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| UNITED STATES                      |
|------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION |
| Washington, DC  20549    |
|                               |
| FORM 10-Q                          |
| (Mark One)                         |
| [X]                                | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                               |
| For the quarterly period ended:    |      September 30, 2010 |
| or                                 |
|                               |

| [   ]                | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------------------------------|------------------------------------------------------------------------------------------|
|                           |
| For the transition period from |                                                                                     |    to |   |
|                           |

| Commission file number: | 000-51117 |
|-------------------------|-----------|
|                    |

| HOME FEDERAL BANCORP, INC. OF LOUISIANA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (Exact name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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| Federal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 86-1127166 |
| (State or other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | (IRS Employer Identification No. |
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| 624 Market Street, Shreveport, Louisiana                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 71101 |
| (Address of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (Zip Code) |
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| (318) 222-1145                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (Registrant’s telephone number, including area code)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| (Former name, former address and former fiscal year, if changed since last report)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                                                                                                                                                                              [X]  Yes     [   ]  No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).                                                                                                  [   ]  Yes     [   ]  No                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check One):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Large accelerated filer            [   ]                                                                        Accelerated filer                             [   ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Non-accelerated filer              [   ]                                                                        Smaller reporting company           [X]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (Do not check if a smaller reporting company)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| [   ] Yes     [X]   No                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Shares of common stock, par value $.01 per share, outstanding as of November __, 2010: The registrant had 3,343,601 shares of common stock outstanding, of which 2,135,375 shares were held by Home Federal Mutual Holding Company of Louisiana, the registrant’s mutual holding company, and 1,208,226 shares were held by the public and directors, officers and employees of the registrant, and the registrant’s employee benefit plans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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| PART I                      | --                                                                                    | FINANCIAL INFORMATION | Page |
|-----------------------------|---------------------------------------------------------------------------------------|-----------------------|------|
|                        |
| Item 1:                     | Financial Statements (unaudited)                                                      |                  |
|                        |
|                        | Consolidated Statements of Financial Condition                                        | 1                     |
|                        |
|                        | Consolidated Statements of  Income                                               | 2                     |
|                        |
|                        | Consolidated Statements of Changes in Stockholders' Equity                            | 3                     |
|                        |
|                        | Consolidated Statements of Cash Flows                                                 | 4                     |
|                        |
|                        | Notes to Consolidated Financial Statements                                            | 6                     |
|                        |
| Item 2:                     | Management's Discussion and Analysis of Financial Condition and Results of Operations | 19                    |
|                        |
| Item 3:                     | Quantitative and Qualitative Disclosures About Market Risk                            | 23                    |
|                        |                                                                                  |                  |
| Item 4:                     | Controls and Procedures                                                               | 23                    |
|                        |                                                                                  |                  |
| PART II - OTHER INFORMATION |
|                        |
| Item 1:                     | Legal Proceedings                                                                     |  24              |
|                        |
| Item 1A:                    | Risk Factors                                                                          |  24              |
|                        |
| Item 2:                     | Unregistered Sales of Equity Securities and Use of Proceeds                           |  24              |
|                        |
| Item 3:                     | Defaults Upon Senior Securities                                                       |  25              |
|                        |
| Item 4:                     | Submission of Matters to a Vote of Security Holders                                   |  25              |
|                        |
| Item 5:                     | Other Information                                                                     |  25              |
|                        |
| Item 6:                     | Exhibits                                                                              |  25              |
|                        |
| SIGNATURES                  |

