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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549





FORM 10-Q





(Mark One)

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

For the quarterly period ended March 31, 2011

OR



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

For the transition period from  to

Commission file number: 001-33573





Louisiana Bancorp, Inc.

(Exact Name of Registrant as Specified in Its Charter)







|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Louisiana                                                      |  | 20-8715162                          
|(State or Other Jurisdiction of
Incorporation or Organization) |  | (I.R.S. Employer Identification No.)
|                                                               | 
|1600 Veterans Memorial Boulevard, Metairie, Louisiana          |  | 70005                               
|(Address of Principal Executive Offices)                       |  | (Zip Code)                          

(504)
834-1190

(Registrants Telephone Number, Including Area Code)





Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.    x  Yes     ̈  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule
405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for shorter period that the registrant was required to submit and post such
files).    Yes   ̈    No   ̈

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule
405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files.     ̈  Yes     ̈  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated
filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check One):



|                        |  |                                                  |  |                           |  |  
|----------------------- |  | ------------------------------------------------ |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈                                                |  | Accelerated filer         |  |  ̈
|                        |  |                                                  | 
|Non-accelerated filer   |  |  ̈  (Do not check if a smaller reporting company) |  | Smaller reporting company |  | x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     ̈  Yes    x  No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each
of the issuers classes of common stock, as of the latest practicable date: As of May 11, 2011, there were 3,591,443 shares of the Registrants common stock outstanding.









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|                               |  | 
|------------------------------ |  | 
|PART I - FINANCIAL INFORMATION

Interim financial information required by Rule 10-01 of Regulation S-X and Item 303 of Regulation S-K is included in this Form 10-Q as referenced below.



|           |  |                                                                                       |    |      |    | 
|---------- |  | ------------------------------------------------------------------------------------- | -- | ---- | -- | 
|           |  |                                                                                       |    | Page |   
|           |  |                                                                                      
|Item 1 -   |  | Financial Statements                                                                  |    |      | 3  | 
|           |  |                                                                                      
|Item 2 -   |  | Managements Discussion and Analysis of Financial Condition and Results of
Operations |    |      | 21 | 
|           |  |                                                                                      
|Item 3 -   |  | Quantitative and Qualitative Disclosures About Market Risk                            |    |      | 26 | 
|           |  |                                                                                      
|Item 4T -  |  | Controls and Procedures                                                               |    |      | 26 | 
|           | 
|           |  | PART II - OTHER INFORMATION                                                           |   
|           |  |                                                                                      
|Item 1 -   |  | Legal Proceedings                                                                     |    |      | 27 | 
|           |  |                                                                                      
|Item 1A -  |  | Risk Factors                                                                          |    |      | 27 | 
|           |  |                                                                                      
|Item 2 -   |  | Unregistered Sales of Equity Securities and Use of Proceeds                           |    |      | 27 | 
|           |  |                                                                                      
|Item 3 -   |  | Defaults Upon Senior Securities                                                       |    |      | 27 | 
|           |  |                                                                                      
|Item 4 -   |  | (Removed and Reserved)                                                                |    |      | 27 | 
|           |  |                                                                                      
|Item 5 -   |  | Other Information                                                                     |    |      | 27 | 
|           |  |                                                                                      
|Item 6 -   |  | Exhibits                                                                              |    |      | 27 | 
|           | 
|Signatures |  |                                                                                       | 28 |     



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LOUISIANA BANCORP, INC.

Consolidated Balance Sheets



|                                                                                                                                       |  |                |         |   |                   |   |         |  
|-------------------------------------------------------------------------------------------------------------------------------------- |  | -------------- | ------- | - | ----------------- | - | ------- | -
|                                                                                                                                       |  | (unaudited)    |         |   |                   |  
|                                                                                                                                       |  | March 31, 2011 |         |   | December 31, 2010 |  
|                                                                                                                                       |  | (In Thousands) |        
|Assets                                                                                                                                 |  |                |         |   |                   |   |         |  
|Cash and Due from Banks                                                                                                                |  | $              | 2,308   |   |                   | $ | 2,956   |  
|Short-Term Interest-Bearing Deposits                                                                                                   |  |                | 8,906   |   |                   |   | 3,654   |  
|                                                                                                                                       |  |                |         |   |                   |   |         |  
|Total Cash and Cash Equivalents                                                                                                        |  |                | 11,214  |   |                   |   | 6,610   |  
|                                                                                                                                       |  |               
|Certificates of Deposit                                                                                                                |  |                | 635     |   |                   |   | 635     |  
|Securities Available-for-Sale, at Fair Value (Amortized Cost of $62,556 and $61,429, respectively)                                     |  |                | 63,343  |   |                   |   | 62,489  |  
|Securities Held-to-Maturity, at Amortized Cost (Estimated Fair Value of $60,628 and $67,355, respectively)                             |  |                | 57,129  |   |                   |   | 63,539  |  
|Loans, Net of Allowance for Loan Losses of $1,794 and $1,759, respectively                                                             |  |                | 184,170 |   |                   |   | 179,110 |  
|Accrued Interest Receivable                                                                                                            |  |                | 1,275   |   |                   |   | 1,196   |  
|Other Real Estate Owned                                                                                                                |  |                | 1,346   |   |                   |   | 1,696   |  
|Stock in Federal Home Loan Bank                                                                                                        |  |                | 2,012   |   |                   |   | 2,002   |  
|Premises and Equipment, Net                                                                                                            |  |                | 1,669   |   |                   |   | 1,688   |  
|Other Assets                                                                                                                           |  |                | 1,690   |   |                   |   | 1,910   |  
|                                                                                                                                       |  |                |         |   |                   |   |         |  
|Total Assets                                                                                                                           |  | $              | 324,483 |   |                   | $ | 320,875 |  
|                                                                                                                                       |  |                |         |   |                   |   |         |  
|                                                                                                                                       |  |               
|Liabilities and Shareholders Equity                                                                                                   |  |                |         |   |                   |   |         |  
|Deposits                                                                                                                               |  |                |         |   |                   |   |         |  
|Non-Interest-Bearing                                                                                                                   |  | $              | 10,251  |   |                   | $ | 8,130   |  
|Interest-Bearing                                                                                                                       |  |                | 182,565 |   |                   |   | 180,232 |  
|                                                                                                                                       |  |                |         |   |                   |   |         |  
|Total Deposits                                                                                                                         |  |                | 192,816 |   |                   |   | 188,362 |  
|                                                                                                                                       |  |               
|Federal Home Loan Bank Advances                                                                                                        |  |                | 41,459  |   |                   |   | 42,248  |  
|Reverse Repurchase Agreements                                                                                                          |  |                | 26,000  |   |                   |   | 26,000  |  
|Advance Payments by Borrowers for Taxes and Insurance                                                                                  |  |                | 1,456   |   |                   |   | 1,997   |  
|Accrued Interest Payable                                                                                                               |  |                | 375     |   |                   |   | 421     |  
|Other Liabilities                                                                                                                      |  |                | 1,411   |   |                   |   | 1,569   |  
|                                                                                                                                       |  |                |         |   |                   |   |         |  
|Total Liabilities                                                                                                                      |  |                | 263,517 |   |                   |   | 260,597 |  
|                                                                                                                                       |  |                |         |   |                   |   |         |  
|                                                                                                                                       |  |               
|Commitments and Contigencies                                                                                                           |  |                |        |   |                   |   |        |  
|                                                                                                                                       |  |               
|Shareholders Equity                                                                                                                   |  |                |         |   |                   |   |         |  
|                                                                                                                                       |  |               
|Common Stock, $.01 Par Value, 40,000,000 Shares Authorized; 6,345,732 Shares Issued; 3,623,315 and 3,640,918 Outstanding,
respectively |  |                | 63      |   |                   |   | 63      |  
|Additional Paid-in-Capital                                                                                                             |  |                | 62,895  |   |                   |   | 62,880  |  
|Unearned ESOP Shares                                                                                                                   |  |                | (4,188  | ) |                   |   | (4,188  | )
|Unearned Recognition and Retention Plan Shares                                                                                         |  |                | (1,540  | ) |                   |   | (2,074  | )
|Treasury Stock, at Cost (2,722,417 shares and 2,704,814 shares, respectively)                                                          |  |                | (37,580 | ) |                   |   | (37,321 | )
|Retained Earnings                                                                                                                      |  |                | 40,797  |   |                   |   | 40,218  |  
|Accumulated Other Comprehensive Income                                                                                                 |  |                | 519     |   |                   |   | 700     |  
|                                                                                                                                       |  |                |         |   |                   |   |         |  
|Total Shareholders Equity                                                                                                             |  |                | 60,966  |   |                   |   | 60,278  |  
|                                                                                                                                       |  |                |         |   |                   |   |         |  
|Total Liabilities and Shareholders Equity                                                                                             |  | $              | 324,483 |   |                   | $ | 320,875 |  
|                                                                                                                                       |  |                |         |   |                   |   |         |  

See accompanying notes to unaudited consolidated financial statements.



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LOUISIANA BANCORP, INC.

Consolidated Statements of Income (Unaudited)



|                                                    |  |                                       |       |  |      |   |       | 
|--------------------------------------------------- |  | ------------------------------------- | ----- |  | ---- | - | ----- | 
|                                                    |  | For the Three Months                  |      
|                                                    |  | Ended March 31,                       |      
|                                                    |  | 2011                                  |       |  | 2010 |  
|                                                    |  | (In Thousands, Except per Share data) |      
|Interest and Dividend Income                        |  |                                       |       |  |      |   |       | 
|Loans, Including Fees                               |  | $                                     | 2,730 |  |      | $ | 2,451 | 
|Mortgage Backed Securities                          |  |                                       | 897   |  |      |   | 1,415 | 
|Investment Securities                               |  |                                       | 196   |  |      |   | 218   | 
|Other Interest-Bearing Deposits                     |  |                                       | 8     |  |      |   | 9     | 
|                                                    |  |                                       |       |  |      |   |       | 
|Total Interest and Dividend Income                  |  |                                       | 3,831 |  |      |   | 4,093 | 
|                                                    |  |                                       |       |  |      |   |       | 
|                                                    |  |                                      
|Interest Expense                                    |  |                                       |       |  |      |   |       | 
|Deposits                                            |  |                                       | 710   |  |      |   | 836   | 
|Borrowings                                          |  |                                       | 653   |  |      |   | 648   | 
|                                                    |  |                                       |       |  |      |   |       | 
|Total Interest Expense                              |  |                                       | 1,363 |  |      |   | 1,484 | 
|                                                    |  |                                       |       |  |      |   |       | 
|                                                    |  |                                      
|Net Interest Income                                 |  |                                       | 2,468 |  |      |   | 2,609 | 
|                                                    |  |                                      
|Provision for Loan Losses                           |  |                                       | 37    |  |      |   | 44    | 
|                                                    |  |                                       |       |  |      |   |       | 
|                                                    |  |                                      
|Net Interest Income after Provision for Loan Losses |  |                                       | 2,431 |  |      |   | 2,565 | 
|                                                    |  |                                       |       |  |      |   |       | 
|                                                    |  |                                      
|Non-Interest Income                                 |  |                                       |       |  |      |   |       | 
|Customer Service Fees                               |  |                                       | 125   |  |      |   | 65    | 
|Gain on Sale of Loans                               |  |                                       | 56    |  |      |   | 23    | 
|Other Income                                        |  |                                       | 19    |  |      |   | 4     | 
|                                                    |  |                                       |       |  |      |   |       | 
|Total Non-Interest Income                           |  |                                       | 200   |  |      |   | 92    | 
|                                                    |  |                                       |       |  |      |   |       | 
|                                                    |  |                                      
|Non-Interest Expense                                |  |                                       |       |  |      |   |       | 
|Salaries and Employee Benefits                      |  |                                       | 1,133 |  |      |   | 1,177 | 
|Occupancy Expense                                   |  |                                       | 277   |  |      |   | 275   | 
|Louisiana Bank Shares Tax                           |  |                                       | 57    |  |      |   | 53    | 
|FDIC Insurance Premium                              |  |                                       | 53    |  |      |   | 42    | 
|Net Cost of OREO Operations                         |  |                                       | 2     |  |      |   | 20    | 
|Other Expenses                                      |  |                                       | 224   |  |      |   | 196   | 
|                                                    |  |                                       |       |  |      |   |       | 
|Total Non-Interest Expense                          |  |                                       | 1,746 |  |      |   | 1,763 | 
|                                                    |  |                                       |       |  |      |   |       | 
|                                                    |  |                                      
|Income Before Income Tax Expense                    |  |                                       | 885   |  |      |   | 894   | 
|                                                    |  |                                      
|Income Tax Expense                                  |  |                                       | 306   |  |      |   | 309   | 
|                                                    |  |                                       |       |  |      |   |       | 
|                                                    |  |                                      
|Net Income                                          |  | $                                     | 579   |  |      | $ | 585   | 
|                                                    |  |                                       |       |  |      |   |       | 
|                                                    |  |                                      
|Earnings Per Share                                  |  |                                       |       |  |      |   |       | 
|Basic                                               |  | $                                     | 0.19  |  |      | $ | 0.14  | 
|Diluted                                             |  | $                                     | 0.18  |  |      | $ | 0.14  | 

See accompanying notes to
unaudited financial statements.



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LOUISIANA BANCORP, INC.

