| ý | QUARTERLY      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|---------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION      REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE  ACT |
|--------|-----------------------------------------------------------------------|

|                                          United      States                                          |                     02-0783010                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (State      or other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (I.R.S.      Employer Identification No.)                                                                                                                                                                                                                  |

----

1

|                                     |     |                                                                                                                      |  Page      No. |        |
|------------------------------------------|----------|---------------------------------------------------------------------------------------------------------------------------|---------------------|--------|
|                                     |     |                                                                                                                      |                |   |   |
| PART I.  FINANCIAL INFORMATION |     |                                                                                                                      |                |
|                                     |     |                                                                                                                      |                |   |   |
|                                     | Item 1.  | Financial Statements                                                                                                      |                |   |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     |     | Consolidated Balance Sheets at March 31, 2008 and December 31,      2007 (Unaudited)                                      |                | 2      |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     |     | Consolidated Statements of Income for the three months ended      March 31, 2008 and 2007 (Unaudited)                     |                | 3      |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     |     | Consolidated Statements of Stockholders’ Equity for the three      months ended March 31, 2008 and 2007 (Unaudited) |                | 4      |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     |     | Consolidated Statements of Cash Flows for the three months      ended March 31, 2008 and 2007 (Unaudited)                 |                | 5      |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     |     | Notes to Unaudited Consolidated Financial      Statements                                                                 |                | 6      |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     | Item 2.  | Management’s Discussion and Analysis of Results of Operations      and Financial Condition                          |                | 10     |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     | Item 3.  | Quantitative and Qualitative Disclosures About Market      Risk                                                           |                | 18     |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     | Item 4.  | Controls and Procedures                                                                                                   |                | 18     |   |
|                                     |     |                                                                                                                      |                |   |   |
| PART II.  OTHER INFORMATION    |     |                                                                                                                      |                |
|                                     |     |                                                                                                                      |                |   |   |
|                                     | Item 1.  | Legal Proceedings                                                                                                         |                | 19     |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     | Item 1A. | Risk Factors                                                                                                              |                | 19     |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     | Item 2.  | Unregistered Sales of Equity Securities and Use of      Proceeds                                                          |                | 19     |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     | Item 3.  | Defaults upon Senior Securities                                                                                           |                | 19     |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     | Item 4.  | Submission of Matters to a Vote of Security      Holders                                                                  |                | 19     |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     | Item 5.  | Other Information                                                                                                         |                | 19     |   |
|                                     |     |                                                                                                                      |                |   |   |
|                                     | Item 6.  | Exhibits                                                                                                                  |                | 19     |   |
|                                     |     |                                                                                                                      |                |   |   |
| Signatures                               |     |                                                                                                                      |                |   |

----

Index

I

l

a

|   |   | March      31,                                     |   | December      31, |   |
|--------|--------|----------------------------------------------------|--------|-------------------|--------|
|   |   | 2008                                               |   | 2007              |   |
|   |   | (Dollars      in Thousands,Except      Share Data) |   |

| Cash      and due from banks                                                                                              |   | $      | 2,969   |   |   | $      | 3,642   |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|
| Interest      earning demand deposits with banks                                                                          |   |   | 351     |   |   |   | 371     |   |
| Cash      and cash equivalents                                                                                            |   |   | 3,320   |   |   |   | 4,013   |   |
|                                                                                                                      |   |   |    |   |   |   |    |   |
| Securities      available for sale                                                                                        |   |   | 1,015   |   |   |   | 1,003   |   |
| Securities      held to maturity (fair value at March 31, 2008 $1,722; and at      December 31, 2007 $1,776)         |   |   | 1,700   |   |   |   | 1,774   |   |
| Loans      held for sale                                                                                                  |   |   | 250     |   |   |   | 528     |   |
| Loans      receivable, net of allowance for loan losses (at March 31, 2008 $812;      and at December 31, 2007 $787) |   |   | 123,764 |   |   |   | 120,982 |   |
| Premises      and equipment, net                                                                                          |   |   | 2,754   |   |   |   | 2,797   |   |
| Federal      Home Loan Bank stock, at cost                                                                                |   |   | 193     |   |   |   | 142     |   |
| Accrued      interest receivable and other assets                                                                         |   |   | 1,582   |   |   |   | 1,451   |   |
|                                                                                                                      |   |   |    |   |   |   |    |   |
| Total      Assets                                                                                                         |   | $      | 134,578 |   |   | $      | 132,690 |   |

