----

----

| 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 |
|--------|------------------------------------------------------------------------------------------|

| 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, 2009 (Unaudited) and June 30, 2009                                                |   | 3      |
|                                      |                                                                                                                             |   |   |
|                                      | Consolidated Statements of Operations (Unaudited) for the Three Months Ended December 31, 2009 and 2008                          |   | 4      |
|                                      |                                                                                                                             |   |   |
|                                      | Consolidated Statements of Operations (Unaudited) for the Six Months Ended December 31, 2009 and 2008                            |   | 5      |
|                                      |                                                                                                                             |   |   |
|                                      | Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) for the Six Months Ended December 31, 2009 and 2008 |   | 6      |
|                                      |                                                                                                                             |   |   |
|                                      | Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended December 31, 2009 and 2008                            |   | 7      |
|                                      |                                                                                                                             |   |   |
|                                      | Notes to Consolidated Financial Statements (Unaudited)                                                                           |   | 8      |
|                                      |                                                                                                                             |   |   |
| Item 2.                                   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                      |   | 16     |
|                                      |                                                                                                                             |   |   |
| Item 3.                                   | quantitative and qualitative disclosures about market risk                                                                       |   | 27     |
|                                      |                                                                                                                             |   |   |
| Item 4T.                                  | Controls and Procedures                                                                                                          |   | 27     |
|                                      |                                                                                                                             |   |   |
| PART II. OTHER INFORMATION                |                                                                                                                             |   |
|                                      |                                                                                                                             |   |
| Item 1.                                   | Legal Proceedings                                                                                                                |   | 27     |
|                                      |                                                                                                                             |   |   |
| ITEM 1A.                                  | risk factors                                                                                                                     |   | 27     |
|                                      |                                                                                                                             |   |   |
| Item 2.                                   | Unregistered Sales of Equity Securities and Use of Proceeds                                                                      |   | 27     |
|                                      |                                                                                                                             |   |   |
| Item 3.                                   | Defaults Upon Senior Securities                                                                                                  |   | 27     |
|                                      |                                                                                                                             |   |   |
| Item 4.                                   | Submission of Matters to a Vote of Security Holders                                                                              |   | 28     |
|                                      |                                                                                                                             |   |   |
| Item 5.                                   | Other Information                                                                                                                |   | 28     |
|                                      |                                                                                                                             |   |   |
| Item 6.                                   | Exhibits                                                                                                                         |   | 29     |
|                                      |                                                                                                                             |   |   |
|                                      | Signatures                                                                                                                       |   | 30     |

----

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

|                                                                   |   | December 31, |       |   | June 30, |   |
|------------------------------------------------------------------------|--------|--------------|------------|--------|----------|--------|
|                                                                   |   | 2009         |       |   | 2009     |   |
|                                                                   |   | (Unaudited)  |       |   |     |   |
| ASSETS                                                                 |   |         |       |   |     |   |
| Cash and due from banks                                                |   | $            | 2,079,859  |   |     | $      | 1,403,715 |   |
| Interest-earning deposits                                              |   |         | 576,051    |   |     |   |  970,921 |   |
| Total cash and cash equivalents                                        |   |         | 2,655,910  |   |     |   | 2,374,636 |   |
|                                                                   |   |         |       |   |     |   |   |   |
| Certificates of deposit                                                |   |         | 494,000    |   |     |   | 4,451,105 |   |
|                                                                   |   |         |       |   |     |   |   |   |
| Investment securities available for sale, at fair value                |   |         | 594,754    |   |     |   | 1,564,775 |   |
|                                                                   |   |         |       |   |     |   |   |   |
| Federal Home Loan Bank stock, at cost                                  |   |         | 1,251,700  |   |     |   | 1,147,000 |   |
|                                                                   |   |         |       |   |     |   |   |   |
| Loans                                                                  |   |         | 67,512,656 |   |     |   | 62,574,299 |   |
| Less allowance for loan losses                                         |   |         | (429,860   | )      |     |   |  (385,181 | ) |
| Net loans                                                              |   |         | 67,082,796 |   |     |   | 62,189,118 |   |
|                                                                   |   |         |       |   |     |   |   |   |
| Property and equipment, net                                            |   |         | 1,871,596  |   |     |   | 1,907,877 |   |
| Foreclosed real estate, net of reserve of $10,000 at December 31, 2009 |   |         | 495,857    |   |     |   | 337,058 |   |
|  Accrued interest receivable:                                     |   |         |       |   |     |   |   |   |
| Investments                                                            |   |         | 6,463      |   |     |   | 33,487 |   |
| Mortgage-backed securities                                             |   |         | 714        |   |     |   | 1,066 |   |
| Loans                                                                  |   |         | 248,990    |   |     |   | 242,460 |   |
|  Prepaid expenses and other assets                                |   |         | 516,290    |   |     |   |  182,128 |   |
|                                                                   |   |         |       |   |     |   |   |   |
| Total assets                                                           |   | $            | 75,219,070 |   |     | $      | 74,430,710 |   |

| Liabilities:                                                                                                                                 |   |   |       |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                                                                         |   |   |       |   |   |   |   |   |
| Deposits                                                                                                                                     |   | $      | 50,402,558 |   |   | $      | 48,099,021 |   |
| Federal Home Loan Bank advances                                                                                                              |   |   | 18,602,503 |   |   |   | 20,150,000 |   |
| Accrued interest and other liabilities                                                                                                       |   |   | 262,634    |   |   |   |  277,810 |   |
| Total liabilities                                                                                                                            |   |   | 69,267,695 |   |   |   | 68,526,831 |   |
|                                                                                                                                         |   |   |       |   |   |   |   |   |
| Stockholders’ equity:                                                                                                                  |   |   |       |   |   |   |   |   |
| Preferred stock, 1,000,000 shares authorized, no shares issued or outstanding                                                                |   |   | —    |   |   |   | — |   |
| Common stock, $.01 par value per share, 10,000,000 shares authorized, 503,284 shares issued and outstanding at December 31 and June 30, 2009 |   |   | 5,033      |   |   |   | 5,033 |   |
| Additional paid-in-capital                                                                                                                   |   |   | 1,470,052  |   |   |   | 1,470,790 |   |
| Retained earnings                                                                                                                            |   |   | 4,629,381  |   |   |   | 4,611,470 |   |
| Accumulated other comprehensive loss                                                                                                         |   |   | (2,837     | )      |   |   | (26,225 | ) |
| Unearned compensation (ESOP shares)                                                                                                          |   |   | (150,254   | )      |   |   | (157,189 | ) |
| Total stockholders’ equity                                                                                                             |   |   | 5,951,375  |   |   |   | 5,903,879 |   |
|                                                                                                                                         |   |   |       |   |   |   |   |   |
| Total liabilities and stockholders’ equity                                                                                             |   | $      | 75,219,070 |   |   | $      | 74,430,710 |   |

