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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, 2008

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 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 13, 2008, there were 6,345,732 shares of the Registrants common stock issued and 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                                                                  |  |     
|                            |  |                                                                                      
|Item 2 -                    |  | Managements Discussion and Analysis of Financial Condition and Results of Operations |  | 18  
|                            |  |                                                                                      
|Item 3 -                    |  | Quantitative and Qualitative Disclosures About Market Risk                            |  | 22  
|                            |  |                                                                                      
|Item 4T -                   |  | Controls and Procedures                                                               |  | 22  
|                           
|PART II - OTHER INFORMATION
|                            |  |                                                                                      
|Item 1 -                    |  | Legal Proceedings                                                                     |  | 23  
|                            |  |                                                                                      
|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                                                                              |  | 24  
|                            |  |                                                                                      
|Signatures                  |  |                                                                                       |  | 25  



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LOUISIANA BANCORP, INC.

BALANCE SHEETS

(Dollars in Thousands)



|                                                                                                                                    |  |               |         |   |                  |   |         |  
|----------------------------------------------------------------------------------------------------------------------------------- |  | ------------- | ------- | - | ---------------- | - | ------- | -
|                                                                                                                                    |  | March 31,2008 |         |   | December 31,2007 |  
|                                                                                                                                    |  | (Unaudited)   |         |   | (Audited)        |  
|ASSETS                                                                                                                              |  |               |         |   |                  |   |         |  
|Cash and Due from Banks                                                                                                             |  | $             | 1,682   |   |                  | $ | 1,450   |  
|Short-term Interest-bearing Deposits in other Banks                                                                                 |  |               | 9,426   |   |                  |   | 10,198  |  
|                                                                                                                                    |  |               |         |   |                  |   |         |  
|Total Cash and Cash Equivalents                                                                                                     |  |               | 11,108  |   |                  |   | 11,648  |  
|Certificates of Deposit                                                                                                             |  |               | 2,011   |   |                  |   | 2,110   |  
|Securities Available-for-Sale, at Fair Value(Amortized Cost of $68,610 at March 31,2008 and $72,178 at December 31,
2007)           |  |               | 69,686  |   |                  |   | 72,636  |  
|Securities Held-to-Maturity, at Amortized Cost(Estimated Fair Value of $104,119 at March 31, 2008 and $82,622 at December 31,
2007) |  |               | 102,113 |   |                  |   | 81,643  |  
|Loans, Net of Allowance for Loan Losses of $1,982 at March 31, 2008 and $1,999 at December 31, 2007                                 |  |               | 100,478 |   |                  |   | 96,902  |  
|Accrued Interest Receivable                                                                                                         |  |               | 1,531   |   |                  |   | 1,675   |  
|Stock in Federal Home Loan Bank, at Cost                                                                                            |  |               | 1,390   |   |                  |   | 1,374   |  
|Premises and Equipment, Net                                                                                                         |  |               | 1,823   |   |                  |   | 1,877   |  
|Other Assets                                                                                                                        |  |               | 862     |   |                  |   | 1,079   |  
|                                                                                                                                    |  |               |         |   |                  |   |         |  
|Total Assets                                                                                                                        |  | $             | 291,002 |   |                  | $ | 270,944 |  
|                                                                                                                                    |  |               |         |   |                  |   |         |  
|                                                                                                                                   
|LIABILITIES AND SHAREHOLDERS EQUITY                                                                                                | 
|LIABILITIES                                                                                                                         |  |               |         |   |                  |   |         |  
|Deposits                                                                                                                            |  |               |         |   |                  |   |         |  
|Noninterest-bearing                                                                                                                 |  | $             | 6,193   |   |                  | $ | 3,099   |  
|Interest-bearing                                                                                                                    |  |               | 142,566 |   |                  |   | 140,530 |  
|                                                                                                                                    |  |               |         |   |                  |   |         |  
|Total Deposits                                                                                                                      |  |               | 148,759 |   |                  |   | 143,629 |  
|FHLB Advances and other Borrowings                                                                                                  |  |               | 48,268  |   |                  |   | 34,416  |  
|Advance Payments by Borrowers for Taxes and Insurance                                                                               |  |               | 1,238   |   |                  |   | 1,582   |  
|Accrued Interest Payable                                                                                                            |  |               | 609     |   |                  |   | 575     |  
|Other Liabilities                                                                                                                   |  |               | 1,454   |   |                  |   | 872     |  
|                                                                                                                                    |  |               |         |   |                  |   |         |  
|Total Liabilities                                                                                                                   |  | $             | 200,328 |   |                  | $ | 181,074 |  
|                                                                                                                                    |  |               |         |   |                  |   |         |  
|COMMITMENTS AND CONTINGENCIES                                                                                                       |  |               |         |   |                  |   |         |  
|                                                                                                                                    |  |              
|SHAREHOLDERS EQUITY                                                                                                                |  |               |         |   |                  |   |         |  
|Common Stock, $.01 par value, 6,345,732 shares issued and outstanding at March 31, 2008 and at December 31, 2007                    |  | $             | 63      |   |                  |   | 63      |  
|Additional Paid-in-Capital                                                                                                          |  |               | 62,098  |   |                  |   | 62,073  |  
|Unearned ESOP Shares                                                                                                                |  |               | (4,950  | ) |                  |   | (4,950  | )
|Unearned Recognition and Retention Plan Shares                                                                                      |  |               | (250    | ) |                  |   |        |  
|Retained Earnings                                                                                                                   |  |               | 33,003  |   |                  |   | 32,382  |  
|Accumulated Other Comprehensive Income                                                                                              |  |               | 710     |   |                  |   | 302     |  
|                                                                                                                                    |  |               |         |   |                  |   |         |  
|Total Shareholders Equity                                                                                                          |  |               | 90,674  |   |                  |   | 89,870  |  
|                                                                                                                                    |  |               |         |   |                  |   |         |  
|Total Liabilities and Shareholders Equity                                                                                          |  | $             | 291,002 |   |                  | $ | 270,944 |  
|                                                                                                                                    |  |               |         |   |                  |   |         |  

The accompanying notes are an integral part of these financial statements.



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LOUISIANA BANCORP, INC.

STATEMENTS OF INCOME (Unaudited)

(Dollars in Thousands, except per share
data)



|                                                   |  |                                     |       |   |      |   |       |  
|-------------------------------------------------- |  | ----------------------------------- | ----- | - | ---- | - | ----- | -
|                                                   |  | For the Three MonthsEnded March 31, |      
|                                                   |  | 2008                                |       |   | 2007 |  
|INTEREST AND DIVIDEND INCOME                       |  |                                     |       |   |      |   |       |  
|Loans, Including Fees                              |  | $                                   | 1,683 |   |      | $ | 1,551 |  
|Mortgage Backed Securities                         |  |                                     | 1,420 |   |      |   | 1,039 |  
|Investment Securities                              |  |                                     | 561   |   |      |   | 312   |  
|Other Interest Bearing Deposits                    |  |                                     | 153   |   |      |   | 62    |  
|                                                   |  |                                     |       |   |      |   |       |  
|Total Interest and Dividend Income                 |  |                                     | 3,817 |   |      |   | 2,964 |  
|INTEREST EXPENSE                                   |  |                                     |       |   |      |   |       |  
|Deposits                                           |  |                                     | 1,030 |   |      |   | 1,013 |  
|Borrowings                                         |  |                                     | 419   |   |      |   | 387   |  
|                                                   |  |                                     |       |   |      |   |       |  
|Total Interest Expense                             |  |                                     | 1,449 |   |      |   | 1,400 |  
|                                                   |  |                                    
|NET INTEREST INCOME                                |  |                                     | 2,368 |   |      |   | 1,564 |  
|                                                   |  |                                    
|(RECOVERY) FOR LOAN LOSSES                         |  |                                     | (17   | ) |      |   | (4    | )
|                                                   |  |                                     |       |   |      |   |       |  
|NET INTEREST INCOME AFTER RECOVERY FOR LOAN LOSSES |  |                                     | 2,385 |   |      |   | 1,568 |  
|                                                   |  |                                     |       |   |      |   |       |  
|NON-INTEREST INCOME                                |  |                                     |       |   |      |   |       |  
|Customer Service Fees                              |  |                                     | 76    |   |      |   | 96    |  
|Other Income                                       |  |                                     | 35    |   |      |   | 12    |  
|                                                   |  |                                     |       |   |      |   |       |  
|Total Non-Interest Income                          |  |                                     | 111   |   |      |   | 108   |  
|                                                   |  |                                     |       |   |      |   |       |  
|NON-INTEREST EXPENSES                              |  |                                     |       |   |      |   |       |  
|Salaries and Employee Benefits                     |  |                                     | 919   |   |      |   | 745   |  
|Occupancy Expense                                  |  |                                     | 255   |   |      |   | 250   |  
|Other Expenses                                     |  |                                     | 395   |   |      |   | 180   |  
|                                                   |  |                                     |       |   |      |   |       |  
|Total Non-Interest Expenses                        |  |                                     | 1,569 |   |      |   | 1,175 |  
|                                                   |  |                                     |       |   |      |   |       |  
|INCOME BEFORE INCOME TAX EXPENSE                   |  |                                     | 927   |   |      |   | 501   |  
|INCOME TAX EXPENSE                                 |  |                                     | 306   |   |      |   | 159   |  
|                                                   |  |                                     |       |   |      |   |       |  
|NET INCOME                                         |  | $                                   | 621   |   |      | $ | 342   |  
|                                                   |  |                                     |       |   |      |   |       |  
|EARNINGS PER SHARE                                 |  |                                     |       |   |      |   |       |  
|Basic                                              |  | $                                   | 0.11  |   |      |   | N/A   |  
|Diluted                                            |  | $                                   | 0.11  |   |      |   | N/A   |  

