| [x] | Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934For the fiscal year ended:  December 31, 2011 |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| [ ] | Transition report pursuant to Section 13 or 15(d) of theSecurities Exchange Act of 1934For the transition period from ______ to ______ |
|----------|----------------------------------------------------------------------------------------------------------------------------------------|

| LOUISIANA BANCORP, INC.                                |
|--------------------------------------------------------|
| (Exact name of Registrant as specified in its charter) |

| Louisiana                                             |   | 20-8715162             |
|-------------------------------------------------------|--------|------------------------|
| (State or Other Jurisdiction of                       |   | (I.R.S. Employer       |
| Incorporation or Organization)                        |   | Identification Number) |
|                                                  |   |                   |
| 1600 Veterans Memorial Boulevard, Metairie, Louisiana |   | 70005                  |
| (Address of Principal Executive Offices)              |   | (Zip Code)             |

| Title of each class                    |   | Name of each exchange on which registered |
|----------------------------------------|--------|-------------------------------------------|
| Common Stock, $.01 par value per share |   | The Nasdaq Stock Market, LLC              |

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

----

----

Item 

|                                                             |     |
|------------------------------------------------------------------|----------|
| Report of Independent Registered Public Accounting Firm          | 61       |
|                                                             |     |
|                                                             |     |
| Basic Financial Statements                                       |     |
|                                                             |     |
| Consolidated Balance Sheets                                      | 62       |
|                                                             |     |
| Consolidated Statements of Income                                | 63       |
|                                                             |     |
| Consolidated Statements of Comprehensive Income                  | 64       |
|                                                             |     |
| Consolidated Statements of Changes in Shareholders’ Equity | 65       |
|                                                             |     |
| Consolidated Statements of Cash Flows                            | 66 - 67  |
|                                                             |     |
| Notes to Consolidated Financial Statements                       | 68 - 107 |

----

|  |  |
|--|--|

----

LOUISIANA 

|                                                                                                                                                           |   |           |    |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                                                                                                                                           |   | 2011           |    |   | 2010   |   |
|                                                                                                                                                           |   | (In Thousands) |    |
| Assets                                                                                                                                                         |   |           |    |   |   |   |
| Cash and Cash Equivalents                                                                                                                                      |   |           |    |   |   |   |
| Cash and Due from Banks                                                                                                                                        |   | $              | 2,064   |   |   | $      | 2,956 |   |
| Short-Term Interest-Bearing Deposits                                                                                                                           |   |           | 25,525  |   |   |   | 3,654 |   |
| Total Cash and Cash Equivalents                                                                                                                                |   |           | 27,589  |   |   |   | 6,610 |   |
|                                                                                                                                                           |   |           |    |   |   |   |   |   |
| Certificates of Deposit                                                                                                                                        |   |           | 742     |   |   |   | 635 |   |
| Securities Available-for-Sale, at Fair Value (Amortized Cost of $21,780 in 2011 and $61,429 in 2010)                                                           |   |           | 22,750  |   |   |   | 62,489 |   |
| Securities Held-to-Maturity, at Amortized Cost (Estimated Fair Value of $63,067 in 2011 and $67,355 in 2010)                                                   |   |           | 59,581  |   |   |   | 63,539 |   |
| Loans, Net of Allowance for Loan Losses of $1,805 in 2011 and $1,759 in 2010                                                                                   |   |           | 195,632 |   |   |   | 179,110 |   |
| Accrued Interest Receivable                                                                                                                                    |   |           | 1,081   |   |   |   | 1,196 |   |
| Other Real Estate Owned                                                                                                                                        |   |           | 532     |   |   |   | 1,696 |   |
| Stock in Federal Home Loan Bank                                                                                                                                |   |           | 1,543   |   |   |   | 2,002 |   |
| Premises and Equipment, Net                                                                                                                                    |   |           | 1,636   |   |   |   | 1,688 |   |
| Other Assets                                                                                                                                                   |   |           | 2,042   |   |   |   | 1,910 |   |
| Total Assets                                                                                                                                                   |   | $              | 313,128 |   |   | $      | 320,875 |   |
|                                                                                                                                                           |   |           |    |   |   |   |   |   |
| Liabilities and Shareholders' Equity                                                                                                                           |   |           |    |   |   |   |   |   |
| Deposits                                                                                                                                                       |   |           |    |   |   |   |   |   |
| Non-Interest-Bearing                                                                                                                                           |   | $              | 9,764   |   |   | $      | 8,130 |   |
| Interest-Bearing                                                                                                                                               |   |           | 184,562 |   |   |   | 180,232 |   |
| Total Deposits                                                                                                                                                 |   |           | 194,326 |   |   |   | 188,362 |   |
|                                                                                                                                                           |   |           |    |   |   |   |   |   |
| Borrowings                                                                                                                                                     |   |           | 57,113  |   |   |   | 68,248 |   |
| Advance Payments by Borrowers for Taxes and Insurance                                                                                                          |   |           | 2,395   |   |   |   | 1,997 |   |
| Accrued Interest Payable                                                                                                                                       |   |           | 297     |   |   |   | 421 |   |
| Other Liabilities                                                                                                                                              |   |           | 1,477   |   |   |   | 1,569 |   |
| Total Liabilities                                                                                                                                              |   |           | 255,608 |   |   |   | 260,597 |   |
|                                                                                                                                                           |   |           |    |   |   |   |   |   |
| Commitments and Contigencies                                                                                                                                   |   |           | -       |   |   |   | - |   |
|                                                                                                                                                           |   |           |    |   |   |   |   |   |
| Shareholders' Equity                                                                                                                                           |   |           |    |   |   |   |   |   |
| Common Stock, $.01 Par Value, 40,000,000 Shares Authorized; 6,345,732 Shares Issued; 3,257,130 and 3,640,918 Shares Outstanding in 2011 and 2010, Respectively |   |           | 63      |   |   |   | 63 |   |
| Additional Paid-in-Capital                                                                                                                                     |   |           | 63,218  |   |   |   | 62,880 |   |
| Unearned ESOP Shares                                                                                                                                           |   |           | (3,934  | )      |   |   | (4,188 | ) |
| Unearned Recognition and Retention Plan Shares                                                                                                                 |   |           | (1,516  | )      |   |   | (2,074 | ) |
| Treasury Stock, at Cost (3,088,602 and 2,704,814 Shares in 2011 and 2010, Respectively)                                                                        |   |           | (43,286 | )      |   |   | (37,321 | ) |
| Retained Earnings                                                                                                                                              |   |           | 42,335  |   |   |   | 40,218 |   |
| Accumulated Other Comprehensive Income                                                                                                                         |   |           | 640     |   |   |   | 700 |   |
| Total Shareholders' Equity                                                                                                                                     |   |           | 57,520  |   |   |   | 60,278 |   |
| Total Liabilities and Shareholders' Equity                                                                                                                     |   | $              | 313,128 |   |   | $      | 320,875 |   |

