----

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

| For the quarterly period ended: | June 30, 2011 |   |
|---------------------------------|---------------|--------|
|  OR                        |

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

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

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

|                                                          |
|---------------------------------------------------------------|
| QUAINT OAK BANCORP, INC.                                      |
| (Exact name of registrant as specified in its charter)        |
|                                                          |
| Pennsylvania                                                  |   | 35-2293957 |
| (State or other jurisdiction ofincorporation or organization) |   | (IRS Employer Identification No.) |
|                                                          |
| 607 Lakeside Drive, Southampton, Pennsylvania 18966                                                                                                                                                                                                                                                                                                                                                                                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (Address of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (215) 364-4059                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (Registrant’s telephone number)                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (Former name, former address and former fiscal year, if changed since last report)                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  [X ]    No  [   ]                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes [   ]    No   [   ] |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):                                                                                                                                            |
| Large accelerated filer    [  ]                                                                                                                                                                                                                                                                                                                                                                                                               | Accelerated filer        [  ] |
| Non-accelerated filer      [  ]                                                                                                                                                                                                                                                                                                                                                                                                     | Smaller reporting company     [X] |
| (Do not check if a smaller reporting company)                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     [  ] Yes   [X] No                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:  As of August 12, 2011, 992,126 shares of common stock were issued and outstanding.                                                                                                                                                                                                                             |

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|       |   |                                                                                        | Page                                                                                                              |
|------------|--------|---------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
| PART I     | -      | FINANCIAL INFORMATION                                                                       |                                                                                                              |
|       |   |                                                                                        |                                                                                                              |
| Item 1:    |   | Financial Statements:                                                                       |                                                                                                              |
|       |   |                                                                                        |                                                                                                              |
|       |   |                                                                                        | Consolidated Balance Sheets as of June 30, 2011 and December 31, 2010 (Unaudited)                                 |   1 |
|       |   |                                                                                        |                                                                                                              |   |
|       |   |                                                                                        | Consolidated Statements of Income for the Three and Six Months Ended June 30, 2011 and 2010 (Unaudited) |    2 |
|       |   |                                                                                        |                                                                                                              |   |
|       |   |                                                                                        | Consolidated Statement of Stockholders’ Equity for the Six Months Ended June 30, 2011 (Unaudited)           |    3 |
|       |   |                                                                                        |                                                                                                              |   |
|       |   |                                                                                        | Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2011 and 2010 (Unaudited)                 |    4 |
|       |   |                                                                                        |                                                                                                              |   |
|       |   |                                                                                        | Notes to Unaudited Consolidated Financial Statements                                                              |   5 |
|       |   |                                                                                        |                                                                                                              |
| Item 2:    |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 29                                                                                                                |
|       |   |                                                                                        |                                                                                                              |
| Item 3:    |   | Quantitative and Qualitative Disclosures About Market Risk                                  | 40                                                                                                                |
|       |   |                                                                                        |                                                                                                              |
| Item 4:    |   | Controls and Procedures                                                                     | 40                                                                                                                |
|       |   |                                                                                        |                                                                                                              |
| PART II    | -      | OTHER INFORMATION                                                                           |                                                                                                              |
|       |   |                                                                                        |                                                                                                              |
| Item 1:    |   | Legal Proceedings                                                                           | 41                                                                                                                |
|       |   |                                                                                        |                                                                                                              |
| Item 1A:   |   | Risk Factors                                                                                | 41                                                                                                                |
|       |   |                                                                                        |                                                                                                              |
| Item 2:    |   | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 41                                                                                                                |
|       |   |                                                                                        |                                                                                                              |
| Item 3:    |   | Defaults upon Senior Securities                                                             | 41                                                                                                                |
|       |   |                                                                                        |                                                                                                              |
| Item 4:    |   | (Removed and Reserved)                                                                      | 41                                                                                                                |
|       |   |                                                                                        |                                                                                                              |
| Item 5:    |   | Other Information                                                                           | 42                                                                                                                |
|       |   |                                                                                        |                                                                                                              |
| Item 6:    |   | Exhibits                                                                                    | 42                                                                                                                |
|       |   |                                                                                        |                                                                                                              |
| SIGNATURES |   |                                                                                        |                                                                                                              |

----

----

|                                                                                                                        |   |                              |           |   |   |   |           |          |              At June 30, |     At December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------------|--------|--------|--------|----------------|---------------|--------------------------------------------------------------------------------------|------------------------------------|--------|
|                                                                                                                        |   |                              |           |   |   |   |           |          | 2011                                                                                 |                               |   | 2010 |   |
| Assets                                                                                                                      |   | (In thousands, except share data) |           |
| Due from banks, non-interest-bearing                                                                                        |   | $                                 | 603            |   |   | $      | 973            |          |
| Due from banks, interest-bearing                                                                                            |   |                              | 13,329         |   |   |   | 7,677          |          |
|       Cash and cash equivalents                                                                    |   |                              | 13,932         |   |   |   | 8,650          |          |
| Investment in interest-earning time deposits                                                                                |   |                              | 5,475          |   |   |   | 6,001          |          |
| Investment securities available for sale at fair value (cost-2011                                                           |   |                              |           |   |   |   |           |          |
|       $3,368; 2010 $3,290)                                                                         |   |                              |  3,368    |   |   |   |  3,271    |          |
| Mortgage-backed securities held to maturity (fair value-2011 $5,013; 2010 $5,810)                                           |   |                              |  4,599    |   |   |   |  5,406    |          |
| Loans held for sale                                                                                                         |   |                              | 1,139          |   |   |   | -              |          |
| Loans receivable, net of allowance for loan losses                                                                          |   |                              |           |   |   |   |           |          |
|       $2011 759; 2010 $871                                                                    |   |                              |  73,465   |   |   |   |  74,710   |          |
| Accrued interest receivable                                                                                                 |   |                              | 454            |   |   |   | 423            |          |
| Investment in Federal Home Loan Bank stock, at cost                                                                         |   |                              | 683            |   |   |   | 757            |          |
| Premises and equipment, net                                                                                                 |   |                              | 1,116          |   |   |   | 1,073          |          |
| Other real estate owned, net                                                                                                |   |                              | 1,191          |   |   |   | 1,191          |          |
| Prepaid expenses and other assets                                                                                           |   |                              | 689            |   |   |   | 619            |          |
|                                                                                                                        |   |                              |           |   |   |   |           |          |
| Total Assets                                                                                                                |   | $                                 | 106,111        |   |   | $      | 102,101        |          |
|                                                                                                                        |   |                              |           |   |   |   |           |          |                                                                                 |                               |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders’ Equity                                                                                  |   |
| Liabilities                                                                                                                 |   |                              |           |   |   |   |           |          |
| Deposits, interest-bearing                                                                                                  |   |                              | $              | 84,607 |   |   | $              | 79,691        |                                                                                 |
| Federal Home Loan Bank advances                                                                                             |   |                              | 4,600          |   |   |   | 5,600          |          |
| Other borrowings                                                                                                            |   |                              | 412            |   |   |   | 423            |          |
| Accrued interest payable                                                                                                    |   |                              | 96             |   |   |   | 107            |          |
| Advances from borrowers for taxes and insurance                                                                             |   |                              | 663            |   |   |   | 746            |          |
| Accrued expenses and other liabilities                                                                                      |   |                              |  228      |   |   |   |  343      |          |
| Total Liabilities                                                                                                           |   |                              | 90,606         |   |   |   | 86,910         |          |
|                                                                                                                        |   |                              |           |   |   |   |           |          |
| 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; 992,126 and 992,436 outstanding at June 30, 2011and December 31, 2010, respectively |   |                              |   14 |   |   |   |   14 |          |
| Additional paid-in capital                                                                                                  |   |                              | 13,459         |   |   |   | 13,478         |          |
| Treasury stock, at cost: 2011 396,499 shares; 2010 396,189 shares                                                           |   |                              | (3,639         | )      |   |   | (3,636         | )             |
| Unallocated common stock held by:        Employee Stock Ownership Plan (ESOP)       |   |                              |  (779     | )      |   |   | (813           | )   |
|         Recognition & Retention Plan Trust (RRP)                                     |   |                              | (280           | )      |   |   | (360           | )             |
| Accumulated other comprehensive (loss)                                                                                      |   |                              | -              |   |   |   | (13            | )             |
| Retained earnings                                                                                                           |   |                              | 6,730          |   |   |   |  6,521    |          |
|      Total Stockholders' Equity                                                                         |   |                              | 15,505         |   |   |   | 15,191         |          |
|                                                                                                                        |   |                              |           |   |   |   |           |          |
|      Total Liabilities and Stockholders’ Equity                                                   |   | $                                 | 106,111        |   |   | $      | 102,101        |          |