| Liabilities                                                                                                                                                       |   |   |    |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Deposits:                                                                                                                                                         |   |   |    |   |   |   |
| Non-interest    bearing                                                                                                                                           |   | $      | 17,178  |   |   | $      | 17,441 |   |
| Interest bearing                                                                                                                                                  |   |   | 96,192  |   |   |   | 94,620 |   |
| Total      Deposits                                                                                                                                               |   |   | 113,370 |   |   |   | 112,061 |   |
|                                                                                                                                                              |   |   |    |   |   |   |   |   |
| Federal      Home Loan Bank advances                                                                                                                              |   |   | 1,075   |   |   |   | - |   |
| Advances      from borrowers for taxes and insurance                                                                                                              |   |   | 425     |   |   |   | 535 |   |
| Accrued      interest payable                                                                                                                                     |   |   | 286     |   |   |   | 262 |   |
| Other      liabilities                                                                                                                                            |   |   | 767     |   |   |   | 1,352 |   |
| Total      Liabilities                                                                                                                                            |   |   | 115,923 |   |   |   | 114,210 |   |
|                                                                                                                                                              |   |   |    |   |   |   |   |   |
| Commitments      and Contingencies                                                                                                                                |   |   | -       |   |   |   | - |   |
|                                                                                                                                                              |   |   |    |   |   |   |   |   |
| Stockholders’      Equity                                                                                                                                   |   |   |    |   |   |   |   |   |
| Preferred      stock, $0.01 par value; 3,000,000 shares authorized and      unissued                                                                              |   |   | -       |   |   |   | - |   |
| Common      stock, $0.01 par value; 7,000,000 shares authorized; issued and      outstanding at March 31, 2008 and at December 31,2007 2,380,500      shares |   |   | 24      |   |   |   | 24 |   |
| Paid-in      capital                                                                                                                                              |   |   | 10,127  |   |   |   | 10,129 |   |
| Retained      earnings                                                                                                                                            |   |   | 9,379   |   |   |   | 9,222 |   |
| Unearned      ESOP shares, at cost                                                                                                                                |   |   | (874    | )      |   |   | (886 | ) |
| Accumulated      other comprehensive loss                                                                                                                         |   |   | (1      | )      |   |   | (9 | ) |
| Total      Stockholders’ Equity                                                                                                                             |   |   | 18,655  |   |   |   | 18,480 |   |
|                                                                                                                                                              |   |   |    |   |   |   |   |   |
| Total      Liabilities and Stockholders’ Equity                                                                                                             |   | $      | 134,578 |   |   | $      | 132,690 |   |