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| HOME FEDERAL BANCORP, INC. OF LOUISIANA                                                                                                                                                                                                                      |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                         |   |
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION                                                                                                                                                                                                               |   |
| (Unaudited)                                                                                                                                                                                                                                                  |   |
|                                                                                                                                                                                                                                                         |   | September 30,2010 |   |   | June 30,2010 |   |
|                                                                                                                                                                                                                                                         |
| ASSETS                                                                                                                                                                                                                                                       |   | (In Thousands) |   |
|                                                                                                                                                                                                                                                         |   |   |   |
| Cash and Cash Equivalents (Includes Interest-Bearing   Deposits with Other Banks of $5,165 and $4,698 for   September 30, 2010 and June 30, 2010, Respectively)                                                                |   | $ |  24,645 |   |   | $ |  8,837 |   |
| Securities Available-for-Sale                                                                                                                                                                                                                                |   |   | 55,512 |   |   |   | 63,688 |   |
| Securities Held-to-Maturity                                                                                                                                                                                                                                  |   |   | 1,833 |   |   |   | 2,138 |   |
| Loans Held-for-Sale                                                                                                                                                                                                                                          |   |   | 7,385 |   |   |   | 13,403 |   |
| Loans Receivable, Net                                                                                                                                                                                                                                        |   |   | 99,580 |   |   |   | 93,056 |   |
| Accrued Interest Receivable                                                                                                                                                                                                                                  |   |   | 529 |   |   |   | 560 |   |
| Premises and Equipment, Net                                                                                                                                                                                                                                  |   |   | 3,301 |   |   |   | 3,049 |   |
| Other Assets                                                                                                                                                                                                                                                 |   |   | 608 |   |   |   | 414 |   |
|                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Assets                                                                                                                                                                                                                                                 |   | $ | 193,393 |   |   | $ | 185,145 |   |
|                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                   |   |
|                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|    Deposits                                                                                                                                                                                                                                        |   |   | 128,888 |   |   |   | 117,722 |   |
| Advances from Borrowers for Taxes and Insurance                                                                                                                                                                                                              |   |   | 293 |   |   |   | 205 |   |
| Advances from Federal Home Loan Bank of Dallas                                                                                                                                                                                                               |   |   | 27,995 |   |   |   | 31,507 |   |
| Other Accrued Expenses and Liabilities                                                                                                                                                                                                                       |   |   | 1,703 |   |   |   | 1,425 |   |
| Deferred Tax Liability                                                                                                                                                                                                                                       |   |   | 755 |   |   |   | 921 |   |
|  Total Liabilities                                                                                                                                                                                                                                      |   |   | 159,634 |   |   |   | 151,780 |   |
|                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Preferred Stock – No Par Value; 2,000,000 Shares   Authorized; None Issued and Outstanding                                                                                                                                         |   |   | -- |   |   |   | -- |   |
| Common Stock – 8,000,000 Shares of $.01 Par Value   Authorized; 3,558,958 Shares Issued; 3,343,601 Shares   and 3,348,237 Shares Outstanding at September 30, 2010 and   June 30, 2010, Respectively |   |   |     14 |   |   |   |     14 |   |
| Additional Paid-in Capital                                                                                                                                                                                                                                   |   |   | 13,660 |   |   |   | 13,655 |   |
| Treasury Stock, at Cost – 215,357 Shares at September 30, 2010;   210,721 Shares at June 30, 2010                                                                                                                                       |   |   | (2,140 | ) |   |   | (2,094 | ) |
| Unearned ESOP Stock                                                                                                                                                                                                                                          |   |   | (812 | ) |   |   | (826 | ) |
| Unearned RRP Trust Stock                                                                                                                                                                                                                                     |   |   | (29 | ) |   |   | (145 | ) |
| Retained Earnings                                                                                                                                                                                                                                            |   |   | 21,239 |   |   |   | 20,665 |   |
| Accumulated Other Comprehensive Income                                                                                                                                                                                                                       |   |   | 1,827 |   |   |   | 2,096 |   |
|                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Stockholders’ Equity                                                                                                                                                                                                                             |   |   | 33,759 |   |   |   | 33,365 |   |
|                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                             |   | $ | 193,393 |   |   | $ | 185,145 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA |
|-----------------------------------------|
|                                    |
| CONSOLIDATED STATEMENTS OF INCOME       |
| (Unaudited                              |

|                                  |  For the Three Months Ended September 30,    |
|---------------------------------------|---------------------------------------------------|
|                                  |                                              |   | 2010  |   |   |   | 2009  |   |
| INTEREST INCOME                       |   (In Thousands, Except Per Share Data) |
|                                  |                                              |   |   |   |   |   |   |   |
| Loans, Including Fees                 |                                              | $ | 1,798 |   |   | $ | 1,039 |   |
| Investment Securities                 |                                              |   | 12 |   |   |   | 19 |   |
| Mortgage-Backed Securities            |                                              |   | 723 |   |   |   | 1,130 |   |
| Other Interest-Earning Assets         |                                              |   | 4 |   |   |   | 2 |   |
| Total Interest Income                 |                                              |   | 2,537 |   |   |   | 2,190 |   |
|                                  |                                              |   |   |   |   |   |   |   |
| INTEREST EXPENSE                      |                                              |   |   |   |   |   |   |   |
|  Deposits                        |                                              |   | 574 |   |   |   | 578 |   |
| Federal Home Loan Bank Borrowings     |                                              |   | 257 |   |   |   | 331 |   |
| Total Interest Expense                |                                              |   | 831 |   |   |   | 909 |   |
| Net Interest Income                   |                                              |   | 1,706 |   |   |   | 1,281 |   |
|                                  |                                              |   |   |   |   |   |   |   |
| PROVISION FOR LOAN LOSSES             |                                              |   | 72 |   |   |   | -- |   |
| Net Interest Income after             |                                              |   |   |   |   |   |   |   |
| Provision for Loan Losses             |                                              |   | 1,634 |   |   |   | 1,281 |   |
|                                  |                                              |   |   |   |   |   |   |   |
| NON-INTEREST INCOME                   |                                              |   |   |   |   |   |   |   |
| Gain on Sale of Loans                 |                                              |   | 579 |   |   |   | 44 |   |
| Gain on Sale of Investments           |                                              |   | 229 |   |   |   | -- |   |
| Other Income                          |                                              |   | 26 |   |   |   |  10 |   |
| Total Non-Interest Income             |                                              |   | 834 |   |   |   |  54 |   |
|                                  |                                              |   |   |   |   |   |   |   |
| NON-INTEREST EXPENSE                  |                                              |   |   |   |   |   |   |   |
| Compensation and Benefits             |                                              |   | 1,017 |   |   |   | 612 |   |
| Occupancy and Equipment               |                                              |   | 124 |   |   |   | 93 |   |
| Data Processing                       |                                              |   | 36 |   |   |   | 24 |   |
| Audit and Professional Fees           |                                              |   | 93 |   |   |   | 60 |   |
| Franchise and Bank Shares Tax         |                                              |   | 31 |   |   |   | 38 |   |
| Other Expense                         |                                              |   | 189 |   |   |   |  126 |   |
| Total Non-Interest Expense            |                                              |   | 1,490 |   |   |   |  953 |   |
| Income Before Income Taxes            |                                              |   | 978 |   |   |   | 382 |   |
|                                  |                                              |   |   |   |   |   |   |   |
| PROVISION FOR INCOME TAX EXPENSE      |                                              |   | 332 |   |   |   |  130 |   |
| Net Income                            |                                              | $ | 646 |   |   | $ | 252 |   |
| EARNINGS PER COMMON SHARE:            |                                              |   |   |   |   |   |   |   |
|      Basic   |                                              | $ | 0.20 |   |   | $ | 0.08 |   |
|      Diluted |                                              | $ | 0.20 |   |   | $ | 0.08 |   |
| DIVIDENDS DECLARED                    |                                              | $ | 0.06 |   |   | $ | 0.06 |   |

