----

----

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

|  ̈ | 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, 2008 (Unaudited) and June 30,      2008                                                | 3      |
|                                                |                                                                                                                                       |   |
|                                                | Consolidated      Statements of Operations (Unaudited) for the Three Months Ended December      31, 2008 and 2007                          | 4      |
|                                                |                                                                                                                                       |   |
|                                                | Consolidated      Statements of Operations (Unaudited) for the Six Months Ended December 31,      2008 and 2007                            | 5      |
|                                                |                                                                                                                                       |   |
|                                                | Consolidated      Statements of Changes in Stockholders’ Equity (Unaudited) for the Six      Months Ended December 31, 2008 and 2007 | 6      |
|                                                |                                                                                                                                       |   |
|                                                | Consolidated      Statements of Cash Flows (Unaudited) for the Six Months Ended December 31,      2008 and 2007                            | 7      |
|                                                |                                                                                                                                       |   |
|                                                | Notes      to Consolidated Financial Statements (Unaudited)                                                                                | 8      |
|                                                |                                                                                                                                       |   |
| Item      2.                                        | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                      | 12     |
|                                                |                                                                                                                                       |   |
| Item      3.                                        | quantitative      and qualitative disclosures about market risk                                                                            | 21     |
|                                                |                                                                                                                                       |   |
| Item      4.                                        | Controls      and Procedures                                                                                                               | 21     |
| PART      II. OTHER INFORMATION                     |
| Item      1.                                        | Legal      Proceedings                                                                                                                     | 21     |
|                                                |                                                                                                                                       |   |
| Item      2.                                        | Unregistered      Sales of Equity Securities and Use of Proceeds                                                                           | 21     |
|                                                |                                                                                                                                       |   |
| Item      3.                                        | Defaults      Upon Senior Securities                                                                                                       | 21     |
|                                                |                                                                                                                                       |   |
| Item      4.                                        | Submission      of Matters to a Vote of Security Holders                                                                                   | 22     |
|                                                |                                                                                                                                       |   |
| Item      5.                                        | Other      Information                                                                                                                     | 22     |
|                                                |                                                                                                                                       |   |
| Item      6.                                        | Exhibits                                                                                                                                   | 23     |
|                                                |                                                                                                                                       |   |
|                                                | Signatures                                                                                                                                 | 24     |

----

| ITEM      1. | FINANCIAL      STATEMENTS |
|--------------|---------------------------|

|                                                         |   | December      31, |       |   | June      30, |   |
|--------------------------------------------------------------|--------|-------------------|------------|--------|---------------|--------|
|                                                         |   | 2008              |       |   | 2008          |   |
|                                                         |   | (Unaudited)       |       |   | (Audited)     |   |
|                                                         |   |              |       |   |          |   |
| Cash      and due from banks                                 |   | $                 | 1,047,342  |   |          | $      | 1,782,970 |   |
| Interest-earning      deposits                               |   |              | 242,819    |   |          |   | 229,517 |   |
| Total      cash and cash equivalents                         |   |              | 1,290,161  |   |          |   | 2,012,487 |   |
|                                                         |   |              |       |   |          |   |   |   |
| Certificates      of deposit                                 |   |              | 6,017,854  |   |          |   | 2,257,504 |   |
|                                                         |   |              |       |   |          |   |   |   |
| Investment      securities available for sale, at fair value |   |              | 1,301,803  |   |          |   | 1,433,732 |   |
|                                                         |   |              |       |   |          |   |   |   |
| Federal      Home Loan Bank stock, at cost                   |   |              | 954,200    |   |          |   | 901,100 |   |
|                                                         |   |              |       |   |          |   |   |   |
| Loans      held for sale                                     |   |              | 230,274    |   |          |   | — |   |
|                                                         |   |              |       |   |          |   |   |   |
| Loans                                                        |   |              | 59,957,198 |   |          |   | 57,021,649 |   |
| Less      allowance for loan losses                          |   |              | (373,418   | )      |          |   | (345,550 | ) |
| Net      loans                                               |   |              | 59,583,780 |   |          |   | 56,676,099 |   |
|                                                         |   |              |       |   |          |   |   |   |
| Property      and equipment, net                             |   |              | 1,950,604  |   |          |   | 1,945,233 |   |
|                                                         |   |              |       |   |          |   |   |   |
| Foreclosed      real estate                                  |   |              | 309,240    |   |          |   | 87,383 |   |
| Accrued      interest receivable:                            |   |              |       |   |          |   |   |   |
| Investments                                                  |   |              | 27,048     |   |          |   | 23,725 |   |
| Mortgage-backed      securities                              |   |              | 1,756      |   |          |   | 2,034 |   |
| Loans                                                        |   |              | 237,618    |   |          |   | 249,547 |   |
| Prepaid      expenses and other assets                       |   |              | 176,257    |   |          |   | 710,448 |   |
|                                                         |   |              |       |   |          |   |   |   |
| Total      assets                                            |   | $                 | 72,080,595 |   |          | $      | 66,299,292 |   |

