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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549





FORM 10-Q





(Mark One)

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

For the quarterly period ended September 30, 2009

OR



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

For the transition period from  to

Commission file number:
001-33573





Louisiana Bancorp, Inc.

(Exact Name of Registrant as Specified in Its Charter)







|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Louisiana                                                      |  | 20-8715162                          
|(State or Other Jurisdiction of Incorporation or Organization) |  | (I.R.S. Employer Identification No.)



|                                                      |  |           
|----------------------------------------------------- |  | ----------
|1600 Veterans Memorial Boulevard, Metairie, Louisiana |  | 70005     
|(Address of Principal Executive Offices)              |  | (Zip Code)

(504) 834-1190

(Registrants Telephone Number, Including Area Code)





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

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

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



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

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

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date: As of November 12, 2009, there were 5,057,441 shares of the
Registrants common stock outstanding.









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PART I - FINANCIAL INFORMATION

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



|                            |  |    |  |                                                                                       |  |     
|--------------------------- |  | -- |  | ------------------------------------------------------------------------------------- |  | ----
|                            |  |    |  |                                                                                       |  | Page
|                            |  |    | 
|Item 1                      |  | -  |  | Financial Statements                                                                  |  | 3   
|                            |  |    | 
|Item 2                      |  | -  |  | Managements Discussion and Analysis of Financial Condition and Results of
Operations |  | 20  
|                            |  |    | 
|Item 3                      |  | -  |  | Quantitative and Qualitative Disclosures About Market Risk                            |  | 27  
|                            |  |    | 
|Item 4T                     |  | -  |  | Controls and Procedures                                                               |  | 27  
|                           
|PART II - OTHER INFORMATION
|                            |  |    | 
|Item 1                      |  | -  |  | Legal Proceedings                                                                     |  | 28  
|                            |  |    | 
|Item 1A                     |  | -  |  | Risk Factors                                                                          |  | 28  
|                            |  |    | 
|Item 2                      |  | -  |  | Unregistered Sales of Equity Securities and Use of Proceeds                           |  | 28  
|                            |  |    | 
|Item 3                      |  | -  |  | Defaults Upon Senior Securities                                                       |  | 28  
|                            |  |    | 
|Item 4                      |  | -  |  | Submission of Matters to a Vote of Security Holders                                   |  | 28  
|                            |  |    | 
|Item 5                      |  | -  |  | Other Information                                                                     |  | 28  
|                            |  |    | 
|Item 6                      |  | -  |  | Exhibits                                                                              |  | 28  
|                            | 
|Signatures                  |  | 29



2



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LOUISIANA BANCORP, INC.

Consolidated Balance Sheets



|                                                                                                                                                                                              |  |                      |         |   |            |   |         |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------- | ------- | - | ---------- | - | ------- | -
|                                                                                                                                                                                              |  | (unaudited)9/30/2009 |         |   | 12/31/2008 |  
|                                                                                                                                                                                              |  | (in thousands)       |        
|Assets                                                                                                                                                                                        |  |                      |         |   |            |   |         |  
|Cash and Due from Banks                                                                                                                                                                       |  | $                    | 3,338   |   |            | $ | 3,308   |  
|Short-term Interest-Bearing Deposits                                                                                                                                                          |  |                      | 7,791   |   |            |   | 1,666   |  
|                                                                                                                                                                                              |  |                      |         |   |            |   |         |  
|Total Cash and Cash Equivalents                                                                                                                                                               |  |                      | 11,129  |   |            |   | 4,974   |  
|                                                                                                                                                                                              |  |                     
|Certificates of Deposit                                                                                                                                                                       |  |                      | 1,723   |   |            |   | 1,425   |  
|Securities Available-for-Sale, at Fair Value (amortized cost of $65,400, and $78,065, respectively)                                                                                           |  |                      | 67,748  |   |            |   | 80,091  |  
|Securities Held-to-Maturity, at Amortized Cost (estimated fair value of $105,542, and $127,255, respectively)                                                                                 |  |                      | 100,530 |   |            |   | 123,429 |  
|Loans, Net of Allowance for Loan Losses of $1,682, and $1,952, respectively                                                                                                                   |  |                      | 144,256 |   |            |   | 111,236 |  
|Accrued Interest Receivable                                                                                                                                                                   |  |                      | 1,435   |   |            |   | 1,649   |  
|Other Real Estate Owned                                                                                                                                                                       |  |                      | 553     |   |            |   |        |  
|Stock in Federal Home Loan Bank                                                                                                                                                               |  |                      | 2,298   |   |            |   | 2,293   |  
|Premises and Equipment, Net                                                                                                                                                                   |  |                      | 1,833   |   |            |   | 1,804   |  
|Other Assets                                                                                                                                                                                  |  |                      | 732     |   |            |   | 548     |  
|                                                                                                                                                                                              |  |                      |         |   |            |   |         |  
|Total Assets                                                                                                                                                                                  |  | $                    | 332,237 |   |            | $ | 327,449 |  
|                                                                                                                                                                                              |  |                      |         |   |            |   |         |  
|                                                                                                                                                                                              |  |                     
|Liabilities and Shareholders Equity                                                                                                                                                          |  |                      |         |   |            |   |         |  
|Deposits                                                                                                                                                                                      |  |                      |         |   |            |   |         |  
|Noninterest-bearing                                                                                                                                                                           |  | $                    | 7,419   |   |            | $ | 4,219   |  
|Interest-bearing                                                                                                                                                                              |  |                      | 179,190 |   |            |   | 156,370 |  
|                                                                                                                                                                                              |  |                      |         |   |            |   |         |  
|Total deposits                                                                                                                                                                                |  |                      | 186,609 |   |            |   | 160,589 |  
|                                                                                                                                                                                              |  |                     
|Borrowings                                                                                                                                                                                    |  |                      | 61,518  |   |            |   | 76,660  |  
|Advance Payments by Borrowers for Taxes and Insurance                                                                                                                                         |  |                      | 2,180   |   |            |   | 1,639   |  
|Accrued Interest Payable                                                                                                                                                                      |  |                      | 576     |   |            |   | 664     |  
|Other Liabilities                                                                                                                                                                             |  |                      | 2,221   |   |            |   | 2,170   |  
|                                                                                                                                                                                              |  |                      |         |   |            |   |         |  
|Total Liabilities                                                                                                                                                                             |  |                      | 253,104 |   |            |   | 241,722 |  
|                                                                                                                                                                                              |  |                      |         |   |            |   |         |  
|                                                                                                                                                                                              |  |                     
|Commitments and Contingencies                                                                                                                                                                 |  |                      |        |   |            |   |        |  
|                                                                                                                                                                                              |  |                     
|Shareholders Equity                                                                                                                                                                          |  |                      |         |   |            |   |         |  
|Common Stock, $.01 Par Value, 40,000,000 Shares Authorized; 6,345,732 Shares Issued; 5,199,790 Shares Outstanding at
September 30, 2009 and 5,931,312 Shares Outstanding at December 31, 2008 |  |                      | 63      |   |            |   | 63      |  
|Additional Paid-in-Capital                                                                                                                                                                    |  |                      | 62,434  |   |            |   | 62,305  |  
|Unearned ESOP Shares                                                                                                                                                                          |  |                      | (4,696  | ) |            |   | (4,696  | )
|Unearned Recognition and Retention Plan Shares                                                                                                                                                |  |                      | (2,646  | ) |            |   | (3,200  | )
|Treasury Stock, at Cost (1,145,942 Shares at September 30, 2009 and 414,420 Shares at December 31,
2008)                                                                                      |  |                      | (14,564 | ) |            |   | (5,208  | )
|Retained Earnings                                                                                                                                                                             |  |                      | 36,992  |   |            |   | 35,126  |  
|Accumulated Other Comprehensive Income                                                                                                                                                        |  |                      | 1,550   |   |            |   | 1,337   |  
|                                                                                                                                                                                              |  |                      |         |   |            |   |         |  
|Total Shareholders Equity                                                                                                                                                                    |  |                      | 79,133  |   |            |   | 85,727  |  
|                                                                                                                                                                                              |  |                      |         |   |            |   |         |  
|Total Liabilities and Shareholders Equity                                                                                                                                                    |  | $                    | 332,237 |   |            | $ | 327,449 |  
|                                                                                                                                                                                              |  |                      |         |   |            |   |         |  

See accompanying notes to unaudited consolidated financial statements.



3



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LOUISIANA BANCORP, INC.

Consolidated Statements of Income (Unaudited)



|                                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|-------------------------------------------------------------- |  | --------------------------------------- | ----- | ---- | -------------------------------------- | ----- | ---- |  | ---- | ------ |  | - | ------ | -
|                                                               |  | For the Three MonthsEnded September 30, |       |      | For the Nine MonthsEnded September 30, |      
|                                                               |  | 2009                                    |       | 2008 |                                        |       | 2009 |  | 2008 |       
|                                                               |  | (in thousands, except per share data)   |      
|Interest and Dividend Income                                   |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|Loans, Including Fees                                          |  | $                                       | 2,180 |      | $                                      | 1,769 |      |  | $    | 6,055  |  | $ | 5,177  |  
|Mortgage Backed Securities                                     |  |                                         | 1,786 |      |                                        | 1,613 |      |  |      | 5,992  |  |   | 4,616  |  
|Investment Securities                                          |  |                                         | 174   |      |                                        | 461   |      |  |      | 538    |  |   | 1,564  |  
|Other interest-bearing deposits                                |  |                                         | 18    |      |                                        | 66    |      |  |      | 57     |  |   | 287    |  
|                                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|Total Interest and Dividend Income                             |  |                                         | 4,158 |      |                                        | 3,909 |      |  |      | 12,642 |  |   | 11,644 |  
|                                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|                                                               |  |                                         |       |     
|Interest Expense                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|Deposits                                                       |  |                                         | 913   |      |                                        | 945   |      |  |      | 2,799  |  |   | 2,967  |  
|Borrowings                                                     |  |                                         | 646   |      |                                        | 514   |      |  |      | 1,942  |  |   | 1,406  |  
|                                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|Total Interest Expense                                         |  |                                         | 1,559 |      |                                        | 1,459 |      |  |      | 4,741  |  |   | 4,373  |  
|                                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|                                                               |  |                                         |       |     
|Net Interest Income                                            |  |                                         | 2,599 |      |                                        | 2,450 |      |  |      | 7,901  |  |   | 7,271  |  
|                                                               |  |                                         |       |     
|Provision (Recovery) for Loan Losses                           |  |                                         | 73    |      |                                        | (12   | )    |  |      | 126    |  |   | (39    | )
|                                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|                                                               |  |                                         |       |     
|Net Interest Income after Provision (Recovery) for Loan Losses |  |                                         | 2,526 |      |                                        | 2,462 |      |  |      | 7,775  |  |   | 7,310  |  
|                                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|                                                               |  |                                         |       |     
|Non-Interest Income                                            |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|Customer Service Fees                                          |  |                                         | 76    |      |                                        | 124   |      |  |      | 246    |  |   | 285    |  
|Gain on Sale of Securities                                     |  |                                         |      |      |                                        |      |      |  |      | 91     |  |   |       |  
|Other Income                                                   |  |                                         | 21    |      |                                        | 28    |      |  |      | 69     |  |   | 105    |  
|                                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|Total Non-Interest Income                                      |  |                                         | 97    |      |                                        | 152   |      |  |      | 406    |  |   | 390    |  
|                                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|                                                               |  |                                         |       |     
|Non-Interest Expense                                           |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|Salaries and Employee Benefits                                 |  |                                         | 1,068 |      |                                        | 1,022 |      |  |      | 3,281  |  |   | 2,961  |  
|Occupancy Expense                                              |  |                                         | 298   |      |                                        | 268   |      |  |      | 851    |  |   | 770    |  
|Other Expenses                                                 |  |                                         | 378   |      |                                        | 221   |      |  |      | 1,153  |  |   | 1,015  |  
|                                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|Total Non-Interest Expense                                     |  |                                         | 1,744 |      |                                        | 1,511 |      |  |      | 5,285  |  |   | 4,746  |  
|                                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|                                                               |  |                                         |       |     
|Income Before Income Tax Expense                               |  |                                         | 879   |      |                                        | 1,103 |      |  |      | 2,896  |  |   | 2,954  |  
|                                                               |  |                                         |       |     
|Income Tax Expense                                             |  |                                         | 315   |      |                                        | 354   |      |  |      | 1,030  |  |   | 947    |  
|                                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|                                                               |  |                                         |       |     
|Net Income                                                     |  | $                                       | 564   |      | $                                      | 749   |      |  | $    | 1,866  |  | $ | 2,007  |  
|                                                               |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|                                                               |  |                                         |       |     
|Earnings Per Share                                             |  |                                         |       |      |                                        |       |      |  |      |        |  |   |        |  
|Basic                                                          |  | $                                       | 0.12  |      | $                                      | 0.13  |      |  | $    | 0.39   |  | $ | 0.35   |  
|Diluted                                                        |  | $                                       | 0.12  |      | $                                      | 0.13  |      |  | $    | 0.39   |  | $ | 0.35   |  

See accompanying notes to unaudited financial statements.