----

----

|                                                                                                            |   | For the ThreeMonths Ended             |    |   | For the SixMonths Ended |   |
|-----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|--------|-------------------------|--------|
|                                                                                                            |   | June 30,                              |    |   | June 30,                |   |
|                                                                                                            |   | 2011                                  |    |   | 2010                    |   |   | 2011 |   |   | 2010 |   |
| Interest Income                                                                                                 |   | (In thousands, except per share data) |    |
|    Interest on loans                                                                             |   | $                                     | 1,255   |   |                    | $      | 1,200 |   |   | $ | 2,491 |   |   | $ | 2,388 |   |
|    Interest on short-term investment and investment securities                                   |   |                                  | 123     |   |                    |   | 126 |   |   |   | 244 |   |   |   | 245 |   |
|           Total Interest Income                               |   |                                  | 1,378   |   |                    |   | 1,326 |   |   |   | 2,735 |   |   |   | 2,633 |   |
|                                                                                                            |   |                                  |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Interest Expense                                                                                                |   |                                  |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|    Interest on deposits                                                                          |   |                                  | 426     |   |                    |   | 417 |   |   |   | 832 |   |   |   | 832 |   |
|    Interest on Federal Home Loan Bank advances                                                   |   |                                  | 50      |   |                    |   | 61 |   |   |   | 104 |   |   |   | 127 |   |
|    Interest on other borrowings                                                                  |   |                                  | 6       |   |                    |   | 6 |   |   |   | 12 |   |   |   | 13 |   |
|           Total Interest Expense                              |   |                                  | 482     |   |                    |   | 484 |   |   |   | 948 |   |   |   | 972 |   |
|                                                                                                            |   |                                  |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|           Net Interest Income                                 |   |                                  | 896     |   |                    |   | 842 |   |   |   | 1,787 |   |   |   | 1,661 |   |
|                                                                                                            |   |                                  |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Provision for Loan Losses                                                                                       |   |                                  | 29      |   |                    |   | 28 |   |   |   | 56 |   |   |   | 57 |   |
|                                                                                                            |   |                                  |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|           Net Interest Income after Provision for Loan Losses |   |                                  | 867     |   |                    |   | 814 |   |   |   | 1,731 |   |   |   | 1,604 |   |
|                                                                                                            |   |                                  |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Non-Interest Income                                                                                             |   |                                  |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|    Mortgage banking fees                                                                         |   |                                  | 83      |   |                    |   | 61 |   |   |   | 129 |   |   |   | 100 |   |
|    Other fees and services charges                                                               |   |                                  | 7       |   |                    |   | 11 |   |   |   | 17 |   |   |   | 23 |   |
|    Other                                                                                         |   |                                  | 12      |   |                    |   | 4 |   |   |   | 35 |   |   |   | 24 |   |
|           Total Non-Interest Income                           |   |                                  | 102     |   |                    |   | 76 |   |   |   | 181 |   |   |   | 147 |   |
|                                                                                                            |   |                                  |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Non-Interest Expense                                                                                            |   |                                  |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|    Salaries and employee benefits                                                                |   |                                  | 437     |   |                    |   | 337 |   |   |   | 822 |   |   |   | 658 |   |
|    Directors’ fees and expenses                                                            |   |                                  | 55      |   |                    |   | 52 |   |   |   | 113 |   |   |   | 104 |   |
|    Occupancy and equipment                                                                       |   |                                  | 56      |   |                    |   | 41 |   |   |   | 107 |   |   |   | 90 |   |
|    Professional fees                                                                             |   |                                  | 77      |   |                    |   | 95 |   |   |   | 153 |   |   |   | 181 |   |
|    FDIC deposit insurance assessment                                                             |   |                                  | 38      |   |                    |   | 38 |   |   |   | 77 |   |   |   | 76 |   |
|    Other real estate owned expense                                                               |   |                                  | 38      |   |                    |   | 18 |   |   |   | 51 |   |   |   | 26 |   |
|    Advertising                                                                                   |   |                                  | 12      |   |                    |   | 19 |   |   |   | 23 |   |   |   | 29 |   |
|    Other                                                                                         |   |                                  | 58      |   |                    |   | 58 |   |   |   | 104 |   |   |   | 104 |   |
|           Total Non-Interest Expense                          |   |                                  | 771     |   |                    |   | 658 |   |   |   | 1,450 |   |   |   | 1,268 |   |
|                                                                                                            |   |                                  |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|           Income before Income Taxes                          |   |                                  | 198     |   |                    |   | 232 |   |   |   | 462 |   |   |   | 483 |   |
|                                                                                                            |   |                                  |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Income Taxes                                                                                                    |   |                                  | 81      |   |                    |   | 93 |   |   |   | 188 |   |   |   | 191 |   |
|                                                                                                            |   |                                  |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|           Net Income                                          |   | $                                     | 117     |   |                    | $      | 139 |   |   | $ | 274 |   |   | $ | 292 |   |
|                                                                                                            |   |                                  |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|           Earnings per share – basic                    |   | $                                     | 0.12    |   |                    | $      | 0.13 |   |   | $ | 0.28 |   |   | $ | 0.27 |   |
|           Average shares outstanding                          |   |                                  | 974,110 |   |                    |   | 1,042,956 |   |   |   | 971,029 |   |   |   | 1,083,942 |   |
|           Earnings per share – diluted                  |   | $                                     | 0.12    |   |                    | $      | 0.13 |   |   | $ | 0.28 |   |   | $ | 0.27 |   |
|           Average shares outstanding - diluted                |   |                                  | 979,067 |   |                    |   | 1,047,902 |   |   |   | 977,375 |   |   |   | 1,089,524 |   |

----

----

| Six Months Ended June 30, 2011 |
|-------------------------------------|

|                                                                                      |   |   |          |    |   |   |   |   |   |   |       |    |   |   |                 |    |   |   | Unallocated   |   |   |   |          |   |   |   |      |   |   |   |                |    |
|-------------------------------------------------------------------------------------------|--------|--------|---------------|---------|--------|--------|--------|--------|--------|--------|------------|---------|--------|--------|----------------------|---------|--------|--------|-------------------------|--------|--------|--------|---------------|--------|--------|--------|-----------|--------|--------|--------|---------------------|---------|
|                                                                                      |   |   | Common Stock  |    |   |   |   |   |   |   |       |    |   |   | Common               |    |   |   | Accumulated             |   |   |   |          |   |   |   |      |   |
| (In thousands, except share                                                               |   |   | Number of     |    |   |   |   |   |   |   | Additional |    |   |   |                 |    |   |   | Stock Held              |   |   |   | Other         |   |   |   |      |   |   |   | Total               |    |
| data)                                                                                     |   |   | Shares        |    |   |   |   |   |   |   | Paid-in    |    |   |   | Treasury   |    |   |   | by Benefit              |   |   |   | Comprehensive |   |   |   | Retained  |   |   |   | Stockholders’ |    |
|                                                                                      |   |   | Outstanding   |    |   |   | Amount |   |   |   | Capital    |    |   |   | Stock                |    |   |   | Plans                   |   |   |   | Income        |   |   |   | Earnings  |   |   |   | Equity              |    |
|  BALANCE – January 1, 2011                                                     |   |   |  992,436 |    |   | $      | 14     |   |   | $      | 13,478     |    |   | $      | (3,636               | )       |   | $      | (1,173                  | )      |   | $      | (13           | )      |   | $      | 6,521     |   |   | $      | 15,191              |    |
|  Common stock released by ESOP                                                       |   |   |          |    |   |   |   |   |   |   | 1          |    |   |   |                 |    |   |   |  34                |   |   |   |          |   |   |   |      |   |   |   |   35      |    |
|                                                                                      |   |   |          |    |   |   |   |   |   |   |       |    |   |   |                 |    |   |   |                    |   |   |   |          |   |   |   |      |   |   |   |                |    |
| Treasury stock purchased                                                                  |   |   | (310          | )  |   |   |   |   |   |   |       |    |   |   | (3                   | )  |   |   |                    |   |   |   |          |   |   |   |      |   |   |   | (3                  | )  |
|                                                                                      |   |   |          |    |   |   |   |   |   |   |       |    |   |   |                 |    |   |   |                    |   |   |   |          |   |   |   |      |   |   |   |                |    |
| Stock based compensation expense                                                          |   |   |          |    |   |   |   |   |   |   |  60   |    |   |   |                 |    |   |   |                    |   |   |   |          |   |   |   |      |   |   |   |  60            |    |
|                                                                                      |   |   |          |    |   |   |   |   |   |   |       |    |   |   |                 |    |   |   |                    |   |   |   |          |   |   |   |      |   |   |   |                |    |
| Release of vested common stock by the Recognition and Retention Plan Trust (8,529 shares) |   |   |          |    |   |   |   |   |   |   | (80        | )  |   |   |                 |    |   |   | 80                      |   |   |   |          |   |   |   |      |   |   |   | -                   |    |
|                                                                                      |   |   |          |    |   |   |   |   |   |   |       |    |   |   |                 |    |   |   |                    |   |   |   |          |   |   |   |      |   |   |   |                |    |
| Cash dividends declared ($0.065 per share)                                                |   |   |          |    |   |   |   |   |   |   |       |    |   |   |                 |    |   |   |                    |   |   |   |          |   |   |   |  (65 | )      |   |   |  (65           | )       |
|                                                                                      |   |   |          |    |   |   |   |   |   |   |       |    |   |   |                 |    |   |   |                    |   |   |   |          |   |   |   |      |   |   |   |                |    |
| Net income                                                                                |   |   |          |    |   |   |   |   |   |   |       |    |   |   |                 |    |   |   |                    |   |   |   |          |   |   |   | 274       |   |   |   | 274                 |    |
|                                                                                      |   |   |          |    |   |   |   |   |   |   |       |    |   |   |                 |    |   |   |                    |   |   |   |          |   |   |   |      |   |   |   |                |    |
| Unrealized gain on securities, net of deferred taxes                                      |   |   |          |    |   |   |   |   |   |   |       |    |   |   |                 |    |   |   |                    |   |   |   | 13            |   |   |   |      |   |   |   |   13      |    |
|                                                                                      |   |   |          |    |   |   |   |   |   |   |       |    |   |   |                 |    |   |   |                    |   |   |   |          |   |   |   |      |   |   |   |                |    |
| Comprehensive Income                                                                      |   |   |          |    |   |   |   |   |   |   |       |    |   |   |                 |    |   |   |                    |   |   |   |          |   |   |   |      |   |   | $      | 287                 |    |
|                                                                                      |   |   |          |    |   |   |   |   |   |   |       |    |   |   |                 |    |   |   |                    |   |   |   |          |   |   |   |      |   |   |   |                |    |
| BALANCE – June 30, 2011                                                             |   |   | 992,126       |    |   | $      | 14     |   |   | $      | 13,459     |    |   | $      | (3,639               | )       |   | $      | (1,059                  | )      |   | $      | -             |   |   | $      | 6,730     |   |   | $      | 15,505              |    |