Consolidated Statements of Comprehensive Income

(Unaudited)



|                                              |  |                      |      |   |      |   |     | 
|--------------------------------------------- |  | -------------------- | ---- | - | ---- | - | --- | 
|                                              |  | For the Three Months |     
|                                              |  | Ended March 31,      |     
|                                              |  | 2011                 |      |   | 2010 |  
|                                              |  | (In Thousands)       |     
|                                              |  |                     
|Net Income                                    |  | $                    | 579  |   |      | $ | 585 | 
|                                              |  |                     
|Other Comprehensive (Loss) Income, Net of Tax |  |                      |      |   |      |   |     | 
|Unrealized Holding (Losses) Gains Arising     |  |                      |      |   |      |   |     | 
|During the Period                             |  |                      | (181 | ) |      |   | 129 | 
|                                              |  |                     
|Reclassification Adjustment for Gains         |  |                      |      |   |      |   |     | 
|Included in Net Income                        |  |                      |     |   |      |   |    | 
|                                              |  |                      |      |   |      |   |     | 
|                                              |  |                     
|Total Other Comprehensive (Loss) Gain         |  |                      | (181 | ) |      |   | 129 | 
|                                              |  |                      |      |   |      |   |     | 
|                                              |  |                     
|Comprehensive Income                          |  | $                    | 398  |   |      | $ | 714 | 
|                                              |  |                      |      |   |      |   |     | 

See accompanying notes to unaudited financial statements.



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LOUISIANA BANCORP, INC.

Consolidated Statements of Changes in Shareholders Equity (unaudited)

For the Three Months Ended March 31, 2011 and 2010

(Dollars in thousands)



|                                               |  |             | $(23,600) |  |                          |   | $(23,600) |                   |  |   | $(23,600)        |   |  |               | $(23,600) |   |                  |   | $(23,600) |                                            |  |   | $(23,600)                |  |  |   | $(23,600) |   |  |   | $(23,600) |  
|---------------------------------------------- |  | ----------- | --------- |  | ------------------------ | - | --------- | ----------------- |  | - | ---------------- | - |  | ------------- | --------- | - | ---------------- | - | --------- | ------------------------------------------ |  | - | ------------------------ |  |  | - | --------- | - |  | - | --------- | -
|                                               |  | CommonStock |           |  | AdditionalPaid-inCapital |   |           | UnearnedESOPStock |  |   | UnearnedRRPStock |   |  | TreasuryStock |           |   | RetainedEarnings |   |           | AccumulatedOtherComprehensiveIncome (Loss) |  |   | TotalShareholdersEquity | 
|                                               |  |             |           |  |                          |   |           |                  
|Balances at December 31, 2009                  |  | $           | 63        |  |                          | $ | 62,586    |                   |  | $ | (4,442           | ) |  | $             | (2,636    | ) |                  | $ | (20,803   | )                                          |  | $ | 37,660                   |  |  | $ | 920       |   |  | $ | 73,348    |  
|Net Income - Three Months Ended March 31, 2010 |  |             |          |  |                          |   |          |                   |  |   |                 |   |  |               |          |   |                  |   |          |                                            |  |   | 585                      |  |  |   |          |   |  |   | 585       |  
|Other Comprehensive Income,                    |  |             |           |  |                          |   |           |                   |  |   |                  |   |  |               |           |   |                  |   |           |                                            |  |   |                          |  |  |   |           |   |  |   |           |  
|Net of Applicable                              |  |             |           |  |                          |   |           |                   |  |   |                  |   |  |               |           |   |                  |   |           |                                            |  |   |                          |  |  |   |           |   |  |   |           |  
|Deferred Income Taxes                          |  |             |          |  |                          |   |          |                   |  |   |                 |   |  |               |          |   |                  |   |          |                                            |  |   |                         |  |  |   | 129       |   |  |   | 129       |  
|Stock Purchased for Treasury                   |  |             |          |  |                          |   |          |                   |  |   |                 |   |  |               |          |   |                  |   | (2,797    | )                                          |  |   |                         |  |  |   |          |   |  |   | (2,797    | )
|RRP Shares Earned                              |  |             |          |  |                          |   | (48       | )                 |  |   |                 |   |  |               | 552       |   |                  |   |          |                                            |  |   |                         |  |  |   |          |   |  |   | 504       |  
|Stock Option Expense                           |  |             |          |  |                          |   | 65        |                   |  |   |                 |   |  |               |          |   |                  |   |          |                                            |  |   |                         |  |  |   |          |   |  |   | 65        |  
|                                               |  |             |           |  |                          |   |           |                   |  |   |                  |   |  |               |           |   |                  |   |           |                                            |  |   |                          |  |  |   |           |   |  |   |           |  
|Balances at March 31, 2010                     |  | $           | 63        |  |                          | $ | 62,603    |                   |  | $ | (4,442           | ) |  | $             | (2,084    | ) |                  | $ | (23,600   | )                                          |  | $ | 38,245                   |  |  | $ | 1,049     |   |  | $ | 71,834    |  
|                                               |  |             |           |  |                          |   |           |                   |  |   |                  |   |  |               |           |   |                  |   |           |                                            |  |   |                          |  |  |   |           |   |  |   |           |  
|                                               |  |             |           |  |                          |   |           |                  
|Balances at December 31, 2010                  |  |             | 63        |  |                          |   | 62,880    |                   |  |   | (4,188           | ) |  |               | (2,074    | ) |                  |   | (37,321   | )                                          |  |   | 40,218                   |  |  |   | 700       |   |  |   | 60,278    |  
|Net Income - Three Months Ended March 31, 2011 |  |             |          |  |                          |   |          |                   |  |   |                 |   |  |               |          |   |                  |   |          |                                            |  |   | 579                      |  |  |   |          |   |  |   | 579       |  
|Other Comprehensive Income,                    |  |             |           |  |                          |   |           |                   |  |   |                  |   |  |               |           |   |                  |   |           |                                            |  |   |                          |  |  |   |           |   |  |   |           |  
|Net of Applicable                              |  |             |           |  |                          |   |           |                   |  |   |                  |   |  |               |           |   |                  |   |           |                                            |  |   |                          |  |  |   |           |   |  |   |           |  
|Deferred Income Taxes                          |  |             |          |  |                          |   |          |                   |  |   |                 |   |  |               |          |   |                  |   |          |                                            |  |   |                         |  |  |   | (181      | ) |  |   | (181      | )
|Stock Purchased for Treasury                   |  |             |          |  |                          |   |          |                   |  |   |                 |   |  |               |          |   |                  |   | (259      | )                                          |  |   |                         |  |  |   |          |   |  |   | (259      | )
|RRP Shares Earned                              |  |             |           |  |                          |   | (46       | )                 |  |   |                  |   |  |               | 534       |   |                  |   |           |                                            |  |   |                          |  |  |   |           |   |  |   | 488       |  
|Stock Option Expense                           |  |             |          |  |                          |   | 61        |                   |  |   |                 |   |  |               |          |   |                  |   |          |                                            |  |   |                         |  |  |   |          |   |  |   | 61        |  
|                                               |  |             |           |  |                          |   |           |                   |  |   |                  |   |  |               |           |   |                  |   |           |                                            |  |   |                          |  |  |   |           |   |  |   |           |  
|Balances at March 31, 2011                     |  | $           | 63        |  |                          | $ | 62,895    |                   |  | $ | (4,188           | ) |  | $             | (1,540    | ) |                  | $ | (37,580   | )                                          |  | $ | 40,797                   |  |  | $ | 519       |   |  | $ | 60,966    |  
|                                               |  |             |           |  |                          |   |           |                   |  |   |                  |   |  |               |           |   |                  |   |           |                                            |  |   |                          |  |  |   |           |   |  |   |           |  

See accompanying notes to unaudited consolidated financial statements.



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LOUISIANA BANCORP, INC.

Consolidated Statements of Cash Flows (Unaudited)



|                                                                                  |  |                      |        |   |      |   |        |  
|--------------------------------------------------------------------------------- |  | -------------------- | ------ | - | ---- | - | ------ | -
|                                                                                  |  | For the Three Months |       
|                                                                                  |  | Ended March 31       |       
|                                                                                  |  | 2011                 |        |   | 2010 |  
|                                                                                  |  | (In Thousands)       |       
|Cash Flows from Operating Activities                                              |  |                      |        |   |      |   |        |  
|Net Income                                                                        |  | $                    | 579    |   |      | $ | 585    |  
|Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |  |                      |        |   |      |   |        |  
|Depreciation                                                                      |  |                      | 48     |   |      |   | 59     |  
|Provision for Loan Losses                                                         |  |                      | 37     |   |      |   | 44     |  
|Net Increase in RRP Shares Earned                                                 |  |                      | 487    |   |      |   | 504    |  
|Stock Option Plan Expense                                                         |  |                      | 61     |   |      |   | 65     |  
|Discount Accretion Net of Premium Amortization                                    |  |                      | (31    | ) |      |   | (54    | )
|Deferred Income Tax Benefit                                                       |  |                      | (13    | ) |      |   | (14    | )
|Gain on Sale of Loans                                                             |  |                      | (56    | ) |      |   | (21    | )
|Originations of Loans Held-for-Sale                                               |  |                      | (4,809 | ) |      |   | (3,309 | )
|Proceeds from Sales of Loans Held-for-Sale                                        |  |                      | 3,809  |   |      |   | 3,331  |  
|Increase in Accrued Interest Receivable                                           |  |                      | (79    | ) |      |   | (110   | )
|Impairment of Other Real Estate Owned                                             |  |                      |       |   |      |   | 20     |  
|Decrease in Other Assets                                                          |  |                      | 326    |   |      |   | 212    |  
|Decrease in Accrued Interest Payable                                              |  |                      | (46    | ) |      |   | (145   | )
|Decrease in Other Liabilities                                                     |  |                      | (157   | ) |      |   | (218   | )
|                                                                                  |  |                      |        |   |      |   |        |  
|Net Cash Provided by Operating Activities                                         |  |                      | 156    |   |      |   | 949    |  
|                                                                                  |  |                      |        |   |      |   |        |  
|                                                                                  |  |                     
|Cash Flows from Investing Activities                                              |  |                      |        |   |      |   |        |  
|Investment in Certificates of Deposit                                             |  |                      |       |   |      |   | (99    | )
|Purchase of Securities Available-for-Sale                                         |  |                      | (3,000 | ) |      |   | (2,000 | )
|Proceeds from Maturities of Certificates of Deposit                               |  |                      |       |   |      |   | 693    |  
|Proceeds from Maturities of Securities Available-for-Sale                         |  |                      | 1,880  |   |      |   | 4,426  |  
|Proceeds from Maturities of Securities Held-to-Maturity                           |  |                      | 6,434  |   |      |   | 6,823  |  
|Net Increase in Loans Receivable                                                  |  |                      | (4,041 | ) |      |   | (6,065 | )
|Proceeds from Sales of Loans Held for Investing                                   |  |                      |       |   |      |   | 208    |  
|Purchase of Property and Equipment                                                |  |                      | (29    | ) |      |   | (6     | )
|Proceeds from Sale of Other Real Estate Owned                                     |  |                      | 350    |   |      |   |       |  
|Net Increase in Investment in Federal Home Loan Bank Stock                        |  |                      | (10    | ) |      |   | (2     | )
|                                                                                  |  |                      |        |   |      |   |        |  
|Net Cash Provided by Investing Activities                                         |  |                      | 1,584  |   |      |   | 3,978  |  
|                                                                                  |  |                      |        |   |      |   |        |  

See accompanying notes to unaudited consolidated financial statements.



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|                                                               |  |                      |        |   |      |   |        |  
|-------------------------------------------------------------- |  | -------------------- | ------ | - | ---- | - | ------ | -
|                                                               |  | For the Three Months |       
|                                                               |  | Ended March 31,      |       
|                                                               |  | 2011                 |        |   | 2010 |  
|                                                               |  | (In Thousands)       |       
|Cash Flows from Financing Activities                           |  |                      |        |  
|Increase (Decrease) in Deposits                                |  |                      | 4,455  |   |      |   | (6,209 | )
|Decrease in Advances by Borrowers for Taxes and Insurance      |  |                      | (542   | ) |      |   | (401   | )
|(Decrease) Increase in Borrowings                              |  |                      | (790   | ) |      |   | 5,239  |  
|Purchase of Treasury stock                                     |  |                      | (259   | ) |      |   | (2,797 | )
|                                                               |  |                      |        |   |      |   |        |  
|                                                               |  |                     
|Net Cash Provided by (Used in) Financing Activities            |  |                      | 2,864  |   |      |   | (4,168 | )
|                                                               |  |                      |        |   |      |   |        |  
|                                                               |  |                     
|Net Increase in Cash and Cash Equivalents                      |  |                      | 4,604  |   |      |   | 759    |  
|                                                               |  |                     
|Cash and Cash Equivalents, Beginning of Year                   |  |                      | 6,610  |   |      |   | 4,735  |  
|                                                               |  |                      |        |   |      |   |        |  
|                                                               |  |                     
|Cash and Cash Equivalents, End of Year                         |  | $                    | 11,214 |   |      | $ | 5,494  |  
|                                                               |  |                      |        |   |      |   |        |  
|                                                               |  |                     
|Supplemental Disclosure of Cash Flow Information               |  |                      |        |   |      |   |        |  
|Cash Paid During the Period:                                   |  |                      |        |   |      |   |        |  
|Interest                                                       |  | $                    | 1,408  |   |      | $ | 1,629  |  
|                                                               |  |                      |        |   |      |   |        |  
|Income Taxes                                                   |  | $                    |       |   |      | $ | 130    |  
|                                                               |  |                      |        |   |      |   |        |  
|Loans Transferred to Other Real Estate Owned During the Period |  | $                    |       |   |      | $ |       |  
|                                                               |  |                      |        |   |      |   |        |  

See accompanying notes to unaudited consolidated financial statements.



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LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The accompanying unaudited financial statements of the Company were prepared in accordance with instructions for Form 10-Q
and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with generally accepted accounting principles. However, in the opinion
of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three month period ended March 31, 2011, are not
necessarily indicative of the results which may be expected for the entire fiscal year.

NATURE OF OPERATIONS

Louisiana Bancorp, Inc. (the Company) was organized as a Louisiana corporation on March 16, 2007, for the purpose of
becoming the holding company of Bank of New Orleans (the Bank). The Company holds all of the issued and outstanding shares of capital stock of the Bank. The Bank operates in the banking/savings and loan industry and, as such, attracts
deposits from the general public and uses such deposits primarily to originate loans secured by first mortgage loans on owner-occupied single-family residences and other properties, as well as those for consumer needs.

