----

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|  Large      accelerated filer |  [        ] |   |  Accelerated      filer         | [   ] |   |
|------------------------------------|----------------------------|--------|--------------------------------------|-----------------|--------|
|  Non-accelerated filer        |  [        ] |   |  Smaller      reporting company | [X ]            |   |

  No  

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| Page                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| PART      I               -        FINANCIAL      INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Item      1:                                 Financial Statements: Consolidated      Balance Sheets as of March 31, 2008 and December31,      2007      (Unaudited).........................................................................................................    1 Consolidated      Statements of Income for the Three Months EndedMarch      31, 2008 and 2007      (Unaudited)....................................................................................    2 Consolidated      Statement of Stockholders’ Equity forthe      Three Months Ended March 31, 2008      (Unaudited).....................................................................    3 Consolidated      Statements of Cash Flows for the Three MonthsEnded      March 31, 2008 and 2007      (Unaudited)............................................................................    4 Notes      to the Unaudited Consolidated Financial      Statements)............................................................    5 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Item      2:                           Management’s      Discussion and Analysis of Financial Condition and                                     Results      of      Operations............................................................................................................   14                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|  Item      3:                           Quantitative      and Qualitative Disclosures About Market      Risk.................................................................        19                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Item      4T:                         Controls      and      Procedures....................................................................................................................        19                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| PART      II              -        OTHER      INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Item      1:                           Legal      Proceedings.............................................................................................................................        21 Item      1A:                        Risk      Factors......................................................................................................................................        21                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Item      2:                           Unregistered      Sales of Equity Securities and Use of      Proceeds...............................................................        21                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Item      3:                           Defaults      upon Senior      Securities .........................................................................................................        21                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Item      4:                           Submission      of Matters to a Vote of Security      Holders...........................................................................        21                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Item      5:                           Other      information .............................................................................................................................   21                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Item      6:                           Exhibits.............................................................................................................................................       21                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| SIGNATURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