----

LOUISIANA 

|                                                |   |                                  |   |   |   |   |   |   |   |
|-----------------------------------------------------|--------|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                |   | 2011                                  |   |   | 2010   |   |   | 2009   |   |
|                                                |   | (In Thousands, Except per Share Data) |   |
| Interest and Dividend Income                        |   |                                  |   |   |   |   |   |   |   |
| Loans, Including Fees                               |   | $                                     | 10,972 |   |   | $      | 10,386 |   |   | $ | 8,400 |   |
| Mortgage-Backed Securities                          |   |                                  | 3,203  |   |   |   | 4,897  |   |   |   | 7,637 |   |
| Investment Securities                               |   |                                  | 694    |   |   |   | 817    |   |   |   | 723 |   |
| Other Interest-Bearing Deposits                     |   |                                  | 33     |   |   |   | 40     |   |   |   | 72 |   |
| Total Interest and Dividend Income                  |   |                                  | 14,902 |   |   |   | 16,140 |   |   |   | 16,832 |   |
|                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Interest Expense                                    |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Deposits                                            |   |                                  | 2,646  |   |   |   | 3,194  |   |   |   | 3,714 |   |
| Borrowings                                          |   |                                  | 2,492  |   |   |   | 2,670  |   |   |   | 2,563 |   |
| Total Interest Expense                              |   |                                  | 5,138  |   |   |   | 5,864  |   |   |   | 6,277 |   |
|                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income                                 |   |                                  | 9,764  |   |   |   | 10,276 |   |   |   | 10,555 |   |
|                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Provision for Loan Losses                           |   |                                  | 53     |   |   |   | 269    |   |   |   | 337 |   |
|                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income after Provision for Loan Losses |   |                                  | 9,711  |   |   |   | 10,007 |   |   |   | 10,218 |   |
|                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Non-Interest Income                                 |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Customer Service Fees                               |   |                                  | 496    |   |   |   | 394    |   |   |   | 324 |   |
| Gain on Sale of Loans                               |   |                                  | 431    |   |   |   | 249    |   |   |   | 36 |   |
| Gain on Sale of Securities                          |   |                                  | 72     |   |   |   | 204    |   |   |   | 406 |   |
| Other Income                                        |   |                                  | 88     |   |   |   | 143    |   |   |   | 70 |   |
| Total Non-Interest Income                           |   |                                  | 1,087  |   |   |   | 990    |   |   |   | 836 |   |
|                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Non-Interest Expense                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Salaries and Employee Benefits                      |   |                                  | 4,637  |   |   |   | 4,557  |   |   |   | 4,404 |   |
| Occupancy Expense                                   |   |                                  | 1,097  |   |   |   | 1,113  |   |   |   | 1,155 |   |
| Louisiana Bank Shares Tax                           |   |                                  | 230    |   |   |   | 214    |   |   |   | 211 |   |
| FDIC Insurance Premium                              |   |                                  | 166    |   |   |   | 180    |   |   |   | 233 |   |
| Net Cost of OREO Operations                         |   |                                  | 313    |   |   |   | 235    |   |   |   | - |   |
| Other Expenses                                      |   |                                  | 1,082  |   |   |   | 973    |   |   |   | 1,087 |   |
| Total Non-Interest Expense                          |   |                                  | 7,525  |   |   |   | 7,272  |   |   |   | 7,090 |   |
|                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Income Before Income Tax Expense                    |   |                                  | 3,273  |   |   |   | 3,725  |   |   |   | 3,964 |   |
|                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Income Tax Expense                                  |   |                                  | 1,156  |   |   |   | 1,167  |   |   |   | 1,430 |   |
|                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Net Income                                          |   | $                                     | 2,117  |   |   | $      | 2,558  |   |   | $ | 2,534 |   |
|                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Earnings Per Share                                  |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Basic                                               |   | $                                     | 0.73   |   |   | $      | 0.71   |   |   | $ | 0.54 |   |
| Diluted                                             |   | $                                     | 0.70   |   |   | $      | 0.69   |   |   | $ | 0.54 |   |

----

LOUISIANA 

|                                                              |   |           |   |   |   |   |   |   |   |
|-------------------------------------------------------------------|--------|----------------|--------|--------|--------|--------|--------|--------|--------|
|                                                              |   | 2011           |   |   | 2010   |   |   | 2009   |   |
|                                                              |   | (In Thousands) |   |
|                                                              |   |           |   |   |   |   |   |   |   |
| Net Income                                                        |   | $              | 2,117  |   |   | $      | 2,558  |   |   | $ | 2,534 |   |
|                                                              |   |           |   |   |   |   |   |   |   |   |   |   |
| Other Comprehensive Loss, Net of Tax                              |   |           |   |   |   |   |   |   |   |   |   |   |
| Unrealized Holding Losses Arising  During the Period         |   |           | (12    | )      |   |   | (92    | )      |   |   | (149 | ) |
|                                                              |   |           |   |   |   |   |   |   |   |   |   |   |
| Reclassification Adjustment for Gains Included in Net Income |   |           | (48    | )      |   |   | (128   | )      |   |   | (268 | ) |
|                                                              |   |           |   |   |   |   |   |   |   |   |   |   |
| Total Other Comprehensive Loss                                    |   |           | (60    | )      |   |   | (220   | )      |   |   | (417 | ) |
|                                                              |   |           |   |   |   |   |   |   |   |   |   |   |
| Comprehensive Income                                              |   | $              | 2,057  |   |   | $      | 2,338  |   |   | $ | 2,117 |   |

----

LOUISIANA 

|                                                              |   | CommonStock    |   |   | AdditionalPaid-inCapital |   |   | UnearnedESOPStock |   |   | UnearnedRRPStock |   |   | TreasuryStock |   |   | RetainedEarnings |   |    | AccumulatedOtherComprehensiveIncome (Loss) |   |   | TotalShareholders'Equity |   |
|-------------------------------------------------------------------|--------|----------------|--------|--------|--------------------------|--------|--------|-------------------|--------|--------|------------------|--------|--------|---------------|--------|--------|------------------|--------|---------|--------------------------------------------|--------|--------|--------------------------|--------|
|                                                              |   | (In Thousands) |   |
| Balances at December 31, 2008                                     |   | $              | 63     |   |                     | $      | 62,305 |              |   | $      | (4,696           | )      |   | $             | (3,200 | )      |             | $      | (5,208  | )                                          |   | $      | 35,126                   |   |   | $ | 1,337 |   |   | $ | 85,727 |   |
| Net Income - Year Ended December 31, 2009                         |   |           | -      |   |                     |   | -      |              |   |   | -                |   |   |          | -      |   |             |   | -       |                                       |   |   | 2,534                    |   |   |   | - |   |   |   | 2,534 |   |
| Other Comprehensive Loss, Net of Applicable Deferred Income Taxes |   |           | -      |   |                     |   | -      |              |   |   | -                |   |   |          | -      |   |             |   | -       |                                       |   |   | -                        |   |   |   | (417 | ) |   |   | (417 | ) |
| Stock Purchased for Treasury                                      |   |           | -      |   |                     |   | -      |              |   |   | -                |   |   |          | -      |   |             |   | (15,595 | )                                          |   |   | -                        |   |   |   | - |   |   |   | (15,595 | ) |
| ESOP Shares Released for Allocation (25,382 Shares)               |   |           | -      |   |                     |   | 89     |              |   |   | 254              |   |   |          | -      |   |             |   | -       |                                       |   |   | -                        |   |   |   | - |   |   |   | 343 |   |
| RRP Shares Earned                                                 |   |           | -      |   |                     |   | (48    | )                 |   |   | -                |   |   |          | 564    |   |             |   | -       |                                       |   |   | -                        |   |   |   | - |   |   |   | 516 |   |
| Stock Option Expense                                              |   |           | -      |   |                     |   | 240    |              |   |   | -                |   |   |          | -      |   |             |   | -       |                                       |   |   | -                        |   |   |   | - |   |   |   | 240 |   |
|                                                              |   |           |   |   |                     |   |   |              |   |   |             |   |   |          |   |   |             |   |    |                                       |   |   |                     |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2009                                     |   |           | 63     |   |                     |   | 62,586 |              |   |   | (4,442           | )      |   |          | (2,636 | )      |             |   | (20,803 | )                                          |   |   | 37,660                   |   |   |   | 920 |   |   |   | 73,348 |   |
| Net Income - Year Ended December 31, 2010                         |   |           | -      |   |                     |   | -      |              |   |   | -                |   |   |          | -      |   |             |   | -       |                                       |   |   | 2,558                    |   |   |   | - |   |   |   | 2,558 |   |
| Other Comprehensive Loss, Net of Applicable Deferred Income Taxes |   |           | -      |   |                     |   | -      |              |   |   | -                |   |   |          | -      |   |             |   | -       |                                       |   |   | -                        |   |   |   | (220 | ) |   |   | (220 | ) |
| Stock Purchased for Treasury                                      |   |           | -      |   |                     |   | -      |              |   |   | -                |   |   |          | -      |   |             |   | (16,628 | )                                          |   |   | -                        |   |   |   | - |   |   |   | (16,628 | ) |
| ESOP Shares Released for Allocation (25,383 Shares)               |   |           | -      |   |                     |   | 117    |              |   |   | 254              |   |   |          | -      |   |             |   | -       |                                       |   |   | -                        |   |   |   | - |   |   |   | 371 |   |
| RRP Shares Earned                                                 |   |           | -      |   |                     |   | (48    | )                 |   |   | -                |   |   |          | 562    |   |             |   | -       |                                       |   |   | -                        |   |   |   | - |   |   |   | 514 |   |
| Stock Options Exercised                                           |   |           | -      |   |                     |   | (17    | )                 |   |   | -                |   |   |          | -      |   |             |   | 110     |                                       |   |   | -                        |   |   |   | - |   |   |   | 93 |   |
| Stock Option Expense                                              |   |           | -      |   |                     |   | 242    |              |   |   | -                |   |   |          | -      |   |             |   | -       |                                       |   |   | -                        |   |   |   | - |   |   |   | 242 |   |
|                                                              |   |           |   |   |                     |   |   |              |   |   |             |   |   |          |   |   |             |   |    |                                       |   |   |                     |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2010                                     |   |           | 63     |   |                     |   | 62,880 |              |   |   | (4,188           | )      |   |          | (2,074 | )      |             |   | (37,321 | )                                          |   |   | 40,218                   |   |   |   | 700 |   |   |   | 60,278 |   |
| Net Income - Year Ended December 31, 2011                         |   |           | -      |   |                     |   | -      |              |   |   | -                |   |   |          | -      |   |             |   | -       |                                       |   |   | 2,117                    |   |   |   | - |   |   |   | 2,117 |   |
| Other Comprehensive Loss, Net of Applicable Deferred Income Taxes |   |           | -      |   |                     |   | -      |              |   |   | -                |   |   |          | -      |   |             |   | -       |                                       |   |   | -                        |   |   |   | (60 | ) |   |   | (60 | ) |
| Stock Purchased for Treasury                                      |   |           | -      |   |                     |   | -      |              |   |   | -                |   |   |          | -      |   |             |   | (5,965  | )                                          |   |   | -                        |   |   |   | - |   |   |   | (5,965 | ) |
| ESOP Shares Released for Allocation (25,383 Shares)               |   |           | -      |   |                     |   | 138    |              |   |   | 254              |   |   |          | -      |   |             |   | -       |                                       |   |   | -                        |   |   |   | - |   |   |   | 392 |   |
| RRP Shares Earned                                                 |   |           | -      |   |                     |   | (44    | )                 |   |   | -                |   |   |          | 558    |   |             |   | -       |                                       |   |   | -                        |   |   |   | - |   |   |   | 514 |   |
| Stock Option Expense                                              |   |           | -      |   |                     |   | 244    |              |   |   | -                |   |   |          | -      |   |             |   | -       |                                       |   |   | -                        |   |   |   | - |   |   |   | 244 |   |
|                                                              |   |           |   |   |                     |   |   |              |   |   |             |   |   |          |   |   |             |   |    |                                       |   |   |                     |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2011                                     |   | $              | 63     |   |                     | $      | 63,218 |              |   | $      | (3,934           | )      |   | $             | (1,516 | )      |             | $      | (43,286 | )                                          |   | $      | 42,335                   |   |   | $ | 640 |   |   | $ | 57,520 |   |

