current economic conditions. This evaluation is inherently subjective as it requires material estimates including, among
others, exposure at default, the amount and timing of expected future cash flows on impacted loans, value of collateral, estimated losses on our commercial and residential loan portfolios and general amounts for historical loss experience. All of
these estimates may be susceptible to significant change.

It should be understood that estimates of future loan losses involve an exercise
of judgment. While it is possible that in particular periods, the Company may sustain losses which are substantial relative to the allowance for loan losses, it is the judgment of management that the allowance for loan losses reflected in the
accompanying statements of condition is adequate to absorb possible losses in the existing loan portfolio.

LOANS HELD-FOR-SALE

Loans held-for-sale include originated mortgage loans intended for sale in the secondary market, which are carried at the lower of cost or estimated
market value. Loans held-for-sale are identified at the time of origination, in accordance with the Companys interest rate risk strategy. In addition, the Company occasionally sells loans that it originates, but cannot hold, due to regulatory
limitations on loans to one borrower or concentrations of credit in a particular property type or industry.

Student loans are held for
investment purposes as long as the student is still in school. In accordance with the Companys agreement with the Student Loan Marketing Association (Sallie Mae), these loans are transferred to the held-for-sale category and are
sold once the student has gone into repayment status.

LOAN FEES, LOAN COSTS, DISCOUNTS AND PREMIUMS

Loan origination and commitment fees and certain direct loan origination costs are deferred and amortized as an adjustment to the related loans
yield using the interest method over the contractual life of the loan.

Discounts received in connection with mortgage loans purchased are
accreted to income over the term of the loan using the interest method. Premiums on purchased loans are amortized over the term of the loan using the interest method.



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INCOME TAXES

Deferred income tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates
are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

COMPREHENSIVE EARNINGS

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets
and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the shareholders equity section of the balance sheets, such items, along with net earnings, are components of
comprehensive earnings.

USE OF ESTIMATES

In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the balance sheets and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change
relate to the determination of the allowance for losses on loans and deferred taxes.

NOTE 2  SECURITIES

A summary of securities classified as available-for-sale at March 31, 2009 and December 31, 2008, with gross unrealized gains and losses, is as
follows:



|                                       |  |                   |        |                      |   |                       |  |                     |   |  |   |       
|-------------------------------------- |  | ----------------- | ------ | -------------------- | - | --------------------- |  | ------------------- | - |  | - | ------
|                                       |  | March 31, 2009   
|                                       |  | AmortizedCost     |        | GrossUnrealizedGains |   | GrossUnrealizedLosses |  | EstimatedFair Value
|                                       |  | (in thousands)   
|Securities Available-for-Sale          |  |                   |       
|Mortgage-Backed Securities             |  |                   |        |                      |   |                       |  |                     |   |  |   |       
|GNMA                                   |  | $                 | 14,783 |                      | $ | 693                   |  | $                   |  |  | $ | 15,476
|FNMA                                   |  |                   | 23,775 |                      |   | 844                   |  |                     |  |  |   | 24,619
|FHLMC                                  |  |                   | 10,461 |                      |   | 420                   |  |                     |  |  |   | 10,881
|                                       |  |                   |        |                      |   |                       |  |                     |   |  |   |       
|Total Mortgage-Backed Securities       |  |                   | 49,019 |                      |   | 1,957                 |  |                     |  |  |   | 50,976
|U.S. Government and Agency Obligations |  |                   | 13,095 |                      |   | 382                   |  |                     |  |  |   | 13,477
|                                       |  |                   |        |                      |   |                       |  |                     |   |  |   |       
|Total Securities Available-for-Sale    |  | $                 | 62,114 |                      | $ | 2,339                 |  | $                   |  |  | $ | 64,453
|                                       |  |                   |        |                      |   |                       |  |                     |   |  |   |       
|                                       | 
|                                       |  | December 31, 2008
|                                       |  | AmortizedCost     |        | GrossUnrealizedGains |   | GrossUnrealizedLosses |  | EstimatedFair Value
|                                       |  | (in thousands)   
|Securities Available-for-Sale          |  |                   |       
|Mortgage-Backed Securities             |  |                   |        |                      |   |                       |  |                     |   |  |   |       
|GNMA                                   |  | $                 | 15,682 |                      | $ | 427                   |  | $                   |  |  | $ | 16,109
|FNMA                                   |  |                   | 25,750 |                      |   | 727                   |  |                     |  |  |   | 26,477
|FHLMC                                  |  |                   | 11,228 |                      |   | 345                   |  |                     |  |  |   | 11,573
|                                       |  |                   |        |                      |   |                       |  |                     |   |  |   |       
|Total Mortgage-Backed Securities       |  |                   | 52,660 |                      |   | 1,499                 |  |                     |  |  |   | 54,159
|U.S. Government and Agency Obligations |  |                   | 25,405 |                      |   | 527                   |  |                     |  |  |   | 25,932
|                                       |  |                   |        |                      |   |                       |  |                     |   |  |   |       
|Total Securities Available-for-Sale    |  | $                 | 78,065 |                      | $ | 2,026                 |  | $                   |  |  | $ | 80,091
|                                       |  |                   |        |                      |   |                       |  |                     |   |  |   |       



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A summary of securities classified as held-to-maturity at March 31, 2009 and December 31, 2008,
with gross unrealized gains and losses, is as follows:



