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| UNITED STATES                      |
|------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION |
| Washington, DC  20549    |
|                               |
| FORM 10-Q                          |
| (Mark One)                         |
| [X]                           | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 |

| For the quarterly period ended: | September 30, 2009 |   |
|---------------------------------|-------------------------|--------|
|  OR                        |

| [  ]  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 |
|-----------------|-----------------------------------------------------------------------------------------|

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

| Commission file number: | 000-52694 |   |
|-------------------------|-----------|--------|

|                                                          |
|---------------------------------------------------------------|
| QUAINT OAK BANCORP, INC.                                      |
| (Exact name of registrant as specified in its charter)        |
|                                                          |
| Pennsylvania                                                  |   | 35-2293957 |
| (State or other jurisdiction ofincorporation or organization) |   | (IRS Employer Identification No.) |
|                                                          |
| 607 Lakeside Drive, Southampton, Pennsylvania 18966                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (Address of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (215) 364-4059                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (Registrant’s telephone number)                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (Former name, former address and former fiscal year, if changed since last report)                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for suchshorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  [X ]    No  [   ]                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was requiredto submit and post such files).  Yes [   ]    No   [   ] |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):                                                                                                                                           |
| Large accelerated filer    [  ]                                                                                                                                                                                                                                                                                                                                                                                                              | Accelerated filer        [  ] |
|  Non-accelerated filer     [  ]                                                                                                                                                                                                                                                                                                                                                                                               | Smaller reporting company     [X] |
| (Do not check if a smaller reporting company)                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     [  ] Yes   [X] No                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:  As of November 3, 2009, 1,299,712 shares of common stock were issued and outstanding.                                                                                                                                                                                                                                   |

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| Page          |
|---------------|
| PART I   |  -           FINANCIAL INFORMATION |
|          |
| Item 1:  |  Financial Statements: |
|          |   |
|          |   | Consolidated Balance Sheets as of September 30, 2009 and December 31, 2008 (Unaudited) | 1 |
|          |   |   |
|          |   | Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2009 |   |
|          |   |  and 2008 (Unaudited) | 2 |
|          |   |   |   |
|          |   | Consolidated Statement of Stockholders' Equity for the Nine Months Ended September 30, 2009 |   |
|          |   |  (Unaudited) | 3 |
|          |   |   |   |
|          |   | Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2009 and 2008 |   |
|          |   |  (Unaudited) | 4 |
|          |   |   |   |
|          |   | Notes to Unaudited Consolidated Financial Statements |  5 |
|          |   |   |   |
| Item 2:       | Management's Discussion and Analysis of Financial Condition and Results of Operations |  17 |
|          |   |   |   |
| Item 3:       | Quantitative and Qualitative Disclosures About Market Risk |  27 |
|          |   |   |   |
| Item 4:       | Controls and Procedure |  27 |
|          |   |   |   |
| PART II       |  - | OTHER INFORMATION |   |
|          |   |   |   |
| Item 1:       |    Legal Proceedings |  28 |
|          |   |   |   |
| Item 1A:      | Risk Factors |  28 |
|          |   |   |   |
| Item 2:       | Unregistered Sales of Equity Securities and Use of Proceeds |  28 |
|          |   |   |   |
| Item 3:       | Defaults Upon Senior Securities |  28 |
|          |   |   |   |
| Item 4:       | Submission of Matters to a Vote of Security Holders |  28 |
|          |   |   |   |
| Item 5:       | Other Information |  29 |
|          |   |   |   |
|  Item 6: | Exhibits |  29 |
|          |
| SIGNATURES    |