The Bank is subject to competition from other financial institutions, and is also subject to the regulations of certain Federal agencies
and undergoes periodic examinations by those regulatory authorities.

SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK

Most of the Companys activities are with customers located within the greater New Orleans area in Louisiana. Note 2 summarizes the
types of securities in which the Company invests. Note 3 summarizes the types of lending in which the Company engages. The Company does not have any significant concentrations in any one industry or to any one customer.

INVESTMENT SECURITIES

Securities are being accounted for in accordance with FASB Accounting Standards Codification (ASC) 320-10, Investments
 Debt and Equity Securities.FASB ASC 320-10 requires the classification of securities into one of three categories: trading, available-for-sale, or held-to-maturity. Management determines the appropriate classification of debt securities
at the time of purchase and re-evaluates these classifications periodically.

Available-for-sale securities are stated at
market value, with unrealized gains and losses, net of income taxes, reported as a separate component of accumulated other comprehensive income until realized. The amortized cost of available-for-sale debt securities is adjusted for amortization of
premiums and accretion of discounts to maturity or, in the case of mortgage-backed securities, over the estimated life of the security.

Securities designated as held-to-maturity are stated at cost adjusted for amortization of the related premiums and accretion of discounts, using the interest method. The Company has the positive intent
and ability to hold these securities to maturity.

The Company held no trading securities as of March 31, 2011 or
December 31, 2010.

Amortization, accretion and accrued interest are included in interest income on securities. Realized
gains and losses, and declines in value judged to be other than temporary, are included in net securities gains or losses. Gains and losses on the sale of securities available-for-sale are determined using the specific-identification method.

LOANS

The
Company grants one-to four-family, multi-family residential, commercial, and land mortgage loans, and consumer and construction loans, and lines of credit to customers. Certain first mortgage loans are originated and sold under loan sale agreements.
A substantial portion of the loan portfolio is represented by mortgage loans secured by properties located throughout the greater New Orleans area. The ability of the Companys debtors to honor their contracts is dependent, in part, upon the
real estate and general economic conditions in this area.

Loans are reported at their outstanding unpaid principal balance
adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance.



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When the payment of principal or interest on a loan is delinquent for more than 90 days, or
earlier in some cases, the loan is placed on non-accrual status, unless the loan is in the process of collection and the underlying collateral fully supports the carrying value of the loan. If the decision is made to continue accruing interest on
the loan, periodic reviews are made to confirm the accruing status of the loan. All interest accrued but not collected on loans placed in non-accrual status or on loans charged-off, is reversed against income. The interest on these loans is
accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual basis. Loans are returned to accrual basis when all of the principal and interest contractually due are brought current and future payments are
reasonably assured.

The Company considers a loan to be impaired when, based upon current information and events, it believes
it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The Companys impaired loans include performing and non-performing loans on which full payment of principal or
interest is not expected. The Company calculates an allowance required for impaired loans based on the present value of expected future cash flows discounted at the loans effective interest rate, or at the loans observable market price
or the fair value of its collateral.

ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses is a valuation allowance available for losses incurred on loans. All losses are charged to the allowance for
loan losses when the loss actually occurs or when a determination is made that a loss is likely to occur. Recoveries are credited to the allowance at the time of recovery.

The allowance is an amount that represents the amount of probable and reasonably estimable known and inherent losses in the loan portfolio, based on evaluations of the collectibility of loans. The
evaluations take into consideration such factors as changes in the types and amount of loans in the loan portfolio, historical loss experience, adverse situations that may affect the borrowers ability to repay, estimated value of any
underlying collateral, estimated losses relating to specifically identified loans, and current economic conditions. This evaluation is inherently subjective as it requires material estimates including, among others, exposure at default, the amount
and timing of expected future cash flows on impacted loans, value of collateral, estimated losses on our commercial and residential loan portfolios and general amounts for historical loss experience. All of these estimates may be susceptible to
significant change.

It should be understood that estimates of future loan losses involve an exercise of judgment. While it is
possible that in particular periods, the Company may sustain losses which are substantial relative to the allowance for loan losses, it is the judgment of management that the allowance for loan losses reflected in the accompanying statements of
condition is adequate to absorb possible losses in the existing loan portfolio.

LOANS HELD-FOR-SALE

Loans held-for-sale include originated mortgage loans intended for sale in the secondary market, which are carried at the lower of cost or
estimated market value. Loans held-for-sale are identified at the time of origination, in accordance with the Companys interest rate risk strategy. In addition, the Company occasionally sells loans that it originates, but cannot hold, due to
regulatory limitations on loans to one borrower or concentrations of credit in a particular property type or industry.

LOAN FEES, LOAN
COSTS, DISCOUNTS AND PREMIUMS

Loan origination and commitment fees and certain direct loan origination costs are deferred
and amortized as an adjustment to the related loans yield using the interest method over the contractual life of the loan.

Discounts received in connection with mortgage loans purchased are accreted to income over the term of the loan using the interest method. Premiums on purchased loans are amortized over the term of the
loan using the interest method.

INCOME TAXES

Deferred income tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or
settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

COMPREHENSIVE EARNINGS

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain
changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the shareholders equity section of the balance sheets, such items, along with net earnings, are
components of comprehensive earnings.



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USE OF ESTIMATES

In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the
reported amounts of assets and liabilities as of the date of the balance sheets and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly
susceptible to significant change relate to the determination of the allowance for losses on loans and deferred taxes.

NOTE 2 
SECURITIES

A summary of securities classified as available-for-sale at March 31, 2011 and December 31, 2010,
with gross unrealized gains and losses, follows:



|                                       |  |                   | $62,556 |  |                      |   | $62,556 |                       |  |   | $62,556              |   |  |   | $62,556 | 
|-------------------------------------- |  | ----------------- | ------- |  | -------------------- | - | ------- | --------------------- |  | - | -------------------- | - |  | - | ------- | 
|                                       |  | March 31, 2011    |        
|                                       |  | AmortizedCost     |         |  | GrossUnrealizedGains |   |         | GrossUnrealizedLosses |  |   | EstimatedFair 
Value |  
|                                       |  | (In Thousands)    |        
|Securities Available-for-Sale          |  |                   |         |  |                      |   |         |                       |  |   |                      |   |  |   |         | 
|Mortgage-Backed Securities             |  |                   |         |  |                      |   |         |                       |  |   |                      |   |  |   |         | 
|FNMA                                   |  | $                 | 8,423   |  |                      | $ | 513     |                       |  | $ |                     |   |  | $ | 8,936   | 
|FHLMC                                  |  |                   | 4,204   |  |                      |   | 280     |                       |  |   |                     |   |  |   | 4,484   | 
|                                       |  |                   |         |  |                      |   |         |                       |  |   |                      |   |  |   |         | 
|                                       |  |                   | 12,627  |  |                      |   | 793     |                       |  |   |                     |   |  |   | 13,420  | 
|                                       |  |                   |         | 
|U.S. Government and Agency Obligations |  |                   | 49,929  |  |                      |   | 241     |                       |  |   | (247                 | ) |  |   | 49,923  | 
|                                       |  |                   |         |  |                      |   |         |                       |  |   |                      |   |  |   |         | 
|Total                                  |  | $                 | 62,556  |  |                      | $ | 1,034   |                       |  | $ | (247                 | ) |  | $ | 63,343  | 
|                                       |  |                   |         |  |                      |   |         |                       |  |   |                      |   |  |   |         | 
|                                       | 
|                                       |  | December 31, 2010 |        
|                                       |  | AmortizedCost     |         |  | GrossUnrealizedGains |   |         | GrossUnrealizedLosses |  |   | EstimatedFair Value  |  
|                                       |  | (In Thousands)    |        
|Securities Available-for-Sale          |  |                   |         |  |                      |   |         |                       |  |   |                      |   |  |   |         | 
|Mortgage-Backed Securities             |  |                   |         |  |                      |   |         |                       |  |   |                      |   |  |   |         | 
|FNMA                                   |  | $                 | 9,770   |  |                      | $ | 584     |                       |  | $ |                     |   |  | $ | 10,354  | 
|FHLMC                                  |  |                   | 4,735   |  |                      |   | 294     |                       |  |   |                     |   |  |   | 5,029   | 
|                                       |  |                   |         |  |                      |   |         |                       |  |   |                      |   |  |   |         | 
|                                       |  |                   | 14,505  |  |                      |   | 878     |                       |  |   |                     |   |  |   | 15,383  | 
|                                       |  |                   |         | 
|U.S. Government and Agency Obligations |  |                   | 46,924  |  |                      |   | 307     |                       |  |   | (125                 | ) |  |   | 47,106  | 
|                                       |  |                   |         |  |                      |   |         |                       |  |   |                      |   |  |   |         | 
|Total                                  |  | $                 | 61,429  |  |                      | $ | 1,185   |                       |  | $ | (125                 | ) |  | $ | 62,489  | 
|                                       |  |                   |         |  |                      |   |         |                       |  |   |                      |   |  |   |         | 



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A summary of securities classified as held-to-maturity at March 31, 2011 and
December 31, 2010, with gross unrealized gains and losses, follows:



|                            |  |                   | $57,129 |  |                      |   | $57,129 |                       |  |   | $57,129              |  |  |   | $57,129 | 
|--------------------------- |  | ----------------- | ------- |  | -------------------- | - | ------- | --------------------- |  | - | -------------------- |  |  | - | ------- | 
|                            |  | March 31, 2011    |        
|                            |  | AmortizedCost     |         |  | GrossUnrealizedGains |   |         | GrossUnrealizedLosses |  |   | EstimatedFair 
Value | 
|                            |  | (In Thousands)    |        
|Securities Held-to-Maturity |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 
|Mortgage-Backed Securities  |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 
|GNMA                        |  | $                 | 7,931   |  |                      | $ | 284     |                       |  | $ |                     |  |  | $ | 8,215   | 
|FNMA                        |  |                   | 29,861  |  |                      |   | 1,893   |                       |  |   |                     |  |  |   | 31,754  | 
|FHLMC                       |  |                   | 18,333  |  |                      |   | 1,314   |                       |  |   |                     |  |  |   | 19,647  | 
|                            |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 
|                            |  |                   | 56,125  |  |                      |   | 3,491   |                       |  |   |                     |  |  |   | 59,616  | 
|Municipal Bonds             |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 
|Revenue Bonds               |  |                   | 285     |  |                      |   | 4       |                       |  |   |                     |  |  |   | 289     | 
|General Obligation Bonds    |  |                   | 719     |  |                      |   | 4       |                       |  |   |                     |  |  |   | 723     | 
|                            |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 
|                            |  |                   | 1,004   |  |                      |   | 8       |                       |  |   |                     |  |  |   | 1,012   | 
|                            |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 
|                            |  |                   |         | 
|Total                       |  | $                 | 57,129  |  |                      | $ | 3,499   |                       |  | $ |                     |  |  | $ | 60,628  | 
|                            |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 
|                            | 
|                            |  | December 31, 2010 |        
|                            |  | AmortizedCost     |         |  | GrossUnrealizedGains |   |         | GrossUnrealizedLosses |  |   | EstimatedFair Value  | 
|                            |  | (In Thousands)    |        
|Securities Held-to-Maturity |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 
|Mortgage-Backed Securities  |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 
|GNMA                        |  | $                 | 8,949   |  |                      | $ | 352     |                       |  | $ |                     |  |  | $ | 9,301   | 
|FNMA                        |  |                   | 33,249  |  |                      |   | 2,080   |                       |  |   |                     |  |  |   | 35,329  | 
|FHLMC                       |  |                   | 19,987  |  |                      |   | 1,368   |                       |  |   |                     |  |  |   | 21,355  | 
|                            |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 
|                            |  |                   | 62,185  |  |                      |   | 3,800   |                       |  |   |                     |  |  |   | 65,985  | 
|Municipal Bonds             |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 
|Revenue Bonds               |  |                   | 285     |  |                      |   | 6       |                       |  |   |                     |  |  |   | 291     | 
|General Obligation Bonds    |  |                   | 1,069   |  |                      |   | 10      |                       |  |   |                     |  |  |   | 1,079   | 
|                            |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 
|                            |  |                   | 1,354   |  |                      |   | 16      |                       |  |   |                     |  |  |   | 1,370   | 
|                            |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 
|                            |  |                   |         | 
|Total                       |  | $                 | 63,539  |  |                      | $ | 3,816   |                       |  | $ |                     |  |  | $ | 67,355  | 
|                            |  |                   |         |  |                      |   |         |                       |  |   |                      |  |  |   |         | 

The amortized cost and fair value of available-for-sale and held-to-maturity securities by contractual
maturity at March 31, 2011, follows. Actual maturities will differ from contractual maturities because borrowers have the right to put or prepay obligations with or without call or prepayment penalties.



|                     |  |                               |        |  |                             |   |        |               |  |   |                     |  |  |   |        | 
|-------------------- |  | ----------------------------- | ------ |  | --------------------------- | - | ------ | ------------- |  | - | ------------------- |  |  | - | ------ | 
|                     |  | Available-for-Sale Securities |        |  | Held-to-Maturity Securities |  
|                     |  | AmortizedCost                 |        |  | EstimatedFair Value         |   |        | AmortizedCost |  |   | EstimatedFair Value | 
|                     |  | (In Thousands)                |       
|Amounts Maturing in: |  |                               |        |  |                             |   |        |               |  |   |                     |  |  |   |        | 
|Less than One Year   |  | $                             |       |  |                             | $ |       |               |  | $ | 1,004               |  |  | $ | 1,012  | 
|One to Five Years    |  |                               | 53,137 |  |                             |   | 53,251 |               |  |   | 2,129               |  |  |   | 2,251  | 
|Five to Ten Years    |  |                               | 4,981  |  |                             |   | 5,337  |               |  |   | 17,492              |  |  |   | 18,746 | 
|Over Ten Years       |  |                               | 4,438  |  |                             |   | 4,755  |               |  |   | 36,504              |  |  |   | 38,619 | 
|                     |  |                               |        |  |                             |   |        |               |  |   |                     |  |  |   |        | 
|                     |  |                               |        | 
|Total                |  | $                             | 62,556 |  |                             | $ | 63,343 |               |  | $ | 57,129              |  |  | $ | 60,628 | 
|                     |  |                               |        |  |                             |   |        |               |  |   |                     |  |  |   |        | 