|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|-------------------------------------- |  | ----------------- | ------- | -------------------- | - | --------------------- |  | - | ------------------- | - |  | - | -------
|                                       |  | March 31, 2009   
|                                       |  | AmortizedCost     |         | GrossUnrealizedGains |   | GrossUnrealizedLosses |  |   | EstimatedFair Value
|                                       |  | (in thousands)   
|Securities Held-to-Maturity            |  |                   |        
|Mortgage-Backed Securities             |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|GNMA                                   |  | $                 | 11,294  |                      | $ | 303                   |  | $ |                    |   |  | $ | 11,597 
|FNMA                                   |  |                   | 61,978  |                      |   | 2,488                 |  |   | (12                 | ) |  |   | 64,454 
|FHLMC                                  |  |                   | 36,929  |                      |   | 1,765                 |  |   | (1                  | ) |  |   | 38,693 
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Mortgage-Backed Securities       |  |                   | 110,201 |                      |   | 4,556                 |  |   | (13                 | ) |  |   | 114,744
|U.S. Government and Agency Obligations |  |                   |        |                      |   |                      |  |   |                    |   |  |   |       
|Municipal Bonds                        |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Revenue Bonds                          |  |                   | 286     |                      |   | 17                    |  |   |                    |   |  |   | 303    
|General Obligation Bonds               |  |                   | 1,064   |                      |   | 29                    |  |   |                    |   |  |   | 1,093  
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Municipal Obligations            |  |                   | 1,350   |                      |   | 46                    |  |   |                    |   |  |   | 1,396  
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Securities Held-to-Maturity      |  | $                 | 111,551 |                      | $ | 4,602                 |  | $ | (13                 | ) |  | $ | 116,140
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|                                       | 
|                                       |  | December 31, 2008
|                                       |  | AmortizedCost     |         | GrossUnrealizedGains |   | GrossUnrealizedLosses |  |   | EstimatedFair Value
|                                       |  | (in thousands)   
|Securities Held-to-Maturity            |  |                   |        
|Mortgage-Backed Securities             |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|GNMA                                   |  | $                 | 11,695  |                      | $ | 220                   |  | $ | (7                  | ) |  | $ | 11,908 
|FNMA                                   |  |                   | 65,818  |                      |   | 2,052                 |  |   | (17                 | ) |  |   | 67,853 
|FHLMC                                  |  |                   | 39,809  |                      |   | 1,487                 |  |   | (7                  | ) |  |   | 41,289 
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Mortgage-Backed Securities       |  |                   | 117,322 |                      |   | 3,759                 |  |   | (31                 | ) |  |   | 121,050
|U.S. Government and Agency Obligations |  |                   | 3,000   |                      |   | 1                     |  |   |                    |   |  |   | 3,001  
|Municipal Bonds                        |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Revenue Bonds                          |  |                   | 550     |                      |   | 23                    |  |   |                    |   |  |   | 573    
|General Obligation Bonds               |  |                   | 2,557   |                      |   | 74                    |  |   |                    |   |  |   | 2,631  
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Municipal Obligations            |  |                   | 3,107   |                      |   | 97                    |  |   |                    |   |  |   | 3,204  
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Securities Held-to-Maturity      |  | $                 | 123,429 |                      | $ | 3,857                 |  | $ | (31                 | ) |  | $ | 127,255
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        

The amortized cost and fair value of available-for-sale and held-to-maturity securities by
contractual maturity at March 31, 2009, are as follows. Actual maturities will differ from contractual maturities because borrowers have the right to put or prepay obligations with or without call or prepayment penalties.



|                     |  |                               |        |                             |   |               |  |                     |         |  |   |        
|-------------------- |  | ----------------------------- | ------ | --------------------------- | - | ------------- |  | ------------------- | ------- |  | - | -------
|                     |  | Available-for-Sale Securities |        | Held-to-Maturity Securities
|                     |  | AmortizedCost                 |        | EstimatedFair Value         |   | AmortizedCost |  | EstimatedFair Value
|                     |  |                               |        | (in thousands)              |   |              
|Amounts Maturing in: |  |                               |        |                             |   |               |  |                     |        
|Within One Year      |  | $                             |       |                             | $ |              |  | $                   | 1       |  | $ | 1      
|One to Five Years    |  |                               | 21,375 |                             |   | 21,747        |  |                     | 4,702   |  |   | 4,851  
|Five to Ten Years    |  |                               | 8,169  |                             |   | 8,694         |  |                     | 16,637  |  |   | 17,349 
|Over Ten Years       |  |                               | 32,570 |                             |   | 34,012        |  |                     | 90,211  |  |   | 93,939 
|                     |  |                               |        |                             |   |               |  |                     |         |  |   |        
|                     |  | $                             | 62,114 |                             | $ | 64,453        |  | $                   | 111,551 |  | $ | 116,140
|                     |  |                               |        |                             |   |               |  |                     |         |  |   |        



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Information pertaining to securities with gross unrealized losses at March 31, 2009 and
December 31, 2008, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows:



|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|-------------------------------------- |  | -------------------------- | -- | ----------------------------- | - | --------------------- |  | ------------------ | - |  | - | --
|                                       |  | Available-for-Sale        
|                                       |  | Losses Less Than 12 Months |    | Losses Greater Than 12 Months
|                                       |  | GrossUnrealizedLosses      |    | EstimatedFairValue            |   | GrossUnrealizedLosses |  | EstimatedFairValue
|                                       |  | (in thousands)            
|March 31, 2009                         |  |                            |   
|Mortgage-Backed Securities             |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|GNMA                                   |  | $                          |   |                               | $ |                      |  | $                  |  |  | $ |  
|FNMA                                   |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|FHLMC                                  |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total Mortgage-Backed Securities       |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|U.S. Government and Agency Obligations |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total                                  |  | $                          |   |                               | $ |                      |  | $                  |  |  | $ |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|December 31, 2008                      |  |                            |   
|Mortgage-Backed Securities             |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|GNMA                                   |  | $                          |   |                               | $ |                      |  | $                  |  |  | $ |  
|FNMA                                   |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|FHLMC                                  |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total Mortgage-Backed Securities       |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|U.S. Government and Agency Obligations |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total                                  |  | $                          |   |                               | $ |                      |  | $                  |  |  | $ |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|                                       | 
|                                       |  | Held-to-Maturity          
|                                       |  | Losses Less Than 12 Months |    | Losses Greater Than 12 Months
|                                       |  | GrossUnrealizedLosses      |    | EstimatedFairValue            |   | GrossUnrealizedLosses |  | EstimatedFairValue
|                                       |  | (in thousands)            
|March 31, 2009                         |  |                            |   
|Mortgage-Backed Securities             |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|GNMA                                   |  | $                          |   |                               | $ |                      |  | $                  |  |  | $ |  
|FNMA                                   |  |                            | 11 |                               |   | 1,151                 |  |                    | 1 |  |   | 32
|FHLMC                                  |  |                            | 1  |                               |   | 105                   |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total Mortgage-Backed Securities       |  |                            | 12 |                               |   | 1,256                 |  |                    | 1 |  |   | 32
|U.S. Government and Agency Obligations |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total                                  |  | $                          | 12 |                               | $ | 1,256                 |  | $                  | 1 |  | $ | 32
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|December 31, 2008                      |  |                            |   
|Mortgage-Backed Securities             |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|GNMA                                   |  | $                          | 7  |                               | $ | 325                   |  | $                  |  |  | $ |  
|FNMA                                   |  |                            | 17 |                               |   | 1,874                 |  |                    |  |  |   |  
|FHLMC                                  |  |                            | 7  |                               |   | 996                   |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total Mortgage-Backed Securities       |  |                            | 31 |                               |   | 3,195                 |  |                    |  |  |   |  
|U.S. Government and Agency Obligations |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total                                  |  | $                          | 31 |                               | $ | 3,195                 |  | $                  |  |  | $ |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   

The unrealized losses on the Companys investments were caused by interest rate increases.
Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, the Company
did not consider these investments to be other-than-temporarily impaired at March 31, 2009 or December 31, 2008.