| Liabilities:                                                                                                                                                           |   |   |       |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Deposits                                                                                                                                                               |   | $      | 48,429,414 |   |   | $      | 46,073,155 |   |
| Federal      Home Loan Bank advances                                                                                                                                   |   |   | 17,650,000 |   |   |   | 15,350,000 |   |
| Accrued      interest and other liabilities                                                                                                                            |   |   | 126,067    |   |   |   | 269,752 |   |
| Deferred      income taxes                                                                                                                                             |   |   | 74,844     |   |   |   | 88,786 |   |
| Total      liabilities                                                                                                                                                 |   |   | 66,280,325 |   |   |   | 61,781,693 |   |
|                                                                                                                                                                   |   |   |       |   |   |   |   |   |
| 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, 2008, none at June 30,      2008 |   |   | 5,033      |   |   |   | — |   |
| Additional      paid-in-capital                                                                                                                                        |   |   | 1,471,203  |   |   |   | — |   |
| Retained      earnings                                                                                                                                                 |   |   | 4,552,800  |   |   |   | 4,566,433 |   |
| Accumulated      other comprehensive loss                                                                                                                              |   |   | (60,469    | )      |   |   | (48,834 | ) |
| Unearned      compensation (ESOP shares)                                                                                                                               |   |   | (168,297   | )      |   |   | — |   |
| Total      stockholders’ equity                                                                                                                                  |   |   | 5,800,270  |   |   |   | 4,517,599 |   |
|                                                                                                                                                                   |   |   |       |   |   |   |   |   |
| Total      liabilities and stockholders’ equity                                                                                                                  |   | $      | 72,080,595 |   |   | $      | 66,299,292 |   |

----

|                                                                      |   | Three Months Ended December    31, |      |
|---------------------------------------------------------------------------|--------|------------------------------------|-----------|
|                                                                      |   | 2008                               |      |   | 2007 |   |
|                                                                      |   | (Unaudited)                        |      |
| Interest      and dividend income:                                        |   |                               |      |   |   |   |
| Interest      on loans                                                    |   | $                                  | 944,052   |   |   | $ | 934,431 |   |
| Interest      on investments and other interest-earning deposits          |   |                               | 62,714    |   |   |   | 66,317 |   |
| Dividends      on Federal Home Loan Bank stock                            |   |                               | 5,663     |   |   |   | 14,763 |   |
| Total      interest and dividend income                                   |   |                               | 1,012,429 |   |   |   | 1,015,511 |   |
|                                                                      |   |                               |      |   |   |   |   |   |
| Interest      expense:                                                    |   |                               |      |   |   |   |   |   |
| Interest      on deposits and escrow accounts                             |   |                               | 353,983   |   |   |   | 431,111 |   |
| Interest      on Federal Home Loan Bank advances                          |   |                               | 184,763   |   |   |   | 179,682 |   |
| Total      interest expense                                               |   |                               | 538,746   |   |   |   | 610,793 |   |
|                                                                      |   |                               |      |   |   |   |   |   |
| Net      interest income                                                  |   |                               | 473,683   |   |   |   | 404,718 |   |
|                                                                      |   |                               |      |   |   |   |   |   |
| Provision      for (recovery of) loan losses                              |   |                               | 28,029    |   |   |   | (4,512 | ) |
|                                                                      |   |                               |      |   |   |   |   |   |
| Net      interest income after provision for (recovery of) loan    losses |   |                               | 445,654   |   |   |   | 409,230 |   |
|                                                                      |   |                               |      |   |   |   |   |   |
| Non-interest      income:                                                 |   |                               |      |   |   |   |   |   |
| Net      gain on sales of loans                                           |   |                               | 2,389     |   |   |   | 4,681 |   |
| Other      non-interest income                                            |   |                               | 29,123    |   |   |   | 36,052 |   |
| Total      non-interest income                                            |   |                               | 31,512    |   |   |   | 40,733 |   |
|                                                                      |   |                               |      |   |   |   |   |   |
| Non-interest      expenses:                                               |   |                               |      |   |   |   |   |   |
| Salaries      and employee benefits                                       |   |                               | 232,806   |   |   |   | 219,666 |   |
| Occupancy      expense                                                    |   |                               | 31,472    |   |   |   | 25,364 |   |
| Depreciation                                                              |   |                               | 25,882    |   |   |   | 25,110 |   |
| Federal      insurance premiums                                           |   |                               | 7,110     |   |   |   | 1,286 |   |
| Computer      charges                                                     |   |                               | 38,071    |   |   |   | 36,017 |   |
| Advertising      expense                                                  |   |                               | 11,363    |   |   |   | 12,170 |   |
| Consulting      expense                                                   |   |                               | 10,822    |   |   |   | 9,909 |   |
| Other      operating expenses                                             |   |                               | 142,169   |   |   |   | 52,183 |   |
| Total      non-interest expenses                                          |   |                               | 499,695   |   |   |   | 381,705 |   |
|                                                                      |   |                               |      |   |   |   |   |   |
| Income      (loss) before income taxes                                    |   |                               | (22,529   | ) |   |   | 68,258 |   |
|                                                                      |   |                               |      |   |   |   |   |   |
| Income      tax expense (benefit)                                         |   |                               | (4,600    | ) |   |   | 20,300 |   |
|                                                                      |   |                               |      |   |   |   |   |   |
| Net      income (loss)                                                    |   | $                                  | (17,929   | ) |   | $ | 47,958 |   |
|                                                                      |   |                               |      |   |   |   |   |   |
| Net      income (loss) per common share                                   |   | $                                  | (.04      | ) |   |   | N/A |   |