----

----

|                                 | For the Six Months Ended |
|--------------------------------------|--------------------------|
|                                 | June 30,                 |
|                                 | 2011                     |   | 2010 |
| Cash Flows from Operating Activities |  (In Thousands)     |

| Net income                                                                                                |   | $      | 274    |   |   | $      | 292    |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Adjustments to reconcile net income to net cash (used in) provided by operating activities:               |   |   |   |   |   |   |   |   |
| Provision for loan losses                                                                                 |   |   | 56     |   |   |   | 57     |   |
| Depreciation expense                                                                                      |   |   | 25     |   |   |   | 27     |   |
| Net accretion of securities discounts                                                                     |   |   | (3     | )      |   |   | (5     | )      |
| Amortization of deferred loan fees and costs                                                              |   |   | 2      |   |   |   | 5      |   |
| Stock-based compensation expense                                                                          |   |   | 95     |   |   |   | 93     |   |
|        Changes in assets and liabilities which provided (used) cash:   |   |   |   |   |   |   |   |   |
|      Loans held for sale                                                         |   |   | (1,139 | )      |   |   | -      |   |
|             Accrued interest receivable       |   |   | (31    | )      |   |   | 24     |   |
|             Prepaid expenses and other assets |   |   | (76    | )      |   |   | 44     |   |
|     Accrued interest payable                                                          |   |   | (11    | )      |   |   | (12    | )      |
|     Accrued expenses and other liabilities                                            |   |   | (115   | )      |   |   | 69     |   |
| Net Cash (Used in) Provided by Operating Activities                                                       |   |   | (923   | )      |   |   | 594    |   |

| Net (increase) decrease in investment in interest-earning time deposits    |   |   | 526    |   |   |   | (1,029 | )      |
|----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Purchase of investment securities available for sale                       |   |   | (1,628 | )      |   |   | (2,012 | )      |
| Proceeds from calls of investment securities available for sale            |   |   | 1,550  |   |   |   | 500    |   |
| Principal payments received on mortgage-backed securities held to maturity |   |   | 810    |   |   |   | 1,069  |   |
| Net (increase) decrease  in loans receivable                     |   |   | 602    |   |   |   | (2,644 | )      |
| Net decrease in investment in Federal Home Loan Bank stock                 |   |   | 74     |   |   |   | -      |   |
| Proceeds from the sale of other real estate owned                          |   |   | 585    |   |   |   | -      |   |
| Capitalized expenditures on other real estate owned                        |   |   | -      |   |   |   | (25    | )      |
| Purchase of premises and equipment                                         |   |   | (68    | )      |   |   | (18    | )      |
| Net Cash (Used in) Provided by Investing Activities                        |   |   | 2,451  |   |   |   | (4,159 | )      |

| Cash Flows from Financing Activities                        |   |   |   |   |   |   |   |   |   |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net increase in deposits                                    |   |   | 4,916  |   |   |   |   |   | 7,729  |   |
| Decrease in Federal Home Loan Bank advances                 |   |   | (1,000 | )      |   |   |   |   | (500   | )      |
| Repayment of other borrowings                               |   |   | (11    | )      |   |   |   |   | (9     | )      |
| Dividends paid                                              |   |   | (65    | )      |   |   |   |   | (68    | )      |
| Purchase of treasury stock                                  |   |   | (3     | )      |   |   |   |   | (1,202 | )      |
| Decrease in advances from borrowers for taxes and insurance |   |   | (83    | )      |   |   |   |   | (57    | )      |
|    Net Cash Provided by Financing Activities      |   |   | 3,754  |   |   |   |   |   | 5,893  |   |
|    Net Increase in Cash and Cash Equivalents      |   |   | 5,282  |   |   |   |   |   | 2,328  |   |

| Cash and Cash Equivalents – Beginning of Period |   |   | 8,650  |   |   |   | 5,420 |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|-------|--------|
| Cash and Cash Equivalents – End of Period       |   | $      | 13,932 |   |   | $      | 7,748 |   |

| Cash payments for interest                   |   | $ | 959 |   |   | $ | 984 |   |
|----------------------------------------------|--------|---|-----|--------|--------|---|-----|--------|
| Cash payments for income taxes               |   | $ | 405 |   |   | $ | 180 |   |
| Transfer of loans to other real estate owned |   | $ | 585 |   |   | $ | -   |   |

----

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|                                                                        |   | June 30, 2011  |      |
|-----------------------------------------------------------------------------|--------|----------------|-----------|
|                                                                        |   | Amortized Cost |      |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   |  Fair Value |   |
| Available for Sale:                                                         |   |           |      |   |   |   |   |   |   |   |   |   |
|     U.S. Government agency securities                   |   |           |      |   |   |   |   |   |   |   |   |   |
|        Due after 1 year through 5 years  |   | $              | -         |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|        Due after 5 year through 10 years |   |           | 1,300     |   |   |   | 3 |   |   |   | - |   |   |   | 1,303 |   |
|     Corporate bonds                                     |   |           | 500       |   |   |   | 1 |   |   |   | - |   |   |   | 501 |   |
|     Short-term bond fund                                |   |           | 1,058     |   |   |   | 2 |   |   |   | - |   |   |   | 1,060 |   |
|     Limited-term bond fund                              |   |           |  510 |   |   |   | - |   |   |   | (6 | ) |   |   |  504 |   |
|                                                                        |   | $              | 3,368     |   |   | $ | 6 |   |   | $ | (6 | ) |   | $ | 3,368 |   |

|                                                                        |   | December 31, 2010 |      |
|-----------------------------------------------------------------------------|--------|-------------------|-----------|
|                                                                        |   | Amortized Cost    |      |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   |  Fair Value |   |
| Available for Sale:                                                         |   |              |      |   |   |   |   |   |   |   |   |   |
|     U.S. Government agency securities                   |   |              |      |   |   |   |   |   |   |   |   |   |
|        Due after 1 year through 5 years  |   | $                 | 1,250     |   |   | $ | 2 |   |   | $ | - |   |   | $ | 1,252 |   |
|        Due after 5 year through 10 years |   |              | 500       |   |   |   | - |   |   |   | (15 | ) |   |   | 485 |   |
|     Short-term bond fund                                |   |              | 1,035     |   |   |   | 2 |   |   |   | - |   |   |   | 1,037 |   |
|     Limited-term bond fund                              |   |              |  505 |   |   |   | - |   |   |   |  (8 | ) |   |   |  497 |   |
|                                                                        |   | $                 | 3,290     |   |   | $ | 4 |   |   | $ | (23 | ) |   | $ | 3,271 |   |

----

----

|                                                    |   |                 |   |   |                   |   |   |                    |   |   |             |   |
|---------------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|--------|-------------------------|--------|--------|------------------|--------|
|                                                    |   | June 30, 2011        |   |
|                                                    |   |  Amortized Cost |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   |  Fair Value |   |
| Held to Maturity:                                       |   |                 |   |   |                   |   |   |                    |   |   |             |   |
|     FNMA pass-through certificates  |   | $                    | 2,432  |   |                   | $      | 232    |                    |   | $      | -                |   |   | $ | 2,664 |   |
|     FHLMC pass-through certificates |   |                 | 2,167  |   |                   |   | 182    |                    |   |   | -                |   |   |   | 2,349 |   |
|                                     |   | $                    | 4,599  |   |                   | $      | 414    |                    |   | $      | -                |   |   | $ | 5,013 |   |
|                                                    |   |                 |   |   |                   |   |   |                    |   |   |             |   |   |   |   |   |
|                                                    |   |                 |   |   |                   |   |   |                    |   |   |             |   |   |   |   |   |
|                                                    |   | December 31, 2010    |   |
|                                                    |   | Amortized Cost       |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   |  Fair Value |   |
| Held to Maturity:                                       |   |                 |   |   |                   |   |   |                    |   |   |             |   |   |   |   |   |
|     FNMA pass-through certificates  |   | $                    | 2,803  |   |                   | $      | 222    |                    |   | $      | -                |   |   | $ | 3,025 |   |
|     FHLMC pass-through certificates |   |                 | 2,603  |   |                   |   | 182    |                    |   |   | -                |   |   |   | 2,785 |   |
|                                     |   | $                    | 5,406  |   |                   | $      | 404    |                    |   | $      | -                |   |   | $ | 5,810 |   |

