UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

                  For the quarterly period ended June 30, 2007

                                       OR

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

           For the transition period from ___________ to ____________


                              LAPORTE BANCORP, INC.
             (Exact name of Registrant as Specified in Its Charter)

          Federal                      333-143526             To be applied for
(State or Other Jurisdiction     (Commission File Number)        (I.R.S.
of Incorporation or Organization)                               Employer
                                                         Identification Number)

                               710 Indiana Avenue
                               La Porte, IN 46350
                                 (219) 362-7511
   (Address, Including Zip Code, and Telephone Number, Including Area Code, of
                   Registrant's Principal Executive Officers)

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. YES { } NO {X}

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated  filer, or a  non-accelerated  filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act.

Large accelerated filer { }   Accelerated filer { }   Non-accelerated filer {X}

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). YES { } NO {X}

Number of shares of common stock outstanding at June 30, 2007: 0

                                       1
<PAGE>



                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                       Page
                                                                                                      Number
                                                                                                      ------
                         PART I - FINANCIAL INFORMATION

<S>                                                                                                    <C>
Item 1.  Consolidated Financial Statements - The LaPorte Savings Bank

                  Consolidated Balance Sheets,
                           June 30, 2007 (Unaudited) and December 31, 2006                               3

                  Consolidated Statements of Income,
                           Three Months Ended June 30, 2007 and 2006 (Unaudited)
                          Six Months Ended June 30, 2007 and 2006 (Unaudited)                            4

                  Consolidated Statement of Changes in Equity
                           Six Months Ended June 30, 2007 and 2006 (Unaudited)                           5

                  Consolidated Statements of Cash Flows,
                           Six Months Ended June 30, 2007 and 2006 (Unaudited)                           6

                  Notes to Consolidated Financial Statements (Unaudited)                                 7


Item 2.  Management's Discussion and Analysis of Financial Condition
                  and Results of Operations                                                              10

Item 3.  Quantitative and Qualitative Disclosures About Market Risk                                      19

Item 4.  Controls and Procedures                                                                         19

                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings                                                                               20

Item 1A.  Risk Factors                                                                                   20

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                                     20

Item 3.  Defaults Upon Senior Securities                                                                 20

Item 4.  Submission of Matters to a Vote of Security Holders                                             20

Item 5.  Other Information                                                                               20

Item 6.  Exhibits                                                                                        20

Signatures                                                                                               21
</TABLE>

                                       2
<PAGE>
PART I - FINANCIAL INFORMATION

ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS

                            THE LAPORTE SAVINGS BANK
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                       June 30,                        December 31,
                                                                         2007                              2006
                                                                         ----                              ----
                                                                      (Unaudited)
<S>                                                             <C>                                 <C>
ASSETS
Cash and due from financial institutions                        $          6,988,307                $       7,864,029
Federal funds sold                                                         3,400,000                       13,183,000
                                                                --------------------                -----------------
     Cash and cash equivalents                                            10,388,307                       21,047,029
Securities available for sale                                             87,975,067                       88,537,866
Federal Home Loan Bank (FHLB) stock, at cost
     (restricted)                                                          2,660,700                        2,660,700
Loans held for sale                                                          238,525                                -
Loans, net of allowance for loan losses of
     $1,012,950 at June 30, 2007 (unaudited),
     $1,040,805 at December 31, 2006                                     136,913,752                      136,076,604
Mortgage servicing rights                                                    410,367                          418,314
Other real estate owned                                                      452,622                          452,622
Premises and equipment, net                                                8,010,994                        8,200,366
Cash surrender value of life insurance                                     6,168,628                        6,048,319
Accrued interest receivable and other assets                               4,303,947                        3,030,489
                                                                --------------------                -----------------

         Total assets                                           $        257,522,909                $     266,472,309
                                                                ====================                =================

LIABILITIES AND EQUITY
Deposits
     Non-interest bearing                                       $         26,393,877                $      47,809,055
     Interest bearing                                                    162,074,546                      154,049,522
                                                                --------------------                -----------------
         Total deposits                                                  188,468,423                      201,858,577
Federal Home Loan Bank advances                                           40,500,000                       36,500,000
Accrued interest payable and other liabilities                             2,359,859                        1,727,175
                                                                --------------------                -----------------
     Total liabilities                                                   231,328,282                      240,085,752

Equity
     Surplus                                                                 770,000                          770,000
     Retained earnings                                                    26,759,231                       25,846,171
     Accumulated other comprehensive loss
       net of tax of $(687,523) at June 30,
         2007 (unaudited), $(118,286) at
      December 31, 2006                                                   (1,334,604)                        (229,614)
                                                                --------------------                -----------------
         Total equity                                                     26,194,627                       26,386,557
                                                                --------------------                -----------------

         Total liabilities and equity                           $        257,522,909                $     266,472,309
                                                                ====================                =================

     See accompanying notes to consolidated financial statements (unaudited)
</TABLE>

                                       3
<PAGE>
ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS - continued

                            THE LAPORTE SAVINGS BANK
                  CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>

                                                       Three Months Ended                        Six Months Ended
                                                              June 30,                               June 30,
                                                        2007            2006                   2007            2006
                                                        ----            ----                   ----            ----
<S>                                              <C>              <C>                   <C>               <C>
     Interest and dividend income
     Loans, including fees                       $   2,388,838    $    2,329,861        $   4,744,855     $   4,588,362
     Taxable securities                                916,430           822,510            1,804,350         1,624,749
     Tax exempt securities                             104,875           118,379              209,362           241,322
     FHLB stock                                         29,523            34,191               63,310            67,395
     Other interest income                              55,148            32,759               84,513            63,641
                                                 -------------    --------------        -------------     -------------
         Total interest and dividend income          3,494,814         3,337,700            6,906,390         6,585,469

   Interest expense
     Deposits                                        1,323,943         1,058,164            2,622,549         2,036,921
     Federal Home Loan Bank advances                   558,753           577,504            1,071,534         1,145,029
     Federal funds purchased                             1,487             3,522               10,768             6,000
                                                 -------------    --------------        -------------     -------------
         Total interest expense                      1,884,183         1,639,190            3,704,851         3,187,950
                                                 -------------    --------------        -------------     -------------

   Net interest income                               1,610,631         1,698,510            3,201,539         3,397,519

   Provision for loan losses                             3,000             6,000                6,000            62,000
                                                 -------------    --------------        -------------     -------------

   Net interest income after
              provision for loan losses              1,607,631         1,692,510            3,195,539         3,335,519

   Noninterest income
     Service charges on deposits                       186,551           187,946              354,635           348,124
     ATM and debit card fees                            52,822            46,884               99,345            89,935
     Brokerage fees                                     56,682            48,724              107,018            75,537
     Trust fees                                         38,304            31,443               87,597            58,302
     Earnings on life insurance, net                    61,398            54,000              120,309           109,305
     Net gains on sales of loans                        42,080            70,759               95,334           112,948
     Loan servicing fees, net                           20,550            25,981               51,119            51,685
     Net gains (losses) on securities                   (1,205)          (22,548)             891,534           (22,548)
     Other income                                       49,320            45,033               95,123            88,865
                                                 -------------        ----------        -------------       -----------
         Total noninterest income                      506,502           488,222            1,902,014           912,153

   Noninterest expense
     Salaries and employee benefits                  1,112,507         1,067,540            2,271,506         2,145,150
     Occupancy and equipment                           342,731           339,559              668,471           710,219
     Data processing                                   126,174            65,710              218,417           132,055
     Advertising                                        28,321            25,338               48,875            44,318
     Bank examination fees                             103,541            56,540              163,128           104,279
     Other expenses                                    227,758           223,268              474,442           432,257
                                                 -------------    --------------        -------------     -------------
         Total noninterest expense                   1,941,032         1,777,955            3,844,839         3,568,278
                                                 -------------    --------------        -------------     -------------

   Income before income taxes                          173,101           402,777            1,252,714           679,394

   Income tax expense (benefit)                         (6,937)           77,947              339,654           113,540
                                                 -------------    --------------        -------------     -------------

   Net income                                    $     180,038    $      324,830        $     913,060     $     565,854
                                                 =============    ==============        =============     =============