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Information pertaining to securities with gross unrealized losses at March 31, 2011 and
December 31, 2010, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows:



|                                       |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|-------------------------------------- |  | -------------------------- | --- |  | ----------------------------- | - | ------ | --------------------- |  | - | ------------------ |  |  | - | - | 
|                                       |  | Available-for-Sale         |    
|                                       |  | Losses Less Than 12 Months |     |  | Losses Greater Than 12 Months |  
|                                       |  | GrossUnrealizedLosses      |     |  | EstimatedFairValue            |   |        | GrossUnrealizedLosses |  |   | EstimatedFairValue | 
|                                       |  | (In Thousands)             |    
|March 31, 2011                         |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|Mortgage-Backed Securities             |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|GNMA                                   |  | $                          |    |  |                               | $ |       |                       |  | $ |                   |  |  | $ |  | 
|FNMA                                   |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|FHLMC                                  |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|                                       |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|                                       |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|U.S. Government and Agency Obligations |  |                            | 247 |  |                               |   | 38,753 |                       |  |   |                   |  |  |   |  | 
|                                       |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|Total                                  |  | $                          | 247 |  |                               | $ | 38,753 |                       |  | $ |                   |  |  | $ |  | 
|                                       |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|                                       |  |                            |     | 
|December 31, 2010                      |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|Mortgage-Backed Securities             |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|GNMA                                   |  | $                          |    |  |                               | $ |       |                       |  | $ |                   |  |  | $ |  | 
|FNMA                                   |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|FHLMC                                  |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|                                       |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|                                       |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|U.S. Government and Agency Obligations |  |                            | 125 |  |                               |   | 22,875 |                       |  |   |                   |  |  |   |  | 
|                                       |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|Total                                  |  | $                          | 125 |  |                               | $ | 22,875 |                       |  | $ |                   |  |  | $ |  | 
|                                       |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|                                       | 
|                                       |  | Held-to-Maturity           |    
|                                       |  | Losses Less Than 12 Months |     |  | Losses Greater Than 12 Months |  
|                                       |  | GrossUnrealizedLosses      |     |  | EstimatedFairValue            |   |        | GrossUnrealizedLosses |  |   | EstimatedFairValue | 
|                                       |  | (In Thousands)             |    
|March 31, 2011                         |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|Mortgage-Backed Securities             |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|GNMA                                   |  | $                          |    |  |                               | $ |       |                       |  | $ |                   |  |  | $ |  | 
|FNMA                                   |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|FHLMC                                  |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|                                       |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|                                       |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|U.S. Government and Agency Obligations |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|                                       |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|Total                                  |  | $                          |    |  |                               | $ |       |                       |  | $ |                   |  |  | $ |  | 
|                                       |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|                                       |  |                            |     | 
|December 31, 2010                      |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|Mortgage-Backed Securities             |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|GNMA                                   |  | $                          |    |  |                               | $ |       |                       |  | $ |                   |  |  | $ |  | 
|FNMA                                   |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|FHLMC                                  |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|                                       |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|                                       |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|U.S. Government and Agency Obligations |  |                            |    |  |                               |   |       |                       |  |   |                   |  |  |   |  | 
|                                       |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 
|Total                                  |  | $                          |    |  |                               | $ |       |                       |  | $ |                   |  |  | $ |  | 
|                                       |  |                            |     |  |                               |   |        |                       |  |   |                    |  |  |   |   | 



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The unrealized losses on the Companys investments were caused by interest rate
increases. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be at
maturity, the Company did not consider these investments to be other-than-temporarily impaired at March 31, 2011 or December 31, 2010.

NOTE 3  LOANS

The following table summarizes the composition of our
total net loans receivable:



|                                          |  |                |         |   |                   |   |         |  
|----------------------------------------- |  | -------------- | ------- | - | ----------------- | - | ------- | -
|                                          |  | March 31, 2011 |         |   | December 31, 2010 |  
|                                          |  | (In Thousands) |        
|Loans Secured by Mortgages on Real Estate |  |                |         |   |                   |   |         |  
|1-4 Family Residential                    |  | $              | 98,247  |   |                   | $ | 98,635  |  
|Home Equity Loans and Lines               |  |                | 15,595  |   |                   |   | 15,745  |  
|Multi-family Residential                  |  |                | 13,895  |   |                   |   | 11,785  |  
|Commercial Real Estate                    |  |                | 56,053  |   |                   |   | 52,594  |  
|Land                                      |  |                | 922     |   |                   |   | 951     |  
|                                          |  |                |         |   |                   |   |         |  
|                                          |  |               
|Total Loans Secured by Real Estate        |  |                | 184,712 |   |                   |   | 179,710 |  
|                                          |  |                |         |   |                   |   |         |  
|                                          |  |               
|Consumer and Other Loans                  |  |                |         |   |                   |   |         |  
|Loans Secured by Deposits                 |  |                | 427     |   |                   |   | 464     |  
|Other                                     |  |                | 1,005   |   |                   |   | 900     |  
|                                          |  |                |         |   |                   |   |         |  
|                                          |  |               
|Total Consumer and Other Loans            |  |                | 1,432   |   |                   |   | 1,364   |  
|                                          |  |                |         |   |                   |   |         |  
|                                          |  |               
|Less:                                     |  |                |         |   |                   |   |         |  
|Allowance for Loan Losses                 |  |                | (1,794  | ) |                   |   | (1,759  | )
|Net Deferred Loan Origination Fess/Costs  |  |                | (180    | ) |                   |   | (205    | )
|                                          |  |                |         |   |                   |   |         |  
|                                          |  |               
|Total Loans, Net                          |  | $              | 184,170 |   |                   | $ | 179,110 |  
|                                          |  |                |         |   |                   |   |         |  

A summary of our current, past due and nonaccrual loans as of March 31, 2011 follows:



|                            |  |                     | $184,836 |  |                                     |   | $184,836 |                 |  |   | $184,836       |  |  |              | $184,836 |  |            |   | $184,836 |  |  |   | $184,836 | 
|--------------------------- |  | ------------------- | -------- |  | ----------------------------------- | - | -------- | --------------- |  | - | -------------- |  |  | ------------ | -------- |  | ---------- | - | -------- |  |  | - | -------- | 
|                            |  | 30-89 DaysPast 
Due |          |  | 90 Daysor 
MorePast Dueand Accruing |   |          | NonaccrualLoans |  |   | TotalPast 
Due |  |  | CurrentLoans |          |  | TotalLoans |  
|Real Estate Secured Loans   |  |                     |          |  |                                     |   |          |                 |  |   |                |  |  |              |          |  |            |   |          |  |  |   |          | 
|1-4 Family Residential      |  | $                   | 196      |  |                                     | $ |         |                 |  | $ |               |  |  | $            | 196      |  |            | $ | 98,051   |  |  | $ | 98,247   | 
|Home Equity Loans and Lines |  |                     | 65       |  |                                     |   |         |                 |  |   | 633            |  |  |              | 698      |  |            |   | 14,897   |  |  |   | 15,595   | 
|Multi-family Residential    |  |                     |         |  |                                     |   |         |                 |  |   |               |  |  |              |         |  |            |   | 13,895   |  |  |   | 13,895   | 
|Commercial Real Estate      |  |                     | 312      |  |                                     |   |         |                 |  |   |               |  |  |              | 312      |  |            |   | 55,741   |  |  |   | 56,053   | 
|Land                        |  |                     |         |  |                                     |   |         |                 |  |   | 34             |  |  |              | 34       |  |            |   | 888      |  |  |   | 922      | 
|Consumer and Other Loans    |  |                     |         |  |                                     |   |         |                 |  |   | 68             |  |  |              | 68       |  |            |   | 1,364    |  |  |   | 1,432    | 
|                            |  |                     |          |  |                                     |   |          |                 |  |   |                |  |  |              |          |  |            |   |          |  |  |   |          | 
|Total                       |  | $                   | 573      |  |                                     | $ |         |                 |  | $ | 735            |  |  | $            | 1,308    |  |            | $ | 184,836  |  |  | $ | 186,144  | 
|                            |  |                     |          |  |                                     |   |          |                 |  |   |                |  |  |              |          |  |            |   |          |  |  |   |          | 



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An analysis of the allowance for loan losses follows:



|                             |  |                                 |       |   |                              |   |       |  
|---------------------------- |  | ------------------------------- | ----- | - | ---------------------------- | - | ----- | -
|                             |  | Three MonthsEndedMarch 31, 2011 |       |   | Year EndedDecember 31, 
2010 |  
|                             |  | (in thousands)                  |      
|                             |  |                                
|Balance, Beginning of Period |  | $                               | 1,759 |   |                              | $ | 1,661 |  
|Provision for Loan Losses    |  |                                 | 37    |   |                              |   | 269   |  
|Loans Charged-Off            |  |                                 | (2    | ) |                              |   | (174  | )
|Loan Recoveries              |  |                                 |      |   |                              |   | 3     |  
|                             |  |                                 |       |   |                              |   |       |  
|Balance, End of Period       |  | $                               | 1,794 |   |                              | $ | 1,759 |  
|                             |  |                                 |       |   |                              |   |       |  

The following table details the activity in the allowance for loan losses by portfolio segment for the three
months ended March 31, 2011.



|                                            |  |                                    | $98,247 |  |             |   | $98,247 |              |  |   | $98,247    |  |  |      | $98,247 |  |           |   | $98,247 |       |  |   | $98,247 |   |  |   | $98,247 |  
|------------------------------------------- |  | ---------------------------------- | ------- |  | ----------- | - | ------- | ------------ |  | - | ---------- |  |  | ---- | ------- |  | --------- | - | ------- | ----- |  | - | ------- | - |  | - | ------- | -
|                                            |  | Real Estate Secured Mortgage Loans |         |  |             |   |         |              | 
|                                            |  | 1-4 Family                         |         |  | Home Equity |   |         | Multi-Family |  |   |            |  |  |      |         |  | Consumer  |   |         |       | 
|                                            |  | Residential                        |         |  | Loans/Lines |   |         | Residential  |  |   | Commercial |  |  | Land |         |  | and Other |   |         | Total | 
|                                            |  |                                    |         |  |             |   |        
|Balance, Beginning of Year                  |  | $                                  | 858     |  |             | $ | 270     |              |  | $ | 100        |  |  | $    | 442     |  |           | $ | 9       |       |  | $ | 80      |   |  | $ | 1,759   |  
|Provision for (Recovery of) Loan Losses     |  |                                    | 1       |  |             |   | (4      | )            |  |   | 15         |  |  |      | 27      |  |           |   | (1      | )     |  |   | (1      | ) |  |   | 37      |  
|Loans Charged-Off                           |  |                                    |        |  |             |   | (2      | )            |  |   |           |  |  |      |        |  |           |   |        |       |  |   |        |   |  |   | (2      | )
|Recoveries of prior charge-offs             |  |                                    |        |  |             |   |        |              |  |   |           |  |  |      |        |  |           |   |        |       |  |   |        |   |  |   |        |  
|                                            |  |                                    |         |  |             |   |         |              |  |   |            |  |  |      |         |  |           |   |         |       |  |   |         |   |  |   |         |  
|                                            |  |                                    |         |  |             |   |        
|Balance, End of Year                        |  | $                                  | 859     |  |             | $ | 264     |              |  | $ | 115        |  |  | $    | 469     |  |           | $ | 8       |       |  | $ | 79      |   |  | $ | 1,794   |  
|                                            |  |                                    |         |  |             |   |         |              |  |   |            |  |  |      |         |  |           |   |         |       |  |   |         |   |  |   |         |  
|                                            |  |                                    |         |  |             |   |        
|Ending Balance Allocated to:                |  |                                    |         |  |             |   |         |              |  |   |            |  |  |      |         |  |           |   |         |       |  |   |         |   |  |   |         |  
|Loans individually evaluated for impairment |  | $                                  |        |  |             | $ | 146     |              |  | $ |           |  |  | $    |        |  |           | $ | 1       |       |  | $ | 68      |   |  | $ | 215     |  
|Loans collectively evaluated for impairment |  |                                    | 859     |  |             |   | 118     |              |  |   | 115        |  |  |      | 469     |  |           |   | 7       |       |  |   | 11      |   |  |   | 1,579   |  
|                                            |  |                                    |         |  |             |   |         |              |  |   |            |  |  |      |         |  |           |   |         |       |  |   |         |   |  |   |         |  
|                                            |  | $                                  | 859     |  |             | $ | 264     |              |  | $ | 115        |  |  | $    | 469     |  |           | $ | 8       |       |  | $ | 79      |   |  | $ | 1,794   |  
|                                            |  |                                    |         |  |             |   |         |              |  |   |            |  |  |      |         |  |           |   |         |       |  |   |         |   |  |   |         |  
|                                            |  |                                    |         |  |             |   |        
|Ending Loan Balance                         |  |                                    |         |  |             |   |         |              |  |   |            |  |  |      |         |  |           |   |         |       |  |   |         |   |  |   |         |  
|Disaggregated by Evaluation Method          |  |                                    |         |  |             |   |         |              |  |   |            |  |  |      |         |  |           |   |         |       |  |   |         |   |  |   |         |  
|Loans individually evaluated for impairment |  | $                                  |        |  |             | $ | 309     |              |  | $ |           |  |  | $    |        |  |           | $ |        |       |  | $ | 68      |   |  | $ | 377     |  
|Loans collectively evaluated for impairment |  |                                    | 98,247  |  |             |   | 15,286  |              |  |   | 13,895     |  |  |      | 56,053  |  |           |   | 922     |       |  |   | 1,364   |   |  |   | 185,767 |  
|                                            |  |                                    |         |  |             |   |         |              |  |   |            |  |  |      |         |  |           |   |         |       |  |   |         |   |  |   |         |  
|                                            |  | $                                  | 98,247  |  |             | $ | 15,595  |              |  | $ | 13,895     |  |  | $    | 56,053  |  |           | $ | 922     |       |  | $ | 1,432   |   |  | $ | 186,144 |  
|                                            |  |                                    |         |  |             |   |         |              |  |   |            |  |  |      |         |  |           |   |         |       |  |   |         |   |  |   |         |  

A summary of the loans evaluated for possible impairment follows:



|                                              |  |                |     |  |                   |   |     | 
|--------------------------------------------- |  | -------------- | --- |  | ----------------- | - | --- | 
|                                              |  | March 31, 2011 |     |  | December 31, 2010 |  
|                                              |  | (In Thousands) |    
|Impaired Loans Requiring a Loss Allowance     |  | $              | 377 |  |                   | $ | 410 | 
|Impaired Loans not Requiring a Loss Allowance |  |                | 358 |  |                   |   | 498 | 
|                                              |  |                |     |  |                   |   |     | 
|                                              |  |               
|Total Impaired Loans                          |  | $              | 735 |  |                   | $ | 908 | 
|                                              |  |                |     |  |                   |   |     | 
|                                              |  |               
|Loss Allowance on Impaired Loans              |  | $              | 215 |  |                   | $ | 222 | 
|                                              |  |                |     |  |                   |   |     | 

At March 31, 2011 and December 31, 2010, all impaired loans were in nonaccrual status. The Bank
did not hold any renegotiated loans on these dates. At both March 31, 2011 and December 31, 2010, approximately $34,000 of interest was foregone on nonaccrual loans.