----

|                                                                      |   | Six Months Ended December    31, |      |
|---------------------------------------------------------------------------|--------|----------------------------------|-----------|
|                                                                      |   | 2008                             |      |   | 2007 |   |
|                                                                      |   | (Unaudited)                      |      |
|                                                                      |   |                             |      |   |   |   |
| Interest      and dividend income:                                        |   |                             |      |   |   |   |
| Interest      on loans                                                    |   | $                                | 1,919,975 |   |   | $ | 1,860,600 |   |
| Interest      on investments and other interest-earning deposits          |   |                             | 111,206   |   |   |   | 132,829 |   |
| Dividends      on Federal Home Loan Bank stock                            |   |                             | 12,496    |   |   |   | 29,366 |   |
| Total      interest and dividend income                                   |   |                             | 2,043,677 |   |   |   | 2,022,795 |   |
|                                                                      |   |                             |      |   |   |   |   |   |
| Interest      expense:                                                    |   |                             |      |   |   |   |   |   |
| Interest      on deposits and escrow accounts                             |   |                             | 703,947   |   |   |   | 867,358 |   |
| Interest      on Federal Home Loan Bank advances                          |   |                             | 375,800   |   |   |   | 355,248 |   |
| Total      interest expense                                               |   |                             | 1,079,747 |   |   |   | 1,222,606 |   |
|                                                                      |   |                             |      |   |   |   |   |   |
| Net      interest income                                                  |   |                             | 963,930   |   |   |   | 800,189 |   |
|                                                                      |   |                             |      |   |   |   |   |   |
| Provision      for (recovery of) loan losses                              |   |                             | 46,603    |   |   |   | (7,024 | ) |
|                                                                      |   |                             |      |   |   |   |   |   |
| Net      interest income after provision for (recovery of) loan    losses |   |                             | 917,327   |   |   |   | 807,213 |   |
|                                                                      |   |                             |      |   |   |   |   |   |
| Non-interest      income:                                                 |   |                             |      |   |   |   |   |   |
| Net      gain on sales of loans                                           |   |                             | 4,844     |   |   |   | 9,325 |   |
| Other      non-interest income                                            |   |                             | 49,070    |   |   |   | 67,644 |   |
| Total      non-interest income                                            |   |                             | 53,914    |   |   |   | 76,969 |   |
|                                                                      |   |                             |      |   |   |   |   |   |
| Non-interest      expenses:                                               |   |                             |      |   |   |   |   |   |
| Salaries      and employee benefits                                       |   |                             | 445,783   |   |   |   | 429,715 |   |
| Occupancy      expense                                                    |   |                             | 60,118    |   |   |   | 52,066 |   |
| Depreciation                                                              |   |                             | 50,913    |   |   |   | 51,931 |   |
| Federal      insurance premiums                                           |   |                             | 10,497    |   |   |   | 2,559 |   |
| Computer      charges                                                     |   |                             | 79,480    |   |   |   | 73,319 |   |
| Advertising      expense                                                  |   |                             | 20,382    |   |   |   | 23,225 |   |
| Consulting      expense                                                   |   |                             | 20,472    |   |   |   | 18,975 |   |
| Impairment      write-down on investment securities available for sale    |   |                             | 60,270    |   |   |   | — |   |
| Other      operating expenses                                             |   |                             | 207,591   |   |   |   | 112,899 |   |
| Total      non-interest expenses                                          |   |                             | 955,506   |   |   |   | 764,689 |   |
|                                                                      |   |                             |      |   |   |   |   |   |
| Income      before income taxes                                           |   |                             | 15,735    |   |   |   | 119,493 |   |
|                                                                      |   |                             |      |   |   |   |   |   |
| Income      tax expense                                                   |   |                             | 26,600    |   |   |   | 35,700 |   |
|                                                                      |   |                             |      |   |   |   |   |   |
| Net      income (loss)                                                    |   | $                                | (10,865   | ) |   | $ | 83,793 |   |
|                                                                      |   |                             |      |   |   |   |   |   |
| Net      income (loss) per common share                                   |   | $                                | (.03      | ) |   |   | N/A |   |