   Earnings per share                                      N/A               N/A                  N/A              N/A

     See accompanying notes to consolidated financial statements (unaudited)
</TABLE>
                                       4
<PAGE>
 ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS - continued

                            THE LAPORTE SAVINGS BANK
            CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited)

<TABLE>
<CAPTION>

                                                                                                       Accumulated Other
                                                                                                        Comprehensive
                                                                                        Retained        Income (Loss),
                                                                        Surplus         Earnings          Net of Tax       Total
                                                                        -------         --------          ----------       -----
<S>                                                                  <C>             <C>               <C>             <C>
Balances - January 1, 2006                                           $   770,000     $  24,729,125     $   (956,806)   $  4,542,319

Comprehensive income (loss):
  Net income                                                                   -           565,854                -         565,854
  Other comprehensive income (loss):
     Net change in unrealized gain (loss) on securities
     available for sale, net of reclassification adjustments
     and tax effects                                                           -                 -         (552,891)       (552,891)
                                                                   -------------     -------------     ------------   -------------
         Total comprehensive income                                                                                          12,963
                                                                                                                      -------------

Balances - June 30, 2006                                           $     770,000     $  25,294,979     $  (1,509,697)  $ 24,555,282
                                                                   =============     =============     =============   ============


Balances - January 1, 2007                                         $     770,000     $  25,846,171     $    (229,614)  $ 26,386,557

Comprehensive income (loss):
  Net income                                                                   -           913,060                          913,060
  Other comprehensive income (loss):
     Net change in unrealized gain (loss) on securities available
     or sale, net of reclassification adjustments and tax effects              -                 -        (1,104,990)    (1,104,990)
                                                                   -------------     -------------     -------------   ------------
         Total comprehensive income (loss)                                                                                 (191,930)
                                                                                                                       ------------

Balances - June 30, 2007                                           $     770,000     $  26,759,231     $  (1,334,604)  $ 26,194,627
                                                                   =============     =============     =============   ============
     See accompanying notes to consolidated financial statements (unaudited)
</TABLE>
                                       5
<PAGE>
ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS - continued

                            THE LAPORTE SAVINGS BANK
                CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
<TABLE>
<CAPTION>

                                                                                       Six Months Ended June 30,
                                                                                  2007                           2006
                                                                                  ----                           ----
<S>                                                                        <C>                            <C>
Cash flows from operating activities
     Net income                                                            $     913,060                  $     565,854
     Adjustments to reconcile net income to
       net cash from operating activities:
         Depreciation                                                            347,489                        356,127
         Provision for loan losses                                                 6,000                         62,000
         Net (gains) losses on securities                                       (891,534)                        22,548
         Net gains on sales of loans                                             (71,925)                       (75,470)
         Originations of loans held for sale                                  (5,452,961)                    (4,749,148)
         Proceeds from sales of loans held for sale                            5,286,361                      5,221,171
         Recognition of mortgage servicing rights                                (23,409)                       (37,478)
         Amortization of mortgage servicing rights                                31,356                         28,123
         Loss on sales of other real estate owned                                      -                         10,527
         Earnings on life insurance, net                                        (120,309)                      (109,305)
     Change in assets and liabilities:
         Accrued interest receivable and other assets                           (704,221)                       (43,431)
         Accrued interest payable and other liabilities                          632,684                        166,692
                                                                           -------------                  -------------
                  Net cash from operating activities                             (47,409)                     1,418,210

Cash flows from investing activities
     Net change in loans                                                        (843,148)                    (1,577,097)
     Proceeds from maturities, calls and principal
       repayments of securities available for sale                             9,590,023                      5,293,962
     Proceeds from sales of securities available for sale                      3,226,000                      1,655,467
     Purchases of securities available for sale                              (13,035,917)                    (4,765,613)
     Premises and equipment expenditures, net                                   (158,117)                      (478,142)
                                                                           --------------                 --------------
         Net cash from investing activities                                   (1,221,159)                       128,577

Cash flows from financing activities
     Net change in deposits                                                  (13,390,154)                     7,594,860
     Proceeds from FHLB advances                                               5,000,000                      4,830,000
     Repayment of FHLB advances                                               (1,000,000)                    (5,930,000)
                                                                           --------------                 --------------
              Net cash from financing activities                              (9,390,154)                     6,494,860
                                                                           --------------                 -------------

Net change in cash and cash equivalents                                      (10,658,722)                     8,041,647

Cash and cash equivalents at beginning of period                              21,047,029                      8,663,801
                                                                           -------------                  -------------

Cash and cash equivalents at end of period                                 $  10,388,307                  $  16,705,448
                                                                           =============                  =============

Supplemental disclosures and cash flow information: Cash paid during the period
     for:
         Interest paid                                                     $   3,658,848                  $   3,198,650
         Income taxes paid                                                       610,000                        180,000

     See accompanying notes to consolidated financial statements (unaudited)
</TABLE>
                                       6
<PAGE>
ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS - continued

                            THE LAPORTE SAVINGS BANK
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1 - BASIS OF PRESENTATION AND CONSOLIDATION

The unaudited  consolidated  financial  statements  included  herein include the
accounts  of The La  Porte  Savings  Bank  ("the  Bank")  and its  wholly  owned
subsidiary,  LPSB  Investments  LTD.,  Cayman  ("LPSB  Ltd.").  LPSB Ltd.  began
operations  in 2002 when the Bank  received  approval  from the Federal  Deposit
Insurance  Corporation to form the subsidiary in the Cayman  Islands.  LPSB Ltd.
manages a portion of the Bank's investment portfolio.  Intercompany transactions
and  balances  are  eliminated  in  consolidation.  The  unaudited  consolidated
financial  statements  included  herein  have been  prepared  by  management  in
accordance with accounting principles generally accepted in the United States of
America for interim financial statements and Article 10 of Regulation S-X of the
Securities and Exchange Commission. In the opinion of management,  the unaudited
consolidated  financial statements contain all material adjustments  (consisting
of normal  recurring  accruals) and  disclosures  which are necessary for a fair
presentation of the financial position and results of operations for the interim
periods presented herein.

Certain information and footnote  disclosures  normally included in consolidated
financial statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted pursuant
to  the  rules  and  regulations  of the  Securities  and  Exchange  Commission.
Accordingly,  the interim  consolidated  financial  statements  included  herein
should be read in conjunction with the audited consolidated financial statements
for the year ended  December  31,  2006  included  in the Form S-1  Registration
Statement of LaPorte Bancorp, Inc.

With operating  results being so closely related to and responsive to changes in
economic  conditions,  the results for the six-month period ending June 30, 2007
may not necessarily indicate the results to be expected for the full year ending
December 31, 2007.

NOTE 2 - EARNINGS PER SHARE

Basic  earnings  per common  share will be  determined  by dividing net earnings
available to common  shareholders  by the weighted  average  number of shares of
Common Stock outstanding for the period (-0- shares for the three and six months
ended  June 30,  2007 and  2006).  Diluted  earnings  per  common  share will be
determined  by dividing net earnings  available  to common  shareholders  by the
weighted  average number of shares of Common Stock  outstanding  for the period,
adjusted for the dilutive effect of Common Stock equivalents (-0- shares for the
three and six months ended June 30, 2007 and 2006).

NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS

Adoption of New Accounting Standards:
------------------------------------

In February  2006,  the  Financial  Accounting  Standards  Board  (FASB)  issued
Statement  No. 155,  Accounting  for  Certain  Hybrid  Financial  Instruments-an
amendment to FASB Statements No. 133 and 140. This Statement  permits fair value
re-measurement for any hybrid financial instruments, clarifies which instruments
are  subject to the  requirements  of  Statement  No.  133,  and  establishes  a
requirement  to evaluate  interests in  securitized  financial  assets and other
items.  The new standard is effective  for financial  assets  acquired or issued
after  the  beginning  of the  entity's  first  fiscal  year that  begins  after
September 15, 2006.  FASB Statement No. 155 was adopted  January 1, 2007 and did
not have a material effect on the Bank's consolidated financial statements.