----

----

|                                                                                             |   | June 30,2011 |         |   | December 31,2010 |   |
|--------------------------------------------------------------------------------------------------|--------|--------------|--------------|--------|------------------|--------|
| Real estate loans:                                                                               |   |         |         |   |             |   |
|   One-to four-family residential:                                                      |   |         |         |   |             |   |
|        Owner occupied                                         |   | $            | 11,627       |   |             | $      | 13,428 |   |
|   Non-owner occupied                                                                   |   |         | 28,241       |   |             |   | 26,263 |   |
|           Total one-to-four family residential |   |         | 39,868       |   |             |   | 39,691 |   |
|                                                                                             |   |         |         |   |             |   |   |   |
|    Multi-family (five or more)  residential                             |   |         | 3,264        |   |             |   | 3,226 |   |
|    Commercial real estate                                                         |   |         | 18,280       |   |             |   | 18,773 |   |
|    Construction                                                                   |   |         | 5,632        |   |             |   | 5,773 |   |
|    Commercial lines of  credit                                          |   |         | 1,287        |   |             |   | 1,854 |   |
|    Home equity loans                                                              |   |         |  5,812  |   |             |   |  6,181 |   |
|           Total real estate loans              |   |         | 74,143       |   |             |   | 75,498 |   |
|                                                                                             |   |         |         |   |             |   |   |   |
| Auto loans                                                                                       |   |         | 49           |   |             |   | 75 |   |
| Loans secured by deposits                                                                        |   |         |  53     |   |             |   |  15 |   |
| Total loans                                                                                      |   |         | 74,245       |   |             |   | 75,588 |   |
|                                                                                             |   |         |         |   |             |   |   |   |
| Deferred loan fees and costs                                                                     |   |         | (21          | )      |             |   | (7 | ) |
|        Allowance for loan losses                              |   |         |  (759   | )      |             |   |  (871 | ) |
| Net loans                                                                                        |   | $            |  73,465 |   |             | $      |  74,710 |   |

|                                                                        |   | June 30,2011 |    |   | June 30,2010 |   |
|-----------------------------------------------------------------------------|--------|--------------|---------|--------|--------------|--------|
| Balance, beginning of the year                                              |   | $            | 871     |   |         | $      | 835 |   |
|      Provision for loan losses                     |   |         | 56      |   |         |   | 57 |   |
|      Charge-offs                                   |   |         | (168    | )      |         |   | - |   |
| Recoveries                                                                  |   |         |  - |   |         |   |  - |   |
|           Net charge-offs |   |         | (168    | )      |         |   |  - |   |
|                                                                        |   |         |    |   |         |   |   |   |
| Balance, end of period                                                      |   | $            | 759     |   |         | $      | 892 |   |

----

----

|                                              |   | June 30, 2011 |     |
|---------------------------------------------------|--------|---------------|----------|
|                                              |   | Pass          |     |   | Special Mention |   |   | Substandard |   |   | Doubtful |   |   | Total |   |
|                                              |   |          |     |
| One-to-four family residential owner occupied     |   | $             | 10,753   |   |   | $ | 57 |   |   | $ | 254 |   |   | $ | 564 |   |   | $ | 11,628 |   |
| One-to-four family residential non-owner occupied |   |          | 27,024   |   |   |   | 57 |   |   |   | 1,070 |   |   |   | 90 |   |   |   | 28,241 |   |
| Multi-family residential                          |   |          | 3,061    |   |   |   | 203 |   |   |   | - |   |   |   | - |   |   |   | 3,264 |   |
| Commercial real estate and lines of credit        |   |          | 19,209   |   |   |   | 358 |   |   |   | - |   |   |   | - |   |   |   | 19,567 |   |
| Construction                                      |   |          | 5,632    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,632 |   |
| Home equity                                       |   |          | 5,178    |   |   |   | 50 |   |   |   | 583 |   |   |   | - |   |   |   | 5,811 |   |
| Consumer non-real estate                          |   |          |  89 |   |   |   |  13 |   |   |   |  - |   |   |   |  - |   |   |   |  102 |   |
|                                              |   | $             | 70,946   |   |   | $ | 738 |   |   | $ | 1,907 |   |   | $ | 654 |   |   | $ | 74,245 |   |

|                                              |   | December 31, 2010 |     |
|---------------------------------------------------|--------|------------------------|----------|
|                                              |   | Pass                   |     |   | Special Mention |   |   | Substandard |   |   | Doubtful |   |   | Total |   |
|                                              |   |                   |     |
| One-to-four family residential owner occupied     |   | $                      | 12,139   |   |   | $ | 742 |   |   | $ | 79 |   |   | $ | 468 |   |   | $ | 13,428 |   |
| One-to-four family residential non-owner occupied |   |                   | 24,700   |   |   |   | 109 |   |   |   | 1,079 |   |   |   | 375 |   |   |   | 26,263 |   |
| Multi-family residential                          |   |                   | 3,022    |   |   |   | 204 |   |   |   | - |   |   |   | - |   |   |   | 3,226 |   |
| Commercial real estate and lines of credit        |   |                   | 20,202   |   |   |   | 318 |   |   |   | 107 |   |   |   | - |   |   |   | 20,627 |   |
| Construction                                      |   |                   | 5,773    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,773 |   |
| Home equity                                       |   |                   | 5,757    |   |   |   | 350 |   |   |   | 74 |   |   |   | - |   |   |   | 6,181 |   |
| Consumer non-real estate                          |   |                   |  75 |   |   |   |  - |   |   |   |  15 |   |   |   |  - |   |   |   |  90 |   |
|                                              |   | $                      | 71,668   |   |   | $ | 1,723 |   |   | $ | 1,354 |   |   | $ | 843 |   |   | $ | 75,588 |   |