----

|                                                                                                                                                                     |   | Common Stock |      |   | AdditionalPaid-inCapital |   |      | UnearnedESOPStock |   |   | Unearned RRPTrustStock |   |   | RetainedEarnings |      |   | TreasuryStock |   |      | AccumulatedOtherComprehensive(Loss) Income |   |   | TotalStockholders’Equity |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|--------------------------|--------|-----------|-------------------|--------|--------|------------------------|--------|--------|------------------|-----------|--------|---------------|--------|-----------|--------------------------------------------|--------|--------|--------------------------------|--------|
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   | (In Thousands)         |   |   |             |      |   |          |   |      |                                       |   |
| BALANCE – June 30, 2009                                                                                                                                            |   | $            | 14        |   |                     | $      | 13,608    |              |   | $      | (883                   | )      |   | $                | (269      | )      |          | $      | 20,288    |                                       |   | $      | (1,887                         | )      |   | $ | 439 |   |   | $ | 31,310 |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Net Income                                                                                                                                                               |   |         | --        |   |                     |   | --        |              |   |   | --                     |   |   |             | --        |   |          |   | 252       |                                       |   |   | --                             |   |   |   | -- |   |   |   | 252 |   |
| Other Comprehensive Income:                                                                                                                                              |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
|    Changes in Unrealized Gain      on Securities Available-for-      Sale, Net of Tax Effects |   |         |   -- |   |                     |   |   -- |              |   |   |   --              |   |   |             |   -- |   |          |   |   -- |                                       |   |   |   --                      |   |   |   |   818 |   |   |   |   818 |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| RRP Shares Earned                                                                                                                                                        |   |         | --        |   |                     |   | --        |              |   |   | --                     |   |   |             | 124       |   |          |   | --        |                                       |   |   | --                             |   |   |   | -- |   |   |   | 124 |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Stock Options Vested                                                                                                                                                     |   |         | --        |   |                     |   | 14        |              |   |   | --                     |   |   |             | --        |   |          |   | --        |                                       |   |   | --                             |   |   |   | -- |   |   |   | 14 |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| ESOP Compensation Earned                                                                                                                                                 |   |         | --        |   |                     |   | (3        | )                 |   |   | 14                     |   |   |             | --        |   |          |   | --        |                                       |   |   | --                             |   |   |   | -- |   |   |   | 11 |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Dividends Declared                                                                                                                                                       |   |         | --        |   |                     |   | --        |              |   |   | --                     |   |   |             | --        |   |          |   | (74       | )                                          |   |   | --                             |   |   |   | -- |   |   |   | (74 | ) |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Acquisition Treasury Stock                                                                                                                                               |   |         | --        |   |                     |   | --        |              |   |   | --                     |   |   |             | --        |   |          |   | --        |                                       |   |   | (195                           | )      |   |   | -- |   |   |   | (195 | ) |
| BALANCE – September 30, 2009                                                                                                                                       |   | $            | 14        |   |                     | $      | 13,619    |              |   | $      | (869                   | )      |   | $                | (145      | )      |          | $      | 20,466    |                                       |   | $      | (2,082                         | )      |   | $ | 1,257 |   |   | $ | 32,260 |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| BALANCE – June 30, 2010                                                                                                                                            |   | $            | 14        |   |                     | $      | 13,655    |              |   | $      | (826                   | )      |   | $                | (145      | )      |          | $      | 20,665    |                                       |   | $      | (2,094                         | )      |   | $ | 2,096 |   |   | $ | 33,365 |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Net Income                                                                                                                                                               |   |         | --        |   |                     |   | --        |              |   |   | --                     |   |   |             | --        |   |          |   | 646       |                                       |   |   | --                             |   |   |   | -- |   |   |   | 646 |   |
| Other Comprehensive Loss:                                                                                                                                                |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
|    Changes in Unrealized Gain      on Securities Available-for-      Sale, Net of Tax Effects |   |         |   -- |   |                     |   |   -- |              |   |   |   --              |   |   |             |   -- |   |          |   |   -- |                                       |   |   |   --                      |   |   |   | (269 | ) |   |   | (269 | ) |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| RRP Shares Earned                                                                                                                                                        |   |         | --        |   |                     |   | --        |              |   |   | --                     |   |   |             | 116       |   |          |   | --        |                                       |   |   | --                             |   |   |   | -- |   |   |   | 116 |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Stock Options Vested                                                                                                                                                     |   |         | --        |   |                     |   | 8         |              |   |   | --                     |   |   |             | --        |   |          |   | --        |                                       |   |   | --                             |   |   |   | -- |   |   |   | 8 |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| ESOP Compensation Earned                                                                                                                                                 |   |         | --        |   |                     |   | (3        | )                 |   |   | 14                     |   |   |             | --        |   |          |   | --        |                                       |   |   | --                             |   |   |   | -- |   |   |   | 11 |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Dividends Declared                                                                                                                                                       |   |         | --        |   |                     |   | --        |              |   |   | --                     |   |   |             | --        |   |          |   | (72       | )                                          |   |   | --                             |   |   |   | -- |   |   |   | (72 | ) |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Acquisition Treasury Stock                                                                                                                                               |   |         | --        |   |                     |   | --        |              |   |   | --                     |   |   |             | --        |   |          |   | --        |                                       |   |   | (46                            | )      |   |   | -- |   |   |   | (46 | ) |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