----

|                                                                            |   | Three Months Ended December 31, |
|---------------------------------------------------------------------------------|--------|---------------------------------|
|                                                                            |   | 2009                            |   |   | 2008 |
|                                                                            |   | (Unaudited)                     |
| Interest and dividend income:                                                   |   |                            |   |
| Interest on loans                                                               |   | $                               | 1,020,311 |   |   | $ | 944,052 |   |
| Interest on investments and other interest-earning deposits                     |   |                            | 33,360 |   |   |   | 62,714 |   |
| Dividends on Federal Home Loan Bank stock                                       |   |                            | — |   |   |   |  5,663 |   |
| Total interest and dividend income                                              |   |                            |  1,053,671 |   |   |   | 1,012,429 |   |
|                                                                            |   |                            |   |   |   |   |   |   |
| Interest expense:                                                               |   |                            |   |   |   |   |   |   |
| Interest on deposits and escrow accounts                                        |   |                            | 248,839 |   |   |   | 353,983 |   |
| Interest on Federal Home Loan Bank advances                                     |   |                            | 175,243 |   |   |   | 184,763 |   |
| Total interest expense                                                          |   |                            | 424,082 |   |   |   | 538,746 |   |
|                                                                            |   |                            |   |   |   |   |   |   |
| Net interest income                                                             |   |                            | 629,589 |   |   |   | 473,683 |   |
|                                                                            |   |                            |   |   |   |   |   |   |
| Provision for loan losses                                                       |   |                            | 27,613 |   |   |   | 28,029 |   |
|                                                                            |   |                            |   |   |   |   |   |   |
| Net interest income after provision for loan losses                             |   |                            | 601,976 |   |   |   |  445,654 |   |
|                                                                            |   |                            |   |   |   |   |   |   |
| Non-interest income (loss):                                                     |   |                            |   |   |   |   |   |   |
|        Net gain on sales of loans            |   |                            | 21,106 |   |   |   | 2,389 |   |
|        Net loss on sale of foreclosed real estate |   |                            | (319 | )  |   |   | — |   |
|        Net gain on sale of investment securities  |   |                            | 32,894 |   |   |   | — |   |
|        Other non-interest income             |   |                            | 34,637 |   |   |   | 29,123 |   |
| Total non-interest income                                                       |   |                            | 88,318 |   |   |   |  31,512 |   |
|                                                                            |   |                            |   |   |   |   |   |   |
| Non-interest expenses:                                                          |   |                            |   |   |   |   |   |   |
| Salaries and employee benefits                                                  |   |                            | 234,924 |   |   |   | 232,806 |   |
| Occupancy expense                                                               |   |                            | 25,740 |   |   |   | 31,472 |   |
| Depreciation                                                                    |   |                            | 24,392 |   |   |   | 25,882 |   |
| Federal deposit insurance premiums                                              |   |                            | 23,192 |   |   |   | 7,110 |   |
| Computer charges                                                                |   |                            | 40,178 |   |   |   | 38,071 |   |
| Advertising expense                                                             |   |                            | 16,719 |   |   |   | 11,363 |   |
|         Consulting expense                   |   |                            | 9,498 |   |   |   | 10,822 |   |
| Net provision for losses on other real estate owned                             |   |                            | 10,000 |   |   |   | — |   |
| Other operating expenses                                                        |   |                            | 179,435 |   |   |   | 142,169 |   |
| Total non-interest expenses                                                     |   |                            | 564,078 |   |   |   | 499,695 |   |
|                                                                            |   |                            |   |   |   |   |   |   |
| Income (loss) before income taxes                                               |   |                            | 126,216 |   |   |   | (22,529 | ) |
|                                                                            |   |                            |   |   |   |   |   |   |
| Income tax expense (benefit)                                                    |   |                            | 46,573 |   |   |   | (4,600 | ) |
|                                                                            |   |                            |   |   |   |   |   |   |
| Net income (loss)                                                               |   | $                               | 79,643 |   |   | $ | (17,929 | ) |
|                                                                            |   |                            |   |   |   |   |   |   |
| Net income (loss) per common share                                              |   | $                               | .16 |   |   | $ | (.04 | ) |

----

|                                                                                          |   | Six Months Ended December 31, |
|-----------------------------------------------------------------------------------------------|--------|-------------------------------|
|                                                                                          |   | 2009                          |   |   | 2008 |
|                                                                                          |   | (Unaudited)                   |
| Interest and dividend income:                                                                 |   |                          |   |
| Interest on loans                                                                             |   | $                             | 1,985,755 |   |   | $ | 1,919,975 |   |
| Interest on investments and other interest-earning deposits                                   |   |                          | 80,091 |   |   |   | 111,206 |   |
| Dividends on Federal Home Loan Bank stock                                                     |   |                          | — |   |   |   |  12,496 |   |
| Total interest and dividend income                                                            |   |                          |  2,065,846 |   |   |   |  2,043,677 |   |
|                                                                                          |   |                          |   |   |   |   |   |   |
| Interest expense:                                                                             |   |                          |   |   |   |   |   |   |
| Interest on deposits and escrow accounts                                                      |   |                          | 516,898 |   |   |   | 703,947 |   |
| Interest on Federal Home Loan Bank advances                                                   |   |                          | 366,176 |   |   |   | 375,800 |   |
| Total interest expense                                                                        |   |                          | 883,074 |   |   |   | 1,079,747 |   |
|                                                                                          |   |                          |   |   |   |   |   |   |
| Net interest income                                                                           |   |                          | 1,182,772 |   |   |   | 963,930 |   |
|                                                                                          |   |                          |   |   |   |   |   |   |
| Provision for loan losses                                                                     |   |                          | 45,461 |   |   |   | 46,603 |   |
|                                                                                          |   |                          |   |   |   |   |   |   |
| Net interest income after provision for loan losses                                           |   |                          |  1,137,311 |   |   |   |  917,327 |   |
|                                                                                          |   |                          |   |   |   |   |   |   |
| Non-interest income (loss):                                                                   |   |                          |   |   |   |   |   |   |
|        Net gain on sales of loans                          |   |                          | 42,699 |   |   |   | 4,844 |   |
|        Net loss on sale of foreclosed real estate               |   |                          | (7,233 | )  |   |   | — |   |
|        Net loss on sale of investment securities                |   |                          |  (126,269 | ) |   |   |  — |   |
|        Other-than-temporary impairment of investment securities |   |                          |  — |   |   |   |  (60,270 | )  |
|        Other non-interest income                           |   |                          | 70,531 |   |   |   | 49,070 |   |
|                                                                                          |   |                          |   |   |   |   |   |   |
| Total non-interest loss                                                                       |   |                          |  (20,272 | ) |   |   |  (6,356 | ) |
|                                                                                          |   |                          |   |   |   |   |   |   |
| Non-interest expenses:                                                                        |   |                          |   |   |   |   |   |   |
| Salaries and employee benefits                                                                |   |                          | 466,866 |   |   |   | 445,783 |   |
| Occupancy expense                                                                             |   |                          | 50,586 |   |   |   | 60,118 |   |
| Depreciation                                                                                  |   |                          | 50,400 |   |   |   | 50,913 |   |
| Federal deposit insurance premiums                                                            |   |                          | 75,556 |   |   |   | 10,497 |   |
| Computer charges                                                                              |   |                          | 85,646 |   |   |   | 79,480 |   |
| Advertising expense                                                                           |   |                          | 30,183 |   |   |   | 20,382 |   |
| Consulting expense                                                                            |   |                          | 23,473 |   |   |   | 20,472 |   |
| Net provision for losses on other real estate owned                                           |   |                          | 10,000 |   |   |   | — |   |
| Other operating expenses                                                                      |   |                          |  289,494 |   |   |   | 207,591 |   |
| Total non-interest expenses                                                                   |   |                          |  1,082,204 |   |   |   | 895,236 |   |
|                                                                                          |   |                          |   |   |   |   |   |   |
| Income before income taxes                                                                    |   |                          | 34,835 |   |   |   | 15,735 |   |
|                                                                                          |   |                          |   |   |   |   |   |   |
| Income tax expense                                                                            |   |                          | 16,924 |   |   |   | 26,600 |   |
|                                                                                          |   |                          |   |   |   |   |   |   |
| Net income (loss)                                                                             |   | $                             | 17,911 |   |   | $ | (10,865 | ) |
|                                                                                          |   |                          |   |   |   |   |   |   |
| Net income (loss) per common share                                                            |   | $                             | .04 |   |   | $ | (.03 | ) |