----

----

|                                                                                       |   | June 30, 2011 |   |
|--------------------------------------------------------------------------------------------|--------|---------------|--------|
|                                                                                       |   |          |   |   | Unpaid |   |   |   |   |   | Average |   |   | Interest |   |
|                                                                                       |   | Recorded      |   |   | Principal |   |   | Related |   |   | Recorded |   |   | Income |   |
|                                                                                       |   | Investment    |   |   | Balance |   |   | Allowance |   |   | Investment |   |   | Recognized |   |
|  With no related allowance recorded:                                                  |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    One-to-four family residential owner occupied                            |   | $             | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|    One-to-four family residential non-owner occupied                        |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Multi-family residential                                     |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|         Commercial real estate and lines of credit |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Construction                                                 |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Home equity                                                  |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Consumer non-real estate                                     |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                       |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded:                                                                |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    One-to-four family residential owner occupied                            |   | $             | 818    |   |   | $ | 818 |   |   | $ | 28 |   |   | $ | 819 |   |   | $ | 7 |   |
|    One-to-four family residential non-owner occupied                        |   |          | 1,160  |   |   |   | 1,160 |   |   |   | 72 |   |   |   | 1,163 |   |   |   | 25 |   |
|      Multi-family residential and lines of credit                 |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|         Commercial real estate                     |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Construction                                                 |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Home equity                                                  |   |          | 583    |   |   |   | 583 |   |   |   | 30 |   |   |   | 588 |   |   |   | 22 |   |
|      Consumer non-real estate                                     |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                       |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total:                                                                                     |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    One-to-four family residential owner occupied                            |   | $             | 818    |   |   | $ | 818 |   |   | $ | 28 |   |   | $ | 819 |   |   | $ | 7 |   |
|    One-to-four family residential non-owner occupied                        |   |          | 1,160  |   |   |   | 1,160 |   |   |   | 72 |   |   |   | 1,163 |   |   |   | 25 |   |
|      Multi-family residential and lines of credit                 |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|         Commercial real estate                     |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Construction                                                 |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Home equity                                                  |   |          | 583    |   |   |   | 583 |   |   |   | 30 |   |   |   | 588 |   |   |   | 22 |   |
|      Consumer non-real estate                                     |   |          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                       |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                                                                                       |   | December 31, 2010 |   |
|--------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                       |   |              |   |   | Unpaid |   |   |   |   |   | Average |   |   | Interest |   |
|                                                                                       |   | Recorded          |   |   | Principal |   |   | Related |   |   | Recorded |   |   | Income |   |
|                                                                                       |   | Investment        |   |   | Balance |   |   | Allowance |   |   | Investment |   |   | Recognized |   |
| With no related allowance recorded:                                                        |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    One-to-four family residential owner occupied                            |   | $                 | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|    One-to-four family residential non-owner occupied                        |   |              | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Multi-family residential                                     |   |              | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|         Commercial real estate and lines of credit |   |              | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Construction                                                 |   |              | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Home equity                                                  |   |              | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Consumer non-real estate                                     |   |              | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded:                                                                |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    One-to-four family residential owner occupied                            |   | $                 | 547    |   |   | $ | 547 |   |   | $ | 108 |   |   | $ | 547 |   |   | $ | 12 |   |
|    One-to-four family residential non-owner occupied                        |   |              | 1,454  |   |   |   | 1,454 |   |   |   | 136 |   |   |   | 1,462 |   |   |   | 76 |   |
|      Multi-family residential and lines of credit                 |   |              | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|         Commercial real estate                     |   |              | 107    |   |   |   | 107 |   |   |   | 1 |   |   |   | 108 |   |   |   | 6 |   |
|      Construction                                                 |   |              | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Home equity                                                  |   |              | 74     |   |   |   | 74 |   |   |   | 25 |   |   |   | 75 |   |   |   | 5 |   |
|      Consumer non-real estate                                     |   |              | 15     |   |   |   | 15 |   |   |   | 1 |   |   |   | 18 |   |   |   | 1 |   |
|                                                                                       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total:                                                                                     |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    One-to-four family residential owner occupied                            |   | $                 | 547    |   |   | $ | 547 |   |   | $ | 108 |   |   | $ | 547 |   |   | $ | 12 |   |
|    One-to-four family residential non-owner occupied                        |   |              | 1,454  |   |   |   | 1,454 |   |   |   | 136 |   |   |   | 1,462 |   |   |   | 76 |   |
|      Multi-family residential and lines of credit                 |   |              | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|         Commercial real estate                     |   |              | 107    |   |   |   | 107 |   |   |   | 1 |   |   |   | 108 |   |   |   | 6 |   |
|      Construction                                                 |   |              | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Home equity                                                  |   |              | 74     |   |   |   | 74 |   |   |   | 25 |   |   |   | 75 |   |   |   | 5 |   |
|      Consumer non-real estate                                     |   |              | 15     |   |   |   | 15 |   |   |   | 1 |   |   |   | 18 |   |   |   | 1 |   |
|                                                                                       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                                                  |   |   | June 30, 2011 |    |
|-------------------------------------------------------|--------|--------|---------------|---------|
|                                                  |   |   |          |    |   |   | 1-4 Family |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |   | 1-4 Family    |    |   |   | Residential |   |   |   |   |   |   |   | Commercial |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |   | Residential   |    |   |   | Non- |   |   |   | Multi- |   |   |   | Real Estate |   |   |   |   |   |   |   |   |   |   |   | Consumer |   |   |   |   |   |   |   |   |   |
|                                                  |   |   | Owner         |    |   |   | Owner |   |   |   | Family |   |   |   |  and Lines of |   |   |   |   |   |   | Home |   |   |   | Non-Real |   |   |   |   |   |   |   |   |   |
|                                                  |   |   | Occupied      |    |   |   | Occupied |   |   |   | Residential |   |   |   | Credit |   |   |   | Construction |   |   |   | Equity |   |   |   | Estate |   |   |   | Unallocated |   |   |   | Total |   |
| For the ThreeMonths EndedJune 30, 2011                |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loanlosses:                             |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginningbalance                                      |   | $      | 192           |    |   | $ | 284 |   |   | $ | 24 |   |   | $ | 149 |   |   | $ | 40 |   |   | $ | 92 |   |   | $ | 1 |   |   | $ | 41 |   |   | $ | 823 |   |
|     Charge-offs                        |   |   | (93           | )  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (93 | )  |
|     Recoveries                         |   |   | -             |    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Provision                          |   |   | (1            | )  |   |   | 45 |   |   |   | (3 | )  |   |   | (12 | )  |   |   | (7 | ) |   |   | 5 |   |   |   | - |   |   |   | 2 |   |   |   | 29 |   |
| Ending balance                                        |   | $      | 98            |    |   | $ | 329 |   |   | $ | 21 |   |   | $ | 137 |   |   | $ | 33 |   |   | $ | 97 |   |   | $ | 1 |   |   | $ | 43 |   |   | $ | 759 |   |
|                                                  |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| For the Six Months EndedJune 30, 2011                 |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses:                            |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                                     |   | $      | 185           |    |   | $ | 335 |   |   | $ | 23 |   |   | $ | 155 |   |   | $ | 40 |   |   | $ | 92 |   |   | $ | 1 |   |   | $ | 40 |   |   | $ | 871 |   |
|     Charge-offs                   |   |   | (93           | )       |   |   | (75 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (168 | ) |
|     Recoveries                    |   |   | -             |    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Provision                     |   |   | 6             |    |   |   | 69 |   |   |   | (2 | ) |   |   | (18 | ) |   |   |  (7 | ) |   |   |  5 |   |   |   | - |   |   |   | 3 |   |   |   |  56 |   |
| Ending balance                                        |   | $      | 98            |    |   | $ | 329 |   |   | $ | 21 |   |   | $ | 137 |   |   | $ | 33 |   |   | $ | 97 |   |   | $ | 1 |   |   | $ | 43 |   |   | $ | 759 |   |
| Ending balance: Individually evaluated for impairment |   | $      |   28     |    |   | $ |   72 |   |   | $ |   - |   |   | $ |   - |   |   | $ |   - |   |   | $ |   30 |   |   | $ |   - |   |   | $ |   - |   |   | $ |   130 |   |
| Ending balance:Collectively evaluated for impairment  |   | $      |   70     |    |   | $ |   257 |   |   | $ |   21 |   |   | $ |   137 |   |   | $ |   33 |   |   | $ |   67 |   |   | $ |   1 |   |   | $ |   43 |   |   | $ |   629 |   |
|                                                  |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of June 30, 2011                                   |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable:                                     |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                        |   | $      |  11,628  |    |   | $ |  28,241 |   |   | $ |  3,264 |   |   | $ |  19,567 |   |   | $ |  5,632 |   |   | $ |  5,811 |   |   | $ |  102 |   |   |   |   |   |   | $ |  74,245 |   |
| Ending balance: Individually evaluated for impairment |   | $      |  818     |    |   | $ |  1,160 |   |   | $ |  - |   |   | $ |  - |   |   | $ |  - |   |   | $ |  583 |   |   | $ |  - |   |   |   |   |   |   | $ |  2,561 |   |
| Ending balance:Collectively evaluated for impairment  |   | $      |  10,810  |    |   | $ |  27,081 |   |   | $ |  3,264 |   |   | $ |  19,567 |   |   | $ |  5,632 |   |   | $ |  5,228 |   |   | $ |  102 |   |   |   |   |   |   | $ |  71,684 |   |

----

----

|                      |   |   | December 31, 2010 |   |
|---------------------------|--------|--------|-------------------|--------|
|                      |   |   |              |   |   |   | 1-4 Family |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |   | 1-4 Family        |   |   |   | Residential |   |   |   |   |   |   |   | Commercial |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |   | Residential       |   |   |   | Non- |   |   |   | Multi- |   |   |   | Real Estate |   |   |   |   |   |   |   |   |   |   |   | Consumer |   |   |   |   |   |   |   |   |   |
|                      |   |   | Owner             |   |   |   | Owner |   |   |   | Family |   |   |   |  and Lines of |   |   |   |   |   |   | Home |   |   |   | Non-Real |   |   |   |   |   |   |   |   |   |
|                      |   |   | Occupied          |   |   |   | Occupied |   |   |   | Residential |   |   |   | Credit |   |   |   | Construction |   |   |   | Equity |   |   |   | Estate |   |   |   | Unallocated |   |   |   | Total |   |
| Allowance for loanlosses: |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Beginning balance                                     |   | $      | 83         |   |   | $      | 202        |   |   | $      | 22        |   |   | $      | 194        |   |   | $      | 35        |   |   | $      | 41        |   |   | $      | 1        |   |   | $      | 256       |   |   | $      | 834        |   |
|-------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|----------|--------|--------|--------|-----------|--------|--------|--------|------------|--------|
|     Charge-offs                   |   |   | -          |   |   |   | (78        | )      |   |   | -         |   |   |   | -          |   |   |   | -         |   |   |   | -         |   |   |   | -        |   |   |   | -         |   |   |   | (78        | )      |
|     Recoveries                    |   |   | -          |   |   |   | -          |   |   |   | -         |   |   |   | -          |   |   |   | -         |   |   |   | -         |   |   |   | -        |   |   |   | -         |   |   |   | -          |   |
|     Provision                     |   |   | 102        |   |   |   | 211        |   |   |   |  1   |   |   |   | (39        | )      |   |   |  5   |   |   |   | 51        |   |   |   |  -  |   |   |   | (216      | )      |   |   | 115        |   |
| Ending balance                                        |   | $      | 185        |   |   | $      | 335        |   |   | $      | 23        |   |   | $      | 155        |   |   | $      | 40        |   |   | $      | 92        |   |   | $      | 1        |   |   | $      | 40        |   |   | $      | 871        |   |
| Ending balance: individually evaluated for impairment |   | $      |   108 |   |   | $      |   136 |   |   | $      |   -  |   |   | $      |   1   |   |   | $      |   -  |   |   | $      |   25 |   |   | $      |   1 |   |   | $      |   -  |   |   | $      |   271 |   |
| Ending balance: collectively evaluated for impairment |   | $      |   77  |   |   | $      |   199 |   |   | $      |   23 |   |   | $      |   154 |   |   | $      |   40 |   |   | $      |   67 |   |   | $      |   - |   |   | $      |   40 |   |   | $      |   600 |   |

| Ending balance                                        |   | $ | 13,428        |   |   | $ | 26,263        |   |   | $ | 3,226        |   |   | $ | 20,627        |   |   | $ | 5,773        |   |   | $ | 6,181        |   |   | $ | 90        |   |   | $ | 75,588        |   |
|-------------------------------------------------------|--------|---|---------------|--------|--------|---|---------------|--------|--------|---|--------------|--------|--------|---|---------------|--------|--------|---|--------------|--------|--------|---|--------------|--------|--------|---|-----------|--------|--------|---|---------------|--------|
| Ending balance: individually evaluated for impairment |   | $ |   547    |   |   | $ |   1,454  |   |   | $ |   -     |   |   | $ |   107    |   |   | $ |   -     |   |   | $ |   74    |   |   | $ |   15 |   |   | $ |   2,197  |   |
| Ending balance: collectively evaluated for impairment |   | $ |   12,881 |   |   | $ |   24,809 |   |   | $ |   3,226 |   |   | $ |   20,520 |   |   | $ |   5,773 |   |   | $ |   6,107 |   |   | $ |   75 |   |   | $ |   73,391 |   |

