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

|   | For the quarterly period ended: December 31, 2010 |
|--------|---------------------------------------------------|

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

|   | For the transition period from ___________ to ____________ |
|--------|------------------------------------------------------------|

| 000-53370                |                                                   |   |
|--------------------------|--------------------------------------------------------|--------|
| (Commission File Number) |                                                   |   |
|                     |                                                   |   |
|                     | Auburn Bancorp, Inc.                                   |   |
|                     | (Exact name of registrant as specified in its charter) |   |

| United States                                 |   |   |   | 26-2139168                       |
|-----------------------------------------------|--------|--------|--------|----------------------------------|
| (State or other jurisdictionof incorporation) |   |   |   | (IRS EmployerIdentification No.) |

|   | 256 Court Street, P.O. Box 3157, Auburn, Maine 04212  |   |
|--------|-------------------------------------------------------|--------|
|   | (Address and zip code of principal executive offices) |   |

|   | (207) 782-0400                                             |   |
|--------|------------------------------------------------------------|--------|
|   | (Registrant’s telephone number, including area code) |   |

|   | None                                                                               |   |
|--------|------------------------------------------------------------------------------------|--------|
|   | (Former name, former address and former fiscal year, if changed since last report) |   |

----

|                                      |                                                                                                                             |   | Page   |
|-------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| PART I. FINANCIAL INFORMATION (Unaudited) |
|                                      |                                                                                                                             |   |   |   |
| Item 1.                                   | Financial Statements                                                                                                             |   |   |   |
|                                      |                                                                                                                             |   |   |   |
|                                      | Consolidated Balance Sheets as of December 31, 2010 (Unaudited) and June 30, 2010                                                |   | 3      |   |
|                                      |                                                                                                                             |   |   |   |
|                                      | Consolidated Statements of Income (Unaudited) for the Three Months Ended December 31, 2010 and 2009                              |   | 4      |   |
|                                      |                                                                                                                             |   |   |   |
|                                      | Consolidated Statements of Income (Unaudited) for the Six Months Ended December 31, 2010 and 2009                                |   | 5      |   |
|                                      |                                                                                                                             |   |   |   |
|                                      | Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) for the Six Months Ended December 31, 2010 and 2009 |   | 6      |   |
|                                      |                                                                                                                             |   |   |   |
|                                      | Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended December 31, 2010 and 2009                            |   | 7      |   |
|                                      |                                                                                                                             |   |   |   |
|                                      | Notes to Consolidated Financial Statements (Unaudited)                                                                           |   | 8      |   |
|                                      |                                                                                                                             |   |   |   |
| Item 2.                                   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                      |   | 19     |   |
|                                      |                                                                                                                             |   |   |   |
| Item 3.                                   | quantitative and qualitative disclosures about market risk                                                                       |   | 31     |   |
|                                      |                                                                                                                             |   |   |   |
| Item 4.                                   | Controls and Procedures                                                                                                          |   | 31     |   |
|                                      |                                                                                                                             |   |   |
| PART II. OTHER INFORMATION                |
|                                      |                                                                                                                             |   |   |   |
| Item 1.                                   | Legal Proceedings                                                                                                                |   | 31     |   |
|                                      |                                                                                                                             |   |   |   |
| Item 1A.                                  | Risk Factors                                                                                                                     |   | 31     |   |
|                                      |                                                                                                                             |   |   |   |
| Item 2.                                   | Unregistered Sales of Equity Securities and Use of Proceeds                                                                      |   | 31     |   |
|                                      |                                                                                                                             |   |   |   |
| Item 3.                                   | Defaults Upon Senior Securities                                                                                                  |   | 31     |   |
|                                      |                                                                                                                             |   |   |   |
| Item 4.                                   | [removed and reserved]                                                                                                           |   | 31     |   |
|                                      |                                                                                                                             |   |   |   |
| Item 5.                                   | other information                                                                                                                |   | 32     |   |
|                                      |                                                                                                                             |   |   |   |
| Item 6.                                   | exhibits                                                                                                                         |   | 32     |   |
|                                      |                                                                                                                             |   |   |   |
|                                      | Signatures                                                                                                                       |   | 33     |   |

----

|                                                                                                                                                                                                |   | December 31,2010 |       |   | June 30, 2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|------------|--------|---------------|--------|
|                                                                                                                                                                                                |   | (Unaudited)      |       |   |          |   |
| ASSETS                                                                                                                                                                                              |
| Cash and due from banks                                                                                                                                                                             |   | $                | 1,632,965  |   |          | $      | 1,573,526 |   |
| Interest-earning deposits                                                                                                                                                                           |   |             | 1,707,640  |   |          |   | 3,705,910 |   |
|       Total cash and cash equivalents                                                                                                                                 |   |             | 3,340,605  |   |          |   | 5,279,436 |   |
|                                                                                                                                                                                                |   |             |       |   |          |   |   |   |
|  Certificates of deposit                                                                                                                                                                       |   |             | 745,000    |   |          |   | 845,000 |   |
|                                                                                                                                                                                                |   |             |       |   |          |   |   |   |
|  Investment securities available for sale, at fair value                                                                                                                                       |   |             | 1,783,845  |   |          |   | 1,112,507 |   |
|                                                                                                                                                                                                |   |             |       |   |          |   |   |   |
|  Federal Home Loan Bank stock, at cost                                                                                                                                                         |   |             | 1,251,700  |   |          |   | 1,251,700 |   |
|                                                                                                                                                                                                |   |             |       |   |          |   |   |   |
|  Loans                                                                                                                                                                                         |   |             | 70,588,583 |   |          |   | 69,374,825 |   |
|    Less allowance for loan losses                                                                                                                                                    |   |             | (717,762   | )      |          |   | (492,112 | ) |
|       Net loans                                                                                                                                                       |   |             | 69,870,821 |   |          |   | 68,882,713 |   |
|                                                                                                                                                                                                |   |             |       |   |          |   |   |   |
|  Property and equipment, net                                                                                                                                                                   |   |             | 1,828,824  |   |          |   | 1,852,414 |   |
|                                                                                                                                                                                                |   |             |       |   |          |   |   |   |
|  Foreclosed real estate, net of allowance of $15,226 at                                                                                                                                        |   |             |       |   |          |   |   |   |
|       December 31, 2010 and $50,333 at June 30, 2010                                                                                                                  |   |             | 903,691    |   |          |   | 680,712 |   |
|                                                                                                                                                                                                |   |             |       |   |          |   |   |   |
|  Accrued interest receivable                                                                                                                                                                   |   |             |       |   |          |   |   |   |
|    Investments                                                                                                                                                                       |   |             | 21,932     |   |          |   | 13,820 |   |
|    Mortgage-backed securities                                                                                                                                                        |   |             | 463        |   |          |   | 573 |   |
|    Loans                                                                                                                                                                             |   |             | 261,144    |   |          |   | 263,353 |   |
|                                                                                                                                                                                                |   |             |       |   |          |   |   |   |
|  Prepaid expenses and other assets                                                                                                                                                             |   |             | 401,597    |   |          |   | 405,246 |   |
|                                                                                                                                                                                                |   |             |       |   |          |   |   |   |
|            Total assets                                                                                                                      |   | $                | 80,409,622 |   |          | $      | 80,587,474 |   |
|                                                                                                                                                                                                |   |             |       |   |          |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                          |   |
|                                                                                                                                                                                                |   |             |       |   |          |   |   |   |
| Liabilities                                                                                                                                                                                         |   |             |       |   |          |   |   |   |
|    Deposits                                                                                                                                                                          |   | $                | 54,142,734 |   |          | $      | 55,769,248 |   |
|    Federal Home Loan Bank advances                                                                                                                                                   |   |             | 19,858,013 |   |          |   | 18,430,662 |   |
|    Accrued interest and other liabilities                                                                                                                                            |   |             | 260,339    |   |          |   | 337,611 |   |
|           Total liabilities                                                                                                                       |   |             | 74,261,086 |   |          |   | 74,537,521 |   |
|                                                                                                                                                                                                |   |             |       |   |          |   |   |   |
|  Stockholders’ Equity                                                                                                                                                                    |   |             |       |   |          |   |   |   |
|    Preferred stock, 1,000,000 shares authorized, no shares issued or outstanding                                                                                                     |   |             | -          |   |          |   | - |   |
|    Common stock, $.01 par value per share, 10,000,000 shares authorized, 503,284 shares issued and outstanding at        December 31 and June 30, 2010 |   |             | 5,033      |   |          |   | 5,033 |   |
|    Additional paid-in-capital                                                                                                                                                        |   |             | 1,467,029  |   |          |   | 1,468,928 |   |
|    Retained earnings                                                                                                                                                                 |   |             | 4,811,297  |   |          |   | 4,719,099 |   |
|    Accumulated other comprehensive income                                                                                                                                            |   |             | 4,179      |   |          |   | 1,368 |   |
|    Unearned compensation (ESOP shares)                                                                                                                                               |   |             | (139,002   | )      |          |   | (144,475 | ) |
|           Total stockholders’ equity                                                                                                        |   |             | 6,148,536  |   |          |   | 6,049,953 |   |
|                                                                                                                                                                                                |   |             |       |   |          |   |   |   |
|            Total liabilities and stockholders’ equity                                                                                  |   | $                | 80,409,622 |   |          | $      | 80,587,474 |   |