----

LOUISIANA 

|                                                                              |   | 2011           |    |   | 2010   |   |    | 2009   |   |
|-----------------------------------------------------------------------------------|--------|----------------|---------|--------|--------|--------|---------|--------|--------|
|                                                                              |   | (In Thousands) |    |
| Cash Flows from Operating Activities                                              |   |           |    |   |   |   |    |   |   |
| Net Income                                                                        |   | $              | 2,117   |   |   | $      | 2,558   |   |   | $ | 2,534 |   |
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |   |           |    |   |   |   |    |   |   |   |   |   |
| Depreciation                                                                      |   |           | 189     |   |   |   | 218     |   |   |   | 239 |   |
| Provision for Loan Losses                                                         |   |           | 53      |   |   |   | 269     |   |   |   | 337 |   |
| Net Increase in ESOP Shares Earned                                                |   |           | 392     |   |   |   | 371     |   |   |   | 343 |   |
| Net Increase in RRP Shares Earned                                                 |   |           | 514     |   |   |   | 514     |   |   |   | 516 |   |
| Stock Option Plan Expense                                                         |   |           | 244     |   |   |   | 242     |   |   |   | 240 |   |
| Discount Accretion Net of Premium Amortization                                    |   |           | (77     | )      |   |   | (220    | )      |   |   | (319 | ) |
| Gain on Insurance Settlement                                                      |   |           | -       |   |   |   | -       |   |   |   | (2 | ) |
| Deferred Income Tax Benefit                                                       |   |           | (242    | )      |   |   | (504    | )      |   |   | (133 | ) |
| Gain on Sale of Securities                                                        |   |           | (72     | )      |   |   | (204    | )      |   |   | (406 | ) |
| Gain on Sale of Loans                                                             |   |           | (431    | )      |   |   | (249    | )      |   |   | (36 | ) |
| Gain on Sale of Property and Equipment                                            |   |           | (4      | )      |   |   | -       |   |   |   | (4 | ) |
| Originations of Loans Held-for-Sale                                               |   |           | (30,715 | )      |   |   | (30,793 | )      |   |   | (12,509 | ) |
| Proceeds from Sales of Loans Held-for-Sale                                        |   |           | 29,344  |   |   |   | 30,559  |   |   |   | 12,478 |   |
| Decrease in Accrued Interest Receivable                                           |   |           | 115     |   |   |   | 130     |   |   |   | 323 |   |
| Impairment of Other Real Estate Owned                                             |   |           | 287     |   |   |   | 227     |   |   |   | - |   |
| Decrease (Increase) in Other Assets                                               |   |           | 140     |   |   |   | 19      |   |   |   | (652 | ) |
| Decrease in Accrued Interest Payable                                              |   |           | (124    | )      |   |   | (176    | )      |   |   | (67 | ) |
| (Decrease) Increase in Other Liabilities                                          |   |           | (92     | )      |   |   | 80      |   |   |   | (446 | ) |
| Net Cash Provided by Operating Activities                                         |   |           | 1,638   |   |   |   | 3,041   |   |   |   | 2,436 |   |
|                                                                              |   |           |    |   |   |   |    |   |   |   |   |   |
| Cash Flows from Investing Activities                                              |   |           |    |   |   |   |    |   |   |   |   |   |
| Investment in Certificates of Deposit                                             |   |           | (566    | )      |   |   | (426    | )      |   |   | (1,676 | ) |
| Purchase of Securities Available-for-Sale                                         |   |           | (25,683 | )      |   |   | (52,994 | )      |   |   | (37,455 | ) |
| Purchase of Securities Held-to-Maturity                                           |   |           | (18,279 | )      |   |   | -       |   |   |   | (8,601 | ) |
| Proceeds from Maturities of Certificates of Deposit                               |   |           | 459     |   |   |   | 1,317   |   |   |   | 1,576 |   |
| Proceeds from Maturities of Securities Available-for-Sale                         |   |           | 63,238  |   |   |   | 47,293  |   |   |   | 42,772 |   |
| Proceeds from Maturities of Securities Held-to-Maturity                           |   |           | 23,278  |   |   |   | 31,074  |   |   |   | 36,046 |   |
| Proceeds from Sales of Securities Available-for-Sale                              |   |           | 1,202   |   |   |   | 5,635   |   |   |   | 13,781 |   |
| Proceeds from Sales of Securities Held-to-Maturity                                |   |           | -       |   |   |   | 125     |   |   |   | - |   |
| Net Increase in Loans Receivable                                                  |   |           | (14,931 | )      |   |   | (21,289 | )      |   |   | (49,967 | ) |
| Proceeds from Sales of Loans Held for Investing                                   |   |           | -       |   |   |   | 489     |   |   |   | 914 |   |
| Insurance Proceeds - Property Damage                                              |   |           | -       |   |   |   | -       |   |   |   | 42 |   |
| Purchase of Property and Equipment                                                |   |           | (137    | )      |   |   | (109    | )      |   |   | (272 | ) |
| Proceeds from Sale of Property and Equipment                                      |   |           | 5       |   |   |   | -       |   |   |   | 4 |   |
| Proceeds from Sale of Foreclosed Assets                                           |   |           | 1,035   |   |   |   | -       |   |   |   | - |   |
| Net Decrease (Increase) in Investment in Federal Home Loan Bank Stock             |   |           | 459     |   |   |   | (7      | )      |   |   | 298 |   |
| Net Cash Provided by (Used in) Investing Activities                               |   |           | 30,080  |   |   |   | 11,108  |   |   |   | (2,538 | ) |