----

|                                                                                     |   | CommonStock |            |   | AdditionalPaid-in-Capital |   |             | RetainedEarnings |   |   | AccumulatedOtherComprehensiveIncome (Loss) |   |   | UnearnedCompensation(ESOP Shares) |                 |   | Total  |   |
|------------------------------------------------------------------------------------------|--------|-------------|-----------------|--------|---------------------------|--------|------------------|------------------|--------|--------|--------------------------------------------|--------|--------|-----------------------------------|----------------------|--------|--------|--------|
|  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 loss, 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 |   |

|    Balance, June 30, 2009                                   |   | $      | 5,033    |   |   | $      | 1,470,790 |   |   | $      | 4,611,470 |   |   | $      | (26,225       | )      |   | $      | (157,189 | )      |   | $      | 5,903,879 |   |
|----------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|---------------|--------|--------|--------|----------|--------|--------|--------|-----------|--------|
|                                                                       |   |   |     |   |   |   |      |   |   |   |      |   |   |   |          |   |   |   |     |   |   |   |      |   |
| Comprehensive income                                                       |   |   |     |   |   |   |      |   |   |   |      |   |   |   |          |   |   |   |     |   |   |   |      |   |
| Net income                                                                 |   |   | -        |   |   |   | -         |   |   |   | 17,911    |   |   |   | -             |   |   |   | -        |   |   |   | 17,911    |   |
| Other comprehensive income                                                 |   |   |     |   |   |   |      |   |   |   |      |   |   |   |          |   |   |   |     |   |   |   |      |   |
| Unrealized holding gain on securities, net of taxes of  $12,048  |   |   |   - |   |   |   |   -  |   |   |   |   -  |   |   |   |   23,388 |   |   |   |   - |   |   |   | 23,388    |   |
|  Total comprehensive income                                           |   |   | -        |   |   |   | -         |   |   |   | 17,911    |   |   |   | 23,388        |   |   |   | -        |   |   |   | 41,299    |   |
|                                                                       |   |   |     |   |   |   |      |   |   |   |      |   |   |   |          |   |   |   |     |   |   |   |      |   |
| Common stock held by ESOP committed to be released  (694 shares) |   |   | -        |   |   |   | (738      | )      |   |   | -         |   |   |   | -             |   |   |   | 6,935    |   |   |   | 6,197     |   |
| Balance, December 31,  2009                                      |   | $      | 5,033    |   |   | $      | 1,470,052 |   |   | $      | 4,629,381 |   |   | $      | (2,837        | )      |   | $      | (150,254 | )      |   | $      | 5,951,375 |   |

----

|                                                                                        |   |                         |       |   |   |   |
|---------------------------------------------------------------------------------------------|--------|------------------------------|------------|--------|--------|--------|
|                                                                                        |   | Six Months EndedDecember 31, |       |
|                                                                                        |   | 2009                         |       |   | 2008   |   |
| Cash flows from operating activities                                                        |   |                         |       |   |   |   |
| Net income (loss)                                                                           |   | $                            | 17,911     |   |   | $      | (10,865 | ) |
| Adjustments to reconcile net income (loss) to net cash used in operating activities:        |   |                         |       |   |   |   |   |   |
| Depreciation                                                                                |   |                         | 50,400     |   |   |   | 50,913 |   |
| Net accretion of discounts on investment securities available for sale                      |   |                         | (5,926     | )      |   |   | (8,139 | ) |
| Loss on disposal of property and equipment                                                  |   |                         | -          |   |   |   | 615 |   |
| Provision for loan losses                                                                   |   |                         | 45,461     |   |   |   | 46,603 |   |
| Net provision for losses on other real estate owned                                         |   |                         | 10,000     |   |   |   | - |   |
| Deferred income tax benefit                                                                 |   |                         | (11,380    | )      |   |   | (7,949 | ) |
| Loss on sale of investment securities available for sale                                    |   |                         | 126,269    |   |   |   | - |   |
| Other-than-temporary impairment on investment securities available for sale                 |   |                         | -          |   |   |   | 60,270 |   |
| Gain on sales of loans                                                                      |   |                         | (42,699    | )      |   |   | (4,844 | ) |
| Loss on sale of foreclosed real estate                                                      |   |                         | 7,233      |   |   |   | - |   |
| Increase in loans held for sale                                                             |   |                         | -          |   |   |   | (230,274 | )  |
| ESOP compensation expense                                                                   |   |                         | 6,197      |   |   |   |  4,515 |   |
| Net decrease (increase) in prepaid expenses and other assets                                |   |                         | (334,162   | )      |   |   | 564,685 |   |
| Net decrease in accrued interest receivable                                                 |   |                         | 20,846     |   |   |   | 8,884 |   |
| Net decrease in accrued interest payable and other liabilities                              |   |                         | (15,844    | )      |   |   | (143,685 | ) |
|                                                                                        |   |                         |       |   |   |   |   |   |
| Net cash provided by (used in) operating activities                                         |   |                         | (125,694   | )      |   |   | 330,729 |   |
|                                                                                        |   |                         |       |   |   |   |   |   |
| Cash flows from investing activities:                                                       |   |                         |       |   |   |   |   |   |
| Purchase of investment securities available for sale                                        |   |                         | -          |   |   |   | (250,000 | ) |
| Proceeds from sales of investment securities available for sale                             |   |                         | 800,499    |   |   |   | - |   |
| Proceeds from maturities and principal paydowns on investment securities available for sale |   |                         | 84,615     |   |   |   | 312,170 |   |
| Net change in certificates of deposit                                                       |   |                         | 3,957,105  |   |   |   | (3,760,350 | ) |
| Net increase in loans to customers                                                          |   |                         | (5,072,472 | )      |   |   | (3,201,791 | ) |
| Purchase of Federal Home Loan Bank stock                                                    |   |                         | (104,700   | )      |   |   | (53,100 | ) |
| Capital expenditures                                                                        |   |                         | (14,119    | )      |   |   | (56,899 | ) |
|                                                                                        |   |                         |       |   |   |   |   |   |
| Net cash used in investing activities                                                       |   |                         | (349,072   | )      |   |   | (7,009,970 | ) |
|                                                                                        |   |                         |       |   |   |   |   |   |
| Cash flows from financing activities:                                                       |   |                         |       |   |   |   |   |   |
| Advances from Federal Home Loan Bank                                                        |   |                         | 4,250,000  |   |   |   | 500,000 |   |
| Repayment of advances from Federal Home Loan Bank                                           |   |                         | (2,750,000 | )      |   |   | (1,000,000 | ) |
| Net change in short term borrowings                                                         |   |                         | (3,047,497 | )      |   |   | 2,800,000 |   |
| Net increase in deposits                                                                    |   |                         | 2,303,537  |   |   |   | 2,356,259 |   |
| 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                                                   |   |                         | 756,040    |   |   |   | 5,956,915 |   |
|                                                                                        |   |                         |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                        |   |                         | 281,274    |   |   |   | (722,326 | ) |
|                                                                                        |   |                         |       |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                              |   |                         | 2,374,636  |   |   |   | 2,012,487 |   |
|                                                                                        |   |                         |       |   |   |   |   |   |
| Cash and cash equivalents, end of period                                                    |   | $                            | 2,655,910  |   |   | $      | 1,290,161 |   |
|                                                                                        |   |                         |       |   |   |   |   |   |
| Supplementary cash flow information:                                                        |   |                         |       |   |   |   |   |   |
| Cash paid during the period for:                                                            |   |                         |       |   |   |   |   |   |
| Interest                                                                                    |   | $                            | 886,525    |   |   | $      | 1,078,939 |   |
| Taxes                                                                                       |   | $                            | 6,300      |   |   | $      | 97,240 |   |
| Transfer of loans to foreclosed real estate                                                 |   | $                            | 186,032    |   |   | $      | 221,857 |   |