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NOTE 3  LOANS

A summary of the balances of loans follows:



|                                                |  |                |         |   |                   |   |         |  
|----------------------------------------------- |  | -------------- | ------- | - | ----------------- | - | ------- | -
|                                                |  | March 31, 2009 |         |   | December 31, 2008 |  
|                                                |  | (in thousands) |        
|Loans Secured by First Mortgages on Real Estate |  |                |         |   |                   |   |         |  
|1-4 Family Residential                          |  | $              | 59,837  |   |                   | $ | 51,547  |  
|Multi-family Residential, Commercial and Land   |  |                | 49,698  |   |                   |   | 48,654  |  
|                                                |  |                |         |   |                   |   |         |  
|Total First Mortgages Secured by Real Estate    |  |                | 109,535 |   |                   |   | 100,201 |  
|Consumer and Other Loans                        |  |                |         |   |                   |   |         |  
|Student Loan                                    |  |                | 754     |   |                   |   | 1,398   |  
|Loans Secured by Deposits                       |  |                | 359     |   |                   |   | 283     |  
|Home Equity Loans and Lines                     |  |                | 11,359  |   |                   |   | 10,297  |  
|Other                                           |  |                | 980     |   |                   |   | 1,368   |  
|                                                |  |                |         |   |                   |   |         |  
|Total Consumer and Other Loans                  |  |                | 13,452  |   |                   |   | 13,346  |  
|Less:                                           |  |                |         |   |                   |   |         |  
|Allowance for Loan Losses                       |  |                | (2,009  | ) |                   |   | (1,952  | )
|Net Deferred Loan Origination Fess/Costs        |  |                | (337    | ) |                   |   | (359    | )
|                                                |  |                |         |   |                   |   |         |  
|Total Loans, Net                                |  | $              | 120,641 |   |                   | $ | 111,236 |  
|                                                |  |                |         |   |                   |   |         |  

An analysis of the allowance for loan losses is as follows:



|                                     |  |                                 |       |                             |   |       |  
|------------------------------------ |  | ------------------------------- | ----- | --------------------------- | - | ----- | -
|                                     |  | Three MonthsEndedMarch 31, 2009 |       | Year EndedDecember 31, 2008 |  
|                                     |  | (in thousands)                  |      
|Balance, Beginning of Period         |  | $                               | 1,952 |                             | $ | 1,999 |  
|Provision (Recovery) for Loan Losses |  |                                 | 57    |                             |   | (43   | )
|Loans Charged-Off                    |  |                                 |      |                             |   | (4    | )
|                                     |  |                                 |       |                             |   |       |  
|Balance, End of Period               |  | $                               | 2,009 |                             | $ | 1,952 |  
|                                     |  |                                 |       |                             |   |       |  

Nonaccrual loans, net of allowance for loan loss, amounted to approximately $2,408,000 and
$240,000 at March 31, 2009 and December 31, 2008, respectively. At March 31, 2009, our nonaccrual loans included two loans to a single borrower with an aggregate balance of $1,247,000, which are secured by a single family
residence. Management has conducted a review of the collateral and has concluded that the loan remains well collateralized and that all principal will be collected. In addition, at March 31, 2009, our nonaccrual loans included a $950,000
commercial real estate construction loan with a remaining commitment of $50,000. This loan represents our participation interest in a $170 million mixed-use property in Baton Rouge, Louisiana. The project is approximately 95% complete, but has
encountered delays due to cost overruns. However, the lead lenders have implemented additional controls and monitoring with respect to this loan in an effort to complete the project.

As of March 31, 2009 and December 31, 2008, the Company did not hold any loans classified as troubled debt restructurings.



14



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##### Table of Contents

The actual and required capital amounts and ratios applicable to the Bank at March 31, 2009 and
December 31, 2008, are presented in the following tables:



|                          |  |                        |        |       |                              |   |        |                                                                       |       |  |      |        |  |       |        |  |       |  
|------------------------- |  | ---------------------- | ------ | ----- | ---------------------------- | - | ------ | --------------------------------------------------------------------- | ----- |  | ---- | ------ |  | ----- | ------ |  | ----- | -
|                          |  | Actual                 |        |       | Minimum for AdequacyPurposes |   |        | Minimum to be WellCapitalized UnderPrompt CorrectiveAction Provisions |      
|                          |  | Amount                 |        | Ratio |                              |   | Amount |                                                                       | Ratio |  |      | Amount |  | Ratio |       
|                          |  | (Dollars in Thousands) |       
|March 31, 2009            |  |                        |        |       |                              |   |        |                                                                       |       |  |      |        |  |       |        |  |       |  
|Tangible Capital          |  | $                      | 56,445 |       | 18.93                        | % |        | $                                                                     | 4,473 |  | 1.50 | %      |  |       | N/A    |  | N/A   |  
|Core/Leverage Capital     |  |                        | 56,445 |       | 18.93                        |   |        |                                                                       | 8,945 |  | 3.00 |        |  | $     | 14,909 |  | 5.00  | %
|Tier 1 Risk-Based Capital |  |                        | 56,384 |       | 47.40                        |   |        |                                                                       | 4,758 |  | 4.00 |        |  |       | 7,137  |  | 6.00  |  
|Total Risk-Based Capital  |  | $                      | 57,874 |       | 48.66                        | % |        | $                                                                     | 9,516 |  | 8.00 | %      |  | $     | 11,895 |  | 10.00 | %
|                          |  |                        |        |       |                              |  
|December 31, 2008         |  |                        |        |       |                              |   |        |                                                                       |       |  |      |        |  |       |        |  |       |  
|Tangible Capital          |  | $                      | 55,816 |       | 18.35                        | % |        | $                                                                     | 4,562 |  | 1.50 | %      |  |       | N/A    |  | N/A   |  
|Core/Leverage Capital     |  |                        | 55,816 |       | 18.35                        |   |        |                                                                       | 9,124 |  | 3.00 |        |  | $     | 15,207 |  | 5.00  | %
|Tier 1 Risk-Based Capital |  |                        | 55,755 |       | 47.99                        |   |        |                                                                       | 4,647 |  | 4.00 |        |  |       | 6,970  |  | 6.00  |  
|Total Risk-Based Capital  |  | $                      | 57,209 |       | 49.24                        | % |        | $                                                                     | 9,294 |  | 8.00 | %      |  | $     | 11,617 |  | 10.00 | %