----

|                                                                                                 |   | Common      Stock |   |   | Additional      Paid-in-Capital |   |      | RetainedEarnings |   |   | AccumulatedOtherComprehensiveLoss |   |   | Unearned      Compensation (ESOPShares) |    |   | Total  |   |
|------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|---------------------------------|--------|-----------|------------------|--------|--------|-----------------------------------|--------|--------|-----------------------------------------|---------|--------|--------|--------|
|                                                                                                 |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |
| Balance,      June 30, 2007                                                                          |   | $                 | -      |   |                            | $      | -         |             |   | $      | 4,362,193                         |   |   | $                                       | (12,392 | )      |   | $      | - |   |   | $ | 4,349,801 |   |
|                                                                                                 |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Comprehensive      income                                                                            |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                      |   |              | -      |   |                            |   | -         |             |   |   | 83,793                            |   |   |                                    | -       |   |   |   | - |   |   |   | 83,793 |   |
| Other      comprehensive loss                                                                        |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Unrealized      holding loss on securities, net of taxes of $(3,034)                                 |   |              | -      |   |                            |   | -         |             |   |   | -                                 |   |   |                                    | (5,890  | )      |   |   | - |   |   |   | (5,890 | ) |
|                                                                                                 |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Total      comprehensive income                                                                      |   |              | -      |   |                            |   | -         |             |   |   | 83,793                            |   |   |                                    | (5,890  | )      |   |   | - |   |   |   | 77,903 |   |
|                                                                                                 |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Effect      of adoption of SFAS No. 156, net of tax effect of $17,812                                |   |              | -      |   |                            |   | -         |             |   |   | 53,441                            |   |   |                                    | -       |   |   |   | - |   |   |   | 53,441 |   |
|                                                                                                 |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2007                                                                      |   | $                 | -      |   |                            | $      | -         |             |   | $      | 4,499,427                         |   |   |                                    | (18,282 | )      |   |   | - |   |   | $ | 4,481,145 |   |
|                                                                                                 |   |              |   |   |                            |   |      |             |   |   |                              |   |   | $                                       |    |   |   |   |   |   |   | $ |   |   |
|                                                                                                 |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Balance,      June 30, 2008                                                                          |   | $                 | -      |   |                            | $      | -         |             |   | $      | 4,566,433                         |   |   | $                                       | (48,834 | )      |   | $      | - |   |   | $ | 4,517,599 |   |
|                                                                                                 |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Comprehensive      loss                                                                              |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Net  loss                                                                                  |   |              | -      |   |                            |   | -         |             |   |   | (10,865                           | )      |   |                                    | -       |   |   |   | - |   |   |   | (10,865 | ) |
| Other      comprehensive loss                                                                        |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Unrealized      holding loss on securities, net of taxes of $(26,485)                                |   |              | -      |   |                            |   | -         |             |   |   | -                                 |   |   |                                    | (51,413 | )      |   |   | - |   |   |   | (51,413 | ) |
| Less      reclassification adjustment for items included in net income, net of taxes      of $20,492 |   |              | -      |   |                            |   | -         |             |   |   | -                                 |   |   |                                    | 39,778  |   |   |   | - |   |   |   | 39,778 |   |
|                                                                                                 |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Total      comprehensive loss                                                                        |   |              | -      |   |                            |   | -         |             |   |   | (10,865                           | )      |   |                                    | (11,635 | )      |   |   | - |   |   |   | (22,500 | ) |
|                                                                                                 |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Shares      issued in public offering, net of offering costs of $766,504 (226,478      shares)       |   |              | 2,265  |   |                            |   | 1,496,011 |             |   |   | -                                 |   |   |                                    | -       |   |   |   | - |   |   |   | 1,498,276 |   |
| Shares      issued to MHC (276,806 shares)                                                           |   |              | 2,768  |   |                            |   | -         |             |   |   | (2,768                            | )      |   |                                    | -       |   |   |   | - |   |   |   | - |   |
| Capitalization      of MHC                                                                           |   |              | -      |   |                            |   | (25,000   | )                |   |   | -                                 |   |   |                                    | -       |   |   |   | - |   |   |   | (25,000 | ) |
| Shares      purchased by ESOP (17,262 shares)                                                        |   |              | -      |   |                            |   | -         |             |   |   | -                                 |   |   |                                    | -       |   |   |   | (172,620 | ) |   |   | (172,620 | ) |
| Common      stock held by ESOP committed to be released  (432      shares)                 |   |              | -      |   |                            |   | 192       |             |   |   | -                                 |   |   |                                    | -       |   |   |   | 4,323 |   |   |   | 4,515 |   |
|                                                                                                 |   |              |   |   |                            |   |      |             |   |   |                              |   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2008                                                                      |   | $                 | 5,033  |   |                            | $      | 1,471,203 |             |   | $      | 4,552,800                         |   |   | $                                       | (60,469 | )      |   | $      | (168,297 | ) |   | $ | 5,800,270 |   |

----

|                                                                                                  |   | Six      Months EndedDecember      31, |       |
|-------------------------------------------------------------------------------------------------------|--------|----------------------------------------|------------|
|                                                                                                  |   | 2008                                   |       |   | 2007 |   |
| Cash      flows from operating activities                                                             |   |                                   |       |   |   |   |
| Net      income (loss)                                                                                |   | $                                      | (10,865    | ) |   | $ | 83,793 |   |
| Adjustments      to reconcile net income (loss) to net cash provided by operating      activities:    |   |                                   |       |   |   |   |   |   |
| Depreciation                                                                                          |   |                                   | 50,913     |   |   |   | 51,931 |   |
| Net      accretion of discounts on investment securities available for      sale                      |   |                                   | (8,139     | ) |   |   | (76 | ) |
| Provision      for (recovery of) loan losses                                                          |   |                                   | 46,603     |   |   |   | (7,024 | ) |
| Loss      on disposal of property and equipment                                                       |   |                                   | 615        |   |   |   | - |   |
| Deferred      income tax benefit                                                                      |   |                                   | (7,949     | ) |   |   | (61,706 | ) |
| Other-than-temporary      impairment on investment securities available for sale                      |   |                                   | 60,270     |   |   |   | - |   |
| Gain      on sales of loans                                                                           |   |                                   | (4,844     | ) |   |   | (9,325 | ) |
| ESOP      compensation expense                                                                        |   |                                   | 4,515      |   |   |   | - |   |
| Increase      in loans held for sale                                                                  |   |                                   | (230,274   | ) |   |   | - |   |
| Net      decrease (increase) in prepaid expenses and other assets                                     |   |                                   | 564,685    |   |   |   | (167,201 | ) |
| Net      decrease in accrued interest receivable                                                      |   |                                   | 8,884      |   |   |   | 2,207 |   |
| Net      increase (decrease) in accrued interest payable and other      liabilities                   |   |                                   | (143,685   | ) |   |   | 125,299 |   |
|                                                                                                  |   |                                   |       |   |   |   |   |   |
| Net      cash provided by operating activities                                                        |   |                                   | 330,729    |   |   |   | 17,898 |   |
|                                                                                                  |   |                                   |       |   |   |   |   |   |
| Cash      flows from investing activities:                                                            |   |                                   |       |   |   |   |   |   |
| Purchase      of investment securities available for sale                                             |   |                                   | (250,000   | ) |   |   | (576,519 | ) |
| Proceeds      from maturities and principal paydowns on investment securities available      for sale |   |                                   | 312,170    |   |   |   | 1,225,574 |   |
| Net      change in certificates of deposit                                                            |   |                                   | (3,760,350 | ) |   |   | (1,371,150 | ) |
| Net      increase in loans to customers                                                               |   |                                   | (3,201,791 | ) |   |   | (1,693,170 | ) |
| Purchase      of Federal Home Loan Bank stock                                                         |   |                                   | (53,100    | ) |   |   | - |   |
| Capital      expenditures                                                                             |   |                                   | (56,899    | ) |   |   | (19,611 | ) |
|                                                                                                  |   |                                   |       |   |   |   |   |   |
| Net      cash used in investing activities                                                            |   |                                   | (7,009,970 | ) |   |   | (2,434,876 | ) |
|                                                                                                  |   |                                   |       |   |   |   |   |   |
| Cash      flows from financing activities:                                                            |   |                                   |       |   |   |   |   |   |
| Advances      from Federal Home Loan Bank                                                             |   |                                   | 500,000    |   |   |   | 1,521,000 |   |
| Repayment      of advances from Federal Home Loan Bank                                                |   |                                   | (1,000,000 | ) |   |   | (771,000 | ) |
| Net      change in short term borrowings                                                              |   |                                   | 2,800,000  |   |   |   | - |   |
| Net      increase in deposits                                                                         |   |                                   | 2,356,259  |   |   |   | 111,840 |   |
| Proceeds      from issuance of common stock, net of offering costs                                    |   |                                   | 1,498,276  |   |   |   | - |   |
| Capitalization      of MHC                                                                            |   |                                   | (25,000    | ) |   |   | - |   |
| Cash      provided to ESOP for purchases of shares                                                    |   |                                   | (172,620   | ) |   |   | - |   |
|                                                                                                  |   |                                   |       |   |   |   |   |   |
| Net      cash provided by financing activities                                                        |   |                                   | 5,956,915  |   |   |   | 861,840 |   |
|                                                                                                  |   |                                   |       |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                                                        |   |                                   | (722,326   | ) |   |   | (1,555,138 | ) |
|                                                                                                  |   |                                   |       |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period                                                   |   |                                   | 2,012,487  |   |   |   | 3,413,330 |   |
|                                                                                                  |   |                                   |       |   |   |   |   |   |
| Cash      and cash equivalents, end of period                                                         |   | $                                      | 1,290,161  |   |   | $ | 1,858,192 |   |
|                                                                                                  |   |                                   |       |   |   |   |   |   |
| Supplementary      cash flow information:                                                             |   |                                   |       |   |   |   |   |   |
| Cash      paid during the period for:                                                                 |   |                                   |       |   |   |   |   |   |
| Interest                                                                                              |   | $                                      | 1,078,939  |   |   | $ | 1,227,932 |   |
| Taxes                                                                                                 |   | $                                      | 97,240     |   |   | $ | 10,000 |   |
| Transfer      of loans to foreclosed real estate                                                      |   | $                                      | 221,857    |   |   | $ | - |   |