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LOUISIANA BANCORP, INC.

Consolidated Statements of Comprehensive Income

(Unaudited)



|                                                             |  |                                        |       |   |      |   |       |  
|------------------------------------------------------------ |  | -------------------------------------- | ----- | - | ---- | - | ----- | -
|                                                             |  | For the Nine MonthsEnded September 30, |      
|                                                             |  | 2009                                   |       |   | 2008 |  
|                                                             |  | (in thousands)                         |      
|                                                             |  |                                       
|Net Income                                                   |  | $                                      | 1,866 |   |      | $ | 2,007 |  
|                                                             |  |                                       
|Other Comprehensive Income (Loss)                            |  |                                        |       |   |      |   |       |  
|Unrealized Holding Gains (Losses) Arising During the period  |  |                                        | 304   |   |      |   | (139  | )
|Reclassification Adjustment for Gains Included in Net Income |  |                                        | (91   | ) |      |   |      |  
|                                                             |  |                                        |       |   |      |   |       |  
|                                                             |  |                                       
|Total Other Comprehensive Income (Loss)                      |  |                                        | 213   |   |      |   | (139  | )
|                                                             |  |                                        |       |   |      |   |       |  
|                                                             |  |                                       
|Comprehensive Income                                         |  | $                                      | 2,079 |   |      | $ | 1,868 |  
|                                                             |  |                                        |       |   |      |   |       |  



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LOUISIANA BANCORP, INC.

Consolidated Statements of Changes in Shareholders Equity (unaudited)

For the Nine Months Ended September 30, 2009 and 2008

(Dollars in
thousands)



|                                                                    |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |  |                          |        |  |   |       |   |  |   |        |  
|------------------------------------------------------------------- |  | ----------- | -- | ------------------------ | - | ------ | ----------------- |  | - | ---------------- | - |  | ------------- | ------ | - | ---------------- | - | ------------------------------------------ | - |  | ------------------------ | ------ |  | - | ----- | - |  | - | ------ | -
|                                                                    |  | CommonStock |    | AdditionalPaid-inCapital |   |        | UnearnedESOPStock |  |   | UnearnedRRPStock |   |  | TreasuryStock |        |   | RetainedEarnings |   | AccumulatedOtherComprehensiveIncome (Loss) |   |  | TotalShareholdersEquity |       
|                                                                    |  |             |    |                          |   |        |                   | 
|Balances at December 31, 2007                                       |  | $           | 63 |                          | $ | 62,073 |                   |  | $ | (4,950           | ) |  | $             |       |   |                  | $ |                                           |   |  | $                        | 32,382 |  | $ | 302   |   |  | $ | 89,870 |  
|Net Income - Nine Months Ended September 30, 2008                   |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |  |                          | 2,007  |  |   |       |   |  |   | 2,007  |  
|Other Comprehensive Loss, Net of Applicable Deferred Income Taxes   |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |  |                          |        |  |   | (139  | ) |  |   | (139   | )
|Stock Purchased for Recognition and Retention Plan                  |  |             |    |                          |   |        |                   |  |   |                  |   |  |               | (3,041 | ) |                  |   |                                            |   |  |                          |        |  |   |       |   |  |   | (3,041 | )
|Stock Purchased for Treasury                                        |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   | (3,071                                     | ) |  |                          |        |  |   |       |   |  |   | (3,071 | )
|Stock Option Expense                                                |  |             |    |                          |   | 127    |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |  |                          |        |  |   |       |   |  |   | 127    |  
|                                                                    |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |  |                          |        |  |   |       |   |  |   |        |  
|Balance at September 30, 2008                                       |  | $           | 63 |                          | $ | 62,200 |                   |  | $ | (4,950           | ) |  | $             | (3,041 | ) |                  | $ | (3,071                                     | ) |  | $                        | 34,389 |  | $ | 163   |   |  | $ | 85,753 |  
|                                                                    |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |  |                          |        |  |   |       |   |  |   |        |  
|                                                                    |  |             |    |                          |   |        |                   | 
|Balances at December 31, 2008                                       |  | $           | 63 |                          | $ | 62,305 |                   |  | $ | (4,696           | ) |  | $             | (3,200 | ) |                  | $ | (5,208                                     | ) |  | $                        | 35,126 |  | $ | 1,337 |   |  | $ | 85,727 |  
|Net Income - Nine Months Ended September 30, 2009                   |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |  |                          | 1,866  |  |   |       |   |  |   | 1,866  |  
|Other Comprehensive Income, Net of Applicable Deferred Income Taxes |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |  |                          |        |  |   | 213   |   |  |   | 213    |  
|Stock Purchased for Treasury                                        |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   | (9,356                                     | ) |  |                          |        |  |   |       |   |  |   | (9,356 | )
|RRP Shares Earned                                                   |  |             |    |                          |   | (48    | )                 |  |   |                  |   |  |               | 554    |   |                  |   |                                            |   |  |                          |        |  |   |       |   |  |   | 506    |  
|Stock Option Expense                                                |  |             |    |                          |   | 177    |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |  |                          |        |  |   |       |   |  |   | 177    |  
|                                                                    |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |  |                          |        |  |   |       |   |  |   |        |  
|Balance at September 30, 2009                                       |  | $           | 63 |                          | $ | 62,434 |                   |  | $ | (4,696           | ) |  | $             | (2,646 | ) |                  | $ | (14,564                                    | ) |  | $                        | 36,992 |  | $ | 1,550 |   |  | $ | 79,133 |  
|                                                                    |  |             |    |                          |   |        |                   |  |   |                  |   |  |               |        |   |                  |   |                                            |   |  |                          |        |  |   |       |   |  |   |        |  



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LOUISIANA BANCORP, INC.

Consolidated Statements of Cash Flows (Unaudited)



|                                                                                  |  |                                        |         |   |      |   |         |  
|--------------------------------------------------------------------------------- |  | -------------------------------------- | ------- | - | ---- | - | ------- | -
|                                                                                  |  | For the Nine MonthsEnded September 30, |        
|                                                                                  |  | 2009                                   |         |   | 2008 |  
|                                                                                  |  | (In Thousands)                         |        
|                                                                                  |  |                                       
|Cash Flows from Operating Activities                                              |  |                                        |         |   |      |   |         |  
|Net Income                                                                        |  | $                                      | 1,866   |   |      | $ | 2,007   |  
|Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |  |                                        |         |   |      |   |         |  
|Depreciation                                                                      |  |                                        | 177     |   |      |   | 173     |  
|Provision (Recovery) for Loan Losses                                              |  |                                        | 126     |   |      |   | (39     | )
|Net Increase in RRP Shares Earned                                                 |  |                                        | 506     |   |      |   |        |  
|Stock Option Plan Expense                                                         |  |                                        | 177     |   |      |   | 127     |  
|Discount Accretion Net of Premium Amortization                                    |  |                                        | (258    | ) |      |   | (99     | )
|Gain on Insurance Settlement                                                      |  |                                        | (2      | ) |      |   |        |  
|Deferred Income Tax Benefit                                                       |  |                                        | (40     | ) |      |   | (34     | )
|Gain on Sale of Securities                                                        |  |                                        | (91     | ) |      |   |        |  
|Gain on Sale of Loans                                                             |  |                                        | (8      | ) |      |   | (28     | )
|Gain on Sale of Property and Equipment                                            |  |                                        |        |   |      |   | (7      | )
|Originations of Loans Held-for-Sale                                               |  |                                        | (4,548  | ) |      |   | (1,281  | )
|Proceeds from Sales of Loans Held-for-Sale                                        |  |                                        | 4,547   |   |      |   | 1,269   |  
|Decrease in Accrued Interest Receivable                                           |  |                                        | 214     |   |      |   | 197     |  
|(Increase) Decrease in Other Assets                                               |  |                                        | (184    | ) |      |   | 124     |  
|(Decrease) Increase in Accrued Interest Payable                                   |  |                                        | (88     | ) |      |   | 12      |  
|(Decrease) Increase in Other Liabilities                                          |  |                                        | (18     | ) |      |   | 1,232   |  
|                                                                                  |  |                                        |         |   |      |   |         |  
|Net Cash Provided by Operating Activities                                         |  |                                        | 2,376   |   |      |   | 3,653   |  
|                                                                                  |  |                                        |         |   |      |   |         |  
|                                                                                  |  |                                       
|Cash Flows from Investing Activities                                              |  |                                        |         |   |      |   |         |  
|Investment in Certificates of Deposit                                             |  |                                        | (1,666  | ) |      |   | (1,314  | )
|Purchase of Securities Available-for-Sale                                         |  |                                        | (21,991 | ) |      |   | (22,069 | )
|Purchase of Securities Held-to-Maturity                                           |  |                                        | (5,601  | ) |      |   | (45,787 | )
|Proceeds from Maturities of Certificates of Deposit                               |  |                                        | 1,368   |   |      |   | 1,803   |  
|Proceeds from Maturities of Securities Available-for-Sale                         |  |                                        | 34,654  |   |      |   | 37,275  |  
|Proceeds from Maturities of Securities Held-to-Maturity                           |  |                                        | 27,002  |   |      |   | 15,523  |  
|Proceeds from Sales of Securities Available-for-Sale                              |  |                                        | 1,849   |   |      |   |        |  
|Net Increase in Loans Receivable                                                  |  |                                        | (34,551 | ) |      |   | (9,861  | )
|Proceeds from Sales of Loans Held for Investing                                   |  |                                        | 861     |   |      |   | 1,045   |  
|Insurance Proceeds - Property Damage                                              |  |                                        | 42      |   |      |   |        |  
|Purchase of Property and Equipment                                                |  |                                        | (246    | ) |      |   | (114    | )
|Proceeds from Sale of Property and Equipment                                      |  |                                        |        |   |      |   | 15      |  
|Net (Increase) Decrease in Investment in Federal Home Loan Bank Stock             |  |                                        | (5      | ) |      |   | 205     |  
|                                                                                  |  |                                        |         |   |      |   |         |  
|Net Cash Provided by (Used in) Investing Activities                               |  |                                        | 1,716   |   |      |   | (23,279 | )
|                                                                                  |  |                                        |         |   |      |   |         |  