                                       7
<PAGE>
ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS - continued

                            THE LAPORTE SAVINGS BANK
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS - continued

Effective  January 1, 2007, the Bank adopted FASB Statement No. 156,  Accounting
for Servicing of Financial  Assets-an  amendment of FASB Statement No. 140. SFAS
No.  156  requires   separately   recognized   servicing  assets  and  servicing
liabilities to be initially measured at fair value and permits the Bank to elect
to measure  servicing  assets and  servicing  liabilities  at fair value at each
reporting  date and report  changes in fair value in  earnings  in the period in
which the changes  occur,  or to continue to amortize the servicing  assets over
the loan  service  period  with  periodic  impairment  assessment.  The Bank has
elected to continue to amortize its servicing assets. As a result,  there was no
cumulative  effect  adjustment  upon the adoption of SFAS No. 156. The effect on
net income for the three and six months  ended June 30, 2007 of adopting the new
accounting  method was not significant and the Bank's  servicing  assets at June
30, 2007 and December 31, 2006 were not considered significant.

As of January 1, 2007, the Bank adopted FASB  Interpretation  No. 48, Accounting
for  Uncertainty in Income Taxes - an  interpretation  of FASB Statement No. 109
(FIN 48).  Under FIN 48 a tax position is  recognized as a benefit only if it is
"more  likely  than  not"  that the tax  position  would be  sustained  in a tax
examination,  with  a tax  examination  being  presumed  to  occur.  The  amount
recognized is the largest  amount of tax benefit that is greater than 50% likely
of being realized on examination.  For tax position not meeting the "more likely
than not" test, no tax benefit is recorded. The adoption of FIN 48 had no affect
on the Bank's consolidated financial statements.

The Bank is  subject  to U.S.  federal  income  tax as well as income tax of the
state of Indiana.  The Bank's subsidiary does not file a U.S. federal income tax
return;  however,  its income is taxed to the Bank on the Bank's  federal income
tax return.  The Bank's  subsidiary  is not subject to state  income tax and the
income of the  Bank's  subsidiary  is not taxed on the Bank's  state  income tax
return.  The Bank is no longer subject to examination by taxing  authorities for
years  before  2003.  The Bank did not have any  unrecognized  tax  benefits  at
January  1,  2007 or at June  30,  2007  and  does  not  expect  there to be any
significant unrecognized tax benefits during the next twelve months.

The Bank's policy is to recognize  interest and/or  penalties  related to income
tax matters in income tax expense. The Bank did not have any amounts accrued for
interest and/or penalties at January 1, 2007 or at June 30, 2007.

Effective  January 1, 2007, the Bank adopted the FASB Emerging Issues Task Force
Issue No. 06-5,  Accounting  for Purchases of Life  Insurance - Determining  the
Amount that Could Be Realized in  Accordance  with FASB  Technical  Bulletin No.
85-4  (Accounting for Purchases of Life  Insurance).  This issue requires that a
policyholder   consider   contractual  terms  of  a  life  insurance  policy  in
determining the amount that could be realized under the insurance  contract.  It
also requires that if the contract provides for a greater surrender value if all
individual  policies  in a group  are  surrendered  at the same  time,  that the
surrender  value be  determined  based on the  assumption  that policies will be
surrendered on an individual basis. Lastly, the issue discusses whether the cash
surrender  value should be discounted  when the  policyholder  is  contractually
limited in its  ability to  surrender a policy.  The  adoption of EIFT Issue No.
06-5  did not  have a  material  effect  on the  Bank's  consolidated  financial
statements.

Effect of Newly Issued but Not Yet Effective Accounting Standards:
-----------------------------------------------------------------

In September 2006, the FASB issued  Statement No. 157, Fair Value  Measurements.
This  Statement  defines fair value,  establishes a framework for measuring fair
value and expands  disclosures  about fair value  measurements.  This  Statement
establishes a fair value hierarchy  about the  assumptions  used to measure fair
value and clarifies  assumptions  about risk and the effect of a restriction  on
the sale or use of an  asset.  The  Statement  is  effective  for  fiscal  years
beginning after November 15, 2007. Management has not completed an evaluation of
the impact of the adoption of this Statement.

                                        8
<PAGE>
ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS - continued

                            THE LAPORTE SAVINGS BANK
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS - continued

In September 2006, the FASB Emerging Issues Task Force finalized Issue No. 06-4,
Accounting  for Deferred  Compensation  and  Postretirement  Benefit  Aspects of
Endorsement Split-Dollar Life Insurance Arrangements. This issue requires that a
liability  be  recorded  during the  service  period  when a  split-dollar  life
insurance agreement continues after participants' employment or retirement.  The
required accrued liability will be based on either the  post-employment  benefit
cost of the continuing  life insurance or based on the future death depending on
the contractual terms of the underlying  agreement.  This issue is effective for
fiscal years beginning  after December 15, 2007.  Management has determined that
the  adoption  of EITF  06-04  will not have a  material  effect  on the  Bank's
consolidated financial statements.

In February 2007,  the FASB issued  Statement No. 159, The Fair Value Option for
Financial  Assets and  Financial  Liabilities  (SFAS No.  159),  which  provides
companies with an option to report selected  financial assets and liabilities at
fair  value.  The  objective  of SFAS No. 159 is to reduce  both  complexity  in
accounting for financial  instruments  and the volatility in earnings  caused by
measuring related assets and liabilities  differently.  SFAS No. 159 establishes
presentation  and  disclosure  requirements  designed to facilitate  comparisons
between companies that choose different measurement attributes for similar types
of assets  and  liabilities  and to more  easily  understand  the  effect of the
company's  choice to use fair value on its earnings.  SFAS No. 159 also requires
entities to display the fair value of the selected assets and liabilities on the
face  of  the  balance  sheet.  SFAS  No.  159  does  not  eliminate  disclosure
requirements of other  accounting  standards,  including fair value  measurement
disclosures  in SFAS No. 157.  This  Statement  is  effective  for fiscal  years
beginning after November 15, 2007. Management has not completed an evaluation of
the impact of the adoption of this Statement.

NOTE 4 - MERGER AGREEMENT AND PLANNED MUTUAL HOLDING COMPANY  REORGANIZATION AND
STOCK OFFERING

On March 8, 2007, The LaPorte  Savings Bank entered into an agreement to acquire
City Savings  Financial  Corporation,  and its subsidiary City Savings Bank, for
$34.00 per share with 50% to be paid in stock.  City Savings Bank reported total
assets of  $136,335,000,  total  loans of  $107,585,000  and total  deposits  of
$89,987,000  as of December 31, 2006. To support this  acquisition,  The LaPorte
Savings Bank will form a mutual holding  company to be known as LaPorte  Savings
Bank, MHC which will own approximately 52-56% of a new subsidiary mid-tier stock
holding company to be known as LaPorte Bancorp, Inc. Approximately 44-48% of the
remaining  LaPorte  Bancorp,  Inc.  common  stock  will be issued to the  Bank's
members and to City Savings Financial Corporation's  shareholders as part of the
merger consideration, and to the public, if any remains.

All  direct  costs  related  to the stock  conversion  will be  capitalized  and
deducted from the proceeds of the stock offering.  The LaPorte Savings Bank will
apply the purchase  accounting method when determining  capitalized and expensed
costs related to the merger with City Savings Financial Corporation.  All direct
costs related to the acquisition will be capitalized and included as part of the
acquisition cost at the date of merger. As of June 30, 2007, The LaPorte Savings
Bank has incurred  approximately $701,000 of direct costs related to the merger.
All  indirect  costs  related to the  acquisition  will be  expensed as they are
incurred.  In the event the stock  conversion and merger is not  completed,  The
LaPorte Savings Bank will immediately expense all direct costs.

These  transactions are subject to the approval of the Bank's regulators and the
Bank's  depositors,  and the  merger is also  subject  to the  approval  of City
Savings Financial Corporation's shareholders.