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|                                                                                                                                    |                                                                                                                             |                                                                            |                                                                                                                                  |                                                                                  |   | At      March 31, | At      December 31, |
|-----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|--------|-------------------|----------------------|
|                                                                                                                                    |                                                                                                                             |                                                                            |                                                                                                                                  |                                                                                  |   | 2008              |                 | 2007 |
| ASSETS                                                                                                                                  | (In      thousands, except share data)                                                                                           |
|                                                                                                                                    |                                                                                                                             |                                                                            |                                                                                                                                  |                                                                                  |   |              |                 |   |
| Due      from banks, non-interest-bearing                                                                                               | $      1,016                                                                                                                     |                                                                            | $  1,220                                                                                                                    |
| Due      from banks, interest-bearing                                                                                                   |    4,195                                                                                                          |                                                                            |    3,767                                                                                                               |
|     Cash      and cash equivalents                                                                                  |    5,211                                                                                                          |                                                                            |    4,987                                                                                                               |
| Investment      in interest-earning time deposits                                                                                       |    1,716                                                                                                          |                                                                            |    1,835                                                                                                               |
| Investment      securities available for sale (cost-2008 $2,507;      2007      $2,001)                   |    2,501                                                                                                          |                                                                            |    2,001                                                                                                               |
| Investment      securities held to maturity (fair value-  2008           $2,278; 2007 $2,265 )       |    2,252                                                                                                          |                                                                            |    2,253                                                                                                               |
| Investment      in Federal Home Loan Bank stock, at cost                                                                                |            241                                                                                          |                                                                            |      237                                                                                                     |
| Loans      receivable, net of allowance for loan losses                                                                                 |                                                                                                                             |                                                                            |                                                                                                                                  |
| 2008      $704; 2007 $667                                                                                                               |  63,433                                                                                                                     |                                                                            |  61,656                                                                                                                          |
| Premises      and equipment, net                                                                                                        |        88                                                                                     |                                                                            |        59                                                                                          |
| Accrued      interest receivable and other assets                                                                                       |      659                                                                                                |                                                                            |      517                                                                                                     |
|                                                                                                                                    |                                                                                                                             |                                                                            |                                                                                                                                  |
| Total Assets                                                                                                                            | $76,101                                                                                                                          |                                                                            | $73,545                                                                                                                               |
|                                                                                                                                    |                                                                                                                             |                                                                            |                                                                                                                                  |                                                                                  |   |              |                 |   |
|  LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                         |
|                                                                                                                                    |                                                                                                                             |                                                                            |                                                                                                                                  |                                                                                  |   |              |                 |   |
| LIABILITIES                                                                                                                             |                                                                                                                             |                                                                            |                                                                                                                                  |
| Deposits,      interest-bearing                                                                                                         |                                                                                                                             |                  $57,778 |                                                                                                                                  |                   $55,261 |
| Advances      from borrowers for taxes and insurance                                                                                    |                        512                  |                                                                            |                         600                 |
| Accrued      interest payable and other liabilities                                                                                     |                        143                  |                                                                            |                         127                      |
|  Total Liabilities                                                                                                                 |                     58,433                                 |                                                                            |                     55,988                                      |
|                                                                                                                                    |                                                                                                                             |                                                                            |                                                                                                                                  |
| STOCKHOLDERS'      EQUITY                                                                                                               |                                                                                                                             |                                                                            |                                                                                                                                  |
| Preferred      stock– $0.01 par value, 1,000,000 shares           authorized; none issued or outstanding |                            - |                                                                            |                            - |
| Common      stock – $0.01 par value; 9,000,000 shares                                                                             |                                                                                                                             |                                                                            |                                                                                                                                  |
| authorized;      1,388,625 issued and outstanding at March 31,      2008 and December 31, 2007                                     |                    14             |                                                                            |                          14            |
| Additional      paid-in capital                                                                                                         |                  13,337                                                   |                                                                            |                   13,337                                                  |
| Unallocated      common stock held by Employee Stock            Ownership Plan (ESOP)                     |                   (1,004)                                            |                                                                            |                    (1,021)                                           |
| Retained      earnings                                                                                                                  |                    5,324                                        |                                                                            |                     5,227                                       |
| Accumulated      other comprehensive loss                                                                                               |                        (3)                  |                                                                            |                           -       |
|                                                                                                                                    |                                                                                                                             |                                                                            |                                                                                                                                  |
|             Total      Stockholders' Equity                                 |                       17,668                                                   |                                                                            |                   17,557                                                  |
|                                                                                                                                    |                                                                                                                             |                                                                            |                                                                                                                                  |
|             Total      Liabilities and Stockholders’ Equity           |                $76,101                                                              |                                                                            |            $73,545                                                             |

----

----

|   | For      the Three Months Ended |
|--------|---------------------------------|
|   | March      31,                  |
|   | 2008                            |   | 2007 |

| Interest      Income |                                                          (In thousands,      except share data) |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Loans      receivable, including fees                 | $1,049 |   | $942 |
|-------------------------------------------------------|--------|--------|------|
| Short-term      investments and investment securities | 128    |   | 76   |
| Dividends                                             | 3      |   | 3    |

| Total      Interest Income | 1,180 |   | 1,021 |
|----------------------------|-------|--------|-------|

|   | Interest      Expense |
|--------|-----------------------|

| Deposits |                612 |   |           584 |
|----------|-----------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|

| Total      Interest Expense | 612 |   | 584 |
|-----------------------------|-----|--------|-----|

| Net      Interest Income | 568 |   | 437 |
|--------------------------|-----|--------|-----|

| Provision      (Credit) for Loan Losses | 37 |   | (10) |
|-----------------------------------------|----|--------|------|

| Net      Interest Income after Provision (Credit) for Loan Losses | 531 |   | 447 |
|-------------------------------------------------------------------|-----|--------|-----|

| Non-Interest      Income - Fees and service charges | 11 |   | 8 |
|-----------------------------------------------------|----|--------|---|

| Salaries      and employee benefits     | 182 |   | 157 |
|-----------------------------------------|-----|--------|-----|
| Directors’      fees and expenses | 56  |   | 38  |
| Occupancy      and equipment            | 23  |   | 19  |
| Professional      fees                  | 69  |   | 25  |
| Regulatory                              | 17  |   | 5   |
| Advertising                             | 8   |   | 11  |
| Other                                   | 27  |   | 18  |

| Total      Other Expenses | 382 |   | 273 |
|---------------------------|-----|--------|-----|

| Income      before Income Taxes | 160 |   | 182 |
|---------------------------------|-----|--------|-----|

| Income      Taxes | 63 |   | 71 |
|-------------------|----|--------|----|

| Net      Income | $97 |   | $111 |
|-----------------|-----|--------|------|

| Basic      earnings per share | $0.08 |   | NA |
|-------------------------------|-------|--------|----|