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The following table provides additional information with respect to impaired loans by
portfolio segment and the impairment methodology used to analyze the credit. The recorded investment is presented gross of any specific valuation allowance.



|                                          |  |                    |     |  |                        |   |     |                  |  |   |                              |  |  |                          |     |  |  |   |   | 
|----------------------------------------- |  | ------------------ | --- |  | ---------------------- | - | --- | ---------------- |  | - | ---------------------------- |  |  | ------------------------ | --- |  |  | - | - | 
|As of March 31, 2011                      |  | RecordedInvestment |     |  | UnpaidPrincipalBalance |   |     | RelatedAllowance |  |   | AverageRecordedInvestmentYTD |  |  | InterestIncomeRecognized |    
|Impaired loans with no related allowance: |  |                    |     |  |                        |   |     |                  |  |   |                              |  |  |                          |     |  |  |   |   | 
|Loans Secured by Mortgages on Real Estate |  |                    |     |  |                        |   |     |                  |  |   |                              |  |  |                          |     |  |  |   |   | 
|1-4 Family Residential                    |  | $                  |    |  |                        | $ |    |                  |  | $ |                             |  |  | $                        | 62  |  |  | $ |  | 
|Home Equity Loans and Lines               |  |                    | 324 |  |                        |   | 324 |                  |  |   |                             |  |  |                          | 333 |  |  |   |  | 
|Multi-family Residential                  |  |                    |    |  |                        |   |    |                  |  |   |                             |  |  |                          |    |  |  |   |  | 
|Commercial Real Estate                    |  |                    |    |  |                        |   |    |                  |  |   |                             |  |  |                          |    |  |  |   |  | 
|Land                                      |  |                    | 34  |  |                        |   | 34  |                  |  |   |                             |  |  |                          | 34  |  |  |   |  | 
|Consumer and Other Loans                  |  |                    |    |  |                        |   |    |                  |  |   |                             |  |  |                          |    |  |  |   |  | 
|                                          |  |                    |     |  |                        |   |     |                  |  |   |                              |  |  |                          |     |  |  |   |   | 
|Total                                     |  | $                  | 358 |  |                        | $ | 358 |                  |  | $ |                             |  |  | $                        | 429 |  |  | $ |  | 
|                                          |  |                    |     |  |                        |   |     |                  |  |   |                              |  |  |                          |     |  |  |   |   | 
|                                          |  |                    |     |  |                       
|Impaired loans with a related allowance:  |  |                    |     |  |                        |   |     |                  |  |   |                              |  |  |                          |     |  |  |   |   | 
|Loans Secured by Mortgages on Real Estate |  |                    |     |  |                        |   |     |                  |  |   |                              |  |  |                          |     |  |  |   |   | 
|1-4 Family Residential                    |  | $                  |    |  |                        | $ |    |                  |  | $ |                             |  |  | $                        |    |  |  | $ |  | 
|Home Equity Loans and Lines               |  |                    | 309 |  |                        |   | 309 |                  |  |   | 146                          |  |  |                          | 325 |  |  |   |  | 
|Multi-family Residential                  |  |                    |    |  |                        |   |    |                  |  |   |                             |  |  |                          |    |  |  |   |  | 
|Commercial Real Estate                    |  |                    |    |  |                        |   |    |                  |  |   |                             |  |  |                          |    |  |  |   |  | 
|Land                                      |  |                    |    |  |                        |   |    |                  |  |   | 1                            |  |  |                          |    |  |  |   |  | 
|Consumer and Other Loans                  |  |                    | 68  |  |                        |   | 68  |                  |  |   | 68                           |  |  |                          | 69  |  |  |   |  | 
|                                          |  |                    |     |  |                        |   |     |                  |  |   |                              |  |  |                          |     |  |  |   |   | 
|Total                                     |  | $                  | 377 |  |                        | $ | 377 |                  |  | $ | 215                          |  |  | $                        | 394 |  |  | $ |  | 
|                                          |  |                    |     |  |                        |   |     |                  |  |   |                              |  |  |                          |     |  |  |   |   | 
|                                          |  |                    |     |  |                       
|Total Impaired Loans                      |  |                    |     |  |                        |   |     |                  |  |   |                              |  |  |                          |     |  |  |   |   | 
|Loans Secured by Mortgages on Real Estate |  |                    |     |  |                        |   |     |                  |  |   |                              |  |  |                          |     |  |  |   |   | 
|1-4 Family Residential                    |  | $                  |    |  |                        | $ |    |                  |  | $ |                             |  |  | $                        | 62  |  |  | $ |  | 
|Home Equity Loans and Lines               |  |                    | 633 |  |                        |   | 633 |                  |  |   | 146                          |  |  |                          | 658 |  |  |   |  | 
|Multi-family Residential                  |  |                    |    |  |                        |   |    |                  |  |   |                             |  |  |                          |    |  |  |   |  | 
|Commercial Real Estate                    |  |                    |    |  |                        |   |    |                  |  |   |                             |  |  |                          |    |  |  |   |  | 
|Land                                      |  |                    | 34  |  |                        |   | 34  |                  |  |   | 1                            |  |  |                          | 34  |  |  |   |  | 
|Consumer and Other Loans                  |  |                    | 68  |  |                        |   | 68  |                  |  |   | 68                           |  |  |                          | 69  |  |  |   |  | 
|                                          |  |                    |     |  |                        |   |     |                  |  |   |                              |  |  |                          |     |  |  |   |   | 
|Total                                     |  | $                  | 735 |  |                        | $ | 735 |                  |  | $ | 215                          |  |  | $                        | 823 |  |  | $ |  | 
|                                          |  |                    |     |  |                        |   |     |                  |  |   |                              |  |  |                          |     |  |  |   |   | 

The following table summarizes the credit grades assigned to our loan portfolio as of March 31, 2011.
Additional information related to the criteria used to assess these risk ratings can be found in the Companys Annual Report for the year ended December 31, 2010. These balances are presented gross on any allowance for loan loss.



|                       |  |                                    | $186,144 |  |                        |   | $186,144 |                         |  |   | $186,144   |  |  |      | $186,144 |  |                   |   | $186,144 |       |  |   | $186,144 |  |  |   | $186,144 | 
|---------------------- |  | ---------------------------------- | -------- |  | ---------------------- | - | -------- | ----------------------- |  | - | ---------- |  |  | ---- | -------- |  | ----------------- | - | -------- | ----- |  | - | -------- |  |  | - | -------- | 
|                       |  | Real Estate Secured Mortgage Loans |          |  |                        |   |          |                         | 
|                       |  | 1-4 FamilyResidential              |          |  | Home EquityLoans/Lines |   |          | Multi-FamilyResidential |  |   | Commercial |  |  | Land |          |  | Consumerand Other |   |          | Total | 
|Credit Classification: |  |                                    |          |  |                        |   |          |                         |  |   |            |  |  |      |          |  |                   |   |          |       |  |   |          |  |  |   |          | 
|Pass                   |  | $                                  | 98,247   |  |                        | $ | 14,888   |                         |  | $ | 13,895     |  |  | $    | 56,053   |  |                   | $ | 888      |       |  | $ | 1,364    |  |  | $ | 185,335  | 
|Special Mention        |  |                                    |         |  |                        |   | 130      |                         |  |   |           |  |  |      |         |  |                   |   |         |       |  |   |         |  |  |   | 130      | 
|Substandard            |  |                                    |         |  |                        |   | 268      |                         |  |   |           |  |  |      |         |  |                   |   | 34       |       |  |   |         |  |  |   | 302      | 
|Loss                   |  |                                    |         |  |                        |   | 309      |                         |  |   |           |  |  |      |         |  |                   |   |         |       |  |   | 68       |  |  |   | 377      | 
|                       |  |                                    |          |  |                        |   |          |                         |  |   |            |  |  |      |          |  |                   |   |          |       |  |   |          |  |  |   |          | 
|Total                  |  | $                                  | 98,247   |  |                        | $ | 15,595   |                         |  | $ | 13,895     |  |  | $    | 56,053   |  |                   | $ | 922      |       |  | $ | 1,432    |  |  | $ | 186,144  | 
|                       |  |                                    |          |  |                        |   |          |                         |  |   |            |  |  |      |          |  |                   |   |          |       |  |   |          |  |  |   |          | 



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NOTE 4  EARNINGS PER COMMON SHARE

Earnings per common share (EPS) are computed using the weighted average number of shares outstanding as prescribed in FASB ASC
260-10, Earnings per Share. Net income is divided by the weighted average number of shares outstanding during the period to calculate basic net earnings per common share. Diluted earnings per common share are calculated to give effect to
dilutive stock options.



|                                                    |  |                              |            |   |      |   |            |  
|--------------------------------------------------- |  | ---------------------------- | ---------- | - | ---- | - | ---------- | -
|                                                    |  | Three Months Ended March 31, |           
|                                                    |  | 2011                         |            |   | 2010 |  
|                                                    |  |                             
|Net Income                                          |  | $                            | 579,000    |   |      | $ | 585,000    |  
|                                                    |  |                              |            |   |      |   |            |  
|                                                    |  |                             
|Weighted Average Shares Issued                      |  |                              | 6,345,732  |   |      |   | 6,345,732  |  
|Weighted Average Unearned ESOP Shares               |  |                              | (418,813   | ) |      |   | (444,204   | )
|Weighted Average Unearned RRP Shares                |  |                              | (142,892   | ) |      |   | (186,710   | )
|Weighted Average Treasury Shares                    |  |                              | (2,715,169 | ) |      |   | (1,672,548 | )
|                                                    |  |                              |            |   |      |   |            |  
|Weighted Average Shares Outstanding for Basic EPS   |  |                              | 3,068,858  |   |      |   | 4,042,270  |  
|                                                    |  |                              |            |   |      |   |            |  
|                                                    |  |                             
|Earnings per Share, Basic                           |  | $                            | 0.19       |   |      | $ | 0.14       |  
|                                                    |  |                              |            |   |      |   |            |  
|                                                    |  |                             
|Weighted Average Shares Outstanding for Basic EPS   |  |                              | 3,068,858  |   |      |   | 4,042,270  |  
|Effect of Dilutive Securities                       |  |                              | 107,572    |   |      |   | 110,822    |  
|                                                    |  |                              |            |   |      |   |            |  
|Weighted Average Shares Outstanding for Diluted EPS |  |                              | 3,176,430  |   |      |   | 4,153,092  |  
|                                                    |  |                              |            |   |      |   |            |  
|                                                    |  |                             
|Earnings per Shares, Diluted                        |  | $                            | 0.18       |   |      | $ | 0.14       |  
|                                                    |  |                              |            |   |      |   |            |  