----

|                                                                                                                                |   |                            |                     |   |       |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------------------------|--------|------------|--------|
|                                                                                                                                |   | Three Months Ended December 31, |                     |
|                                                                                                                                |   | 2010                            |                     |   |  2009 |   |
|                                                                                                                                |   |  (Unaudited)               |                     |
| Interest and dividend income:                                                                                                       |   |                            |                     |   |       |   |   |   |
| Interest on loans                                                                                                                   |   | $                               | 1,053,581                |   |       | $      | 1,020,311 |   |
| Interest on investments and other interest-earning deposits                                                                         |   |                            |   13,381       |   |       |   |  33,360 |   |
| Total interest and dividend income                                                                                                  |   |                            |  1,066,962          |   |       |   |  1,053,671 |   |
|                                                                                                                                |   |                            |                     |   |       |   |   |   |
| Interest expense:                                                                                                                   |   |                            |                     |   |       |   |   |   |
| Interest on deposits and escrow accounts                                                                                            |   |                            | 218,356                  |   |       |   | 248,839 |   |
| Interest on Federal Home Loan Bank advances                                                                                         |   |                            | 150,189                  |   |       |   | 175,243 |   |
|                    Total interest expense |   |                            | 368,545                  |   |       |   | 424,082 |   |
|                                                                                                                                |   |                            |                     |   |       |   |   |   |
| Net interest income                                                                                                                 |   |                            | 698,417                  |   |       |   | 629,589 |   |
|                                                                                                                                |   |                            |                     |   |       |   |   |   |
| Provision for loan losses                                                                                                           |   |                            | 25,217                   |   |       |   | 27,613 |   |
|                                                                                                                                |   |                            |                     |   |       |   |   |   |
| Net interest income after provision for loan losses                                                                                 |   |                            |  673,200            |   |       |   |  601,976 |   |
|                                                                                                                                |   |                            |                     |   |       |   |   |   |
| Non-interest income:                                                                                                                |   |                            |                     |   |       |   |   |   |
|        Net gain on sales of loans                                                                |   |                            | 70,510                   |   |       |   | 21,106 |   |
|        Net loss on sale of other assets                                                          |   |                            | (32,942                  | )      |       |   | (319 | ) |
|        Net gain on sale of investment securities                                                      |   |                            | —                  |   |       |   | 32,894 |   |
|        Other non-interest income                                                                      |   |                            |    40,868 |   |       |   |    34,637 |   |
| Total non-interest income                                                                                                           |   |                            |  78,436             |   |       |   |  88,318 |   |
|                                                                                                                                |   |                            |                     |   |       |   |   |   |
| Non-interest expenses:                                                                                                              |   |                            |                     |   |       |   |   |   |
| Salaries and employee benefits                                                                                                      |   |                            | 257,007                  |   |       |   | 234,924 |   |
| Occupancy expense                                                                                                                   |   |                            | 25,459                   |   |       |   | 25,740 |   |
| Depreciation                                                                                                                        |   |                            | 23,764                   |   |       |   | 24,392 |   |
| Federal deposit insurance premiums                                                                                                  |   |                            | 24,343                   |   |       |   | 23,192 |   |
| Computer charges                                                                                                                    |   |                            | 42,596                   |   |       |   | 40,178 |   |
| Advertising expense                                                                                                                 |   |                            | 19,671                   |   |       |   | 16,719 |   |
| Consulting expense                                                                                                                  |   |                            | 15,633                   |   |       |   | 9,498 |   |
| Net provision for losses on foreclosed real estate                                                                                  |   |                            | 15,226                   |   |       |   | 10,000 |   |
| Other operating expenses                                                                                                            |   |                            | 157,847                  |   |       |   | 179,435 |   |
| Total non-interest expenses                                                                                                         |   |                            |  581,546            |   |       |   |  564,078 |   |
|                                                                                                                                |   |                            |                     |   |       |   |   |   |
| Income before income taxes                                                                                                          |   |                            | 170,090                  |   |       |   | 126,216 |   |
|                                                                                                                                |   |                            |                     |   |       |   |   |   |
| Income tax expense                                                                                                                  |   |                            |  60,466             |   |       |   |  46,573 |   |
|                                                                                                                                |   |                            |                     |   |       |   |   |   |
| Net income                                                                                                                          |   | $                               | 109,624                  |   |       | $      | 79,643 |   |
|                                                                                                                                |   |                            |                     |   |       |   |   |   |
| Net income per common share                                                                                                         |   | $                               | .22                      |   |       | $      | .16 |   |

----

|                                                                                      |   | Six Months Ended December 31, |            |
|-------------------------------------------------------------------------------------------|--------|-------------------------------|-----------------|
|                                                                                      |   | 2010                          |            |   | 2009 |   |
|                                                                                      |   | (Unaudited)                   |            |
| Interest and dividend income:                                                             |   |                          |            |   |   |   |
| Interest on loans                                                                         |   | $                             | 2,121,152       |   |   | $ | 1,985,755 |   |
| Interest on investments and other interest-earning deposits                               |   |                          |  27,889    |   |   |   |  80,091 |   |
| Total interest and dividend income                                                        |   |                          |  2,149,041 |   |   |   |  2,065,846 |   |
|                                                                                      |   |                          |            |   |   |   |   |   |
| Interest expense:                                                                         |   |                          |            |   |   |   |   |   |
| Interest on deposits and escrow accounts                                                  |   |                          | 452,573         |   |   |   | 516,898 |   |
| Interest on Federal Home Loan Bank advances                                               |   |                          | 296,369         |   |   |   | 366,176 |   |
| Total interest expense                                                                    |   |                          | 748,942         |   |   |   | 883,074 |   |
|                                                                                      |   |                          |            |   |   |   |   |   |
| Net interest income                                                                       |   |                          | 1,400,099       |   |   |   | 1,182,772 |   |
|                                                                                      |   |                          |            |   |   |   |   |   |
| Provision for loan losses                                                                 |   |                          |  304,014   |   |   |   | 45,461 |   |
|                                                                                      |   |                          |            |   |   |   |   |   |
| Net interest income after provision for loan losses                                       |   |                          |  1,096,085 |   |   |   |  1,137,311 |   |
|                                                                                      |   |                          |            |   |   |   |   |   |
| Non-interest income (loss):                                                               |   |                          |            |   |   |   |   |   |
|        Net gain on sales of loans                      |   |                          | 92,905          |   |   |   | 42,699 |   |
|        Net loss on sale of other assets                |   |                          | (39,326         | ) |   |   | (7,233 | ) |
|        Net loss on sale of investment securities  |   |                          | —         |   |   |   | (126,269 | )  |
|        Other non-interest income                       |   |                          |  80,570    |   |   |   |  70,531 |   |
| Total non-interest income (loss)                                                          |   |                          |  134,149   |   |   |   | (20,272 | ) |
|                                                                                      |   |                          |            |   |   |   |   |   |
| Non-interest expenses:                                                                    |   |                          |            |   |   |   |   |   |
| Salaries and employee benefits                                                            |   |                          | 486,526         |   |   |   | 466,866 |   |
| Occupancy expense                                                                         |   |                          | 49,275          |   |   |   | 50,586 |   |
| Depreciation                                                                              |   |                          | 47,819          |   |   |   | 50,400 |   |
| Federal deposit insurance premiums                                                        |   |                          | 37,784          |   |   |   | 75,556 |   |
| Computer charges                                                                          |   |                          | 84,709          |   |   |   | 85,646 |   |
| Advertising expense                                                                       |   |                          | 42,161          |   |   |   | 30,183 |   |
| Consulting expense                                                                        |   |                          | 31,673          |   |   |   | 23,473 |   |
| Net provision for losses on foreclosed real estate                                        |   |                          | 11,084          |   |   |   | 10,000 |   |
| Other operating expenses                                                                  |   |                          | 293,749         |   |   |   | 289,494 |   |
| Total non-interest expenses                                                               |   |                          |  1,084,780 |   |   |   | 1,082,204 |   |
|                                                                                      |   |                          |            |   |   |   |   |   |
| Income before income taxes                                                                |   |                          | 145,454         |   |   |   | 34,835 |   |
|                                                                                      |   |                          |            |   |   |   |   |   |
| Income tax expense                                                                        |   |                          |  53,256    |   |   |   |  16,924 |   |
|                                                                                      |   |                          |            |   |   |   |   |   |
| Net income                                                                                |   | $                             | 92,198          |   |   | $ | 17,911 |   |
|                                                                                      |   |                          |            |   |   |   |   |   |
| Net income per common share                                                               |   | $                             | .19             |   |   | $ | .04 |   |