----

|                                                           |   |           |    |   |   |   |    |   |   |
|----------------------------------------------------------------|--------|----------------|---------|--------|--------|--------|---------|--------|--------|
|                                                           |   | 2011           |    |   | 2010   |   |    | 2009   |   |
|                                                           |   | (In Thousands) |    |
| Cash Flows from Financing Activities                           |   |           |    |   |   |   |    |   |   |
| Increase (Decrease) in Deposits                                |   |           | 5,964   |   |   |   | (261    | )      |   |   | 28,033 |   |
| Increase in Advances by Borrowers for Taxes and Insurance |   |           | 398     |   |   |   | 83      |   |   |   | 275 |   |
| (Decrease) Increase in Borrowings                              |   |           | (11,136 | )      |   |   | 4,439   |   |   |   | (12,850 | ) |
| Purchase of Treasury Stock                                     |   |           | (5,965  | )      |   |   | (16,628 | )      |   |   | (15,595 | ) |
| Proceeds from Exercise of Options                              |   |           | -       |   |   |   | 93      |   |   |   | - |   |
|                                                           |   |           |    |   |   |   |    |   |   |   |   |   |
| Net Cash Used in Financing Activities                          |   |           | (10,739 | )      |   |   | (12,274 | )      |   |   | (137 | ) |
|                                                           |   |           |    |   |   |   |    |   |   |   |   |   |
| Net Increase (Decrease) in Cash and Cash Equivalents           |   |           | 20,979  |   |   |   | 1,875   |   |   |   | (239 | ) |
|                                                           |   |           |    |   |   |   |    |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Year                   |   |           | 6,610   |   |   |   | 4,735   |   |   |   | 4,974 |   |
|                                                           |   |           |    |   |   |   |    |   |   |   |   |   |
| Cash and Cash Equivalents, End of Year                         |   | $              | 27,589  |   |   | $      | 6,610   |   |   | $ | 4,735 |   |
|                                                           |   |           |    |   |   |   |    |   |   |   |   |   |
|                                                           |   |           |    |   |   |   |    |   |   |   |   |   |
| Supplemental Disclosure of Cash Flow Information               |   |           |    |   |   |   |    |   |   |   |   |   |
| Cash Paid During the Year for:                                 |   |           |    |   |   |   |    |   |   |   |   |   |
| Interest                                                       |   | $              | 5,263   |   |   | $      | 6,040   |   |   | $ | 6,344 |   |
|                                                           |   |           |    |   |   |   |    |   |   |   |   |   |
| Income Taxes                                                   |   | $              | 1,315   |   |   | $      | 1,752   |   |   | $ | 2,498 |   |
|                                                           |   |           |    |   |   |   |    |   |   |   |   |   |
| Loans Transferred to Other Real Estate Owned                   |   | $              | 158     |   |   | $      | 350     |   |   | $ | 1,573 |   |

----

LOUISIANA 

----

| Note 1. | Summary of Significant Accounting Policies |
|---------|--------------------------------------------|

----

----

| Note 1. | Summary of Significant Accounting Policies (Continued) |
|---------|--------------------------------------------------------|

----

----

| Note 1. | Summary of Significant Accounting Policies (Continued) |
|---------|--------------------------------------------------------|

----

----

| Note 1. | Summary of Significant Accounting Policies (Continued) |
|---------|--------------------------------------------------------|

|   | Buildings                         | 20 - 40 Years |   |
|--------|-----------------------------------|---------------|--------|
|   | Furniture, Fixtures and Equipment | 3 - 10 Years  |   |
|   | Automobiles                       | 5 Years       |   |

----

----

| Note 1. | Summary of Significant Accounting Policies (Continued) |
|---------|--------------------------------------------------------|

----

----

| Note 1. | Summary of Significant Accounting Policies (Continued) |
|---------|--------------------------------------------------------|

----

----

| Note 1. | Summary of Significant Accounting Policies (Continued) |
|---------|--------------------------------------------------------|

| Note 2. | Securities |
|---------|------------|

|                                   |   | December 31, 2011 |   |
|----------------------------------------|--------|-------------------|--------|
|                                   |   | AmortizedCost     |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | EstimatedFair Value |   |
|                                   |   | (In Thousands)    |   |
| Securities Available-for-Sale          |   |              |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities             |   |              |   |   |   |   |   |   |   |   |   |   |
| GNMA                                   |   | $                 | 146    |   |   | $ | 9 |   |   | $ | - |   |   | $ | 155 |   |
| FNMA                                   |   |              | 6,347  |   |   |   | 470 |   |   |   | - |   |   |   | 6,817 |   |
| FHLMC                                  |   |              | 3,155  |   |   |   | 229 |   |   |   | - |   |   |   | 3,384 |   |
|                                   |   |              | 9,648  |   |   |   | 708 |   |   |   | - |   |   |   | 10,356 |   |
|                                   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government and Agency Obligations |   |              | 11,949 |   |   |   | 262 |   |   |   | - |   |   |   | 12,211 |   |
|                                   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity Securities                      |   |              | 183    |   |   |   | - |   |   |   | - |   |   |   | 183 |   |
|                                   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                  |   | $                 | 21,780 |   |   | $ | 970 |   |   | $ | - |   |   | $ | 22,750 |   |

----

----

| Note 2. | Securities (Continued) |
|---------|------------------------|

|                                   |   | December 31, 2010 |   |
|----------------------------------------|--------|-------------------|--------|
|                                   |   | AmortizedCost     |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | EstimatedFair Value |   |
|                                   |   | (In Thousands)    |   |
| Securities Available-for-Sale          |   |              |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities             |   |              |   |   |   |   |   |   |   |   |   |   |
| FNMA                                   |   | $                 | 9,770  |   |   | $ | 584 |   |   | $ | - |   |   | $ | 10,354 |   |
| FHLMC                                  |   |              | 4,735  |   |   |   | 294 |   |   |   | - |   |   |   | 5,029 |   |
|                                   |   |              | 14,505 |   |   |   | 878 |   |   |   | - |   |   |   | 15,383 |   |
|                                   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government and Agency Obligations |   |              | 46,924 |   |   |   | 307 |   |   |   | (125 | ) |   |   | 47,106 |   |
|                                   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                  |   | $                 | 61,429 |   |   | $ | 1,185 |   |   | $ | (125 | ) |   | $ | 62,489 |   |

|                        |   | December 31, 2011 |   |
|-----------------------------|--------|-------------------|--------|
|                        |   | AmortizedCost     |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | EstimatedFair Value |   |
|                        |   | (In Thousands)    |   |
| Securities Held-to-Maturity |   |              |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities  |   |              |   |   |   |   |   |   |   |   |   |   |
| GNMA                        |   | $                 | 5,987  |   |   | $ | 244 |   |   | $ | - |   |   | $ | 6,231 |   |
| FNMA                        |   |              | 38,994 |   |   |   | 2,031 |   |   |   | - |   |   |   | 41,025 |   |
| FHLMC                       |   |              | 14,600 |   |   |   | 1,211 |   |   |   | - |   |   |   | 15,811 |   |
| Total                       |   | $                 | 59,581 |   |   | $ | 3,486 |   |   | $ | - |   |   | $ | 63,067 |   |