| BALANCE – September 30, 2010                                                                                                                                       |   | $            | 14        |   |                     | $      | 13,660    |              |   | $      | (812                   | )      |   | $                | (29       | )      |          | $      | 21,239    |                                       |   | $      | (2,140                         | )      |   | $ | 1,827 |   |   | $ | 33,759 |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                     |   |         |      |   |                     |   |      |              |   |   |                   |   |   |             |      |   |          |   |      |                                       |   |   |                           |   |   |   |   |   |   |   |   |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA                       |   |
|---------------------------------------------------------------|--------|
|                                                          |   |
| CONSOLIDATED STATEMENTS OF CASH FLOWS                         |   |
| (Unaudited)                                                   |   |
|                                                          |   |
|                                                          |   | Three Months Ended |   |
|                                                          |   | September 30, |   |
|                                                          |   | 2010 |   |   | 2009 |   |
|                                                          |   | (In Thousands) |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                          |   |   |   |   |   |   |
| Net Income                                                    |   | $ | 646 |   |   | $ | 252 |   |
| Adjustments to Reconcile Net Income to Net                    |   |   |   |   |   |   |   |   |
| Cash Provided by Operating Activities                         |   |   |   |   |   |   |   |   |
| Net Amortization and Accretion on Securities                  |   |   | (73 | ) |   |   | (108 | ) |
| Gain on Sale of Securities                                    |   |   | (229 | ) |   |   | -- |   |
| Gain on Sale of Loans                                         |   |   | (579 | ) |   |   | (44 | ) |
| Amortization of Deferred Loan Fees                            |   |   | (27 | ) |   |   | (44 | ) |
| Depreciation of Premises and Equipment                        |   |   | 42 |   |   |   | 22 |   |
| ESOP Expense                                                  |   |   | 12 |   |   |   | 11 |   |
| Stock Option Expense                                          |   |   | 8 |   |   |   | 14 |   |
| Recognition and Retention Plan Expense                        |   |   | 14 |   |   |   | 31 |   |
| Deferred Income Tax                                           |   |   | (27 | ) |   |   | (1 | ) |
| Provision for Loan Losses                                     |   |   | 72 |   |   |   | -- |   |
| Changes in Assets and Liabilities:                            |   |   |   |   |   |   |   |   |
| Loans Held-for-Sale – Originations and Purchases        |   |   | (40,721 | ) |   |   | (11,203 | ) |
| Loans Held-for-Sale – Sale and Principal Repayments     |   |   | 47,318 |   |   |   | 11,856 |   |
| Accrued Interest Receivable                                   |   |   | 31 |   |   |   | (24 | ) |
| Other Operating Assets                                        |   |   | (194 | ) |   |   | 83 |   |
| Other Operating Liabilities                                   |   |   | 381 |   |   |   | 92 |   |
|                                                          |   |   |   |   |   |   |   |   |
| Net Cash Provided by Operating Activities                     |   |   |  6,674 |   |   |   | 937 |   |
|                                                          |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                          |   |   |   |   |   |   |   |   |
| Loan Originations and Purchases, Net of Principal Collections |   |   | (6,606 | ) |   |   | (15,605 | ) |
| Deferred Loan Fees Collected                                  |   |   | 36 |   |   |   | 60 |   |
| Acquisition of Premises and Equipment                         |   |   | (294 | ) |   |   | (254 | ) |
| Activity in Available-for-Sale Securities:                    |   |   |   |   |   |   |   |   |
| Proceeds from Sales of Securities                             |   |   | 4,732 |   |   |   | -- |   |
| Principal Payments on Mortgage-Backed Securities              |   |   | 3,338 |   |   |   | 5,569 |   |
| Activity in Held-to-Maturity Securities:                      |   |   |   |   |   |   |   |   |
| Redemption Proceeds                                           |   |   | 274 |   |   |   | -- |   |
| Principal Payments on Mortgage-Backed Securities              |   |   | 34 |   |   |   | 18 |   |
| Purchases of Securities                                       |   |   | (3 | ) |   |   | (1 | ) |
|                                                          |   |   |   |   |   |   |   |   |
| Net Cash Provided by (Used in) Investing Activities           |   |   | 1,511 |   |   |   | (10,213 | ) |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA              |   |
|------------------------------------------------------|--------|
|                                                 |   |
| CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)    |   |
| (Unaudited)                                          |   |
|                                                 |   |
|                                                 |   | Three Months Ended |   |
|                                                 |   | September 30, |   |
|                                                 |   | 2010 |   |   | 2009 |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                 |   | (In Thousands) |   |
| Net Increase in Deposits                             |   |   | 11,166 |   |   |   | 3,471 |   |
| Proceeds from Federal Home Loan Bank Advances        |   |   | -- |   |   |   | 4,000 |   |
| Repayments of Advances from Federal Home Loan Bank   |   |   | (3,512 | ) |   |   | (1,967 | ) |
| Net Increase in Mortgage-Escrow Funds                |   |   | 88 |   |   |   | 85 |   |
| Dividends Paid                                       |   |   | (73 | ) |   |   | (74 | ) |
| Acquisition of Treasury Stock                        |   |   | (46 | ) |   |   | (195 | ) |
|                                                 |   |   |   |   |   |   |   |   |
| Net Cash Provided by Financing Activities            |   |   | 7,623 |   |   |   | 5,320 |   |
|                                                 |   |   |   |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |   |   | 15,808 |   |   |   | (3,956 | ) |
|                                                 |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD      |   |   | 8,837 |   |   |   | 10,007 |   |
|                                                 |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - END OF PERIOD            |   | $ | 24,645 |   |   | $ | 6,051 |   |
|                                                 |   |   |   |   |   |   |   |   |
| SUPPLEMENTARY CASH FLOW INFORMATION                  |   |   |   |   |   |   |   |   |
| Interest Paid on Deposits and Borrowed Funds         |   | $ | 822 |   |   | $ | 901 |   |
| Income Taxes Paid                                    |   |   | 40 |   |   |   | -- |   |
| Market Value Adjustment for Gain on Securities       |   |   |   |   |   |   |   |   |
| Available-for-Sale                                   |   |   | (409 | ) |   |   | 1,241 |   |