NOTE 5  REGULATORY CAPITAL

The actual and required regulatory capital amounts and ratios applicable to the Bank at March 31, 2011 and December 31, 2010, are presented in the following table:



|                          |  |                        |        |  |                               |  |       |                                                                       |  |   |        |  |  |        |      |   |       |   |        |  |  |  |       |  
|------------------------- |  | ---------------------- | ------ |  | ----------------------------- |  | ----- | --------------------------------------------------------------------- |  | - | ------ |  |  | ------ | ---- | - | ----- | - | ------ |  |  |  | ----- | -
|                          |  | Actual                 |        |  | Minimum for 
AdequacyPurposes |  |       | Minimum to be WellCapitalized
UnderPrompt CorrectiveAction Provisions | 
|                          |  | Amount                 |        |  | Ratio                         |  |       | Amount                                                                |  |   | Ratio  |  |  | Amount |      |   | Ratio |  
|                          |  | (Dollars In Thousands) |       
|March 31, 2011            |  |                        |        |  |                               |  |       |                                                                       |  |   |        |  |  |        |      |   |       |   |        |  |  |  |       |  
|Tangible Capital          |  | $                      | 51,621 |  |                               |  | 16.01 | %                                                                     |  | $ | 4,837  |  |  |        | 1.50 | % |       |   | N/A    |  |  |  | N/A   |  
|Core/Leverage Capital     |  |                        | 51,621 |  |                               |  | 16.01 | %                                                                     |  |   | 9,675  |  |  |        | 3.00 | % |       | $ | 16,125 |  |  |  | 5.00  | %
|Tier 1 Risk-Based Capital |  |                        | 51,560 |  |                               |  | 33.30 | %                                                                     |  |   | 6,192  |  |  |        | 4.00 | % |       |   | 9,289  |  |  |  | 6.00  | %
|Total Risk-Based Capital  |  |                        | 53,140 |  |                               |  | 34.33 | %                                                                     |  |   | 12,385 |  |  |        | 8.00 | % |       |   | 15,481 |  |  |  | 10.00 | %
|                          |  |                        |        |  |                               | 
|December 31, 2010         |  |                        |        |  |                               |  |       |                                                                       |  |   |        |  |  |        |      |   |       |   |        |  |  |  |       |  
|Tangible Capital          |  | $                      | 51,060 |  |                               |  | 16.02 | %                                                                     |  | $ | 4,780  |  |  |        | 1.50 | % |       |   | N/A    |  |  |  | N/A   |  
|Core/Leverage Capital     |  |                        | 51,060 |  |                               |  | 16.02 | %                                                                     |  |   | 9,559  |  |  |        | 3.00 | % |       | $ | 15,932 |  |  |  | 5.00  | %
|Tier 1 Risk-Based Capital |  |                        | 50,999 |  |                               |  | 33.68 | %                                                                     |  |   | 6,056  |  |  |        | 4.00 | % |       |   | 9,084  |  |  |  | 6.00  | %
|Total Risk-Based Capital  |  |                        | 52,537 |  |                               |  | 34.70 | %                                                                     |  |   | 12,112 |  |  |        | 8.00 | % |       |   | 15,140 |  |  |  | 10.00 | %



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##### Table of Contents

The Banks capital under accounting principles generally accepted in the United States
(GAAP) is reconciled to its regulatory capital as follows:



|                                                  |  |                |        |   |                   |   |        |  
|------------------------------------------------- |  | -------------- | ------ | - | ----------------- | - | ------ | -
|                                                  |  | March 31, 2011 |        |   | December 31, 2010 |  
|                                                  |  | (In Thousands) |       
|                                                  |  |               
|Capital Under GAAP                                |  | $              | 52,079 |   |                   | $ | 51,697 |  
|Unrealized Gains on Available-for-Sale Securities |  |                | (458   | ) |                   |   | (637   | )
|                                                  |  |                |        |   |                   |   |        |  
|Tier 1 Capital                                    |  |                | 51,621 |   |                   |   | 51,060 |  
|                                                  |  |               
|Allowance for Loan Losses                         |  |                | 1,580  |   |                   |   | 1,538  |  
|Recourse Obligations                              |  |                | (61    | ) |                   |   | (61    | )
|                                                  |  |                |        |   |                   |   |        |  
|Total Risk-Based Capital                          |  | $              | 53,140 |   |                   | $ | 52,537 |  
|                                                  |  |                |        |   |                   |   |        |  

NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company adopted FASB ASC 820, Fair Value Measurements,on January 1, 2008 for all financial assets and liabilities and
nonfinancial assets and liabilities that are recognized at fair value in the financial statements. FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

FASB ASC 820 defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an
orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in
pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk.

In addition to defining fair value, FASB ASC 820 expands the disclosure requirements around fair value and establishes a fair value
hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. The level in the fair value hierarchy within which a fair value
measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:



| |  | Level 1 - Quoted prices for identical assets or liabilities in active markets.
|- |  | ------------------------------------------------------------------------------



| |  | Level 2 - Observable inputs other than quoted prices included within Level I, such as quoted prices for similar instruments in active markets, quoted
prices for identical or similar instruments in markets that are not active, or other inputs that are observable in the market or can be corroborated by observable market data.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Level 3 - Inputs are generally unobservable and typically reflect managements estimates of assumptions that market participants would use in
pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

The following table presents the Companys assets and liabilities measured at fair
value on a recurring basis at March 31, 2011 and December 31, 2010. All of the mortgage-backed securities reported at fair value on March 31, 2011, and December 31, 2010, were secured by first mortgage loans on residential real
estate.



|                                     |  |                         |        |  |           |   |     |           |  |   |           |  |  |   |   | 
|------------------------------------ |  | ----------------------- | ------ |  | --------- | - | --- | --------- |  | - | --------- |  |  | - | - | 
|                                     |  | Fair Value Measurements |       
|March 31, 2011                       |  | Total                   |        |  | (Level 1) |   |     | (Level 2) |  |   | (Level 3) | 
|                                     |  | (In Thousands)          |       
|Assets:                              |  |                         |        |  |           |   |     |           |  |   |           |  |  |   |   | 
|Available-for-Sale Securities        |  |                         |        |  |           |   |     |           |  |   |           |  |  |   |   | 
|Mortgage-Backed Securities           |  | $                       | 13,420 |  |           | $ |    |           |  | $ | 13,420    |  |  | $ |  | 
|US Government and Agency Obligations |  |                         | 49,923 |  |           |   |    |           |  |   | 49,923    |  |  |   |  | 
|Loans Held-for-Sale                  |  |                         | 213    |  |           |   | 213 |           |  |   |          |  |  |   |  | 
|                                     |  |                         |        |  |           |   |     |           |  |   |           |  |  |   |   | 
|                                     |  |                         |        | 
|Total                                |  | $                       | 63,556 |  |           | $ | 213 |           |  | $ | 63,343    |  |  | $ |  | 
|                                     |  |                         |        |  |           |   |     |           |  |   |           |  |  |   |   | 
|                                     | 
|                                     |  | Fair Value Measurements |       
|December 31, 2010                    |  | Total                   |        |  | (Level 1) |   |     | (Level 2) |  |   | (Level 3) | 
|                                     |  | (In Thousands)          |       
|Assets:                              |  |                         |        | 
|Available-for-Sale Securities        |  |                         |        |  |           |   |     |           |  |   |           |  |  |   |   | 
|Mortgage-Backed Securities           |  | $                       | 15,383 |  |           | $ |    |           |  | $ | 15,383    |  |  | $ |  | 
|US Government and Agency Obligations |  |                         | 47,106 |  |           |   |    |           |  |   | 47,106    |  |  |   |  | 
|Loans Held-for-Sale                  |  |                         | 187    |  |           |   | 187 |           |  |   |          |  |  |   |  | 
|                                     |  |                         |        |  |           |   |     |           |  |   |           |  |  |   |   | 
|                                     |  |                         |        | 
|Total                                |  | $                       | 62,676 |  |           | $ | 187 |           |  | $ | 62,489    |  |  | $ |  | 
|                                     |  |                         |        |  |           |   |     |           |  |   |           |  |  |   |   | 

The Company did not record any liabilities at fair market value for which measurement of the fair value was
made on a recurring basis at March 31, 2011 or December 31, 2010.

The following table presents the Companys
assets and liabilities measured at fair value on a non-recurring basis at March 31, 2011 and December 31, 2010.



|                        |  |                         |       |  |           |   |   |           |  |   |           |  |  |   |     | 
|----------------------- |  | ----------------------- | ----- |  | --------- | - | - | --------- |  | - | --------- |  |  | - | --- | 
|                        |  | Fair Value Measurements |      
|March 31, 2011          |  | Total                   |       |  | (Level 1) |   |   | (Level 2) |  |   | (Level 3) | 
|                        |  | (In Thousands)          |      
|Assets:                 |  |                         |       | 
|Impaired Loans          |  | $                       | 479   |  |           | $ |  |           |  | $ |          |  |  | $ | 479 | 
|Other Real Estate Owned |  |                         | 1,346 |  |           |   |  |           |  |   | 1,346     |  |  |   |    | 
|                        |  |                         |       |  |           |   |   |           |  |   |           |  |  |   |     | 
|                        |  |                         |       | 
|Total                   |  | $                       | 1,825 |  |           | $ |  |           |  | $ | 1,346     |  |  | $ | 479 | 
|                        |  |                         |       |  |           |   |   |           |  |   |           |  |  |   |     | 
|                        | 
|                        |  | Fair Value Measurements |      
|December 31, 2010       |  | Total                   |       |  | (Level 1) |   |   | (Level 2) |  |   | (Level 3) | 
|                        |  | (In Thousands)          |      
|Assets:                 |  |                         |       | 
|Impaired Loans          |  | $                       | 522   |  |           | $ |  |           |  | $ |          |  |  | $ | 522 | 
|Other Real Estate Owned |  |                         | 1,696 |  |           |   |  |           |  |   | 1,696     |  |  |   |    | 
|                        |  |                         |       |  |           |   |   |           |  |   |           |  |  |   |     | 
|                        |  |                         |       | 
|Total                   |  | $                       | 2,218 |  |           | $ |  |           |  | $ | 1,696     |  |  | $ | 522 | 
|                        |  |                         |       |  |           |   |   |           |  |   |           |  |  |   |     | 

The Company did not record any liabilities at fair market value for which measurement of the fair value was
made on a non-recurring basis at March 31, 2011 or December 31, 2010.



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FASB ASC 825, Financial Instruments, requires disclosure of the fair value of
financial instruments for which it is practical to estimate. Included in this disclosure are the methods and significant assumptions used to estimate the fair value of financial instruments. A detailed description of the valuation methodologies used
in estimating the fair value of the financial instruments can be found in the Companys Annual Report on Form 10-K for the year ended December 31, 2010.



|                                                                |  |                |         |   |                   |   |         |                |  |   |            |   |  |   |         |  
|--------------------------------------------------------------- |  | -------------- | ------- | - | ----------------- | - | ------- | -------------- |  | - | ---------- | - |  | - | ------- | -
|                                                                |  | March 31, 2011 |         |   | December 31, 2010 |  
|                                                                |  | CarryingAmount |         |   | Fair Value        |   |         | CarryingAmount |  |   | Fair Value |  
|                                                                |  | (In Thousands) |        
|Financial Assets                                                |  |                |         |   |                   |   |         |                |  |   |            |   |  |   |         |  
|Cash and Cash Equivalents                                       |  | $              | 11,214  |   |                   | $ | 11,214  |                |  | $ | 6,610      |   |  | $ | 6,610   |  
|Certificates of Deposit                                         |  |                | 635     |   |                   |   | 639     |                |  |   | 635        |   |  |   | 640     |  
|Securities                                                      |  |                | 120,472 |   |                   |   | 123,971 |                |  |   | 126,028    |   |  |   | 129,844 |  
|                                                                |  |                |         |  
|Loans                                                           |  |                | 185,964 |   |                   |   | 193,201 |                |  |   | 180,869    |   |  |   | 187,846 |  
|Less Allowance for Loan Losses                                  |  |                | (1,794  | ) |                   |   | (1,802  | )              |  |   | (1,759     | ) |  |   | (1,759  | )
|                                                                |  |                |         |   |                   |   |         |                |  |   |            |   |  |   |         |  
|Loans, Net of Allowance                                         |  |                | 184,170 |   |                   |   | 191,399 |                |  |   | 179,110    |   |  |   | 186,087 |  
|                                                                |  |                |         |  
|Federal Home Loan Bank Stock                                    |  |                | 2,012   |   |                   |   | 2,012   |                |  |   | 2,002      |   |  |   | 2,002   |  
|                                                                |  |                |         |  
|Financial Liabilities                                           |  |                |         |   |                   |   |         |                |  |   |            |   |  |   |         |  
|Deposits                                                        |  | $              | 192,816 |   |                   | $ | 194,709 |                |  | $ | 188,362    |   |  | $ | 193,225 |  
|Borrowings                                                      |  |                | 67,459  |   |                   |   | 70,753  |                |  |   | 68,248     |   |  |   | 71,556  |  
|                                                                |  |                |         |  
|Unrecognized Financial Instruments Commitments to Extend Credit |  | $              | 15,997  |   |                   | $ | 16,301  |                |  | $ | 17,398     |   |  | $ | 17,739  |  

NOTE 7  SUBSEQUENT EVENTS

On April 20, 2011, the Office of Thrift Supervision (OTS) notified the Bank that it had no
objection to a proposed dividend of $6.8 million payable to the Company, the Banks sole shareholder. The Bank requested permission from the OTS to pay the dividend in order to provide liquidity to the Companys capital management
strategies including, but not limited to, cash dividends and stock repurchase plans. On April 28, 2011, following approval from the Banks board of directors, the cash dividend of $6.8 million was paid to the Company. The Banks
regulatory capital continued to exceed the amounts required to be considered well capitalized after the payment of this dividend.

In accordance with FASB ASC 855, Subsequent Events, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements. The
effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of March 31, 2011. In preparing these financial statements, the Company
evaluated the events and transactions that occurred through the date these financial statements were issued.



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Item 2  Managements Discussion and Analysis of Financial
Condition and Results of Operations.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains certain forward-looking statements and information relating to the Company and the Bank that
are based on the beliefs of management as well as assumptions made by and information currently available to management. In addition, in portions of this document the words anticipate, believe, estimate,
expect, intend, should and similar expressions or the negative thereof, as they relate to the Company or the Bank or their management, are intended to identify forward-looking statements. Such statements reflect
the current views of the Company and/or the Bank with respect to forward-looking events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions
prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. The Company does not intend to update these forward-looking statements.

General

The
Companys results of operations are primarily dependent on the results of the Bank, which is a wholly owned subsidiary of the Company. The Banks results of operations depend, to a large extent, on net interest income, which is the
difference between the income earned on its loan and investment portfolios and the cost of funds, consisting of the interest paid on deposits and borrowings. Results of operations are also affected by provisions for, or recoveries from, the
allowance for loan losses, fee income and other non-interest income and non-interest expense. Non-interest expense principally consists of compensation and employee benefits, office occupancy and equipment expense, data processing, advertising and
business promotion and other expense. Our results of operations are also significantly affected by general economic and competitive conditions, particularly changes in interest rates, government policies and actions of regulatory authorities. Future
changes in applicable law, regulations or government policies may materially impact our financial conditions and results of operations.