The accompanying notes are an integral part of these financial statements.



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LOUISIANA BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

(Dollars
in Thousands)



|                                                              |  |                                     |       |      |   |    
|------------------------------------------------------------- |  | ----------------------------------- | ----- | ---- | - | ---
|                                                              |  | For the Three MonthsEnded March 31,
|                                                              |  | 2008                                |       | 2007
|NET INCOME                                                    |  | $                                   | 621   |      | $ | 342
|OTHER COMPREHENSIVE INCOME, NET OF TAX:                       |  |                                     |       |      |   |    
|Unrealized Holding Gains Arising During the Period            |  |                                     | 408   |      |   | 157
|Reclassification Adjustment for Losses Included in Net Income |  |                                     |      |      |   |   
|                                                              |  |                                     |       |      |   |    
|Total Other Comprehensive Income                              |  |                                     | 408   |      |   | 157
|                                                              |  |                                     |       |      |   |    
|COMPREHENSIVE INCOME                                          |  | $                                   | 1,029 |      | $ | 499
|                                                              |  |                                     |       |      |   |    

The accompanying notes are an integral part of these financial statements.



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LOUISIANA BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited)

For the Three Months Ended March 31, 2008 and 2007

(Dollars in Thousands)



|                                                                   |  |             |    |                          |   |                   |  |   |                  |   |  |                  |      |                                            |  |   |                          |  |   |      |   |  |   |        |  
|------------------------------------------------------------------ |  | ----------- | -- | ------------------------ | - | ----------------- |  | - | ---------------- | - |  | ---------------- | ---- | ------------------------------------------ |  | - | ------------------------ |  | - | ---- | - |  | - | ------ | -
|                                                                   |  | CommonStock |    | AdditionalPaid-inCapital |   | UnearnedESOPStock |  |   | UnearnedRRPStock |   |  | RetainedEarnings |      | AccumulatedOtherComprehensiveIncome (Loss) |  |   | TotalShareholdersEquity | 
|BALANCES AT DECEMBER 31, 2006                                      |  |             |   |                          |   |                  |  |   |                 |   |  |                  |     |                                            |  | $ | 29,741                   |  | $ | (543 | ) |  | $ | 29,198 |  
|Net Income  Three Months Ended March 31, 2007                     |  |             |    |                          |   |                   |  |   |                  |   |  |                  |      |                                            |  |   | 342                      |  |   |      |   |  |   | 342    |  
|Other Comprehensive Gains, Net of Applicable Deferred Income Taxes |  |             |   |                          |   |                  |  |   |                 |   |  |                  |     |                                            |  |   |                         |  |   | 157  |   |  |   | 157    |  
|                                                                   |  |             |    |                          |   |                   |  |   |                  |   |  |                  |      |                                            |  |   |                          |  |   |      |   |  |   |        |  
|Balances At March 31, 2007                                         |  |             |   |                          |   |                  |  |   |                 |   |  |                  |     |                                            |  | $ | 30,083                   |  | $ | (386 | ) |  | $ | 29,697 |  
|                                                                   |  |             |    |                          |   |                   |  |   |                  |   |  |                  |      |                                            |  |   |                          |  |   |      |   |  |   |        |  
|                                                                   |  |             |    |                          |   |                   | 
|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 Gains, Net of Applicable Deferred Income Taxes |  |             |    |                          |   |                   |  |   |                  |   |  |                  |      |                                            |  |   |                          |  |   | 408  |   |  |   | 408    |  
|Stock Purchased for Recognition and Retention Plan                 |  |             |    |                          |   |                   |  |   |                  |   |  |                  | (250 | )                                          |  |   |                          |  |   |      |   |  |   | (250   | )
|Stock Option Expense                                               |  |             |    |                          |   | 25                |  |   |                  |   |  |                  |      |                                            |  |   |                          |  |   |      |   |  |   | 25     |  
|                                                                   |  |             |    |                          |   |                   |  |   |                  |   |  |                  |      |                                            |  |   |                          |  |   |      |   |  |   |        |  
|Balances at March 31, 2008                                         |  | $           | 63 |                          | $ | 62,098            |  | $ | (4,950           | ) |  | $                | (250 | )                                          |  | $ | 33,003                   |  | $ | 710  |   |  | $ | 90,674 |  
|                                                                   |  |             |    |                          |   |                   |  |   |                  |   |  |                  |      |                                            |  |   |                          |  |   |      |   |  |   |        |  

The accompanying notes are an integral part of these financial statements.



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LOUISIANA BANCORP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Dollars in Thousands)