----

----

| Note 2. | Securities (Continued) |
|---------|------------------------|

|                        |   | December 31, 2010 |   |
|-----------------------------|--------|-------------------|--------|
|                        |   | AmortizedCost     |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | EstimatedFair Value |   |
|                        |   | (In Thousands)    |   |
| Securities Held-to-Maturity |   |              |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities  |   |              |   |   |   |   |   |   |   |   |   |   |
| GNMA                        |   | $                 | 8,949  |   |   | $ | 352 |   |   | $ | - |   |   | $ | 9,301 |   |
| FNMA                        |   |              | 33,249 |   |   |   | 2,080 |   |   |   | - |   |   |   | 35,329 |   |
| FHLMC                       |   |              | 19,987 |   |   |   | 1,368 |   |   |   | - |   |   |   | 21,355 |   |
|                        |   |              | 62,185 |   |   |   | 3,800 |   |   |   | - |   |   |   | 65,985 |   |
|                        |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Municipal Bonds             |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue Bonds               |   |              | 285    |   |   |   | 6 |   |   |   | - |   |   |   | 291 |   |
| General Obligation Bonds    |   |              | 1,069  |   |   |   | 10 |   |   |   | - |   |   |   | 1,079 |   |
|                        |   |              | 1,354  |   |   |   | 16 |   |   |   | - |   |   |   | 1,370 |   |
|                        |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                       |   | $                 | 63,539 |   |   | $ | 3,816 |   |   | $ | - |   |   | $ | 67,355 |   |

|                    |   | Available-for-Sale Securities |   |   | Held-to-Maturity Securities |   |
|-------------------------|--------|-------------------------------|--------|--------|-----------------------------|--------|
|                    |   | AmortizedCost                 |   |   | EstimatedFair Value         |   |   | AmortizedCost |   |   | EstimatedFair Value |   |
|                    |   | (In Thousands)                |   |
| Amounts Maturing in:    |   |                          |   |   |                        |   |   |   |   |   |   |   |
| Less than One Year      |   | $                             | 150    |   |                        | $      | 160 |   |   | $ | - |   |   | $ | - |   |
| One to Five Years       |   |                          | 14,076 |   |                        |   | 14,443 |   |   |   | 524 |   |   |   | 558 |   |
| Five to Ten Years       |   |                          | 4,730  |   |                        |   | 5,113 |   |   |   | 14,184 |   |   |   | 15,310 |   |
| Over Ten Years          |   |                          | 2,641  |   |                        |   | 2,851 |   |   |   | 44,873 |   |   |   | 47,199 |   |
|                    |   |                          | 21,597 |   |                        |   | 22,567 |   |   |   | 59,581 |   |   |   | 63,067 |   |
|                    |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Other Equity Securities |   |                          | 183    |   |                        |   | 183 |   |   |   | - |   |   |   | - |   |
|                    |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Total                   |   | $                             | 21,780 |   |                        | $      | 22,750 |   |   | $ | 59,581 |   |   | $ | 63,067 |   |

----

----

| Note 2. | Securities (Continued) |
|---------|------------------------|

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

----

----

| Note 2. | Securities (Continued) |
|---------|------------------------|

|                                   |   | Held-to-Maturity           |   |
|----------------------------------------|--------|----------------------------|--------|
|                                   |   | Losses Less Than 12 Months |   |   | Losses Greater Than 12 Months |   |
|                                   |   | GrossUnrealizedLosses      |   |   | EstimatedFairValue |   |   | GrossUnrealizedLosses |   |   | EstimatedFairValue |   |
|                                   |   | (In Thousands)             |   |
| December 31, 2011                      |   |                       |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities             |   |                       |   |   |   |   |   |   |   |   |   |   |
| GNMA                                   |   | $                          | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| FNMA                                   |   |                       | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| FHLMC                                  |   |                       | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                   |   |                       | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| U.S. Government and Agency Obligations |   |                       | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                  |   | $                          | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010                      |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities             |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GNMA                                   |   | $                          | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| FNMA                                   |   |                       | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| FHLMC                                  |   |                       | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                   |   |                       | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| U.S. Government and Agency Obligations |   |                       | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                  |   | $                          | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |

----

----

| Note 3. | Loans |
|---------|-------|

|                                            |   |           |    |   |   |   |
|-------------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                            |   | 2011           |    |   | 2010   |   |
|                                            |   | (In Thousands) |    |
| Loans Secured by Mortgages on Real Estate       |   |           |    |   |   |   |
| 1-4 Family Residential                          |   | $              | 105,718 |   |   | $      | 98,635 |   |
| Home Equity Loans and Lines                     |   |           | 18,467  |   |   |   | 15,745 |   |
| Multi-Family Residential                        |   |           | 14,591  |   |   |   | 11,785 |   |
| Commercial Real Estate                          |   |           | 56,492  |   |   |   | 52,594 |   |
| Land                                            |   |           | 1,299   |   |   |   | 951 |   |
|                                            |   |           |    |   |   |   |   |   |
| Total Loans Secured by Mortgages on Real Estate |   |           | 196,567 |   |   |   | 179,710 |   |
|                                            |   |           |    |   |   |   |   |   |
| Consumer and Other Loans                        |   |           |    |   |   |   |   |   |
| Loans Secured by Deposits                       |   |           | 568     |   |   |   | 464 |   |
| Other                                           |   |           | 452     |   |   |   | 900 |   |
|                                            |   |           |    |   |   |   |   |   |
| Total Consumer and Other Loans                  |   |           | 1,020   |   |   |   | 1,364 |   |
|                                            |   |           |    |   |   |   |   |   |
| Less:                                           |   |           |    |   |   |   |   |   |
| Allowance for Loan Losses                       |   |           | (1,805  | )      |   |   | (1,759 | ) |
| Net Deferred Loan Origination Fess/Costs        |   |           | (150    | )      |   |   | (205 | ) |
|                                            |   |           |    |   |   |   |   |   |
| Total Loans, Net                                |   | $              | 195,632 |   |   | $      | 179,110 |   |

| December 31, 2011           |   | 30-89 DaysPast Due |   |   | 90 Daysor MorePast Dueand Accruing |   |   | Non-AccrualLoans |   |   | TotalPast Due |   |   | CurrentLoans |   |   | TotalLoans |   |
|-----------------------------|--------|--------------------|--------|--------|------------------------------------|--------|--------|------------------|--------|--------|---------------|--------|--------|--------------|--------|--------|------------|--------|
|                        |   | (in Thousands)     |   |
| Real Estate Secured Loans   |   |               |   |   |                               |   |   |             |   |   |          |   |   |         |   |   |
| 1-4 Family Residential      |   | $                  | 463    |   |                               | $      | -      |             |   | $      | 110           |   |   | $            | 573    |   |       | $      | 105,145 |   |   | $ | 105,718 |   |
| Home Equity Loans and Lines |   |               | 125    |   |                               |   | -      |             |   |   | 569           |   |   |         | 694    |   |       |   | 17,773 |   |   |   | 18,467 |   |
| Multi-Family Residential    |   |               | -      |   |                               |   | -      |             |   |   | -             |   |   |         | -      |   |       |   | 14,591 |   |   |   | 14,591 |   |
| Commercial Real Estate      |   |               | -      |   |                               |   | -      |             |   |   | 330           |   |   |         | 330    |   |       |   | 56,162 |   |   |   | 56,492 |   |
| Land                        |   |               | -      |   |                               |   | -      |             |   |   | -             |   |   |         | -      |   |       |   | 1,299 |   |   |   | 1,299 |   |
| Consumer and Other Loans    |   |               | -      |   |                               |   | -      |             |   |   | 65            |   |   |         | 65     |   |       |   | 955 |   |   |   | 1,020 |   |
|                        |   |               |   |   |                               |   |   |             |   |   |          |   |   |         |   |   |       |   |   |   |   |   |   |   |
| Total                       |   | $                  | 588    |   |                               | $      | -      |             |   | $      | 1,074         |   |   | $            | 1,662  |   |       | $      | 195,925 |   |   | $ | 197,587 |   |