----

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|  Three Months Ended      March 31, 2008                  |  AdditionalPaid-in       Capital                                                                                                         | Unallocated      CommonStock      Held by             ESOP         |   RetainedEarnings                                                                                           |  Accumulated      Other      Comprehensive___Loss)          | Total Stockholders’               Equity          |                                                                                                     |
|----------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
|   (In      thousands, except share data)                                                                   |                   Common Stock                 |                                                                                                                                |
| Number      of            Shares                              |                                                                                                                                                    |    Amount                                                                                                       | Comprehensive                 Income        |
|                                                                                                                 |                                                                                                                                                    |                                                                                                                                |                                                                                                                   |                                                                                                          |                                                                                                                                    |                                                                                                     |   |   |   |
| BALANCE      – DECEMBER 31, 2007                                                                               |            1,388,625                                                                                                           |                                                                                                                                |            $14                                                  |        $13,337                                                             |           $(1,021)                                                                    |                 $5,227                                 |                        - |           $17,557 |   |
|                                                                                                                 |                                                                                                                                                    |                                                                                                                                |                                                                                                                   |                                                                                                          |                                                                                                                                    |                                                                                                     |   |   |   |
| Common      stock allocated by ESOP                                                                                  |                         -                                          |                                                                                                                                |            -                                                    |              -                               |                 17                                      |                                                                                                     |   |                  17 |   |
|                                                                                                                 |                                                                                                                                                    |                                                                                                                                |                                                                                                                   |                                                                                                          |                                                                                                                                    |                                                                                                     |   |   |   |
| Net      income                                                                                                      |                         -                                     |                                                                                                                                |            -                                                    |              -                               |                                                                                                                                    |                       97 |                       - |                   97 |                   $97 |
|                                                                                                                 |                                                                                                                                                    |                                                                                                                                |                                                                                                                   |                                                                                                          |                                                                                                                                    |                                                                                                     |   |   |   |
| Unrealized      holding loss on securities available for sale, net of tax                                            |                         -                                          |                                                                                                                                |          -                                                                |            -                                           |        -                                                                                             |                    -                    |                     $      (3) |                     (3) |                             (3) |
|                                                                                                                 |                                                                                                                                                    |                                                                                                                                |                                                                                                                   |                                                                                                          |                                                                                                                                    |                                                                                                     |   |   |   |
| Comprehensive      income                                                                                            |                                                                                                                                                    |                                                                                                                                |                                                                                                                   |                                                                                                          |                                                                                                                                    |                                                                                                     |   |   | $94 |
|                                                                                                                 |                                                                                                                                                    |                                                                                                                                |                                                                                                                   |                                                                                                          |                                                                                                                                    |                                                                                                     |   |   |   |
| BALANCE      – MARCH 31, 2008                                                                                  |            1,388,625                                                                                                           |                                                                                                                                |                 $14                                                  |             $13,337                                                             |                $(1,004)                                                                    |  $5,324                                                                                             |                     $      (3) |           $17,668 |   |

----

----

|   | For      the Three Months Ended |
|--------|---------------------------------|
|   | March      31,                  |
|   | 2008                            |   | 2007 |