|                                                                                  |  |                                     |         |   |      |   |        |  
|--------------------------------------------------------------------------------- |  | ----------------------------------- | ------- | - | ---- | - | ------ | -
|                                                                                  |  | For the Three MonthsEnded March 31, |        
|                                                                                  |  | 2008                                |         |   | 2007 |  
|CASH FLOWS FROM OPERATING ACTIVITIES                                              |  |                                     |         |   |      |   |        |  
|Net Income                                                                        |  | $                                   | 621     |   |      | $ | 342    |  
|                                                                                  |  |                                     |         |   |      |   |        |  
|Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |  |                                     |         |   |      |   |        |  
|Depreciation                                                                      |  |                                     | 59      |   |      |   | 63     |  
|Recovery for Loan Losses                                                          |  |                                     | (17     | ) |      |   | (4     | )
|Stock-based Compensation                                                          |  |                                     | 25      |   |      |   |       |  
|Discount (Accretion) Net of Premium Amortization                                  |  |                                     | (31     | ) |      |   | 44     |  
|Deferred Income Tax Benefit                                                       |  |                                     | (7      | ) |      |   |       |  
|Gain on Sale of Loans                                                             |  |                                     | (11     | ) |      |   | (4     | )
|Originations of Loans Held-for-Sale                                               |  |                                     | (445    | ) |      |   |       |  
|Proceeds from Sales of Loans Held-for-Sale                                        |  |                                     | 442     |   |      |   |       |  
|Decrease in Accrued Interest Receivable                                           |  |                                     | 144     |   |      |   | 64     |  
|Decrease (Increase) in Other Assets                                               |  |                                     | 14      |   |      |   | (27    | )
|Increase (Decrease) in Accrued Interest Payable                                   |  |                                     | 34      |   |      |   | (15    | )
|Increase (Decrease) in Other Liabilities                                          |  |                                     | 582     |   |      |   | (70    | )
|                                                                                  |  |                                     |         |   |      |   |        |  
|Net Cash Provided by Operating Activities                                         |  | $                                   | 1,410   |   |      | $ | 393    |  
|                                                                                  |  |                                     |         |   |      |   |        |  
|CASH FLOWS FROM INVESTING ACTIVITIES                                              |  |                                     |         |   |      |   |        |  
|Purchase of Certificates of Deposit                                               |  | $                                   | (594    | ) |      |   | (198   | )
|Purchase of Securities Available-for-Sale                                         |  |                                     | (7,769  | ) |      |   |       |  
|Purchase of Securities Held-to-Maturity                                           |  |                                     | (24,082 | ) |      |   |       |  
|Proceeds from Maturities of Certificates of Deposits                              |  |                                     | 693     |   |      |   | 1,188  |  
|Proceeds from Maturities of Securities Available-for-Sale                         |  |                                     | 11,310  |   |      |   | 1,967  |  
|Proceeds from Maturities of Securities Held-to-Maturity                           |  |                                     | 3,670   |   |      |   | 3,095  |  
|Proceeds from Sales of Securities Available-for-Sale                              |  |                                     |        |   |      |   |       |  
|Net Decrease (Increase) in Loans Receivable                                       |  |                                     | (4,091  | ) |      |   | (4,375 | )
|Proceeds from Sales of Loans Held for Investment                                  |  |                                     | 546     |   |      |   | 674    |  
|Purchase of Property and Equipment                                                |  |                                     | (5      | ) |      |   | (56    | )
|Net Decrease (Increase) in Investment in Federal Home Loan Bank Stock             |  |                                     | (15     | ) |      |   | 386    |  
|                                                                                  |  |                                     |         |   |      |   |        |  
|Net Cash (Used in) Provided by Investing Activities                               |  | $                                   | (20,337 | ) |      | $ | 2,681  |  
|                                                                                  |  |                                     |         |   |      |   |        |  
|CASH FLOWS FROM FINANCING ACTIVITIES                                              |  |                                     |         |   |      |   |        |  
|Decrease in Deposits                                                              |  |                                     | 5,129   |   |      |   | (2,471 | )
|Decrease in Advances by Borrowers for Taxes and Insurance                         |  |                                     | (344    | ) |      |   | (352   | )
|Increase (Decrease) in Borrowings                                                 |  |                                     | 13,852  |   |      |   | (1,104 | )
|Stock Purchased for ESOP                                                          |  |                                     | (250    | ) |      |   |       |  
|                                                                                  |  |                                     |         |   |      |   |        |  
|Net Cash Provided by (Used in) Financing Activities                               |  | $                                   | 18,387  |   |      | $ | (3,927 | )
|                                                                                  |  |                                     |         |   |      |   |        |  
|NET DECREASE IN CASH AND CASH EQUIVALENTS                                         |  |                                     | (540    | ) |      |   | (853   | )
|                                                                                  |  |                                     |         |   |      |   |        |  
|CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                    |  |                                     | 11,648  |   |      |   | 3,825  |  
|                                                                                  |  |                                     |         |   |      |   |        |  
|CASH AND CASH EQUIVALENTS, END OF PERIOD                                          |  | $                                   | 11,108  |   |      | $ | 2,972  |  
|                                                                                  |  |                                     |         |   |      |   |        |  
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                                  |  |                                     |         |   |      |   |        |  
|Cash Paid During the Period for:                                                  |  |                                     |         |   |      |   |        |  
|Interest                                                                          |  | $                                   | 1,414   |   |      | $ | 1,415  |  
|Income Taxes                                                                      |  | $                                   | 10      |   |      | $ |       |  

The accompanying notes are an integral part of these financial statements.



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LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES

BASIS OF PRESENTATION

Louisiana Bancorp, Inc., a Louisiana corporation (the Company or Louisiana Bancorp), was organized by the Bank of New Orleans (the Bank) in March 2007 to facilitate the conversion
of the Bank from the mutual to the stock form (the Conversion). The Conversion was completed on July 9, 2007, at which time the Company became the holding company for the Bank and issued 6,345,732 shares of its common stock to
certain depositors of the Bank and the Companys employee stock ownership plan in a subscription offering. 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 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, 2008, are
not necessarily indicative of the results which may be expected for the entire fiscal year.

NATURE OF OPERATIONS

The Bank is a Federal stock form savings bank which attracts deposits from the general public and uses such deposits primarily to
originate loans secured by first mortgages on owner-occupied, single family residences and other properties, as well as those for other 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 Banks activities are with customers located within the greater New Orleans area in Louisiana. Note B summarizes the types of securities in which the Bank invests. Note C summarizes the types of
lending in which the Bank engages. The Bank does not have any significant concentrations in any one industry or to any one customer.

CASH AND CASH EQUIVALENTS

For the purposes of the Statements of Cash Flows, cash and cash equivalents
include cash and balances due from banks, short-term interest-bearing deposits in other banks, federal funds sold and securities purchased under agreements to resell, all of which were purchased with an original maturity of three months or less.

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 Bank has the positive intent and ability to hold these securities to maturity.

The Bank held no trading securities as of March 31, 2008 or December 31, 2007.

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.



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LOANS

The Bank 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 Banks debtors to honor their contracts is dependent, in part, upon the real estate and general economic conditions in this area.

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. When a loan is placed on non-accrual status, interest accrued during the current year prior to the
judgment of uncollectibility is charged to operations. Interest accrued during prior periods is charged to the allowance for loan losses. Generally, any payments received on non-accrual loans are applied first to outstanding loan amounts and next to
the recovery of charged-off loan amounts. Any excess is treated as recovery of lost interest.

The Bank considers a loan to
be impaired when, based upon current information and events, it believes it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. The Banks impaired loans include troubled
debt restructuring, and performing and non-performing major loans in which full payment of principal or interest is not expected. The Bank 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 Bank 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 Banks interest rate risk strategy. In addition, the Bank occasionally
sells loans that it originates, but cannot hold, due to regulatory limitations on loans to one borrower, 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 Banks agreement
with SLMA, these loans are transferred to the held-for-sale category and are sold, once the student has gone into repayment status.



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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 amortized 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.

PREMISES AND EQUIPMENT

Premises and equipment are carried at cost, less accumulated depreciation. The Bank computes depreciation and amortization generally on the straight-line method for both financial reporting and Federal income tax purposes. Estimated useful
lives of premises and equipment range as follows:



|                                  |  |              
|--------------------------------- |  | -------------
|Buildings                         |  | 20  40 Years
|Furniture, Fixtures and Equipment |  | 3  10 Years 
|Automobiles                       |  | 5 Years      

REAL ESTATE OWNED

Real estate acquired through, or in lieu of, loan foreclosure is initially recorded at fair value, less estimated cost to sell, at the
date of foreclosure and any related write-down is charged to the allowance for loan losses. Management periodically performs valuations, and an allowance for losses will be established when any significant and permanent decline reduces the fair
value to less than the carrying value. The ability of the Bank to recover the carrying value of real estate is based upon future sales of the real estate owned. The ability to affect such sales is subject to market conditions and other factors, many
of which are beyond the Banks control. Operating income of such properties, net of related expenses, and gains and losses on their disposition are included in the accompanying statements of income.

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.

ADVERTISING COSTS

The Bank expenses advertising costs as incurred. Advertising costs were $44,000 and $32,000 for the three months ended March 31,
2008 and 2007, respectively.

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.