----

----

|                                              |   | June 30,2011 |    |   | December 31, 2010 |   |
|---------------------------------------------------|--------|--------------|---------|--------|-------------------|--------|
| One-to-four family residential owner occupied     |   | $            | 636     |   |              | $      | 539 |   |
| One-to-four family residential non-owner occupied |   |         | 543     |   |              |   | 422 |   |
| Multi-family residential                          |   |         | -       |   |              |   | - |   |
| Commercial real estate and lines of credit        |   |         | -       |   |              |   | - |   |
| Construction                                      |   |         | -       |   |              |   | - |   |
| Home equity                                       |   |         | 238     |   |              |   | 23 |   |
| Consumer non-real estate                          |   |         |  - |   |              |   |  - |   |
|                                              |   | $            | 1,417   |   |              | $      | 984 |   |

----

----

|                                                                           |   | June 30, 2011           |        |
|--------------------------------------------------------------------------------|--------|-------------------------|-------------|
|                                                                           |   | 30-90 Days PastDue |        |   | Greaterthan 90Days |   |   |  TotalPast Due |   |   |   Current |   |   |  Total Loans Receivable |   |   | Loans Receivable > 90 Days and Accruing |   |
|                                                                           |   |                    |        |
| One-to-four family residential owner     occupied               |   | $                       | 67          |   |   | $ | 232 |   |   | $ | 299 |   |   | $ | 11,329 |   |   | $ | 11,628 |   |   | $ | 232 |   |
| One-to-four family residential non-    owner occupied |   |                    |  1,479 |   |   |   |  248 |   |   |   |  1,727 |   |   |   |  26,514 |   |   |   |  28,241 |   |   |   |  248 |   |
| Multi-family residential                                                       |   |                    | 202         |   |   |   | - |   |   |   | 202 |   |   |   | 3,062 |   |   |   | 3,264 |   |   |   | - |   |
| Commercial real estate and lines of    credit                        |   |                    | 1,631       |   |   |   | 132 |   |   |   | 1,763 |   |   |   | 17,804 |   |   |   | 19,567 |   |   |   | 132 |   |
| Construction                                                                   |   |                    | 382         |   |   |   | - |   |   |   | 382 |   |   |   | 5,250 |   |   |   | 5,632 |   |   |   | - |   |
| Home equity                                                                    |   |                    | 78          |   |   |   | 68 |   |   |   | 146 |   |   |   | 5,665 |   |   |   | 5,811 |   |   |   | 68 |   |
| Consumer non-real estate                                                       |   |                    |  13    |   |   |   |  - |   |   |   |  13 |   |   |   |  89 |   |   |   |  102 |   |   |   |  - |   |
|                                                                           |   | $                       | 3,852       |   |   | $ | 680 |   |   | $ | 4,532 |   |   | $ | 69,713 |   |   | $ | 74,245 |   |   | $ | 680 |   |

|                                                                           |   | December 31, 2010   |        |
|--------------------------------------------------------------------------------|--------|--------------------------|-------------|
|                                                                           |   |  30-90 Days PastDue |        |   |  Greaterthan 90 Days |   |   |   Total Past Due |   |   |    Current |   |   |   Total Loans Receivable |   |   | Loans Receivable > 90 Days and Accruing |   |
|                                                                           |   |                     |        |
| One-to-four family residential owner    occupied           |   | $                        | 810         |   |   | $ | 61 |   |   | $ | 871 |   |   | $ | 12,557 |   |   | $ | 13,428 |   |   | $ | 61 |   |
| One-to-four family residential non-    owner occupied |   |                     |  1,106 |   |   |   |  353 |   |   |   |  1,459 |   |   |   |  24,804 |   |   |   |  26,263 |   |   |   |  353 |   |
| Multi-family residential                                                       |   |                     | 204         |   |   |   | - |   |   |   | 204 |   |   |   | 3,022 |   |   |   | 3,226 |   |   |   | - |   |
| Commercial real estate and lines of    credit                   |   |                     | 1,061       |   |   |   | 108 |   |   |   | 1,169 |   |   |   | 19,458 |   |   |   | 20,627 |   |   |   | 108 |   |
| Construction                                                                   |   |                     | -           |   |   |   | - |   |   |   | - |   |   |   | 5,773 |   |   |   | 5,773 |   |   |   | - |   |
| Home equity                                                                    |   |                     | 437         |   |   |   | - |   |   |   | 437 |   |   |   | 5,744 |   |   |   | 6,181 |   |   |   | - |   |
| Consumer non-real estate                                                       |   |                     |  15    |   |   |   |  - |   |   |   |  15 |   |   |   |  75 |   |   |   |  90 |   |   |   |  - |   |
|                                                                           |   | $                        | 3,633       |   |   | $ | 522 |   |   | $ | 4,155 |   |   | $ | 71,433 |   |   | $ | 75,588 |   |   | $ | 522 |   |

----

----

|                                         |   | June 30,2011 |   |   | December 31, 2010 |   |
|----------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                                         |   |              |   |   |              |   |   |   |
| Passbook savings accounts                    |   | $                 | 2,972  |   |              | $      | 3,079 |   |
| Statement savings accounts                   |   |              | 6,544  |   |              |   | 6,798 |   |
| eSavings accounts                            |   |              | 3,011  |   |              |   | 2,253 |   |
| Certificates of deposit                      |   |              | 72,080 |   |              |   | 67,561 |   |
|      Total deposits |   | $                 | 84,607 |   |              | $      | 79,691 |   |
|                                         |   |              |   |   |              |   |   |   |

|     Maturity Period |   | Amount |   |   | WeightedInterest Rate |   |
|-----------------------------------------|--------|--------|--------|--------|-----------------------|--------|
|   1 to 12 months              |   | $      | 1,800  |   |                  |   | 3.83 | % |
| 13 to 24 months                         |   |   | 1,800  |   |                  |   | 4.09 | % |
| 37 to 48 months                         |   |   | 1,000  |   |                  |   | 4.32 | % |
|     Total           |   | $      | 4,600  |   |                  |   | 4.04 | % |

----

----

|                                  |   | June 30, 2011    |   |   | June 30, 2010                         |   |
|---------------------------------------|--------|------------------|--------|--------|---------------------------------------|--------|
|                                  |   | Number of Shares |   |   | WeightedAverage Grant Date Fair Value |   | Number of Shares |   |   | WeightedAverage GrantDate Fair Value |   |
| Unvested at the beginning of the year |   |             | 25,969 |   |                                  | $      | 9.05 |   |   |   | 34,498 |   |   | $ | 9.05 |   |
| Granted                               |   |             | -      |   |                                  |   | - |   |   |   | - |   |   |   | - |   |
| Vested                                |   |             | (8,529 | )      |                                  |   | 9.05 |   |   |   | (8,529 | ) |   |   | 9.05 |   |
| Forfeited                             |   |             | -      |   |                                  |   | - |   |   |   | - |   |   |   | - |   |
| Unvested at the end of the period     |   |             | 17,440 |   |                                  | $      | 9.05 |   |   |   | 25,969 |   |   | $ | 9.05 |   |

----

----

|                                     |   | June 30, 2011   |    |   | June 30, 2010                 |   |     |            |   |
|------------------------------------------|--------|-----------------|---------|--------|-------------------------------|--------|----------|-----------------|--------|
|                                     |   | Numberof Shares |    |   | WeightedAverage ExercisePrice |   |     | Numberof Shares |   |   | Weighted  Average Exercise    Price |   |   | WeightedAverage Remaining Contractual Life (in years) |   |
| Outstanding at the beginning of the year |   |            | 107,570 |   |                          | $      | 10.00    |            |   |   | 107,718 |   |   | $ | 10.00 |   |   |   | 7.4 |   |
| Granted                                  |   |            | --      |   |                          |   | --       |            |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Exercised                                |   |            | --      |   |                          |   | --       |            |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Forfeited                                |   |            | --      |   |                          |   |  -- |            |   |   | (148 | ) |   |   |  -- |   |   |   | -- |   |
| Outstanding at the end of the period     |   |            | 107,570 |   |                          | $      | 10.00    |            |   |   | 107,570 |   |   | $ | 10.00 |   |   |   | 6.9 |   |
| Exercisable at the end of the period     |   |            | 42,666  |   |                          | $      | 10.00    |            |   |   | 42,666 |   |   |   |   |   |   |   | 6.9 |   |