                                       9
<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

                           FORWARD-LOOKING STATEMENTS

This document (including  information  incorporated by reference) contains,  and
future  oral and  written  statements  of the  Company  and its  management  may
contain,  forward-looking  statements,  as such term is defined  in the  Private
Securities  Litigation  Reform  Act of  1995,  with  respect  to  the  financial
condition,  results of operations,  plans,  objectives,  future  performance and
business of the  Company.  Forward-looking  statements,  which may be based upon
beliefs,  expectations  and  assumptions  of  the  Company's  management  and on
information currently available to management, are generally identifiable by the
use of  words  such as  "believe,"  "expect,"  "anticipate,"  "plan,"  "intend,"
"estimate,"   "may,"  "will,"  "would,"   "could,"  "should"  or  other  similar
expressions.   Additionally,   all  statements  in  this   document,   including
forward-looking  statements,  speak  only as of the date they are made,  and the
Company  undertakes  no  obligation  to  update  any  statement  in light of new
information or future events.

The Company's ability to predict results or the actual effect of future plans or
strategies is  inherently  uncertain.  The factors,  which could have a material
adverse  effect on the  operations  and future  prospects of the Company and its
subsidiaries  are  detailed  in the  "Risks  Related to the  Merger"  and "Risks
Related  to  this  Offering"  sections  in  LaPorte  Bancorp,  Inc.'s  Form  S-1
Registration  Statement.  In  addition  to these risk  factors,  there are other
factors that may impact any public company,  including ours,  which could have a
material  adverse effect on the  operations and future  prospects of the Company
and its subsidiaries.  These additional factors include, but are not limited to,
the following:

     >  the economic impact of past and any future  terrorist  attacks,  acts of
        war or threats thereof and the response of the United States to any such
        threats and attacks;
     >  changes in the interest rate environment that reduce interest margins or
        reduce the fair value of financial instruments;
     >  changes in prevailing  real estate values both nationally and within our
        current and future market area;
     >  increased competitive pressures among financial services companies;
     >  changes in consumer spending, borrowing and savings habits;
     >  legislative or regulatory changes that adversely affect business;
     >  The  LaPorte  Savings  Bank's  ability  to  integrate  successfully  the
        operations of City Savings Bank following the merger;
     >  adverse changes in the securities market;
     >  the costs, effects and outcomes of existing or future litigation;
     >  changes in accounting policies and practices, as may be adopted by state
        and federal  regulatory  agencies,  the Financial  Accounting  Standards
        Board,  the Securities and Exchange  Commission,  and the Public Company
        Accounting Oversight Board; and
     >  the  ability  of the  Company to manage  the risks  associated  with the
        foregoing factors as well as anticipated risk factors.

These risks and uncertainties should be considered in evaluating forward-looking
statements and undue reliance should not be placed on such statements.

LaPorte  Bancorp,  Inc.  will  not  be  created  until  the  completion  of  the
reorganization  described  in Note 4 to the  Consolidated  Financial  Statements
included  here  within.   Accordingly,   the  historical  financial  information
discussed  herein,  except as  specifically  indicated,  relates to The  LaPorte
Savings Bank.

                                       10
<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS - continued

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

     Total Assets: Total assets at June 30, 2007 were $257.5 million compared to
$266.5 million at December 31, 2006, a decrease of $8.9 million,  or 3.4%.  This
decrease of $8.9 million is primarily the result of a $10.7 million  decrease in
cash and cash  equivalents  offset by an increase in loans, net of allowance for
loan losses of $837,000.  Cash and cash equivalents  decreased $10.7 million, or
50.6%,  to $10.4  million at June 30, 2007 compared to $21.0 million at December
31, 2006. This decrease was due to the maturity of a temporary large public fund
noninterest  bearing  demand  deposit of $21.0  million  that was  withdrawn  in
January 2007, offset by an increase in interest bearing deposits of $8.0 million
from December 31, 2006 to June 30, 2007.

     Investment Securities: Securities available for sale decreased $563,000, or
0.6%,  to $88.0  million at June 30, 2007  compared to $88.5 million at December
31, 2006,  partially  due to the sale of a portion of our Fannie Mae and Freddie
Mac preferred stock investments.  In March of 2007, management made the decision
to sell $2.3 million of Fannie Mae and Freddie Mac preferred  stock.  All of the
Fannie Mae and Freddie Mac stock issues were written down at the end of 2004 due
to an other than temporary  impairment  classification.  A $1.5 million security
loss  before  taxes  was  realized  in 2004  due to this  other  than  temporary
impairment.  The market value on these  securities has  substantially  recovered
since that time and due to concern with the effect of sub-prime market issues on
Fannie Mae and Freddie Mac,  management  made the decision to sell a majority of
these  securities  in the first quarter of 2007 and realized a gain of $896,000.
These were floating rate issues and the potential for decreasing  interest rates
and its effect on the market value of these securities also had an impact on the
decision to sell. A majority of the proceeds from the sale of the Fannie Mae and
Freddie Mac preferred stock were reinvested in mortgage backed  securities.  The
sale may have a positive impact on the Bank's interest rate sensitivity position
in a potential declining interest rate environment.  However,  the sale of these
securities will have a negative impact on future net income due to foregoing the
higher yield on these securities.

     Net Loans: Net loans increased $837,000, or 0.6%, to $136.9 million at June
30, 2007 compared to $136.1  million at December 31, 2006.  This increase is due
to an increase in  commercial  real estate loans of $4.0 million,  or 11.2%,  to
$39.8  million at June 30, 2007  compared to $35.8 million at December 31, 2006.
One-to-four  family  residential  loans  decreased  $695,000,  or 1.1%, to $63.4
million at June 30, 2007 compared to $64.0  million at December 31, 2006.  Other
consumer and home equity loans,  including indirect automobile loans,  decreased
$2.3  million,  or 9.2%,  to $22.7  million at June 30,  2007  compared to $25.0
million at December 31, 2006 due to an  increasingly  competitive  market place.
Loans held for sale  increased  to  $239,000 at June 30, 2007 from no loans held
for sale at December 31,  2006.  Nonperforming  assets  increased  $635,000,  or
49.2%, to $1.9 million at June 30, 2007 compared to $1.3 million at December 31,
2006.  This increase was due to two commercial real estate  relationships  in La
Porte, Indiana being moved to a non-accrual status during the period.

     Deposits: Total deposits decreased $13.4 million, or 6.6%, to $188.5million
at June 30,  2007 from  $201.9  million at  December  31,  2006.  This  decrease
reflects a temporary  increase in noninterest  bearing  deposits at December 31,
2006 due to a $21.0 million  public fund  noninterest  bearing  deposit that was
withdrawn  in January  2007.  Offsetting  this  decrease was an increase in time
certificates of deposit and IRAs of $5.8 million,  or 6.2%, to $100.1 million at
June 30, 2007 compared to $94.3  million at December 31, 2006.  The increase was
primarily due to a promotional rate offered during 2007. We also had an increase
in interest bearing demand and money market deposits of $3.3 million,  or 16.2%,
to $23.7  million at June 30,  2007  compared to $20.4  million at December  31,
2006. The majority of this latter increase was due to an increase in the balance
of one commercial depositor, which is expected to be withdrawn within 30 days.

     Borrowed Funds: Federal Home Loan Bank of Indianapolis borrowings increased
$4.0 million,  or 11.0%,  to $40.5 million at June 30, 2007 as compared to $36.5
million at December 31, 2006 to help  replace the large public fund  noninterest
bearing deposit withdrawal discussed above.

                                       11
<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS - continued

     Total Equity: Total equity decreased $192,000, or 0.7%, to $26.2 million at
June 30, 2007  compared to $26.4  million at December  31, 2006.  This  decrease
reflected  net income of $913,000  offset by an increase  in  accumulated  other
comprehensive  loss, net of tax, of $1.1 million,  or 481.24%, to $(1.3) million
at June 30,  2007 from  $(230,000)  at  December  31,  2006.  This  increase  is
primarily due to the sale of Fannie Mae and Freddie Mac  preferred  stock during
the first  quarter of 2007,  which had a large  unrealized  gain at December 31,
2006, which previously had the effect of offsetting the unrealized losses in the
portfolio at that time.  Also  contributing  to this increase is the increase in
the net  unrealized  losses on  securities  available for sale from December 31,
2006 to June 30, 2007.