----

----

Index

m

|                                                     |                                                     | Three      Months Ended March 31, |   |
|----------------------------------------------------------|----------------------------------------------------------|-----------------------------------|--------|
|                                                     |                                                     | 2008                              |   |   | 2007 |   |
|                                                     |  (Dollars      in thousands, except per share data) |
| Interest      Income                                     |                                                     |                              |   |   |   |
| Loans      receivable, including fees                    |                                                     | $                                 | 2,132  |   |   | $ | 1,920 |   |
| Securities,      taxable                                 |                                                     |                              | 30     |   |   |   | 143 |   |
| Other                                                    |                                                     |                              | 20     |   |   |   | 30 |   |
| Total      Interest Income                               |                                                     |                              | 2,182  |   |   |   | 2,093 |   |
|                                                     |                                                     |                              |   |   |   |   |   |   |
| Interest      Expense                                    |                                                     |                              |   |   |   |   |   |   |
| Deposits                                                 |                                                     |                              | 731    |   |   |   | 710 |   |
| Federal      Home Loan Bank advances                     |                                                     |                              | 4      |   |   |   | 47 |   |
| Total      Interest Expense                              |                                                     |                              | 735    |   |   |   | 757 |   |
|                                                     |                                                     |                              |   |   |   |   |   |   |
| Net      Interest Income                                 |                                                     |                              | 1,447  |   |   |   | 1,336 |   |
|                                                     |                                                     |                              |   |   |   |   |   |   |
| Provision      for Loan Losses                           |                                                     |                              | 26     |   |   |   | 59 |   |
|                                                     |                                                     |                              |   |   |   |   |   |   |
| Net      Interest Income after Provision for Loan Losses |                                                     |                              | 1,421  |   |   |   | 1,277 |   |
|                                                     |                                                     |                              |   |   |   |   |   |   |
| Non-interest      Income                                 |                                                     |                              |   |   |   |   |   |   |
| Banking      fees and service charges                    |                                                     |                              | 257    |   |   |   | 268 |   |
| Mortgage      banking income, net                        |                                                     |                              | 93     |   |   |   | 127 |   |
| Investment      brokerage fees                           |                                                     |                              | 17     |   |   |   | 12 |   |
| Realized      losses on sales of securities              |                                                     |                              | -      |   |   |   | (2 | ) |
| Other                                                    |                                                     |                              | 16     |   |   |   | 22 |   |
| Total      Non-interest Income                           |                                                     |                              | 383    |   |   |   | 427 |   |
|                                                     |                                                     |                              |   |   |   |   |   |   |
| Non-interest      Expenses                               |                                                     |                              |   |   |   |   |   |   |
| Salaries      and employee benefits                      |                                                     |                              | 922    |   |   |   | 863 |   |
| Occupancy      and equipment                             |                                                     |                              | 180    |   |   |   | 155 |   |
| Professional      fees                                   |                                                     |                              | 63     |   |   |   | 28 |   |
| Advertising      and marketing                           |                                                     |                              | 56     |   |   |   | 60 |   |
| Data      processing                                     |                                                     |                              | 128    |   |   |   | 118 |   |
| Telephone      and postage                               |                                                     |                              | 40     |   |   |   | 46 |   |
| Other                                                    |                                                     |                              | 158    |   |   |   | 140 |   |
| Total      Non-interest Expenses                         |                                                     |                              | 1,547  |   |   |   | 1,410 |   |
|                                                     |                                                     |                              |   |   |   |   |   |   |
| Income      before Income Taxes                          |                                                     |                              | 257    |   |   |   | 294 |   |
|                                                     |                                                     |                              |   |   |   |   |   |   |
| Income      Tax Expense                                  |                                                     |                              | 100    |   |   |   | 114 |   |
|                                                     |                                                     |                              |   |   |   |   |   |   |
| Net      Income                                          |                                                     | $                                 | 157    |   |   | $ | 180 |   |

| Net      Income per common share- basic                                 |   | $      | 0.07  |   |   | $      | 0.14  |   |
|-------------------------------------------------------------------------|--------|--------|-------|--------|--------|--------|-------|--------|
| Weighted      average number of common shares outstanding – basic |   |   | 2,292 |   |   |   | 1,309 |   |