----

----

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

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

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

|                                                        |   | June 30, 2011                |      |
|-------------------------------------------------------------|--------|------------------------------|-----------|
|                                                        |   |   Total Fair Value |      |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   |  Significant Other Observable Inputs(Level 2) |   |   | Significant Other ObservableInputs(Level 3) |   |
|    Investment securities available for sale: |   |                         |      |
| U.S. Government agency securities                           |   | $                            | 1,303     |   |   | $ | - |   |   | $ | 1,303 |   |   | $ | - |   |
| Corporate bonds                                             |   |                         | 501       |   |   |   | 501 |   |   |   | - |   |   |   |   |   |
| Short-term bond fund                                        |   |                         | 1,060     |   |   |   | 1,060 |   |   |   | - |   |   |   | - |   |
| Limited-term bond fund                                      |   |                         |  504 |   |   |   |  504 |   |   |   |  - |   |   |   | - |   |
|                                                        |   | $                            | 3,368     |   |   | $ | 2,065 |   |   | $ | 1,303 |   |   | $ | - |   |

|                                                        |   | December 31, 2010            |      |
|-------------------------------------------------------------|--------|------------------------------|-----------|
|                                                        |   |   Total Fair Value |      |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   |  Significant Other Observable Inputs(Level 2) |   |   | Significant Other Observable Inputs(Level 3) |   |
|    Investment securities available for sale: |   |                         |      |
| U.S. Government agency securities                           |   | $                            | 1,737     |   |   | $ | - |   |   | $ | 1,737 |   |   | $ | - |   |
| Short-term bond fund                                        |   |                         | 1,037     |   |   |   | 1,037 |   |   |   | - |   |   |   | - |   |
| Limited-term bond fund                                      |   |                         |  497 |   |   |   |  497 |   |   |   |  - |   |   |   | - |   |
|                                                        |   | $                            | 3,271     |   |   | $ | 1,534 |   |   | $ | 1,737 |   |   | $ | - |   |

----

----

|                    |   | June 30, 2011               |   |
|-------------------------|--------|-----------------------------|--------|
|                    |   |   Carrying Amount |   |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Other ObservableInputs(Level 3) |   |
|                    |   |                        |   |
| Impaired loans          |   | $                           | 2,431  |   |   | $ | - |   |   | $ | - |   |   | $ | 2,431 |   |
|                    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other real estate owned |   | $                           | 1,191  |   |   | $ | - |   |   | $ | - |   |   | $ | 1,191 |   |
|                    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                    |   | December 31, 2010                 |   |
|-------------------------|--------|-----------------------------------|--------|
|                    |   |    Carrying Amount |   |   | Quoted Prices in Active Markets for IdenticalAssets(Level 1) |   |   |  Significant Other Observable Inputs(Level 2) |   |   | Significant Other Observable Inputs(Level 3) |   |
|                    |   |                              |   |
| Impaired loans          |   | $                                 | 1,926  |   |   | $ | - |   |   | $ | - |   |   | $ | 1,926 |   |
|                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other real estate owned |   | $                                 | 1,191  |   |   | $ | - |   |   | $ | - |   |   | $ | 1,191 |   |
|                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

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|                                                     |   | June 30, 2011  |   |   | December 31, 2010   |   |
|----------------------------------------------------------|--------|----------------|--------|--------|---------------------|--------|
|                                                     |   | CarryingAmount |   |   | EstimatedFair Value |   |   | CarryingAmount |   |   | EstimatedFair Value |   |
|                                                     |   | (In Thousands) |   |
| Assets:                                                  |   |           |   |   |                |   |   |   |   |   |   |   |
|   Cash and cash equivalents                    |   | $              | 13,932 |   |                | $      | 13,932 |   |   | $ | 8,650 |   |   | $ | 8,650 |   |
|   Investment in interest-earning time deposits |   |           | 5,475  |   |                |   | 5,506 |   |   |   | 6,001 |   |   |   | 6,019 |   |
|   Investment securities available for sale     |   |           | 3,368  |   |                |   | 3,368 |   |   |   | 3,271 |   |   |   | 3,271 |   |
|                                                     |   |           |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
|   Mortgage-backed securities held to maturity  |   |           | 4,599  |   |                |   | 5,013 |   |   |   | 5,406 |   |   |   | 5,810 |   |
|   Loans held for sale                          |   |           | 1,139  |   |                |   | 1,153 |   |   |   | - |   |   |   | - |   |
|   Loans receivable, net                        |   |           | 73,465 |   |                |   | 74,643 |   |   |   | 74,710 |   |   |   | 76,212 |   |
|   Investment in FHLB stock                     |   |           | 683    |   |                |   | 683 |   |   |   | 757 |   |   |   | 757 |   |
|   Accrued interest receivable                  |   |           | 454    |   |                |   | 454 |   |   |   | 423 |   |   |   | 423 |   |
|                                                     |   |           |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                             |   |           |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
|   Deposits                                     |   |           | 84,607 |   |                |   | 85,440 |   |   |   | 79,691 |   |   |   | 80,526 |   |
|   FHLB advances, long-term                     |   |           | 2,800  |   |                |   | 2,642 |   |   |   | 3,800 |   |   |   | 4,020 |   |
|   FHLB advances, short-term                    |   |           | 1,800  |   |                |   | 1,800 |   |   |   | 1,800 |   |   |   | 1,800 |   |
|   Other borrowings                             |   |           | 412    |   |                |   | 412 |   |   |   | 423 |   |   |   | 423 |   |
|   Accrued interest payable                     |   |           | 96     |   |                |   | 96 |   |   |   | 107 |   |   |   | 107 |   |
|                                                     |   |           |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Off-balance sheet financial instruments                  |   |           | -      |   |                |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |   |           |   |   |                |   |   |   |   |   |   |   |   |   |   |   |

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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 June 30, |        |
|--------------------------------------------------------------------------------|--------|-----------------------------|-------------|
|                                                                           |   | 2011                        |        |   | 2010 |   |
|                                                                           |   | AverageBalance              |        |   | Interest |   |   | AverageYield/Rate |   |   | AverageBalance |   |   | Interest |   |   | AverageYield/Rate |   |
| Interest-earning assets:                                                       |   | (Dollars in thousands)      |        |
|   Short-term investments and investment securities                   |   | $                           | 21,524      |   |   | $ | 66 |   |   |   | 1.23 |   |   | $ | 12,919 |   |   | $ | 44 |   |   |   | 1.36 | % |
|   Mortgage-backed securities                                         |   |                        | 4,800       |   |   |   | 57 |   |   |   | 4.75 |   |   |   | 6,943 |   |   |   | 82 |   |   |   | 4.72 |   |
|   Loans receivable, net (1)                                          |   |                        | 73,930      |   |   |   | 1,255 |   |   |   | 6.79 |   |   |   | 74,024 |   |   |   | 1,200 |   |   |   | 6.48 |   |
|      Total interest-earning assets                    |   |                        | 100,254     |   |   |   | 1,378 |   |   |   | 5.50 | % |   |   | 93,886 |   |   |   | 1,326 |   |   |   | 5.65 | % |
| Non-interest-earning assets                                                    |   |                        |  5,940 |   |   |   |   |   |   |   |   |   |   |   |  3,841 |   |   |   |   |   |   |   |   |   |
|      Total assets                                     |   | $                           | 106,194     |   |   |   |   |   |   |   |   |   |   | $ | 97,727 |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                  |   |                        |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Passbook accounts                                            |   | $                           | 3,073       |   |   |   | 3 |   |   |   | 0.39 | % |   | $ | 3,263 |   |   |   | 5 |   |   |   | 0.61 | % |
|    Statement savings accounts                                   |   |                        | 6,936       |   |   |   | 14 |   |   |   | 0.81 |   |   |   | 6,645 |   |   |   | 18 |   |   |   | 1.08 |   |
|    eSavings accounts                                            |   |                        | 2,965       |   |   |   | 7 |   |   |   | 0.94 |   |   |   | 1,843 |   |   |   | 6 |   |   |   | 1.30 |   |
|    Certificate of deposit accounts                              |   |                        | 71,706      |   |   |   | 402 |   |   |   | 2.24 |   |   |   | 61,694 |   |   |   | 388 |   |   |   | 2.52 |   |
|       Total deposits                             |   |                        | 84,680      |   |   |   | 426 |   |   |   | 2.01 |   |   |   | 73,445 |   |   |   | 417 |   |   |   | 2.27 |   |
| FHLB advances                                                                  |   |                        | 4,885       |   |   |   | 50 |   |   |   | 4.09 |   |   |   | 6,489 |   |   |   | 61 |   |   |   | 3.76 |   |
| Other borrowings                                                               |   |                        | 414         |   |   |   | 6 |   |   |   | 5.80 |   |   |   |  434 |   |   |   |  6 |   |   |   | 5.53 |   |
|      Total interest-bearing liabilities               |   |                        | 89,979      |   |   |   | 482 |   |   |   | 2.14 | % |   |   | 80,368 |   |   |   | 484 |   |   |   | 2.41 | % |
| Non-interest-bearing liabilities                                               |   |                        | 749         |   |   |   |   |   |   |   |   |   |   |   | 816 |   |   |   |   |   |   |   |   |   |
|      Total liabilities                                |   |                        | 90,728      |   |   |   |   |   |   |   |   |   |   |   | 81,184 |   |   |   |   |   |   |   |   |   |
| Stockholders’ Equity                                                     |   |                        | 15,466      |   |   |   |   |   |   |   |   |   |   |   | 16,543 |   |   |   |   |   |   |   |   |   |
|      Total liabilities and Stockholders’ Equity |   | $                           | 106,194     |   |   |   |   |   |   |   |   |   |   | $ | 97,727 |   |   |   |   |   |   |   |   |   |
| Net interest-earning assets                                                    |   | $                           | 10,275      |   |   |   |   |   |   |   |   |   |   | $ | 13,518 |   |   |   |   |   |   |   |   |   |
| Net interest income; average interest rate spread                              |   |                        |        |   |   | $ | 896 |   |   |   | 3.36 | % |   |   |   |   |   | $ | 842 |   |   |   | 3.24 | % |
| Net interest margin (2)                                                        |   |                        |        |   |   |   |   |   |   |   | 3.57 | % |   |   |   |   |   |   |   |   |   |   | 3.59 | % |
| Average interest-earning assets to average interest-bearing liabilities   |   |                        |        |   |   |   |   |   |   |   | 111.42 | % |   |   |   |   |   |   |   |   |   |   | 116.82 | % |

|  (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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----