----

----

----

|   |                                            |   |          |    |   |                 |   |   |                  |   |   |      |   |
|--------|-------------------------------------------------|--------|---------------|---------|--------|----------------------|--------|--------|-----------------------|--------|--------|-----------|--------|
|   |                                            |   | AmortizedCost |    |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | FairValue |   |
|   |                                            |   |          |    |   |                 |   |   |                  |   |   |      |   |   |   |   |   |
|   | Corporate bond                                  |   | $             | 450,000 |   |                 | $      | 7,646  |                  |   | $      | (15,800   | )      |   | $ | 441,846 |   |
|   | FNMA mortgage-backed securities                 |   |          | 139,053 |   |                 |   | 2,939  |                  |   |   | (1,732    | )      |   |   | 140,260 |   |
|   | U.S. Government sponsored enterprise securities |   |          | 2       |   |                 |   | 2,646  |                  |   |   | -         |   |   |   | 2,648 |   |
|   | Corporate common stock                          |   |          | 10,000  |   |                 |   | -      |                  |   |   | -         |   |   |   | 10,000 |   |
|   |                                            |   |          |    |   |                 |   |   |                  |   |   |      |   |   |   |   |   |
|   | Total investment securities available for sale  |   | $             | 599,055 |   |                 | $      | 13,231 |                  |   | $      | (17,532   | )      |   | $ | 594,754 |   |

|   |                                            |   |          |      |   |                 |   |   |                  |   |   |      |   |
|--------|-------------------------------------------------|--------|---------------|-----------|--------|----------------------|--------|--------|-----------------------|--------|--------|-----------|--------|
|   |                                            |   | AmortizedCost |      |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | FairValue |   |
|   |                                            |   |          |      |   |                 |   |   |                  |   |   |      |   |
|   | Corporate bond                                  |   | $             | 1,370,276 |   |                 | $      | 9,740  |                  |   | $      | (51,823   | )      |   | $ | 1,328,193 |   |
|   | FHLMC mortgage-backed securities                |   |          | 27,940    |   |                 |   | 260    |                  |   |   | -         |   |   |   | 28,200 |   |
|   | FNMA mortgage-backed securities                 |   |          | 196,295   |   |                 |   | 3,344  |                  |   |   | (2,455    | )      |   |   | 197,184 |   |
|   | U.S. Government sponsored enterprise securities |   |          | 2         |   |                 |   | 1,196  |                  |   |   | -         |   |   |   | 1,198 |   |
|   | Corporate common stock                          |   |          | 10,000    |   |                 |   | -      |                  |   |   | -         |   |   |   | 10,000 |   |
|   |                                            |   |          |      |   |                 |   |   |                  |   |   |      |   |   |   |   |   |
|   | Total investment securities available for sale  |   | $             | 1,604,513 |   |                 | $      | 14,540 |                  |   | $      | (54,278   | )      |   | $ | 1,564,775 |   |

|   |                           |   |              |    |   |          |   |    |          |   |   |      |   |
|--------|--------------------------------|--------|-------------------|---------|--------|---------------|--------|---------|---------------|--------|--------|-----------|--------|
|   |                           |   | December 31, 2009 |    |   | June 30, 2009 |   |
|   |                           |   | AmortizedCost     |    |   | FairValue     |   |    | AmortizedCost |   |   | FairValue |   |
|   |                           |   |              |    |   |          |   |    |          |   |   |      |   |   |   |   |   |
|   | One year or less               |   | $                 | -       |   |          | $      | -       |          |   | $      | 473,961   |   |   | $ | 473,961 |   |
|   | Over 1 year through 5 years    |   |              | 250,000 |   |          |   | 234,200 |          |   |   | 496,315   |   |   |   | 444,492 |   |
|   | After 5 years through 10 years |   |              | 200,000 |   |          |   | 207,646 |          |   |   | 400,000   |   |   |   | 409,740 |   |
|   |                           |   |              | 450,000 |   |          |   | 441,846 |          |   |   | 1,370,276 |   |   |   | 1,328,193 |   |
|   | Mortgage-backed securities     |   |              | 139,053 |   |          |   | 140,260 |          |   |   | 224,235   |   |   |   | 225,384 |   |
|   |                           |   |              |    |   |          |   |    |          |   |   |      |   |   |   |   |   |
|   |                           |   | $                 | 589,053 |   |          | $      | 582,106 |          |   | $      | 1,594,511 |   |   | $ | 1,553,577 |   |

----

|   |                            |   |                |   |   |                        |   |   |       |   |   |                  |   |   |       |   |   |                  |   |
|--------|---------------------------------|--------|---------------------|--------|--------|-----------------------------|--------|--------|------------|--------|--------|-----------------------|--------|--------|------------|--------|--------|-----------------------|--------|
|   |                            |   | Less Than 12 Months |   |   | 12 Months or Greater        |   |   | Total      |   |
|   |                            |   | Fair Value          |   |   |  GrossUnrealizedLosses |   |   | Fair Value |   |   | GrossUnrealizedLosses |   |   | Fair Value |   |   | GrossUnrealizedLosses |   |
|   | December 31, 2009               |   |                |   |   |                        |   |   |       |   |   |                  |   |   |       |   |   |                  |   |
|   | Corporate bonds                 |   | $                   | -      |   |                        | $      | -      |       |   | $      | 250,000               |   |   | $          | 15,800 |   |                  | $      | 250,000 |   |   | $ | 15,800 |   |
|   | FNMA mortgage-backed securities |   |                | -      |   |                        |   | -      |       |   |   | 59,786                |   |   |       | 1,732  |   |                  |   | 59,786 |   |   |   | 1,732 |   |
|   |                            |   |                |   |   |                        |   |   |       |   |   |                  |   |   |       |   |   |                  |   |   |   |   |   |   |   |
|   | Total                           |   | $                   | -      |   |                        | $      | -      |       |   | $      | 309,786               |   |   | $          | 17,532 |   |                  | $      | 309,786 |   |   | $ | 17,532 |   |
|   |                            |   |                |   |   |                        |   |   |       |   |   |                  |   |   |       |   |   |                  |   |   |   |   |   |   |   |
|   | June 30, 2009                   |   |                |   |   |                        |   |   |       |   |   |                  |   |   |       |   |   |                  |   |   |   |   |   |   |   |
|   | Corporate bonds                 |   | $                   | -      |   |                        | $      | -      |       |   | $      | 496,315               |   |   | $          | 51,823 |   |                  | $      | 496,315 |   |   | $ | 51,823 |   |
|   | FNMA mortgage-backed securities |   |                | -      |   |                        |   | -      |       |   |   | 70,790                |   |   |       | 2,455  |   |                  |   | 70,790 |   |   |   | 2,455 |   |
|   |                            |   |                |   |   |                        |   |   |       |   |   |                  |   |   |       |   |   |                  |   |   |   |   |   |   |   |
|   | Total                           |   | $                   | -      |   |                        | $      | -      |       |   | $      | 567,105               |   |   | $          | 54,278 |   |                  | $      | 567,105 |   |   | $ | 54,278 |   |