----

|                        |   |   |   |   |             |   |      |     |   |   | Accumulated   |   |   |          |    |   |   |   |
|-----------------------------|--------|--------|--------|--------|------------------|--------|-----------|----------|--------|--------|---------------|--------|--------|---------------|---------|--------|--------|--------|
|                        |   |   |   |   |             |   |      |     |   |   | Other         |   |   | Unearned      |    |   |   |   |
|                        |   | Common |   |   | Additional Paid- |   |      | Retained |   |   | Comprehensive |   |   | Compensation  |    |   |   |   |
|                        |   | Stock  |   |   | in-Capital       |   |      | Earnings |   |   | Income (Loss) |   |   | (ESOP Shares) |    |   | Total  |   |
|                        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |
| Balance, June 30, 2009      |   | $      | 5,033  |   |             | $      | 1,470,790 |     |   | $      | 4,611,470     |   |   | $             | (26,225 | )      |   | $      | (157,189 | ) |   | $ | 5,903,879 |   |
|                        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Comprehensive income        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Net income                  |   |   | -      |   |             |   | -         |     |   |   | 17,911        |   |   |          | -       |   |   |   | - |   |   |   | 17,911 |   |
| Other comprehensive income  |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Unrealized holding gain on  |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| securities, net of taxes    |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| of $12,048                  |   |   | -      |   |             |   | -         |     |   |   | -             |   |   |          | 23,388  |   |   |   | - |   |   |   | 23,388 |   |
|                        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Total comprehensive income  |   |   | -      |   |             |   | -         |     |   |   | 17,911        |   |   |          | 23,388  |   |   |   | - |   |   |   | 41,299 |   |
|                        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Common stock held by ESOP   |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| committed to be released    |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| (694 shares)                |   |   | -      |   |             |   | (738      | )        |   |   | -             |   |   |          | -       |   |   |   | 6,935 |   |   |   | 6,197 |   |
|                        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009  |   | $      | 5,033  |   |             | $      | 1,470,052 |     |   | $      | 4,629,381     |   |   | $             | (2,837  | )      |   | $      | (150,254 | ) |   | $ | 5,951,375 |   |
|                        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
|                        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
|                        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
|                        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Balance, June 30, 2010      |   | $      | 5,033  |   |             | $      | 1,468,928 |     |   | $      | 4,719,099     |   |   | $             | 1,368   |   |   | $      | (144,475 | ) |   | $ | 6,049,953 |   |
|                        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Comprehensive income        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Net income                  |   |   | -      |   |             |   | -         |     |   |   | 92,198        |   |   |          | -       |   |   |   | - |   |   |   | 92,198 |   |
| Other comprehensive income  |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Unrealized holding gain on  |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| securities, net of taxes of |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| $1,448                      |   |   | -      |   |             |   | -         |     |   |   | -             |   |   |          | 2,811   |   |   |   | - |   |   |   | 2,811 |   |
|                        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Total comprehensive income  |   |   | -      |   |             |   | -         |     |   |   | 92,198        |   |   |          | 2,811   |   |   |   | - |   |   |   | 95,009 |   |
|                        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Common stock held by ESOP   |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| committed to be released    |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| (547 shares)                |   |   | -      |   |             |   | (1,899    | )        |   |   | -             |   |   |          | -       |   |   |   | 5,473 |   |   |   | 3,574 |   |
|                        |   |   |   |   |             |   |      |     |   |   |          |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010  |   | $      | 5,033  |   |             | $      | 1,467,029 |     |   | $      | 4,811,297     |   |   | $             | 4,179   |   |   | $      | (139,002 | ) |   | $ | 6,148,536 |   |

----

|                                                                                        |   | Six Months Ended |       |
|---------------------------------------------------------------------------------------------|--------|------------------|------------|
|                                                                                        |   | December 31,     |       |
|                                                                                        |   | 2010             |       |   | 2009 |   |
| Cash flows from operating activities:                                                       |   |             |       |   |   |   |
|                                                                                        |   |             |       |   |   |   |
|  Net income                                                                            |   | $                | 92,198     |   |   | $ | 17,911 |   |
|                                                                                        |   |             |       |   |   |   |   |   |
|  Adjustments to reconcile net income to net cash provided by operating activities:     |   |             |       |   |   |   |   |   |
| Depreciation                                                                                |   |             | 47,819     |   |   |   | 50,400 |   |
| Net accretion of discounts on investment securities available for sale                      |   |             | (17,367    | ) |   |   | (5,926 | ) |
| Provision for loan losses                                                                   |   |             | 304,014    |   |   |   | 45,461 |   |
| Net provision for losses on foreclosed real estate                                          |   |             | 11,084     |   |   |   | 10,000 |   |
| Deferred income tax benefit                                                                 |   |             | -          |   |   |   | (11,380 | ) |
| Net loss on sale of investment securities available for sale                                |   |             | -          |   |   |   | 126,269 |   |
| Gain on sales of loans                                                                      |   |             | (92,905    | ) |   |   | (42,699 | ) |
| Loss on foreclosed real estate                                                              |   |             | 14,096     |   |   |   | 7,233 |   |
| ESOP compensation expense                                                                   |   |             | 3,880      |   |   |   | 6,197 |   |
| Net decrease (increase) in prepaid expenses and other assets                                |   |             | 3,649      |   |   |   | (334,162 | ) |
| Net decrease (increase) in accrued interest receivable                                      |   |             | (5,793     | ) |   |   | 20,846 |   |
| Net decrease in accrued interest payable and other liabilities                              |   |             | (78,720    | ) |   |   | (15,844 | ) |
|                                                                                        |   |             |       |   |   |   |   |   |
| Net cash provided by (used in) operating activities                                         |   |             | 281,955    |   |   |   | (125,694 | ) |
|                                                                                        |   |             |       |   |   |   |   |   |
| Cash flows from investing activities:                                                       |   |             |       |   |   |   |   |   |
| Purchase of investment securities available for sale                                        |   |             | (708,594   | ) |   |   | - |   |
| Proceeds from sales of investment securities available for sale                             |   |             | -          |   |   |   | 800,499 |   |
| Proceeds from maturities and principal paydowns on investment securities available for sale |   |             | 58,882     |   |   |   | 84,615 |   |
| Proceeds from sale of other real estate owned                                               |   |             | 103,380    |   |   |   | - |   |
| Net change in certificates of deposit                                                       |   |             | 100,000    |   |   |   | 3,957,105 |   |
| Net increase in loans to customers                                                          |   |             | (1,550,756 | ) |   |   | (5,072,472 | ) |
| Purchase of Federal Home Loan Bank stock                                                    |   |             | -          |   |   |   | (104,700 | ) |
| Capital expenditures                                                                        |   |             | (24,229    | ) |   |   | (14,119 | ) |
|                                                                                        |   |             |       |   |   |   |   |   |
| Net cash used in investing activities                                                       |   |             | (2,021,317 | ) |   |   | (349,072 | ) |
|                                                                                        |   |             |       |   |   |   |   |   |
| Cash flows from financing activities:                                                       |   |             |       |   |   |   |   |   |
| Advances from Federal Home Loan Bank                                                        |   |             | 2,000,000  |   |   |   | 4,250,000 |   |
| Repayment of advances from Federal Home Loan Bank                                           |   |             | (500,000   | ) |   |   | (2,750,000 | ) |
| Net change in short-term borrowings                                                         |   |             | (72,649    | ) |   |   | (3,047,497 | ) |
| Net increase (decrease) in deposits                                                         |   |             | (1,626,514 | ) |   |   | 2,303,537 |   |
| Redemption of ESOP shares                                                                   |   |             | (306       | ) |   |   | - |   |
|                                                                                        |   |             |       |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                         |   |             | (199,469   | ) |   |   | 756,040 |   |
|                                                                                        |   |             |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                        |   |             | (1,938,831 | ) |   |   | 281,274 |   |
|                                                                                        |   |             |       |   |   |   |   |   |
|  Cash and cash equivalents, beginning of period                                        |   |             | 5,279,436  |   |   |   | 2,374,636 |   |
|                                                                                        |   |             |       |   |   |   |   |   |
| Cash and cash equivalents, end of period                                                    |   | $                | 3,340,605  |   |   | $ | 2,655,910 |   |
|                                                                                        |   |             |       |   |   |   |   |   |
| Supplementary cash flow information:                                                        |   |             |       |   |   |   |   |   |
|                                                                                        |   |             |       |   |   |   |   |   |
| Cash paid during the period for:                                                            |   |             |       |   |   |   |   |   |
| Interest                                                                                    |   | $                | 746,544    |   |   | $ | 886,525 |   |
| Taxes                                                                                       |   | $                | 100,930    |   |   | $ | 6,300 |   |
| Transfer of loans to foreclosed real estate                                                 |   | $                | 351,539    |   |   | $ | 186,032 |   |

----

----

| December 31, 2010                                                            |   |                |      |   |                       |   |   |                        |   |   |      |   |   |   |      |   |
|------------------------------------------------------------------------------|--------|---------------------|-----------|--------|----------------------------|--------|--------|-----------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|
|                                                                         |   | AmortizedCost  |      |   | GrossUnrealizedGains  |   |   | GrossUnrealizedLosses  |   |   | FairValue |   |
|                                                                         |   |                |      |   |                       |   |   |                        |   |   |      |   |   |   |      |   |
| Municipal bond                                                               |   | $                   | 178,756   |   |                       | $      | -      |                        |   | $      | (4,463    | )      |   | $      | 174,293   |   |
| Corporate bonds                                                              |   |                | 1,490,622 |   |                       |   | 20,979 |                        |   |   | (12,450   | )      |   |   | 1,499,151 |   |
| FNMA mortgage-backed securities                                              |   |                | 98,133    |   |                       |   | 1,777  |                        |   |   | (158      | )      |   |   | 99,752    |   |
| U.S. Government sponsored enterprise securities                              |   |                | 2         |   |                       |   | 647    |                        |   |   | -         |   |   |   | 649       |   |
| Corporate common stock                                                       |   |                | 10,000    |   |                       |   | -      |                        |   |   | -         |   |   |   | 10,000    |   |
|                                                                         |   |                |      |   |                       |   |   |                        |   |   |      |   |   |   |      |   |
|      Total investment securities available for sale |   | $                   | 1,777,513 |   |                       | $      | 23,403 |                        |   | $      | (17,071   | )      |   | $      | 1,783,845 |   |

| June 30, 2010                                                                |   |                |      |   |                       |   |   |                        |   |   |      |   |
|------------------------------------------------------------------------------|--------|---------------------|-----------|--------|----------------------------|--------|--------|-----------------------------|--------|--------|-----------|--------|
|                                                                         |   |  AmortizedCost |      |   |  GrossUnrealizedGains |   |   |  GrossUnrealizedLosses |   |   | FairValue |   |
|                                                                         |   |                |      |   |                       |   |   |                        |   |   |      |   |
| Corporate bonds                                                              |   | $                   | 982,415   |   |                       | $      | 13,366 |                        |   | $      | (15,640   | )      |   | $ | 980,141 |   |
| FNMA mortgage-backed securities                                              |   |                | 118,017   |   |                       |   | 3,499  |                        |   |   | -         |   |   |   | 121,516 |   |
| U.S. Government sponsored enterprise securities                              |   |                | 2         |   |                       |   | 848    |                        |   |   | -         |   |   |   | 850 |   |
| Corporate common stock                                                       |   |                | 10,000    |   |                       |   | -      |                        |   |   | -         |   |   |   | 10,000 |   |
|                                                                         |   |                |      |   |                       |   |   |                        |   |   |      |   |   |   |   |   |
|      Total investment securities available for sale |   | $                   | 1,110,434 |   |                       | $      | 17,713 |                        |   | $      | (15,640   | )      |   | $ | 1,112,507 |   |