Critical Accounting Policies

In reviewing and understanding financial information for the Company, you are encouraged to read and understand the significant accounting policies used in preparing our financial statements. These
policies are described in Note 1 of the notes to our financial statements. The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America and to general practices
within the banking industry. Accordingly, the financial statements require certain estimates, judgments, and assumptions, which are believed to be reasonable, based upon the information available. These estimates and assumptions affect the reported
amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the periods presented. The following accounting policies comprise those that management believes are the most critical
to aid in fully understanding and evaluating our reported financial results. These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported
results and financial condition for the period or in future periods.

Allowance for Loan Losses. The allowance for loan
losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes that the collectibility of the principal is unlikely. Subsequent recoveries are added to
the allowance. The allowance is an amount that represents the amount of probable and reasonably estimable known and inherent losses in the loan portfolio, based on evaluations of the collectibility of loans. The evaluations take into consideration
such factors as changes in the types and amount of loans in the loan portfolio, historical loss experience, adverse situations that may affect the borrowers ability to repay, the estimated value of any underlying collateral, estimated losses
relating to specifically identified loans, and current economic conditions. This evaluation is inherently subjective as it requires material estimates including, among others, exposure at default, the amount and timing of expected future cash flows
on impacted loans, the value of collateral, estimated losses on our commercial and residential loan portfolios and general amounts for historical loss experience. All of these estimates may be susceptible to significant change.

While management uses the best information available to make loan loss allowance evaluations, adjustments to the allowance may be
necessary based on changes in economic and other conditions or changes in accounting guidance. Historically, our estimates of the allowance for loan loss have not required significant adjustments from managements initial estimates. In
addition, the Office of Thrift Supervision, as an integral part of its examination processes, periodically reviews our allowance for loan losses. The Office of Thrift Supervision may require the recognition of adjustments to the allowance for loan
losses based on its judgment of information available to it at the time of its examinations. To the extent that actual outcomes differ from managements estimates, additional provisions to the allowance for loan losses may be required that
would adversely impact earnings in future periods.

Income Taxes. We make estimates and judgments to calculate some of
our tax liabilities and determine the recoverability of some of our deferred tax assets, which arise from temporary differences between the tax and financial



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statement recognition of revenues and expenses. We also estimate a reserve for deferred tax assets if, based on the available evidence, it is more likely than not that some portion or all of the
recorded deferred tax assets will not be realized in future periods. These estimates and judgments are inherently subjective. Historically, our estimates and judgments to calculate our deferred tax accounts have not required significant revision to
our initial estimates.

In evaluating our ability to recover deferred tax assets, we consider all available positive and
negative evidence, including our past operating results, recent cumulative losses and our forecast of future taxable income. In determining future taxable income, we make assumptions for the amount of taxable income, the reversal of temporary
differences and the implementation of feasible and prudent tax planning strategies. These assumptions require us to make judgments about our future taxable income and are consistent with the plans and estimates we use to manage our business. Any
reduction in estimated future taxable income may require us to record a valuation allowance against our deferred tax assets. An increase in the valuation allowance would result in additional income tax expense in the period and could have a
significant impact on our future earnings.

Comparison of Financial Condition at March 31, 2011 and December 31, 2010

Total assets were $324.5 million at March 31, 2011, an increase of $3.6 million from December 31, 2010. Cash and
cash equivalents were $11.2 million and $6.6 million at March 31, 2011 and December 31, 2010, respectively. Total securities available-for-sale were $63.3 million at March 31, 2011, an increase of $854,000 compared to
December 31, 2010. This increase incurred primarily in US Agency debt securities with maturities of three years or less. During the first quarter of 2011, total securities held-to-maturity decreased by $6.4 million, to $57.1 million. This
decrease in the balance of our securities held-to-maturity was due to the receipt of scheduled principal reductions in addition to accelerated prepayments of the underlying mortgage loans on mortgage-backed securities. Net loans receivable were
$184.2 million at March 31, 2011, an increase of $5.1 million compared to December 31, 2010. During the quarter ended March 31, 2011, our first mortgage loans secured by multifamily residential collateral increased by $2.1 million,
and our first mortgage loans secured by non-residential commercial real estate increased by $3.5 million.

Total impaired
loans were $735,000 and $908,000, respectively, at March 31, 2011 and December 31, 2010. At these dates, our impaired loans were comprised solely of nonaccrual loans. Other real estate owned was $1.3 million at March 31, 2011, and
$1.7 million at December 31, 2010. At March 31, 2011, our other real estate owned consisted a single-family residence located in suburban New Orleans with a fair market value of $900,000 and a $1 million participation interest in a $170
million construction loan to finance a multi-use property in Baton Rouge, Louisiana. The fair market value of our participation interest in this project was $446,000 at March 31, 2011. Total nonperforming assets were $2.1 million at
March 31, 2011, and $2.6 million at December 31, 2010. Expressed as a percentage of total assets, nonperforming assets were 0.64% at March 31, 2011, and 0.81% at December 31, 2010.

Total deposits were $192.8 million at March 31, 2011, and $188.4 million at December 31, 2010. Non-interest bearing deposits
increased during the first three months of 2011 by $2.1 million, to $10.3 million, and interest-bearing deposits increased by $2.3 million, to $182.6 million. Total Federal Home Loan Bank advances and other borrowings were $67.5 million at
March 31, 2011, a decrease of $789,000 from December 31, 2010.

Total shareholders equity was $61.0 million at
March 31, 2011, an increase of $688,000 from December 31, 2010. During the first quarter of 2011, the Company acquired 17,603 shares of Treasury stock at a cost of $259,000, pursuant to its repurchase plans. Total shareholders equity
was further decreased by a reduction in accumulated other comprehensive income of $181,000 These decreases were offset by net income of $579,000, and the release of 42,284 shares held by the Recognition and Retention Plan Trust, with a cost basis of
$533,000, which became vested and were released to plan participants. The Banks tier 1 capital ratio was 16.01% at March 31, 2011, which was well in excess of well-capitalized regulatory standards at such date. Tier 1 risk-based capital
and total risk-based capital were 33.30% and 34.33%, respectively, at March 31, 2011.

Comparison of Our Operating Results for the
Three Months Ended March 31, 2011 and 2010

General.Net income for the quarter ended March 31, 2011 was
$579,000, a decrease of $6,000 from the first quarter of 2010. Net interest income was $2.5 million for the three months ended March 31, 2011, a decrease of $141,000 compared to the three months ended March 31, 2010. Interest income for
the first quarter of 2011 was $3.8 million, a decrease of $262,000 compared to the first quarter of 2010. This decrease in interest income was primarily due to a $4.9 million decrease in our average interest-earning assets during the respective
periods, and a 25 basis point decrease in the average yield of our interest-earning assets. The decrease in average yield between the respective periods was due to a



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##### Table of Contents

decrease in market rates of interest for comparable duration assets. Interest expense for the first quarter of 2011 was $1.4 million, a decrease of $121,000 compared to the first quarter of 2010.
Between these periods, the average balance of our interest-bearing liabilities increased by $5.1 million, while the average cost of our interest-bearing liabilities decreased by 24 basis points. Non-interest income increased by $108,000 between the
respective first quarters of 2011 and 2010 due primarily to increases in our fees earned on reverse mortgage loan originations and increased gains on the sale of residential mortgage loans. Non-interest expense for the three month period ended
March 31, 2011 was $1.7 million, a decrease of $17,000 compared to the three month period ended March 31, 2010.

Average Balances, Net Interest Income, and Yields Earned and Rates Paid. The following tables show for the periods indicated the
total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin.
Tax-exempt income and yields have not been adjusted to a tax-equivalent basis. All average balances are based on monthly balances. Management does not believe that the monthly averages differ significantly from what the daily averages would be.



|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|----------------------------------------------------------------------- |  | ---------------------------- | ------- |  | -------- | - | ----- | ----------------- |  |  | -------------- | - |  | -------- | ------- |  | ----------------- | - | ----- |  |  |  | ------ | -
|                                                                        |  | Three months Ended March 31, |        
|                                                                        |  | 2011                         |         |  | 2010     |  
|                                                                        |  | AverageBalance               |         |  | Interest |   |       | AverageYield/Rate |  |  | AverageBalance |   |  | Interest |         |  | AverageYield/Rate |  
|                                                                        |  | (Dollars in Thousands)       |        
|Interest-Earning Assets:                                                |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|Loans Receivable (1)                                                    |  | $                            | 183,032 |  |          | $ | 2,730 |                   |  |  | 5.97           | % |  | $        | 161,031 |  |                   | $ | 2,451 |  |  |  | 6.09   | %
|Mortgage-backed Securities                                              |  |                              | 73,316  |  |          |   | 897   |                   |  |  | 4.89           | % |  |          | 112,711 |  |                   |   | 1,415 |  |  |  | 5.02   | %
|Investment Securities                                                   |  |                              | 50,366  |  |          |   | 196   |                   |  |  | 1.56           | % |  |          | 39,933  |  |                   |   | 218   |  |  |  | 2.18   | %
|Other Interest-Earnings Assets                                          |  |                              | 7,467   |  |          |   | 8     |                   |  |  | 0.43           | % |  |          | 5,426   |  |                   |   | 9     |  |  |  | 0.66   | %
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|Total Interest-Earning Assets                                           |  |                              | 314,181 |  |          |   | 3,831 |                   |  |  | 4.88           | % |  |          | 319,101 |  |                   |   | 4,093 |  |  |  | 5.13   | %
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |  
|Non-Interest Earning Assets                                             |  |                              | 8,185   |  |          |   |       |                   |  |  |                |   |  |          | 7,900   |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|Total Assets                                                            |  | $                            | 322,366 |  |          |   |       |                   |  |  |                |   |  | $        | 327,001 |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |  
|Interest-Bearing Liabilities:                                           |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|Passbook, Checking and Money Market Accounts                            |  | $                            | 45,505  |  |          |   | 42    |                   |  |  | 0.37           | % |  | $        | 43,544  |  |                   |   | 41    |  |  |  | 0.38   | %
|Certificates of Deposit                                                 |  |                              | 135,305 |  |          |   | 668   |                   |  |  | 1.97           | % |  |          | 133,817 |  |                   |   | 795   |  |  |  | 2.38   | %
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|Total Interest-Bearing Deposits                                         |  |                              | 180,810 |  |          |   | 710   |                   |  |  | 1.57           | % |  |          | 177,361 |  |                   |   | 836   |  |  |  | 1.89   | %
|                                                                        |  |                              |         |  |          |  
|Borrowings                                                              |  |                              | 68,147  |  |          |   | 653   |                   |  |  | 3.83           | % |  |          | 66,467  |  |                   |   | 648   |  |  |  | 3.90   | %
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|Total Interest-Bearing Liabilities                                      |  |                              | 248,957 |  |          |   | 1,363 |                   |  |  | 2.19           | % |  |          | 243,828 |  |                   |   | 1,484 |  |  |  | 2.43   | %
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |  
|Non-Interest Bearing Liabilities                                        |  |                              | 12,797  |  |          |   |       |                   |  |  |                |   |  |          | 10,303  |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|Total Liabilities                                                       |  |                              | 261,754 |  |          |   |       |                   |  |  |                |   |  |          | 254,131 |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |  
|Stockholders Equity                                                    |  |                              | 60,612  |  |          |   |       |                   |  |  |                |   |  |          | 72,870  |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|Total Liabilities and Stockholders Equity                              |  | $                            | 322,366 |  |          |   |       |                   |  |  |                |   |  | $        | 327,001 |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |  
|Net Interest-Earning Assets                                             |  | $                            | 65,224  |  |          |   |       |                   |  |  |                |   |  | $        | 75,273  |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |  
|Net Interest Income; Average Interest Rate Spread                       |  |                              |         |  |          | $ | 2,468 |                   |  |  | 2.69           | % |  |          |         |  |                   | $ | 2,609 |  |  |  | 2.70   | %
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |  
|Net Interest Margin (2)                                                 |  |                              |         |  |          |   |       |                   |  |  | 3.14           | % |  |          |         |  |                   |   |       |  |  |  | 3.27   | %
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  
|                                                                        |  |                              |         |  |          |  
|Average Interest-Earning Assets to Average Interest-Bearing Liabilities |  |                              |         |  |          |   |       |                   |  |  | 126.20         | % |  |          |         |  |                   |   |       |  |  |  | 130.87 | %
|                                                                        |  |                              |         |  |          |   |       |                   |  |  |                |   |  |          |         |  |                   |   |       |  |  |  |        |  



|(1) | Includes nonaccrual loans during the respective periods. Calculated net of deferred fees/costs and allowance for loan losses.
|--- | -----------------------------------------------------------------------------------------------------------------------------

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



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##### Table of Contents

Interest Income.Net interest income was $2.5 million for the three months ended
March 31, 2011, a decrease of $141,000 compared to the three months ended March 31, 2010. Interest income for the first quarter of 2011 was $3.8 million, a decrease of $262,000 compared to the first quarter of 2010. This decrease in
interest income was primarily due to a $4.9 million decrease in our average interest-earning assets during the respective periods, and a 25 basis point decrease in the average yield of our interest-earning assets. The decrease in average yield
between the respective periods was due to a decrease in market rates of interest for comparable duration assets. Interest income on loans receivable was $2.7 million during the first quarter of 2011, an increase of $279,000 compared to the first
quarter of 2010. The increase in interest income from loans was due primarily to a $22.0 million increase in the average balance of our loans receivable, the effect of which was reduced by a 12 basis point decrease in the average yield of our loan
portfolio. The average balance of our mortgage-backed securities decreased by $39.4 million during the first quarter of 2011 compared to the first quarter of 2010, contributing to a decrease in interest income on mortgage-backed securities of
$518,000. The average balance of our investment securities was $50.4 million with an average yield of 1.56% during the quarter ended March 31, 2011, compared to $39.9 million with an average yield of 2.18% during the quarter ended
March 31, 2010. All of the Companys investment securities are US Agency issued debt securities with original maturities ranging from three to four years.