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|                                                               |  |                                        |         |   |      |   |        |  
|-------------------------------------------------------------- |  | -------------------------------------- | ------- | - | ---- | - | ------ | -
|                                                               |  | For the Nine MonthsEnded September 30, |        
|                                                               |  | 2009                                   |         |   | 2008 |  
|                                                               |  | (In Thousands)                         |        
|                                                               |  |                                       
|Cash Flows from Financing Activities                           |  |                                        |         |   |      |   |        |  
|Increase in Deposits                                           |  |                                        | 26,020  |   |      |   | 5,454  |  
|Increase in Advances by Borrowers for Taxes and Insurance      |  |                                        | 541     |   |      |   | 266    |  
|(Decrease) Increase in Borrowings                              |  |                                        | (15,142 | ) |      |   | 16,292 |  
|Stock Purchased for RRP                                        |  |                                        |        |   |      |   | (3,041 | )
|Purchase of Treasury stock                                     |  |                                        | (9,356  | ) |      |   | (3,071 | )
|                                                               |  |                                        |         |   |      |   |        |  
|                                                               |  |                                       
|Net Cash Provided by Financing Activities                      |  |                                        | 2,063   |   |      |   | 15,900 |  
|                                                               |  |                                        |         |   |      |   |        |  
|                                                               |  |                                       
|Net Increase (Decrease) in Cash and Cash Equivalents           |  |                                        | 6,155   |   |      |   | (3,726 | )
|                                                               |  |                                       
|Cash and Cash Equivalents, Beginning of Year                   |  |                                        | 4,974   |   |      |   | 11,648 |  
|                                                               |  |                                        |         |   |      |   |        |  
|                                                               |  |                                       
|Cash and Cash Equivalents, End of Year                         |  | $                                      | 11,129  |   |      | $ | 7,922  |  
|                                                               |  |                                        |         |   |      |   |        |  
|                                                               |  |                                       
|Supplemental Disclosure of Cash Flow Information               |  |                                        |         |   |      |   |        |  
|Cash Paid During the Year for:                                 |  |                                        |         |   |      |   |        |  
|Interest                                                       |  | $                                      | 4,830   |   |      | $ | 4,361  |  
|                                                               |  |                                        |         |   |      |   |        |  
|                                                               |  |                                       
|Income Taxes                                                   |  | $                                      | 2,098   |   |      | $ | 654    |  
|                                                               |  |                                        |         |   |      |   |        |  
|                                                               |  |                                       
|Loans Transferred to Other Real Estate Owned During the Period |  | $                                      | 553     |   |      | $ |       |  
|                                                               |  |                                        |         |   |      |   |        |  



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LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1  SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The accompanying unaudited financial statements of the Company were prepared in accordance with instructions for Form 10-Q and Regulation S-X
and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with generally accepted accounting principles. However, in the opinion of management, all
adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three month and nine month periods ended September 30, 2009, are not
necessarily indicative of the results which may be expected for the entire fiscal year.

NATURE OF OPERATIONS

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

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

SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK

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

INVESTMENT SECURITIES

Securities are being accounted for in accordance with FASB Accounting Standards Codification (ASC) 320-10, Investments  Debt and Equity Securities.FASB ASC 320-10 requires the
classification of securities into one of three categories: Trading, Available-for-Sale, or Held-to-Maturity. Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates this classification
periodically.

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

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

The Company held no trading securities as of September 30, 2009 or December 31, 2008.

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

LOANS

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



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LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)



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

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

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

ALLOWANCE FOR LOAN LOSSES

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

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

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

LOANS HELD-FOR-SALE

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

Student loans are held for investment purposes as long as the student is still in school. In accordance with the Companys agreement with the Student Loan Marketing Association (Sallie Mae), these loans are transferred to
the held-for-sale category and are sold once the student has gone into repayment status.

LOAN FEES, LOAN COSTS,
DISCOUNTS AND PREMIUMS

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

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

INCOME TAXES

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



10



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LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)



COMPREHENSIVE EARNINGS

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

USE OF ESTIMATES

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

NOTE 2  SECURITIES

A summary of securities classified as
available-for-sale at September 30, 2009 and December 31, 2008, with gross unrealized gains and losses, is as follows:



|                                       |  |                    |        |                      |   |                       |  |                     |   |  |   |       
|-------------------------------------- |  | ------------------ | ------ | -------------------- | - | --------------------- |  | ------------------- | - |  | - | ------
|                                       |  | September 30, 2009
|                                       |  | AmortizedCost      |        | GrossUnrealizedGains |   | GrossUnrealizedLosses |  | EstimatedFair Value
|                                       |  | (in thousands)    
|Securities Available-for-Sale          |  |                    |       
|Mortgage-Backed Securities             |  |                    |        |                      |   |                       |  |                     |   |  |   |       
|GNMA                                   |  | $                  | 9,345  |                      | $ | 491                   |  | $                   |  |  | $ | 9,836 
|FNMA                                   |  |                    | 19,059 |                      |   | 924                   |  |                     |  |  |   | 19,983
|FHLMC                                  |  |                    | 8,700  |                      |   | 484                   |  |                     |  |  |   | 9,184 
|                                       |  |                    |        |                      |   |                       |  |                     |   |  |   |       
|Total Mortgage-Backed Securities       |  |                    | 37,104 |                      |   | 1,899                 |  |                     |  |  |   | 39,003
|U.S. Government and Agency Obligations |  |                    | 28,296 |                      |   | 449                   |  |                     |  |  |   | 28,745
|                                       |  |                    |        |                      |   |                       |  |                     |   |  |   |       
|Total Securities Available-for-Sale    |  | $                  | 65,400 |                      | $ | 2,348                 |  | $                   |  |  | $ | 67,748
|                                       |  |                    |        |                      |   |                       |  |                     |   |  |   |       
|                                       | 
|                                       |  | December 31, 2008 
|                                       |  | AmortizedCost      |        | GrossUnrealizedGains |   | GrossUnrealizedLosses |  | EstimatedFair Value
|                                       |  | (in thousands)    
|Securities Available-for-Sale          |  |                    |       
|Mortgage-Backed Securities             |  |                    |        |                      |   |                       |  |                     |   |  |   |       
|GNMA                                   |  | $                  | 15,682 |                      | $ | 427                   |  | $                   |  |  | $ | 16,109
|FNMA                                   |  |                    | 25,750 |                      |   | 727                   |  |                     |  |  |   | 26,477
|FHLMC                                  |  |                    | 11,228 |                      |   | 345                   |  |                     |  |  |   | 11,573
|                                       |  |                    |        |                      |   |                       |  |                     |   |  |   |       
|Total Mortgage-Backed Securities       |  |                    | 52,660 |                      |   | 1,499                 |  |                     |  |  |   | 54,159
|U.S. Government and Agency Obligations |  |                    | 25,405 |                      |   | 527                   |  |                     |  |  |   | 25,932
|                                       |  |                    |        |                      |   |                       |  |                     |   |  |   |       
|Total Securities Available-for-Sale    |  | $                  | 78,065 |                      | $ | 2,026                 |  | $                   |  |  | $ | 80,091
|                                       |  |                    |        |                      |   |                       |  |                     |   |  |   |       



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LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)



A summary of securities classified as held-to-maturity at September, 2009 and
December 31, 2008, with gross unrealized gains and losses, is as follows:



|                                       |  |                    |         |                      |   |                       |  |   |                     |   |  |   |        
|-------------------------------------- |  | ------------------ | ------- | -------------------- | - | --------------------- |  | - | ------------------- | - |  | - | -------
|                                       |  | September 30, 2009
|                                       |  | AmortizedCost      |         | GrossUnrealizedGains |   | GrossUnrealizedLosses |  |   | EstimatedFair Value
|                                       |  | (in thousands)    
|Securities Held-to-Maturity            |  |                    |        
|Mortgage-Backed Securities             |  |                    |         |                      |   |                       |  |   |                     |   |  |   |        
|GNMA                                   |  | $                  | 13,687  |                      | $ | 320                   |  | $ |                    |   |  | $ | 14,007 
|FNMA                                   |  |                    | 52,566  |                      |   | 2,758                 |  |   | (1                  | ) |  |   | 55,323 
|FHLMC                                  |  |                    | 31,426  |                      |   | 1,898                 |  |   |                    |   |  |   | 33,324 
|                                       |  |                    |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Mortgage-Backed Securities       |  |                    | 97,679  |                      |   | 4,976                 |  |   | (1                  | ) |  |   | 102,654
|U.S. Government and Agency Obligations |  |                    | 1,500   |                      |   | 1                     |  |   |                    |   |  |   | 1,501  
|Municipal Bonds                        |  |                    |         |                      |   |                       |  |   |                     |   |  |   |        
|Revenue Bonds                          |  |                    | 286     |                      |   | 16                    |  |   |                    |   |  |   | 302    
|General Obligation Bonds               |  |                    | 1,065   |                      |   | 20                    |  |   |                    |   |  |   | 1,085  
|                                       |  |                    |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Municipal Obligations            |  |                    | 1,351   |                      |   | 36                    |  |   |                    |   |  |   | 1,387  
|                                       |  |                    |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Securities Held-to-Maturity      |  | $                  | 100,530 |                      | $ | 5,013                 |  | $ | (1                  | ) |  | $ | 105,542
|                                       |  |                    |         |                      |   |                       |  |   |                     |   |  |   |        
|                                       | 
|                                       |  | December 31, 2008 
|                                       |  | AmortizedCost      |         | GrossUnrealizedGains |   | GrossUnrealizedLosses |  |   | EstimatedFair Value
|                                       |  | (in thousands)    
|Securities Held-to-Maturity            |  |                    |        
|Mortgage-Backed Securities             |  |                    |         |                      |   |                       |  |   |                     |   |  |   |        
|GNMA                                   |  | $                  | 11,695  |                      | $ | 220                   |  | $ | (7                  | ) |  | $ | 11,908 
|FNMA                                   |  |                    | 65,818  |                      |   | 2,052                 |  |   | (17                 | ) |  |   | 67,853 
|FHLMC                                  |  |                    | 39,809  |                      |   | 1,487                 |  |   | (7                  | ) |  |   | 41,289 
|                                       |  |                    |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Mortgage-Backed Securities       |  |                    | 117,322 |                      |   | 3,759                 |  |   | (31                 | ) |  |   | 121,050
|U.S. Government and Agency Obligations |  |                    | 3,000   |                      |   | 1                     |  |   |                    |   |  |   | 3,001  
|Municipal Bonds                        |  |                    |         |                      |   |                       |  |   |                     |   |  |   |        
|Revenue Bonds                          |  |                    | 550     |                      |   | 23                    |  |   |                    |   |  |   | 573    
|General Obligation Bonds               |  |                    | 2,557   |                      |   | 74                    |  |   |                    |   |  |   | 2,631  
|                                       |  |                    |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Municipal Obligations            |  |                    | 3,107   |                      |   | 97                    |  |   |                    |   |  |   | 3,204  
|                                       |  |                    |         |                      |   |                       |  |   |                     |   |  |   |        
|Total Securities Held-to-Maturity      |  | $                  | 123,429 |                      | $ | 3,857                 |  | $ | (31                 | ) |  | $ | 127,255
|                                       |  |                    |         |                      |   |                       |  |   |                     |   |  |   |        

The amortized cost and fair value of available-for-sale and held-to-maturity
securities by contractual maturity at September 30, 2009, are as follows. Actual maturities will differ from contractual maturities because borrowers have the right to put or prepay obligations with or without call or prepayment penalties.