----

|                           |   | December 31, 2010 |      |   | June 30, 2010 |   |
|--------------------------------|--------|-------------------|-----------|--------|---------------|--------|
|                           |   | AmortizedCost     |      |   | FairValue     |   |   | AmortizedCost |   |   | FairValue |   |
|                           |   |              |      |   |          |   |   |   |   |   |   |   |
| Over 1 year through 5 years    |   | $                 | 1,290,622 |   |          | $      | 1,281,008 |   |   | $ | 782,415 |   |   | $ | 766,775 |   |
| After 5 years through 10 years |   |              | 200,000   |   |          |   | 218,144 |   |   |   | 200,000 |   |   |   | 213,366 |   |
| After 10 years                 |   |              | 178,756   |   |          |   | 174,292 |   |   |   | - |   |   |   | - |   |
|                           |   |              | 1,669,378 |   |          |   | 1,673,444 |   |   |   | 982,415 |   |   |   | 980,141  |   |
| Mortgage-backed securities     |   |              | 98,133    |   |          |   | 99,752 |   |   |   | 118,017 |   |   |   | 121,516 |   |
|                           |   |              |      |   |          |   |   |   |   |   |   |   |   |   |   |   |
|                           |   | $                 | 1,767,511 |   |          | $      | 1,773,196 |   |   | $ | 1,100,432 |   |   | $ | 1,101,657 |   |

|                            |   | Less Than 12 Months |    |   | 12 Months or Greater  |   |   | Total      |   |
|---------------------------------|--------|---------------------|---------|--------|-----------------------|--------|--------|------------|--------|
|                            |   |                |    |   |                  |   |   |       |   |   |   |   |   |   |   |   |   |   |
|                            |   | Fair Value          |    |   | GrossUnrealizedLosses |   |   | Fair Value |   |   | GrossUnrealizedLosses |   |   | Fair Value |   |   | GrossUnrealizedLosses |   |
|                            |   |                |    |   |                  |   |   |       |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010               |   |                |    |   |                  |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Municipal bond                  |   | $                   | -       |   |                  | $      | -      |       |   | $ | 174,293 |   |   | $ | 4,463 |   |   | $ | 174,293 |   |   | $ | 4,463 |   |
| Corporate bonds                 |   |                | -       |   |                  |   | -      |       |   |   | 237,550 |   |   |   | 12,450 |   |   |   | 237,550 |   |   |   | 12,450 |   |
| FNMA mortgage backed securities |   |                | -       |   |                  |   | -      |       |   | $ | 52,101 |   |   |   | 158 |   |   |   | 52,101 |   |   |   | 158 |   |
|                            |   |                |    |   |                  |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                           |   | $                   | -       |   |                  | $      | -      |       |   | $ | 463,944 |   |   | $ | 17,071 |   |   | $ | 463,944 |   |   | $ | 17,071 |   |
|                            |   |                |    |   |                  |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June 30, 2010                   |   |                |    |   |                  |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate bonds                 |   | $                   | 530,525 |   |                  | $      | 1,890  |       |   | $ | 236,250 |   |   | $ | 13,750 |   |   | $ | 766,775 |   |   | $ | 15,640 |   |
|                            |   |                |    |   |                  |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                           |   | $                   | 530,525 |   |                  | $      | 1,890  |       |   | $ | 236,250 |   |   | $ | 13,750 |   |   | $ | 766,775 |   |   | $ | 15,640 |   |

----

----

|                                                        | Commercial Non-Real Estate |      |   | Commercial Real Estate |   |       | Residential Real Estate |   |   | Consumer   |   |   | Unallocated |    |   | Total  |   |
|-------------------------------------------------------------|----------------------------|-----------|--------|------------------------|--------|------------|-------------------------|--------|--------|------------|--------|--------|-------------|---------|--------|--------|--------|
| Allowance for credit losses                                 |                       |      |   |                   |   |       |                    |   |   |       |   |   |        |    |   |   |   |
|    Beginning balance                         | $                          | 65,874    |   |                   | $      | 157,173    |                    |   | $      | 261,246    |   |   | $           | 7,819   |   |   | $      | - |   |   | $ | 492,112 |   |
|         Charge-offs |                       | (42,290   | )      |                   |   | (7,900     | )                       |   |   | (23,808    | )      |   |        | (5,666  | )      |   |   | - |   |   |   | (79,664 | ) |
|         Recoveries  |                       | -         |   |                   |   | -          |                    |   |   | -          |   |   |        | 1,300   |   |   |   | - |   |   |   | 1,300 |   |
|         Provision   |                       | 59,944    |   |                   |   | 94,841     |                    |   |   | 117,138    |   |   |        | 4,875   |   |   |   | 27,216 |   |   |   | 304,014 |   |
|    Ending balance                            | $                          | 83,528    |   |                   | $      | 244,114    |                    |   | $      | 354,576    |   |   | $           | 8,328   |   |   | $      | 27,216 |   |   | $ | 717,762 |   |
|                                                        |                       |      |   |                   |   |       |                    |   |   |       |   |   |        |    |   |   |   |   |   |   |   |   |   |
|     Ending balance                      | $                          | 83,528    |   |                   | $      | 244,114    |                    |   | $      | 354,576    |   |   | $           | 8,328   |   |   | $      | 27,216 |   |   | $ | 717,762 |   |
|    Individually evaluated for impairment     |                       | 58,200    |   |                   | $      | 7,900      |                    |   |   | 5,201      |   |   |        | 2,498   |   |   |   | - |   |   |   | 73,799 |   |
|    Collectively evaluated for impairment     |                       | 25,328    |   |                   |   | 236,214    |                    |   |   | 349,375    |   |   |        | 5,830   |   |   |   | 27,216 |   |   |   | 643,963 |   |
|                                                        |                       |      |   |                   |   |       |                    |   |   |       |   |   |        |    |   |   |   |   |   |   |   |   |   |
|  Loans                                                 |                       |      |   |                   |   |       |                    |   |   |       |   |   |        |    |   |   |   |   |   |   |   |   |   |
|    Ending balance                            | $                          | 4,972,559 |   |                   | $      | 16,376,820 |                    |   | $      | 48,300,125 |   |   | $           | 939,079 |   |   | $      | - |   |   | $ | 70,588,583 |   |
|    Individually evaluated for impairment     |                       | 58,200    |   |                   |   | 24,996     |                    |   |   | 16,455     |   |   |        | 2,498   |   |   |   | - |   |   |   | 102,149 |   |
|    Collectively evaluated for impairment     |                       | 4,914,359 |   |                   |   | 16,351,824 |                    |   |   | 48,283 670 |   |   |        | 936,581 |   |   |   | - |   |   |   | 70,486,434 |   |
|                                                        |                       |      |   |                   |   |       |                    |   |   |       |   |   |        |    |   |   |   |   |   |   |   |   |   |

----

|   | 1)                                                                                      | Superior - Well established national companies and loans secured by cash or marketable securities;                                                                                                      |
|--------|-----------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 2)                                                                                      | Excellent - Well established local companies and loans secured by cash or marketable securities;                                                                                                        |
|   | 3)                                                                                      | Good – Assets secured by well to recently established businesses whose performance is average and whose industry conditions are fair to good; and                                                 |
|   | 4)                                                                                      | Pass - Assets secured by well to recently established businesses whose performance is average and whose industry conditions are fair to good. Borrower’s financial condition shows deterioration. |
|   |                                                                                    |                                                                                                                                                                                                    |   |
|   | The other line items in the table are defined within the Loan Review Policy as follows; |
|   |                                                                                    |                                                                                                                                                                                                    |   |
|   |                                                                                    | -                                                                                                                                                                                                       | Pass/Watch: Cash flow may be temporarily inadequate to cover the debt, projected primary source of repayment has not been verified or a deterioration in the financial condition of the customer that is not yet reflected in the status of the loan. |
|   |                                                                                    | -                                                                                                                                                                                                       | Special Mention: Assets are protected but potentially weak. Borrower is experiencing adverse trends or balance sheet issues which have not yet reached a point of jeopardizing loan repayment. |
|   |                                                                                    | -                                                                                                                                                                                                       | Substandard: Inadequately protected assets that exhibit one or more well defined weaknesses that jeopardize full collection or liquidation of assets. |
|   |                                                                                    | -                                                                                                                                                                                                       | Doubtful: Same standards as “substandard” with added characteristics that current facts, conditions and values make full collection highly improbable. |
|   |                                                                                    | -                                                                                                                                                                                                       | Loss: Assets that are considered uncollectible and are not warranted as a bank. |

|   | Commercial Credit Exposure                       |
|--------|--------------------------------------------------|
|   | Credit Risk Profile by Internally Assigned Grade |