----

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|                                                                                                                                                                                                                                                    |   |           |           |   |   |   |           |   | At September 30, | At December 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|----------------|--------|--------|--------|----------------|--------|------------------|-----------------|--------|
|                                                                                                                                                                                                                                                    |   |           |           |   |   |   |           |   | 2009             |            |   | 2008 |   |
| ASSETS                                                                                                                                                                                                                                                  |   | (In Thousands) |           |
|                                                                                                                                                                                                                                                    |   |           |           |   |   |   |           |   |             |            |   |   |   |
| Due from banks, non-interest-bearing                                                                                                                                                                                                                    |   | $              | 394            |   |   | $      | 490            |   |
| Due from banks, interest-bearing                                                                                                                                                                                                                        |   |           | 6,351          |   |   |   |  545      |   |
|      Cash and cash equivalents                                                                                                                                                                                                      |   |           | 6,745          |   |   |   | 1,035          |   |
| Investment in interest-earning time deposits                                                                                                                                                                                                            |   |           | 3,634          |   |   |   | 3,735          |   |
| Investment securities held to maturity (estimated fair value-2009     $250; 2008 $2,263)                                                                                                                                            |   |           |  250      |   |   |   |  2,250    |   |
| Mortgage-backed securities held to maturity (estimated fair value-     2009 $8,803; 2008 $10,132)                                                                                                                              |   |           |  8,306    |   |   |   |  9,777    |   |
| Loans receivable, net of allowance for loan losses     $2009 806; 2008 $689                                                                                                                                                         |   |           | 71,024         |   |   |   | 69,310         |   |
| Accrued interest receivable                                                                                                                                                                                                                             |   |           | 407            |   |   |   | 355            |   |
| Investment in Federal Home Loan Bank stock, at cost                                                                                                                                                                                                     |   |           | 797            |   |   |   | 797            |   |
| Premises and equipment, net                                                                                                                                                                                                                             |   |           | 1,098          |   |   |   | 67             |   |
| Other real estate owned                                                                                                                                                                                                                                 |   |           | 931            |   |   |   | 732            |   |
| Prepaid expenses and other assets                                                                                                                                                                                                                       |   |           |  376      |   |   |   | 323            |   |
|                                                                                                                                                                                                                                                    |   |           |           |   |   |   |           |   |
| Total Assets                                                                                                                                                                                                                                            |   | $              | 93,568         |   |   | $      | 88,381         |   |
|                                                                                                                                                                                                                                                    |   |           |           |   |   |   |           |   |             |            |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                    |   |           |           |   |   |   |           |   |             |            |   |   |   |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                                                                                             |   |           |           |   |   |   |           |   |
| Deposits, interest-bearing                                                                                                                                                                                                                              |   |           | $              | 68,260 |   |   | $              | 58,981 |             |
| Federal Home Loan Bank advances                                                                                                                                                                                                                         |   |           | 6,850          |   |   |   | 11,150         |   |
| Other borrowings                                                                                                                                                                                                                                        |   |           | 447            |   |   |   | -              |   |
| Accrued interest payable                                                                                                                                                                                                                                |   |           | 129            |   |   |   | 138            |   |
| Advances from borrowers for taxes and insurance                                                                                                                                                                                                         |   |           | 490            |   |   |   | 729            |   |
| Accrued expenses and other liabilities                                                                                                                                                                                                                  |   |           |  160      |   |   |   |  110      |   |
| Total Liabilities                                                                                                                                                                                                                                       |   |           | 76,336         |   |   |   | 71,108         |   |
|                                                                                                                                                                                                                                                    |   |           |           |   |   |   |           |   |
| STOCKHOLDERS' EQUITY                                                                                                                                                                                                                                    |   |           |           |   |   |   |           |   |
| Preferred stock– $0.01 par value, 1,000,000 shares authorized;      none issued or outstanding                                                                                                                                |   |           |  -        |   |   |   |  -        |   |
| Common stock – $0.01 par value; 9,000,000 shares    authorized; 1,388,625 issued and 1,300,912 and 1,352,021     outstanding at September 30, 2009 and December 31, 2008,     respectively |   |           |   14 |   |   |   |   14 |   |
| Additional paid-in capital                                                                                                                                                                                                                              |   |           | 13,414         |   |   |   | 13,409         |   |
| Treasury stock, at cost: 2009 87,713 shares; 2008 36,604 shares                                                                                                                                                                                         |   |           | (725           | )      |   |   | (312           | )      |
| Unallocated common stock held by:                                                                                                                                                                                                                       |   |           |           |   |   |   |           |   |
|      Employee Stock Ownership Plan (ESOP)                                                                                                                                                                                      |   |           |  (900     | )      |   |   | (952           | )      |
|      Recognition & Retention Plan Trust (RRP)                                                                                                                                                                                   |   |           | (440           | )      |   |   | (520           | )      |
| Retained earnings                                                                                                                                                                                                                                       |   |           |  5,869    |   |   |   |  5,634    |   |
| Total Stockholders' Equity                                                                                                                                                                                                                              |   |           | 17,232         |   |   |   | 17,273         |   |
|                                                                                                                                                                                                                                                    |   |           |           |   |   |   |           |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                                                                                                        |   | $              | 93,568         |   |   | $      | 88,381         |   |

----

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|                      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             | For the Three Months Ended                                                                                                                                            |                                                                                                                                 | For the NineMonths Ended                                                                                                                     |
|---------------------------|--------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------|------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
|                      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |    September 30,                                                                                                                                                 |                                                                                                                                 | September 30,                                                                                                                                |
|                      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             | 2009                                                                                                                                                                       |                                                                                                                                 | 2008                                                                                                                                         |   | 2009 |   |   | 2008 |
| Interest Income           | (In thousands, except share data)                |
|                      | Loans receivable, including fees                 | $                    1,232 | $                1,089                                         |                                        | $            3,637                                   |      $               3,261                                                       |
|                      | Short-term investments and investment securities | 128                                                                                                                            | 156                                                                                                                                            |                                        | 444                                                                                                              |                          420                       |
|                      | Dividends                                        |        -                                                                                    |                                                                                                                                           |        4 |                                                                                                             |         -                                                                                                                          |                                                                                                                                 |                         9 |
|                      |                                             | Total Interest Income                                                                                                          | 1,360                                                                                                                                          |                                        |    1,249                                                                                               |                                                                                                                                                                       | 4,081                                                                                                                                |                                                                                                                                         |                  3,690 |
|                      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |                                                                                                                                                                       |                                                                                                                                 |
| Interest Expense          |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |
|                      | Deposits                                         |                                                                                                                           | 538                                                                                                                                            | 547                                         |                                                                                                             | 1,658                                                                                                                                                                      |                       1,738 |
|                      | Federal Home Loan Bank and other borrowings      |        71                                                                                   |                                                                                                                                           |      59            |                                                                                                             |    223                                                                                                                                                      |                                                                                                                                 |                      90             |
|                      |                                             | Total Interest Expense                                                                                                         |    609                                                                                                                          |                                        |    606                                                                                            |                                                                                                                                                                       | 1,881                                                                                                                                |                                                                                                                                         |                  1,828 |
|                      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |                                                                                                                                                                       |                                                                                                                                 |                                                                                                                                         |
|                      |                                             | Net Interest Income                                                                                                            | 751                                                                                                                                            | 643                                         |                                                                                                             | 2,200                                                                                                                                                                      |                       1,862 |
|                      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |                                                                                                                                                                       |                                                                                                                                 |                                                                                                                                         |   |   |
| Provision for Loan Losses |      44                 |                                                                                                                           |      31                                                                                                               |                                        |      129                                                                                |                                                                                                                                                                       |                       97    |
|                      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |
|                      |                                             | Net Interest Income after Provision for Loan Losses                                                                            | 707                                                                                                                                            | 612                                         |                                                                                                             | 2,071                                                                                                                                                                      |                       1,765 |
|                      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |                                                                                                                                                                       |                                                                                                                                 |                                                                                                                                         |   |   |
| Non-Interest Income       |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |
|                      | Fees and services charges                        | 81                                                                                                                             | 6                                                                                                                                              |                                        | 125                                                                                                              |                            36            |
|                      | Investment securities losses                     |          -                                                                        |                                                                                                                                           |      (2            | )                                                                                                                |           -                                                                                                              |                                                                                                                                 |    (22)                                                                                                                       |
|                      | Total Non-Interest Income                        |     81                                                                                                     |                                                                                                                                           |      4             |                                                                                                             |     125                                                                                                                                                |                                                                                                                                 |                      14                  |
|                      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |                                                                                                                                                                       |
| Non-Interest Expense      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |
|                      | Salaries and employee benefits                   | 282                                                                                                                            | 218                                                                                                                                            |                                        | 754                                                                                                              |                          610                       |
|                      | Directors' fees and expenses                     | 63                                                                                                                             | 62                                                                                                                                             |                                        | 196                                                                                                              |                          174                       |
|                      | Occupancy and equipment                          | 40                                                                                                                             | 25                                                                                                                                             |                                        | 86                                                                                                               |                            72            |
|                      | Professional fees                                | 58                                                                                                                             | 57                                                                                                                                             |                                        | 261                                                                                                              |                          167                       |
|                      | FDIC deposit insurance assessment                | 48                                                                                                                             | 18                                                                                                                                             |                                        | 131                                                                                                              |                            51            |
|                      | Other real estate owned expenses                 | 25                                                                                                                             | -                                                                                                                                              |                                        | 97                                                                                                               |                              - |
|                      | Other                                            |      44                                                                                               |                                                                                                                                           |      21            |                                                                                                             |    113                                                                                                                                                      |                                                                                                                                 |                      90                  |
|                      | Total Non-Interest Expense                       |    560                                                                                                          |                                                                                                                                           |    401                       |                                                                                                             | 1,638                                                                                                                                                                      |                                                                                                                                 |                 1,164                                             |
|                      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |                                                                                                                                                                       |
|                      | Income before Income Taxes                       | 228                                                                                                                            | 215                                                                                                                                            |                                        | 558                                                                                                              |                          615                       |
|                      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |                                                                                                                                                                       |
| Income Taxes              |      89                 |                                                                                                                           |      92                                                                                                               |                                        |    220                                                                                            |                                                                                                                                                                       |                     248               |
|                      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |
|                      |                                             | Net Income                                                                                                                     | $                       139 |                                        | $                  123 |                                                                                                                                                                       | $               338                                       |                                                                                                                                         | $                  367 |
|                      |                                             |                                                                                                                           |                                                                                                                                           |                                        |                                                                                                             |                                                                                                                                                                       |                                                                                                                                 |
|                      |                                             |  Earnings per share - basic                                                                                               | $                      0.12      |                                        | $                 0.10      |                                                                                                                                                                       |  $              0.29                                      |                                                                                                                                         | $                   .29 |
|                      |                                             |  Average shares outstanding - basic                                                                                       | 1,145,673                                                                                                                                      |                                        |  1,226,199                                                                                                  |                                                                                                                                                                       |  1,171,670                                                                                                                      |                                                                                                                                         |           1,255,655 |
|                      |                                             |  Earnings per share - diluted                                                                                             | $                      0.12                |                                        | $                 0.10           |                                                                                                                                                                       |  $              0.29                                           |                                                                                                                                         | $                   .29 |
|                      |                                             |  Average shares outstanding - diluted                                                                                     | 1,145,923                                                                                                                                      |                                        |  1,229,151                                                                                                  |                                                                                                                                                                       |  1,171,951                                                                                                                      |                                                                                                                                         |           1,258,257 |