|                     |  |                               |        |                             |   |               |  |                     |         |  |   |        
|-------------------- |  | ----------------------------- | ------ | --------------------------- | - | ------------- |  | ------------------- | ------- |  | - | -------
|                     |  | Available-for-Sale Securities |        | Held-to-Maturity Securities
|                     |  | AmortizedCost                 |        | EstimatedFair Value         |   | AmortizedCost |  | EstimatedFair Value
|                     |  | (in thousands)               
|Amounts Maturing in: |  |                               |       
|Within One Year      |  | $                             |       |                             | $ |              |  | $                   |        |  | $ |       
|One to Five Years    |  |                               | 36,328 |                             |   | 37,029        |  |                     | 7,192   |  |   | 7,406  
|Five to Ten Years    |  |                               | 5,349  |                             |   | 5,680         |  |                     | 13,095  |  |   | 13,861 
|Over Ten Years       |  |                               | 23,723 |                             |   | 25,039        |  |                     | 80,243  |  |   | 84,275 
|                     |  |                               |        |                             |   |               |  |                     |         |  |   |        
|                     |  | $                             | 65,400 |                             | $ | 67,748        |  | $                   | 100,530 |  | $ | 105,542
|                     |  |                               |        |                             |   |               |  |                     |         |  |   |        



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LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)



Information pertaining to securities with gross unrealized losses at September 30,
2009 and December 31, 2008, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows:



|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|-------------------------------------- |  | -------------------------- | -- | ----------------------------- | - | --------------------- |  | ------------------ | - |  | - | --
|                                       |  | Available-for-Sale        
|                                       |  | Losses Less Than 12 Months |    | Losses Greater Than 12 Months
|                                       |  | GrossUnrealizedLosses      |    | EstimatedFairValue            |   | GrossUnrealizedLosses |  | EstimatedFairValue
|                                       |  | (in thousands)            
|September 30, 2009                     |  |                            |   
|Mortgage-Backed Securities             |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|GNMA                                   |  | $                          |   |                               | $ |                      |  | $                  |  |  | $ |  
|FNMA                                   |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|FHLMC                                  |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total Mortgage-Backed Securities       |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|U.S. Government and Agency Obligations |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total                                  |  | $                          |   |                               | $ |                      |  | $                  |  |  | $ |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|                                       | 
|December 31, 2008                      |  |                            |   
|Mortgage-Backed Securities             |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|GNMA                                   |  | $                          |   |                               | $ |                      |  | $                  |  |  | $ |  
|FNMA                                   |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|FHLMC                                  |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total Mortgage-Backed Securities       |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|U.S. Government and Agency Obligations |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total                                  |  | $                          |   |                               | $ |                      |  | $                  |  |  | $ |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|                                       | 
|                                       |  | Held-to-Maturity          
|                                       |  | Losses Less Than 12 Months |    | Losses Greater Than 12 Months
|                                       |  | GrossUnrealizedLosses      |    | EstimatedFairValue            |   | GrossUnrealizedLosses |  | EstimatedFairValue
|                                       |  | (in thousands)            
|September 30, 2009                     |  |                            |   
|Mortgage-Backed Securities             |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|GNMA                                   |  | $                          |   |                               | $ |                      |  | $                  |  |  | $ |  
|FNMA                                   |  |                            |   |                               |   |                      |  |                    | 1 |  |   | 29
|FHLMC                                  |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total Mortgage-Backed Securities       |  |                            |   |                               |   |                      |  |                    | 1 |  |   | 29
|U.S. Government and Agency Obligations |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total                                  |  | $                          |   |                               | $ |                      |  | $                  | 1 |  | $ | 29
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|                                       | 
|December 31, 2008                      |  |                            |   
|Mortgage-Backed Securities             |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|GNMA                                   |  | $                          | 7  |                               | $ | 325                   |  | $                  |  |  | $ |  
|FNMA                                   |  |                            | 17 |                               |   | 1,874                 |  |                    |  |  |   |  
|FHLMC                                  |  |                            | 7  |                               |   | 996                   |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total Mortgage-Backed Securities       |  |                            | 31 |                               |   | 3,195                 |  |                    |  |  |   |  
|U.S. Government and Agency Obligations |  |                            |   |                               |   |                      |  |                    |  |  |   |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   
|Total                                  |  | $                          | 31 |                               | $ | 3,195                 |  | $                  |  |  | $ |  
|                                       |  |                            |    |                               |   |                       |  |                    |   |  |   |   

The unrealized losses on the Companys investments were caused by interest rate
increases. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be maturity,
the Company did not consider these investments to be other-than-temporarily impaired at September 30, 2009 or December 31, 2008.



13



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##### Table of Contents

LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)



NOTE 3  LOANS

The following table summarizes the composition of our loan receivable:



|                                                |  |                    |         |   |                   |   |         |  
|----------------------------------------------- |  | ------------------ | ------- | - | ----------------- | - | ------- | -
|                                                |  | September 30, 2009 |         |   | December 31, 2008 |  
|                                                |  | (in thousands)     |        
|Loans Secured by First Mortgages on Real Estate |  |                    |         |   |                   |   |         |  
|1-4 Family Residential                          |  | $                  | 80,185  |   |                   | $ | 51,547  |  
|Multi-family Residential                        |  |                    | 9,009   |   |                   |   | 7,859   |  
|Non-residential                                 |  |                    | 40,773  |   |                   |   | 39,700  |  
|Land                                            |  |                    | 977     |   |                   |   | 1,095   |  
|                                                |  |                    |         |   |                   |   |         |  
|Total First Mortgages Secured by Real Estate    |  |                    | 130,944 |   |                   |   | 100,201 |  
|                                                |  |                   
|Consumer and Other Loans                        |  |                    |         |   |                   |   |         |  
|Student Loan                                    |  |                    | 538     |   |                   |   | 1,398   |  
|Loans Secured by Deposits                       |  |                    | 441     |   |                   |   | 283     |  
|Home Equity Loans and Lines                     |  |                    | 13,466  |   |                   |   | 10,297  |  
|Other                                           |  |                    | 841     |   |                   |   | 1,368   |  
|                                                |  |                    |         |   |                   |   |         |  
|Total Consumer and Other Loans                  |  |                    | 15,286  |   |                   |   | 13,346  |  
|                                                |  |                   
|Less:                                           |  |                    |         |   |                   |   |         |  
|Allowance for Loan Losses                       |  |                    | (1,682  | ) |                   |   | (1,952  | )
|Net Deferred Loan Origination Fees/Costs        |  |                    | (292    | ) |                   |   | (359    | )
|                                                |  |                    |         |   |                   |   |         |  
|Total Loans, Net                                |  | $                  | 144,256 |   |                   | $ | 111,236 |  
|                                                |  |                    |         |   |                   |   |         |  

Our loan portfolio does not contain any loans that would be considered subprime,
alt-a, no-doc, or no-interest.

An analysis of the allowance for loan losses is as follows:



|                                     |  |                                    |       |   |                             |   |       |  
|------------------------------------ |  | ---------------------------------- | ----- | - | --------------------------- | - | ----- | -
|                                     |  | Nine MonthsEndedSeptember 30, 2009 |       |   | Year EndedDecember 31, 2008 |  
|                                     |  | (in thousands)                     |      
|                                     |  |                                   
|Balance, Beginning of Period         |  | $                                  | 1,952 |   |                             | $ | 1,999 |  
|Provision (Recovery) for Loan Losses |  |                                    | 126   |   |                             |   | (43   | )
|Loans Charged-Off                    |  |                                    | (396  | ) |                             |   | (4    | )
|                                     |  |                                    |       |   |                             |   |       |  
|Balance, End of Period               |  | $                                  | 1,682 |   |                             | $ | 1,952 |  
|                                     |  |                                    |       |   |                             |   |       |  



14



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##### Table of Contents

LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)



For all periods presented below, nonaccrual loans are reported exclusive of the
allowance for loan loss in accordance with generally accepted accounting principles of the United States of the America. Previously, for reports filed with respect to periods which ended prior to June 30, 2009, the Company reported its
nonaccrual loans net of the allowance for loan losses. Accordingly, the non-performing loan ratios and performance indicators previously included in the Companys reports at and for the periods ended March 31, 2009 and December 31,
2008 are not directly comparable to the information included herein.



|                                                                                         |  |           |       |   |           |   |       |           |  |   |            |   |  |   |      |  
|---------------------------------------------------------------------------------------- |  | --------- | ----- | - | --------- | - | ----- | --------- |  | - | ---------- | - |  | - | ---- | -
|                                                                                         |  | 9/30/2009 |       |   | 6/30/2009 |   |       | 3/31/2009 |  |   | 12/31/2008 |  
|                                                                                         |  |           |       |  
|Nonperforming Assets:                                                                    |  |           |       |   |           |   |       |           |  |   |            |   |  |   |      |  
|Non-Accruing Loans                                                                       |  |           |       |   |           |   |       |           |  |   |            |   |  |   |      |  
|One-to-Four Family Residential                                                           |  | $         | 1,168 |   |           | $ | 1,099 |           |  | $ | 1,104      |   |  | $ | 52   |  
|Multi-Family Residential, Commercial Real Estate & Land                                  |  |           |      |   |           |   | 950   |           |  |   | 950        |   |  |   |     |  
|Consumer and Other                                                                       |  |           | 658   |   |           |   | 599   |           |  |   | 547        |   |  |   | 468  |  
|                                                                                         |  |           |       |   |           |   |       |           |  |   |            |   |  |   |      |  
|Total Non-Accruing Loans                                                                 |  | $         | 1,826 |   |           | $ | 2,648 |           |  | $ | 2,601      |   |  | $ | 520  |  
|                                                                                         |  |           |       |   |           |   |       |           |  |   |            |   |  |   |      |  
|                                                                                         |  |           |       |  
|Accruing Loans 90 Days or More Past Due:                                                 |  |           |       |   |           |   |       |           |  |   |            |   |  |   |      |  
|One-to-Four Family Residential                                                           |  |           |      |   |           |   |      |           |  |   |           |   |  |   |     |  
|Multi-Family Residential, Commercial Real Estate & Land                                  |  |           |      |   |           |   |      |           |  |   |           |   |  |   |     |  
|Consumer and Other                                                                       |  |           |      |   |           |   |      |           |  |   |           |   |  |   |     |  
|                                                                                         |  |           |       |   |           |   |       |           |  |   |            |   |  |   |      |  
|Total Accruing Loans 90 Days or More Past Due                                            |  |           |      |   |           |   |      |           |  |   |           |   |  |   |     |  
|                                                                                         |  |           |       |   |           |   |       |           |  |   |            |   |  |   |      |  
|                                                                                         |  |           |       |  
|Total Nonperforming Loans                                                                |  | $         | 1,826 |   |           | $ | 2,648 |           |  | $ | 2,601      |   |  | $ | 520  |  
|                                                                                         |  |           |       |   |           |   |       |           |  |   |            |   |  |   |      |  
|                                                                                         |  |           |       |  
|Real Estate Owned, Net                                                                   |  |           | 553   |   |           |   |      |           |  |   |           |   |  |   |     |  
|                                                                                         |  |           |       |   |           |   |       |           |  |   |            |   |  |   |      |  
|                                                                                         |  |           |       |  
|Total Nonperforming Assets                                                               |  | $         | 2,379 |   |           | $ | 2,648 |           |  | $ | 2,601      |   |  | $ | 520  |  
|                                                                                         |  |           |       |   |           |   |       |           |  |   |            |   |  |   |      |  
|                                                                                         |  |           |       |  
|Troubled Debt Restructurings                                                             |  |           | 0     |   |           |   | 0     |           |  |   | 0          |   |  |   | 0    |  
|                                                                                         |  |           |       |   |           |   |       |           |  |   |            |   |  |   |      |  
|                                                                                         |  |           |       |  
|Total Nonperforming Loans as a Percent of Total Loans                                    |  |           | 1.25  | % |           |   | 1.93  | %         |  |   | 2.12       | % |  |   | 0.46 | %
|                                                                                         |  |           |       |  
|Total Nonperforming Loans as a Percent of Total Assets                                   |  |           | 0.55  | % |           |   | 0.82  | %         |  |   | 0.79       | % |  |   | 0.16 | %
|                                                                                         |  |           |       |  
|Total Nonperforming Assets and Troubled Debt Restructurings as a Percent of Total Assets |  |           | 0.72  | % |           |   | 0.82  | %         |  |   | 0.79       | % |  |   | 0.16 | %

At September 30, 2009, the Companys nonaccrual loans included two loans to
a single borrower with an aggregate balance of $1,247,000, which are secured by a single family residence. During the second quarter of 2009, we determined that these loans were impaired based on an updated fair market appraisal of the collateral.
Accordingly, we allocated $212,000 of our allowance for loan losses to these loans. Management believes that the net book value of $1.0 million properly reflects the value of its investment in these loans. During the third quarter of 2009, the Bank
classified a $950,000 commercial real estate construction loan as an in-substance foreclosure. This loan represents our participation interest in a $170 million mixed-use property in Baton Rouge, Louisiana. The fair market value of our
investment was determined to be $553,000, resulting in a charge-off against our allowance for loan losses of $396,000.