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

| Net      income                                                                                         | $97    |   | $111   |
|---------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Adjustments      to reconcile net income to net cash provided by        operating activities: |   |   |   |
| Provision (credit) for loan      losses                                                                 | 37     |   | (10)   |
| Depreciation expense                                                                                    | 6      |   | 3      |
| Amortization      of securities premiums                                                                | 1      |   | -      |
| Amortization      of deferred loan fees and costs                                                       | (2)    |   | (6)    |
| Compensation      expense for ESOP                                                                      | 17     |   | -      |
| Increase in accrued interest receivable and other      assets                                           | (58)   |   | (57)   |
| Decrease in accrued interest payable and other      liabilities                                         | 16     |   | 79     |

| Net Cash Provided by Operating      Activities | 114 |   | 120 |
|------------------------------------------------|-----|--------|-----|

| Cash      Flows from Investing Activities |   |
|-------------------------------------------|--------|

| Net      (increase) decrease in investment in interest-earning time      deposits | 119     |   | (270) |
|-----------------------------------------------------------------------------------|---------|--------|-------|
| Purchase      of investment securities available for sale                         | (506)   |   | -     |
| Purchase      of property and equipment                                           | (35)    |   | (1)   |
| Net      decrease (increase) in Federal Home Loan Bank stock                      | (4)     |   | 11    |
| Net      increase in loans receivable                                             | (1,893) |   | 800   |

| Net Cash (Used in) Provided by      Investing Activities | (2,319) |   | 540 |
|----------------------------------------------------------|---------|--------|-----|

| Cash      Flows from Financing Activities |   |
|-------------------------------------------|--------|

| Net      (decrease) increase in deposits                         | 2,517 |   | (439) |
|------------------------------------------------------------------|-------|--------|-------|
| Increase      in advances from borrowers for taxes and insurance | (88)  |   | (74)  |

| Net Cash Provided by (Used      in) Financing Activities | 2,429 |   | (513) |
|----------------------------------------------------------|-------|--------|-------|

| Net Increase in Cash and Cash      Equivalents | 224 |   | 147 |
|------------------------------------------------|-----|--------|-----|

| Cash and Cash Equivalents –      Beginning of Period | 4,987 |   | 4,197 |
|------------------------------------------------------------|-------|--------|-------|

| Cash      and Cash Equivalents – End of Period | $5,211 |   | $4,344 |
|------------------------------------------------------|--------|--------|--------|

| Cash      payments for interest                  | $623 |   | $596 |
|--------------------------------------------------|------|--------|------|
| Cash      payments for taxes                     | $60  |   | $16  |
| Transfer      of loan to other real estate owned | $81  |   | -    |

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|                                                                   |   |                |   |   |                        |   |    |                         |   |   |                      |   |
|------------------------------------------------------------------------|--------|---------------------|--------|--------|-----------------------------|--------|---------|------------------------------|--------|--------|---------------------------|--------|
|                                                                   |   | March      31, 2008 |   |
|                                                                   |   | Amortized      Cost |   |   | Gross      Unrealized Gains |   |    | Gross      Unrealized Losses |   |   | Estimated      Fair Value |   |
| Available      for Sale:                                               |   |                |   |   |                        |   |    |                         |   |   |                      |   |
|     Mortgage      securities portfolio mutual fund |   | $                   | 507    |   |                        | $      | -       |                         |   | $      | (6                        | )      |   | $ | 501 |   |
|     Auction      market securities                 |   |                | 2,000  |   |                        |   |  - |                         |   |   |  -                   |   |   |   | 2,000 |   |
|                                                                   |   | $                   | 2,507  |   |                        | $      | -       |                         |   | $      | (6                        | )      |   | $ | 2,501 |   |
|                                                                   |   |                |   |   |                        |   |    |                         |   |   |                      |   |   |   |   |   |
| Held      to Maturity:                                                 |   |                |   |   |                        |   |    |                         |   |   |                      |   |   |   |   |   |
|     U.S.      Government agency securities         |   | $                   | 2,252  |   |                        | $      | 26      |                         |   | $      | -                         |   |   | $ | 2,278 |   |

|                                                                   |   | December      31, 2007    |   |
|------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                   |   |  Amortized      Cost |   |   | Gross      Unrealized Gains |   |   | Gross      Unrealized Losses |   |   | Estimated      Fair Value |   |
| Available      for Sale:                                               |   |                      |   |   |   |   |   |   |   |   |   |   |
|     Mortgage      securities portfolio mutual fund |   | $                         | 501    |   |   | $ | - |   |   | $ | - |   |   | $ | 501 |   |
|     Auction      market securities                 |   |                      | 1,500  |   |   |   |  - |   |   |   |  - |   |   |   | 1,500 |   |
|                                                                   |   | $                         | 2,001  |   |   | $ | - |   |   | $ | - |   |   | $ | 2,001 |   |
|                                                                   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held      to Maturity:                                                 |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     U.S.      Government agency securities         |   | $                         | 2,253  |   |   | $ | 12 |   |   | $ | - |   |   | $ | 2,265 |   |