----

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| Nine Months Ended September 30, 2009                                                                   |                        |         |      |   |   |   |                     |   |           |   |                                                   |               |                                 |   |          |                   |   |   |
|--------------------------------------------------------------------------------------------------------|-----------------------------|--------------|-----------|--------|--------|--------|--------------------------|--------|----------------|--------|--------------------------------------------------------|--------------------|--------------------------------------|--------|---------------|------------------------|--------|--------|
|                                                                                                   |                        |         |      |   |   |   |                     |   |           |   |                                                   |               |                                 |   |          |                   |   |   |
|   (In thousands, except share data)                                                          |                        | Common Stock |      |   |   |   |                     |   |           |   |                                                   |               |                                 |   |          |                   |   |   |   |
|                                                                                                   | Number of SharesOutstanding |         |      | Amount |   |   | AdditionalPaid-inCapital |   | Treasury Stock |   |   Unallocated Common Stock Held by ESOP |               | Unallocated Common Stock Held by RRP |   |          |  RetainedEarnings |   |   | Total Stockholders' Equity |   |   |   |
|                                                                                                   |                        |         |      |   |   |   |                     |   |           |   |                                                   |               |                                 |   |          |                   |   |   |   |   |   |   |
|  BALANCE – DECEMBER 31, 2008                                                                |                        |         | 1,352,021 |   |   | $      | 14                       |   |           | $      | 13,409                                                 |     | $                                    | (312   | )   | $                      | (952   | )      |   | $ | (520 | ) |   | $ | 5,634 |   |   | $ | 17,273 |   |
|  Common stock allocated by ESOP                                                                   |                        |         |      |   |   |   |                     |   |           |   |    (7                                        | )                  |                                 |   |          |                   | 52     |   |   |   |     |   |   |   |   |   |   |   | 45 |   |   |   |    |   |
|                                                                                                   |                        |         |      |   |   |   |                     |   |           |   |                                                   |               |                                 |   |          |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury stock purchased                                                                               |                        |         | (51,109   | )      |   |   |                     |   |           |   |                                                   |               |                                 | (413   | )             |                   |   |   |   |   |   |   |   |   |   |   |   |   | (413 | ) |
|                                                                                                   |                        |         |      |   |   |   |                     |   |           |   |                                                   |               |                                 |   |          |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock based compensation expense                                                                       |                        |         |      |   |   |   |                     |   |           |   |  89                                               |               |                                 |   |          |                   |   |   |   |   |   |   |   |   |   |   |   |   | 89  |   |   |   |   |   |
|                                                                                                   |                        |         |      |   |   |   |                     |   |           |   |                                                   |               |                                 |   |          |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Release of vested common stock by the Recognition & Retention Plan Trust  (8,588 shares) |                        |         |      |   |   |   |                     |   |           |   |      (77                                | )                  |                                 |   |          |                   |   |   |   |   | 80 |   |   |   |      (3 | ) |   |   |   - |   |   |   |     |   |
|                                                                                                   |                        |         |      |   |   |   |                     |   |           |   |                                                   |               |                                 |   |          |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared ($0.075 per share)                                                             |                        |         |      |   |   |   |                     |   |           |   |                                                   |               |                                 |   |          |                   |   |   |   |   |   |   |   |   |  (100 | ) |   |   | (100 | ) |   |   |   |   |
|                                                                                                   |                        |         |      |   |   |   |                     |   |           |   |                                                   |               |                                 |   |          |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                             |                        |         |      |   |   |   |                     |   |           |   |                                                   |               |                                 |   |          |                   |   |   |   |   |   |   |   |   | 338  |   |   |   | 338 |   |   |   |   |   |
|                                                                                                   |                        |         |      |   |   |   |                     |   |           |   |                                                   |               |                                 |   |          |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE – September 30, 2009                                                                     |                        |         | 1,300,912 |   |   | $      | 14                       |   |           |   | 13,414                                                 |               | $                                    | (725   | )             | $                      | (900   | )      |   | $ | (440 | ) |   | $ | 5,869 |   |   | $ | 17,232 |   |