As of
September 30, 2009 and December 31, 2008, the Company did not hold any loans classified as troubled debt restructurings.



15



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##### Table of Contents

LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)



NOTE 4  EARNINGS PER COMMON SHARE

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



|                                                                   |  |                              |            |   |                             |   |           |      |  |   |           |   |  |   |           |  
|------------------------------------------------------------------ |  | ---------------------------- | ---------- | - | --------------------------- | - | --------- | ---- |  | - | --------- | - |  | - | --------- | -
|                                                                   |  | Three Months Ended Sept. 30, |            |   | Nine Months Ended Sept. 30, |  
|                                                                   |  | 2009                         |            |   | 2008                        |   |           | 2009 |  |   | 2008      |  
|                                                                   |  |                              |            |  
|Net Income                                                         |  | $                            | 564,000    |   |                             | $ | 749,000   |      |  | $ | 1,866,000 |   |  | $ | 2,007,000 |  
|                                                                   |  |                              |            |   |                             |   |           |      |  |   |           |   |  |   |           |  
|                                                                   |  |                              |            |  
|Weighted Average Shares Issued                                     |  |                              | 6,345,732  |   |                             |   | 6,345,732 |      |  |   | 6,345,732 |   |  |   | 6,345,732 |  
|Weighted Average Unearned ESOP Shares                              |  |                              | (469,586   | ) |                             |   | (494,968  | )    |  |   | (469,586  | ) |  |   | (494,968  | )
|Weighted Average Unearned RRP Shares                               |  |                              | (209,888   | ) |                             |   | (182,678  | )    |  |   | (216,970  | ) |  |   | (79,733   | )
|Weighted Average Treasury Shares                                   |  |                              | (1,071,859 | ) |                             |   | (56,565   | )    |  |   | (897,254  | ) |  |   | (18,993   | )
|                                                                   |  |                              |            |   |                             |   |           |      |  |   |           |   |  |   |           |  
|                                                                   |  |                              |            |  
|Weighted Average Shares Outstanding for Basic Earnings per Share   |  |                              | 4,594,399  |   |                             |   | 5,611,521 |      |  |   | 4,761,922 |   |  |   | 5,752,038 |  
|                                                                   |  |                              |            |   |                             |   |           |      |  |   |           |   |  |   |           |  
|                                                                   |  |                              |            |  
|Earnings per Share, Basic                                          |  | $                            | 0.12       |   |                             | $ | 0.13      |      |  | $ | 0.39      |   |  | $ | 0.35      |  
|                                                                   |  |                              |            |   |                             |   |           |      |  |   |           |   |  |   |           |  
|                                                                   |  |                              |            |  
|Weighted Average Shares Outstanding for Basic Earnings per Share   |  |                              | 4,594,399  |   |                             |   | 5,611,521 |      |  |   | 4,761,922 |   |  |   | 5,752,038 |  
|Effect of Dilutive Securities                                      |  |                              | 74,359     |   |                             |   | 43,815    |      |  |   | 63,993    |   |  |   | 25,650    |  
|                                                                   |  |                              |            |   |                             |   |           |      |  |   |           |   |  |   |           |  
|Weighted Average Shares Outstanding for Diluted Earnings per Share |  |                              | 4,668,758  |   |                             |   | 5,655,336 |      |  |   | 4,825,915 |   |  |   | 5,777,688 |  
|                                                                   |  |                              |            |   |                             |   |           |      |  |   |           |   |  |   |           |  
|                                                                   |  |                              |            |  
|Earnings per Shares, Diluted                                       |  | $                            | 0.12       |   |                             | $ | 0.13      |      |  | $ | 0.39      |   |  | $ | 0.35      |  
|                                                                   |  |                              |            |   |                             |   |           |      |  |   |           |   |  |   |           |  

NOTE 5  REGULATORY CAPITAL

The actual and required regulatory capital amounts and ratios applicable to the Bank at September 30, 2009 and December 31, 2008,
are presented in the following tables:



|                          |  |                        |        |       |                              |   |        |                                                                       |        |  |      |        |  |       |        |  |       |  
|------------------------- |  | ---------------------- | ------ | ----- | ---------------------------- | - | ------ | --------------------------------------------------------------------- | ------ |  | ---- | ------ |  | ----- | ------ |  | ----- | -
|                          |  | Actual                 |        |       | Minimum for AdequacyPurposes |   |        | Minimum to be WellCapitalized UnderPrompt CorrectiveAction Provisions |       
|                          |  | Amount                 |        | Ratio |                              |   | Amount |                                                                       | Ratio  |  |      | Amount |  | Ratio |       
|                          |  | (Dollars in Thousands) |       
|September 30, 2009        |  |                        |        |       |                              |   |        |                                                                       |        |  |      |        |  |       |        |  |       |  
|Tangible Capital          |  | $                      | 57,388 |       | 18.22                        | % |        | $                                                                     | 4,724  |  | 1.50 | %      |  |       | N/A    |  | N/A   |  
|Core/Leverage Capital     |  |                        | 57,388 |       | 18.22                        | % |        |                                                                       | 9,448  |  | 3.00 | %      |  | $     | 15,747 |  | 5.00  | %
|Tier 1 Risk-Based Capital |  |                        | 57,327 |       | 43.81                        | % |        |                                                                       | 5,235  |  | 4.00 | %      |  |       | 7,852  |  | 6.00  | %
|Total Risk-Based Capital  |  | $                      | 58,539 |       | 44.73                        | % |        | $                                                                     | 10,469 |  | 8.00 | %      |  | $     | 13,087 |  | 10.00 | %
|                          |  |                        |        |       |                              |  
|December 31, 2008         |  |                        |        |       |                              |   |        |                                                                       |        |  |      |        |  |       |        |  |       |  
|Tangible Capital          |  | $                      | 55,816 |       | 18.35                        | % |        | $                                                                     | 4,562  |  | 1.50 | %      |  |       | N/A    |  | N/A   |  
|Core/Leverage Capital     |  |                        | 55,816 |       | 18.35                        | % |        |                                                                       | 9,124  |  | 3.00 | %      |  | $     | 15,207 |  | 5.00  | %
|Tier 1 Risk-Based Capital |  |                        | 55,755 |       | 47.99                        | % |        |                                                                       | 4,647  |  | 4.00 | %      |  |       | 6,970  |  | 6.00  | %
|Total Risk-Based Capital  |  | $                      | 57,209 |       | 49.24                        | % |        | $                                                                     | 9,294  |  | 8.00 | %      |  | $     | 11,617 |  | 10.00 | %



16



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##### Table of Contents

LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)



The Banks capital under generally accepted accounting principles
(GAAP) is reconciled as follows:



|                                                  |  |                    |        |   |                   |   |        |  
|------------------------------------------------- |  | ------------------ | ------ | - | ----------------- | - | ------ | -
|                                                  |  | September 30, 2009 |        |   | December 31, 2009 |  
|                                                  |  | (In Thousands)     |       
|Capital Under GAAP                                |  | $                  | 58,690 |   |                   | $ | 56,884 |  
|Unrealized Gains on Available-for-Sale Securities |  |                    | (1,302 | ) |                   |   | (1,068 | )
|                                                  |  |                    |        |   |                   |   |        |  
|Tier 1 Capital                                    |  |                    | 57,388 |   |                   |   | 55,816 |  
|                                                  |  |                   
|Allowance for Loan Losses                         |  |                    | 1,212  |   |                   |   | 1,454  |  
|Recourse Obligations                              |  |                    | (61    | ) |                   |   | (61    | )
|                                                  |  |                    |        |   |                   |   |        |  
|Total Risk-Based Capital                          |  | $                  | 58,539 |   |                   | $ | 57,209 |  
|                                                  |  |                    |        |   |                   |   |        |  

NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS

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

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

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



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



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



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



17



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##### Table of Contents

LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)



The following table presents the Companys assets and liabilities measured at fair
value on a recurring basis at September 30, 2009 and December 31, 2008.



|                                   |  |                             |        |                         |   |                |  |   |        |  |   |  
|---------------------------------- |  | --------------------------- | ------ | ----------------------- | - | -------------- |  | - | ------ |  | - | -
|Description                        |  | Balance as ofSept. 30, 2009 |        | Fair Value Measurements
|                                   |  | (Level 1)                   |        | (Level 2)               |   | (Level 3)     
|                                   |  |                             |        |                         |   | (In Thousands) |  |  
|Available-for-Sale Securities      |  |                             |        |                         |   |                |  |   |        |  |   |  
|Mortgage-Backed Securities         |  | $                           | 39,003 |                         | $ |               |  | $ | 39,003 |  | $ | 
|US Government & Agency Obligations |  |                             | 28,745 |                         |   |               |  |   | 28,745 |  |   | 
|                                   |  |                             |        |                         |   |                |  |   |        |  |   |  
|                                   |  |                             |        |                        
|Total                              |  | $                           | 67,748 |                         | $ |               |  | $ | 67,748 |  | $ | 
|                                   |  |                             |        |                         |   |                |  |   |        |  |   |  
|                                   |  |                            
|Description                        |  | Balance as ofDec. 31, 2008  |        | Fair Value Measurements
|                                   |  | (Level 1)                   |        | (Level 2)               |   | (Level 3)     
|                                   |  |                             |        |                         |   | (In Thousands) |  |  
|Available-for-Sale Securities      |  |                             |        |                         |   |                |  |   |        |  |   |  
|Mortgage-Backed Securities         |  | $                           | 54,159 |                         | $ |               |  | $ | 54,159 |  | $ | 
|US Government & Agency Obligations |  |                             | 25,932 |                         |   |               |  |   | 25,932 |  |   | 
|                                   |  |                             |        |                         |   |                |  |   |        |  |   |  
|                                   |  |                             |        |                        
|Total                              |  | $                           | 80,091 |                         | $ |               |  | $ | 80,091 |  | $ | 
|                                   |  |                             |        |                         |   |                |  |   |        |  |   |  

The Company did not record any liabilities at fair market value for which measurement
of the fair value was made on a recurring basis at September 30, 2009 or December 31, 2008.