----

----

Index

c

|                                                                                                  |   | CommonStock |   |   | Paid-InCapital |   |   | RetainedEarnings |   |   | UnearnedESOPShares |   |   | AccumulatedOtherComprehensiveLoss |   |   | Total  |   |
|-------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|----------------|--------|--------|------------------|--------|--------|--------------------|--------|--------|-----------------------------------|--------|--------|--------|--------|
| Balance      - December 31, 2006                                                                      |   | $           | -      |   |           | $      | 150    |             |   | $      | 8,372              |   |   | $                                 | -      |   |   | $      | (2 | ) |   | $ | 8,520 |   |
|                                                                                                  |   |        |   |   |           |   |   |             |   |   |               |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      income:                                                                            |   |        |   |   |           |   |   |             |   |   |               |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                            |   |        | -      |   |           |   | -      |             |   |   | 180                |   |   |                              | -      |   |   |   | - |   |   |   | 180 |   |
| Change in net unrealized      losseson securities available      forsale, net of       taxes     |   |        | -      |   |           |   | -      |             |   |   | -                  |   |   |                              | -      |   |   |   | 1 |   |   |   | 1 |   |
|                                                                                                  |   |        |   |   |           |   |   |             |   |   |               |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| Total      Comprehensive Income                                                                       |   |        |   |   |           |   |   |             |   |   |               |   |   |                              |   |   |   |   |   |   |   |   | 181 |   |
|                                                                                                  |   |        |   |   |           |   |   |             |   |   |               |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| Balance      - March 31, 2007                                                                         |   | $           | -      |   |           | $      | 150    |             |   | $      | 8,552              |   |   | $                                 | -      |   |   | $      | (1 | ) |   | $ | 8,701 |   |
|                                                                                                  |   |
|                                                                                                  |   |        |   |   |           |   |   |             |   |   |               |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| Balance      - December 31, 2007                                                                      |   | $           | 24     |   |           | $      | 10,129 |             |   | $      | 9,222              |   |   | $                                 | (886   | )      |   | $      | (9 | ) |   | $ | 18,480 |   |
|                                                                                                  |   |        |   |   |           |   |   |             |   |   |               |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      income:                                                                            |   |        |   |   |           |   |   |             |   |   |               |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                            |   |        | -      |   |           |   | -      |             |   |   | 157                |   |   |                              | -      |   |   |   | - |   |   |   | 157 |   |
| Change in net unrealized gains on      securities available for sale,      net of  taxes    |   |        | -      |   |           |   | -      |             |   |   | -                  |   |   |                              | -      |   |   |   | 7 |   |   |   | 7 |   |
| Net      gains and past service liability for the Directors’ Retirement Plan, net      of taxes |   |        | -      |   |           |   | -      |             |   |   | -                  |   |   |                              | -      |   |   |   |     1 |   |   |   | 1 |   |
|                                                                                                  |   |        |   |   |           |   |   |             |   |   |               |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| Total      Comprehensive Income                                                                       |   |        |   |   |           |   |   |             |   |   |               |   |   |                              |   |   |   |   |   |   |   |   | 165 |   |
|                                                                                                  |   |        |   |   |           |   |   |             |   |   |               |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| ESOP      shares committed to be released (1,167 shares)                                              |   |        | -      |   |           |   | (2     | )                |   |   | -                  |   |   |                              | 12     |   |   |   | - |   |   |   | 10 |   |
|                                                                                                  |   |        |   |   |           |   |   |             |   |   |               |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| Balance      - March 31, 2008                                                                         |   | $           | 24     |   |           | $      | 10,127 |             |   | $      | 9,379              |   |   | $                                 | (874   | )      |   | $      | (1 | ) |   | $ | 18,655 |   |