----

|                                                |   |                           |    |   |                         |   |    |   |   |   |    |   |
|-----------------------------------------------------|--------|--------------------------------|---------|--------|------------------------------|--------|---------|--------|--------|--------|---------|--------|
|                                                |   | Three Months EndedDecember 31, |    |   | Six Months EndedDecember 31, |   |
|                                                |   | 2009                           |    |   | 2008                         |   |    | 2009   |   |   | 2008    |   |
|                                                |   |                           |    |   |                         |   |    |   |   |   |    |   |   |   |   |   |
| Net Income (loss)                                   |   | $                              | 79,643  |   |                         | $      | (17,929 | )      |   | $      | 17,911  |   |   | $ | (10,865 | ) |
|                                                |   |                           |    |   |                         |   |    |   |   |   |    |   |   |   |   |   |
| Weighted average common shares outstanding          |   |                           | 503,284 |   |                         |   | 503,284 |   |   |   | 503,284 |   |   |   | 380,198 |   |
| Less: Average unallocated ESOP shares               |   |                           | (15,122 | )      |                         |   | (17,083 | )      |   |   | (15,315 | )      |   |   | (12,934 | ) |
|                                                |   |                           |    |   |                         |   |    |   |   |   |    |   |   |   |   |   |
| Adjusted weighted average common shares outstanding |   |                           | 488,162 |   |                         |   | 486,201 |   |   |   | 487,969 |   |   |   | 367,264 |   |
|                                                |   |                           |    |   |                         |   |    |   |   |   |    |   |   |   |   |   |
| Net income (loss) per common share                  |   | $                              | 0.16    |   |                         | $      | (0.04   | )      |   | $      | 0.04    |   |   | $ | (0.03 | ) |

|                                                                                          |   |                           |    |   |                         |   |    |   |   |   |    |   |
|-----------------------------------------------------------------------------------------------|--------|--------------------------------|---------|--------|------------------------------|--------|---------|--------|--------|--------|---------|--------|
|                                                                                          |   | Three Months EndedDecember 31, |    |   | Six Months EndedDecember 31, |   |
|                                                                                          |   | 2009                           |    |   | 2008                         |   |    | 2009   |   |   | 2008    |   |
|                                                                                          |   |                           |    |   |                         |   |    |   |   |   |    |   |   |   |   |   |
| Net income (loss)                                                                             |   | $                              | 79,643  |   |                         | $      | (17,929 | )      |   | $      | 17,911  |   |   | $ | (10,865 | ) |
| Other comprehensive income (loss), net of tax:                                                |   |                           |    |   |                         |   |    |   |   |   |    |   |   |   |   |   |
| Unrealized holding income (losses) on securities available for sale arising during the period |   |                           | (36,494 | )      |                         |   | (7,521  | )      |   |   | 35,436  |   |   |   | (77,898 | ) |
|                                                                                          |   |                           |    |   |                         |   |    |   |   |   |    |   |   |   |   |   |
| Reclassification adjustment for items included in net income (loss)                           |   |                           | -       |   |                         |   | -       |   |   |   | -       |   |   |   | 60,270 |   |
|                                                                                          |   |                           |    |   |                         |   |    |   |   |   |    |   |   |   |   |   |
| Tax effect                                                                                    |   |                           | 12,408  |   |                         |   | 2,557   |   |   |   | (12,048 | )      |   |   | 5,993 |   |
| Other comprehensive income (loss), net of tax                                                 |   |                           | (24,086 | )      |                         |   | (4,964  | )      |   |   | 23,388  |   |   |   | (11,635 | ) |
|                                                                                          |   |                           |    |   |                         |   |    |   |   |   |    |   |   |   |   |   |
| Total comprehensive income (loss)                                                             |   | $                              | 55,557  |   |                         | $      | (22,893 | )      |   | $      | 41,299  |   |   | $ | (22,500 | ) |

----

----

|                                            |   |   |    | Fair Value Measurements Using |                                                       |
|-------------------------------------------------|--------|--------|---------|-------------------------------|------------------------------------------------------------|
|                                            |   | Total  |    |                          | Quoted PricesIn ActiveMarkets forIdentical Assets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
| December 31, 2009                               |   |   |    |                          |                                                       |   |   |   |   |   |   |   |
| Assets:                                         |   |   |    |                          |                                                       |   |   |   |   |   |   |   |
| Investment securities available for sale        |   |   |    |                          |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Corporate bond                                  |   | $      | 441,846 |                          |                                                       | $ | — |   |   | $ | 441,846 |   |   | $ | — |   |
| FNMA mortgage-backed securities                 |   |   | 140,260 |                          |                                                       |   | — |   |   |   | 140,260 |   |   |   | — |   |
| U.S. Government sponsored enterprise securities |   |   | 2,648   |                          |                                                       |   | — |   |   |   | 2,648 |   |   |   | — |   |
| Corporate common stock                          |   |   | 10,000  |                          |                                                       |   | — |   |   |   | 10,000 |   |   |   | — |   |

|                                            |   |    |            | Fair Value Measurements Using |                                                       |
|-------------------------------------------------|--------|---------|-----------------|-------------------------------|------------------------------------------------------------|
|                                            |   | Total   |            |                          | Quoted PricesIn ActiveMarkets forIdentical Assets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
| June 30, 2009                                   |   |    |            |                          |                                                       |   |   |   |   |   |   |   |
| Assets:                                         |   |    |            |                          |                                                       |   |   |   |   |   |   |   |
| Investment securities available for sale        |   |    |            |                          |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Corporate bond                                  |   | $  |  1,328,193 |                          |                                                       | $  |  — |   |   | $  |  1,328,193 |   |   | $  |  — |   |
| FHLMC mortgage-backed securities                |   |    | 28,200          |                          |                                                       |   | — |   |   |   | 28,200 |   |   |   | — |   |
| FNMA mortgage-backed securities                 |   |    | 197,184         |                          |                                                       |   | — |   |   |   | 197,184 |   |   |   | — |   |
| U.S. Government sponsored enterprise securities |   |    | 1,198           |                          |                                                       |   | — |   |   |   | 1,198 |   |   |   | — |   |
| Corporate common stock                          |   |    | 10,000          |                          |                                                       |   | — |   |   |   | 10,000 |   |   |   | — |   |