----

| 1.     | Basis of      Presentation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | The      financial information included herein presents the financial condition and      results of operations for Auburn Bancorp, Inc. and its wholly-owned      subsidiary, Auburn Savings Bank, FSB as of December 30, 2008, and for the      interim periods ended December 31, 2008 and 2007.  The financial      information is unaudited; however, in the opinion of management, the      information reflects all adjustments, consisting of normal recurring      adjustments that are necessary to make the financial statements not      misleading for a fair presentation. The results shown for the six months      ended December 30, 2008 and 2007 are not necessarily indicative of the      results to be obtained for a full year. The accompanying consolidated      financial statements have been prepared in conformity with U.S. generally      accepted accounting principles (“GAAP”) and with the rules and regulations      of the Securities and Exchange Commission for interim financial reporting.      Accordingly they do not include all of the information and footnotes      required for complete financial statements. These interim financial      statements should be read in conjunction with the audited financial      statements for the year ended June 30, 2008 included in the Company’s      annual report on Form 10-K (File No. 000-53370).                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Since      the reorganization discussed in Note 2 was effective on August 15, 2008,      the June 30, 2008 financial statements do not include the holding company,      Auburn Bancorp, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | In      preparing financial statements in conformity with accounting principles      generally accepted in the United States of America, management is required      to make estimates and assumptions that affect the reported amounts of      assets and liabilities as of the date of the balance sheet and reported      amounts of revenues and expenses during the reporting period.  Actual      results could differ from those estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Material      estimates that are particularly susceptible to significant change in the      near term relate to the determination of the allowance for loan losses and      valuation of foreclosed real estate. In connection with the determination      of these estimates,   management obtains independent      appraisals for significant properties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 2.     | Reorganization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | On      January 11, 2008, the Board of Directors of Auburn Savings Bank (the      “Bank”) adopted a Plan of Reorganization From a Mutual Savings Bank to a      Mutual Holding Company and Stock Issuance Plan (the “Plan”) under which      Auburn Savings Bank reorganized into a mutual holding company structure.      As part of the reorganization, Auburn Savings Bank converted to a federal      stock savings bank and became a wholly-owned subsidiary of Auburn Bancorp,      Inc. (the “Company”), and the Company became a majority-owned subsidiary      of Auburn Mutual Holding Company (the “MHC”). In addition, the Company      conducted a stock offering pursuant to the laws of the United States of      America and the rules and regulations of the Office of Thrift Supervision      (“OTS”). Following completion of the reorganization and stock offering,      the MHC owns 55.0% of the outstanding common stock of the Company and the      minority public shareholders own 45.0%.  Shares of the Company’s      common stock were offered on a first priority basis in a subscription      offering to eligible account holders, tax-qualified employee plans, and      other members. Shares remaining after the conclusion of the subscription      offering were offered for sale in a community offering. So long as the MHC      is in existence, the MHC will be required to own at least a majority of      the voting stock of the Company. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Net      proceeds of $1.5 million were raised in the stock offering, after      deduction of expenses of $766,000 and excluding $25,000 used to capitalize      the MHC and $173,000 which was loaned by the Company to a trust for the      Employee Stock Ownership Plan (the “ESOP”), enabling the ESOP to purchase      17,262 shares of common stock in the offering, equal to 3.43% of the      shares of common stock sold in the stock offering, for the benefit of the      Bank’s employees.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