Comparison  of Operating  Results for Three Month Period Ended June 30, 2007 and
June 30, 2006

     Net Income:  Net income decreased  $145,000,  or 44.6%, to $180,000 for the
three months ended June 30, 2007 compared to $325,000 for the three months ended
June 30,  2006.  This  decrease  reflects a decrease in net  interest  income of
$88,000  in a flat yield  environment,  which  resulted  in a decline in our net
interest margin to 2.79% for the three months ended June 30, 2007 from 2.94% for
the three months ended June 30, 2006.  The primary  reasons for the decline were
higher interest rates paid on  certificates  of deposit  renewing since June 30,
2006, as well as the increase in the average  balance of certificates of deposit
for the three months ended June 30, 2007 compared to the three months ended June
30, 2006.  Average loan  balances  decreased for the three months ended June 30,
2007 compared to the three months ended June 30, 2006, which also had a negative
impact on net interest margin and net income.  Also contributing to the decrease
in net income is an increase in total noninterest expense of $163,000, partially
offset by an increase in noninterest  income of $18,000 and a decrease in income
tax expense of $85,000.

     Net Interest  Income:  Net interest income decreased  $88,000,  or 5.2%, to
$1.6 million for the three  months ended June 30, 2007  compared to $1.7 million
for the three months ended June 30, 2006.  The yield on interest  earning assets
increased  27 basis  points  offset by a 54 basis point  increase in the cost of
interest  bearing  liabilities for the three months ended June 30, 2007 compared
to the same prior year period,  resulting in the decline of net interest income.
We may  experience  additional  margin  compression in the future if the current
flat yield curve remains in place.

     Interest  and Dividend  Income:  Interest  and  dividend  income  increased
$157,000,  or 4.70%,  to $3.5  million for the three  months ended June 30, 2007
compared to $3.3  million for the three  months  ended June 30,  2006.  Interest
income from loans  increased  $59,000,  or 2.5%,  to $2.4  million for the three
months  ended June 30, 2007  compared to $2.3 million for the three months ended
June 30, 2006. Interest income on securities,  dividend income on FHLB stock and
other interest income together increased  $98,000,  or 9.7%, to $1.1 million for
the three  months  ended June 30, 2007  compared  to $1.0  million for the three
months ended June 30, 2006.

The  average  yield on net  loans  for the  three  months  ended  June 30,  2007
increased  40 basis  points to 6.97% for the three  months  ended June 30,  2007
compared to 6.57% for the three months ended June 30,  2006.  This  increase was
due  primarily  to a 25 basis point  increase in the prime  lending rate used in
pricing  commercial  loans,  as well as an increase in the yield on the indirect
automobile  portfolio  due  to a  change  in  pricing  structure.  The  indirect
automobile  portfolio  had a yield of 5.33% for the three  months ended June 30,
2007 compared to 4.86% for the three months ended June 30, 2006.  Offsetting the
increase  in the  yield on the loan  portfolio  was a  decrease  in the  average
balance of net loans of $4.9 million,  or 3.4%, to $137.0  million for the three
months ended June 30, 2007 compared to $141.9 million for the three months ended
June 30, 2006. This decrease was primarily due to a $4.6 million decrease in the
average balance of the indirect automobile  portfolio  attributed to the pricing
structure change mentioned above.

                                       12
<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS - continued

Interest income from taxable securities increased $94,000, or 11.4%, to $916,000
for the three  months  ended June 30, 2007 from  $823,000  for the three  months
ended June 30, 2006. The average yield on taxable securities  increased to 4.75%
for the three months ended June 30, 2007  compared to 4.56% for the three months
ended June 30,  2006.  The  average  balance of  taxable  investment  securities
increased  $4.9  million,  or 6.8%,  to $77.1 million for the three months ended
June 30, 2007  compared to $72.2  million  for the three  months  ended June 30,
2006.  The  increase  was funded  through the sale of $1.7  million of municipal
bonds during April 2006, in order to increase our taxable  securities as the tax
benefit of holding  municipal  securities  was not being  fully  utilized.  Also
funding the increase in taxable securities was a decrease in the average balance
of loans.

Interest  income from  federal  funds sold and other  interest-bearing  deposits
increased $22,000, or 68.3%, to $55,000 for the three months ended June 30, 2007
compared  to $33,000  for the three  months  ended June 30,  2006.  The  average
balance on federal funds sold and other interest-bearing deposits increased $1.6
million,  or 57.8%,  to $4.3  million for the three  months  ended June 30, 2007
compared to $2.7 million for the three  months ended June 30, 2006.  The average
yield on federal  funds sold and other  interest-bearing  deposits  increased 27
basis points to 5.08% for the three months ended June 30, 2007 compared to 4.81%
for the three months ended June 30, 2006.

     Interest Expense:  Interest expense increased  $245,000,  or 14.9%, to $1.9
million for the three  months  ended June 30, 2007  compared to $1.6 million for
the three months ended June 30, 2007.  The increase was the result of a 54 basis
point increase in the overall cost of interest-bearing  liabilities to 3.76% for
the three  months  ended June 30, 2007  compared  to 3.22% for the three  months
ended June 30, 2006.  This was due to the increase in market interest rates as a
result of an  increase  in market  interest  rates as a result of an increase in
general rates of interest and a highly  competitive  market for  certificates of
deposit in addition to an  increase in the average  balance of  interest-bearing
deposits

The average balance of total interest bearing deposits increased $2.7 million to
$159.5  million  for the three  months  ended June 30,  2007  compared to $156.7
million for the three months ended June 30,  2006.  Certificates  of deposit and
IRA average balances increased $7.1 million,  or 7.6%, to $100.3 million for the
three months ended June 30, 2007  compared to $93.2 million for the three months
ended June 30,  2006.  The  average  cost of  certificates  of deposit  and IRAs
increased  64 basis  points to 4.74% for the three  months  ended June 30,  2007
compared to 4.10% for the three months ended June 30, 2006.

We experienced a decrease in savings  deposits average balances of $5.1 million,
or 11.8%,  to $38.5 million for the three months ended June 30, 2007 compared to
$43.6  million for the three months ended June 30, 2006. A majority of the funds
from the savings deposits moved into other interest  bearing deposits  including
money market and certificates of deposit, resulting in a higher cost of funds.

In the second half of 2006,  management  elected to tier and  increase the rates
paid on NOW and money  market  accounts in order to compete  with other banks in
the  marketplace.  This  resulted in an increase in the average  cost of NOW and
money  market  deposits of 71 basis  points to 1.70% for the three  months ended
June 30, 2007 compared to 0.99% for the three months ended June 30, 2006.

                                       13
<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS - continued

     Provision for Loan Losses: The Bank recognizes a provision for loan losses,
which is charged to earnings,  at a level necessary to absorb known and inherent
losses  that are  both  probable  and  reasonably  estimable  at the date of the
financial statements.  In evaluating the level of the allowance for loan losses,
management  considers  historical  loss  experience,  the types of loans and the
amount of loans in the loan  portfolio,  adverse  situations that may affect the
borrower's  ability to repay, the estimated value of any underlying  collateral,
peer group information and prevailing  economic  conditions.  This evaluation is
inherently   subjective  as  it  requires  estimates  that  are  susceptible  to
significant  revision as more information  becomes available or as future events
occur. After an evaluation of these factors,  management  recognized a provision
for loan  losses of $3,000  for the  three  month  period  ended  June 30,  2007
compared to a $6,000  provision for the three months period ended June 30, 2006.
Net  charge-offs  for the same periods  were  $14,000 for 2007 and 2006.  We had
previously  reserved the majority of these charge-offs in the allowance for loan
losses at the end of the prior  year.  The  allowance  for loan  losses was $1.0
million,  or 0.74%,  of loans  outstanding  at June 30,  2007  compared  to $1.0
million, or 0.70%, of loans outstanding at June 30, 2006. The allowance for loan
losses to  nonperforming  loans decreased to 68.81% at June 30, 2007 compared to
106.15% at June 30, 2006. This decrease is the result of a commercial loan in La
Porte, Indiana in the amount of $532,000 that was moved to non-accrual status in
the second quarter of 2007 and is now included in nonperforming loans. This loan
has been and  continues to be reviewed  under FAS 114 for  impairment  and it is
management's  opinion  there is no expected  loss at June 30,  2007.  Management
anticipates  the loan to be fully  paid off in the third  quarter of 2007 due to
the pending sale of the underlying real estate collateral.