----

----

|   | For the Nine Months Ended |
|--------|---------------------------|
|   | September 30,             |
|   | 2009                      |   | 2008 |

| Cash Flows from Operating Activities |                                (In Thousands) |
|--------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Net income                                                                                                    |   | $      | 338    |   |   | $      | 367    |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Adjustments to reconcile net income to net cash provided by operating activities:                             |   |   |   |   |   |   |   |   |
| Provision for loan losses                                                                                     |   |   | 129    |   |   |   | 97     |   |
| Provision for other real estate owned losses                                                                  |   |   | 9      |   |   |   | -      |   |
| Depreciation expense                                                                                          |   |   | 26     |   |   |   | 21     |   |
| Net amortization (accretion) of securities premiums and discounts                                             |   |   | (6     | )      |   |   | -      |   |
| Amortization of deferred loan fees and costs                                                                  |   |   | (10    | )      |   |   | (9     | )      |
| Deferred income tax                                                                                           |   |   | 3      |   |   |   | (36    | )      |
| Stock-based compensation expense                                                                              |   |   | 134    |   |   |   | 96     |   |
|         Loss on securities                                            |   |   | -      |   |   |   | 22     |   |
|         Gain on sale of other real estate owned                       |   |   | -      |   |   |   | (1     | )      |
|         Changes in assets and liabilities which provided (used) cash: |   |   |   |   |   |   |   |   |
|             Accrued interest receivable           |   |   | (52    | )      |   |   | (102   | )      |
|             Prepaid expenses and other assets     |   |   | (56    | )      |   |   | (14    | )      |
|     Accrued interest payable                                                              |   |   | (9     | )      |   |   | 23     |   |
|     Accrued expenses and other liabilities                                                |   |   | 50     |   |   |   | 37     |   |
| Net Cash Provided by Operating Activities                                                                     |   |   | 556    |   |   |   | 501    |   |

| Cash Flows from Investing Activities                                             |   |   |   |   |   |   |    |   |
|----------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|
| Net (increase) decrease in investment in interest-earning time deposits          |   |   | 101    |   |   |   | (756    | )      |
| Purchase of investment securities available for sale                             |   |   | -      |   |   |   | (509    | )      |
| Purchase of investment securities held to maturity                               |   |   | -      |   |   |   | (1,000  | )      |
| Purchase of mortgage-backed securities held to maturity                          |   |   | -      |   |   |   | (10,333 | )      |
| Proceeds from the sale or redemption of investment securities available for sale |   |   | -      |   |   |   | 1,138   |   |
| Proceeds from calls of investment securities held to maturity                    |   |   | 2,000  |   |   |   | 1,000   |   |
| Principal payments on mortgage-backed securities held to maturity                |   |   | 1,477  |   |   |   | 191     |   |
| Net increase in loans receivable                                                 |   |   | (2,041 | )      |   |   | (3,999  | )      |
| Proceeds from the sale of other real estate owned                                |   |   | -      |   |   |   | 82      |   |
| Net increase in Federal Home Loan Bank stock                                     |   |   | -      |   |   |   | (427    | )      |
| Purchase of property and equipment                                               |   |   | (1,057 | )      |   |   | (34     | )      |
| Net Cash Provided by (Used in) Investing Activities                              |   |   | 480    |   |   |   | (14,647 | )      |

| Cash Flows from Financing Activities                                    |   |   |   |   |   |   |   |   |
|-------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net increase in deposits                                                |   |   | 9,279  |   |   |   | 2,137  |   |
| Net increase (decrease) in Federal Home Loan Bank advances              |   |   | (4,300 | )      |   |   | 9,450  |   |
| Proceeds from other borrowings                                          |   |   | 450    |   |   |   | -      |   |
| Repayment of other borrowings                                           |   |   | (3     | )      |   |   | -      |   |
| Dividends paid                                                          |   |   | (100   | )      |   |   | (69    | )      |
| Purchase of common shares for Recognition and Retention Plan            |   |   | -      |   |   |   | (520   | )      |
| Purchase of treasury stock                                              |   |   | (413   | )      |   |   | (93    | )      |
| Decrease in advances from borrowers for taxes and insurance             |   |   | (239   | )      |   |   | (157   | )      |
| Net Cash Provided by Financing Activities                               |   |   | 4,674  |   |   |   | 10,748 |   |
|     Net Increase (Decrease) in Cash and Cash Equivalents |   |   | 5,710  |   |   |   | (3,398 | )      |
| Cash and Cash Equivalents – Beginning of Period                   |   |   | 1,035  |   |   |   | 4,987  |   |
| Cash and Cash Equivalents – End of Period                         |   | $      | 6,745  |   |   | $      | 1,589  |   |

| Supplementary Disclosure of Cash Flow and Non-Cash Information: |   |   |   |   |   |   |   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Cash payments for interest                                      |   | $      | 1,890  |   |   | $      | 1,805  |   |
| Cash payments for income taxes                                  |   | $      | 250    |   |   | $      | 315    |   |
| Transfer of loans to other real estate owned                    |   | $      | 208    |   |   | $      | 81     |   |