----

----

----

----

|                                                                              |   | September 30, 2010 |   |
|-----------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                              |   |               |   |   | Gross |   |   | Gross |   |   |   |   |
|                                                                              |   | Amortized          |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
| Securities Available-for-Sale                                                     |   | Cost               |   |   | Gains |   |   | Losses |   |   | Value |   |
|                                                                              |   | (In Thousands)     |   |
| Debt Securities                                                                   |   |               |   |   |   |   |   |   |   |   |   |   |
|   FHLMC Mortgage-Backed                                                 |   |               |   |   |   |   |   |   |   |   |   |   |
|     Certificates                                              |   | $                  | 2,961  |   |   | $ | 175 |   |   | $ | -- |   |   | $ | 3,136 |   |
|   FNMA Mortgage-Backed                                                  |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Certificates                                              |   |               | 48,381 |   |   |   | 2,560 |   |   |   | -- |   |   |   | 50,941 |   |
|   GNMA Mortgage-Backed                                                  |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Certificates                                              |   |               | 111    |   |   |   | 1 |   |   |   | -- |   |   |   | 112 |   |
|                                                                              |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Total Debt Securities |   |               | 51,453 |   |   |   | 2,736 |   |   |   | -- |   |   |   | 54,189 |   |
|                                                                              |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity Securities                                                                 |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   176,612 Shares, AMF ARM Fund                                          |   |               | 1,291  |   |   |   | 32 |   |   |   | -- |   |   |   | 1,323 |   |
|                                                                              |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total Securities Available-for-Sale                       |   | $                  | 52,744 |   |   | $ | 2,768 |   |   | $ | -- |   |   | $ | 55,512 |   |

----

|                                                                                                                                                                  |   | September 30, 2010 |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|
|                                                                                                                                                                  |   |               |        |   | Gross |   |   | Gross |   |   |   |   |
|                                                                                                                                                                  |   | Amortized          |        |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
| Securities Held-to-Maturity                                                                                                                                           |   | Cost               |        |   | Gains |   |   | Losses |   |   | Value |   |
|                                                                                                                                                                  |   | (In Thousands)     |        |
| Debt Securities                                                                                                                                                       |   |               |        |   |   |   |   |   |   |   |   |   |
|   GNMA Mortgage-Backed                                                                                                                                      |   |               |        |   |   |   |   |   |   |   |   |   |
|     Certificates                                                                                                                                  |   | $                  | 168         |   |   | $ | 20 |   |   | $ | -- |   |   | $ | 188 |   |
|   FNMA Mortgage-Backed                                                                                                                                      |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Certificates                                                                                                                                  |   |               | 71          |   |   |   | 2 |   |   |   | -- |   |   |   | 73 |   |
|   FHLMC Mortgage-Backed                                                                                                                                     |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Certificates                                                                                                                                  |   |               | 25          |   |   |   | 2 |   |   |   | -- |   |   |   | 27 |   |
|                                                                                                                                                                  |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Total Debt Securities                                                                                     |   |               | 264         |   |   |   | 24 |   |   |   | -- |   |   |   | 288 |   |
|                                                                                                                                                                  |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity Securities (Non-Marketable)                                                                                                                                    |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   15,694 Shares – Federal Home                                                                                                                        |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Loan Bank                                                                                                                                                 |   |               |  1,569 |   |   |   |  -- |   |   |   |  -- |   |   |   |  1,569 |   |
|                                                                                                                                                                  |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Total Securities Held-to-            Maturity |   | $                  | 1,833       |   |   | $ | 24 |   |   | $ | -- |   |   | $ | 1,857 |   |