----

----

| Note 3. | Loans (Continued) |
|---------|-------------------|

| December 31, 2010           |   | 30-89 DaysPast Due |   |   | 90 Daysor MorePast Dueand Accruing |   |   | Non-AccrualLoans |   |   | TotalPast Due |   |   | CurrentLoans |   |   | TotalLoans |   |
|-----------------------------|--------|--------------------|--------|--------|------------------------------------|--------|--------|------------------|--------|--------|---------------|--------|--------|--------------|--------|--------|------------|--------|
|                        |   | (in Thousands)     |   |
| Real Estate Secured Loans   |   |               |   |   |                               |   |   |             |   |   |          |   |   |         |   |   |       |   |   |   |   |   |   |   |
| 1-4 Family Residential      |   | $                  | 94     |   |                               | $      | -      |             |   | $      | 123           |   |   | $            | 217    |   |       | $      | 98,418 |   |   | $ | 98,635 |   |
| Home Equity Loans and Lines |   |               | 188    |   |                               |   | -      |             |   |   | 682           |   |   |         | 870    |   |       |   | 14,875 |   |   |   | 15,745 |   |
| Multi-Family Residential    |   |               | -      |   |                               |   | -      |             |   |   | -             |   |   |         | -      |   |       |   | 11,785 |   |   |   | 11,785 |   |
| Commercial Real Estate      |   |               | -      |   |                               |   | -      |             |   |   | -             |   |   |         | -      |   |       |   | 52,594 |   |   |   | 52,594 |   |
| Land                        |   |               | -      |   |                               |   | -      |             |   |   | 34            |   |   |         | 34     |   |       |   | 917 |   |   |   | 951 |   |
| Consumer and Other Loans    |   |               | -      |   |                               |   | -      |             |   |   | 69            |   |   |         | 69     |   |       |   | 1,295 |   |   |   | 1,364 |   |
|                        |   |               |   |   |                               |   |   |             |   |   |          |   |   |         |   |   |       |   |   |   |   |   |   |   |
| Total                       |   | $                  | 282    |   |                               | $      | -      |             |   | $      | 908           |   |   | $            | 1,190  |   |       | $      | 179,884 |   |   | $ | 181,074 |   |

|                       |   | 2011           |   |   | 2010   |   |
|----------------------------|--------|----------------|--------|--------|--------|--------|
|                       |   | (In Thousands) |   |
|                       |   |           |   |   |   |   |
| Balance, Beginning of Year |   | $              | 4,814  |   |   | $      | 4,381 |   |
| Additions                  |   |           | 1,302  |   |   |   | 1,796 |   |
| Payments                   |   |           | (3,597 | )      |   |   | (1,363 | ) |
|                       |   |           |   |   |   |   |   |   |
| Balance, End of Year       |   | $              | 2,519  |   |   | $      | 4,814 |   |

|                       |   | 2011           |   |   | 2010   |   |   | 2009   |   |
|----------------------------|--------|----------------|--------|--------|--------|--------|--------|--------|--------|
|                       |   | (In Thousands) |   |
|                       |   |           |   |   |   |   |   |   |   |
| Balance, Beginning of Year |   | $              | 1,759  |   |   | $      | 1,661  |   |   | $ | 1,952 |   |
| Provision for Loan Losses  |   |           | 53     |   |   |   | 269    |   |   |   | 337 |   |
| Loan Recoveries            |   |           | 1      |   |   |   | 3      |   |   |   | - |   |
| Loans Charged-Off          |   |           | (8     | )      |   |   | (174   | )      |   |   | (628 | ) |
|                       |   |           |   |   |   |   |   |   |   |   |   |   |
| Balance, End of Year       |   | $              | 1,805  |   |   | $      | 1,759  |   |   | $ | 1,661 |   |

----

----

| Note 3. | Loans (Continued) |
|---------|-------------------|

|                                                   |   | Real Estate Secured Mortgage Loans |    |   |                   |   |   |                    |   |
|--------------------------------------------------------|--------|------------------------------------|---------|--------|------------------------|--------|--------|-------------------------|--------|
| December 31, 2011                                      |   | 1-4 FamilyResidential              |    |   | Home EquityLoans/Lines |   |   | Multi-FamilyResidential |   |   | Commercial |   |   | Land |   |   | Consumerand Other |   |   | Total |   |
|                                                   |   | (In Thousands)                     |    |
| Balance, Beginning of Year                             |   | $                                  | 858     |   |                   | $      | 270    |                    |   | $ | 100 |   |   | $ | 442 |   |   | $ | 9 |   |   | $ | 80 |   |   | $ | 1,759 |   |
| Provision for (Recovery of) Loan Losses                |   |                               | 33      |   |                   |   | (58    | )                       |   |   | 48 |   |   |   | 43 |   |   |   | (7 | ) |   |   | (6 | ) |   |   | 53 |   |
| Loans Charged-Off                                      |   |                               | (2      | )      |                   |   | (6     | )                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (8 | ) |
| Recoveries of Prior Charge-Offs                        |   |                               | -       |   |                   |   | 1      |                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1 |   |
|                                                   |   |                               |    |   |                   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, End of Year                                   |   | $                                  | 889     |   |                   | $      | 207    |                    |   | $ | 148 |   |   | $ | 485 |   |   | $ | 2 |   |   | $ | 74 |   |   | $ | 1,805 |   |
|                                                   |   |                               |    |   |                   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balance Allocated to:                           |   |                               |    |   |                   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans Individually Evaluated for Impairment            |   | $                                  | 2       |   |                   | $      | 61     |                    |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 65 |   |   | $ | 128 |   |
| Loans Collectively Evaluated for Impairment            |   |                               | 887     |   |                   |   | 146    |                    |   |   | 148 |   |   |   | 485 |   |   |   | 2 |   |   |   | 9 |   |   |   | 1,677 |   |
|                                                   |   | $                                  | 889     |   |                   | $      | 207    |                    |   | $ | 148 |   |   | $ | 485 |   |   | $ | 2 |   |   | $ | 74 |   |   | $ | 1,805 |   |
|                                                   |   |                               |    |   |                   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Loan Balance Disaggregated by Evaluation Method |   |                               |    |   |                   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans Individually Evaluated for Impairment            |   | $                                  | -       |   |                   | $      | 167    |                    |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 65 |   |   | $ | 232 |   |
| Loans Collectively Evaluated for Impairment            |   |                               | 105,718 |   |                   |   | 18,300 |                    |   |   | 14,591 |   |   |   | 56,492 |   |   |   | 1,299 |   |   |   | 955 |   |   |   | 197,355 |   |
|                                                   |   | $                                  | 105,718 |   |                   | $      | 18,467 |                    |   | $ | 14,591 |   |   | $ | 56,492 |   |   | $ | 1,299 |   |   | $ | 1,020 |   |   | $ | 197,587 |   |

|                                                   |   | Real Estate Secured Mortgage Loans |   |   |                   |   |   |                    |   |
|--------------------------------------------------------|--------|------------------------------------|--------|--------|------------------------|--------|--------|-------------------------|--------|
| December 31, 2010                                      |   | 1-4 FamilyResidential              |   |   | Home EquityLoans/Lines |   |   | Multi-FamilyResidential |   |   | Commercial |   |   | Land |   |   | Consumerand Other |   |   | Total |   |
|                                                   |   | (In Thousands)                     |   |
| Balance, Beginning of Year                             |   | $                                  | 726    |   |                   | $      | 273    |                    |   | $ | 167 |   |   | $ | 397 |   |   | $ | 10 |   |   | $ | 88 |   |   | $ | 1,661 |   |
| Provision for (Recovery of) Loan Losses                |   |                               | 129    |   |                   |   | -      |                    |   |   | 104 |   |   |   | 45 |   |   |   | (1 | ) |   |   | (8 | ) |   |   | 269 |   |
| Loans Charged-Off                                      |   |                               | -      |   |                   |   | (3     | )                       |   |   | (171 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (174 | ) |
| Recoveries of Prior Charge-Offs                        |   |                               | 3      |   |                   |   | -      |                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3 |   |
|                                                   |   |                               |   |   |                   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, End of Year                                   |   | $                                  | 858    |   |                   | $      | 270    |                    |   | $ | 100 |   |   | $ | 442 |   |   | $ | 9 |   |   | $ | 80 |   |   | $ | 1,759 |   |
|                                                   |   |                               |   |   |                   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balance Allocated to:                           |   |                               |   |   |                   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans Individually Evaluated for Impairment            |   | $                                  | -      |   |                   | $      | 152    |                    |   | $ | - |   |   | $ | - |   |   | $ | 1 |   |   | $ | 69 |   |   | $ | 222 |   |
| Loans Collectively Evaluated for Impairment            |   |                               | 858    |   |                   |   | 118    |                    |   |   | 100 |   |   |   | 442 |   |   |   | 8 |   |   |   | 11 |   |   |   | 1,537 |   |
|                                                   |   | $                                  | 858    |   |                   | $      | 270    |                    |   | $ | 100 |   |   | $ | 442 |   |   | $ | 9 |   |   | $ | 80 |   |   | $ | 1,759 |   |
|                                                   |   |                               |   |   |                   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Loan Balance Disaggregated by Evaluation Method |   |                               |   |   |                   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans Individually Evaluated for Impairment            |   | $                                  | -      |   |                   | $      | 341    |                    |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 69 |   |   | $ | 410 |   |
| Loans Collectively Evaluated for Impairment            |   |                               | 98,635 |   |                   |   | 15,404 |                    |   |   | 11,785 |   |   |   | 52,594 |   |   |   | 951 |   |   |   | 1,295 |   |   |   | 180,664 |   |
|                                                   |   | $                                  | 98,635 |   |                   | $      | 15,745 |                    |   | $ | 11,785 |   |   | $ | 52,594 |   |   | $ | 951 |   |   | $ | 1,364 |   |   | $ | 181,074 |   |