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----

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----

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----

| ·   | Amend the other-than-temporary impairment guidance for debt securities to make the guidance more operational and improve the presentation and disclosure in the financial statements.  The new guidance specifies that if a company does not have the intent to sell a debt security prior to recovery and it’s more likely than not that it willnot have to sell the debt security prior to recovery, the security would not be considered other-than-temporary impaired unless there is a credit loss.  The credit loss component of an other-than-temporary impaired debt security must be determined based on the entity’s best estimate of cash flows expected to be collected. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide additional guidance for estimating fair value when the volume and level of activity for the asset and liability have significantly decreased and for identifying circumstances that indicate a transaction is not orderly.  The new guidance does not prescribe a methodology for making significant adjustments to transactions or quoted priceswhen estimating fair value in these situations but states that a change in valuation technique or the use of multiple valuation techniques may be appropriate. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Require companies to provide the same fair value of financial instruments disclosures presently required on an annual basis on a quarterly interim basis. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                                                      |   |               |   |   |                   |   |   |                    |   |   |                 |   |
|-----------------------------------------------------------|--------|--------------------|--------|--------|------------------------|--------|--------|-------------------------|--------|--------|----------------------|--------|
|                                                      |   | September 30, 2009 |   |
|                                                      |   | Amortized Cost     |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | EstimatedFair Value  |   |
| Held to Maturity:                                         |   |               |   |   |                   |   |   |                    |   |   |                 |   |
|     U.S. Government agency securities |   | $                  | 250    |   |                   | $      | -      |                    |   | $      | -                    |   |   | $ | 250 |   |
|                                                      |   |               |   |   |                   |   |   |                    |   |   |                 |   |   |   |   |   |
|                                                      |   |               |   |   |                   |   |   |                    |   |   |                 |   |   |   |   |   |
|                                                      |   | December 31, 2008  |   |
|                                                      |   | Amortized Cost     |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Estimated Fair Value |   |
| Held to Maturity:                                         |   |               |   |   |                   |   |   |                    |   |   |                 |   |   |   |   |   |
|     U.S. Government agency securities |   | $                  | 2,250  |   |                   | $      | 13     |                    |   | $      | -                    |   |   | $ | 2,263 |   |
|                                                      |   |               |   |   |                   |   |   |                    |   |   |                 |   |   |   |   |   |

|                                                    |   |               |   |   |                   |   |   |                    |   |   |                      |   |
|---------------------------------------------------------|--------|--------------------|--------|--------|------------------------|--------|--------|-------------------------|--------|--------|---------------------------|--------|
|                                                    |   | September 30, 2009 |   |
|                                                    |   | Amortized Cost     |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Estimated Fair Value |   |
| Held to Maturity:                                       |   |               |   |   |                   |   |   |                    |   |   |                      |   |
|     FNMA pass-through certificates  |   | $                  | 4,407  |   |                   | $      | 250    |                    |   | $      | -                         |   |   | $ | 4,657 |   |
|     FHLMC pass-through certificates |   |               | 3,899  |   |                   |   | 247    |                    |   |   | -                         |   |   |   | 4,146 |   |
|                                     |   | $                  | 8,306  |   |                   | $      | 497    |                    |   | $      | -                         |   |   | $ | 8,803 |   |
|                                                    |   |               |   |   |                   |   |   |                    |   |   |                      |   |   |   |   |   |
|                                                    |   |               |   |   |                   |   |   |                    |   |   |                      |   |   |   |   |   |
|                                                    |   | December 31, 2008  |   |
|                                                    |   | Amortized Cost     |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Estimated Fair Value      |   |
| Held to Maturity:                                       |   |               |   |   |                   |   |   |                    |   |   |                      |   |   |   |   |   |
|     FNMA pass-through certificates  |   | $                  | 5,025  |   |                   | $      | 202    |                    |   | $      | -                         |   |   | $ | 5,227 |   |
|     FHLMC pass-through certificates |   |               | 4,752  |   |                   |   | 153    |                    |   |   | -                         |   |   |   | 4,905 |   |
|                                     |   | $                  | 9,777  |   |                   | $      | 355    |                    |   | $      | -                         |   |   | $ | 10,132 |   |

----

----

|                                                                                             |   | September 30,2009 |   |   | December 31,2008 |   |
|--------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|------------------|--------|
| Real estate loans:                                                                               |   |              |   |   |             |   |
|   One-to four-family residential:                                                      |   |              |   |   |             |   |
|        Owner occupied                                         |   | $                 | 15,285 |   |             | $      | 17,460 |   |
|   Non-owner occupied                                                                   |   |              | 23,640 |   |             |   | 21,489 |   |
|           Total one-to-four family residential |   |              | 38,925 |   |             |   | 38,949 |   |
|                                                                                             |   |              |   |   |             |   |   |   |
|    Multi-family residential                                                       |   |              | 3,164  |   |             |   | 3,526 |   |
|    Commercial real estate                                                         |   |              | 18,851 |   |             |   | 19,096 |   |
|    Construction                                                                   |   |              | 3,224  |   |             |   | 2,752 |   |
|    Commercial lines of  credit                                          |   |              | 1,111  |   |             |   | 813 |   |
|    Home equity loans                                                              |   |              | 6,416  |   |             |   | 4,585 |   |
|           Total real estate loans              |   |              | 71,691 |   |             |   | 69,721 |   |
|                                                                                             |   |              |   |   |             |   |   |   |
| Auto loans                                                                                       |   |              | 83     |   |             |   | 103 |   |
| Loans secured by deposits                                                                        |   |              | 15     |   |             |   | 109 |   |
| Total loans                                                                                      |   |              | 71,789 |   |             |   | 69,933 |   |
|                                                                                             |   |              |   |   |             |   |   |   |
| Deferred loan fees and costs                                                                     |   |              | 41     |   |             |   | 66 |   |
|        Allowance for loan losses                              |   |              | (806   | )      |             |   | (689 | ) |
| Net loans                                                                                        |   | $                 | 71,024 |   |             | $      | 69,310 |   |

|                                                                                      |   | September 30,2009 |   |   | September 30,2008 |   |
|-------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
| Balance, beginning of the year                                                            |   | $                 | 689    |   |              | $      | 667 |   |
|      Provision for loan losses                                   |   |              | 129    |   |              |   | 97 |   |
|      Charge-offs                                                 |   |              | (12    | )      |              |   | (20 | ) |
| Recoveries                                                                                |   |              | -      |   |              |   | - |   |
|           (Charge-offs)/recoveries, net |   |              | (12    | )      |              |   | ( 20 | ) |
|                                                                                      |   |              |   |   |              |   |   |   |
| Balance, end of period                                                                    |   | $                 | 806    |   |              | $      | 744 |   |