|                                                                              |   | June 30, 2010  |   |
|-----------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                              |   |           |   |   | Gross |   |   | Gross |   |   |   |   |
|                                                                              |   | Amortized      |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
| Securities Available-for-Sale                                                     |   | Cost           |   |   | Gains |   |   | Losses |   |   | Value |   |
|                                                                              |   | (In Thousands) |   |
| Debt Securities                                                                   |   |           |   |   |   |   |   |   |   |   |   |   |
|   FHLMC Mortgage-Backed                                                 |   |           |   |   |   |   |   |   |   |   |   |   |
|     Certificates                                              |   | $              | 3,031  |   |   | $ | 175 |   |   | $ | -- |   |   | $ | 3,206 |   |
|   FNMA Mortgage-Backed                                                  |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Certificates                                              |   |           | 55,828 |   |   |   | 2,980 |   |   |   |   |   |   |   | 58,808 |   |
|   GNMA Mortgage-Backed                                                  |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Certificates                                              |   |           | 115    |   |   |   | 1 |   |   |   | 1 |   |   |   | 115 |   |
|                                                                              |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Total Debt Securities |   |           | 58,974 |   |   |   | 3,156 |   |   |   | 1 |   |   |   | 62,129 |   |
|                                                                              |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity Securities                                                                 |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   210,350 Shares, AMF ARM Fund                                          |   |           | 1,538  |   |   |   | 21 |   |   |   | -- |   |   |   | 1,559 |   |
|                                                                              |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total Securities Available-for-Sale                       |   | $              | 60,512 |   |   | $ | 3,177 |   |   | $ | 1 |   |   | $ | 63,688 |   |

----

|                                                                                  |   | June 30, 2010 |   |
|---------------------------------------------------------------------------------------|--------|---------------|--------|
|                                                                                  |   |          |   |   | Gross |   |   | Gross |   |   |   |   |
|                                                                                  |   | Amortized     |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
| Securities Held-to-Maturity                                                           |   | Cost          |   |   | Gains |   |   | Losses |   |   | Value |   |
|                                                                                  |   |          |   |   | (In Thousands) |   |   |   |   |
| Debt Securities                                                                       |   |          |   |   |   |   |   |   |   |   |   |   |
|   GNMA Mortgage-Backed                                                      |   |          |   |   |   |   |   |   |   |   |   |   |
|     Certificates                                                  |   | $             | 196    |   |   | $ | 22 |   |   | $ | -- |   |   | $ | 218 |   |
|   FNMA Mortgage-Backed                                                      |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Certificates                                                  |   |          | 75     |   |   |   | 2 |   |   |   | -- |   |   |   | 77 |   |
|   FHLMC Mortgage-Backed                                                     |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Certificates                                                  |   |          | 27     |   |   |   | 1 |   |   |   | -- |   |   |   | 28 |   |
|                                                                                  |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Total Debt Securities     |   |          | 298    |   |   |   | 25 |   |   |   | -- |   |   |   | 323 |   |
|                                                                                  |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity Securities (Non-Marketable)                                                    |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   18,402 Shares – Federal Home                                        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Loan Bank                                               |   |          | 1,840  |   |   |   | -- |   |   |   | -- |   |   |   | 1,840 |   |
|                                                                                  |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Total Securities Held-to- |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|             Maturity      |   | $             | 2,138  |   |   | $ | 25 |   |   | $ | -- |   |   | $ | 2,163 |   |

|                         |   | Available-for-Sale |         |   | Held-to-Maturity |   |
|------------------------------|--------|--------------------|--------------|--------|------------------|--------|
|                         |   | Amortized          |         |   | Fair             |   |   | Amortized |   |   | Fair |   |
|                         |   | Cost               |         |   | Value            |   |   | Cost |   |   | Value |   |
|                         |   | (In Thousands)     |         |
| Within One Year or Less      |   | $                  | --           |   |             | $      | -- |   |   | $ | 4 |   |   | $ | 4 |   |
| One through Five Years       |   |               | --           |   |             |   | -- |   |   |   | 5 |   |   |   | 6 |   |
| After Five through Ten Years |   |               | 695          |   |             |   | 711 |   |   |   | 114 |   |   |   | 121 |   |
| Over Ten Years               |   |               |  50,758 |   |             |   |  53,478 |   |   |   |  141 |   |   |   |  157 |   |
|                         |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
|    Total      |   | $                  | 51,453       |   |             | $      | 54,189 |   |   | $ | 264 |   |   | $ | 288 |   |

----

|                                                                           |   | September 30, 2010      |   |
|--------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                           |   | Less than Twelve Months |   |   | Over Twelve Months |   |
|                                                                           |   | Gross                   |   |   |   |   |   | Gross |   |   |   |   |
|                                                                           |   | Unrealized              |   |   | Fair |   |   | Unrealized |   |   | Fair |   |
|                                                                           |   | Losses                  |   |   | Value |   |   | Losses |   |   | Value |   |
|                                                                           |   | (In Thousands)          |   |
| Debt Securities                                                                |   |                    |   |   |   |   |   |   |   |   |   |   |
|     Mortgage-Backed Securities                             |   | $                       | --     |   |   | $ | -- |   |   | $ | -- |   |   | $ | -- |   |
| Marketable Equity                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Securities                                             |   |                    | --     |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                                           |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total Securities               |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Available-for-Sale |   | $                       | --     |   |   | $ | -- |   |   | $ | -- |   |   | $ | -- |   |

|                                                                           |   | June 30, 2010           |   |
|--------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                           |   | Less than Twelve Months |   |   | Over Twelve Months |   |
|                                                                           |   | Gross                   |   |   |   |   |   | Gross |   |   |   |   |
|                                                                           |   | Unrealized              |   |   | Fair |   |   | Unrealized |   |   | Fair |   |
|                                                                           |   | Losses                  |   |   | Value |   |   | Losses |   |   | Value |   |
|                                                                           |   | (In Thousands)          |   |
| Debt Securities                                                                |   |                    |   |   |   |   |   |   |   |   |   |   |
|     Mortgage-Backed Securities                             |   | $                       | --     |   |   | $ | -- |   |   | $ | 1 |   |   | $ | 89 |   |
| Marketable Equity                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Securities                                             |   |                    | --     |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                                           |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total Securities               |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Available-for-Sale |   | $                       | --     |   |   | $ | -- |   |   | $ | 1 |   |   | $ | 89 |   |