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NOTE B  SECURITIES

A summary of securities classified as available-for-sale at March 31, 2008 and December 31, 2007, with gross unrealized gains
and losses, is as follows:



|                                       |  |                   |        |                      |   |                       |  |   |                     |   |  |   |       
|-------------------------------------- |  | ----------------- | ------ | -------------------- | - | --------------------- |  | - | ------------------- | - |  | - | ------
|                                       |  | March 31, 2008   
|                                       |  | AmortizedCost     |        | GrossUnrealizedGains |   | GrossUnrealizedLosses |  |   | EstimatedFair Value
|                                       |  | (In Thousands)   
|Securities Available-for-Sale          |  |                   |        |                      |   |                       |  |   |                     |   |  |   |       
|U.S. Government and Agency Obligations |  | $                 | 39,090 |                      | $ | 594                   |  | $ |                    |   |  | $ | 39,684
|                                       |  |                   |        |                      |   |                       |  |   |                     |   |  |   |       
|Mortgage-Backed Securities:            |  |                   |        |                      |   |                       |  |   |                     |   |  |   |       
|GNMA                                   |  |                   | 902    |                      | $ | 38                    |  |   |                    |   |  |   | 940   
|FNMA                                   |  |                   | 19,958 |                      |   | 309                   |  |   | (14                 | ) |  |   | 20,253
|FHLMC                                  |  |                   | 8,660  |                      |   | 149                   |  |   |                    |   |  |   | 8,809 
|                                       |  |                   |        |                      |   |                       |  |   |                     |   |  |   |       
|Total Mortgage-Backed Securities       |  |                   | 29,520 |                      |   | 496                   |  |   | (14                 | ) |  |   | 30,002
|                                       |  |                   |        |                      |   |                       |  |   |                     |   |  |   |       
|Total Securities Available-for-Sale    |  | $                 | 68,610 |                      | $ | 1,090                 |  | $ | (14                 | ) |  | $ | 69,686
|                                       |  |                   |        |                      |   |                       |  |   |                     |   |  |   |       
|                                       | 
|                                       |  | December 31, 2007
|                                       |  | AmortizedCost     |        | GrossUnrealizedGains |   | GrossUnrealizedLosses |  |   | EstimatedFair Value
|                                       |  | (In Thousands)   
|Securities Available-for-Sale          |  |                   |        |                      |   |                       |  |   |                     |   |  |   |       
|U.S. Government and Agency Obligations |  | $                 | 40,138 |                      | $ | 332                   |  | $ | (2                  | ) |  | $ | 40,468
|                                       |  |                   |        |                      |   |                       |  |   |                     |   |  |   |       
|Mortgage-Backed Securities:            |  |                   |        |                      |   |                       |  |   |                     |   |  |   |       
|GNMA                                   |  |                   | 909    |                      | $ | 31                    |  |   |                    |   |  |   | 940   
|FNMA                                   |  |                   | 21,452 |                      |   | 111                   |  |   | (80                 | ) |  |   | 21,483
|FHLMC                                  |  |                   | 9,679  |                      |   | 78                    |  |   | (12                 | ) |  |   | 9,745 
|                                       |  |                   |        |                      |   |                       |  |   |                     |   |  |   |       
|Total Mortgage-Backed Securities       |  |                   | 32,040 |                      |   | 220                   |  |   | (92                 | ) |  |   | 32,168
|                                       |  |                   |        |                      |   |                       |  |   |                     |   |  |   |       
|Total Securities Available-for-Sale    |  | $                 | 72,178 |                      | $ | 552                   |  | $ | (94                 | ) |  | $ | 72,636
|                                       |  |                   |        |                      |   |                       |  |   |                     |   |  |   |       



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A summary of securities classified as held-to-maturity at March 31, 2008 and
December 31, 2007, with gross unrealized gains and losses, is as follows:



|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|-------------------------------------- |  | ----------------- | ------- | -------------------- | - | --------------------- |  | - | ------------------- | - |  | - | -------
|                                       |  | March 31, 2008   
|                                       |  | AmortizedCost     |         | GrossUnrealizedGains |   | GrossUnrealizedLosses |  |   | EstimatedFair Value
|                                       |  | (In Thousands)   
|Securities Held-to-Maturity:           |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|U.S. Government and Agency Obligations |  | $                 | 3,500   |                      | $ | 49                    |  | $ |                    |   |  | $ | 3,549  
|Municipal Obligations:                 |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Revenue Bonds                          |  |                   | 550     |                      |   | 30                    |  |   |                    |   |  |   | 580    
|General Obligation Bonds               |  |                   | 2,901   |                      |   | 129                   |  |   |                    |   |  |   | 3,030  
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Municipal Obligations            |  |                   | 3,451   |                      |   | 159                   |  |   |                    |   |  |   | 3,610  
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Mortgage-Backed Securities:            |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|GNMA                                   |  |                   | 1,647   |                      |   | 72                    |  |   |                    |   |  |   | 1,719  
|FNMA                                   |  |                   | 64,806  |                      |   | 1,068                 |  |   | (26                 | ) |  |   | 65,848 
|FHLMC                                  |  |                   | 28,709  |                      |   | 693                   |  |   | (9                  | ) |  |   | 29,393 
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Mortgage-Backed Securities       |  |                   | 95,162  |                      |   | 1,833                 |  |   | (35                 | ) |  |   | 96,960 
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Securities-Held-to-Maturity      |  | $                 | 102,113 |                      | $ | 2,041                 |  | $ | (35                 | ) |  | $ | 104,119
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|                                       | 
|                                       |  | December 31, 2007
|                                       |  | AmortizedCost     |         | GrossUnrealizedGains |   | GrossUnrealizedLosses |  |   | EstimatedFair Value
|                                       |  | (In Thousands)   
|Securities Held-to-Maturity:           |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|U.S. Government and Agency Obligations |  | $                 | 3,500   |                      | $ | 34                    |  | $ |                    |   |  | $ | 3,534  
|Municipal Obligations:                 |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Revenue Bonds                          |  |                   | 550     |                      |   | 24                    |  |   |                    |   |  |   | 574    
|General Obligation Bond                |  |                   | 2,900   |                      |   | 98                    |  |   |                    |   |  |   | 2,998  
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Municipal Obligations            |  |                   | 3,450   |                      |   | 122                   |  |   |                    |   |  |   | 3,572  
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Mortgage-Backed Securities:            |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|GNMA                                   |  |                   | 1,761   |                      |   | 62                    |  |   |                    |   |  |   | 1,823  
|FNMA                                   |  |                   | 43,203  |                      |   | 532                   |  |   | (79                 | ) |  |   | 43,656 
|FHLMC                                  |  |                   | 29,729  |                      |   | 358                   |  |   | (50                 | ) |  |   | 30,037 
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Mortgage-Backed Securities       |  |                   | 74,693  |                      |   | 952                   |  |   | (129                | ) |  |   | 75,516 
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Securities-Held-to-Maturity      |  | $                 | 81,643  |                      | $ | 1,108                 |  | $ | (129                | ) |  | $ | 82,622 
|                                       |  |                   |         |                      |   |                       |  |   |                     |   |  |   |        

The amortized cost and fair value of available-for-sale and held-to-maturity
securities by contractual maturity at March 31, 2008, 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      |  | $                             | 20,741 |                             | $ | 21,025        |  | $                   | 19      |  | $ | 19     
|One to Five Years    |  |                               | 24,113 |                             |   | 24,341        |  |                     | 7,138   |  |   | 7,355  
|Five to Ten Years    |  |                               | 13,021 |                             |   | 13,418        |  |                     | 14,600  |  |   | 14,926 
|Over Ten Years       |  |                               | 10,735 |                             |   | 10,902        |  |                     | 80,356  |  |   | 81,820 
|                     |  |                               |        |                             |   |               |  |                     |         |  |   |        
|                     |  | $                             | 68,610 |                             | $ | 69,686        |  | $                   | 102,113 |  | $ | 104,120
|                     |  |                               |        |                             |   |               |  |                     |         |  |   |        