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

----

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|                                                                                                  |   | March      31,2008 |   |   | December      31, 2007 |   |
|-------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------------|--------|
| Real      estate loans:                                                                               |   |               |   |   |                   |   |
|   One-to      four-family residential:                                                      |   |               |   |   |                   |   |
|        Owner      occupied                                         |   | $                  | 16,810 |   |                   | $      | 17,248 |   |
|     Non-owner      occupied                                                            |   |               | 17,444 |   |                   |   | 15,757 |   |
|           Total      one-to-four family residential |   |               | 34,254 |   |                   |   | 33,005 |   |
|                                                                                                  |   |               |   |   |                   |   |   |   |
|    Multi-family      residential                                                       |   |               | 3,781  |   |                   |   | 4,385 |   |
|    Commercial      real estate                                                         |   |               | 19,062 |   |                   |   | 17,481 |   |
|    Construction                                                                        |   |               | 1,531  |   |                   |   | 1,677 |   |
|    Commercial      lines of  credit                                          |   |               | 788    |   |                   |   | 1,206 |   |
|    Home      equity loans                                                              |   |               | 4,572  |   |                   |   | 4,431 |   |
|           Total      real estate loans              |   |               | 63,988 |   |                   |   | 62,185 |   |
|                                                                                                  |   |               |   |   |                   |   |   |   |
| Loans      secured by deposits                                                                        |   |               | 56     |   |                   |   | 36 |   |
|    Total loans                                                                              |   |               | 64,044 |   |                   |   | 62,221 |   |
|                                                                                                  |   |               |   |   |                   |   |   |   |
| Deferred loan fees andcosts                                                                           |   |               | 93     |   |                   |   | 102 |   |
|        Allowance      for loan losses                              |   |               | (704   | )      |                   |   | (667 | ) |
| Net      loans                                                                                        |   | $                  | 63,433 |   |                   | $      | 61,656 |   |

|                                                                                           |   | March      31, 2008 |   |   | March      31,2007 |   |
|------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|--------------------|--------|
| Balance,      beginning of the year                                                            |   | $                   | 667    |   |               | $      | 575 |   |
|      Provision      (credits) for loan losses                         |   |                | 37     |   |               |   | (10 | ) |
|      Charge-offs                                                      |   |                | -      |   |               |   | - |   |
|   Recoveries                                                                              |   |                | -      |   |               |   | - |   |
|           (Charge-offs)/recoveries,      net |   |                | -      |   |               |   | - |   |
|                                                                                           |   |                |   |   |               |   |   |   |
| Balance,      end of period                                                                    |   | $                   | 704    |   |               | $      | 565 |   |

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|                                              |   | March      31, 2008 |   |   | December      31, 2007 |   |
|---------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
| Passbooks                                         |   | $                   | 3,547  |   |                   | $      | 3,659 |   |
| Statement      e-savings accounts                 |   |                | 5,809  |   |                   |   | 5,630 |   |
| Certificates      of deposit                      |   |                | 48,422 |   |                   |   | 45,972 |   |
|      Total      deposits |   | $                   | 57,778 |   |                   | $      | 55,261 |   |
|                                              |   |                |   |   |                   |   |   |   |
|                                              |   |                |   |   |                   |   |   |   |