----

----

Index

t

|                                                                                               |   | Three      Months Ended March 31, |   |
|----------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                                               |   | 2008                              |   |   | 2007 |   |
|                                                                                               |   | (In      Thousands)               |   |
| Cash      Flows from Operating Activities                                                          |   |                              |   |
| Net      income                                                                                    |   | $                                 | 157    |   |   | $ | 180 |   |
| Adjustments      to reconcile net income to net cash provided (used) by operating      activities: |   |                              |   |   |   |   |   |   |
| Depreciation and amortization      expense                                                         |   |                              | 60     |   |   |   | 53 |   |
| Provision for loan      losses                                                                     |   |                              | 26     |   |   |   | 59 |   |
| Amortization of mortgage      servicing rights                                                     |   |                              | 36     |   |   |   | 39 |   |
| Net amortization (accretion) of      securities premiums and discounts                             |   |                              | (1     | ) |   |   | (25 | ) |
| Net realized loss on sales of      securities                                                      |   |                              | -      |   |   |   | 2 |   |
| Net gain on sale of      loans                                                                     |   |                              | (34    | ) |   |   | (86 | ) |
| Loans originated for      sale                                                                     |   |                              | (3,405 | ) |   |   | (5,290 | ) |
| Proceeds from sale of      loans                                                                   |   |                              | 3,717  |   |   |   | 6,125 |   |
|      ESOP      expense                                                    |   |                              | 10     |   |   |   | - |   |
| Increase in accrued interest      receivable and other assets                                      |   |                              | (167   | ) |   |   | (164 | ) |
| Decrease in accrued interest      payable and other liabilities                                    |   |                              | (565   | ) |   |   | (104 | ) |
| Net      Cash Provided (Used) by Operating Activities                                              |   |                              | (166   | ) |   |   | 789 |   |

| Activity      in held to maturity securities:                |   |   |   |   |   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Purchases                                                    |   |   | -      |   |   |   | (9,000 | ) |
| Maturities, calls and principal      repayments              |   |   | 75     |   |   |   | 76 |   |
|      Proceeds      from sales       |   |   | -      |   |   |   | 8,997 |   |
| Net      increase in loans receivable                        |   |   | (2,808 | )      |   |   | (6,697 | ) |
| Net      decrease (increase) in Federal Home Loan Bank stock |   |   | (51    | )      |   |   | 114 |   |
| Purchases      of bank premises and equipment                |   |   | (17    | )      |   |   | (13 | ) |
| Net      Cash Used by Investing Activities                   |   |   | (2,801 | )      |   |   | (6,523 | ) |

| Net      increase in deposits                                    |   |   | 1,309  |   |   |   | 8,686  |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net      increase (decrease) in Federal Home Loan Bank advances  |   |   | 1,075  |   |   |   | (2,525 | )      |
| Decrease      in advances from borrowers for taxes and insurance |   |   | (110   | )      |   |   | (71    | )      |
|                                                             |   |   |   |   |   |   |   |   |
| Net      Cash Provided by Financing Activities                   |   |   | 2,274  |   |   |   | 6,090  |   |
|                                                             |   |   |   |   |   |   |   |   |
| Net      Increase (Decrease) in Cash and Cash Equivalents        |   |   | (693   | )      |   |   | 356    |   |
|                                                             |   |   |   |   |   |   |   |   |
| Cash      and Cash Equivalents - Beginning                       |   |   | 4,013  |   |   |   | 3,265  |   |

| Cash      and Cash Equivalents - Ending |   | $ | 3,320 |   |   | $ | 3,621 |   |
|-----------------------------------------|--------|---|-------|--------|--------|---|-------|--------|

| Interest      paid     |   | $      | 711    |   |   | $      | 641    |   |
|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                   |   |   |   |   |   |   |   |   |
| Income      taxes paid |   | $      | 219    |   |   | $      | -      |   |

----

Index

d

| Service      cost                       |   | $  11 |
|-----------------------------------------|--------|-----------------|
| Interest      cost                      |   | 1               |
| Amortization      of prior service cost |   | 1               |
| Net      periodic pension expense       |   | $  13 |