|            |   | Commercial |      |   | Commerical  |   |
|-----------------|--------|------------|-----------|--------|-------------|--------|
|            |   | Non-Real   |      |   | Real Estate |   |
| Grade:          |   | Estate     |      |   | Other       |   |
| Acceptable      |   | $          | 3,253,153 |   |        | $      | 11,486,168 |   |
| Pass/Watch *    |   |       | 1,361,206 |   |        |   | 3,056,473 |   |
| Special mention |   |       | -         |   |        |   | 1,070,382 |   |
| Substandard     |   |       | 300,000   |   |        |   | 721,250 |   |
| Doubtful        |   |       | -         |   |        |   | 34,647 |   |
| Loss            |   |       | 58,200    |   |        |   | 7,900 |   |
| Total           |   | $          | 4,972,559 |   |        | $      | 16,376,820 |   |

|   |    * | Commercial Non-Real Estate includes six loans with $1.3 million subject to SBA or FAME guarantees. Commercial Real Estate Other includes one loan with $440,000 subject to a FAME guaranty. |
|--------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Residential/Consumer Credit Exposure             |
|--------|--------------------------------------------------|
|   | Credit Risk Profile by Internally Assigned Grade |

|            |   | Residential |       |   |     |   |
|-----------------|--------|-------------|------------|--------|----------|--------|
| Grade:          |   | Real Estate |       |   | Consumer |   |
| Acceptable      |   | $           | 47,289,381 |   |     | $      | 934,334 |   |
| Pass/Watch      |   |        | 340,816    |   |     |   | 2,247 |   |
| Special mention |   |        | 99,497     |   |     |   | - |   |
| Substandard     |   |        | 565,230    |   |     |   | - |   |
| Doubtful        |   |        | -          |   |     |   | - |   |
| Loss            |   |        | 5,201      |   |     |   | 2,498 |   |
| Total           |   | $           | 48,300,125 |   |     | $      | 939,079 |   |

----

|   | Impaired Loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Management considers factors including payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due when determining impairment. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. |

| Impaired Loans                             |
|--------------------------------------------|
| For the Six Months Ended December 31, 2010 |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   | Unpaid |   |   |   |   |   | Average |   |   |   |   |
|                                       |   | Recorded |   |   | Principal |   |   | Related |   |   | Recorded |   |   | Interest Income |   |
|                                       |   | Investment |   |   | Balance |   |   | Allowance |   |   | Investment |   |   | Recognized |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With no related allowance recorded:        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial non-real estate                 |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Commercial real estate                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Residential real estate                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Consumer                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded:                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial non-real estate                 |   | $ | 58,200 |   |   | $ | 58,200 |   |   | $ | 58,200 |   |   | $ | 58,200 |   |   | $ | 2 ,274 |   |
| Commercial real estate                     |   |   | 24,996 |   |   |   | 24,996 |   |   |   | 7,900 |   |   |   | 24,996 |   |   |   | - |   |
| Residential real estate                    |   |   | 16,455 |   |   |   | 16,455 |   |   |   | 5,201 |   |   |   | 16,455 |   |   |   | - |   |
| Consumer                                   |   |   | 2,498 |   |   |   | 2,498 |   |   |   | 2,498 |   |   |   | 2,498 |   |   |   | 42 |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total:                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial non-real estate                 |   |   | 58,200 |   |   |   | 58,200 |   |   |   | 58,200 |   |   |   | 58,200 |   |   | $ | 2 ,274 |   |
| Commercial real estate                     |   |   | 24,996 |   |   |   | 24,996 |   |   |   | 7,900 |   |   |   | 24,996 |   |   |   | - |   |
| Residential real estate                    |   |   | 16,455 |   |   |   | 16,455 |   |   |   | 5,201 |   |   |   | 16,455 |   |   |   | - |   |
| Consumer                                   |   |   | 2,498 |   |   |   | 2,498 |   |   |   | 2,498 |   |   |   | 2,498 |   |   |   | 42 |   |
|                                       |   | $ | 102,149 |   |   | $ | 102,149 |   |   | $ | 73,799 |   |   | $ | 102,149 |   |   | $ | 2,316 |   |

|   | Non-performing Loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | Loans are placed on non-accrual status when reasonable doubt exists as to the full timely collection of interest and principal or when a loan becomes 90 days past due unless an evaluation clearly indicates that the loan is well-secured and in the process of collection. When a loan is placed on non-accrual status, unpaid interest credited to income is reversed. Interest received on nonaccrual loans generally is applied against principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. These policies apply to all types of loans, including commercial and residential/consumer. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | Real estate acquired as a result of foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned until it is sold. When property is acquired, it is recorded at fair value at the date of foreclosure. Holding costs and declines in fair value after acquisition of the property result in charges against income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

----

|   | At each of the dates presented below, the Bank did not have any troubled debt restructurings that involve forgiving a portion of interest or principal on any loans or making loans at a rate materially less than that of market rates or any accruing loans past due 90 days or more. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Age Analysis of Past Due Loans |   |
|--------------------------------|--------|
| As of December 31, 2010        |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Recorded |   |   | Recorded |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Investment Loans |   |   | Investment Loans |   |
|                           |   | 30-59 Days |   |   | 60-89 Days |   |   | Greater Than |   |   | Total Past |   |   |   |   |   |   |   |   | > 90 Days and |   |   | on Non-Accrual |   |
|                           |   | Past Due |   |   | Past Due |   |   | 90 Days |   |   | Due |   |   | Current |   |   | Total Loans |   |   | Accruing |   |   | Status |   |
| Commercial non-real estate     |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 4,972,559 |   |   | $ | 4,972,559 |   |   | $ | - |   |   | $ | - |   |
| Commercial real estate         |   |   | 378,252 |   |   |   | 162,812 |   |   |   | 59,643 |   |   |   | 600,707 |   |   |   | 15,776,113 |   |   |   | 16,376,820 |   |   |   | - |   |   |   | 59,643 |   |
| Residential real estate        |   |   | 47,722 |   |   |   | 534,414 |   |   |   | 653,304 |   |   |   | 1,235,440 |   |   |   | 47,064,685 |   |   |   | 48,300,125 |   |   |   | - |   |   |   | 653,304 |   |
| Consumer                       |   |   | 32,576 |   |   |   | 2,247 |   |   |   | 2,498 |   |   |   | 37,321 |   |   |   | 901,758 |   |   |   | 939,079 |   |   |   | - |   |   |   | 2,498 |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   | $ | 458,550 |   |   | $ | 699,473 |   |   | $ | 715,445 |   |   | $ | 1,873,468 |   |   | $ | 68,715,115 |   |   | $ | 70,588,583 |   |   | $ | - |   |   | $ | 715,445 |   |

| 6.     | Earnings Per Share                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Basic income per common share is determined by dividing net income by the adjusted weighted average number of common shares outstanding during the period. The adjusted outstanding common shares equals the gross number of common shares issued less unallocated shares of the ESOP. Net income per common share for the three months and six months ended December 31, 2010 and 2009 is based on the following: |

|                                                |   | Three Months EndedDecember 31, |    |   | Six Months EndedDecember 31, |   |
|-----------------------------------------------------|--------|--------------------------------|---------|--------|------------------------------|--------|
|                                                |   | 2010                           |    |   | 2009                         |   |   | 2010 |   |   | 2009 |   |
|                                                |   |                           |    |   |                         |   |   |   |   |   |   |   |
| Net income                                          |   | $                              | 109,624 |   |                         | $      | 79,643 |   |   | $ | 92,198 |   |   | $ | 17,911 |   |
| Weighted average common shares outstanding          |   |                           | 503,284 |   |                         |   | 503,284 |   |   |   | 503,284 |   |   |   | 503,284 |   |
| Less: Average unallocated ESOP shares               |   |                           | (13,986 | )      |                         |   | (15,122 | ) |   |   | (14,126 | ) |   |   | (15,315 | ) |
|                                                |   |                           |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted weighted average common shares outstanding |   |                           | 489,298 |   |                         |   | 488,162 |   |   |   | 489,158 |   |   |   | 487,969 |   |
|                                                |   |                           |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Net income per common share                         |   | $                              | 0.22    |   |                         | $      | 0.16 |   |   | $ | 0.19 |   |   | $ | 0.04 |   |

| 7.     | Comprehensive Income or Loss                                                                                                                                                                                                                                                                                                                                                                |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                        |
|   | GAAP requires that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income or loss. |
|   |                                                                                                                                                                                                                                                                                                                                                                                        |
|   | The components of total comprehensive income and related tax effects for the three and six months ended December 31, 2010 and 2009 are as follows:                                                                                                                                                                                                                                          |

|                                                                                          |   | Three Months Ended |    |   | Six Months Ended |   |
|-----------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                                                          |   | December 31,       |    |   | December 31,     |   |
|                                                                                          |   | 2010               |    |   | 2009             |   |   | 2010 |   |   | 2009 |   |
|  Net income                                                                              |   | $                  | 109,624 |   |             | $      | 79,643 |   |   | $ | 92,198 |   |   | $ | 17,911 |   |
| Other comprehensive income, net of tax:                                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding income (losses) on securities available for sale arising during the period |   |               | (18,395 | )      |             |   | (3,600 | ) |   |   | 4,259 |   |   |   | (90,833 | ) |
|  Reclassification adjustment for items included in net income                            |   |               | -       |   |             |   | (32,894 | ) |   |   | - |   |   |   | 126,269 |   |
|  Tax effect                                                                              |   |               | 6,254   |   |             |   | 12,408 |   |   |   | (1,448 | ) |   |   | (12,048 | ) |
|  Other comprehensive income (loss), net of tax                                           |   |               | (12,141 | )      |             |   | (24,086 | ) |   |   | 2,811 |   |   |   | 23,388 |   |
|  Total comprehensive income                                                              |   | $                  | 97,483  |   |             | $      | 55,557 |   |   | $ | 95,009 |   |   | $ | 41,299 |   |