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|   | The      Company may not declare or pay a cash dividend on, or repurchase any of      its common stock, if the effect thereof would cause the regulatory capital      of Auburn Savings Bank to be reduced below the amount required under OTS      rules and regulations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | Auburn      Bancorp, Inc.’s common stock is quoted on the OTC Bulletin Board under the      symbol “ABBB.”                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 3.     | Impact of Recent      Accounting Standards                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | In      September 2006, the Financial Accounting Standards Board (FASB) issued      Statement of Financial Accounting Standards (SFAS) No. 157, Fair Value      Measurements. This Statement defines fair value, establishes a      framework for measuring fair value in accordance with generally accepted      accounting principles, and expands disclosures about fair value      measurements. This Statement is effective for the Company on July 1, 2008,      with earlier adoption permitted for fiscal year 2008, and is not expected      to have a material impact on the Company’s financial statements. In      February 2008, FASB issued FASB Staff Position (FSP) FAS No. 157-2 which      delays by one year the effective date of SFAS No. 157 for certain types of      nonfinancial assets and nonfinancial liabilities.  In October      2008, FASB issued FSP FAS No. 157-3, Determining the Fair Value of      a Financial Asset When the Market for That Asset Is Not Active. FSP      FAS No. 157-3 clarifies the application of SFAS No. 157 in a market that      is not active and provides an example to illustrate key considerations in      determining the fair value of a financial asset when the market for that      financial asset is not active. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | On      February 15, 2007, FASB issued SFAS No. 159, The Fair Value Option for      Financial Assets and Financial Liabilities, which provides      companies with an option to report selected financial assets and      liabilities at fair value. SFAS No. 159 also establishes presentation and      disclosure requirements designed to facilitate comparisons between      companies that choose different measurement attributes for similar types      of assets and liabilities. This Statement is effective for the Company’s      2009 fiscal year, with early adoption permitted for the Company’s 2008      fiscal year, provided that the Company also adopts SFAS No. 157 for fiscal      year 2008. Management is currently evaluating the potential impacts of      adopting this Statement on the Company’s financial    statements.                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | In      March 2008, FASB issued SFAS No. 161, Disclosures about Derivative      Instruments and Hedging Activities - an amendment of SFAS No.      133.  SFAS No. 161 is intended to enhance the current      disclosure framework in SFAS No. 133. This Statement has the same scope as      SFAS No. 133. SFAS No. 133 requires that objectives for using derivative      instruments be disclosed in terms of underlying risk and accounting      designation. The disclosures required by SFAS No. 161 better convey the      purpose of derivative use in terms of the risk that the entity is      intending to manage, the fair values of the derivative instruments and      their gains and losses in a tabular format, as well as information about      credit-risk-related contingent features. This Statement is effective for      financial statements issued for fiscal years and interim periods beginning      after November 15, 2008.  Management does not expect      implementation of SFAS No. 161 to have a material impact on the financial      statements of the Company.                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.     | Income (Loss) Per      Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | Basic      income (loss) per share is determined by dividing net income (loss)      available to common stockholders 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 is not      applicable for the three or six months ended December 31, 2007, as the      Company did not become a public entity until August 15,    2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

----

|   | Net      income (loss) per common share for the three and six months ended December      31, 2008 is based on the following: |
|--------|------------------------------------------------------------------------------------------------------------------------------|

|                                                     |   | Three MonthsEndedDecember      31, 2008 |    |   | Six MonthsEndedDecember      31, 2008 |   |
|----------------------------------------------------------|--------|----------------------------------------------|---------|--------|--------------------------------------------|--------|
|                                                     |   |                                         |    |   |                                       |   |
| Net      loss                                            |   | $                                            | (17,929 | )      |                                       | $      | (10,865 | ) |
|                                                     |   |                                         |    |   |                                       |   |   |   |
| Weighted      average common shares outstanding          |   |                                         | 503,284 |   |                                       |   | 380,198 |   |
| Less:      Average unallocated ESOP shares               |   |                                         | (17,083 | )      |                                       |   | (12,934 | ) |
|                                                     |   |                                         |    |   |                                       |   |   |   |
| Adjusted      weighted average common shares outstanding |   |                                         | 486,201 |   |                                       |   | 367,264 |   |
|                                                     |   |                                         |    |   |                                       |   |   |   |
| Loss      per common share                               |   | $                                            | (0.04   | )      |                                       | $      | (0.03 | ) |

| 5.     | Comprehensive Income      or Loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | Accounting      principles generally accepted in the United States of America require that      recognized revenue, expenses, gains, and losses be included in net income      or loss.  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 other comprehensive income (loss) and related tax effects      for the three and six months ended December 31, 2008 and 2007 are as      follows:                                                                                                                                                                                                                                                                                                                                             |