----

|                                                                                                  |   | Six Months Ended June 30, |        |
|-------------------------------------------------------------------------------------------------------|--------|---------------------------|-------------|
|                                                                                                  |   | 2011                      |        |   | 2010 |   |
|                                                                                                  |   | AverageBalance            |        |   | Interest |   |   | AverageYield/Rate |   |   | AverageBalance |   |   | Interest |   |   | AverageYield/Rate |   |
| Interest-earning assets:                                                                              |   | (Dollars in thousands)    |        |
|   Short-term investments and investment securities                                          |   | $                         | 20,143      |   |   | $ | 124 |   |   |   | 1.23 | % |   | $ | 11,170 |   |   | $ | 74 |   |   |   | 1.32 | % |
|   Mortgage-backed securities                                                                |   |                      | 5,004       |   |   |   | 120 |   |   |   | 4.80 |   |   |   | 7,197 |   |   |   | 171 |   |   |   | 4.75 |   |
|   Loans receivable, net (1)                                                                 |   |                      | 73,932      |   |   |   | 2,491 |   |   |   | 6.74 |   |   |   | 73,327 |   |   |   | 2,388 |   |   |   | 6.51 |   |
|      Total interest-earning assets                                           |   |                      | 99,079      |   |   |   | 2,735 |   |   |   | 5.52 | % |   |   | 91,694 |   |   |   | 2,633 |   |   |   | 5.74 | % |
| Non-interest-earning assets                                                                           |   |                      |  5,601 |   |   |   |   |   |   |   |   |   |   |   |  4,586 |   |   |   |   |   |   |   |   |   |
|      Total assets                                                            |   | $                         | 104,680     |   |   |   |   |   |   |   |   |   |   | $ | 96,280 |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                         |   |                      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Passbook accounts                                                                   |   | $                         | 3,082       |   |   |   | 6 |   |   |   | 0.39 | % |   | $ | 3,279 |   |   |   | 11 |   |   |   | 0.67 | % |
|    Statement savings accounts                                                          |   |                      | 6,923       |   |   |   | 27 |   |   |   | 0.78 |   |   |   | 6,597 |   |   |   | 38 |   |   |   | 1.15 |   |
|    eSavings accounts                                                                   |   |                      | 2,700       |   |   |   | 13 |   |   |   | 0.96 |   |   |   | 1,892 |   |   |   | 12 |   |   |   | 1.27 |   |
|    Certificate of deposit accounts                                                     |   |                      | 70,051      |   |   |   | 786 |   |   |   | 2.24 |   |   |   | 59,658 |   |   |   | 771 |   |   |   | 2.58 |   |
|       Total deposits                                                    |   |                      | 82,756      |   |   |   | 832 |   |   |   | 2.01 |   |   |   | 71,426 |   |   |   | 832 |   |   |   | 2.33 |   |
| FHLB advances                                                                                         |   |                      | 5,241       |   |   |   | 104 |   |   |   | 3.97 |   |   |   | 6,667 |   |   |   | 127 |   |   |   | 3.81 |   |
| Other borrowings                                                                                      |   |                      | 417         |   |   |   |  12 |   |   |   | 5.76 |   |   |   | 437 |   |   |   |  13 |   |   |   | 5.95 |   |
|      Total interest-bearing liabilities                                      |   |                      | 88,414      |   |   |   | 948 |   |   |   | 2.14 | % |   |   | 78,530 |   |   |   | 972 |   |   |   | 2.48 | % |
| Non-interest-bearing liabilities                                                                      |   |                      | 863         |   |   |   |   |   |   |   |   |   |   |   | 855 |   |   |   |   |   |   |   |   |   |
|      Total liabilities                                                       |   |                      | 89,277      |   |   |   |   |   |   |   |   |   |   |   | 79,385 |   |   |   |   |   |   |   |   |   |
| Stockholders’ Equity                                                                            |   |                      | 15,403      |   |   |   |   |   |   |   |   |   |   |   | 16,895 |   |   |   |   |   |   |   |   |   |
|      Total liabilities and Stockholders’ Equity                        |   | $                         | 104,680     |   |   |   |   |   |   |   |   |   |   | $ | 96,280 |   |   |   |   |   |   |   |   |   |
| Net interest-earning assets                                                                           |   | $                         | 10,665      |   |   |   |   |   |   |   |   |   |   | $ | 13,164 |   |   |   |   |   |   |   |   |   |
| Net interest income; average interest rate     spread                             |   |                      |        |   |   | $ | 1,787 |   |   |   | 3.38 | % |   |   |   |   |   | $ | 1,661 |   |   |   | 3.26 | % |
| Net interest margin (2)                                                                               |   |                      |        |   |   |   |   |   |   |   | 3.61 | % |   |   |   |   |   |   |   |   |   |   | 3.62 | % |
| Average interest-earning assets to      average interest-bearing liabilities |   |                      |        |   |   |   |   |   |   |   | 112.06 | % |   |   |   |   |   |   |   |   |   |   | 116.76 | % |

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

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

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| Period                               |   | Total Number of SharesPurchased |   |   | Average Price Paid per Share |   |    | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) |   |
|--------------------------------------|--------|---------------------------------|--------|--------|-----------------------------------|--------|---------|----------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------|--------|
| April 1, 2011 – April 30, 2011 |   |                            | -      |   |                              | $      | -       |                                                                             |   |   | -                                                                                       |   |   |   | 68,535 |   |
| May 1, 2011 – May 31, 2011     |   |                            | 310    |   |                              |   | 9.65    |                                                                             |   |   | 310                                                                                     |   |   |   | 68,225 |   |
| June 1, 2011 – June 30, 2011   |   |                            | -      |   |                              |   |  - |                                                                             |   |   | -                                                                                       |   |   |   | - |   |
| Total                                |   |                            | -      |   |                              | $      | 9.65    |                                                                             |   |   | -                                                                                       |   |   |   | 68.225 |   |

| (1)   | On September 10, 2010, the Company announced by press release its third repurchase program to repurchase up to an additional 69,431 shares, or approximately 6.2% of the Company's current outstanding shares of common stock as of September 30, 2010. The Company commenced this third stock repurchase program upon the completion of its prior repurchase program on December 3, 2010. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| No.       | Description                                  |
|-----------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1                                    | Rule 13a-14(d) and 15d-14(d) Certification of the Chief Executive Officer.                                                                                                                                        |
| 31.2                                    | Rule 13a-14(d) and 15d-14(d) Certification of the Chief Financial Officer.                                                                                                                                        |
| 32.0                                    | Section 1350 Certification.                                                                                                                                                                                       |

| No.       | Description                               |
|-----------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 101.INS                                 | XBRL Instance Document.*                                                                                                                                                                        |
| 101.SCH                                 | XBRL Taxonomy Extension Schema Document.*                                                                                                                                                       |
| 101.CAL                                 | XBRL Taxonomy Extension Calculation Linkbase Document.*                                                                                                                                         |
| 101.LAB                                 | XBRL Taxonomy Extension Label Linkbase Document.*                                                                                                                                               |
| 101.PRE                                 | XBRL Taxonomy Extension Presentation Linkbase Document.*                                                                                                                                        |
| 101.DEF                                 | XBRL Taxonomy Extension Definitions Linkbase Document.*                                                                                                                                         |

|   | * | To be filed within 30 days after the earlier of the due date or filing date of this Form 10-Q, as permitted by Section II (B) (4) of Securities and Exchange Commission Release No. 34-59324 effective April 13, 2009.  These interactive data files are being furnished as part of this Quarterly Report, and, in accordance with Rule 402 of Regulation S-T, shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Date:  | August 15, 2011 | By:    | /s/Robert T. Strong                      |
|--------|-----------------|--------|------------------------------------------|
|   |            |   | Robert T. Strong                         |
|   |            |   | President and Chief Executive Officer    |
|   |            |   |                                     |
|   |            |   |                                     |
| Date:  | August 15, 2011 | By:    | /s/John J. Augustine                     |
|   |            |   | John J. AugustineChief Financial Officer |