----

----

|   |                                            |   |   |      |   | Fair Value Measurements Using                              |   |
|--------|-------------------------------------------------|--------|--------|-----------|--------|------------------------------------------------------------|--------|
|   |                                            |   | Total  |      |   | Quoted PricesIn ActiveMarkets forIdentical Assets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|   | December 31, 2010                               |   |   |      |   |                                                       |   |   |   |   |   |   |   |
|   | Assets:                                         |   |   |      |   |                                                       |   |   |   |   |   |   |   |
|   | Investment securities available for sale        |   |   |      |   |                                                       |   |   |   |   |   |   |   |
|   | Municipal bond                                  |   | $      | 174,293   |   |                                                       | $      | --- |   |   | $ | 174,293 |   |   | $ | --- |   |
|   | Corporate bonds                                 |   |   | 1,499,151 |   |                                                       |   | --- |   |   |   | 1,499,151 |   |   |   | --- |   |
|   | FNMA mortgage-backed securities                 |   |   | 99,752    |   |                                                       |   | --- |   |   |   | 99,752 |   |   |   | --- |   |
|   | U.S. Government sponsored enterprise securities |   |   | 649       |   |                                                       |   | --- |   |   |   | 649 |   |   |   | --- |   |
|   | Corporate common stock                          |   |   | 10,000    |   |                                                       |   | --- |   |   |   | 10,000 |   |   |   | --- |   |
|   |                                            |   |   |      |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|   | June 30, 2010                                   |   |   |      |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|   | Assets:                                         |   |   |      |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|   | Investment securities available for sale        |   |   |      |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|   | Corporate bonds                                 |   | $      | 980,141   |   |                                                       | $      | --- |   |   | $ | 980,141 |   |   | $ | --- |   |
|   | FNMA mortgage-backed securities                 |   |   | 121,516   |   |                                                       |   | --- |   |   |   | 121,516 |   |   |   | --- |   |
|   | U.S. Government sponsored enterprise securities |   |   | 850       |   |                                                       |   | --- |   |   |   | 850 |   |   |   | --- |   |
|   | Corporate common stock                          |   |   | 10,000    |   |                                                       |   | --- |   |   |   | 10,000 |   |   |   | --- |   |

|   |                   |   |   |    |   | Fair Value Measurements Using                              |   |
|--------|------------------------|--------|--------|---------|--------|------------------------------------------------------------|--------|
|   |                   |   | Total  |    |   | Quoted PricesIn ActiveMarkets forIdentical Assets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|   | December 31, 2010      |   |   |    |   |                                                       |   |   |   |   |   |   |   |
|   | Assets:                |   |   |    |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|   | Impaired loans         |   | $      | 28,350  |   |                                                       | $      | --- |   |   | $ | 28,350 |   |   | $ | --- |   |
|   | Foreclosed real estate |   |   | 903,691 |   |                                                       |   |   |   |   |   | 903,691 |   |   |   |   |   |
|   |                   |   |   |    |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|   | June 30, 2010          |   |   |    |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|   | Assets:                |   |   |    |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|   | Impaired loans         |   | $      | 328,939 |   |                                                       | $      | --- |   |   | $ | 328,939 |   |   | $ | --- |   |
|   | Foreclosed real estate |   |   | 680,712 |   |                                                       |   |   |   |   |   | 680,712 |   |   |   |   |   |

----

----

|   |                            |   | December 31, 2010 |   |   | June 30, 2010  |   |
|--------|---------------------------------|--------|-------------------|--------|--------|----------------|--------|
|   |                            |   | Carrying          |   |   | Fair           |   |   | Carrying |   |   | Fair |   |
|   |                            |   | Amount            |   |   | Value          |   |   | Amount |   |   | Value |   |
|   |                            |   |              |   |   | (In thousands) |   |   |   |   |
|   | Financial assets                |   |              |   |   |           |   |   |   |   |   |   |   |
|   | Cash and cash equivalents       |   | $                 | 3,341  |   |           | $      | 3,341 |   |   | $ | 5,279 |   |   | $ | 5,279 |   |
|   | Certificates of deposit         |   |              | 745    |   |           |   | 745 |   |   |   | 845 |   |   |   | 845 |   |
|   | Securities available for sale   |   |              | 1,784  |   |           |   | 1,784 |   |   |   | 1,113 |   |   |   | 1,113 |   |
|   | Federal Home Loan Bank stock    |   |              | 1,252  |   |           |   | 1,252 |   |   |   | 1,252 |   |   |   | 1,252 |   |
|   | Loans, net                      |   |              | 69,871 |   |           |   | 71,811 |   |   |   | 68,883 |   |   |   | 71,067 |   |
|   | Accrued interest receivable     |   |              | 284    |   |           |   | 284 |   |   |   | 278 |   |   |   | 278 |   |
|   |                            |   |              |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|   | Financial liabilities           |   |              |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|   | Deposits                        |   |              | 54,143 |   |           |   | 53,354 |   |   |   | 55,769 |   |   |   | 55,396 |   |
|   | Federal Home Loan Bank advances |   |              | 19,858 |   |           |   | 20,180 |   |   |   | 18,431 |   |   |   | 19,010 |   |

|   |  ● | Those comprising events or transactions providing additional evidence about conditions that existed at the balance sheet date, including estimates inherent in the financial statement preparation process (referred to as recognized subsequent events). |
|--------|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  ● | Those comprising events that provide evidence about conditions not existing at the balance sheet date but, rather, that arose after such date (referred to as non-recognized subsequent events). |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|                                      |   | Three Months Ended December 31, 2010Compared to Three MonthsEnded December 31, 2009 |   |
|-------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|
|                                      |   | Volume                                                                              |   |   | Rate |   |   | Netchange |   |
| Interest-earning assets:                  |   |                                                                                |   |   |   |   |   |   |   |   |   |   |
| Loans                                     |   | $                                                                                   | 62,000 |   |   | $ | (29,000 | ) |   | $ | 33,000 |   |
| Investment securities                     |   |                                                                                | 7,000  |   |   |   | (6,000 | ) |   |   | 1,000 |   |
| Federal Home Loan Bank stock              |   |                                                                                | -      |   |   |   | - |   |   |   | - |   |
| Interest-earning deposits                 |   |                                                                                | (7,000 | ) |   |   | (14,000 | ) |   |   | (21,000 | ) |
| Total interest-earning assets             |   | $                                                                                   | 62,000 |   |   | $ | (49,000 | ) |   | $ | 13,000 |   |
| Interest-bearing liabilities:             |   |                                                                                |   |   |   |   |   |   |   |   |   |   |
| Savings deposits                          |   | $                                                                                   | 1,000  |   |   | $ | (4,000 | ) |   | $ | (3,000 | ) |
| NOW accounts                              |   |                                                                                | -      |   |   |   | (2,000 | ) |   |   | (2,000 | ) |
| Money market accounts                     |   |                                                                                | -      |   |   |   | (24,000 | ) |   |   | (24,000 | ) |
| Certificates of deposit                   |   |                                                                                | 22,000 |   |   |   | (24,000 | ) |   |   | (2,000 | ) |
| Total deposits                            |   |                                                                                | 23,000 |   |   |   | (54,000 | ) |   |   | (31,000 | ) |
| Federal Home Loan Bank of Boston advances |   |                                                                                | (4,000 | ) |   |   | (21,000 | ) |   |   | (25,000 | ) |
| Total interest-bearing liabilities        |   | $                                                                                   | 19,000 |   |   | $ | (75,000 | ) |   | $ | (56,000 | ) |
| Change in net interest income             |   | $                                                                                   | 43,000 |   |   | $ | 26,000 |   |   | $ | 69,000 |   |