----

Index

|                                                                                                                                                       |   | 2008                |   |   | 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                                                                                                                                       |   | (In      Thousands) |   |
| Unrealized      holding gains on securities available for sale:                                                                                            |   |                |   |   |   |   |
|       Unrealized      holding gains arising during the period                                                                |   | $                   | 12     |   |   | $      | 2 |   |
|       Reclassification      adjustment for losses included in net income                                                     |   |                | -      |   |   |   | - |   |
|                                                                                                                                                       |   |                |   |   |   |   |   |   |
| Net      Unrealized Gains                                                                                                                                  |   |                | 12     |   |   |   | 2 |   |
|                                                                                                                                                       |   |                |   |   |   |   |   |   |
| Directors’      retirement plan:                                                                                                                     |   |                |   |   |   |   |   |   |
|        Reclassification      adjustment for pension gains and past service liability recognized in      pension expense |   |                | 1      |   |   |   | - |   |
|                                                                                                                                                       |   |                |   |   |   |   |   |   |
|          Net      Change in Director’s retirement plan                                                  |   |                | 1      |   |   |   | - |   |
|                                                                                                                                                       |   |                |   |   |   |   |   |   |
|          Other      comprehensive income before tax                                                           |   |                | 13     |   |   |   | 2 |   |
|                                                                                                                                                       |   |                |   |   |   |   |   |   |
|          Income      tax effect                                                                               |   |                | (5     | )      |   |   | (1 | ) |
|                                                                                                                                                       |   |                |   |   |   |   |   |   |
| Net      of Tax Amount                                                                                                                                     |   | $                   | 8      |   |   | $      | 1 |   |

|                                                                                                                        |   | 2008                |   |   | 2007   |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                                                                                                        |   | (In      Thousands) |   |
| Unrealized      gain (loss) on securities available for sale (net of tax effect 2008 $6;      2007 ($1))                    |   | $                   | 9      |   |   | $      | (1 | ) |
|                                                                                                                        |   |                |   |   |   |   |   |   |
| Net      gains and past service liability for Directors’ retirement plan (net of      tax effect 2008 ($6); 2007 $0 ) |   |                | (10    | )      |   |   | - |   |
|                                                                                                                        |   |                |   |   |   |   |   |   |
|                                                                                                                        |   | $                   | (1     | )      |   | $      | (1 | ) |

----

Index

|   | Level      1: | Unadjusted      quoted prices in active markets that are accessible at the measurement      date for identical, unrestricted assets or  liabilities. |
|--------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level      2: | Quoted      prices in markets that are not active, or inputs that are observable      either directly or indirectly, for substantially the full term of the      asset or liability. |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level      3: | Prices      or valuation techniques that require inputs that are both significant to      the fair value measurement and unobservable (i.e. supported with little or      no market activity). |
|--------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|    Description          |    March      31, 2008 | (Level      1)Quoted      Prices inActive      Markets forIdentical      Assets | (Level      2)Significant      OtherObservable      Inputs | (Level      3)SignificantUnobservableInputs  |
|----------------------------------------|---------------------------------------|---------------------------------------------------------------------------------|------------------------------------------------------------|----------------------------------------------|
|                                   |                                  | (In      thousands)                                                             |                                                       |                                         |
| Securities      availablefor      sale |  $  1,015              | $      -                                          |   $  1,015                             |  $      - |

----

Index

o

----

Index

----

Index

----

Index

| (Dollars      in thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | March      31,2008 |    |   | December      31,2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-----------------------|--------|
| Nonaccrual      loans:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |    |   |                  |   |
|    One-      to four-family residential real      estate                                                                                                                |   | $                  | 165     |   |                  | $      | 86 |   |
|    Construction                                                                                                                                                         |   |               | — |   |                  |   | — |   |
|    Multi-family      and commercial real      estate                                                                                                                    |   |               | — |   |                  |   | — |   |
|    Land                                                                                                                                                                 |   |               | — |   |                  |   | 16 |   |
|    Commercial                                                                                                                                                           |   |               | 50      |   |                  |   | — |   |
|    Consumer                                                                                                                                                             |   |               | 1       |   |                  |   | 22 |   |
|          Total                                                                                                                            |   |               | 216     |   |                  |   | 124 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |    |   |                  |   |   |   |
| Foreclosed      real      estate                                                                                                                                                       |   |               | — |   |                  |   | — |   |
| Other      nonperforming      assets                                                                                                                                                   |   |               | — |   |                  |   | — |   |
|          Total      nonperforming      assets                                                                                             |   |               | 216     |   |                  |   | 124 |   |
| Troubled      debt      restructurings                                                                                                                                                 |   |               | — |   |                  |   | — |   |
| Troubled      debt restructurings and   total      nonperforming      assets                                                                                            |   | $                  | 216     |   |                  | $      | 124 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |    |   |                  |   |   |   |
| Total      nonperforming loans to total      loans                                                                                                                                     |   |               | 0.17    | %      |                  |   | 0.10 | % |
| Total      nonperforming loans to total      assets                                                                                                                                    |   |               | 0.16    |   |                  |   | 0.09 |   |
| Total      nonperforming assets and troubled   debt      restructurings to total      assets                                                                            |   |               | 0.16    |   |                  |   | 0.09 |   |