Interest Expense. Total interest expense was $1.4 million, with our interest-bearing liabilities having an average cost of 2.19% during the first quarter of 2011, compared to $1.5 million and an
average cost of 2.43% for the first quarter of 2010. The average rate paid on interest-bearing deposits was 1.57% during the quarter ended March 31, 2011, a decrease of 32 basis points from the quarter ended March 31, 2010. Interest
expense on borrowings was $653,000 at an average cost of 3.83% during the first quarter of 2011, and $648,000 at an average cost of 3.90% during the first quarter of 2010. The net interest rate spread between our interest-earning assets and our
interest-bearing liabilities was 2.69% for first quarter of 2011, compared to 2.70% for the first quarter of 2010. Our net interest margin, which expresses net interest income as a percentage of average interest-earning assets, was 3.14% for the
three month period ended March 31, 2011, a decrease of 13 basis points from the three month period ended March 31, 2010.

Provision for Loan Losses.We have identified the evaluation of the allowance for loan losses as a critical accounting policy where amounts are sensitive to material variation. This policy is
significantly affected by our judgment and uncertainties and there is a likelihood that materially different amounts would be reported under different, but reasonably plausible, conditions or assumptions. Our activity in the provision for loan
losses, which are charges or recoveries to operating results, is undertaken in order to maintain a level of total allowance for losses that management believes covers all known and inherent losses that are both probable and reasonably estimable at
each reporting date. Our evaluation process typically includes, among other things, an analysis of delinquency trends, non-performing loan trends, the level of charge-offs and recoveries, prior loss experience, total loans outstanding, the volume of
loan originations, the type, size and geographic concentration of our loans, the value of collateral securing the loan, the borrowers ability to repay and repayment performance, the number of loans requiring heightened management oversight,
local economic conditions and industry experience. Various regulatory agencies, as an integral part of their examination process, periodically review our allowance for loan losses. Such agencies may require us to make additional provisions for
estimated loan losses based upon judgments different from those of management.

The Company recorded provisions for loan
losses of $37,000 during the first quarter of 2011, compared to provisions for loan losses of $44,000 during the first quarter of 2010. During the first quarter of 2011, the Company recorded charge-offs of $2,000 against its home equity loans and
lines of credit. In addition, non-performing assets decreased by $523,000 during the 2011 period. This decrease in non-performing assets was due to a $173,000 reduction in our loans that were accounted for on a non-accrual basis, and a $350,000
reduction in other real estate owned. Our allowance for loan losses was $1.8 million at March 31, 2011, or 244.08% of our non-performing loans at such date. Stated as a percentage of total loans receivable, our allowance for loan losses was
0.96% and 0.97% at March 31, 2011 and December 31, 2010, respectively.

Non-interest Income.Non-interest
income for the first quarter of 2011 was $200,000, an increase of $108,000 from the first quarter of 2010. Customer service fees, which are primarily comprised of fees earned on transaction accounts and broker fees earned on certain loan sales, were
$125,000 during the 2011 period, an increase of $60,000 from the 2010 period. This increase was due to a $56,000 increase in the fees earned on reverse mortgage loan originations. During the first quarter of 2011, we sold $3.8 million in residential
mortgage loans resulting in gains of $56,000 compared to sales of $2.1 million in residential mortgage loans and student loans with aggregate gains of $23,000 during the first quarter of 2010. Other non-interest income was $19,000 and $4,000,
respectively for the three month periods ended March 31, 2011 and 2010.



24



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Non-interest Expense.Non-interest expense for the quarter ended March 31, 2011
was $1.7 million, a decrease of $17,000 from the quarter ended March 31, 2010. Salaries and employee benefits expense decreased by $44,000, to $1.1 million, during the first quarter of 2011 compared to the first quarter of 2010. Occupancy
expenses were $277,000 and $275,000 for the respective quarters ended March 31, 2011 and 2010. Our FDIC deposit insurance premiums increased by $11,000 during the first three months of 2011 compared to the first three months of 2010. This
increase was due to increases in our deposit assessment base and the prevailing FDIC insurance premium rate. Other non-interest expenses were $224,000 and $196,000, respectively, for the period ended March 31, 2011 and 2010. This increase was
primarily due to an increase in our pre-foreclosure legal expenses and an increase in our advertising expenditures compared to the 2010 period.

Income Tax Expense.Income tax expense was $306,000 based on pre-tax income of $885,000 during the first quarter of 2011 compared to income tax expense of $309,000 on pre-tax income of $894,000
during the first quarter of 2010.

Liquidity and Capital Resources

Our primary sources of funds are from deposits, amortization of loans, loan prepayments and the maturity of loans, mortgage-backed
securities and other investments, and other funds provided from operations. While scheduled payments from the amortization of loans and mortgage-backed securities and maturing investment securities are relatively predictable sources of funds,
deposit flows and loan prepayments can be greatly influenced by general interest rates, economic conditions and competition. We also maintain excess funds in short-term, interest-bearing assets that provide additional liquidity. At March 31,
2011, our cash and cash equivalents amounted to $11.2 million. In addition, at such date our available-for-sale investment and mortgage-backed securities amounted to an aggregate of $63.3 million.

We use our liquidity to fund existing and future loan commitments, to fund maturing certificates of deposit and demand deposit
withdrawals, to invest in other interest-earning assets, and to meet operating expenses. At March 31, 2011, we had certificates of deposit maturing within the next 12 months amounting to $86.8 million. Based upon historical experience, we
anticipate that a significant portion of the maturing certificates of deposit will be redeposited with us. At March 31, 2011, we had $67.4 million in total borrowings, including $41.4 million in FHLB advances and $26.0 million in reverse
repurchase agreements with commercial banks.

In addition to cash flow from loan and securities payments and prepayments as
well as from sales of available for sale securities, we have significant borrowing capacity available to fund liquidity needs. In recent years we have utilized borrowings as a cost efficient addition to deposits as a source of funds. As a member of
the Federal Home Loan Bank of Dallas, we pledge residential mortgage loans and mortgage-backed securities as collateral for advances. At March 31, 2011, the Company had $134.2 million in additional borrowings available through the Federal Home
Loan Bank.

The following table summarizes our contractual cash obligations at March 31, 2011.



|                                   |  |                        |         |  |           |   |        |                           |  |   |                            |  |  |                  |        |  |  |   |       | 
|---------------------------------- |  | ---------------------- | ------- |  | --------- | - | ------ | ------------------------- |  | - | -------------------------- |  |  | ---------------- | ------ |  |  | - | ----- | 
|                                   |  | Payments Due by Period |        
|                                   |  | Total                  |         |  | To 1 Year |   |        | More Than1 Yearto 3 Years |  |   | More Than3 Yearsto 5 Years |  |  | More Than5 Years |       
|                                   |  | (Dollars In Thousands) |        
|                                   |  |                        |         |  |          
|Certificates of Deposit            |  | $                      | 136,115 |  |           | $ | 86,839 |                           |  | $ | 25,720                     |  |  | $                | 23,556 |  |  | $ |      | 
|FHLB Advances and Other Borrowings |  |                        | 67,459  |  |           |   | 11,852 |                           |  |   | 39,364                     |  |  |                  | 8,951  |  |  |   | 7,292 | 
|                                   |  |                        |         |  |           |   |        |                           |  |   |                            |  |  |                  |        |  |  |   |       | 
|Total Long-Term Debt               |  |                        | 203,574 |  |           |   | 98,691 |                           |  |   | 65,084                     |  |  |                  | 32,507 |  |  |   | 7,292 | 
|                                   |  |                        |         |  |          
|Operating Lease Obligations        |  | $                      | 170     |  |           | $ | 34     |                           |  | $ | 68                         |  |  | $                | 68     |  |  | $ |      | 
|                                   |  |                        |         |  |           |   |        |                           |  |   |                            |  |  |                  |        |  |  |   |       | 
|                                   |  |                        |         |  |          
|Total Contractual Obligations      |  | $                      | 203,744 |  |           | $ | 98,725 |                           |  | $ | 65,152                     |  |  | $                | 32,575 |  |  | $ | 7,292 | 
|                                   |  |                        |         |  |           |   |        |                           |  |   |                            |  |  |                  |        |  |  |   |       | 

We anticipate that we will continue to have sufficient funds and alternative funding sources to meet our
current commitments.

Impact of Inflation and Changing Prices

The financial statements, accompanying notes, and related financial data of the Company presented herein have been prepared in accordance with generally accepted accounting principles, which require the
measurement of financial position and operating results in terms of historical dollars without considering the changes in purchasing power of money over time due to inflation. The impact of inflation is reflected in the increased cost of operations.
Most of our assets and liabilities are monetary in nature; therefore, the impact of interest rates has a greater impact on our performance than the effects of general levels of inflation. Interest rates do not necessarily move in the same direction
or to the same extent as the prices of goods and services.



25



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##### Table of Contents

Item 3  Quantitative and Qualitative Disclosures About Market Risk.

For a discussion of the Companys asset and liability management policies as well as the methods used to manage its
exposure to the risk of loss from adverse changes in market prices and rates, see Managements Discussion and Analysis of Financial Condition and Results of Operations  How We Manage Market Risk at Part II, Item 7 in the
Companys Annual Report on Form 10-K for the year ended December 31, 2010.

Item 4T  Controls
and Procedures.

Our management evaluated, with the participation of our President and Chief Executive Officer and our
Senior Vice President and Chief Financial Officer of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based on such
evaluation, our President and Chief Executive Officer and our Senior Vice President and Chief Financial Officer concluded that our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the
reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SECs rules and regulations and are operating in an effective manner.

No change in our internal control over financial reporting (as defined in Rules 13a-15 or 15d-15 under the Securities Exchange Act of
1934) occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.



26



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##### Table of Contents

PART II - OTHER INFORMATION

Item 1 - Legal Proceedings.

There are no
matters required to be reported under this item.

Item 1A - Risk Factors.

See Risk Factors at pages 31-34 in the Companys Annual Report on Form 10-K for the year ended December 31, 2010
(SEC File No. 1-33573), which is incorporated herein by reference thereto.

Item 2 - Unregistered Sales
of Equity Securities and Use of Proceeds.

(a) Not applicable.

(b) Not applicable.

(c) The Companys purchases of its common stock made during the quarter consisted of purchases of shares pursuant to repurchase plans approved by the Companys Board of Directors, as set forth
in the following table.



|                               |  |                               |        |  |                            |   |       |                                                                           |  |  |                                                                                 |  |  |  |         | 
|------------------------------ |  | ----------------------------- | ------ |  | -------------------------- | - | ----- | ------------------------------------------------------------------------- |  |  | ------------------------------------------------------------------------------- |  |  |  | ------- | 
|Period                         |  | TotalNumber ofSharesPurchased |        |  | AveragePrice Paidper Share |   |       | Total Numberof SharesPurchased asPart of PubliclyAnnouncedPlan or Program |  |  | MaximumNumber ofShares that MayYet be PurchasedUnder the 
Planor Program (1)(2) | 
|                               |  |                               |        | 
|January 1 - January 31, 2011   |  |                               | 3,000  |  |                            | $ | 14.70 |                                                                           |  |  | 3,000                                                                           |  |  |  | 21,971  | 
|February 1 - February 28, 2011 |  |                               | 14,554 |  |                            |   | 14.74 |                                                                           |  |  | 14,554                                                                          |  |  |  | 188,214 | 
|March 1 - March 31, 2011       |  |                               | 49     |  |                            |   | 14.98 |                                                                           |  |  | 49                                                                              |  |  |  | 188,165 | 
|                               |  |                               |        |  |                            |   |       |                                                                           |  |  |                                                                                 |  |  |  |         | 
|Total                          |  |                               | 17,603 |  |                            | $ | 14.73 |                                                                           |  |  | 17,603                                                                          |  |  |  |         | 
|                               |  |                               |        |  |                            |   |       |                                                                           |  |  |                                                                                 |  |  |  |         | 



|(1) | On November 1, 2010, the Company announced an eleventh stock repurchase program to acquire up to 5%, or 189,891 shares of its outstanding common stock over a
six-month period. On May 2, 2011, the Company extended the duration of this program to November 2, 2011. There were 4,096 shares remaining to be repurchased as of May 2, 2011.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | On February 23, 2011, the Company announced a twelfth stock repurchase program to acquire up to 5%, or 180,797 shares of its outstanding common stock over a
six-month period. On May 2, 2011, the Company extended the duration of this program to November 
2, 2011.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Item 3 - Defaults Upon Senior Securities.

There are no matters required to be reported under this item.

Item 4 - (Removed and Reserved)

Item 5 - Other Information.

There are no matters required to be reported under this item.

Item 6 - Exhibits.

(a) List of exhibits: (filed herewith unless otherwise noted)



|     |  |                                                                                   
|---- |  | ----------------------------------------------------------------------------------
|31.1 |  | Rule 13a-14(a)/15d-14(a) /Section 302 Certification of the Chief Executive Officer
|     | 
|31.2 |  | Rule 13a-14(a)/15d-14(a)/Section 302 Certification of the Chief Financial Officer 
|     | 
|32.1 |  | Section 1350 Certification                                                        



27



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##### Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.



|                   |  |     |  |                                                  
|------------------ |  | --- |  | -------------------------------------------------
|                   |  |     |  | LOUISIANA BANCORP, INC.                          
|                   |  |    
|Date: May 11, 2011 |  | By: |  | /s/ Lawrence J. LeBon, III                       
|                   |  |     |  | Lawrence J. LeBon, III                           
|                   |  |     |  | President and Chief Executive Officer            
|                   |  |    
|Date: May 11, 2011 |  | By: |  | /s/ John LeBlanc                                 
|                   |  |     |  | John LeBlanc                                     
|                   |  |     |  | Senior Vice President and Chief Financial Officer



28