     Noninterest  Income:  Noninterest  income  increased  $18,000,  or 3.7%, to
$506,000 for the three  months  ended June 30, 2007 from  $488,000 for the three
months ended June 30, 2006.  The  increase was  primarily  due to an increase in
brokerage  and trust fees of $15,000  for the three  months  ended June 30, 2007
compared  to the  three  months  ended  June 30,  2006.  This is a result of the
continued  focus on sales and marketing  efforts in both the brokerage and trust
areas. Earnings on life insurance increased $7,000 during the three months ended
June 30,  2007  compared to the three  months  ended June 30,  2006,  due to the
increase in the yield on these policies.  We also had a decrease in the net loss
on  security  sales of $21,000  during  the three  months  ended  June 30,  2007
compared to the three months  ended June 30, 2006.  This was due to a loss taken
on the  sale of $1.7  million  of  municipal  securities  in April  2006.  These
increases in noninterest income were partially offset by a decrease in net gains
on sales of loans of  $29,000  during  the  three  months  ended  June 30,  2007
compared to the three months ended June 30, 2006. This decrease was attributable
to the  continued  slowdown in the real estate market and loan  originations  as
well as  management's  decision to retain a portion of  originated  loans in the
second quarter of 2007.

     Noninterest  Expense:  Noninterest expense increased $163,000,  or 9.2%, to
$1.9 million for the three  months ended June 30, 2007  compared to $1.8 million
for the three  months  ended  June 30,  2006.  Salaries  and  employee  benefits
increased $45,000,  or 4.2%, to $1.1 million for the three months ended June 30,
2007 and  2006  due to  increases  in  health  insurance  costs,  normal  salary
increases, as well as increases in the Supplemental Employee Retirement Plan and
Group Term Carve Out Plan expense. Data processing expense increased $60,000, or
92.0%,  for the three months ended June 30, 2007  compared to the same period in
the prior year  mainly due to $24,000 in  nonrecurring  costs  related to an ATM
processor conversion as well as $13,000 of nonrecurring  expenses in relation to
an upgrade of our  internet  banking  product.  The Bank also  subscribed  to an
internet based mortgage  application system in June of 2006, which accounted for
an increase of  approximately  $7,000 for the three  months  ended June 30, 2007
compared  to the same  period in the prior  year.  The other  increases  in data
processing expense are attributable to software  maintenance contract increases.
There was also an increase in bank examination fees of $47,000, or 83.1%, due to
increased  estimated  annual audit  expenses  given our pending  public  company
status.

     Income  Taxes:  Income tax expense  (benefit)  was  $(7,000)  for the three
months  ended June 30,  2007,  a decrease of $85,000 from the three months ended
June 30,  2006,  primarily  due to a decrease in income  before  income taxes of
$230,000.  The  effective  tax rate was a tax  benefit of (4.01%)  for the three
months  ended June 30, 2007  compared to 19.35% for the three  months ended June
30, 2006.  The  effective tax rate was lower in the current year period due to a
higher ratio of the total income before tax representing  tax exempt  securities
and life insurance income.  This resulted from the overall lower level of income
before income taxes in the current period.

                                       14
<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS - continued

Comparison  of  Operating  Results for Six Month  Period Ended June 30, 2007 and
June 30, 2006

     Net Income:  Net income increased  $347,000,  or 61.4%, to $913,000 for the
six months  ended June 30, 2007  compared to $566,000  for the six months  ended
June 30, 2006.  This  increase  reflects the increase in  noninterest  income of
$990,000,  or 108.5%,  to $1.9  million  for the six months  ended June 30, 2007
compared to $912,000 for the six months ended June 30, 2006, partially offset by
a decrease  in net  interest  income of  $196,000,  or 5.8%,  and an increase in
noninterest expense of $277,000,  or 7.8%, in addition to the increase in income
tax expense of $226,000 over the same period in the prior year. A sale of Fannie
Mae and Freddie Mac preferred  stock  resulted in a gain of $896,000  during the
first quarter of 2007,  which  represented  most of the increase in  noninterest
income. The flat yield curve and continued competitive pressure on deposit rates
contributed to a decrease in our net interest margin to 2.79% for the six months
ended  June 30,  2007 from 2.94% for the six months  ended  June 30,  2006.  The
primary  reasons for the decline were higher interest rates paid on certificates
of deposit  renewing in the six months  ending June 30, 2007 compared to the six
months  ended June 30, 2006,  as well as the increase in the average  balance of
certificates  of deposit for the six months ended June 30, 2007  compared to the
six months ended June 30, 2006. Average loan balances also decreased for the six
months ended June 30, 2007 compared to the six months ended June 30, 2006, which
had a negative impact on net interest margin and net income.

     Net Interest Income:  Net interest income decreased  $196,000,  or 5.8%, to
$3.2 million for the six months ended June 30, 2007 compared to $3.4 million for
the six months ended June 30, 2006.  As a result of the  flattening of the yield
curve,  the increase in our yield on interest  earning assets of 32 basis points
was  offset  by a 57  basis  point  increase  in the  cost of  interest  bearing
liabilities  for the six months  ended June 30, 2007  compared to the same prior
year period, resulting in the decline of net interest income.

     Interest  and Dividend  Income:  Interest  and  dividend  income  increased
$321,000,  or 4.9%,  to $6.9  million  for the six months  ended  June 30,  2007
compared to $6.6 million for the six months ended June 30, 2006. Interest income
from loans increased $156,000, or 3.4%, to $4.7 million for the six months ended
June 30, 2007  compared to $4.6  million for the six months ended June 30, 2006.
Interest  income on  securities,  dividend  income on Federal  Home Loan Bank of
Indianapolis  stock and other interest income together  increased  $164,000,  or
8.2%,  to $2.2 million for the six months  ended June 30, 2007  compared to $2.0
million for the six months ended June 30, 2006.

The average yield on net loans for the six months ended June 30, 2007  increased
44 basis  points to 6.93% for the six months  ended June 30,  2007  compared  to
6.49% for the six months ended June 30, 2006. This increase was due primarily to
a 25 basis point  increase in the prime lending rate used in pricing  commercial
loans, as well as an increase in the yield on the indirect automobile  portfolio
which had a yield of 5.18% for the six months  ended June 30,  2007  compared to
4.73% for the six months  ended June 30,  2006.  Offsetting  the increase in the
yield on the loan  portfolio was a decrease in the average  balance of net loans
of $4.4 million,  or 3.1%,  to $136.9  million for the six months ended June 30,
2007 compared to $141.3 million for the six months ended June 30, 2006.

Interest income from taxable securities  increased  $180,000,  or 11.1%, to $1.8
million  for the six months  ended June 30,  2007 from $1.6  million for the six
months ended June 30, 2006. The average yield on taxable securities increased to
4.67% for the six  months  ended  June 30,  2007  compared  to 4.47% for the six
months ended June 30, 2006. The average balance of taxable investment securities
increased $4.4 million,  or 6.0%, to $77.2 million for the six months ended June
30, 2007 compared to $72.8  million for the six months ended June 30, 2006.  The
increase was funded  through the decrease in the average  balance of  tax-exempt
securities  as a result of the sale of $1.7  million of  municipal  bonds during
April 2006, for the reasons discussed above.

                                       15
<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS - continued

Interest  income from  federal  funds sold and other  interest-bearing  deposits
increased  $21,000,  or 32.8%, to $85,000 for the six months ended June 30, 2007
compared to $64,000 for the six months ended June 30, 2006. The average  balance
on federal funds sold and other interest-bearing deposits increased $479,000, or
17.1%,  to $3.3 million for the six months ended June 30, 2007  compared to $2.8
million for the six months  ended June 30,  2006.  The average  yield on federal
funds sold and other  interest-bearing  deposits  increased  61 basis  points to
5.11% for the six  months  ended  June 30,  2007  compared  to 4.50% for the six
months ended June 30, 2006.