The Banks capital under generally accepted accounting principles (GAAP) is
reconciled as follows:



|                                                  |  |                |        |   |                   |   |        |  
|------------------------------------------------- |  | -------------- | ------ | - | ----------------- | - | ------ | -
|                                                  |  | March 31, 2009 |        |   | December 31, 2008 |  
|                                                  |  | (In Thousands) |       
|Capital Under GAAP                                |  | $              | 57,746 |   |                   | $ | 56,884 |  
|Unrealized Gains on Available-for-Sale Securities |  |                | (1,301 | ) |                   |   | (1,068 | )
|                                                  |  |                |        |   |                   |   |        |  
|Tier 1 Capital                                    |  |                | 56,445 |   |                   |   | 55,816 |  
|Allowance for Loan Losses(1)                      |  |                | 1,490  |   |                   |   | 1,454  |  
|Recourse Obligations                              |  |                | (61    | ) |                   |   | (61    | )
|                                                  |  |                |        |   |                   |   |        |  
|Total-Risk Based Capital                          |  | $              | 57,874 |   |                   | $ | 57,209 |  
|                                                  |  |                |        |   |                   |   |        |  



|(1) | The allowance for loan losses included in risk-based capital is limited to 1.25% of risk-based assets. At March 31, 2009, $248,000 of the Companys allowance for loan
losses was excluded from total risk-based capital.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

NOTE 4  EARNINGS PER COMMON SHARE

Earnings per common share are computed using the weighted average number of shares outstanding as prescribed in SFAS No. 128. Net income is divided
by the weighted average number of shares outstanding during the period to calculate basic net earnings per common share. Diluted earnings per common share are calculated to give effect to stock options.



|                                                                   |  |                                  |           |  
|------------------------------------------------------------------ |  | -------------------------------- | --------- | -
|                                                                   |  | Three Months EndedMarch 31, 2009 |          
|Net Income                                                         |  | $                                | 740,000   |  
|                                                                   |  |                                  |           |  
|Weighted Average Shares Outstanding                                |  |                                  | 6,345,732 |  
|Weighted Average Unearned ESOP Shares                              |  |                                  | (469,586  | )
|Weighted Average Unearned RRP Shares                               |  |                                  | (231,370  | )
|Weighted Average Treasury Shares                                   |  |                                  | (621,387  | )
|                                                                   |  |                                  |           |  
|Weighted Average Shares Outstanding for Basic Earnings per Share   |  |                                  | 5,023,389 |  
|                                                                   |  |                                  |           |  
|Earnings per Share, Basic                                          |  | $                                | 0.15      |  
|                                                                   |  |                                  |           |  
|Weighted Average Shares Outstanding for Basic Earnings per Share   |  |                                  | 5,023,389 |  
|Effect of Dilutive Securities                                      |  |                                  | 37,247    |  
|                                                                   |  |                                  |           |  
|Weighted Average Shares Outstanding for Diluted Earnings per Share |  |                                  | 5,060,636 |  
|                                                                   |  |                                  |           |  
|Earnings per Shares, Diluted                                       |  | $                                | 0.15      |  
|                                                                   |  |                                  |           |  



16



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##### Table of Contents

Item 2  Managements Discussion and Analysis of Financial Condition and
Results of Operations.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains certain forward-looking statements and information relating to the Company and the Bank that are based on the beliefs of management as well as assumptions made by and
information currently available to management. In addition, in portions of this document the words anticipate, believe, estimate, expect, intend, should and similar expressions
or the negative thereof, as they relate to the Company or the Bank or their management, are intended to identify forward-looking statements. Such statements reflect the current views of the Company and/or the Bank with respect to forward-looking
events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those described herein
as anticipated, believed, estimated, expected or intended. The Company does not intend to update these forward-looking statements.

General

The Company commenced operations as the parent holding company for the Bank on July 9, 2007 upon consummation of the Conversion.
The Companys results of operations are primarily dependent on the results of the Bank, which now is a wholly owned subsidiary of the Company. The Banks results of operations depend, to a large extent, on net interest income, which is the
difference between the income earned on its loan and investment portfolios and the cost of funds, consisting of the interest paid on deposits and borrowings. Results of operations are also affected by provisions for, or recoveries from, the
allowance for loan losses, fee income and other non-interest income and non-interest expense. Non-interest expense principally consists of compensation and employee benefits, office occupancy and equipment expense, data processing, advertising and
business promotion and other expense. Our results of operations are also significantly affected by general economic and competitive conditions, particularly changes in interest rates, government policies and actions of regulatory authorities. Future
changes in applicable law, regulations or government policies may materially impact our financial conditions and results of operations.

Critical
Accounting Policies

In reviewing and understanding financial information for the Company, you are encouraged to read and understand the
significant accounting policies used in preparing our financial statements. These policies are described in Note 1 of the notes to our financial statements. The accounting and financial reporting policies of the Company conform to accounting
principles generally accepted in the United States of America and to general practices within the banking industry. Accordingly, the financial statements require certain estimates, judgments, and assumptions, which are believed to be reasonable,
based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the periods presented. The
following accounting policies comprise those that management believes are the most critical to aid in fully understanding and evaluating our reported financial results. These policies require numerous estimates or economic assumptions that may prove
inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods.