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|                                          |   |                      |   |   | Fair      Value Measurements at March 31, 2008 Using                      |   |
|-----------------------------------------------|--------|---------------------------|--------|--------|---------------------------------------------------------------------------|--------|
|                                          |   |                      |   |   |                                                                      |   |   |   |   |   |   |   |
|                                          |   |   CarryingValue |   |   | Quoted Prices inActive      Marketsfor      IdenticalAssets(Level      1) |   |   | Significant      Other ObservableInputs(Level      2) |   |   | Significant      Other ObservableInputs(Level      3) |   |
|                                          |   |                      |   |   | (In      Thousands)                                                       |   |
|                                          |   |                      |   |   |                                                                      |   |   |   |   |   |   |   |
| Investment      securities available for sale |   | $                         | 2,501  |   |                                                                      | $      | 501 |   |   | $ | 2,000 |   |   | $ | - |   |

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|                         |   |                |   |   | Fair      Value Measurements at March 31, 2008 Using                                                                                                                                         |   |
|------------------------------|--------|---------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                         |   |                |   |   |                                                                                                                                                                                         |   |   |   |   |   |   |   |
|                         |   |  CarryingValue |   |   | Quoted Prices inActive      Marketsfor      IdenticalAssets(Level      1)                                                                                                                    |   |   | Significant      Other ObservableInputs(Level      2) |   |   | Significant      Other ObservableInputs(Level      3) |   |
|                         |   |                |   |   |                                   (In Thousands) |   |
|                         |   |                |   |   |                                                                                                                                                                                         |   |   |   |   |   |   |   |
| Impaired    loans            |   | $                   | 427    |   |                                                                                                                                                                                         | $      | - |   |   | $ | - |   |   | $ | 427 |   |
| Other real estate      owned |   |                | 81     |   |                                                                                                                                                                                         |   | - |   |   |   | - |   |   |   | 81 |   |
|                         |   |                |   |   |                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Total                        |   | $                   | 508    |   |                                                                                                                                                                                         | $      | - |   |   | $ | - |   |   | $ | 508 |   |

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| ITEM 2. | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|---------|-------------------------------------------------------------------------------------------------------|