The following table
presents the Companys assets and liabilities measured at fair value on a non-recurring basis at September 30, 2009 and December 31, 2008.



|                        |  |                             |       |                         |   |                |  |   |       |  |   |  
|----------------------- |  | --------------------------- | ----- | ----------------------- | - | -------------- |  | - | ----- |  | - | -
|Description             |  | Balance as ofSept. 30, 2009 |       | Fair Value Measurements
|                        |  | (Level 1)                   |       | (Level 2)               |   | (Level 3)     
|                        |  |                             |       |                         |   | (In Thousands) |  |  
|Impaired Loans          |  | $                           | 1,226 |                         | $ |               |  | $ | 1,226 |  | $ | 
|Other Real Estate Owned |  |                             | 553   |                         |   |               |  |   | 553   |  |   | 
|                        |  |                             |       |                         |   |                |  |   |       |  |   |  
|                        |  |                             |       |                        
|Total                   |  | $                           | 1,779 |                         | $ |               |  | $ | 1,779 |  | $ | 
|                        |  |                             |       |                         |   |                |  |   |       |  |   |  
|                        |  |                            
|Description             |  | Balance as ofDec. 31, 2008  |       | Fair Value Measurements
|                        |  | (Level 1)                   |       | (Level 2)               |   | (Level 3)     
|                        |  |                             |       |                         |   | (In Thousands) |  |  
|Impaired Loans          |  | $                           | 169   |                         | $ |               |  | $ | 169   |  | $ | 
|Other Real Estate Owned |  |                             |      |                         |   |               |  |   |      |  |   | 
|                        |  |                             |       |                         |   |                |  |   |       |  |   |  
|                        |  |                             |       |                        
|Total                   |  | $                           | 169   |                         | $ |               |  | $ | 169   |  | $ | 
|                        |  |                             |       |                         |   |                |  |   |       |  |   |  

The Company did not record any liabilities at fair market value for which measurement
of the fair value was made on a non-recurring basis at September 30, 2009 or December 31, 2008.

FASB ASC 825,
Financial Instruments, requires disclosure of the fair value of financial instruments for which it is practical to estimate. Included in this disclosure are the methods and significant assumptions used to estimate the fair value of financial
instruments. A detailed description of the valuation methodologies used in estimating the fair value of the financial instruments can be found in the Companys Annual Report on Form 10-K for the year ended December 31, 2008.



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LOUISIANA BANCORP, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)



|                                   |  |                    |         |   |                   |   |         |                |  |   |            |   |  |   |         |  
|---------------------------------- |  | ------------------ | ------- | - | ----------------- | - | ------- | -------------- |  | - | ---------- | - |  | - | ------- | -
|                                   |  | September 30, 2009 |         |   | December 31, 2008 |  
|                                   |  | CarryingAmount     |         |   | Fair Value        |   |         | CarryingAmount |  |   | Fair Value |  
|                                   |  | (In Thousands)     |        
|Financial Assets                   |  |                    |         |   |                   |   |         |                |  |   |            |   |  |   |         |  
|Cash and Cash Equivalents          |  | $                  | 11,129  |   |                   | $ | 11,129  |                |  | $ | 4,974      |   |  | $ | 4,974   |  
|Certificates of Deposit            |  |                    | 1,723   |   |                   |   | 1,723   |                |  |   | 1,425      |   |  |   | 1,425   |  
|Securities                         |  |                    | 168,278 |   |                   |   | 173,290 |                |  |   | 203,520    |   |  |   | 207,346 |  
|                                   |  |                    |         |  
|Loans                              |  |                    | 145,938 |   |                   |   | 149,105 |                |  |   | 113,188    |   |  |   | 115,041 |  
|Less Allowance for Loan Losses     |  |                    | (1,682  | ) |                   |   | (1,682  | )              |  |   | (1,952     | ) |  |   | (1,952  | )
|                                   |  |                    |         |   |                   |   |         |                |  |   |            |   |  |   |         |  
|Loans, Net of Allowance            |  |                    | 144,256 |   |                   |   | 147,423 |                |  |   | 111,236    |   |  |   | 113,089 |  
|                                   |  |                    |         |  
|Federal Home Loan Bank Stock       |  |                    | 2,298   |   |                   |   | 2,298   |                |  |   | 2,293      |   |  |   | 2,293   |  
|                                   |  |                    |         |  
|Financial Liabilities              |  |                    |         |   |                   |   |         |                |  |   |            |   |  |   |         |  
|Deposits                           |  | $                  | 186,609 |   |                   | $ | 189,122 |                |  | $ | 160,589    |   |  | $ | 162,696 |  
|Borrowings                         |  |                    | 61,518  |   |                   |   | 64,844  |                |  |   | 76,660     |   |  |   | 80,070  |  
|                                   |  |                    |         |  
|Unrecognized Financial Instruments |  |                    |         |   |                   |   |         |                |  |   |            |   |  |   |         |  
|Commitments to Extend Credit       |  | $                  | 14,196  |   |                   | $ | 14,105  |                |  | $ | 10,875     |   |  | $ | 10,973  |  

NOTE 7  SUBSEQUENT EVENTS

In accordance with FASB ASC 855, Subsequent Events, the Company evaluates events and transactions that occur after the balance sheet
date for potential recognition in the financial statements. The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of September 30,
2009. In preparing these financial statements, the Company evaluated the events and transactions that occurred from September 30, 2009 through November 12, 2009, the date these financial statements were issued.



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##### Table of Contents

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

Forward-Looking Statements

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

General

The Company commenced operations as the parent holding company for the Bank on July 9, 2007 upon consummation of the Conversion. The Companys results of operations are primarily dependent on the results of the Bank, which now is
a wholly owned subsidiary of the Company. The Banks results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on its loan and investment portfolios and the cost of funds,
consisting of the interest paid on deposits and borrowings. Results of operations are also affected by provisions for, or recoveries from, the allowance for loan losses, fee income and other non-interest income and non-interest expense. Non-interest
expense principally consists of compensation and employee benefits, office occupancy and equipment expense, data processing, advertising and business promotion and other expense. Our results of operations are also significantly affected by general
economic and competitive conditions, particularly changes in interest rates, government policies and actions of regulatory authorities. Future changes in applicable law, regulations or government policies may materially impact our financial
conditions and results of operations.

Critical Accounting Policies

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

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

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



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##### Table of Contents

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

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

Comparison of Financial Condition at September 30, 2009 and December 31, 2008

Total assets
were $332.2 million at September 30, 2009, an increase of $4.8 million from December 31, 2008. Cash and cash equivalents were $11.1 million at September 30, 2009, an increase of $6.2 million from December 31, 2008. Our securities
available-for-sale and securities held-to-maturity decreased by a combined $35.2 million during the first nine months of 2009, due primarily to maturities of callable agency notes and increased prepayments on our mortgage-backed securities
portfolio. Total loans receivable were $144.3 million at September 30, 2009, an increase of $33.0 million, or 29.7%, from December 31, 2008. During the first nine months of 2009, our first mortgage loans secured by real estate increased by
$30.7 million, including a $28.6 million increase in first mortgage loans secured by one-to-four family residences. In addition, our home equity loans and lines of credit increased by $3.2 million, to $13.5 million, at
September 30, 2009.

At September 30, 2009, we had total non-performing assets of $2.4 million. During the first
nine months of 2009, two customer relationships with an aggregate balance of $1.8 million at September 30, 2009 were classified as non-performing. The first of these relationships consists of a first mortgage loan and a home equity line of
credit secured by a single-family residence located in our market area with an aggregate outstanding balance of $1.2 million at September 30, 2009. Both of these loans were placed in non-accrual status during the first quarter of 2009 and were
deemed impaired during the quarter ended June 30, 2009. We have commenced foreclosure proceedings with respect to the property securing these loans. During the second quarter of 2009, we allocated $212,000 of our allowance for loan losses to
these two loans. The second significant addition to our non-performing assets during 2009 is a $950,000 participation interest in a $170.0 million real estate construction loan secured by a mixed-use commercial and residential project located in
Baton Rouge, Louisiana. We participated in this loan as part of the Shared National Credit Program. This loan represents our only shared national credit. The loan was placed on non-accrual status during the first quarter of 2009 and deemed impaired
during the quarter ended June 30, 2009. During the third quarter of 2009, this loan was determined to be an in-substance foreclosure and our investment was classified as other real estate owned with a fair market value of $553,000.
At the time of reclassification, the Bank charged-off $396,000 against the allowance for loan losses allocated to this investment.

Total deposits were $186.6 million at September 30, 2009, an increase of $26.0 million from December 31, 2008. During this period, noninterest-bearing deposits increased by $3.2 million and interest-bearing deposits increased by
$22.8 million. Total borrowings decreased by $15.1 million during the first nine months of 2009, to $61.5 million at September 30, 2009. This decrease in total borrowings was primarily due to the repayment of $15.5 million in short-term FHLB
advances used to fund the purchase of mortgage backed securities during the fourth quarter of 2008.

During the nine month
period ended September 30, 2009, total shareholders equity decreased by $6.6 million to $79.1 million. This decrease was primarily due to the Companys acquisition of its common shares pursuant to its publicly announced
repurchase plans. During the first nine months of 2009, the Company repurchased 731,702 shares at an aggregate cost of $9.4 million. In addition, 43,941 shares held by the Companys Recognition and Retention Plan Trust became vested and
were released to participants accounts during the first nine months of 2009. The release of these shares decreased the balance of the associated contra equity account by $554,000 to $2.6 million at September 30, 2009. Net income of $1.9
million increased retained earnings to $37.0 million at September 30, 2009. Accumulated other comprehensive income was $1.6 million at September 30, 2009, an increase of $213,000 from December 31, 2008.



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Comparison of Our Operating Results for the Three Months and Nine Months Ended
September 30, 2009 and 2008

General. Net income for the quarter ended September 30, 2009 was
$564,000, a decrease of $185,000, or 24.7%, from the third quarter of 2008. An increase of $149,000 in net interest income between the respective three month periods was offset by an $85,000 increase in our provision for loan losses and a $233,000
increase in non-interest expense. The increase in non-interest expense is primarily attributed to overall higher levels of salaries and benefits, timing differences between our accruals of the Louisiana bank shares tax, and increases in our FDIC
insurance premiums. Net income for the nine months ended September 30, 2009 was $1.9 million, a decrease of $141,000 from the nine months ended September 30, 2008. Net interest income increased by $630,000 between the nine month periods
ended September 30, 2009 and September 30, 2008. The impact of this increase in net interest income was offset by a $165,000 increase in our provision for loan losses and a $539,000 increase in non-interest expense. The increase in
non-interest expense was primarily due to a $320,000 increase in salaries and benefits attributed to an increase in our staffing and a $177,000 increase in our FDIC insurance expense. The increase in our FDIC insurance expense between the respective
nine month periods ended September 30, 2009 and September 30, 2008, was due primarily to a $126,000 five basis point special assessment and a $41,000 increase attributed to growth in our deposit base, an increase in the annualized
assessment rate, and depletion of the one-time credit established in December 2006.