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##### Table of Contents

Information pertaining to securities with gross unrealized losses at March 31, 2008
and December 31, 2007, 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      |    | EstimatedFair Value           |   | GrossUnrealizedLosses |  | EstimatedFair Value
|                                       |  | (In Thousands)            
|March 31, 2008                         |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|U.S. Government and Agency Obligations |  | $                          |   |                               | $ |                      |  | $                   |    |  | $ |      
|                                       |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|Mortgage-Backed Securities:            |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|FNMA                                   |  |                            |   |                               |   |                      |  |                     | 14  |  |   | 1,328 
|FHLMC                                  |  |                            |   |                               |   |                      |  |                     | 1   |  |   | 928   
|                                       |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|Total Mortgage-Backed Securities       |  |                            |   |                               |   |                      |  |                     | 15  |  |   | 2,256 
|                                       |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|Total                                  |  | $                          |   |                               | $ |                      |  | $                   | 15  |  | $ | 2,256 
|                                       |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|December 31, 2007                      |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|U.S. Government and Agency Obligations |  | $                          | 2  |                               | $ | 1,498                 |  | $                   |    |  | $ |      
|                                       |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|Mortgage-Backed Securities:            |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|FNMA                                   |  |                            |   |                               |   |                      |  |                     | 80  |  |   | 13,974
|FHLMC                                  |  |                            |   |                               |   |                      |  |                     | 12  |  |   | 5,675 
|                                       |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|Total Mortgage-Backed Securities       |  |                            |   |                               |   |                      |  |                     | 92  |  |   | 19,649
|                                       |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|Total                                  |  | $                          | 2  |                               | $ | 1,498                 |  | $                   | 92  |  | $ | 19,649
|                                       |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|                                       | 
|                                       |  | Held-to-Maturity          
|                                       |  | Losses Less Than 12 Months |    | Losses Greater Than 12 Months
|                                       |  | GrossUnrealizedLosses      |    | EstimatedFair Value           |   | GrossUnrealizedLosses |  | EstimatedFair Value
|                                       |  | (In Thousands)            
|March 31, 2008                         |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|Mortgage-Backed Securities:            |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|GNMA                                   |  | $                          |   |                               | $ |                      |  | $                   |    |  | $ |      
|FNMA                                   |  |                            | 19 |                               |   | 4,759                 |  |                     | 6   |  |   | 828   
|FHLMC                                  |  |                            |   |                               |   |                      |  |                     | 9   |  |   | 1,015 
|                                       |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|Total                                  |  | $                          | 19 |                               | $ | 4,759                 |  | $                   | 15  |  | $ | 1,843 
|                                       |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|December 31, 2007                      |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|Mortgage-Backed Securities:            |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|GNMA                                   |  | $                          |   |                               | $ |                      |  | $                   |    |  | $ |      
|FNMA                                   |  |                            | 2  |                               |   | 527                   |  |                     | 77  |  |   | 11,543
|FHLMC                                  |  |                            | 5  |                               |   | 752                   |  |                     | 45  |  |   | 4,132 
|                                       |  |                            |    |                               |   |                       |  |                     |     |  |   |       
|Total                                  |  | $                          | 7  |                               | $ | 1,279                 |  | $                   | 122 |  | $ | 15,675
|                                       |  |                            |    |                               |   |                       |  |                     |     |  |   |       

The unrealized losses on the Banks investments were caused by interest rate
increases. The Bank purchased these investments at a premium relative to their face amount in anticipation of a continuing stable interest rate environment. Because the decline in market value is attributable to changes in interest rates and not
credit quality and because the Bank has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, the Bank did not consider these investments to be other-than-temporarily impaired at March 31, 2008
or December 31, 2007.



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##### Table of Contents

NOTE C  LOANS

A summary of the balances of loans follows:



|                                                 |  |                |         |   |                   |   |        |  
|------------------------------------------------ |  | -------------- | ------- | - | ----------------- | - | ------ | -
|                                                 |  | March 31, 2008 |         |   | December 31, 2007 |  
|                                                 |  | (In Thousands) |        
|Loans Secured by First Mortgages on Real Estate: |  |                |         |   |                   |   |        |  
|1-4 Family Residential                           |  | $              | 45,536  |   |                   | $ | 46,437 |  
|Multi-Family Residential, Commercial and Land    |  |                | 44,444  |   |                   |   | 40,215 |  
|                                                 |  |                |         |   |                   |   |        |  
|Total Real Estate Loans                          |  |                | 89,980  |   |                   |   | 86,652 |  
|                                                 |  |                |         |   |                   |   |        |  
|Consumer and Other Loans:                        |  |                |         |   |                   |   |        |  
|Student Loans                                    |  |                | 2,175   |   |                   |   | 2,133  |  
|Loans Secured by Deposits                        |  |                | 313     |   |                   |   | 530    |  
|Home Equity Loans and Lines                      |  |                | 9,005   |   |                   |   | 8,702  |  
|Other                                            |  |                | 1,351   |   |                   |   | 1,260  |  
|                                                 |  |                |         |   |                   |   |        |  
|Total Consumer and Other Loans                   |  |                | 12,844  |   |                   |   | 12,625 |  
|                                                 |  |                |         |   |                   |   |        |  
|Less:                                            |  |                |         |   |                   |   |        |  
|Allowance for Loan Losses                        |  |                | (1,982  | ) |                   |   | (1,999 | )
|Net Deferred Loan Origination Costs              |  |                | (364    | ) |                   |   | (376   | )
|                                                 |  |                |         |   |                   |   |        |  
|Loans, Net                                       |  | $              | 100,478 |   |                   | $ | 96,902 |  
|                                                 |  |                |         |   |                   |   |        |  

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



|                                     |  |                                  |       |   |                             |   |       |  
|------------------------------------ |  | -------------------------------- | ----- | - | --------------------------- | - | ----- | -
|                                     |  | Three Months EndedMarch 31, 2008 |       |   | Year EndedDecember 31, 2007 |  
|                                     |  | (In Thousands)                   |      
|Balance, Beginning of Period         |  | $                                | 1,999 |   |                             | $ | 2,292 |  
|Reduction of Provision for Losses    |  |                                  | (17   | ) |                             |   | (268  | )
|Loans Charged-off, net of recoveries |  |                                  |      |   |                             |   | (25   | )
|                                     |  |                                  |       |   |                             |   |       |  
|Balance, End of Period               |  | $                                | 1,982 |   |                             | $ | 1,999 |  
|                                     |  |                                  |       |   |                             |   |       |  

Nonaccrual loans, net of allowance for loan loss, amounted to approximately
$300,000 and $502,000 at March 31, 2008 and December 31, 2007, respectively. As of March 31, 2008 and December 31, 2007, the Bank did not hold any loans classified as troubled debt restructurings.

NOTE D  REGULATORY MATTERS

The
Bank is subject to various regulatory capital requirements administered by its primary federal regulator, the Office of Thrift Supervision (OTS). Failure to meet the minimum regulatory capital requirements can initiate certain mandatory, and
possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank and the Companys financial statements. Under the regulatory capital adequacy guidelines and the regulatory framework
for prompt corrective action, the Bank must meet specific capital guidelines involving quantitative measures of the Banks assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The
Banks capital amounts and classification under the prompt corrective action guidelines are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of:
total risk-based capital and Tier I capital to risk-weighted assets (as defined in the regulations), Tier I capital to adjusted total assets (as defined), tangible capital to adjusted total assets (as defined), and tangible equity to adjusted total
assets (as defined). As of March 31, 2008 and December 31, 2007, the Bank met all of the capital requirements to which it is subject and is deemed to be well capitalized. There have been no subsequent conditions or events which management
believes have changed the Banks status.



14



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##### Table of Contents

The actual and required capital amounts and ratios applicable to the Bank at
March 31, 2008 and December 31, 2007, 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, 2008            |  |        |        |       |                              |   |                        |                                                                       |       |  |      |        |  |       |        |  |       |  
|Tangible Capital          |  | $      | 58,552 |       | 21.90                        | % |                        | $                                                                     | 4,010 |  | 1.50 | %      |  |       | N/A    |  | N/A   |  
|Tangible Equity Ratio     |  |        | 58,552 |       | 21.90                        |   |                        |                                                                       | 5,347 |  | 2.00 |        |  |       | N/A    |  | N/A   |  
|Core/Leverage Capital     |  |        | 58,552 |       | 21.90                        |   |                        |                                                                       | 8,021 |  | 3.00 |        |  | $     | 13,368 |  | 5.00  | %
|Tier 1 Risk-Based Capital |  |        | 58,366 |       | 54.04                        |   |                        |                                                                       | 4,320 |  | 4.00 |        |  |       | 6,480  |  | 6.00  |  
|Total Risk-Based Capital  |  | $      | 59,720 |       | 55.29                        | % |                        | $                                                                     | 8,641 |  | 8.00 | %      |  | $     | 10,801 |  | 10.00 | %
|                          |  |        |        |       |                              |  
|December 31, 2007         |  |        |        |       |                              |   |                        |                                                                       |       |  |      |        |  |       |        |  |       |  
|Tangible Capital          |  | $      | 58,084 |       | 23.52                        | % |                        | $                                                                     | 3,704 |  | 1.50 | %      |  |       | N/A    |  | N/A   |  
|Tangible Equity Ratio     |  |        | 58,084 |       | 23.52                        |   |                        |                                                                       | 4,939 |  | 2.00 |        |  |       | N/A    |  | N/A   |  
|Core/Leverage Capital     |  |        | 58,084 |       | 23.52                        |   |                        |                                                                       | 7,408 |  | 3.00 |        |  | $     | 12,347 |  | 5.00  | %
|Tier 1 Risk-Based Capital |  |        | 57,906 |       | 57.72                        |   |                        |                                                                       | 4,013 |  | 4.00 |        |  |       | 6,020  |  | 6.00  |  
|Total Risk-Based Capital  |  | $      | 59,165 |       | 58.97                        | % |                        | $                                                                     | 8,026 |  | 8.00 | %      |  | $     | 10,033 |  | 10.00 | %