----

----

|                                         |   | September 30,2009 |         |   | December 31, 2008 |   |
|----------------------------------------------|--------|-------------------|--------------|--------|-------------------|--------|
|                                         |   |              |         |   |              |   |   |   |
| Passbook savings accounts                    |   | $                 | 3,294        |   |              | $      | 3,356 |   |
| Statement savings accounts                   |   |              | 6,353        |   |              |   | 5,093 |   |
| e-savings accounts                           |   |              | 1,491        |   |              |   | 429 |   |
| Certificates of deposit                      |   |              |  57,122 |   |              |   |  50,103 |   |
|      Total deposits |   | $                 | 68,260       |   |              | $      | 58,981 |   |
|                                         |   |              |         |   |              |   |   |   |

|                     |  Maturity Period |       |   | Amount |   |   | WeightedInterestRate |   |
|-------------------------------|-----------------------|--------------------------------|--------|--------|--------|--------|----------------------|--------|
|   1 to 12 months    |                  | $                              | 1,250  |   |   |   | 3.38                 | %      |
| 13 to 24 months               |                  |                           | 1,800  |   |   |   | 3.66                 | %      |
| 25 to 36 months               |                  |                           | 1,800  |   |   |   | 3.98                 | %      |
| 37 to 48 months               |                  |                           | 2,000  |   |   |   | 4.19                 | %      |
|     Total |                  | $                              | 6,850  |   |   |   | 3.85                 | %      |

----

----

|                           |   | Number ofShares |   |   | WeightedAverage Grant- date Fair Value |   |
|--------------------------------|--------|-----------------|--------|--------|----------------------------------------|--------|
| Unvested at December 31, 2008  |   |            | 43,324 |   |                                   | $      | 9.05 |   |
| Granted                        |   |            | --     |   |                                   |   | -- |   |
| Vested                         |   |            | (8,588 | )      |                                   |   | 9.05 |   |
| Forfeited                      |   |            | --     |   |                                   |   |  -- |   |
| Unvested at September 30, 2009 |   |            | 34,736 |   |                                   | $      | 9.05 |   |

----

----

|                              |   | Number ofShares |    |   | WeightedAverage Exercise Price |   |     | WeightedAverage Remaining Contractual Life (in years) |   |   | Aggregate Intrinsic Value |   |
|-----------------------------------|--------|-----------------|---------|--------|--------------------------------|--------|----------|-------------------------------------------------------|--------|--------|--------------------------------|--------|
| Outstanding December 31, 2008     |   |            | 108,311 |   |                           | $      | 10.00    |                                                  |   |   | 9.4                            |   |   | $ | -- |   |
| Granted                           |   |            | --      |   |                           |   | --       |                                                  |   |   | --                             |   |   |   | -- |   |
| Exercised                         |   |            | --      |   |                           |   | --       |                                                  |   |   | --                             |   |   |   | -- |   |
| Forfeited                         |   |            | --      |   |                           |   |  -- |                                                  |   |   | --                             |   |   |   | -- |   |
| Outstanding at September 30, 2009 |   |            | 108,311 |   |                           | $      | 10.00    |                                                  |   |   | 8.6                            |   |   | $ | -- |   |
| Exercisable at September 30, 2009 |   |            | 21,481  |   |                           | $      | 10.00    |                                                  |   |   | 8.6                            |   |   |   |   |   |

| Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Level 2: | Quoted prices in markets that are not active, or inputs that are observable either directly or   indirectly, for substantially the full term of the asset or liability. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level 3: | Prices or valuation techniques that require inputs that are both significant to the fair value   measurement and unobservable (i.e., supported with little or no market activity). |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   |                |   |   |                                                         |   |   |                                              |   |   |                                        |   |
|-------------------------------------------------|--------|---------------------|--------|--------|--------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------------------|--------|
|                                            |   | Carrying Value |   |   | Quoted Prices inActive Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Other ObservableInputs(Level 3) |   |
|                                            |   |                |   |   |                                                         |   |   |                                              |   |   |                                        |   |
|     Other real estate owned |   | $                   | 931    |   |                                                         | $      | -      |                                              |   | $      | -                                           |   |   | $ | 931 |   |

----

----

----

----

|                                                     |   |  Carrying |   |   |  Fair  |   |
|----------------------------------------------------------|--------|----------------|--------|--------|-------------|--------|
|                                                     |   |  Amount   |   |   |  Value |   |
|                                                     |   | (In Thousands) |   |
| Assets:                                                  |   |           |   |   |        |   |
|   Cash and cash equivalents                    |   | $              | 6,745  |   |        | $      | 6,745 |   |
|   Investment in interest-earning time deposits |   |           | 3,634  |   |        |   | 3,645 |   |
|   Investment securities held to maturity       |   |           | 250    |   |        |   | 250 |   |
|   Mortgage-backed securities held to maturity  |   |           | 8,306  |   |        |   | 8,803 |   |
|   Loans receivable, net                        |   |           | 71,024 |   |        |   | 71,232 |   |
|   Investment in FHLB stock                     |   |           | 797    |   |        |   | 797 |   |
|   Accrued interest receivable                  |   |           | 407    |   |        |   | 407 |   |
|                                                     |   |           |   |   |        |   |   |   |
| Liabilities:                                             |   |           |   |   |        |   |   |   |
|   Deposits                                     |   |           | 68,260 |   |        |   | 69,168 |   |
|   FHLB advances, long-term                     |   |           | 5,600  |   |        |   | 5,915 |   |
|   FHLB advances, short-term                    |   |           | 1,250  |   |        |   | 1,274 |   |
|   Other borrowings                             |   |           | 447    |   |        |   | 447 |   |
|   Accrued interest payable                     |   |           | 129    |   |        |   | 129 |   |
|                                                     |   |           |   |   |        |   |   |   |
|   Off-balance sheet financial instruments      |   |           | --     |   |        |   | -- |   |