Allowance for Loan Losses. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes
that the collectibility of the principal is unlikely. Subsequent recoveries are added to the allowance. The allowance is an amount that represents the amount of probable and reasonably estimable known and inherent losses in the loan portfolio, based
on evaluations of the collectibility of loans. The evaluations take into consideration such factors as changes in the types and amount of loans in the loan portfolio, historical loss experience, adverse situations that may affect the borrowers
ability to repay, the estimated value of any underlying collateral, estimated losses relating to specifically identified loans, and current economic conditions. This evaluation is inherently subjective as it requires material estimates including,
among others, exposure at default, the amount and timing of expected future cash flows on impacted loans, the value of collateral, estimated losses on our commercial and residential loan portfolios and general amounts for historical loss experience.
All of these estimates may be susceptible to significant change.

While management uses the best information available to make loan loss
allowance evaluations, adjustments to the allowance may be necessary based on changes in economic and other conditions or changes in accounting guidance. Historically, our estimates of the allowance for loan loss have not required significant
adjustments from managements initial estimates. In addition, the Office of Thrift Supervision, as an integral part of its examination processes, periodically reviews our allowance for loan losses. The Office of Thrift Supervision may require
the recognition of adjustments to the allowance for loan losses based on its judgment of information available to it at the time of their examinations. To the extent that actual outcomes differ from managements estimates, additional provisions
to the allowance for loan losses may be required that would adversely impact earnings in future periods.



17



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##### Table of Contents

Income Taxes. We make estimates and judgments to calculate some of our tax liabilities and
determine the recoverability of some of our deferred tax assets, which arise from temporary differences between the tax and financial statement recognition of revenues and expenses. We also estimate a reserve for deferred tax assets if, based on the
available evidence, it is more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. These estimates and judgments are inherently subjective. Historically, our estimates and judgments to
calculate our deferred tax accounts have not required significant revision to our initial estimates.

In evaluating our ability to recover
deferred tax assets, we consider all available positive and negative evidence, including our past operating results, recent cumulative losses and our forecast of future taxable income. In determining future taxable income, we make assumptions for
the amount of taxable income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require us to make judgments about our future taxable income and are consistent with the
plans and estimates we use to manage our business. Any reduction in estimated future taxable income may require us to record a valuation allowance against our deferred tax assets. An increase in the valuation allowance would result in additional
income tax expense in the period and could have a significant impact on our future earnings.

Comparison of Financial Condition at March 31, 2009
and December 31, 2008

During the first quarter of 2009, total assets decreased by $10.7 million, to $316.8 million. This decrease
in total assets was due primarily to accelerated repayments on our mortgage-backed securities and maturities in our investment portfolio. The aggregate decrease in our mortgage-backed securities portfolio and investment securities portfolio was
$27.5 million during the first quarter of 2009. Cash and cash equivalents were $11.8 million at March 31, 2009, an increase of $6.8 million from December 31, 2008. During the first quarter of 2009, our net loan portfolio increased by $9.4
million, or 8.4%. The growth in our net loan portfolio was primarily in first mortgage loans secured by single-family residences.

Our
non-performing loans, net of allowance for loan losses, at March 31, 2009 were $2.4 million, an increase of $2.2 million from December 31, 2008. Included in this balance are two loans to a single borrower, which are collateralized by a
single family residence. These loans had an aggregate balance of $1.2 million at March 31, 2009. Following a review of the collateral securing these loans, management has concluded that our position remains well collateralized and all principal
and interest will be collected. In addition, at March 31, 2009, our non-performing loans included a $950,000 construction loan with a remaining unfunded commitment of $50,000. This loan represents our participation interest in a $170 million
loan to construct a mixed-used property in Baton Rouge, Louisiana. The project is approximately 95% complete, but has been delayed due to cost overruns. The lead lenders on this project are implementing additional controls and procedures in order to
manage the remainder of the construction project.

Total deposits increased by $7.7 million during the quarter ended March 31, 2009 to
$168.2 million. The majority of this increase occurred in certificates of deposit with maturities of one year or less. Total borrowings were $63.9 million at March 31, 2009, a decrease of $12.7 million from December 31, 2008. The decrease
in borrowings during the quarter was primarily the result of the repayment of $15.5 million of short-term FHLB advances used to fund the purchase of mortgage-backed securities during the fourth quarter of 2008.

Total shareholders equity decreased by $4.8 million during the first three months of 2009, primarily due to the Companys acquisition of its
common stock pursuant to its publicly announced repurchase plans. During this period, the Company acquired 506,053 shares of its common stock at an aggregate cost of $6.3 million. Net income of $740,000 during the quarter increased retained earnings
to $35.9 million at March 31, 2009. In addition, 43,941 shares acquired pursuant to the Companys Recognition and Retention Plan Trust became vested and were released to participants. The release of these shares decreased the balance of
the associated contra equity account by $554,000 to $2.6 million at March 31, 2009. Accumulated other comprehensive income was $1.5 million at March 31, 2009, an increase of $207,000 from December 31, 2008.

Comparison of Our Operating Results for the Three Months Ended March 31, 2009 and 2008

General.The Companys net income for the quarter ended March 31, 2009 was $740,000, an increase of $119,000, or 19.2%, from the first
quarter of 2008. Net interest income increased by $317,000 during the three-month period ended March 31, 2009 compared to the three-month period ended March 31, 2008. Interest income for the first quarter of 2009 compared to the first
quarter of 2008 increased by $459,000 due primarily to a $41.8 million increase in the average balance of interest-earning assets. Interest expense increased during the first quarter of 2009 by $142,000 due to a $48.3 million increase in average
interest-bearing liabilities, which was partially offset by a decrease in the average cost of interest-bearing liabilities of 43 basis points between the periods.