----

|                                                                               |   | Three Months Ended September 30, 2010 |            |   | Three Months Ended September 30, 2009 |   |
|------------------------------------------------------------------------------------|--------|---------------------------------------|-----------------|--------|---------------------------------------|--------|
|                                                                               |   | Basic                                 |            |   | Diluted                               |   |   | Basic |   |   | Diluted |   |
|                                                                               |   |                                  |            |   |                                  |   |   |   |   |   |   |   |
| Net income                                                                         |   | $                                     | 646,315         |   |                                  | $      | 646,315 |   |   | $ | 251,750 |   |   | $ | 251,750 |   |
| Weighted average shares outstanding                                                |   |                                  | 3,254,865       |   |                                  |   | 3,254,865 |   |   |   | 3,258,307 |   |   |   | 3,258,307 |   |
| Effect of unvested common stock awards                                             |   |                                  |  --        |   |                                  |   |  -- |   |   |   | -- |   |   |   | -- |   |
| Adjusted weighted average shares used in  earnings per share computation |   |                                  |  3,254,865 |   |                                  |   |  3,254,865 |   |   |   | 3,258,307 |   |   |   | 3,258,307 |   |
| Earnings per share                                                                 |   | $                                     | 0.20            |   |                                  | $      |  0.20 |   |   | $ | 0.08 |   |   | $ | 0.08 |   |

----

|   | Cash and Cash Equivalents |
|--------|---------------------------|

|   | The carrying amount approximates the fair value of cash and cash equivalents. |
|--------|-------------------------------------------------------------------------------|

|   | Securities to be Held-to-Maturity and Available-for-Sale |
|--------|----------------------------------------------------------|

|   | Mortgage Loans Held-for-Sale |
|--------|------------------------------|

|   | For variable-rate loans that re-price frequently and with no significant changes in credit risk, fair value approximates the carrying value.  Fair values for other loans are estimated using the discounted value of expected future cash flows. Interest rates used are those being offered currently for loans with similar terms to borrowers of similar credit quality. The carrying amount of accrued interest receivable approximates its fair value. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                |   | September 30, 2010 |    |   | June 30, 2010  |   |
|-----------------------------------------------------|--------|--------------------|---------|--------|----------------|--------|
|                                                |   | Carrying           |    |   | Estimated      |   |   | Carrying |   |   | Estimated |   |
|                                                |   | Value              |    |   | Fair Value     |   |   | Value |   |   | Fair Value |   |
| Financial Assets                                    |   | (In Thousands)     |    |   | (In Thousands) |   |
|    Cash and Cash Equivalents         |   | $                  | 24,645  |   |           | $      | 24,645 |   |   | $ | 8,837 |   |   | $ | 8,837 |   |
|    Securities Available-for-Sale     |   |               | 55,512  |   |           |   | 55,512 |   |   |   | 63,688 |   |   |   | 63,688 |   |
|    Securities to be Held-to-Maturity |   |               | 1,833   |   |           |   | 1,857 |   |   |   | 2,138 |   |   |   | 2,163 |   |
|    Loans Held-for-Sale               |   |               | 7,385   |   |           |   | 7,385 |   |   |   | 13,403 |   |   |   | 13,403 |   |
|    Loans Receivable                  |   |               | 99,580  |   |           |   | 117,007 |   |   |   | 93,056 |   |   |   | 109,322 |   |
|                                                |   |               |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities                               |   |               |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    Deposits                          |   |               | 128,888 |   |           |   | 131,852 |   |   |   | 117,722 |   |   |   | 120,460 |   |
|    Advances from FHLB                |   |               | 27,995  |   |           |   | 29,479 |   |   |   | 31,507 |   |   |   | 33,175 |   |
|                                                |   |               |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Off-Balance Sheet Items                             |   |               |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
|    Mortgage Loan Commitments         |   |               | --      |   |           |   | 177 |   |   |   | -- |   |   |   | 142 |   |

----

| §   | Defines fair value as the price that would be received to sell an asset or paid to transfer a liability, in either case, through an orderly transaction between market participants at a measurement date and establishes a framework for measuring fair value; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Nullifies the guidance in EITF 02-3, which required the deferral of profit at inception of a transaction involving a derivative financial instrument in the absence of observable data supporting the valuation technique; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Eliminates large position discounts for financial instruments quoted in active markets and requires consideration of the company’s creditworthiness when valuing liabilities; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Expands disclosures about instrument that are measured at fair value. |
|--------------------|-----------------------------------------------------------------------|