----

----

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|                                                                                                 |   | Three Months Ended September 30, |         |
|------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------------|
|                                                                                                 |   | 2009                             |         |   | 2008 |   |
|                                                                                                 |   | AverageBalance                   |         |   | Interest |   |   | AverageYield/Rate |   |   | AverageBalance |   |   | Interest |   |   | AverageYield/Rate |   |
| Interest-earning assets:                                                                             |   | (Dollars in thousands)           |         |
|   Short-term investments and investment securities                                         |   | $                                |  11,182 |   |   | $ | 25 |   |   |   | 0.89 | % |   | $ | 7,297 |   |   | $ | 72 |   |   |   | 3.95 | % |
|   Mortgage-backed securities                                                               |   |                             | 8,586        |   |   |   | 103 |   |   |   |  4.80 |   |   |   | 7,025 |   |   |   | 84 |   |   |   | 4.78 |   |
|   Loans receivable, net (1)                                                                |   |                             | 71,061       |   |   |   | 1,232 |   |   |   | 6.93 |   |   |   | 64,210 |   |   |   | 1,090 |   |   |   | 6.79 |   |
|   Other interest-earning assets                                                            |   |                             | -            |   |   |   | - |   |   |   | - |   |   |   | 545 |   |   |   | 3 |   |   |   | 2.20 |   |
|      Total interest-earning assets                                          |   |                             | 90,829       |   |   |   | 1,360 |   |   |   | 5.99 | % |   |   | 79,077 |   |   |   | 1,249 |   |   |   | 6.32 | % |
| Non-interest-earning assets                                                                          |   |                             |  4,308  |   |   |   |   |   |   |   |   |   |   |   |  1,501 |   |   |   |   |   |   |   |   |   |
|      Total assets                                                           |   | $                                |  95,137 |   |   |   |   |   |   |   |   |   |   | $ | 80,578 |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                        |   |                             |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Passbook accounts                                                                  |   | $                                |  3,347  |   |   |   | 7 |   |   |   | 0.84 | % |   | $ | 3,441 |   |   |   | 11 |   |   |   | 1.28 | % |
|    Statement and e-savings accounts                                                   |   |                             | 7,635        |   |   |   | 19 |   |   |   | 1.00 |   |   |   | 5,394 |   |   |   | 31 |   |   |   | 2.30 |   |
|    Certificate of deposit accounts                                                    |   |                             | 58,472       |   |   |   | 512 |   |   |   | 3.50 |   |   |   | 47,108 |   |   |   | 505 |   |   |   | 4.29 |   |
|       Total deposits                                                   |   |                             | 69,454       |   |   |   | 538 |   |   |   | 3.10 |   |   |   | 55,943 |   |   |   | 547 |   |   |   | 3.91 |   |
| FHLB advances                                                                                        |   |                             | 7,763        |   |   |   | 71 |   |   |   | 3.66 |   |   |   |  6,538 |   |   |   | 59 |   |   |   | 3.61 |   |
|      Total interest-bearing liabilities                                     |   |                             | 77,217       |   |   |   | 609 |   |   |   | 3.15 | % |   |   | 62,481 |   |   |   | 606 |   |   |   | 3.88 | % |
| Non-interest-bearing liabilities                                                                     |   |                             | 719          |   |   |   |   |   |   |   |   |   |   |   | 731 |   |   |   |   |   |   |   |   |   |
|      Total liabilities                                                      |   |                             | 77,936       |   |   |   |   |   |   |   |   |   |   |   | 63,212 |   |   |   |   |   |   |   |   |   |
| Stockholders’ Equity                                                                           |   |                             | 17,201       |   |   |   |   |   |   |   |   |   |   |   | 17,366 |   |   |   |   |   |   |   |   |   |
|      Total liabilities and Stockholders’ Equity                       |   | $                                |  95,137 |   |   |   |   |   |   |   |   |   |   | $ | 80,578 |   |   |   |   |   |   |   |   |   |
| Net interest-earning assets                                                                          |   | $                                | 13,612       |   |   |   |   |   |   |   |   |   |   | $ | 16,596 |   |   |   |   |   |   |   |   |   |
| Net interest income; average interest rate spread                                                    |   |                             |         |   |   | $ | 751 |   |   |   | 2.84 | % |   |   |   |   |   | $ | 643 |   |   |   | 2.44 | % |
| Net interest margin (2)                                                                              |   |                             |         |   |   |   |   |   |   |   | 3.31 | % |   |   |   |   |   |   |   |   |   |   | 3.25 | % |
| Average interest-earning assets to average     interest-bearing liabilities |   |                             |         |   |   |   |   |   |   |   | 117.63 | % |   |   |   |   |   |   |   |   |   |   | 126.56 | % |

| (1) | Includes non-accrual loans during the respective periods.  Calculated net of deferred fees and discounts, loans in process and allowance for loan losses. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Equals net interest income divided by average interest-earning assets. |
|-----|------------------------------------------------------------------------|