18



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##### Table of Contents

Average Balances, Net Interest Income, and Yields Earned and Rates Paid. The following tables show
for the periods indicated the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the
net interest margin. Tax-exempt income and yields have not been adjusted to a tax-equivalent basis. All average balances are based on monthly balances. Management does not believe that the monthly averages differ significantly from what the daily
averages would be.



|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|----------------------------------------------------------------------- |  | ---------------------------- | ------- | -------- | ---- | ----------------- |  | ------ | -------------- |  | -------- | ------- | ----------------- | - | ----- |  | ------ | -
|                                                                        |  | Three months Ended March 31, |        
|                                                                        |  | 2009                         |         |          | 2008 |                  
|                                                                        |  | AverageBalance               |         | Interest |      | AverageYield/Rate |  |        | AverageBalance |  | Interest |         | AverageYield/Rate |  
|                                                                        |  | (Dollars in Thousands)       |        
|Interest- Earning Assets:                                               |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Loans Receivable (1)                                                    |  | $                            | 114,965 |          | $    | 1,838             |  | 6.39   | %              |  | $        | 98,102  |                   | $ | 1,683 |  | 6.86   | %
|Mortgage-backed Securities                                              |  |                              | 166,831 |          |      | 2,207             |  | 5.29   | %              |  |          | 113,450 |                   |   | 1,420 |  | 5.01   | %
|Investment Securities                                                   |  |                              | 23,555  |          |      | 213               |  | 3.62   | %              |  |          | 45,362  |                   |   | 561   |  | 4.95   | %
|Other Interest-Earnings Assets                                          |  |                              | 9,103   |          |      | 18                |  | 0.79   | %              |  |          | 15,789  |                   |   | 153   |  | 3.88   | %
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Total Interest-Earning Assets                                           |  |                              | 314,454 |          |      | 4,276             |  | 5.44   | %              |  |          | 272,703 |                   |   | 3,817 |  | 5.60   | %
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Non-Interest Earning Assets                                             |  |                              | 6,790   |          |      |                   |  |        |                |  |          | 6,384   |                   |   |       |  |        |  
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Total Assets                                                            |  | $                            | 321,244 |          |      |                   |  |        |                |  | $        | 279,087 |                   |   |       |  |        |  
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Interest-Bearing Liabilities:                                           |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Passbook, Checking and Money Market Accounts                            |  | $                            | 43,024  |          |      | 43                |  | 0.40   | %              |  | $        | 45,545  |                   |   | 46    |  | 0.40   | %
|Certificates of Deposit                                                 |  |                              | 116,779 |          |      | 901               |  | 3.09   | %              |  |          | 95,258  |                   |   | 984   |  | 4.13   | %
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Total Interest-Bearing Deposits                                         |  |                              | 159,803 |          |      | 944               |  | 2.36   | %              |  |          | 140,803 |                   |   | 1,030 |  | 2.93   | %
|Borrowings                                                              |  |                              | 69,740  |          |      | 647               |  | 3.71   | %              |  |          | 40,407  |                   |   | 419   |  | 4.15   | %
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Total Interest-Bearing Liabilities                                      |  |                              | 229,543 |          |      | 1,591             |  | 2.77   | %              |  |          | 181,210 |                   |   | 1,449 |  | 3.20   | %
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Non-Interest Bearing Liabilities                                        |  |                              | 7,796   |          |      |                   |  |        |                |  |          | 7,397   |                   |   |       |  |        |  
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Total Liabilities                                                       |  |                              | 237,339 |          |      |                   |  |        |                |  |          | 188,607 |                   |   |       |  |        |  
|Stockholders Equity                                                    |  |                              | 83,905  |          |      |                   |  |        |                |  |          | 90,480  |                   |   |       |  |        |  
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Total Liabilities and Stockholders' Equity                              |  | $                            | 321,244 |          |      |                   |  |        |                |  | $        | 279,087 |                   |   |       |  |        |  
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Net Interest-Earning Assets                                             |  | $                            | 84,911  |          |      |                   |  |        |                |  | $        | 91,493  |                   |   |       |  |        |  
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Net Interest Income; Average Interest Rate Spread                       |  |                              |         |          | $    | 2,685             |  | 2.67   | %              |  |          |         |                   | $ | 2,368 |  | 2.40   | %
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Net Interest Margin (2)                                                 |  |                              |         |          |      |                   |  | 3.42   | %              |  |          |         |                   |   |       |  | 3.47   | %
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Average Interest-Earning Assets to Average Interest-Bearing Liabilities |  |                              |         |          |      |                   |  | 136.99 | %              |  |          |         |                   |   |       |  | 150.49 | %
|                                                                        |  |                              |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  



|(1) | Includes nonaccrual loans during the respective periods. Calculated net of deferred fees/costs and allowance for loan
losses.
|--- | -----------------------------------------------------------------------------------------------------------------------------



|(2) | Equals net interest income divided by average interest-earning assets.
|--- | ----------------------------------------------------------------------



19



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##### Table of Contents

Interest Income. Net interest income for the quarter ended March 31, 2009 was $2.7 million,
an increase of $317,000 from the quarter ended March 31, 2008. Interest income for the first quarter of 2009 was $4.3 million, an increase of $459,000 compared to the first quarter of 2008. Average interest-earning assets were $314.5 million
for the quarter ended March 31, 2009, an increase of $41.8 million from the quarter ended March 31, 2008. Our average loans receivable increased by $16.9 million, to $115.0 million for the quarter ended March 31, 2009 compared to the
quarter ended March 31, 2008. Interest income on our loan portfolio was $1.8 million during the first quarter of 2009, an increase of $155,000 from the first quarter of 2008. During the first quarter of 2009, additional interest income of
$45,000 would have been recognized on non-accrual loans if such loans had continued to perform in accordance with their contractual terms. The average balance of mortgage-backed securities increased by $53.4 million during the first quarter of 2009
compared to the first quarter of 2008. This increase in the average balance of mortgage-backed securities is attributed to leverage strategies implemented during the late first quarter of 2008 and the fourth quarter of 2008. These strategies
provided for the purchase of mortgage-backed securities funded by wholesale borrowings. Interest income on mortgage-backed securities increased by $787,000 during the first quarter of 2009 compared to the first quarter of 2008. The average balances
of our investment securities portfolio and other interest-bearing deposits declined by $21.8 million and $6.7 million, respectively, compared to first quarter of 2008. In the aggregate, interest income on investment securities and other
interest-earning assets decreased by $483,000 from the quarter ended March 31, 2008. This decline in interest income was due to the lower average balances in the respective categories, and the substantial decline in short term interest rates
over the last twelve months.

Interest Expense. Interest expense for the first quarter of 2009 was $1.6 million, an increase of
$142,000 from the first quarter of 2008. The average balance of interest-bearing deposits was $159.8 million at March 31, 2009, an increase of $19.0 million from the quarter ended March 31, 2008. The average rate paid on our deposits for
the first quarter of 2009 was 2.36%, a decrease of 57 basis points from the first quarter of 2008. Average borrowings were $69.7 million and $40.4 million, respectively, for the quarters ended March 31, 2009 and 2008. This decrease in the
average balance of our borrowings is attributed to the repayment of short-term Federal Home Loan Bank advances which were used to fund the purchase of mortgage-backed securities in the fourth quarter of 2008. Our average interest rate spread for the
first quarter of 2009 was 2.67%, an increase of 27 basis points from the first quarter of 2008.