|                                                                                           |   | Three      months endedDecember      31, |    |   | Six      months endedDecember      31, |   |
|------------------------------------------------------------------------------------------------|--------|------------------------------------------|---------|--------|----------------------------------------|--------|
|                                                                                           |   | 2008                                     |    |   | 2007                                   |   |   | 2008 |   |   | 2007 |   |
|                                                                                           |   |                                     |    |   |                                   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                         |   | $                                        | (17,929 | )      |                                   | $      | 47,958 |   |   | $ | (10,865 | ) |   | $ | 83,793 |   |
| Other      comprehensive loss, net of tax:                                                     |   |                                     |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      holding losses on securities available for sale arising during the      period |   |                                     | (7,521  | )      |                                   |   | (15,780 | ) |   |   | (77,898 | ) |   |   | (8,924 | ) |
| Reclassification      adjustment for items included in net income (loss)                       |   |                                     | -       |   |                                   |   | - |   |   |   | 60,270 |   |   |   | - |   |
| Tax      effect                                                                                |   |                                     | 2,557   |   |                                   |   | 5,365 |   |   |   | 5,993 |   |   |   | 3,034 |   |
| Other      comprehensive loss, net of tax                                                      |   |                                     | (4,964  | )      |                                   |   | (10,415 | ) |   |   | (11,635 | ) |   |   | (5,890 | ) |
| Total      comprehensive income (loss)                                                         |   | $                                        | (22,893 | )      |                                   | $      | 37,543 |   |   | $ | (22,500 | ) |   | $ | 77,903 |   |

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| 6.     | Employee Stock      Ownership Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | Shares      of the Company’s common stock purchased by the ESOP are held in a suspense      account until released for allocation to participants.  Shares      released are allocated to each eligible participant based on the ratio of      each such participant’s compensation, as defined in the ESOP, to the total      compensation of all eligible plan participants.  As the unearned      shares are released from suspense, the Company recognizes compensation      expense equal to the fair value of the ESOP shares committed to be      released during the period.  To the extent that the fair value      of the ESOP shares differs from the cost of such shares, the difference is      charged or credited to equity as additional paid-in capital. Expense      related to the ESOP for the three and six months ended December 31, 2008      totaled approximately $2,000 and $5,000, respectively.  The fair      value of the unallocated shares as of December 31, 2008 was      $172,508. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 7.     | Impairment Write-Down      on Investment Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | In      accordance with SFAS No. 115, “Accounting for Certain Investments in Debt      and Equity Securities” and SEC Staff Accounting Bulletin No. 59,      “Accounting for Non-current Marketable Securities”, the Company determined      that it would write down its investments in Federal National Mortgage      Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC)      common stock in the quarter ended September 30, 2008 as a result of the      appointment of the Federal Housing Finance Agency as conservator over both      of the entities.  The amount of the other-than-temporary      impairment charge was $60,270, the total amount of such FNMA and FHLMC      common stock on the Company’s books at that date.                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | The      Company did not record a tax benefit in connection with the impairment of      its FNMA and FHLMC common stock.  Although the Company would      realize a capital loss if it sells the FNMA and FHLMC common stock, such      capital loss would result in a tax benefit to the Company only to the      extent the capital loss can be used to reduce capital gains available      during the applicable carryback and carryforward periods. The Company does      not expect those capital gains to be material in relation to the amount of      the other-than-temporary impairment charge.                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 8.     | Fair Value      Measurement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | SFAS      No. 157 defines fair value as the exchange price that would be received      for an asset or paid to transfer a liability (an exit price) in the      principal or most advantageous market for the asset or liability in an      orderly transaction between market participants on the measurement date.      SFAS No. 157 also establishes a fair value hierarchy which requires an      entity to maximize the use of observable inputs and minimize the use of      unobservable inputs when measuring fair value. The standard describes      three levels of inputs that may be used to measure fair    value:                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | Level      1: Quoted prices (unadjusted) or identical assets or liabilities in active      markets that the entity has the ability to access as of the measurement      date                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | Level      2: Significant other observable inputs other than Level 1 prices, such as      quoted prices for similar assets or liabilities, quoted prices in markets      that are not active, and other inputs that are observable or can be      corroborated by observable market data                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | Level      3: Significant unobservable inputs that reflect a company’s own      assumptions about the assumptions that market participants would use in      pricing an asset or liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

----

|   | The      balances of financial assets and liabilities measured at fair value on a      recurring basis are as follows: |
|--------|------------------------------------------------------------------------------------------------------------------------|

|                                          | Fair      Value Measurements at December 31, 2008, Using |   |
|-----------------------------------------------|----------------------------------------------------------|--------|
|                                          | December      31,2008                                    |   | Quoted      PricesIn      ActiveMarkets      forIdentical      Assets(Level      1) |   | SignificantOtherObservableInputs(Level      2) |   | SignificantUnobservableInputs(Level      3) |   |
| Assets:                                       |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Investment      securities available for sale |                                                     | $      | 1,301,803 |   |   | $ | — |   |   | $ | 1,301,803 |   |   | $ | — |   |

|   | The      Company used the following methods and significant assumptions to estimate      fair value:                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Securities      available for sale (market approach): The fair value of securities      available for sale are determined by obtaining quoted prices on nationally      recognized securities exchanges or matrix pricing, which is a mathematical      technique used widely in the industry to value debt securities without      relying exclusively on quoted prices for the specific securities, but      rather by relying on the securities’ relationship to other benchmark      quoted securities. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | The      Company does not have any assets and liabilities measured at fair value on      a non-recurring basis at December 31,2008.                                                                                                                                                                                                                                                                                                                                                                               |