     Interest Expense:  Interest expense increased  $517,000,  or 16.2%, to $3.7
million for the six months ended June 30, 2007  compared to $3.2 million for the
six months ended June 30, 2007.  The increase was the result of a 57 basis point
increase in the overall cost of  interest-bearing  liabilities  to 3.70% for the
six months  ended June 30, 2007  compared to 3.13% for the six months ended June
30, 2006. This was due to the increase in market interest rates as a result of a
significant  increase  in  short  term  interest  rates  as  well  as  a  highly
competitive market for certificates of deposit in addition to an increase in the
average balance of interest bearing deposits.

The average balance of total interest bearing deposits increased $3.1 million to
$160.2 million for the six months ended June 30, 2007 compared to $157.1 million
for the six months ended June 30, 2006.  Certificates of deposit and IRA average
balances  increased  $5.6 million,  or 5.9%, to $99.8 million for the six months
ended June 30, 2007  compared to $94.2 million for the six months ended June 30,
2006. The average cost of  certificates  of deposits and IRAs increased 72 basis
points to 4.67% for the six months ended June 30, 2007 compared to 3.95% for the
six months ended June 30, 2006.

We experienced a decrease in savings  deposits average balances of $5.6 million,
or 12.7%,  to $38.6  million for the six months ended June 30, 2007  compared to
$44.2  million for the six months  ended June 30,  2006. A majority of the funds
from the savings deposits moved into other interest  bearing deposits  including
money market and certificates of deposit, resulting in a higher cost of funds.

In the second half of 2006,  management  elected to tier and  increase the rates
paid on NOW and money  market  accounts in order to compete  with other banks in
the  marketplace.  This  resulted in an increase in the average  cost of NOW and
money market deposits of 108 basis points to 1.81% for the six months ended June
30, 2007 compared to 0.73% for the six months ended June 30, 2006.

     Provision for Loan Losses: The Bank recognizes a provision for loan losses,
which is charged to earnings,  at a level necessary to absorb known and inherent
losses  that are  both  probable  and  reasonably  estimable  at the date of the
financial statements.  In evaluating the level of the allowance for loan losses,
management  considers  historical  loss  experience,  the types of loans and the
amount of loans in the loan  portfolio,  adverse  situations that may affect the
borrower's  ability to repay, the estimated value of any underlying  collateral,
peer group information and prevailing  economic  conditions.  This evaluation is
inherently   subjective  as  it  requires  estimates  that  are  susceptible  to
significant  revision as more information  becomes available or as future events
occur. After an evaluation of these factors,  management  recognized a provision
for loan losses of $6,000 for the six month period ended June 30, 2007  compared
to a $62,000  provision  for the six  month  period  ended  June 30,  2006.  Net
charge-offs  for the same  periods were $34,000 for 2007 as compared to $125,000
for 2006. We had  previously  reserved for the majority of these  charge-offs in
the  allowance  for loan losses at the end of the prior year.  The allowance for
loan losses was $1.0 million,  or 0.74%,  of loans  outstanding at June 30, 2007
compared to $1.0 million,  or 0.70%, of loans  outstanding at June 30, 2006. The
allowance for loan losses to nonperforming loans decreased to 68.81% at June 30,
2007 compared to 106.15% at June 30, 2006. This decrease is the result of a loan
in the amount of $532,000 that was moved to a  non-accrual  status in the second
quarter of 2007 and is now included in nonperforming  loans.  This loan has been
and continues to be reviewed under FAS 114 for impairment and it is management's
opinion there is no expected loss at June 30, 2007.  Management  anticipates the
loan to be fully paid off in the third  quarter of 2007 due to the pending  sale
of the underlying real estate collateral.

                                       16
<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS - continued

     Noninterest Income:  Noninterest income increased  $990,000,  or 108.5%, to
$1.9  million for the six months  ended June 30, 2007 from  $912,000 for the six
months ended June 30, 2006. The increase was primarily due to an increase in net
gains on  securities  of  $914,000  during the six months  ended June 30,  2007,
including $896,000 of gains in the first quarter of 2007 from the sale of Fannie
Mae and Freddie Mac preferred stock discussed  above.  Also  contributing to the
increase is an increase in brokerage  and trust fees of $61,000 in the first six
months ended June 30, 2007 compared to the first six months ended June 30, 2006.
This is a result of the continued  focus in sales and marketing  efforts in both
the  brokerage and trust areas.  Earnings on life  insurance  increased  $11,000
during the six months ended June 30, 2007  compared to the six months ended June
30, 2006, due to the increase in the yield on these policies. These increases in
noninterest  income were partially offset by a decrease in net gains on sales of
loans of $18,000  during the six months ended June 30, 2007  compared to the six
months ended June 30, 2006.  This  decrease was  attributable  to the  continued
slowdown in the real estate market and loan originations as well as management's
decision to retain a portion of originated loans in the second quarter of 2007.

     Noninterest  Expense:  Noninterest expense increased $277,000,  or 7.8%, to
$3.8 million for the six months ended June 30, 2007 compared to $3.6 million for
the six months ended June 30, 2006.  Salaries  and employee  benefits  increased
$126,000,  or 5.9%,  to $2.3  million  for the six months  ended  June 30,  2007
compared to $2.1 million for the six months ended June 30, 2006.  This  increase
was  attributable to normal salary and group  insurance  increases along with an
additional  position  added  during  the six months  ended June 30,  2007 in the
finance  area  due  to  the  pending   acquisition  of  City  Savings  Financial
Corporation and our becoming a public company.  We also  experienced an increase
in expense relating to supplemental employee retirement plans of $49,000 for the
six months  ended June 30, 2007 to  $151,000,  as compared to $102,000 for 2006,
which also  contributed  to the  increase  in  employee  benefits  expense.  The
increase  in expense  for these  plans was  primarily  due to an  adjustment  of
$18,000 to the supplemental  employee  retirement plan to record a liability for
payments  owed  under an  existing  plan and a  $13,000  adjustment  made to the
supplemental life insurance plan due to a change in retirement  assumptions made
in the six months ended June 30, 2007. Data processing expense increased $86,000
in the six months  ended June 30, 2007  compared to the same period in the prior
year mainly due to $24,000 in  nonrecurring  costs  related to an ATM  processor
conversion as well as approximately $13,000 of nonrecurring expenses in relation
to an upgrade of our internet  banking  product.  The Bank also subscribed to an
internet based mortgage  application system in June of 2006, which accounted for
an increase  of  approximately  $15,000  for the six months  ended June 30, 2007
compared  to the same  period in the prior  year.  The other  increases  in data
processing expense are attributable to software  maintenance contract increases.
There was also an increase in bank  examination fees of $59,000 due to increased
estimated annual audit expenses given our pending public company status.

     Income Taxes: Income tax expense was $340,000 for the six months ended June
30,  2007,  an  increase of $226,000  from the six months  ended June 30,  2006,
primarily  due to the tax effects of  $896,000 of gains in the first  quarter of
2007 from the sale of Fannie  Mae and  Freddie  Mac  preferred  stock  discussed
above. This contributed to an increase in income before income taxes of $573,000
from June 30, 2006 to 2007. The effective tax rate was 27.11% for the six months
ended June 30, 2007  compared to 16.71% for the six months  ended June 30, 2006.
The  effective tax rate was lower in the prior year period due to a higher ratio
of the total  income  before tax  representing  tax exempt  securities  and life
insurance  income in the prior period as a result of the overall  lower level of
income before income taxes in the prior period.

                                       17
<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS - continued

Liquidity and Capital Resources

Maintenance  of  adequate  liquidity  requires  that  sufficient   resources  be
available at all times to meet cash flow requirements of the Bank.  Liquidity in
a banking  institution is required primarily to provide for deposit  withdrawals
and  the  credit  needs  of  customers  and  to  take  advantage  of  investment
opportunities  as they arise.  A bank may achieve  desired  liquidity  from both
assets and  liabilities.  Cash and deposits  held in other banks,  Federal funds
sold, other short term investments and securities  available-for-sale,  maturing
loans  and  investments,  payments  of  principal  and  interest  on  loans  and
investments,  and potential loan sales are sources of asset  liquidity.  Deposit
growth and  access to credit  lines  established  with  correspondent  banks and
market sources of funds are sources of liability liquidity. The Bank reviews its
liquidity  position  on a regular  basis  based upon its  current  position  and
expected  trends of loans and deposits.  The policy of the Board of Directors is
to  maintain  sufficient  capital  at  not  less  than  the   "well-capitalized"
thresholds established by banking regulators.  Management believes that the Bank
maintains adequate sources of liquidity to meet its liquidity needs.