----

|                                                               |   | For the Three Months Ended December 31, |        |
|--------------------------------------------------------------------|--------|-----------------------------------------|-------------|
|                                                               |   | 2010                                    |        |   | 2009 |   |
|                                                               |   | AverageOutstandingBalance               |        |   | Interest |   |   | Yield/Rate |   |   | AverageOutstandingBalance |   |   | Interest |   |   | Yield/Rate |   |
|                                                               |   | (Dollars in Thousands)                  |        |
| Interest-earning assets:                                           |   |                                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                              |   | $                                       | 70,440      |   |   | $ | 1,053 |   |   |   | 5.98 | % |   | $ | 66,299 |   |   | $ | 1,020 |   |   |   | 6.16 | % |
| Investment securities(1)                                           |   |                                    | 1,808       |   |   |   | 11 |   |   |   | 2.45 | % |   |   | 873 |   |   |   | 10 |   |   |   | 4.41 | % |
| Federal Home Loan Bank stock                                       |   |                                    | 1,252       |   |   |   | - |   |   |   | 0.00 | % |   |   | 1,237 |   |   |   | - |   |   |   | 0.00 | % |
| Interest-earning deposits                                          |   |                                    | 2,377       |   |   |   | 2 |   |   |   | 0.39 | % |   |   | 3,980 |   |   |   | 24 |   |   |   | 2.39 | % |
| Total interest-earning assets                                      |   |                                    | 75,877      |   |   | $ | 1,066 |   |   |   | 5.62 | % |   |   | 72,389 |   |   | $ | 1,054 |   |   |   | 5.82 | % |
|  Non-interest-earning assets                                  |   |                                    |  5,031 |   |   |   |   |   |   |   |   |   |   |   | 4,327 |   |   |   |   |   |   |   |   |   |
| Total assets                                                       |   | $                                       | 80,908      |   |   |   |   |   |   |   |   |   |   | $ | 76,716 |   |   |   |   |   |   |   |   |   |
|                                                               |   |                                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                      |   |                                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings deposits                                                   |   | $                                       | 4,199       |   |   | $ | 5 |   |   |   | 0.50 | % |   | $ | 3,468 |   |   | $ | 7 |   |   |   | 0.86 | % |
| NOW accounts                                                       |   |                                    | 2,728       |   |   |   | 3 |   |   |   | 0.51 | % |   |   | 2,663 |   |   |   | 5 |   |   |   | 0.78 | % |
| Money market accounts                                              |   |                                    | 12,440      |   |   |   | 23 |   |   |   | 0.75 | % |   |   | 12,372 |   |   |   | 48 |   |   |   | 1.53 | % |
| Certificates of deposit                                            |   |                                    | 31,825      |   |   |   | 187 |   |   |   | 2.34 | % |   |   | 28,337 |   |   |   | 189 |   |   |   | 2.67 | % |
| Total interest-bearing deposits                                    |   |                                    | 51,192      |   |   |   | 218 |   |   |   | 1.71 | % |   |   | 46,840 |   |   |   | 249 |   |   |   | 2.13 | % |
| FHLB advances                                                      |   |                                    | 19,873      |   |   |   | 150 |   |   |   | 3.02 | % |   |   | 20,392 |   |   |   | 175 |   |   |   | 3.44 | % |
| Total interest-bearing liabilities                                 |   | $                                       | 71,065      |   |   | $ | 368 |   |   |   | 2.07 | % |   | $ | 67,232 |   |   | $ | 424 |   |   |   | 2.52 | % |
|                                                               |   |                                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing liabilities:                                  |   |                                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                    |   | $                                       | 3,476       |   |   |   |   |   |   |   |   |   |   | $ | 3,285 |   |   |   |   |   |   |   |   |   |
| Other non-interest-bearing liabilities                             |   |                                    | 166         |   |   |   |   |   |   |   |   |   |   |   | 178 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                  |   |                                    | 74,707      |   |   |   |   |   |   |   |   |   |   |   | 70,695 |   |   |   |   |   |   |   |   |   |
| Total capital                                                      |   |                                    | 6,201       |   |   |   |   |   |   |   |   |   |   |   | 6,021 |   |   |   |   |   |   |   |   |   |
| Total liabilities and capital                                      |   | $                                       | 80,908      |   |   |   |   |   |   |   |   |   |   | $ | 76,716 |   |   |   |   |   |   |   |   |   |
|                                                               |   |                                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                |   |                                    |        |   |   | $ | 698 |   |   |   |   |   |   |   |   |   |   | $ | 630 |   |   |   |   |   |
| Net interest rate spread(2)                                        |   |                                    |        |   |   |   |   |   |   |   | 3.55 | % |   |   |   |   |   |   |   |   |   |   | 3.30 | % |
| Net interest-earning assets(3)                                     |   | $                                       | 4,812       |   |   |   |   |   |   |   |   |   |   | $ | 5,157 |   |   |   |   |   |   |   |   |   |
| Net interest margin(4)                                             |   |                                    |        |   |   |   |   |   |   |   | 3.68 | % |   |   |   |   |   |   |   |   |   |   | 3.48 | % |
| Average of interest-earning assets to interest-bearing liabilities |   |                                    | 106.77      | % |   |   |   |   |   |   |   |   |   |   | 107.67 | % |   |   |   |   |   |   |   |   |

----

| (1) | Consists of taxable investment securities and one municipal bond.  The municipal bond is presented on a fully taxable basis as the tax equivalent adjustment is not material to the yield. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (4) | Net interest margin represents net interest income divided by average total interest-earning assets. |
|-----|------------------------------------------------------------------------------------------------------|

----

----

|                                      |   | Six Months Ended December 31, 2010Compared to Six MonthsEnded December 31, 2009 |    |
|-------------------------------------------|--------|---------------------------------------------------------------------------------|---------|
| Interest-earning assets:                  |   | Volume                                                                          |    |   | Rate |   |   | Netchange |   |
|  Loans                               |   | $                                                                               | 167,000 |   |   | $ | (32,000 | ) |   | $ | 135,000 |   |
| Investment securities                     |   |                                                                            | 13,000  |   |   |   | (13,000 | ) |   |   | - |   |
| Federal Home Loan Bank stock              |   |                                                                            | -       |   |   |   | - |   |   |   | - |   |
| Interest-earning deposits                 |   |                                                                            | (21,000 | ) |   |   | (31,000 | ) |   |   | (52,000 | ) |
| Total interest-earning assets             |   | $                                                                               | 159,000 |   |   | $ | (76,000 | ) |   | $ | 83,000 |   |
| Interest-bearing liabilities:             |   |                                                                            |    |   |   |   |   |   |   |   |   |   |
| Savings deposits                          |   | $                                                                               | 3,000   |   |   | $ | (4,000 | ) |   | $ | (1,000 | ) |
| NOW accounts                              |   |                                                                            | 1,000   |   |   |   | (3,000 | ) |   |   | (2,000 | ) |
| Money market accounts                     |   |                                                                            | 8,000   |   |   |   | (44,000 | ) |   |   | (36,000 | ) |
| Certificates of deposit                   |   |                                                                            | 45,000  |   |   |   | (71,000 | ) |   |   | (26,000 | ) |
| Total deposits                            |   |                                                                            | 57,000  |   |   |   | (122,000 | ) |   |   | (65,000 | ) |
| Federal Home Loan Bank of Boston advances |   |                                                                            | (23,000 | ) |   |   | (46,000 | ) |   |   | (69,000 | ) |
| Total interest-bearing liabilities        |   | $                                                                               | 34,000  |   |   | $ | (168,000 | ) |   | $ | (134,000 | ) |
| Change in net interest income             |   | $                                                                               | 125,000 |   |   | $ | 92,000 |   |   | $ | 217,000 |   |

----

|                                                               |   | For the Six Months Ended December 31, |        |
|--------------------------------------------------------------------|--------|---------------------------------------|-------------|
|                                                               |   | 2010                                  |        |   | 2009 |   |
|                                                               |   | AverageOutstandingBalance             |        |   | Interest |   |   | Yield/Rate |   |   | AverageOutstandingBalance |   |   | Interest |   |   | Yield/Rate |   |
|                                                               |   | (Dollars in Thousands)                |        |
| Interest-earning assets:                                           |   |                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                              |   | $                                     | 70,452      |   |   | $ | 2,121 |   |   |   | 6.02 | % |   | $ | 64,914 |   |   | $ | 1,986 |   |   |   | 6.12 | % |
| Investment securities(1)                                           |   |                                  | 1,786       |   |   |   | 23 |   |   |   | 2.60 | % |   |   | 1,034 |   |   |   | 23 |   |   |   | 4.55 | % |
| Federal Home Loan Bank stock                                       |   |                                  | 1,252       |   |   |   | - |   |   |   | 0.00 | % |   |   | 1,210 |   |   |   | - |   |   |   | 0.00 | % |
| Interest-earning deposits                                          |   |                                  | 2,280       |   |   |   | 5 |   |   |   | 0.41 | % |   |   | 4,930 |   |   |   | 57 |   |   |   | 2.30 | % |
| Total interest-earning assets                                      |   |                                  | 75,770      |   |   | $ | 2,149 |   |   |   | 5.67 | % |   |   | 72,088 |   |   | $ | 2,066 |   |   |   | 5.73 | % |
|  Non-interest-earning assets                                  |   |                                  |  5,074 |   |   |   |   |   |   |   |   |   |   |   | 4,225 |   |   |   |   |   |   |   |   |   |
| Total assets                                                       |   | $                                     | 80,844      |   |   |   |   |   |   |   |   |   |   | $ | 76,313 |   |   |   |   |   |   |   |   |   |
|                                                               |   |                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                      |   |                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings deposits                                                   |   | $                                     | 4,196       |   |   | $ | 14 |   |   |   | 0.65 | % |   | $ | 3,376 |   |   | $ | 15 |   |   |   | 0.88 | % |
| NOW accounts                                                       |   |                                  | 2,765       |   |   |   | 8 |   |   |   | 0.56 | % |   |   | 2,577 |   |   |   | 10 |   |   |   | 0.77 | % |
| Money market accounts                                              |   |                                  | 13,001      |   |   |   | 54 |   |   |   | 0.83 | % |   |   | 11,877 |   |   |   | 90 |   |   |   | 1.52 | % |
| Certificates of deposit                                            |   |                                  | 31,840      |   |   |   | 377 |   |   |   | 2.37 | % |   |   | 28,367 |   |   |   | 402 |   |   |   | 2.83 | % |
| Total interest-bearing deposits                                    |   |                                  | 51,802      |   |   |   | 453 |   |   |   | 1.75 | % |   |   | 46,197 |   |   |   | 517 |   |   |   | 2.24 | % |
| FHLB advances                                                      |   |                                  | 19,191      |   |   |   | 296 |   |   |   | 3.09 | % |   |   | 20,565 |   |   |   | 366 |   |   |   | 3.56 | % |
| Total interest-bearing liabilities                                 |   | $                                     | 70,993      |   |   | $ | 749 |   |   |   | 2.11 | % |   | $ | 66,762 |   |   | $ | 883 |   |   |   | 2.65 | % |
|                                                               |   |                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing liabilities:                                  |   |                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                    |   | $                                     | 3,406       |   |   |   |   |   |   |   |   |   |   | $ | 3,366 |   |   |   |   |   |   |   |   |   |
| Other non-interest-bearing                                         |   |                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| liabilities                                                        |   |                                  | 235         |   |   |   |   |   |   |   |   |   |   |   | 193 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                  |   |                                  | 74,634      |   |   |   |   |   |   |   |   |   |   |   | 70,321 |   |   |   |   |   |   |   |   |   |
| Total capital                                                      |   |                                  | 6,210       |   |   |   |   |   |   |   |   |   |   |   | 5,992 |   |   |   |   |   |   |   |   |   |
| Total liabilities and capital                                      |   | $                                     | 80,844      |   |   |   |   |   |   |   |   |   |   | $ | 76,313 |   |   |   |   |   |   |   |   |   |
|                                                               |   |                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                |   |                                  |        |   |   | $ | 1,400 |   |   |   |   |   |   |   |   |   |   | $ | 1,183 |   |   |   |   |   |
| Net interest rate spread(2)                                        |   |                                  |        |   |   |   |   |   |   |   | 3.56 | % |   |   |   |   |   |   |   |   |   |   | 3.09 | % |
| Net interest-earning assets(3)                                     |   | $                                     | 4,777       |   |   |   |   |   |   |   |   |   |   | $ | 5,326 |   |   |   |   |   |   |   |   |   |
| Net interest margin(4)                                             |   |                                  |        |   |   |   |   |   |   |   | 3.70 | % |   |   |   |   |   |   |   |   |   |   | 3.28 | % |
| Average of interest-earning assets to interest-bearing liabilities |   |                                  | 106.73      | % |   |   |   |   |   |   |   |   |   |   | 107.98 | % |   |   |   |   |   |   |   |   |