Provision (Recovery) for Loan Losses.We have identified the evaluation of the allowance for loan losses as a critical accounting policy where amounts are sensitive to material variation. This policy is significantly affected by our judgment and uncertainties and there is a
likelihood that materially different amounts would be reported under different, but reasonably plausible, conditions or assumptions. Our activity in the provision for loan losses, which are charges or recoveries to operating results, is undertaken
in order to maintain a level of total allowance for losses that management believes covers all known and inherent losses that are both probable and reasonably estimable at each reporting date. Our evaluation process typically includes, among other
things, an analysis of delinquency trends, non-performing loan trends, the level of charge-offs and recoveries, prior loss experience, total loans outstanding, the volume of loan originations, the type, size and geographic concentration of our
loans, the value of collateral securing the loan, the borrowers ability to repay and repayment performance, the number of loans requiring heightened management oversight, local economic conditions and industry experience. Various regulatory
agencies, as an integral part of their examination process, periodically review our allowance for loan losses. Such agencies may require us to make additional provisions for estimated loan losses based upon judgments different from those of
management.

The Bank recorded provisions for loan losses of $57,000 during the first quarter of 2009, compared to net recoveries of
$17,000 for the first quarter of 2008. Our allowance for loan losses as a percentage of gross loans was 1.64% as of March 31, 2009, which represents a decrease of 29 basis points from March 31, 2008. This reduction in the allowance for
loan loss ratio was due primarily to an increase in gross loans of $20.2 million over the twelve month period ended March 31, 2009. Management reviews the allowance for loan losses on a monthly basis and establishes provisions after thorough
consideration of several factors, including the type of collateral securing the debt, delinquency status, local economic market conditions and other factors related to the collectability of the debt.

Non-interest Income. Non-interest income for the three months ended March 31, 2009 was $203,000, an increase of $92,000 from the three month
period ended March 31, 2008. This increase is attributed to a $91,000 gain on the sale of $1.7 million in municipal bonds. These bonds were sold due to a decline in their credit rating following a downgrade in their respective third party
guarantors credit ratings.



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Non-interest Expense. Non-interest expense for the period ending March 31, 2009 was $1.7
million, an increase of $120,000, or 7.7%, from the period ending March 31, 2008. Salaries and employee benefit costs increased by $188,000 during the 2009 period, as compared to the same 2008 period. Of this increase, $95,000 is attributed to
the implementation of our shareholder-approved equity-based compensation plans. These plans were approved February 14, 2008 and were therefore only in effect for approximately six weeks during the first quarter of 2008. The remaining increase
in salaries and employee benefit costs is attributed to overall higher levels of salaries, health insurance premiums, and payroll taxes associated with our increased level of employees. The number of full-time equivalent employees increased from 62
at March 31, 2008, to 67 at March 31, 2009. Other non-interest expenses decreased by $82,000 during the first quarter of 2009 compared to the first quarter of 2008. This decrease is primarily attributed to a $60,000 reduction in our
Louisiana bank shares tax and an $18,000 reduction in expense from professional fees.

Income Tax Expense. Income tax expense for
the first quarter of 2009 was $402,000, an increase of $96,000 from the first quarter of 2008. This increase in income tax expense was due to an increase in pre-tax income of $215,000 between the respective periods.

Liquidity and Capital Resources

Our primary sources
of funds are from deposits, amortization of loans, loan prepayments and the maturity of loans, mortgage-backed securities and other investments, and other funds provided from operations. While scheduled payments from the amortization of loans and
mortgage-backed securities and maturing investment securities are relatively predictable sources of funds, deposit flows and loan prepayments can be greatly influenced by general interest rates, economic conditions and competition. We also maintain
excess funds in short-term, interest-bearing assets that provide additional liquidity. At March 31, 2009, our cash and cash equivalents amounted to $11.8 million. In addition, at such date our available-for-sale investment and mortgage-backed
securities amounted to an aggregate of $64.5 million.

We use our liquidity to fund existing and future loan commitments, to fund maturing
certificates of deposit and demand deposit withdrawals, to invest in other interest-earning assets, and to meet operating expenses. At March 31, 2009, we had certificates of deposit maturing within the next 12 months amounting to $88.9 million.
Based upon historical experience, we anticipate that a significant portion of the maturing certificates of deposit will be redeposited with us. At March 31, 2009, we had $63.9 million in total borrowings, including $37.9 million in FHLB
advances and $26.0 million in reverse repurchase agreements with commercial banks.

In addition to cash flow from loan and securities
payments and prepayments as well as from sales of available for sale securities, we have significant borrowing capacity available to fund liquidity needs. In recent years we have utilized borrowings as a cost efficient addition to deposits as a
source of funds. As a member of the Federal Home Loan Bank of Dallas, we pledge residential mortgage loans and mortgage-backed securities as well as our stock in the Federal Home Loan Bank as collateral for advances. At March 31, 2009, the
Company had $148.5 million in funds available through the Federal Home Loan Bank.

In light of the Companys regulatory capital, which
is significantly in excess of well capitalized standards, and taking into consideration the Companys projected earnings, asset growth, and business strategy, we have decided not to seek Federal funding through the U. S. Treasury
Departments Capital Purchase Program, although we believe we would be eligible for such funds.