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



|                                                  |  |                |        |   |                   |   |        |  
|------------------------------------------------- |  | -------------- | ------ | - | ----------------- | - | ------ | -
|                                                  |  | March 31, 2008 |        |   | December 31, 2007 |  
|                                                  |  | (In Thousands) |       
|Capital Under GAAP                                |  | $              | 59,108 |   |                   | $ | 58,281 |  
|Unrealized Gains on Available-for-Sale Securities |  |                | (556   | ) |                   |   | (197   | )
|                                                  |  |                |        |   |                   |   |        |  
|Tier 1 Capital                                    |  |                | 58,552 |   |                   |   | 58,084 |  
|Allowance for Loan Losses(1)                      |  |                | 1,354  |   |                   |   | 1,259  |  
|Recourse Obligations                              |  |                | (186   | ) |                   |   | (178   | )
|                                                  |  |                |        |   |                   |   |        |  
|Total-Risk Based Capital                          |  | $              | 59,720 |   |                   | $ | 59,165 |  
|                                                  |  |                |        |   |                   |   |        |  



|(1) | The allowance for loan losses included in risk-based capital is limited to 1.25% of risk-based assets. At March 31, 2008, $300,000 of the Banks allowance for loan losses
was excluded from total risk-based capital.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

NOTE E  EMPLOYEE STOCK OWNERSHIP PLAN

In connection with the Conversion, the Bank established an employee stock ownership plan (ESOP) that will provide retirement
benefits to all eligible employees of Bank of New Orleans. On July 9, 2007, the ESOP borrowed $5,076,590 from Company and used these funds to purchase 8%, or 507,659 shares, of the shares sold in the Companys offering. As the loan is
repaid and shares are released from collateral, the shares will be allocated to the ESOP participants based on their individual compensation as a percentage of total plan compensation. The Bank will recognize compensation expense equal to the fair
value of the ESOP shares committed to be released during the period.



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##### Table of Contents

NOTE F  EARNINGS PER COMMON SHARE

Earnings per common share are computed using the weighted average number of shares outstanding as prescribed in SFAS No. 128. Earnings per common
share are not presented for the period ending March 31, 2007, because the Companys conversion to a stock form of ownership did not occur until July 2007.



|                                                                   |  |                                  |           |  
|------------------------------------------------------------------ |  | -------------------------------- | --------- | -
|                                                                   |  | Three Months EndedMarch 31, 2008 |          
|Net Income                                                         |  | $                                | 621,000   |  
|                                                                   |  |                                  |           |  
|                                                                   | 
|Weighted average shares outstanding                                |  |                                  | 6,345,732 |  
|Weighted average Unearned ESOP Shares                              |  |                                  | (494,968  | )
|Weighted average Unearned RRP Shares                               |  |                                  | (22,002   | )
|                                                                   | 
|Weighted average shares outstanding for basic earnings per share   |  |                                  | 5,828,762 |  
|                                                                   |  |                                  |           |  
|Earnings per share, basic                                          |  | $                                | 0.11      |  
|                                                                   | 
|Weighted average shares outstanding for basic earnings per share   |  |                                  | 5,828,762 |  
|Effect of dilutive securities                                      |  |                                  |          |  
|Weighted average shares outstanding for diluted earnings per share |  |                                  | 5,828,762 |  
|                                                                   |  |                                  |           |  
|Earnings per share, diluted                                        |  | $                                | 0.11      |  

NOTE G  RECOGNITION AND RETENTION PLAN

On February 14, 2008, the shareholders of Louisiana Bancorp approved the Companys 2007 Recognition and Retention Plan. The 2007 Recognition and
Retention Plan will provide the Companys directors and key employees with an equity interest in the Company as compensation for their contributions to the success of the Company, and as an incentive for future such contributions. The
Compensation Committee of the Company makes grants under the 2007 Recognition and Retention Plan to eligible participants based on these factors. Plan participants will vest in their share awards at a rate of 20% per year over a five year
period, beginning on the date of the plan share award. If service to the Company is terminated for any reason other than death, disability or change in control, the unvested shares awards shall be forfeited.

The Recognition and Retention Plan Trust has been established to acquire, hold, administer, invest, and make distributions from the Trust in accordance
with provisions of the Plan and Trust. The Trust will acquire 4%, or 253,829 shares, of the issued and outstanding shares of the Company, which will be held pursuant to the Plans vesting requirements. The Recognition and Retention Plan
provides that grants to each officer or employee and non-employee director shall not exceed 25% and 5%, respectively. Shares awarded to non-employee directors in the aggregate shall not exceed 30% of the shares available under the Plan. On
February 14, 2008, 221,177 shares were awarded under the provisions of the Plan to directors, officers and employees of the Company. As of March 31, 2008, 22,002 shares had been acquired by the Trust for future distributions.

The company will recognize compensation expense during the vesting period based on a share price of $11.52, the closing price of the Companys
common stock on the date of the plan awards. Compensation expense related to the Recognition and Retention Plan during the quarter ended March 31, 2008 was $63,700.



|                                          |  |                   |  |                      |      
|----------------------------------------- |  | ----------------- |  | -------------------- | -----
|                                          |  | At March 31, 2008
|                                          |  | Numberof Shares   |  | Grant DateFair Value
|Shares Granted                            |  | 221,177           |  | $                    | 11.52
|Shares Vested                             |  |                  |  |                      |      
|Shares Forfeited                          |  |                  |  |                      |      
|                                          |  |                   |  |                      |      
|Nonvested Shares at the end of the Period |  | 221,177           |  | $                    | 11.52
|                                          |  |                   |  |                      |      



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##### Table of Contents

NOTE H  STOCK OPTION PLAN

On February 14, 2008, the shareholders of Louisiana Bancorp also approved the Companys 2007 Stock Option Plan. The 2007 Recognition and Retention Plan will provide the Companys directors and key
employees with an equity interest in the Company as compensation for their contributions to the success of the Company, and as an incentive for future such contributions. The Compensation Committee of the Company grants options to eligible
participants based on these factors. Plan participants will vest in their options at a rate of 20% per year over a five year period, beginning on the grant date of the option. Vested options have an exercise period of ten years commencing on
the date of grant. If service to the Company is terminated for any reason other than death, disability or change in control, the unvested options shall be forfeited.

Pursuant to the terms of the Option plan, 634,573 shares, or 10%, of common stock of the Company have been reserved for future issuance. The Stock Option Plan provides that grants to each officer or employee and
non-employee director shall not exceed 25% and 5%, respectively. Options granted to non-employee directors in the aggregate shall not exceed 30% of the shares available under the Plan. On February 14, 2008, 459,197 shares were granted under the
provisions of the Plan to directors, officers and employees of the Company.



|                                             |  |                   |  |               |      
|-------------------------------------------- |  | ----------------- |  | ------------- | -----
|                                             |  | At March 31, 2008
|                                             |  | Numberof Shares   |  | ExercisePrice
|Options Granted                              |  | 459,197           |  | $             | 11.52
|Options Exercised                            |  |                  |  |               |      
|Options Forfeited                            |  |                  |  |               |      
|                                             |  |                   |  |               |      
|Outstanding Options at the end of the Period |  | 459,197           |  | $             | 11.52
|                                             |  |                   |  |               |      

The company will recognize compensation expense during the vesting period based on the fair value
of the option on the date of grant. The fair value on the date of grant was estimated to be $2.21, as determined by use of the Black-Scholes Option Pricing Model with the following assumptions:



|                         |  |           |  
|------------------------ |  | --------- | -
|Dividend Yield           |  | 1.39      | %
|Expected Volatility      |  | 13.59     | %
|Risk-free interest rate  |  | 3.29      | %
|Expected Life of options |  | 7.5 years |  

The dividend yield is reflective of the Companys expectations regarding future periods.
Actual dividend yields may vary from this assumption. Due to the brief trading experience of the Companys stock, a peer group of similarly capitalized and converted institutions was used in deriving the expected volatility component of the
calculation. The risk-free interest rate reflects the interpolated rate for a U.S. Treasury security with a term equivalent to the expected life of the options.