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|                                                                                                                              |   | Three      Months Ended March 31, |        |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-------------|
|                                                                                                                              |   | 2008                              |        |   | 2007 |   |
|                                                                                                                              |   | AverageBalance                    |        |   | Interest |   |   | AverageYield/Rate |   |   | AverageBalance |   |   | Interest |   |   | AverageYield/Rate |   |
| Interest-earning      assets:                                                                                                     |   | (Dollars      in thousands)       |        |
|   Short-term      investments and          investment securities held to         maturity |   | $                                 | 11,276      |   |   | $ | 128 |   |   |   | 4.54 | % |   | $ | 5,782 |   |   | $ | 76 |   |   |   | 5.26 | % |
|   Loans      receivable, net (1)                                                                                        |   |                              | 61,707      |   |   |   | 1,049 |   |   |   | 6.80 |   |   |   | 53,976 |   |   |   | 942 |   |   |   | 6.98 |   |
|   Other      interest-earning assets                                                                                    |   |                              | 241         |   |   |   | 3 |   |   |   | 4.98 |   |   |   | 252 |   |   |   | 3 |   |   |   | 4.76 |   |
|      Total      interest-earning assets                                                                  |   |                              | 73,224      |   |   |   | 1,180 |   |   |   | 6.45 | % |   |   | 60,010 |   |   |   | 1,021 |   |   |   | 6.81 | % |
| Non-interest-earning      assets                                                                                                  |   |                              |  1,526 |   |   |   |   |   |   |   |   |   |   |             1,043 |   |   |   |   |   |   |   |   |   |
|      Total      assets                                                                                   |   | $                                 | 74,750      |   |   |   |   |   |   |   |   |   |   | $ | 61,053 |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                                                                |   |                              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Passbook      accounts                                                                                          |   | $                                 | 3,569       |   |   |   | 12 |   |   |   | 1.34 | % |   | $ | 4,661 |   |   |   | 16 |   |   |   | 1.37 | % |
|    Statement      savings accounts                                                                                 |   |                              | 5,483       |   |   |   | 38 |   |   |   | 2.77 |   |   |   | 6,677 |   |   |   | 46 |   |   |   | 2.76 |   |
|    Certificate      of deposit accounts                                                                            |   |                              | 47,335      |   |   |   | 562 |   |   |   | 4.75 |   |   |   | 44,160 |   |   |   | 522 |   |   |   | 4.73 |   |
|       Total      deposits                                                                           |   |                              | 56,387      |   |   |   | 612 |   |   |   | 4.34 |   |   |   | 55,498 |   |   |   | 584 |   |   |   | 4.21 |   |
| FHLB      advances                                                                                                                |   | -                                 |        |   | - |   |   |   | - |   |   |   |  - |   |   |  - |   |   |   | - |   |
|      Total      interest-bearing liabilities                                                             |   |                              | 56,387      |   |   | 612 |   |   |   | 4.34 | % |   |   | 55,498 |   |   |   | 584 |   |   |   | 4.21 | % |
| Non-interest-bearing      liabilities                                                                                             |   | 709                               |        |   |   |   |   |   |   |   |   |   | 752 |   |   |   |   |   |   |   |   |   |
|      Total      liabilities                                                                              |   |                              | 57,096      |   |   |   |   |   |   |   |   |   |   |   | 56,250 |   |   |   |   |   |   |   |   |   |
| Retained      earnings                                                                                                            |   |                              | 17,654      |   |   |   |   |   |   |   |   |   |   |   | 4,803 |   |   |   |   |   |   |   |   |   |
|      Total      liabilities and retained            earnings               |   | $                                 | 74,750      |   |   |   |   |   |   |   |   |   |   | $ | 61,053 |   |   |   |   |   |   |   |   |   |
| Net      interest-earning assets                                                                                                  |   | $                                 | 16,837      |   |   |   |   |   |   |   |   |   |   | $ |  4,512 |   |   |   |   |   |   |   |   |   |
| Net      interest income; average interest        rate spread                                                           |   |                              |        |   |   | $ | 568 |   |   |   | 2.11 | % |   |   |   |   |   | $ |  437 |   |   |   | 2.60 | % |
| Net      interest margin (2)                                                                                                      |   |                              |        |   |   |   |   |   |   |   | 3.10 | % |   |   |   |   |   |   |   |   |   |   | 2.91 | % |
| Average      interest-earning assets to average interest-bearing      liabilities                                            |   |                              |        |   |   |   |   |   |   |   | 129.86 | % |   |   |   |   |   |   |   |   |   |   | 108.13 | % |

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

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

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|   | No.  |   | Description                                                                                                |
|--------|------|--------|------------------------------------------------------------------------------------------------------------|
|   | 3.1  |   | Articles      of Incorporation of Quaint Oak Bancorp, Inc. (1)                                             |
|   | 3.2  |   | Bylaws      of Quaint Oak Bancorp, Inc. (1)                                                                |
|   | 4.1  |   | Form      of Stock Certificate of Quaint Oak Bancorp, Inc. (1)                                             |
|   | 10.1 |   | Employment      Agreement by and between Robert T. Strong and Quaint Oak Savings Bank, as      amended (1) |
|   | 31.1 |   | Rule      13a-14(a)/15d-14(a) Certification of Chief Executive    Officer                                  |
|   | 31.2 |   | Rule      13a-14(a)/15d-14(a) Certification of Chief Financial    Officer                                  |
|   | 32.0 |   | Certification      Pursuant to 18 U.S.C Section 1350                                                       |

|   | __________________________ |
|--------|----------------------------|
|   | (1)                        | Incorporated      by reference from the Company’s Registration Statement on Form SB-2, filed      on March 21, 2007, as amended, and declared effective on May 14, 2007      (File No. 333-141474). |

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|   |                   |   |                                       |
|--------|------------------------|--------|--------------------------------------------|
| Date:  | May 15,      2008 |   | By:                                        |  /s/ Robert T. Strong |
|   |                   |   | Robert T.      Strong                      |
|   |                   |   | President and Chief      Executive Officer |
|   |                   |   |                                       |
|   |                   |   |                                       |
| Date:  | May 15,    2008        |   | By:                                        |  /s/ Diane J. Colyer |
|   |                   |   | Diane J.      Colyer                       |
|   |                   |   | Operations      Officer                    |
|   |                   |   | (principal financial      officer)         |