----

----

| Note 3. | Loans (Continued) |
|---------|-------------------|

|                                          |   | 2011           |   |   | 2010   |   |
|-----------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                          |   | (In Thousands) |   |
|                                          |   |           |   |   |   |   |
| Impaired Loans Requiring a Loss Allowance     |   | $              | 232    |   |   | $      | 410 |   |
| Imparied Loans not Requiring a Loss Allowance |   |           | 842    |   |   |   | 498 |   |
|                                          |   |           |   |   |   |   |   |   |
| Total Impaired Loans                          |   | $              | 1,074  |   |   | $      | 908 |   |
|                                          |   |           |   |   |   |   |   |   |
| Loss Allowance on Impaired Loans              |   | $              | 128    |   |   | $      | 222 |   |

| As of December 31, 2011                   |   | RecordedInvestment |   |   | UnpaidPrincipalBalance |   |   | RelatedAllowance |   |   | AverageRecordedInvestmentYTD |   |   | InterestIncomeRecognized |   |
|-------------------------------------------|--------|--------------------|--------|--------|------------------------|--------|--------|------------------|--------|--------|------------------------------|--------|--------|--------------------------|--------|
|                                      |   | (In Thousands)     |   |
| Impaired Loans with No Related Allowance: |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |
| Loans Secured by Mortgages on Real Estate |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |
| 1-4 Family Residential                    |   | $                  | 110    |   |                   | $      | 110    |             |   | $      | -                            |   |   | $                        | 95     |   |   | $ | 4 |   |
| Home Equity Loans and Lines               |   |               | 402    |   |                   |   | 402    |             |   |   | -                            |   |   |                     | 346    |   |   |   | 10 |   |
| Multi-Family Residential                  |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | -      |   |   |   | - |   |
| Commercial Real Estate                    |   |               | 330    |   |                   |   | 330    |             |   |   | -                            |   |   |                     | 66     |   |   |   | 16 |   |
| Land                                      |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | 14     |   |   |   | - |   |
| Consumer and Other Loans                  |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | 8      |   |   |   | - |   |
|                                      |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Total                                     |   | $                  | 842    |   |                   | $      | 842    |             |   | $      | -                            |   |   | $                        | 529    |   |   | $ | 30 |   |
|                                      |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Impaired Loans with a Related Allowance:  |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Loans Secured by Mortgages on Real Estate |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |
| 1-4 Family Residential                    |   | $                  | -      |   |                   | $      | -      |             |   | $      | 2                            |   |   | $                        | -      |   |   | $ | - |   |
| Home Equity Loans and Lines               |   |               | 167    |   |                   |   | 167    |             |   |   | 61                           |   |   |                     | 233    |   |   |   | 17 |   |
| Multi-Family Residential                  |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | -      |   |   |   | - |   |
| Commercial Real Estate                    |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | -      |   |   |   | - |   |
| Land                                      |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | -      |   |   |   | - |   |
| Consumer and Other Loans                  |   |               | 65     |   |                   |   | 65     |             |   |   | 65                           |   |   |                     | 67     |   |   |   | 5 |   |
|                                      |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Total                                     |   | $                  | 232    |   |                   | $      | 232    |             |   | $      | 128                          |   |   | $                        | 300    |   |   | $ | 22 |   |
|                                      |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Total Impaired Loans                      |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Loans Secured by Mortgages on Real Estate |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |
| 1-4 Family Residential                    |   | $                  | 110    |   |                   | $      | 110    |             |   |   | 2                            |   |   | $                        | 95     |   |   | $ | 4 |   |
| Home Equity Loans and Lines               |   |               | 569    |   |                   |   | 569    |             |   |   | 61                           |   |   |                     | 579    |   |   |   | 27 |   |
| Multi-Family Residential                  |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | -      |   |   |   | - |   |
| Commercial Real Estate                    |   |               | 330    |   |                   |   | 330    |             |   |   | -                            |   |   |                     | 66     |   |   |   | 16 |   |
| Land                                      |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | 14     |   |   |   | - |   |
| Consumer and Other Loans                  |   |               | 65     |   |                   |   | 65     |             |   |   | 65                           |   |   |                     | 75     |   |   |   | 5 |   |
|                                      |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Total                                     |   | $                  | 1,074  |   |                   | $      | 1,074  |             |   | $      | 128                          |   |   | $                        | 829    |   |   | $ | 52 |   |

----

----

| Note 3. | Loans (Continued) |
|---------|-------------------|

| As of December 31, 2010                   |   | RecordedInvestment |   |   | UnpaidPrincipalBalance |   |   | RelatedAllowance |   |   | AverageRecordedInvestmentYTD |   |   | InterestIncomeRecognized |   |
|-------------------------------------------|--------|--------------------|--------|--------|------------------------|--------|--------|------------------|--------|--------|------------------------------|--------|--------|--------------------------|--------|
|                                      |   | (In Thousands)     |   |
| Impaired Loans with No Related Allowance: |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |
| Loans Secured by Mortgages on Real Estate |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |
| 1-4 Family Residential                    |   | $                  | 123    |   |                   | $      | 123    |             |   | $      | -                            |   |   | $                        | 95     |   |   | $ | - |   |
| Home Equity Loans and Lines               |   |               | 341    |   |                   |   | 341    |             |   |   | -                            |   |   |                     | 209    |   |   |   | - |   |
| Multi-Family Residential                  |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | -      |   |   |   | - |   |
| Commercial Real Estate                    |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | -      |   |   |   | - |   |
| Land                                      |   |               | 34     |   |                   |   | 34     |             |   |   | -                            |   |   |                     | 7      |   |   |   | - |   |
| Consumer and Other Loans                  |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | -      |   |   |   | - |   |
|                                      |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Total                                     |   | $                  | 498    |   |                   | $      | 498    |             |   | $      | -                            |   |   | $                        | 311    |   |   | $ | - |   |
|                                      |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Impaired Loans with a Related Allowance:  |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Loans Secured by Mortgages on Real Estate |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| 1-4 Family Residential                    |   | $                  | -      |   |                   | $      | -      |             |   | $      | -                            |   |   | $                        | -      |   |   | $ | - |   |
| Home Equity Loans and Lines               |   |               | 341    |   |                   |   | 341    |             |   |   | 152                          |   |   |                     | 340    |   |   |   | - |   |
| Multi-Family Residential                  |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | 412    |   |   |   | - |   |
| Commercial Real Estate                    |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | -      |   |   |   | - |   |
| Land                                      |   |               | -      |   |                   |   | -      |             |   |   | 1                            |   |   |                     | -      |   |   |   | - |   |
| Consumer and Other Loans                  |   |               | 69     |   |                   |   | 69     |             |   |   | 69                           |   |   |                     | 71     |   |   |   | - |   |
|                                      |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Total                                     |   | $                  | 410    |   |                   | $      | 410    |             |   | $      | 222                          |   |   | $                        | 823    |   |   | $ | - |   |
|                                      |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Total Impaired Loans                      |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Loans Secured by Mortgages on Real Estate |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| 1-4 Family Residential                    |   | $                  | 123    |   |                   | $      | 123    |             |   | $      | -                            |   |   | $                        | 95     |   |   | $ | - |   |
| Home Equity Loans and Lines               |   |               | 682    |   |                   |   | 682    |             |   |   | 152                          |   |   |                     | 549    |   |   |   | - |   |
| Multi-Family Residential                  |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | 412    |   |   |   | - |   |
| Commercial Real Estate                    |   |               | -      |   |                   |   | -      |             |   |   | -                            |   |   |                     | -      |   |   |   | - |   |
| Land                                      |   |               | 34     |   |                   |   | 34     |             |   |   | 1                            |   |   |                     | 7      |   |   |   | - |   |
| Consumer and Other Loans                  |   |               | 69     |   |                   |   | 69     |             |   |   | 69                           |   |   |                     | 71     |   |   |   | - |   |
|                                      |   |               |   |   |                   |   |   |             |   |   |                         |   |   |                     |   |   |   |   |   |   |
| Total                                     |   | $                  | 908    |   |                   | $      | 908    |             |   | $      | 222                          |   |   | $                        | 1,134  |   |   | $ | - |   |