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The following table summarizes our contractual cash obligations at March 31, 2009.



|                                   |  |                        |         |           |   |                           |  |                            |        |                  |   |        |  |   |      
|---------------------------------- |  | ---------------------- | ------- | --------- | - | ------------------------- |  | -------------------------- | ------ | ---------------- | - | ------ |  | - | -----
|                                   |  | Payments Due by Period
|                                   |  | Total                  |         | To 1 Year |   | More Than1 Yearto 3 Years |  | More Than3 Yearsto 5 Years |        | More Than5 Years
|                                   |  | (Dollars In Thousands)
|Certificates of Deposit            |  | $                      | 120,657 |           | $ | 88,885                    |  | $                          | 21,856 |                  | $ | 9,916  |  | $ |     
|FHLB Advances and Other Borrowings |  |                        | 63,943  |           |   | 5,393                     |  |                            | 14,059 |                  |   | 38,993 |  |   | 5,498
|                                   |  |                        |         |           |   |                           |  |                            |        |                  |   |        |  |   |      
|Total Long-Term Debt               |  |                        | 184,600 |           |   | 94,278                    |  |                            | 35,915 |                  |   | 48,909 |  |   | 5,498
|Operating Lease Obligations        |  | $                      | 234     |           | $ | 47                        |  | $                          | 62     |                  | $ | 62     |  | $ | 63   
|                                   |  |                        |         |           |   |                           |  |                            |        |                  |   |        |  |   |      
|Total Contractual Obligations      |  | $                      | 184,834 |           | $ | 94,325                    |  | $                          | 35,977 |                  | $ | 48,971 |  | $ | 5,561
|                                   |  |                        |         |           |   |                           |  |                            |        |                  |   |        |  |   |      

We anticipate that we will continue to have sufficient funds and alternative funding sources to
meet our current commitments.

Impact of Inflation and Changing Prices

The financial statements, accompanying notes, and related financial data of the Company presented herein have been prepared in accordance with generally accepted accounting principles, which require the measurement of
financial position and operating results in terms of historical dollars without considering the changes in purchasing power of money over time due to inflation. The impact of inflation is reflected in the increased cost of operations. Most of our
assets and liabilities are monetary in nature; therefore, the impact of interest rates has a greater impact on our performance than the effects of general levels of inflation. Interest rates do not necessarily move in the same direction or to the
same extent as the prices of goods and services.

Item 3  Quantitative and Qualitative Disclosures About Market Risk.

For a discussion of the Companys asset and liability management policies as well as the methods used to manage its exposure to
the risk of loss from adverse changes in market prices and rates market, see Managements Discussion and Analysis of Financial Condition and Results of Operations  How We Manage Market Risk at Part II, Item 7 in the
Companys Annual Report on Form 10-K for the year ended December 31, 2008.

Item 4T  Controls and
Procedures.

Our management evaluated, with the participation of our President and Chief Executive Officer and our Senior Vice President
and Chief Financial Officer of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based on such evaluation, our President
and Chief Executive Officer and our Senior Vice President and Chief Financial Officer concluded that our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit
under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SECs rules and regulations and are operating in an effective manner.

No change in our internal control over financial reporting (as defined in Rules 13a-15 or 15d-15 under the Securities Exchange Act of 1934) occurred
during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1 - Legal Proceedings.

There are no matters required to be reported under this item.



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##### Table of Contents

Item 1A - Risk Factors.

See Risk Factors at pages 29-33 in the Companys Annual Report on Form 10-K for the year ended December 31, 2008 (SEC File
No. 1-33573), which is incorporated herein by reference thereto.

Item 2 - Unregistered Sales of Equity Securities and
Use of Proceeds.

(a) Not applicable.

(b) Not applicable.

(c) The Companys purchases of its common stock made during the quarter consisted
of purchases of treasury shares pursuant to repurchase plan s approved by the Companys Board of Directors, as set forth in the following table.



|                               |  |                               |  |                            |       |                                                                           |         |                                                                                   |        
|------------------------------ |  | ----------------------------- |  | -------------------------- | ----- | ------------------------------------------------------------------------- | ------- | --------------------------------------------------------------------------------- | -------
|Period                         |  | TotalNumber ofSharesPurchased |  | AveragePrice Paidper Share |       | Total Numberof SharesPurchased
asPart of PubliclyAnnouncedPlan or Program |         | MaximumNumber ofShares that MayYet be PurchasedUnder the
Planof Program (1)(2)(3)
|January 1 - January 31, 2009   |  | 85,996                        |  | $                          | 12.50 |                                                                           | 85,996  |                                                                                   | 118,972
|February 1 - February 28, 2009 |  | 120,907                       |  |                            | 12.58 |                                                                           | 120,907 |                                                                                   | 284,416
|March 1 - March 31, 2009       |  | 299,150                       |  |                            | 12.27 |                                                                           | 299,150 |                                                                                   | 257,274
|                               |  |                               |  |                            |       |                                                                           |         |                                                                                   |        
|Total                          |  | 506,053                       |  | $                          | 12.38 |                                                                           | 506,053 |                                                                                   |        
|                               |  |                               |  |                            |       |                                                                           |         |                                                                                   |        



|(1) | On November 3, 2008, the Company announced a stock repurchase program to acquire 5%, or 301,422 shares of its common stock over a six month period. This repurchase program was
completed on February 24, 2009.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | On February 17, 2009, the Company announced a stock repurchase program to acquire 5%, or 286,351 shares of its common stock over a six month period. This repurchase program was
completed on March 25, 2009.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(3) | On March 17, 2009, the Company announced a stock repurchase program to acquire 5%, or 272,008 shares of its common stock over a six month period.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------

Item 3 - Defaults Upon Senior Securities.

There are no matters required to be reported under this item.

Item 4 - Submission of
Matters to a Vote of Security Holders.

There are no matters required to be reported under this item.

Item 5 - Other Information.

There are no matters required to be reported under this item.

Item 6 - Exhibits.

(a) List of exhibits: (filed herewith unless otherwise noted)



| |  |      |  |                                                                                  
| |  | ---- |  | ---------------------------------------------------------------------------------
| |  |     
| |  | 31.1 |  | Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer            
| |  |     
| |  | 31.2 |  | Rule 13a-14(a)/15d-14(a) Section 302 Certification of the Chief Financial Officer
| |  |     
| |  | 32.1 |  | Section 1350 Certification                                                       



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.



|                   |  |  |  |     |  |                            |  |                                                               
|------------------ |  |  |  | --- |  | -------------------------- |  | --------------------------------------------------------------
|                   |  |  |  |     |  | LOUISIANA BANCORP, INC.   
|                   |  |  | 
|Date: May 12, 2009 |  |  |  | By: |  | /s/ Lawrence J. LeBon, III
|                   |  |  |  |     |  |                            |  | Lawrence J. LeBon, III President and Chief Executive
Officer  
|                   |  |  | 
|Date: May 12, 2009 |  |  |  | By: |  | /s/ John LeBlanc          
|                   |  |  |  |     |  |                            |  | John LeBlanc Senior Vice President and Chief
Financial Officer



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