The Bank's liquid assets,  defined as cash and cash  equivalents,  federal funds
sold  and  deposits  with  banks  and  market  value  of  unpledged   securities
available-for-sale  totaled $88.5 million at June 30, 2007 and constituted 34.4%
of total  assets at that date  compared  to $99.7  million,  or 37.4%,  of total
assets from December 31, 2006.

Although  the Bank's  sources  of  liquidity  include  liquid  assets,  the Bank
maintains  lines of credit with the Federal  Home Loan Bank.  The total of these
lines of credit were $48.0  million at June 30, 2007,  of which $40.5 million in
Federal Home Loan Bank advances were outstanding. The Bank actively utilizes its
borrowing  capacity with the Federal Home Loan Bank to manage  liquidity as well
as a funding  alternative to time deposits if the Federal Home Loan Bank's rates
and terms are more  favorable.  The advances from the Federal Home Loan Bank can
have  maturities  from  overnight to multiple  years.  At June 30,  2007,  $11.0
million was due within one year and $29.5 million had maturities  greater than a
year.

Federal regulations establish guidelines for calculating "risk-adjusted" capital
ratios and  minimum  ratio  requirements.  Under  these  regulations,  banks are
required  to  maintain  a total  risk-based  capital  ratio  of 8.0%  and Tier 1
risk-based  capital  ratio  (primarily  total  equity) of at least 4.0% of total
qualifying capital.  The Bank had total and Tier 1 risk-based capital ratios of,
18.59%  and  17.93%  at June 30,  2007,  and was  "well-capitalized"  under  the
regulatory guidelines.

In addition,  regulators have adopted a minimum leverage ratio standard for Tier
1  risk-based   capital  to  total  assets.  The  minimum  ratio  for  top-rated
institutions may be as low as 3%. However,  regulatory agencies have stated that
most institutions should maintain ratios at least 1 to 2 percentage points above
the 3%  minimum.  As of June 30,  2007,  the Bank's  leverage  ratio was 10.81%.
Capital  levels for the Bank remain  above the  established  regulatory  capital
requirements.

Impact of Inflation

The primary impact of inflation on the Bank is its effect on interest rates. The
Bank's  primary  source of income is net interest  income,  which is affected by
changes in interest rates. The Bank attempts to limit the impact of inflation on
its  net  interest  margin  through  management  of  rate-sensitive  assets  and
liabilities and analyses of interest rate  sensitivity.  The effect of inflation
on  premises  and  equipment  as well as on  noninterest  expenses  has not been
significant for the periods presented.

                                       18
<PAGE>
ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Proper  management of interest  rate  sensitivity  and  maturities of assets and
liabilities  is  required  to protect  and  increase  our net  interest  margin.
Interest rate sensitivity  spread  management is an important tool for achieving
this objective and for developing ways in which to improve profitability.

The Bank constantly monitors earning asset and deposit levels,  developments and
trends  in  interest  rates,   liquidity,   capital   adequacy  and  marketplace
opportunities.  Management  responds  to all of these to  protect  and  possibly
enhance net interest income while managing risks within acceptable levels as set
forth in the  Bank's  policies.  In  addition,  alternative  business  plans and
transactions are contemplated for their potential impact.  This process is known
as asset/liability  management and is carried out by changing the maturities and
relative  proportions of the various types of loans,  investments,  deposits and
borrowings in the ways described above.

The tool most commonly used to manage and analyze the interest rate  sensitivity
of a bank is known as a computer  simulation  model.  To quantify  the extent of
risks in both the Bank's current  position and in  transactions it might make in
the future,  the Bank uses a model to simulate the impact of different  interest
rate scenarios on net interest income.  The hypothetical  impact of sudden shock
(generally,  an  immediate  change in  interest  rates of +/- 2.00%) and smaller
incremental  interest rate changes are modeled at least quarterly,  representing
the primary means the Bank uses for interest rate risk management decisions.

At June 30, 2007,  given a +2.00% or -2.00% shock in interest  rates,  the model
results in the Bank's net interest income for the next twelve months changing by
$(259,000), or (8.10)%, and $(93,000), or (2.9)%, respectively.

When preparing its modeling,  the Bank makes  significant  assumptions about the
lag in the rate of change in various asset and liability  castegories.  The Bank
bases its assumptions on past experience and comparisons  with other banks,  and
tests the validity of its assumptions by reviewing actual results with projected
expectations.


ITEM 4.  CONTROLS AND PROCEDURES

The Bank has adopted  interim  disclosure  controls and  procedures  designed to
facilitate financial reporting. The Bank's interim disclosure controls currently
consist of communications  among the Bank's Chief Executive Officer,  the Bank's
Chief Financial  Officer and each department head to identify any  transactions,
events,  trends, risks or contingencies which may be material to its operations.
These interim  disclosure  controls also contain certain  elements of the Bank's
internal   controls  adopted  in  connection  with  applicable   accounting  and
regulatory  guidelines.  In addition,  the Bank's Chief Executive Officer, Chief
Financial Officer,  Audit Committee and independent registered public accounting
firm also meet on a quarterly basis to discuss  disclosure  matters.  The Bank's
Chief  Executive   Officer  and  Chief  Financial  Officer  have  evaluated  the
effectiveness  of the  interim  disclosure  controls as of the end of the period
covered by this report and found them to be effective.

The Bank maintains  internal control over financial  reporting.  During the most
recent  fiscal  quarter,  the  Bank  added  the  position  of  Controller.   The
Controller's  key  responsibilities   include  the  preparation  of  the  Bank's
financial  statements  and  the  monthly  financial  board  reports.  Management
believes the addition of this position will  strengthen  internal  controls over
financial  reporting by adding  another  level of review to financial  statement
preparation.  There  have not been any other  significant  changes in the Bank's
internal  control  over  financial  reporting  in the  last  quarter  that  have
materially  affected,  or are reasonably  likely to materially affect the Bank's
internal control over financial reporting.

                                       19
<PAGE>
PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

     As of June 30, 2007,  there are no material  pending legal  proceedings  to
     which the  Company  or its  subsidiaries  is a party  other  than  ordinary
     routine litigation incidental to their respective businesses.

ITEM 1A. RISK FACTORS

     As of June 30,  2007,  there  have  been no  material  changes  to the risk
     factors  disclosed in the "Risks  Related to the Merger" and "Risks Related
     to this Offering"  sections  included in LaPorte  Bancorp,  Inc.'s Form S-1
     Registration Statement.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

     None

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

     None

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     None

ITEM 5.  OTHER INFORMATION

     None

ITEM 6.  EXHIBITS

     Exhibit Number                  Description
     --------------                  -----------

     31.01                           Certification   of   Principal    Executive
                                     Officer        pursuant       to       Rule
                                     13a-14(a)/15d-14(a)  as adopted pursuant to
                                     Section  302 of the  Sarbanes-Oxley  Act of
                                     2002

     31.02                           Certification   of   Principal    Financial
                                     Officer        pursuant       to       Rule
                                     13a-14(a)/15d-14(a)  as adopted pursuant to
                                     Section  302 of the  Sarbanes-Oxley  Act of
                                     2002

     32.01                           Certification   of   Principal    Executive
                                     Officer  and  Principal  Financial  Officer
                                     pursuant  to  18  U.S.C.  Section  1350  as
                                     adopted  pursuant  to  Section  906  of the
                                     Sarbanes-Oxley Act of 2002

                                       20

<PAGE>


                                   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.

                                           LaPorte Bancorp, Inc.
                                           (registrant in formation)



September 14, 2007                         /s/ Lee A. Brady
---------------------------                ----------------------------------
Date                                       Lee A. Brady,
                                           President and Chief Executive Officer






September 14, 2007                         /s/ Michele M. Thompson
---------------------------                ----------------------------------
Date                                       Michele M. Thompson,
                                           Vice President and Chief Financial
                                           Officer

                                       21