Compensation expense related to the Stock Option Plan during the quarter ended March 31, 2008 was $25,370.



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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 initially will be 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 A 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, 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.

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.



18



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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, 2008
and December 31, 2007

Our total assets at March 31, 2008 were $291.0 million, an increase of $20.1 million from the
December 31, 2007 balance of $270.9 million. During this period, our mortgage-backed securities portfolio increased by $18.3 million in the aggregate. This increase was due primarily to a wholesale funding strategy, in which Fannie Mae and
Freddie Mac fixed-rate mortgage-backed securities were purchased with a blend of reverse repurchase agreements and FHLB advances. Our net loans receivable increased during the first quarter of 2008 by $3.6 million, or 3.7% from the quarter ended
December 31, 2007. This growth occurred primarily in mortgage loans secured by commercial real estate.

Total deposits increased by
$5.1 million during the quarter ended March 31, 2008 to $148.8 million. Non-interest bearing deposits increased by $3.1 million and interest bearing deposits increased by $2.0 million during the period. The growth in non-interest bearing
accounts was due to short-term customer deposits that were subsequently withdrawn following the end of the quarter. Total borrowings, which includes FHLB advances and reverse repurchase agreements, were $48.3 million at March 31, 2008, an
increase of $13.9 million from December 31, 2007. These additional borrowings were used primarily to fund the acquisition of mortgage-backed securities, as stated previously.

Total shareholders equity increased by $804,000 during the quarter to $90.7 million. Net income of $621,000 and an increase of $408,000 in other
comprehensive income account were partially offset by the establishment of a contra equity account for unearned Recognition and Retention Plan shares of $250,000. Additional information related to the Recognition and Retention Plan can be found in
Note F of our financial statements.

Comparison of Our Operating Results for the Three Months Ended March 31, 2008 and 2007

General.The Companys net income for the quarter ended March 31, 2008 was $621,000, an increase of $279,000, or 81.6%, from the quarter
ended March 31, 2007. The increase in net income for the first quarter of 2008 was due to an increase in interest income of $853,000 resulting from an increase in the average balance of our interest earning assets. Average interest earning
assets grew by $61.8 million from the quarter ended March 31, 2007 to the quarter ended March 31, 2008 due primarily to the investment of $62.1 million of net proceeds from our initial public offering in July 2007. This increase in
interest income was partially offset by a $394,000 increase in non-interest expense and a $147,000 increase in income tax expense during the first quarter of 2008 as compared to the first quarter of 2007.

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 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.



19



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##### Table of Contents

|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|----------------------------------------------------------------------- |  | ---------------------------- | ------- | -------- | ---- | -------------------- |  | ------ | -------------- |  | -------- | ------- | ----------------- | - | ----- |  | ------ | -
|                                                                        |  | Three Months Ended March 31, |        
|                                                                        |  | 2008                         |         |          | 2007 |                     
|                                                                        |  | AverageBalance               |         | Interest |      | AverageYield/Rate(1) |  |        | AverageBalance |  | Interest |         | AverageYield/Rate |  
|Interest-earning assets:                                                |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Loans receivable(1)                                                     |  | $                            | 98,102  |          | $    | 1,683                |  | 6.86   | %              |  | $        | 92,898  |                   | $ | 1,551 |  | 6.68   | %
|Mortgage-backed securities                                              |  |                              | 113,450 |          |      | 1,420                |  | 5.01   |                |  |          | 88,185  |                   |   | 1,039 |  | 4.71   |  
|Investment securities                                                   |  |                              | 45,362  |          |      | 561                  |  | 4.95   |                |  |          | 25,417  |                   |   | 312   |  | 4.91   |  
|Other interest-earning assets                                           |  |                              | 15,789  |          |      | 153                  |  | 3.88   |                |  |          | 4,445   |                   |   | 62    |  | 5.58   |  
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Total interest-earning assets                                           |  |                              | 272,703 |          |      | 3,817                |  | 5.60   |                |  |          | 210,945 |                   |   | 2,964 |  | 5.62   |  
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Non-interest-earning assets                                             |  |                              | 6,384   |          |      |                      |  |        |                |  |          | 6,558   |                   |   |       |  |        |  
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Total assets                                                            |  |                              | 279,087 |          |      |                      |  |        |                |  |          | 217,503 |                   |   |       |  |        |  
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Interest-bearing liabilities:                                           |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Passbook, checking and money market accounts                            |  |                              | 45,545  |          |      | 46                   |  | 0.40   |                |  |          | 47,048  |                   |   | 49    |  | 0.42   |  
|Certificate accounts                                                    |  |                              | 95,258  |          |      | 984                  |  | 4.13   |                |  |          | 96,996  |                   |   | 964   |  | 3.98   |  
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Total deposits                                                          |  |                              | 140,803 |          |      | 1,030                |  | 2.93   |                |  |          | 144,044 |                   |   | 1,013 |  | 2.81   |  
|Borrowings                                                              |  |                              | 40,407  |          |      | 419                  |  | 4.15   |                |  |          | 34,835  |                   |   | 387   |  | 4.44   |  
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Total interest-bearing liabilities                                      |  |                              | 181,210 |          |      | 1,449                |  | 3.20   | %              |  |          | 178,879 |                   |   | 1,400 |  | 3.13   | %
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Non-interest-bearing liabilities                                        |  |                              | 7,397   |          |      |                      |  |        |                |  |          | 9,110   |                   |   |       |  |        |  
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Total liabilities                                                       |  |                              | 188,607 |          |      |                      |  |        |                |  |          | 187,989 |                   |   |       |  |        |  
|Stockholders Equity                                                    |  |                              | 90,480  |          |      |                      |  |        |                |  |          | 29,514  |                   |   |       |  |        |  
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Total liabilities and Stockholders Equity                              |  | $                            | 279,087 |          |      |                      |  |        |                |  | $        | 217,503 |                   |   |       |  |        |  
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Net interest-earning assets                                             |  | $                            | 91,493  |          |      |                      |  |        |                |  | $        | 32,066  |                   |   |       |  |        |  
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Net interest income; average interest rate spread                       |  |                              |         |          | $    | 2,368                |  | 2.40   | %              |  |          |         |                   | $ | 1,564 |  | 2.49   | %
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Net interest margin(2)                                                  |  |                              |         |          |      |                      |  | 3.47   | %              |  |          |         |                   |   |       |  | 2.97   | %
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  
|Average interest-earning assets to average interest-bearing liabilities |  |                              |         |          |      |                      |  | 150.49 | %              |  |          |         |                   |   |       |  | 117.93 | %
|                                                                        |  |                              |         |          |      |                      |  |        |                |  |          |         |                   |   |       |  |        |  



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

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

Interest Income. Interest income was $3.8 million for the first quarter of 2008, an increase of $853,000 from the quarter ended March 31, 2007. Total average interest earning assets grew by $61.8 million
during that time period, as a result of the investment of the net proceeds from the Companys initial public offering in July 2007. The average balance of our net loan portfolio increased by $5.2 million, or 5.6%, in comparison to the average
balance of the net loan portfolio during the quarter ended March 31, 2007. The average yield on our net loan portfolio increased by 18 basis points during the first quarter of 2008, in comparison to the first quarter of 2007. The average
balance of our mortgage-backed securities increased by $25.3 million, or 28.6% during the period ended March 31, 2008, as compared to the quarter ended March 31, 2007. The average balance in our investment securities and other
interest-earnings assets increased $19.9 million and $11.3 million respectively, in the first quarter of 2008 compared to the third quarter of 2007. The increases in the average balances of our mortgage-backed securities, investments securities, and
other interest-earning assets were due primarily to the investment of the proceeds of the Companys stock offering. The average yield on other interest-earning assets had a 170 basis point decline during the first quarter of 2008, as compared
to the first quarter of 2007. This decline in average yield was due primarily to the 300 basis point decrease in the Federal Funds rate during the twelve month period beginning March 31, 2007. The average yield on total interest earning assets
had a modest decline of 2 basis points during the first quarter of 2008, in comparison to the first quarter of 2007.