----

| (1) | Consists of taxable investment securities and one municipal bond.  The municipal bond is presented on a fully taxable basis as the tax equivalent adjustment is not material to the yield. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (4) | Net interest margin represents net interest income divided by average total interest-earning assets. |
|-----|------------------------------------------------------------------------------------------------------|

----

----

|   |                                                |   | Actual         |   |   | MinimumCapitalRequirement |   |   | MinimumTo Be WellCapitalized UnderPrompt CorrectiveAction Provisions |   |
|--------|-----------------------------------------------------|--------|----------------|--------|--------|---------------------------|--------|--------|----------------------------------------------------------------------|--------|
|   |                                                |   | Amount         |   |   | Ratio                     |   |   | Amount                                                               |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|   |                                                |   | (In Thousands) |   |
|   | December 31, 2010                                   |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |
|   | Total capital to risk weighted assets               |   | $              | 6,191  |   |                      |   | 11.60  | %                                                                    |   | $ | 4,270 |   |   |   | 8.00 | % |   | $ | 5,338 |   |   |   | 10.00 | % |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Tier 1 risked-based capital to risk weighted assets |   | $              | 5,547  |   |                      |   | 10.39  | %                                                                    |   | $ | 2,135 |   |   |   | 4.00 | % |   | $ | 3,203 |   |   |   | 6.00 | % |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Tier 1 capital to total assets                      |   | $              | 5,965  |   |                      |   | 7.41   | %                                                                    |   | $ | 3,220 |   |   |   | 4.00 | % |   | $ | 4,025 |   |   |   | 5.00 | % |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | June 30, 2010                                       |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total capital to risk weighted assets               |   | $              | 5,933  |   |                      |   | 11.67  | %                                                                    |   | $ | 4,069 |   |   |   | 8.00 | % |   | $ | 5,086 |   |   |   | 10.00 | % |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Tier 1 risked-based capital to risk weighted assets |   | $              | 5,483  |   |                      |   | 10.78  | %                                                                    |   | $ | 2,034 |   |   |   | 4.00 | % |   | $ | 3,052 |   |   |   | 6.00 | % |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Tier 1 capital to total assets                      |   | $              | 5,838  |   |                      |   | 7.24   | %                                                                    |   | $ | 3,224 |   |   |   | 4.00 | % |   | $ | 4,031 |   |   |   | 5.00 | % |

|   |                                                |   | Actual         |   |   | MinimumCapitalRequirement |   |   | MinimumTo Be WellCapitalized UnderPrompt CorrectiveAction Provisions |   |
|--------|-----------------------------------------------------|--------|----------------|--------|--------|---------------------------|--------|--------|----------------------------------------------------------------------|--------|
|   |                                                |   | Amount         |   |   | Ratio                     |   |   | Amount                                                               |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|   |                                                |   | (In Thousands) |   |
|   | December 31, 2010                                   |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total capital to risk weighted assets               |   | $              | 6,363  |   |                      |   | 11.92  | %                                                                    |   | $ | 4,270 |   |   |   | 8.00 | % |   | $ | 5,338 |   |   |   | 10.00 | % |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Tier 1 risked-based capital to risk weighted assets |   | $              | 5,719  |   |                      |   | 10.71  | %                                                                    |   | $ | 2,135 |   |   |   | 4.00 | % |   | $ | 3,203 |   |   |   | 6.00 | % |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Tier 1 capital to total assets                      |   | $              | 6,137  |   |                      |   | 7.62   | %                                                                    |   | $ | 3,220 |   |   |   | 4.00 | % |   | $ | 4,025 |   |   |   | 5.00 | % |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | June 30, 2010                                       |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total capital to risk weighted assets               |   | $              | 5,933  |   |                      |   | 11.67  | %                                                                    |   | $ | 4,069 |   |   |   | 8.00 | % |   | $ | 5,086 |   |   |   | 10.00 | % |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Tier 1 risked-based capital to risk weighted assets |   | $              | 5,483  |   |                      |   | 10.78  | %                                                                    |   | $ | 2,034 |   |   |   | 4.00 | % |   | $ | 3,052 |   |   |   | 6.00 | % |
|   |                                                |   |           |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Tier 1 capital to total assets                      |   | $              | 5,838  |   |                      |   | 7.24   | %                                                                    |   | $ | 3,224 |   |   |   | 4.00 | % |   | $ | 4,031 |   |   |   | 5.00 | % |

----

| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|---------|------------------------------------------------------------|

| ITEM 4. | CONTROLS AND PROCEDURES |
|---------|-------------------------|

| ITEM 1. | LEGAL PROCEEDINGS |
|---------|-------------------|

| ITEM 1A. | RISK FACTORS |
|----------|--------------|

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

| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
|---------|---------------------------------|

| ITEM 4. | [REMOVED AND RESERVED] |
|---------|------------------------|

----

| ITEM 5. | OTHER INFORMATION |
|---------|-------------------|

|   | (a) | None. |
|--------|-----|-------|

|   | (b) | There were no material changes to the procedures by which security holders may recommend nominees to the Company’s board of directors during the period covered by the Form 10Q. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 6. | EXHIBITS |
|---------|----------|

| ExhibitNumber |   | Exhibit Description                                                                                                                       |
|---------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                      |
| 2.1           |   | Plan of Reorganization from Mutual Savings Bank to Mutual Holding Company and Stock Issuance Plan **                                      |
|          |   |                                                                                                                                      |
| 3.1           |   | Charter of Auburn Bancorp, Inc. **                                                                                                        |
|          |   |                                                                                                                                      |
| 3.2           |   | Bylaws of Auburn Bancorp, Inc. **                                                                                                         |
|          |   |                                                                                                                                      |
| 4.1           |   | Stock Certificate of Auburn Bancorp, Inc. **                                                                                         |
|          |   |                                                                                                                                      |
| 10.1          |   | Form of Auburn Savings Bank Employee Stock Ownership Plan and Trust **                                                                    |
|          |   |                                                                                                                                      |
| 10.2          |   | Form of ESOP Loan Commitment Letter and ESOP Loan Documents **                                                                            |
|          |   |                                                                                                                                      |
| 10.3          |   | Form of Employment Agreement between Auburn Savings Bank and Allen T. Sterling **                                                         |
|          |   |                                                                                                                                      |
| 31.1          |   | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of the Company                                                          |
|          |   |                                                                                                                                      |
| 31.2          |   | Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer of the Company                                                      |
|          |   |                                                                                                                                      |
| 32.1          |   | Section 1350 Certification of Chief Executive Officer of the Company in accordance with Section 906 of the Sarbanes-Oxley Act of 2002     |
|          |   |                                                                                                                                      |
| 32.2          |   | Section 1350 Certification of Principal Financial Officer of the Company in accordance with Section 906 of the Sarbanes-Oxley Act of 2002 |
|          |   |                                                                                                                                      |

| ** | Incorporated by reference into this document from the Exhibits filed with the Securities and Exchange Commission on the Company’s Registration Statement on Form S-1, as amended, initially filed on March 14, 2008 and declared effective on May 13, 2008 (File Number 333-149723). |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                              |   |   | Auburn Bancorp, Inc.                                                            |
|-----------------------------------|--------|--------|---------------------------------------------------------------------------------|
|                              |   |   | (Registrant)                                                                    |
|                              |   |   |                                                                            |
| Date:  February 8, 2011 |   | By:    | /s/  Allen T. Sterling                                                |
|                              |   |   | Allen T. Sterling                                                               |
|                              |   |   | President and Chief Executive Officer(Principal Executive Officer)              |
|                              |   |   |                                                                            |
| Date:  February 8, 2011 |   | By:    | /s/  Rachel A. Haines                                                 |
|                              |   |   | Rachel A. Haines                                                                |
|                              |   |   | Senior Vice President and Treasurer(Principal Accounting and Financial Officer) |

----