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|                                           |   | Three      Months Ended December 31, 2008Compared      to Three MonthsEnded      December 31, 2007 |   |
|------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|
|                                           |   |                                                                                               |   |   |   |   |   |   |   |
|                                           |   | Volume                                                                                             |   |   | Rate |   |   | Net    change |   |
| Interest-earning      assets:                  |   |                                                                                               |   |   |   |   |   |   |   |
| Loans                                          |   | $                                                                                                  | 52,000 |   |   | $ | (42,000 | ) |   | $ | 10,000 |   |
| Investment      securities                     |   |                                                                                               | (5,000 | ) |   |   | (1,000 | ) |   |   | (6,000 | ) |
| Interest-earning      deposits                 |   |                                                                                               | 12,000 |   |   |   | (19,000 | ) |   |   | (7,000 | ) |
| Total      interest-earning assets             |   | $                                                                                                  | 59,000 |   |   | $ | (62,000 | ) |   | $ | (3,000 | ) |
| Interest-bearing      liabilities:             |   |                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Savings      deposits                          |   | $                                                                                                  | 1,000  |   |   | $ | (2,000 | ) |   | $ | (1,000 | ) |
| NOW      accounts                              |   |                                                                                               | 1,000  |   |   |   | 5,000 |   |   |   | 6,000 |   |
| Money      market accounts                     |   |                                                                                               | 10,000 |   |   |   | (19,000 | ) |   |   | (9,000 | ) |
| Certificates      of deposit                   |   |                                                                                               | 11,000 |   |   |   | (84,000 | ) |   |   | (73,000 | ) |
| Total      deposits                            |   |                                                                                               | 23,000 |   |   |   | (100,000 | ) |   |   | (77,000 | ) |
| Federal      Home Loan Bank of Boston advances |   |                                                                                               | 18,000 |   |   |   | (13,000 | ) |   |   | 5,000 |   |
| Total      interest-bearing liabilities        |   | $                                                                                                  | 41,000 |   |   | $ | (113,000 | ) |   | $ | (72,000 | ) |
| Change      in net interest income             |   | $                                                                                                  | 18,000 |   |   | $ | 51,000 |   |   | $ | 69,000 |   |

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|                                           |   | Six      Months Ended December 31, 2008Compared      to Six MonthsEnded      December 31, 2007 |    |
|------------------------------------------------|--------|------------------------------------------------------------------------------------------------|---------|
|                                           |   | Volume                                                                                         |    |   | Rate |   |   | Net      change |   |
|                                           |   |                                                                                           |    |   |   |   |   |   |   |
| Interest-earning      assets:                  |   |                                                                                           |    |   |   |   |   |   |   |
| Loans                                          |   | $                                                                                              | 151,000 |   |   | $ | (92,000 | ) |   | $ | 59,000 |   |
| Investment      securities                     |   |                                                                                           | (16,000 | ) |   |   | (4,000 | ) |   |   | (20,000 | ) |
| Interest-earning      deposits                 |   |                                                                                           | 6,000   |   |   |   | (24,000 | ) |   |   | (18,000 | ) |
| Total      interest-earning assets             |   | $                                                                                              | 141,000 |   |   | $ | (120,000 | ) |   | $ | 21,000 |   |
| Interest-bearing      liabilities:             |   |                                                                                           |    |   |   |   |   |   |   |   |   |   |
| Savings      deposits                          |   | $                                                                                              | 2,000   |   |   | $ | (1,000 | ) |   | $ | 1,000 |   |
| NOW      accounts                              |   |                                                                                           | 1,000   |   |   |   | 7,000 |   |   |   | 8,000 |   |
| Money      market accounts                     |   |                                                                                           | 10,000  |   |   |   | (38,000 | ) |   |   | (28,000 | ) |
| Certificates      of deposit                   |   |                                                                                           | 10,000  |   |   |   | (154,000 | ) |   |   | (144,000 | ) |
| Total      deposits                            |   |                                                                                           | 23,000  |   |   |   | (186,000 | ) |   |   | (163,000 | ) |
| Federal      Home Loan Bank of Boston advances |   |                                                                                           | 47,000  |   |   |   | (27,000 | ) |   |   | 20,000 |   |
| Total      interest-bearing liabilities        |   | $                                                                                              | 70,000  |   |   | $ | (213,000 | ) |   | $ | (143,000 | ) |
| Change      in net interest income             |   | $                                                                                              | 71,000  |   |   | $ | 93,000 |   |   | $ | 164,000 |   |

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| ITEM      3. | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK |
|--------------|----------------------------------------------------------------|

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

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

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

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

----

| ITEM      4. | SUBMISSION      OF MATTERS TO A VOTE OF SECURITYHOLDERS |
|--------------|---------------------------------------------------------|

| Director      Nominee     |   | For                      |   | Withheld               |
|---------------------------|--------|--------------------------|--------|------------------------|
| M.      Kelly Matzen      |   | 418,264  97.7% |   | 10,000  0.3% |
| Allen      T. Sterling    |   | 418,264  97.7% |   | 10,000  0.3% |
| Philip      R. St. Pierre |   | 418,264  97.7% |   | 10,000  0.3% |

| For     | 428,164 |
|---------|---------|
| Against | 0       |
| Abstain | 100     |

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

----

| 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           |   | Specimen      Stock Certificate of Auburn Bancorp, Inc. **                                                                                       |
|          |   |                                                                                                                                             |
| 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 Chief 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 Chief 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). |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                         |   |   | Auburn      Bancorp, Inc.                  |   |
|------------------------------|--------|--------|--------------------------------------------|--------|
|                         |   |   | (Registrant)                               |   |
|                         |   |   |                                       |   |
|                         |   |   |                                       |   |
| Date:      February 13, 2009 |   | By:    | /s/  Allen      T. Sterling      |   |
|                         |   |   | Allen      T. Sterling                     |   |
|                         |   |   | President      and Chief Executive Officer |   |
|                         |   |   |                                       |   |
|                         |   |   |                                       |   |
| Date:      February 13, 2009 |   | By:    | /s/  Rachel      A. Haines       |   |
|                         |   |   | Rachel      A. Haines                      |   |
|                         |   |   | Principal      Financial Officer           |   |