----

----

|                            |   |              |   |   |          |   |   |           |   |   |      |   |
|---------------------------------|--------|-------------------|--------|--------|---------------|--------|--------|----------------|--------|--------|-----------|--------|
|                            |   | December 31, 2009 |   |   | June 30, 2009 |   |
|                            |   | CarryingAmount    |   |   | FairValue     |   |   | CarryingAmount |   |   | FairValue |   |
|                            |   |              |   |
|                            |   | (In thousands)    |   |
| Financial assets                |   |              |   |   |          |   |   |           |   |   |      |   |
| Cash and cash equivalents       |   | $                 | 2,656  |   |          | $      | 2,656  |           |   | $      | 2,375     |   |   | $ | 2,375 |   |
| Certificates of deposit         |   |              | 494    |   |          |   | 494    |           |   |   | 4,451     |   |   |   | 4,451 |   |
| Securities available for sale   |   |              | 595    |   |          |   | 595    |           |   |   | 1,565     |   |   |   | 1,565 |   |
| Federal Home Loan Bank stock    |   |              | 1,252  |   |          |   | 1,252  |           |   |   | 1,147     |   |   |   | 1,147 |   |
| Loans, net                      |   |              | 67,083 |   |          |   | 69,037 |           |   |   | 62,189    |   |   |   | 63,721 |   |
| Accrued interest receivable     |   |              | 256    |   |          |   | 256    |           |   |   | 277       |   |   |   | 277 |   |
|                            |   |              |   |   |          |   |   |           |   |   |      |   |   |   |   |   |
| Financial liabilities           |   |              |   |   |          |   |   |           |   |   |      |   |   |   |   |   |
| Deposits                        |   |              | 50,403 |   |          |   | 49,650 |           |   |   | 48,099    |   |   |   | 47,390 |   |
| Federal Home Loan Bank advances |   |              | 18,603 |   |          |   | 19,001 |           |   |   | 20,150    |   |   |   | 20,648 |   |

|   | ● | Those comprising events or transactions providing additional evidence about conditions that existed at the balance sheet date, including estimates inherent in the financial statement preparation process (referred to as recognized subsequent events). |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                      |
|   | ● | Those comprising events that provide evidence about conditions not existing at the balance sheet date but, rather, that arose after such date (referred to as non-recognized subsequent events).                                                          |

----

----

----

----

----

|                                      |   | Three Months Ended December 31, 2009Compared to Three MonthsEnded December 31, 2008 |    |
|-------------------------------------------|--------|-------------------------------------------------------------------------------------|---------|
|                                      |   | Volume                                                                              |    |   | Rate |   |   | Netchange |   |
|                                      |   |                                                                                |    |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                  |   |                                                                                |    |   |   |   |   |   |   |   |   |   |
| Loans                                     |   | $                                                                                   | 167,000 |   |   | $ | (91,000 | ) |   | $ | 76,000 |   |
| Investment securities                     |   |                                                                                | (6,000  | ) |   |   | (9,000 | ) |   |   | (15,000 | ) |
| Federal Home Loan Bank stock              |   |                                                                                | 4,000   |   |   |   | (10,000 | ) |   |   | (6,000 | ) |
| Interest-earning deposits                 |   |                                                                                | (4,000  | ) |   |   | (10,000 | ) |   |   | (14,000 | ) |
| Total interest-earning assets             |   | $                                                                                   | 161,000 |   |   | $ | (120,000 | ) |   | $ | 41,000 |   |
| Interest-bearing liabilities:             |   |                                                                                |    |   |   |   |   |   |   |   |   |   |
| Savings deposits                          |   | $                                                                                   | 1,000   |   |   | $ | 2,000 |   |   | $ | 3,000 |   |
| NOW accounts                              |   |                                                                                | 5,000   |   |   |   | (9,000 | ) |   |   | (4,000 | ) |
| Money market accounts                     |   |                                                                                | 31,000  |   |   |   | (47,000 | ) |   |   | (16,000 | ) |
| Certificates of deposit                   |   |                                                                                | (16,000 | ) |   |   | (72,000 | ) |   |   | (88,000 | ) |
| Total deposits                            |   |                                                                                | 21,000  |   |   |   | (126,000 | ) |   |   | (105,000 | ) |
| Federal Home Loan Bank of Boston advances |   |                                                                                | 109,000 |   |   |   | (119,000 | ) |   |   | (10,000 | ) |
| Total interest-bearing liabilities        |   | $                                                                                   | 130,000 |   |   | $ | (245,000 | ) |   | $ | (115,000 | ) |
| Change in net interest income             |   | $                                                                                   | 31,000  |   |   | $ | 125,000 |   |   | $ | 156,000 |   |