| §   | Level 1 – Fair value is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets in which the Company can participate. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Level 2 – Fair value is based upon (a) quoted prices for similar assets or liabilities in active markets; (b) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly; (c) inputs other than quoted prices that are observable for the asset or liability or (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Level 3 – Fair value is based upon inputs that are unobservable for the asset or liability.  These inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).  These inputs are developed based on the best information available in the circumstances, which include the Company’s own data. The Company’s own data used to develop unobservable inputs are adjusted if information indicates that market participants would use different assumptions. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                       |   | Fair Value Measurements Using:                              |   |   |                                       |   |
|----------------------------|--------|-------------------------------------------------------------|--------|--------|--------------------------------------------|--------|
| September 30, 2010    |   | Quoted Prices inActive Markets forIdentical Assets(Level 1) |   |   | SignificantOther ObservableInputs(Level 2) |   |   |   Total |   |
|                       |   |                                                        |   |   | (In Thousands)                             |   |   |   |   |
| Available-for-Sale         |   |                                                        |   |   |                                       |   |   |   |   |
| Debt Securities            |   |                                                        |   |   |                                       |   |   |   |   |
|    FHLMC    |   | $                                                           | --     |   |                                       | $      | 3,136 |   |   | $ | 3,136 |   |
|    FNMA     |   |                                                        | --     |   |                                       |   | 50,941 |   |   |   | 50,941 |   |
|    GNMA     |   |                                                        | --     |   |                                       |   | 112 |   |   |   | 112 |   |
| Equity Securities          |   |                                                        |   |   |                                       |   |   |   |   |   |   |   |
|    ARM Fund |   |                                                        | 1,323  |   |                                       |   | -- |   |   |   | 1,323 |   |
|                       |   |                                                        |   |   |                                       |   |   |   |   |   |   |   |
| Total                      |   | $                                                           | 1,323  |   |                                       | $      | 54,189 |   |   | $ | 55,512 |   |

|                       |   | Fair Value Measurements Using:                              |   |   |                                       |   |
|----------------------------|--------|-------------------------------------------------------------|--------|--------|--------------------------------------------|--------|
| June 30, 2010              |   | Quoted Prices inActive Markets forIdentical Assets(Level 1) |   |   | SignificantOther ObservableInputs(Level 2) |   |   | Total |   |
|                       |   |                                                        |   |   | (In Thousands)                             |   |   |   |   |
| Available-for-Sale         |   |                                                        |   |   |                                       |   |   |   |   |
| Debt Securities            |   |                                                        |   |   |                                       |   |   |   |   |
|    FHLMC    |   | $                                                           | --     |   |                                       | $      | 3,206 |   |   | $ | 3,206 |   |
|    FBNA     |   |                                                        | --     |   |                                       |   | 58,808 |   |   |   | 58,808 |   |
|    GNMA     |   |                                                        | --     |   |                                       |   | 115 |   |   |   | 115 |   |
| Equity Securities          |   |                                                        |   |   |                                       |   |   |   |   |   |   |   |
|    ARM Fund |   |                                                        | 1,559  |   |                                       |   | -- |   |   |   | 1,559 |   |
|                       |   |                                                        |   |   |                                       |   |   |   |   |   |   |   |
| Total                      |   | $                                                           | 1,559  |   |                                       | $      | 62,129 |   |   | $ | 63,688 |   |

----

----

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

----

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
|---------|---------------------------------------------------------------------------------------------------------|

----

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
|---------|---------------------------------------------------------------------------------------------------------|

----

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) |
|---------|---------------------------------------------------------------------------------------------------------|

----

----

| (c)   | Purchases of Equity Securities |
|-----------------|--------------------------------|

| Period                                                           |   | TotalNumber of SharesPurchased |   |   | Average PricePaid perShare |   |   | Total Number of Shares Purchased as Part ofPubliclyAnnounced Plans orPrograms |   |   | Maximum Number of Shares that May Yet Be Purchased Under the Plans orPrograms |   |
|------------------------------------------------------------------|--------|--------------------------------|--------|--------|----------------------------|--------|--------|-------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------|--------|
| Month #1 July 1, 2010 – July 31, 2010                      |   |                           | --     |   |                       | $      | --     |                                                                          |   |   | --                                                                            |   |   |   | 93,637 |   |
| Month #2 August 1, 2010 – August 31, 2010                  |   |                           | 4,636  |   |                       |   | 9.97   |                                                                          |   |   | 4,636                                                                         |   |   |   | 89,001 |   |
| Month #3 September 1, 2010 –  September 30, 2010 |   |                           | --     |   |                       |   | --     |                                                                          |   |   | --                                                                            |   |   |   | 89,001 |   |
| Total                                                            |   |                           | 4,636  |   |                       | $      | 9.97   |                                                                          |   |   | 4,636                                                                         |   |   |   | 89,001 |   |

----

|   | No.  |   | Description                                                             |
|--------|------|--------|-------------------------------------------------------------------------|
|   | 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 |   | Certification Pursuant to 18 U.S.C Section 1350                         |

----

|   |              |   |                                                 |   |
|--------|-------------------|--------|------------------------------------------------------|--------|
|   |              |   |                                                 |   |
| Date:  | November 15, 2010 | By:    | /s/ Daniel R. Herndon                                |
|   |              |   | Daniel R. Herndon                                    |   |
|   |              |   | President and Chief Executive Officer                |
|   |              |   |                                                 |   |
|   |              |   |                                                 |
|   |              |   | /s/ Clyde D. Patterson                               |
| Date:  | November 15, 2010 | By:    | Clyde D. Patterson                                   |   |
|   |              |   | Executive Vice President and Chief Financial Officer |
|   |              |   | (principal financial officer)                        |