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Interest Expense. The Banks total interest expense was $1.4 million for the first quarter of
both 2008 and 2007. The average rate paid on interest-bearing liabilities increased to 3.20%, an increase of 7 basis points, during the 2008 period, compared to 3.13% in the first quarter of 2007. The average rate paid on our certificates of
deposits was 4.13% during the quarter ended March 31, 2008, an increase of 15 basis points from the quarter ended March 31, 2007. This increase was due to higher markets rates of interest during the first, second and third quarters of
2007. The average rate paid on our borrowings, which includes FHLB advances and reverse repurchase agreements, was 4.15% for the first quarter of 2008, a decrease of 29 basis points from the first quarter of 2007. This decrease is due to the
addition of lower costing wholesale funds during the twelve month period ending March 31, 2008. Our average total borrowings were $40.4 million at March 31, 2008, an increase of $5.6 million from the quarter ended March 31, 2007.

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.

We had a $17,000 recovery for loans losses in the quarter ended March 31, 2008 compared to a $4,000 recovery in the quarter ended March 31, 2007. Our allowance for loan losses as a percentage of gross loans
was 1.93% as of March 31, 2008, which represents a decrease of 0.46% from March 31, 2007. This reduction in the allowance for loan loss ratio was due to recoveries of amounts within the allowance for loan losses established following
Hurricane Katrina. As the affected loans are repaid, the Bank records a recovery of the loan loss provision.

Non-interest Income.
Our non-interest income was $111,000 for the quarter ended March 31, 2008 compared to $108,000 for the quarter ended March 31, 2007.

Non-interest Expense. Non-interest expense amounted to $1.6 million for the quarter ended March 31, 2008 compared to $1.2 million for the quarter ended March 31, 2007, an increase of $394,000 or 33.5%. Salaries and employee
benefit costs increased by $174,000 during the 2008 period, as compared to the same 2007 period. This increase was due to overall higher levels of salaries and the implementation of our equity-based compensation plans that were approved by our
shareholders in February 2008. Other non-interest expenses increased by $215,000 during the first quarter of 2008 compared to the first quarter of 2007. Included in this increase were $119,000 for the Louisiana bank shares tax, and $23,000 for the
Louisiana corporate franchise tax that were not applicable prior to our mutual-to-stock conversion and initial public offering. The remaining increase in other non-interest expense was due to increased advertising expenditures and higher levels of
professional fees due to our status as a publicly traded company in the 2008 period.

Income Tax Expense.Income tax expense for the
first quarter of 2008 was $306,000, an increase of $147,000 from the first quarter of 2007. This increase in income tax expense was due to an increase in pre-tax income of $426,000 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, 2008, our cash and cash equivalents amounted to $11.1 million. In addition, at such date our available for sale investment and mortgage-backed
securities amounted to an aggregate of $69.7 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, 2008, we had certificates of deposit maturing within the next 12 months amounting to $68.9 million.
Based upon historical experience, we



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anticipate that a significant portion of the maturing certificates of deposit will be redeposited with us. At March 31, 2008, we had $48.3 million in
total borrowings, including $28.3 million in FHLB advances and $20.0 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. Our borrowings consist primarily of advances from the Federal Home Loan Bank of Dallas, of which we are a member. Under terms of the collateral agreement with the Federal Home Loan Bank, we
pledge residential mortgage loans and mortgage-backed securities as well as our stock in the Federal Home Loan Bank as collateral for such advances. At March 31, 2008, the Bank had $138.7 million in funds available through the Federal Home Loan
Bank.

The following table summarizes our contractual cash obligations at March 31, 2008.



|                              |  |                |         |                        |   |                  |  |                  |        |              |   |        |  |   |    
|----------------------------- |  | -------------- | ------- | ---------------------- | - | ---------------- |  | ---------------- | ------ | ------------ | - | ------ |  | - | ---
|                              |  |                |         | Payments Due By Period
|                              |  | Total          |         | To1 Year               |   | Over 1 to 3Years |  | Over 3 to 5Years |        | After 5Years
|                              |  | (In Thousands)
|Certificates of deposit       |  | $              | 97,466  |                        | $ | 68,930           |  | $                | 17,272 |              | $ | 11,264 |  | $ |   
|                              |  |                |         |                        |  
|Borrowings                    |  |                | 48,268  |                        |   | 15,872           |  |                  | 6,704  |              |   | 25,306 |  |   | 386
|                              |  |                |         |                        |   |                  |  |                  |        |              |   |        |  |   |    
|Total long-term debt          |  |                | 145,734 |                        |   | 84,802           |  |                  | 23,976 |              |   | 36,570 |  |   | 386
|Operating lease obligations   |  |                | 282     |                        |   | 57               |  |                  | 69     |              |   | 62     |  |   | 94 
|                              |  |                |         |                        |   |                  |  |                  |        |              |   |        |  |   |    
|Total contractual obligations |  | $              | 146,016 |                        | $ | 84,859           |  | $                | 24,045 |              | $ | 36,632 |  | $ | 480
|                              |  |                |         |                        |   |                  |  |                  |        |              |   |        |  |   |    

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 its 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
Bank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 in the Companys Form 10-K for the year ended December 31, 2007.

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(f) or 15(d)-15(f)
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.



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PART II - OTHER INFORMATION

Item 1 - Legal Proceedings.

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

Item 1A - Risk Factors.

See Risk Factors at pages 29-32 in the Companys Annual Report on
Form 10-K for the year ended December 31, 2007 (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 solely of purchases to fund the 2007 Recognition and Retention Plan and Trust, which is an affiliate of the Company, and are set forth in the following table.



|                               |  |                               |  |                             |       |                                                                              |        |                                                                              |        
|------------------------------ |  | ----------------------------- |  | --------------------------- | ----- | ---------------------------------------------------------------------------- | ------ | ---------------------------------------------------------------------------- | -------
|Period                         |  | TotalNumber ofSharesPurchased |  | Average PricePaid per Share |       | Total Number ofShares Purchasedas Part of PubliclyAnnounced Plansor
Programs |        | Maximum Numberof Shares that MayYet be PurchasedUnder the Plan orPrograms(1)
|January 1 - January 31, 2008   |  |                              |  |                             |      |                                                                              |       |                                                                              |       
|February 1 - February 29, 2008 |  |                              |  |                             |      |                                                                              |       |                                                                              | 253,829
|March 1 - March 31, 2008       |  | 22,002                        |  | $                           | 11.34 |                                                                              | 22,002 |                                                                              | 231,827
|                               |  |                               |  |                             |       |                                                                              |        |                                                                              |        
|Total                          |  | 22,002                        |  |                             |       |                                                                              | 22,002 |                                                                              |        
|                               |  |                               |  |                             |       |                                                                              |        |                                                                              |        



|(1) | On February 14, 2008, shareholders of the Company voted to approve the 2007 Recognition and Retention Plan and Trust Agreement (2007 RRP), which is authorized to
purchase of up to 253,829 shares of the Companys common stock. Purchases to fund the 2007 RRP are expected to continue until the plan is fully funded.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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.

On February 14, 2008, the shareholders
of Louisiana Bancorp, Inc. approved the Companys 2007 Recognition and Retention Plan and 2007 Stock Option Plan at a Special Meeting of shareholders.

The following is a brief summary of the results of the votes taken on each proposal considered at the special meeting.



|                                                                        |  |           |  |         |  |         |  |                 
|----------------------------------------------------------------------- |  | --------- |  | ------- |  | ------- |  | ----------------
|                                                                        |  | For       |  | Against |  | Abstain |  | Broker Non-Votes
|1. To adopt the 2007 Stock Option Plan                                  |  | 3,603,637 |  | 371,078 |  | 8,177   |  |                
|2. To adopt the 2007 Recognition and Retention Plan and Trust Agreement |  | 3,523,562 |  | 464,653 |  | 14,677  |  |                

Item 5 - Other Information.

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



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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 13, 2008 |  | By:                     |  | /s/ Lawrence J. LeBon, III           
|                   |  |                         |  | Lawrence J. LeBon, III               
|                   |  |                         |  | President and Chief Executive Officer



25