----

Index

----

Index

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Three Months Ended      March 31, |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2008                              |    |   | 2007 |   |
| (Dollars      in thousands)                                                                                                                                                                                                                                                                                                                                                                                                  |   | AverageBalance                    |    |   | InterestandDividends |   |   | Yield/Cost |   |   | AverageBalance |   |   | InterestandDividends |   |   | Yield/Cost |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning      assets:                                                                                                                                                                                                                                                                                                                                                                                                |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans                                                                                                              |   | $                                 | 121,946 |   |   | $ | 2,132 |   |   |   | 6.99 | % |   | $ | 101,323 |   |   | $ | 1,920 |   |   |   | 7.58 | % |
|    Investment      securities                                                                                         |   |                              | 2,751   |   |   |   | 30 |   |   |   | 4.36 |   |   |   | 12,289 |   |   |   | 143 |   |   |   | 4.65 |   |
|    Other      interest-earning      assets                                                                            |   |                              | 1,854   |   |   | 20 |   |   |   | 4.31 |   |   |   | 2,733 |   |   | 30 |   |   |   | 4.39 |   |
|          Total      interest-earning assets                                                                                                                                                                                                                                                                                                                                |   |                              | 126,551 |   |   |   | 2,182 |   |   |   | 6.90 |   |   |   | 116,345 |   |   |   | 2,093 |   |   |   | 7.20 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning      assets                                                                                                     |   |                              | 5,968   |   |   |   |   |   |   |   |   |   |   |   | 4,649 |   |   |   |   |   |   |   |   |   |
|          Total      assets                                                              |   | $                                 | 132,519 |   |   |   |   |   |   |   |   |   |   | $ | 120,994 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and stockholders’ equity:                                                                                                                                                                                                                                                                                                                                                                             |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                                                                                                                                                                                                                                                                                                                                                           |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest-bearing      demand deposits                                                                                                                                                                                                                                                                                                                                                                      |   | $                                 | 5,979   |   |   |   | 4 |   |   |   | 0.27 |   |   | $ | 6,216 |   |   |   | 4 |   |   |   | 0.26 |   |
|    Money      market      accounts                                                                                    |   |                              | 10,935  |   |   |   | 55 |   |   |   | 2.01 |   |   |   | 15,099 |   |   |   | 95 |   |   |   | 2.52 |   |
|    Savings      accounts                                                                                              |   |                              | 13,701  |   |   |   | 21 |   |   |   | 0.61 |   |   |   | 13,408 |   |   |   | 16 |   |   |   | 0.48 |   |
|    Certificates      of      deposit                                                                                  |   |                              | 64,692  |   |   |   | 651 |   |   |   | 4.03 |   |   |   | 54,745 |   |   |   | 595 |   |   |   | 4.35 |   |
|    Borrowings                                                                                                         |   |                              | 568     |   |   | 4 |   |   |   | 2.82 |   |   |   | 3,442 |   |   | 47 |   |   |   | 5.46 |   |
|       Total      interest-bearing liabilities                                                                                                                                                                                                                                                                                                                                                  |   |                              | 95,875  |   |   |   | 735 |   |   |   | 3.07 |   |   |   | 92,910 |   |   |   | 757 |   |   |   | 3.26 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Non-interest-bearing      demand deposits                                                                                                                                                                                                                                                                                                                                                                  |   |                              | 16,123  |   |   |   |   |   |   |   |   |   |   |   | 17,453 |   |   |   |   |   |   |   |   |   |
|    Other      non-interest-bearing liabilities                                                                                                                                                                                                                                                                                                                                                           |   |                              | 1,878   |   |   |   |   |   |   |   |   |   |   |   | 1,966 |   |   |   |   |   |   |   |   |   |
|          Total      liabilities                                                         |   |                              | 113,876 |   |   |   |   |   |   |   |   |   |   |   | 112,329 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Stockholders’      equity                                                                                    |   |                              | 18,643  |   |   |   |   |   |   |   |   |   |   |   | 8,665 |   |   |   |   |   |   |   |   |   |
|       Total      liabilities and stockholders’ equity                                                                                                                                                                                                                                                                                                                                    |   | $                                 | 132,519 |   |   |   |   |   |   |   |   |   |   | $ | 120,994 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      interest      income                                                                                                                                                                                                                                                                                    |   |                              |    |   |   | $ | 1,447 |   |   |   |   |   |   |   |   |   |   | $ | 1,336 |   |   |   |   |   |
|    Interest      rate      spread                                                                                                                                                                                                                                                          |   |                              |    |   |   |   |   |   |   |   | 3.83 |   |   |   |   |   |   |   |   |   |   |   | 3.94 |   |
|    Net      interest      margin                                                                                                                                                                                                                                                                          |   |                              |    |   |   |   |   |   |   |   | 4.57 |   |   |   |   |   |   |   |   |   |   |   | 4.59 |   |
|    Average      interest-earning assets to      average      interest-bearing liabilities                                                                                                                                                                                                                                                                             |   |                              | 132.00  | % |   |   |   |   |   |   |   |   |   |   | 125.22 | % |   |   |   |   |   |   |   |   |