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##### Table of Contents

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



|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|----------------------------------------------------------------------- |  | -------------------------------- | ------- | -------- | ---- | ----------------- |  | ------ | -------------- |  | -------- | ------- | ----------------- | - | ----- |  | ------ | -
|                                                                        |  | Three months Ended September 30, |        
|                                                                        |  | 2009                             |         |          | 2008 |                  
|                                                                        |  | AverageBalance                   |         | Interest |      | AverageYield/Rate |  |        | AverageBalance |  | Interest |         | AverageYield/Rate |  
|                                                                        |  | (Dollars in Thousands)           |        
|Interest-Earning Assets:                                                |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Loans Receivable (1)                                                    |  | $                                | 139,836 |          | $    | 2,180             |  | 6.24   | %              |  | $        | 104,849 |                   | $ | 1,769 |  | 6.75   | %
|Mortgage-backed Securities                                              |  |                                  | 139,349 |          |      | 1,786             |  | 5.13   | %              |  |          | 127,822 |                   |   | 1,613 |  | 5.05   | %
|Investment Securities                                                   |  |                                  | 27,659  |          |      | 174               |  | 2.52   | %              |  |          | 42,819  |                   |   | 461   |  | 4.31   | %
|Other Interest-Earnings Assets                                          |  |                                  | 12,640  |          |      | 18                |  | 0.57   | %              |  |          | 8,745   |                   |   | 66    |  | 3.02   | %
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Total Interest-Earning Assets                                           |  |                                  | 319,484 |          |      | 4,158             |  | 5.21   | %              |  |          | 284,235 |                   |   | 3,909 |  | 5.50   | %
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|                                                                        |  |                                  |         |          |      |                  
|Non-Interest Earning Assets                                             |  |                                  | 6,359   |          |      |                   |  |        |                |  |          | 7,066   |                   |   |       |  |        |  
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Total Assets                                                            |  | $                                | 325,843 |          |      |                   |  |        |                |  | $        | 291,301 |                   |   |       |  |        |  
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|                                                                        |  |                                  |         |          |      |                  
|Interest-Bearing Liabilities:                                           |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Passbook, Checking and Money Market Accounts                            |  | $                                | 43,137  |          |      | 45                |  | 0.42   | %              |  | $        | 43,270  |                   |   | 43    |  | 0.40   | %
|Certificates of Deposit                                                 |  |                                  | 129,248 |          |      | 868               |  | 2.69   | %              |  |          | 101,003 |                   |   | 902   |  | 3.57   | %
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Total Interest-Bearing Deposits                                         |  |                                  | 172,385 |          |      | 913               |  | 2.12   | %              |  |          | 144,273 |                   |   | 945   |  | 2.62   | %
|                                                                        |  |                                  |         |          |      |                  
|Borrowings                                                              |  |                                  | 62,876  |          |      | 646               |  | 4.11   | %              |  |          | 50,371  |                   |   | 514   |  | 4.08   | %
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Total Interest-Bearing Liabilities                                      |  |                                  | 235,261 |          |      | 1,559             |  | 2.65   | %              |  |          | 194,644 |                   |   | 1,459 |  | 3.00   | %
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Non-Interest Bearing Liabilities                                        |  |                                  | 11,088  |          |      |                   |  |        |                |  |          | 8,228   |                   |   |       |  |        |  
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Total Liabilities                                                       |  |                                  | 246,349 |          |      |                   |  |        |                |  |          | 202,872 |                   |   |       |  |        |  
|                                                                        |  |                                  |         |          |      |                  
|Stockholders Equity                                                    |  |                                  | 79,494  |          |      |                   |  |        |                |  |          | 88,429  |                   |   |       |  |        |  
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Total Liabilities and Stockholders Equity                              |  | $                                | 325,843 |          |      |                   |  |        |                |  | $        | 291,301 |                   |   |       |  |        |  
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Net Interest-Earning Assets                                             |  | $                                | 84,223  |          |      |                   |  |        |                |  | $        | 89,591  |                   |   |       |  |        |  
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Net Interest Income; Average Interest Rate Spread                       |  |                                  |         |          | $    | 2,599             |  | 2.56   | %              |  |          |         |                   | $ | 2,450 |  | 2.50   | %
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|Net Interest Margin (2)                                                 |  |                                  |         |          |      |                   |  | 3.25   | %              |  |          |         |                   |   |       |  | 3.45   | %
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  
|                                                                        |  |                                  |         |          |      |                  
|Average Interest-Earning Assets to Average Interest-Bearing Liabilities |  |                                  |         |          |      |                   |  | 135.80 | %              |  |          |         |                   |   |       |  | 146.03 | %
|                                                                        |  |                                  |         |          |      |                   |  |        |                |  |          |         |                   |   |       |  |        |  



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

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



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|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|----------------------------------------------------------------------- |  | ------------------------------- | ------- | -------- | ---- | ----------------- |  | ------ | -------------- |  | -------- | ------- | ----------------- | - | ------ |  | ------ | -
|                                                                        |  | Nine months Ended September 30, |        
|                                                                        |  | 2009                            |         |          | 2008 |                  
|                                                                        |  | AverageBalance                  |         | Interest |      | AverageYield/Rate |  |        | AverageBalance |  | Interest |         | AverageYield/Rate |  
|                                                                        |  | (Dollars in Thousands)          |        
|Interest-Earning Assets:                                                |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|Loans Receivable (1)                                                    |  | $                               | 127,401 |          | $    | 6,055             |  | 6.34   | %              |  | $        | 101,763 |                   | $ | 5,177  |  | 6.78   | %
|Mortgage-backed Securities                                              |  |                                 | 153,139 |          |      | 5,992             |  | 5.22   | %              |  |          | 120,818 |                   |   | 4,616  |  | 5.09   | %
|Investment Securities                                                   |  |                                 | 24,624  |          |      | 538               |  | 2.91   | %              |  |          | 44,538  |                   |   | 1,564  |  | 4.68   | %
|Other Interest-Earnings Assets                                          |  |                                 | 10,923  |          |      | 57                |  | 0.70   | %              |  |          | 11,630  |                   |   | 287    |  | 3.29   | %
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|Total Interest-Earning Assets                                           |  |                                 | 316,087 |          |      | 12,642            |  | 5.33   | %              |  |          | 278,749 |                   |   | 11,644 |  | 5.57   | %
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                  
|Non-Interest Earning Assets                                             |  |                                 | 6,438   |          |      |                   |  |        |                |  |          | 6,734   |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                  
|Total Assets                                                            |  | $                               | 322,525 |          |      |                   |  |        |                |  | $        | 285,483 |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                  
|Interest-Bearing Liabilities:                                           |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|Passbook, Checking and Money Market Accounts                            |  | $                               | 43,121  |          |      | 133               |  | 0.41   | %              |  | $        | 44,341  |                   |   | 134    |  | 0.40   | %
|Certificates of Deposit                                                 |  |                                 | 122,928 |          |      | 2,666             |  | 2.89   | %              |  |          | 98,085  |                   |   | 2,833  |  | 3.85   | %
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|Total Interest-Bearing Deposits                                         |  |                                 | 166,049 |          |      | 2,799             |  | 2.25   | %              |  |          | 142,426 |                   |   | 2,967  |  | 2.78   | %
|                                                                        |  |                                 |         |          |      |                  
|Borrowings                                                              |  |                                 | 65,800  |          |      | 1,942             |  | 3.94   | %              |  |          | 45,708  |                   |   | 1,406  |  | 4.10   | %
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|Total Interest-Bearing Liabilities                                      |  |                                 | 231,849 |          |      | 4,741             |  | 2.73   | %              |  |          | 188,134 |                   |   | 4,373  |  | 3.10   | %
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                  
|Non-Interest Bearing Liabilities                                        |  |                                 | 9,279   |          |      |                   |  |        |                |  |          | 7,702   |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                  
|Total Liabilities                                                       |  |                                 | 241,128 |          |      |                   |  |        |                |  |          | 195,836 |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                  
|Stockholders Equity                                                    |  |                                 | 81,397  |          |      |                   |  |        |                |  |          | 89,647  |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                  
|Total Liabilities and Stockholders Equity                              |  | $                               | 322,525 |          |      |                   |  |        |                |  | $        | 285,483 |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                  
|Net Interest-Earning Assets                                             |  | $                               | 84,238  |          |      |                   |  |        |                |  | $        | 90,615  |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                  
|Net Interest Income; Average Interest Rate Spread                       |  |                                 |         |          | $    | 7,901             |  | 2.60   | %              |  |          |         |                   | $ | 7,271  |  | 2.47   | %
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                  
|Net Interest Margin (2)                                                 |  |                                 |         |          |      |                   |  | 3.33   | %              |  |          |         |                   |   |        |  | 3.48   | %
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  
|                                                                        |  |                                 |         |          |      |                  
|Average Interest-Earning Assets to Average Interest-Bearing Liabilities |  |                                 |         |          |      |                   |  | 136.33 | %              |  |          |         |                   |   |        |  | 148.17 | %
|                                                                        |  |                                 |         |          |      |                   |  |        |                |  |          |         |                   |   |        |  |        |  



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

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

Interest Income.Net interest income for the third quarter of 2009 was $2.6 million, an increase of $149,000 from the third quarter
of 2008. Our average interest rate spread for the quarter ended September 30, 2009 was 2.56%, an increase of six basis points from the quarter ended September 30, 2008. Interest income increased by $249,000 in the third quarter of 2009
compared to the third quarter of 2008 due to an increase in the average balance of interest-earning assets of $35.2 million between the respective periods. The average yield of our interest-earnings assets for the third quarter of 2009 was 5.21%, a
decrease of 29 basis points from the third quarter of 2008. This decrease was primarily due to a decline in market rates of interest between the periods. Interest income on loans receivable increased by $411,000 between the respective three month
periods ended September 30, 2009 and September 30, 2008. This increase was due primarily to an increase in the average balance of our loans receivable of $35.0 million, which was partially offset by a decline in the average yield of our
loans receivable of 51 basis points. Interest income on mortgage-backed securities was $1.8 million for the third quarter of 2009, an increase of $173,000 from the third quarter of 2008. This increase was due to an increase in the average balance of
mortgage backed securities of $11.5 million, as well as an increase in the average yield of mortgage-backed securities of eight basis points, between the respective quarterly periods. Interest income on investment securities decreased by $287,000



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during the quarter ended September 30, 2009 compared to the quarter ended September 30, 2008, and interest income on other interest-earning assets declined during the period by $48,000.
For the nine months ended September 30, 2009, net interest income was $7.9 million, an increase of $630,000 from the nine month period ended September 30, 2008. During the nine month period ended September 30, 2009, interest
income increased by $998,000, to $12.6 million, compared to the nine month period ended September 30, 2008. During the first nine months of 2009, the average balance on total interest-earning assets was $316.1 million, an increase of $37.3
million from the first nine months of 2008. The average yield of our average earning assets was 5.33% for the first nine months of 2009, a decrease of 24 basis points from the first nine months of 2008. Our average interest rate spread during the
first nine months of 2009 was 2.60%, an increase of 13 basis points from the first nine months of 2008. Our net interest margin for the nine month periods ended September 30, 2009 and September 30, 2008 was 3.33% and 3.48%, respectively.

Interest Expense. Total interest expense was $1.6 million with an average cost on our total interest-bearing
liabilities of 2.65% for the quarter ended September 30, 2009 compared to $1.5 million at an average cost on our total interest-bearing liabilities of 3.00% for the quarter ended September 30, 2008. Average interest-bearing deposits were
$172.4 million for the three month period ended September 30, 2009, an increase of $28.1 million, or 19.5%, from the three month period ended September 30, 2008. Interest expense on deposits for the third quarter of 2009 was $913,000, a
decrease of $32,000 from the third quarter of 2008. Average total borrowings were $62.9 million, at an average cost of 4.11%, during the third quarter of 2009 compared to $50.4 million, at an average cost of 4.08%, during the third quarter of 2008.
Interest expense on borrowings was $646,000 during the third quarter of 2009, an increase of $132,000 from the third quarter of 2008. Total interest expense was $4.7 million for the nine month period ended September 30, 2009, an increase of
$368,000 from the nine month period ended September 30, 2008. Average total interest-bearing liabilities were $231.8 million during the nine months ended September 30, 2009, an increase of $43.7 million from the nine month period ended
September 30, 2008. The average rate paid on interest-bearing liabilities during the nine month periods ended September 30, 2009 and September 30, 2008, was 2.73% and 3.10%, respectively.