----

|                                                               |   |                                    |   |   |     |    |    |       |   |   |                      |    |   |     |         |   |       |    |
|--------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|----------|---------|---------|------------|--------|--------|---------------------------|---------|--------|----------|--------------|--------|------------|---------|
|                                                               |   | For the Three Months Ended December 31, |   |
|                                                               |   | 2009                                    |   |   | 2008     |    |
|                                                               |   | AverageOutstandingBalance               |   |   | Interest |    |    | Yield/Rate |   |   | AverageOutstandingBalance |    |   | Interest |         |   | Yield/Rate |    |
|                                                               |   | (Dollars in Thousands)                  |   |
| Interest-earning assets:                                           |   |                                    |   |   |     |    |    |       |   |   |                      |    |   |     |         |   |       |    |
| Loans                                                              |   | $                                       | 66,299 |   |     | $       | 1,020   |       |   |   |  6.16                | %  |   | $   |  59,030 |   |       | $  |  944 |   |   |   | 6.40 | % |
| Investment securities(1)                                           |   |                                    | 873    |   |     |    | 10      |       |   |   | 4.41                      | %       |   |     | 1,276        |   |       |    | 25 |   |   |   | 7.78 | % |
| Federal Home Loan Bank stock                                       |   |                                    | 1,237  |   |     |    | — |       |   |   | 0.00                      | %       |   |     | 907          |   |       |    | 6 |   |   |   | 2.50 | % |
| Interest-earning deposits                                          |   |                                    | 3,980  |   |     |    | 24      |       |   |   | 2.39                      | %       |   |     | 4,545        |   |       |    | 37 |   |   |   | 3.33 | % |
| Total interest-earning assets                                      |   |                                    | 72,389 |   |     | $       | 1,054   |       |   |   | 5.82                      | %       |   |     | 65,758       |   |       | $       | 1,012 |   |   |   | 6.16 | % |
| Non-interest-earning assets                                        |   |                                    | 4,327  |   |     |    |    |       |   |   |                      |    |   |     | 3,854        |   |       |    |   |   |   |   |   |   |
| Total assets                                                       |   | $                                       | 76,716 |   |     |    |    |       |   |   |                      |    |   | $        | 69,612       |   |       |    |   |   |   |   |   |   |
|                                                               |   |                                    |   |   |     |    |    |       |   |   |                      |    |   |     |         |   |       |    |   |   |   |   |   |   |
| Interest-bearing liabilities:                                      |   |                                    |   |   |     |    |    |       |   |   |                      |    |   |     |         |   |       |    |   |   |   |   |   |   |
| Savings deposits                                                   |   | $                                       | 3,468  |   |     | $  |  7 |       |   |   | 0.86                      | %       |   | $        | 2,847        |   |       | $       | 5 |   |   |   | 0.63 | % |
| NOW accounts                                                       |   |                                    | 2,663  |   |     |    | 5       |       |   |   | 0.78                      | %       |   |     | 2,165        |   |       |    | 9 |   |   |   | 1.72 | % |
| Money market accounts                                              |   |                                    | 12,372 |   |     |    | 48      |       |   |   | 1.53                      | %       |   |     | 9,993        |   |       |    | 63 |   |   |   | 2.52 | % |
| Certificates of deposit                                            |   |                                    | 28,337 |   |     |    | 189     |       |   |   | 2.67                      | %       |   |     | 30,244       |   |       |    | 277 |   |   |   | 3.67 | % |
| Total interest-bearing deposits                                    |   |                                    | 46,840 |   |     |    | 249     |       |   |   | 2.13                      | %       |   |     | 45,249       |   |       |    | 354 |   |   |   | 3.13 | % |
| FHLB advances                                                      |   |                                    | 20,392 |   |     |    | 175     |       |   |   | 3.44                      | %       |   |     | 15,290       |   |       |    | 185 |   |   |   | 4.83 | % |
| Total interest-bearing liabilities                                 |   | $                                       | 67,232 |   |     | $  | 424     |       |   |   | 2.52                      | %       |   | $        | 60,539       |   |       | $       | 539 |   |   |   | 3.56 | % |
|                                                               |   |                                    |   |   |     |    |    |       |   |   |                      |    |   |     |         |   |       |    |   |   |   |   |   |   |
| Non-interest-bearing liabilities:                                  |   |                                    |   |   |     |    |    |       |   |   |                      |    |   |     |         |   |       |    |   |   |   |   |   |   |
| Demand deposits                                                    |   | $                                       | 3,285  |   |     |    |    |       |   |   |                      |    |   | $        | 3,037        |   |       |    |   |   |   |   |   |   |
| Other non-interest-bearing                                         |   |                                    |   |   |     |    |    |       |   |   |                      |    |   |     |         |   |       |    |   |   |   |   |   |   |
| liabilities                                                        |   |                                    | 178    |   |     |    |    |       |   |   |                      |    |   |     | 164          |   |       |    |   |   |   |   |   |   |
| Total liabilities                                                  |   |                                    | 70,695 |   |     |    |    |       |   |   |                      |    |   |     | 63,740       |   |       |    |   |   |   |   |   |   |
| Total capital                                                      |   |                                    | 6,021  |   |     |    |    |       |   |   |                      |    |   |     | 5,872        |   |       |    |   |   |   |   |   |   |
| Total liabilities and capital                                      |   | $                                       | 76,716 |   |     |    |    |       |   |   |                      |    |   | $        | 69,612       |   |       |    |   |   |   |   |   |   |
|                                                               |   |                                    |   |   |     |    |    |       |   |   |                      |    |   |     |         |   |       |    |   |   |   |   |   |   |
| Net interest income                                                |   |                                    |   |   |     | $       | 630     |       |   |   |                      |    |   |     |         |   |       | $       | 474 |   |   |   |   |   |
| Net interest rate spread(2)                                        |   |                                    |   |   |     |    |    |       |   |   | 3.30                      | %       |   |     |         |   |       |    |   |   |   |   | 2.60 | % |
| Net interest-earning assets(3)                                     |   | $                                       | 5,157  |   |     |    |    |       |   |   |                      |    |   | $        | 5,219        |   |       |    |   |   |   |   |   |   |
| Net interest margin(4)                                             |   |                                    |   |   |     |    |    |       |   |   | 3.48                      | %       |   |     |         |   |       |    |   |   |   |   | 2.88 | % |
| Average of interest-earning assets to interest-bearing liabilities |   |                                    | 107.67 | %      |     |    |    |       |   |   |                      |    |   |     | 108.62       | %      |       |    |   |   |   |   |   |   |

|   |                                                                                                                                                          |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (1)    | Consists entirely of taxable investment securities.                                                                                                           |
| (2)    | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
| (3)    | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.                                                 |
| (4)    | Net interest margin represents net interest income divided by average total interest-earning assets.                                                     |

----

----

|                                      |   | Six Months Ended December 31, 2009Compared to Six MonthsEnded December 31, 2008 |    |
|-------------------------------------------|--------|---------------------------------------------------------------------------------|---------|
|                                      |   | Volume                                                                          |    |   | Rate |   |   | Netchange |   |
|                                      |   |                                                                            |    |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                  |   |                                                                            |    |   |   |   |   |   |   |   |   |   |
| Loans                                     |   | $                                                                               | 208,000 |   |   | $ | (142,000 | ) |   | $ | 66,000 |   |
| Investment securities                     |   |                                                                            | (8,000  | ) |   |   | (12,000 | ) |   |   | (20,000 | ) |
| Federal Home Loan Bank stock              |   |                                                                            | 3,000   |   |   |   | (16,000 | ) |   |   | (13,000 | ) |
| Interest-earning deposits                 |   |                                                                            | 16,000  |   |   |   | (27,000 | ) |   |   | (11,000 | ) |
| Total interest-earning assets             |   | $                                                                               | 220,000 |   |   | $ | (198,000 | ) |   | $ | 22,000 |   |
| Interest-bearing liabilities:             |   |                                                                            |    |   |   |   |   |   |   |   |   |   |
| Savings deposits                          |   | $                                                                               | -       |   |   | $ | 4,000 |   |   | $ | 4,000 |   |
| NOW accounts                              |   |                                                                            | 3,000   |   |   |   | (10,000 | ) |   |   | (7,000 | ) |
| Money market accounts                     |   |                                                                            | 23,000  |   |   |   | (60,000 | ) |   |   | (37,000 | ) |
| Certificates of deposit                   |   |                                                                            | (18,000 | ) |   |   | (128,000 | ) |   |   | (146,000 | ) |
| Total deposits                            |   |                                                                            | 8,000   |   |   |   | (194,000 | ) |   |   | (186,000 | ) |
|                                      |   |                                                                            |    |   |   |   |   |   |   |   |   |   |
| Federal Home Loan Bank of Boston advances |   |                                                                            | 111,000 |   |   |   | (121,000 | ) |   |   | (10,000 | ) |
| Total interest-bearing liabilities        |   | $                                                                               | 120,000 |   |   | $ | (316,000 | ) |   | $ | (196,000 | ) |
| Change in net interest income             |   | $                                                                               | 100,000 |   |   | $ | 118,000 |   |   | $ | 218,000 |   |