----

Index

----

Index

a

u

----

Index

O

d

F

d

n

e

o

t

|   | 3.1    | Charter      of Hometown Bancorp, Inc. (1)                                |
|--------|--------|---------------------------------------------------------------------------|
|   |   |                                                                      |
|   | 3.2    | Bylaws      of Hometown Bancorp, Inc. (1)                                 |
|   |   |                                                                      |
|   | 4.0    | Stock      Certificate of Hometown Bancorp, Inc. (1)                      |
|   |   |                                                                      |
|   | 31.1   | Rule      13a-14(a)/15d-14(a) Certification of Chief Executive    Officer |
|   |   |                                                                      |
|   | 31.2   | Rule      13a-14(a)/15d-14(a) Certification of Chief Financial    Officer |
|   |   |                                                                      |
|   | 32.0   | Section      1350 Certification                                           |

|   | _________________________________ |
|--------|-----------------------------------|

|   | (1) | Incorporated      by reference into this document from the Exhibits filed with the      Securities and Exchange Commission on the Registration Statement on Form      SB-2, and any amendments thereto, Registration No.    333-141351. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

T

|                     | HOMETOWN      BANCORP, INC.                       |
|--------------------------|---------------------------------------------------|
|                     |                                              |
|                     |                                              |
| Dated:      May 15, 2008 | By:      /s/ Thomas F.      Gibney                |
|                     | Thomas      F. Gibney                             |
|                     | President      and Chief Executive Officer        |
|                     | (principal      executive officer)                |
|                     |                                              |
|                     |                                              |
|                     |                                              |
| Dated:      May 15, 2008 | By:      /s/ Stephen W.      Dederick             |
|                     | Stephen      W. Dederick                          |
|                     | Vice      President and                           |
|                     | Chief      Financial Officer                      |
|                     | (principal      financial and accounting officer) |
|                     |                                              |