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

During the third quarter of 2009, the Bank recorded provisions for loan losses of $73,000 compared to recoveries of $12,000 during the third quarter of 2008. For the nine months ended September 30,
2009, the Bank recorded provisions for loan losses of $126,000 compared to recoveries of $39,000 for the nine months ended September 30, 2008. Our total allowance for loan losses at September 30, 2009 was $1.7 million, or 92.11% of our
non-performing loans. Our allowance for loan losses as a percentage of total loans receivable was 1.15% at September 30, 2009, a decline of 57 basis points from December 31, 2008. During the nine months ended September 30, 2009, the
Bank recorded a $396,000 charge-off against a nonresidential construction loan secured by a multi-use facility. For the year ended December 31, 2008, our loan charge-offs totaled $4,000. Management reviews the allowance for loan losses on a
regular basis and establishes provisions after consideration of several factors, including the type of collateral securing the debt, delinquency status, local economic market conditions and other factors related to the collectability of the debt. In
addition, this continuing review of the performance of our loan portfolio includes an analysis of the repayment history of those loans secured by collateral impaired by Hurricane Katrina. As a result of this analysis, we have reduced the segment of
our allowance for loan losses established to reflect the probable losses incurred as a result of the storm. Such reduction in this portion of our allowance for loan losses has resulted in recoveries in the allowance for loan losses or has reduced
the amount of provisions for loan losses that we otherwise would have taken in recent periods.

Non-interest Income.Our non-interest income for the third quarter of 2009 was $97,000 compared to $152,000 for the third quarter of 2008. The decrease in non-interest income between the respective quarters was primarily due to a $47,000 decrease in the fees earned
on reverse mortgage loan originations. Non-interest income for the nine months ended September 30, 2009 and 2008 was $406,000 and $390,000, respectively.



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Non-interest Expense. Non-interest expense for the third quarter of 2009 was $1.7
million, an increase of $233,000 from the third quarter of 2008. Salaries and employee benefits expense was $1.0 million in the third quarter of 2009, an increase of $46,000 from the third quarter of 2008. This increase was due primarily to higher
overall levels of salaries and employer-paid benefits. Occupancy expense increased by $30,000 between the third quarter of 2009 and the third quarter of 2008 due to increases in our data processing expense associated with enhancements to our teller
system. Other non-interest expenses increased by $157,000 during the third quarter of 2009 compared to the third quarter of 2008. Our expense for the Louisiana bank shares tax was approximately $82,000 higher in the third quarter of 2009 compared to
the third quarter of 2008 due primarily to timing differences in our accruals. Our FDIC insurance assessment increased by $41,000 during the third quarter of 2009 due to an increase in our deposit base, and an increase in the annualized assessment
rate, as well as the depletion of a one-time FDIC assessment credit established in December of 2006. This credit reduced our FDIC insurance assessment for the 2008 periods. In addition, the Bank incurred a $20,000 fee as it joined an ATM cooperative
during the third quarter of 2009 that provides its customers with access to over 150 ATMs throughout the Gulf South region. For the nine month period ended September 30, 2009, non-interest expense was $5.2 million, an increase of $539,000 from
the nine month period ended September 30, 2008. Salaries and benefits expense increased between the respective nine month periods by $320,000 due to an increase in our overall level of staffing and the implementation of our shareholder approved
equity-based compensation plans. Our equity-based compensation plans were approved by our shareholders in February 2008, and therefore did not affect periods prior thereto. The average number of full-time equivalent employees for the first nine
months of 2009 was 66, an increase of 5 full-time equivalent employees from the first nine months of 2008. Our FDIC insurance expense increased by $177,000, due primarily to an industry-wide second quarter 2009 special assessment, which amounted to
$126,000 in our case, and the $41,000 increase for the current quarter which was discussed above.

Income Tax Expense.Income tax expense for the third quarter of 2009 was $315,000 compared to $354,000 for the third quarter of 2008. For the nine month periods ended September 30, 2009 and September 30, 2008, income tax expense was $1.0 million and
$947,000, respectively. Although the Company reported a decrease of $58,000 in pre-tax income between the nine month periods ended September 30, 2009 and September 30, 2008, income tax expense increased due to adjustments in our deferred
tax accounts.

Liquidity and Capital Resources

Our primary sources of funds are from deposits, amortization of loans, loan prepayments and the maturity of loans, mortgage-backed securities
and other investments, and other funds provided from operations. While scheduled payments from the amortization of loans and mortgage-backed securities and maturing investment securities are relatively predictable sources of funds, deposit flows and
loan prepayments can be greatly influenced by general interest rates, economic conditions and competition. We also maintain excess funds in short-term, interest-bearing assets that provide additional liquidity. At September 30, 2009, our cash
and cash equivalents amounted to $11.1 million. In addition, at such date our available-for-sale investment and mortgage-backed securities amounted to an aggregate of $67.7 million.

We use our liquidity to fund existing and future loan commitments, to fund maturing certificates of deposit and demand deposit withdrawals,
to invest in other interest-earning assets, and to meet operating expenses. At September 30, 2009, we had certificates of deposit maturing within the next 12 months amounting to $90.6 million. Based upon historical experience, we anticipate
that a significant portion of the maturing certificates of deposit will be redeposited with us. At September 30, 2009, we had $61.5 million in total borrowings, including $35.5 million in FHLB advances and $26.0 million in reverse repurchase
agreements with commercial banks.

In addition to cash flow from loan and securities payments and prepayments as well as from
sales of available for sale securities, we have significant borrowing capacity available to fund liquidity needs. In recent years we have utilized borrowings as a cost efficient addition to deposits as a source of funds. As a member of the Federal
Home Loan Bank of Dallas, we pledge residential mortgage loans and mortgage-backed securities as well as our stock in the Federal Home Loan Bank as collateral for advances. At September 30, 2009, the Company had $154.6 million in additional
funds available through the Federal Home Loan Bank.

In light of the Companys regulatory capital, which is significantly
in excess of well capitalized standards, and taking into consideration the Companys projected earnings, asset growth, and business strategy, we have decided not to seek Federal funding through the U. S. Treasury Departments Capital
Purchase Program, although we believe we would be eligible for such funds.



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##### Table of Contents

The following table summarizes our contractual cash obligations at September 30, 2009.



|                                   |  |                        |         |           |   |                           |  |                            |        |                  |   |        |  |   |      
|---------------------------------- |  | ---------------------- | ------- | --------- | - | ------------------------- |  | -------------------------- | ------ | ---------------- | - | ------ |  | - | -----
|                                   |  | Payments Due by Period
|                                   |  | Total                  |         | To 1 Year |   | More Than1 Yearto 3 Years |  | More Than3 Yearsto 5 Years |        | More Than5 Years
|                                   |  | (Dollars In Thousands)
|                                   |  |                        |         |           |  
|Certificates of Deposit            |  | $                      | 135,487 |           | $ | 90,559                    |  | $                          | 26,512 |                  | $ | 18,416 |  | $ |     
|FHLB Advances and Other Borrowings |  |                        | 61,518  |           |   | 1,781                     |  |                            | 18,213 |                  |   | 34,110 |  |   | 7,414
|                                   |  |                        |         |           |   |                           |  |                            |        |                  |   |        |  |   |      
|Total Long-Term Debt               |  |                        | 197,005 |           |   | 92,340                    |  |                            | 44,725 |                  |   | 52,526 |  |   | 7,414
|                                   |  |                        |         |           |  
|Operating Lease Obligations        |  | $                      | 203     |           | $ | 32                        |  | $                          | 62     |                  | $ | 62     |  | $ | 47   
|                                   |  |                        |         |           |   |                           |  |                            |        |                  |   |        |  |   |      
|                                   |  |                        |         |           |  
|Total Contractual Obligations      |  | $                      | 197,208 |           | $ | 92,372                    |  | $                          | 44,787 |                  | $ | 52,588 |  | $ | 7,461
|                                   |  |                        |         |           |   |                           |  |                            |        |                  |   |        |  |   |      

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

Impact of Inflation and Changing Prices

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

Item 3 - Quantitative and Qualitative Disclosures About Market Risk.

For a discussion of the Companys asset
and liability management policies as well as the methods used to manage its exposure to the risk of loss from adverse changes in market prices and rates, see Managements Discussion and Analysis of Financial Condition and Results of
Operations  How We Manage Market Risk at Part II, Item 7 in the Companys Annual Report on Form 10-K for the year ended December 31, 2008.

Item 4T - Controls and Procedures.

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

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



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##### Table of Contents

PART II - OTHER INFORMATION

Item 1 - Legal Proceedings.

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

Item 1A - Risk Factors.

See Risk Factors at pages 29-33 in the
Companys Annual Report on Form 10-K for the year ended December 31, 2008 (SEC File No. 1-33573), which is incorporated herein by reference thereto.

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

(a) Not applicable.

(b) Not applicable.

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



|                                 |  |                               |  |                            |       |                                                                           |         |                                                                             |        
|-------------------------------- |  | ----------------------------- |  | -------------------------- | ----- | ------------------------------------------------------------------------- | ------- | --------------------------------------------------------------------------- | -------
|Period                           |  | TotalNumber ofSharesPurchased |  | AveragePrice Paidper Share |       | Total Numberof SharesPurchased
asPart of PubliclyAnnouncedPlan or Program |         | MaximumNumber ofShares that MayYet be PurchasedUnder the Planof Program
(1)
|                                 |  |                               |  |                           
|July 1 - July 31, 2009           |  |                              |  | $                          |      |                                                                           |        |                                                                             | 142,295
|August 1 - August 31, 2009       |  | 81,511                        |  |                            | 13.61 |                                                                           | 81,511  |                                                                             | 60,784 
|September 1 - September 30, 2009 |  | 29,159                        |  |                            | 13.90 |                                                                           | 29,159  |                                                                             | 31,625 
|                                 |  |                               |  |                            |       |                                                                           |         |                                                                             |        
|Total                            |  | 110,670                       |  | $                          | 13.69 |                                                                           | 110,670 |                                                                             |        
|                                 |  |                               |  |                            |       |                                                                           |         |                                                                             |        



|(1) | On March 17, 2009, the Company announced a stock repurchase program to acquire 5%, or 272,008 shares of its common stock over a six month period. On
September 16, 2009, the Company announced that it would extend the duration of its previously announced fourth repurchase program by three months to December 17, 2009.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Item 3 - Defaults Upon Senior Securities.

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

Item 4 - Submission of Matters to a Vote of Security Holders.

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

Item 5 - Other Information.

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

Item 6 - Exhibits.

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



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



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##### Table of Contents

SIGNATURES

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



|                        |  |                         |  |                                                  
|----------------------- |  | ----------------------- |  | -------------------------------------------------
|                        |  | LOUISIANA BANCORP, INC.
|                        |  |                        
|Date: November 12, 2009 |  | By:                     |  | /S/    LAWRENCE J.
LEBON, III                    
|                        |  |                         |  | Lawrence J. LeBon, III                           
|                        |  |                         |  | President and Chief Executive Officer            
|                        |  |                        
|Date: November 12, 2009 |  | By:                     |  | /S/    JOHN
LEBLANC                              
|                        |  |                         |  | John LeBlanc                                     
|                        |  |                         |  | Senior Vice President and Chief Financial Officer



29