----

|                                                               |   |                                  |   |   |     |   |   |       |   |   |                      |   |   |     |   |   |       |   |
|--------------------------------------------------------------------|--------|---------------------------------------|--------|--------|----------|--------|--------|------------|--------|--------|---------------------------|--------|--------|----------|--------|--------|------------|--------|
|                                                               |   | For the Six Months Ended December 31, |   |
|                                                               |   | 2009                                  |   |   | 2008     |   |
|                                                               |   | AverageOutstandingBalance             |   |   | Interest |   |   | Yield/Rate |   |   | AverageOutstandingBalance |   |   | Interest |   |   | Yield/Rate |   |
|                                                               |   | (Dollars in Thousands)                |   |
|                                                               |   |                                  |   |   |     |   |   |       |   |   |                      |   |   |     |   |   |       |   |
| Interest-earning assets:                                           |   |                                  |   |   |     |   |   |       |   |   |                      |   |   |     |   |   |       |   |
| Loans                                                              |   | $                                     | 64,913 |   |     | $      | 1,986  |       |   |   | 6.12                      | %      |   | $        | 58,311 |   |       | $      | 1,920 |   |   |   | 6.59 | % |
| Investment securities(1)                                           |   |                                  | 1,034  |   |     |   | 23     |       |   |   | 4.55                      | %      |   |     | 1,324  |   |       |   | 44 |   |   |   | 6.65 | % |
| Federal Home Loan Bank stock                                       |   |                                  | 1,210  |   |     |   | -      |       |   |   | 0.00                      | %      |   |     | 904    |   |       |   | 12 |   |   |   | 2.76 | % |
| Interest-earning deposits                                          |   |                                  | 4,930  |   |     |   | 57     |       |   |   | 2.30                      | %      |   |     | 3,778  |   |       |   | 67 |   |   |   | 3.56 | % |
| Total interest-earning assets                                      |   |                                  | 72,087 |   |     | $      | 2,066  |       |   |   | 5.73                      | %      |   |     | 64,317 |   |       | $      | 2,043 |   |   |   | 6.35 | % |
| Non-interest-earning assets                                        |   |                                  | 4,226  |   |     |   |   |       |   |   |                      |   |   |     | 4,044  |   |       |   |   |   |   |   |   |   |
| Total assets                                                       |   | $                                     | 76,313 |   |     |   |   |       |   |   |                      |   |   | $        | 68,361 |   |       |   |   |   |   |   |   |   |
|                                                               |   |                                  |   |   |     |   |   |       |   |   |                      |   |   |     |   |   |       |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                      |   |                                  |   |   |     |   |   |       |   |   |                      |   |   |     |   |   |       |   |   |   |   |   |   |   |
| Savings deposits                                                   |   | $                                     | 3,376  |   |     | $      | 15     |       |   |   | 0.88                      | %      |   | $        | 3,475  |   |       | $      | 11 |   |   |   | 0.66 | % |
| NOW accounts                                                       |   |                                  | 2,577  |   |     |   | 10     |       |   |   | 0.77                      | %      |   |     | 2,124  |   |       |   | 17 |   |   |   | 1.57 | % |
| Money market accounts                                              |   |                                  | 11,877 |   |     |   | 90     |       |   |   | 1.52                      | %      |   |     | 9,833  |   |       |   | 127 |   |   |   | 2.59 | % |
| Certificates of deposit                                            |   |                                  | 28,367 |   |     |   | 402    |       |   |   | 2.83                      | %      |   |     | 29,352 |   |       |   | 549 |   |   |   | 3.74 | % |
| Total interest-bearing deposits                                    |   |                                  | 46,197 |   |     |   | 517    |       |   |   | 2.24                      | %      |   |     | 44,784 |   |       |   | 704 |   |   |   | 3.14 | % |
| FHLB advances                                                      |   |                                  | 20,565 |   |     |   | 366    |       |   |   | 3.56                      | %      |   |     | 15,183 |   |       |   | 376 |   |   |   | 4.95 | % |
| Total interest-bearing liabilities                                 |   | $                                     | 66,762 |   |     | $      | 883    |       |   |   | 2.65                      | %      |   | $        | 59,967 |   |       | $      | 1,080 |   |   |   | 3.60 | % |
|                                                               |   |                                  |   |   |     |   |   |       |   |   |                      |   |   |     |   |   |       |   |   |   |   |   |   |   |
| Non-interest-bearing liabilities:                                  |   |                                  |   |   |     |   |   |       |   |   |                      |   |   |     |   |   |       |   |   |   |   |   |   |   |
| Demand deposits                                                    |   | $                                     | 3,366  |   |     |   |   |       |   |   |                      |   |   | $        | 2,804  |   |       |   |   |   |   |   |   |   |
| Other non-interest-bearing liabilities                             |   |                                  | 193    |   |     |   |   |       |   |   |                      |   |   |     | 237    |   |       |   |   |   |   |   |   |   |
| Total liabilities                                                  |   |                                  | 70,321 |   |     |   |   |       |   |   |                      |   |   |     | 63,008 |   |       |   |   |   |   |   |   |   |
| Total capital                                                      |   |                                  | 5,992  |   |     |   |   |       |   |   |                      |   |   |     | 5,353  |   |       |   |   |   |   |   |   |   |
| Total liabilities and capital                                      |   | $                                     | 76,313 |   |     |   |   |       |   |   |                      |   |   | $        | 68,361 |   |       |   |   |   |   |   |   |   |
|                                                               |   |                                  |   |   |     |   |   |       |   |   |                      |   |   |     |   |   |       |   |   |   |   |   |   |   |
| Net interest income                                                |   |                                  |   |   |     | $      | 1,183  |       |   |   |                      |   |   |     |   |   |       | $      | 964 |   |   |   |   |   |
| Net interest rate spread(2)                                        |   |                                  |   |   |     |   |   |       |   |   | 3.09                      | %      |   |     |   |   |       |   |   |   |   |   | 2.75 | % |
| Net interest-earning assets(3)                                     |   | $                                     | 5,325  |   |     |   |   |       |   |   |                      |   |   | $        | 4,350  |   |       |   |   |   |   |   |   |   |
| Net interest margin(4)                                             |   |                                  |   |   |     |   |   |       |   |   | 3.28                      | %      |   |     |   |   |       |   |   |   |   |   | 3.00 | % |
| Average of interest-earning assets to interest-bearing liabilities |   |                                  | 107.98 | %      |     |   |   |       |   |   |                      |   |   |     | 107.25 | %      |       |   |   |   |   |   |   |   |

|   |                                                                                                                                                          |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)    | Consists entirely of taxable investment securities.                                                                                                           |
| (2)    | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
| (3)    | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.                                                 |
| (4)    | Net interest margin represents net interest income divided by average total interest-earning assets.                                                          |

----

----

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

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

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

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

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

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

----

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

| Director Nominee  |   | For                      |   | Withheld               |
|-------------------|--------|--------------------------|--------|------------------------|
| Peter E. Chalke   |   | 414,757  95.5% |   | 19,475  4.5% |
| Thomas J. Dean    |   | 414,732  95.5% |   | 19,500  4.5% |
| Sharon A. Millett |   | 414,757  95.5% |   | 19,475  4.5% |

| For                     |   | 375,269   |
|-------------------------|--------|-----------|
| Against                 |   | 28,150    |
| AbstainBroker Non-Votes |   | 15024,137 |

| For                     |   | 424,232 |
|-------------------------|--------|---------|
| Against                 |   | 10,000  |
| AbstainBroker Non-Votes |   | 00      |

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

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

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

----

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

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

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

----

|                               |   |      |   Auburn Bancorp, Inc.                  |
|------------------------------------|--------|-----------|---------------------------------------------------|
|                               |   |      |   (Registrant)                          |
|                               |   |      |                                              |
|                               |   |      |                                              |
| Date:  February 12, 2010 |   | By:  |   /s/  Allen T. Sterling      |
|                               |   |      |   Allen T. Sterling                     |
|                               |   |      |   President and Chief Executive Officer |
|                               |   |      |                                              |
|                               |   |      |                                              |
| Date:  February 12, 2010 |   | By:  |   /s/  Rachel A. Haines       |
|                               |   |      |   Rachel A. Haines                      |
|                               |   |      |   Principal Financial Officer           |