----

----

----

|                                                                                                                          |   | Nine Months Ended September 30, |        |
|-------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-------------|
|                                                                                                                          |   | 2009                            |        |   | 2008 |   |
|                                                                                                                          |   | AverageBalance                  |        |   | Interest |   |   | AverageYield/Rate |   |   | AverageBalance |   |   | Interest |   |   | AverageYield/Rate |   |
| Interest-earning assets:                                                                                                      |   | (Dollars in thousands)          |        |
|   Short-term investments and investment securities                                                                  |   | $                               | 8,109       |   |   | $ | 116 |   |   |   | 1.91 | % |   | $ | 9,681 |   |   | $ | 293 |   |   |   | 4.04 | % |
|   Mortgage-backed securities                                                                                        |   |                            | 9,102       |   |   |   | 328 |   |   |   | 4.80 |   |   |   | 3,591 |   |   |   | 127 |   |   |   | 4.72 |   |
|   Loans receivable, net (1)                                                                                         |   |                            | 71,542      |   |   |   | 3,637 |   |   |   | 6.78 |   |   |   | 62,840 |   |   |   | 3,261 |   |   |   | 6.92 |   |
|   Other interest-earning assets                                                                                     |   |                            | -           |   |   |   | - |   |   |   | - |   |   |   | 399 |   |   |   | 9 |   |   |   | 3.01 |   |
|      Total interest-earning assets                                                                   |   |                            | 88,753      |   |   |   | 4,081 |   |   |   | 6.13 | % |   |   | 76,511 |   |   |   | 3,690 |   |   |   | 6.43 | % |
| Non-interest-earning assets                                                                                                   |   |                            |  3,633 |   |   |   |   |   |   |   |   |   |   |   |  1,462 |   |   |   |   |   |   |   |   |   |
|      Total assets                                                                                    |   | $                               | 92,386      |   |   |   |   |   |   |   |   |   |   | $ | 77,973 |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                                                 |   |                            |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Passbook accounts                                                                                           |   | $                               | 3,334       |   |   |   | 23 |   |   |   | 0.92 | % |   | $ | 3,482 |   |   |   | 34 |   |   |   | 1.30 | % |
|    Statement and e-savings accounts                                                                            |   |                            | 6,616       |   |   |   | 83 |   |   |   | 1.67 |   |   |   | 5,556 |   |   |   | 102 |   |   |   | 2.45 |   |
|    Certificate of deposit accounts                                                                             |   |                            | 56,024      |   |   |   | 1,552 |   |   |   | 3.69 |   |   |   | 47,348 |   |   |   | 1,602 |   |   |   | 4.51 |   |
|       Total deposits                                                                            |   |                            | 65,974      |   |   |   | 1,658 |   |   |   | 3.35 |   |   |   | 56,386 |   |   |   | 1,738 |   |   |   | 4.11 |   |
| FHLB advances                                                                                                                 |   |                            | 8,321       |   |   |   | 223 |   |   |   | 3.57 |   |   |   | 3,346 |   |   |   | 90 |   |   |   | 3.59 |   |
|      Total interest-bearing liabilities                                                              |   |                            | 74,295      |   |   |   | 1,881 |   |   |   | 3.38 | % |   |   | 59,732 |   |   |   | 1,828 |   |   |   | 4.08 | % |
| Non-interest-bearing liabilities                                                                                              |   |                            | 775         |   |   |   |   |   |   |   |   |   |   |   | 708 |   |   |   |   |   |   |   |   |   |
|      Total liabilities                                                                               |   |                            | 75,070      |   |   |   |   |   |   |   |   |   |   |   | 60,440 |   |   |   |   |   |   |   |   |   |
| Stockholders’ Equity                                                                                                    |   |                            | 17,316      |   |   |   |   |   |   |   |   |   |   |   | 17,533 |   |   |   |   |   |   |   |   |   |
|      Total liabilities and Stockholders’ Equity                                                |   | $                               | 92,386      |   |   |   |   |   |   |   |   |   |   | $ | 77,973 |   |   |   |   |   |   |   |   |   |
| Net interest-earning assets                                                                                                   |   | $                               | 14,458      |   |   |   |   |   |   |   |   |   |   | $ | 16,779 |   |   |   |   |   |   |   |   |   |
| Net interest income; average interest rate spread                                                                             |   |                            |        |   |   | $ | 2,200 |   |   |   | 2.75 | % |   |   |   |   |   | $ | 1,862 |   |   |   | 2.35 | % |
| Net interest margin (2)                                                                                                       |   |                            |        |   |   |   |   |   |   |   | 3.31 | % |   |   |   |   |   |   |   |   |   |   | 3.24 | % |
| Average interest-earning assets to average          interest-bearing liabilities |   |                            |        |   |   |   |   |   |   |   | 119.46 | % |   |   |   |   |   |   |   |   |   |   | 128.09 | % |

| (1) | Includes non-accrual loans during the respective periods.  Calculated net of deferred fees and discounts, loans in process and allowance for loan losses. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Equals net interest income divided by average interest-earning assets. |
|-----|------------------------------------------------------------------------|

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| Period                                       |   | Total Number of SharesPurchased |    |   | Average Price Paid perShare |   |   | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) |   |
|----------------------------------------------|--------|---------------------------------|---------|--------|---------------------------------------|--------|--------|----------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------|--------|
| July 1, 2009 – July 31, 2009           |   |                            | 2,400   |   |                                  | $      | 8.70   |                                                                             |   |   | 2,400                                                                              |   |   |   | 53,349 |   |
| August 1, 2009 – August 31, 2009       |   |                            | 2,200   |   |                                  |   | 8.70   |                                                                             |   |   | 2,200                                                                              |   |   |   | 51,149 |   |
| September 1, 2009 – September 30, 2009 |   |                            |  - |   |                                  |   | -      |                                                                             |   |   |  -                                                                            |   |   |   | 51,149 |   |
| Total                                        |   |                            | 4,600   |   |                                  | $      | 8.70   |                                                                             |   |   | 4,600                                                                              |   |   |   | 51,149 |   |

| (1)   | On June 12, 2008 the Company announced by press release its first stock repurchase program to repurchase 138,862 shares, or 10% of its outstanding common stock over a two-year period. The program became effective July 5, 2008. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Date   | November 12, 2009 |   | By:                                   | /s/Robert T. Strong  |
|--------|------------------------|--------|---------------------------------------|----------------------|
|   |                   |   | Robert T. Strong                      |
|   |                   |   | President and Chief Executive Officer |
|   |                   |   |                                  |
|   |                   |   |
| Date:  | November 12, 2009 |   | By:                                   | /s/John J. Augustine |
|   |                   |   | John J. Augustine                     |
|   |                   |   | Chief Financial Officer               |
|   |                   |   |