----

----

| Note 3. | Loans (Continued) |
|---------|-------------------|

|                   |   | Real Estate Secured Mortgage Loans |    |   |                   |   |   |                    |   |   |       |
|------------------------|--------|------------------------------------|---------|--------|------------------------|--------|--------|-------------------------|--------|--------|------------|
| December 31, 2011      |   | 1-4 FamilyResidential              |    |   | Home EquityLoans/Lines |   |   | Multi-FamilyResidential |   |   | Commercial |   |   | Land |   |   | Consumerand Other |   |   | Total |   |
|                   |   | (In Thousands)                     |    |
| Credit Classification: |   |                               |    |   |                   |   |   |                    |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pass                   |   | $                                  | 105,608 |   |                   | $      | 17,984 |                    |   | $      | 14,591     |   |   | $ | 56,162 |   |   | $ | 1,299 |   |   | $ | 955 |   |   | $ | 196,599 |   |
| Special Mention        |   |                               | -       |   |                   |   | -      |                    |   |   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Substandard            |   |                               | 110     |   |                   |   | 316    |                    |   |   | -          |   |   |   | 330 |   |   |   | - |   |   |   | - |   |   |   | 756 |   |
| Loss                   |   |                               | -       |   |                   |   | 167    |                    |   |   | -          |   |   |   | - |   |   |   | - |   |   |   | 65 |   |   |   | 232 |   |
| Total                  |   | $                                  | 105,718 |   |                   | $      | 18,467 |                    |   | $      | 14,591     |   |   | $ | 56,492 |   |   | $ | 1,299 |   |   | $ | 1,020 |   |   | $ | 197,587 |   |

|                   |   | Real Estate Secured Mortgage Loans |   |   |                   |   |   |                    |   |
|------------------------|--------|------------------------------------|--------|--------|------------------------|--------|--------|-------------------------|--------|
| December 31, 2010      |   | 1-4 FamilyResidential              |   |   | Home EquityLoans/Lines |   |   | Multi-FamilyResidential |   |   | Commercial |   |   | Land |   |   | Consumerand Other |   |   | Total |   |
|                   |   | (In Thousands)                     |   |
| Credit Classification: |   |                               |   |   |                   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Pass                   |   | $                                  | 98,512 |   |                   | $      | 15,086 |                    |   | $ | 11,785 |   |   | $ | 52,594 |   |   | $ | 917 |   |   | $ | 1,295 |   |   | $ | 180,189 |   |
| Special Mention        |   |                               | -      |   |                   |   | 130    |                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 130 |   |
| Substandard            |   |                               | 123    |   |                   |   | 318    |                    |   |   | - |   |   |   | - |   |   |   | 34 |   |   |   | - |   |   |   | 475 |   |
| Loss                   |   |                               | -      |   |                   |   | 211    |                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 69 |   |   |   | 280 |   |
| Total                  |   | $                                  | 98,635 |   |                   | $      | 15,745 |                    |   | $ | 11,785 |   |   | $ | 52,594 |   |   | $ | 951 |   |   | $ | 1,364 |   |   | $ | 181,074 |   |

| Note 4. | Accrued Interest Receivable |
|---------|-----------------------------|

|                       |   | 2011           |   |   | 2010   |   |
|----------------------------|--------|----------------|--------|--------|--------|--------|
|                       |   | (In Thousands) |   |
| Loans                      |   | $              | 755    |   |   | $      | 760 |   |
| Investments                |   |           | 74     |   |   |   | 120 |   |
| Mortgage-Backed Securities |   |           | 252    |   |   |   | 316 |   |
|                       |   |           |   |   |   |   |   |   |
| Total Accrued Interest     |   | $              | 1,081  |   |   | $      | 1,196 |   |

----

----

| Note 5. | Premises and Equipment |
|---------|------------------------|

|                                      |   | 2011           |   |   | 2010   |   |
|-------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                      |   | (In Thousands) |   |
| Land, Buildings and Improvements          |   | $              | 4,045  |   |   | $      | 4,018 |   |
| Furniture and Fixtures                    |   |           | 1,793  |   |   |   | 1,804 |   |
| Automobiles                               |   |           | 96     |   |   |   | 94 |   |
|                                      |   |           | 5,934  |   |   |   | 5,916 |   |
| Accumulated Depreciation and Amortization |   |           | (4,298 | )      |   |   | (4,228 | ) |
|                                      |   |           |   |   |   |   |   |   |
| Total                                     |   | $              | 1,636  |   |   | $      | 1,688 |   |

| Note 6. | Deposits |
|---------|----------|

|                    |   | Weighted-Average     |   |   | Account Balances at December 31, |   |
|-------------------------|--------|----------------------|--------|--------|----------------------------------|--------|
|                    |   | Rate at December 31, |   |   | 2011                             |   |   | 2010 |   |
|                    |   | 2011                 |   |   | 2010                             |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                    |   |                 |   |   |                             |   |   | (In Thousands) |   |
|                    |   |                 |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW and MMDA            |   |                 | 0.20   | %      |                             |   | 0.28 | % |   | $ | 28,487 |   |   |   | 15.44 | % |   | $ | 26,030 |   |   |   | 14.44 | % |
| Savings Accounts        |   |                 | 0.25   | %      |                             |   | 0.50 | % |   |   | 21,621 |   |   |   | 11.71 | % |   |   | 19,368 |   |   |   | 10.75 | % |
| Certificates of Deposit |   |                 | 1.67   | %      |                             |   | 2.07 | % |   |   | 134,454 |   |   |   | 72.85 | % |   |   | 134,834 |   |   |   | 74.81 | % |
|                    |   |                 |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                   |   |                 |   |   |                             |   |   |   |   | $ | 184,562 |   |   |   | 100.00 | % |   | $ | 180,232 |   |   |   | 100.00 | % |

----

----

| Note 6. | Deposits (Continued) |
|---------|----------------------|

|                          |   | Amount |    |   | Percent |   |
|-------------------------------|--------|--------|---------|--------|---------|--------|
| Certificate Accounts Maturing |   |   |    |   |    |   |
| One Year or Less              |   | $      | 85,713  |   |    |   | 63.75 | % |
| One to Two Years              |   |   | 14,562  |   |    |   | 10.83 | % |
| Two to Three Years            |   |   | 18,232  |   |    |   | 13.56 | % |
| Three to Five Years           |   |   | 15,947  |   |    |   | 11.86 | % |
|                          |   |   |    |   |    |   |   |   |
| Total                         |   | $      | 134,454 |   |    |   | 100.00 | % |

|                             |   | 2011           |   |   | 2010   |   |   | 2009   |   |
|----------------------------------|--------|----------------|--------|--------|--------|--------|--------|--------|--------|
|                             |   | (In Thousands) |   |
|                             |   |           |   |   |   |   |   |   |   |
| Certificates of Deposit          |   | $              | 2,506  |   |   | $      | 3,032  |   |   | $ | 3,537 |   |
| Interest Bearing Demand Deposits |   |           | 58     |   |   |   | 70     |   |   |   | 84 |   |
| Savings Accounts                 |   |           | 82     |   |   |   | 92     |   |   |   | 93 |   |
|                             |   |           |   |   |   |   |   |   |   |   |   |   |
| Total                            |   | $              | 2,646  |   |   | $      | 3,194  |   |   | $ | 3,714 |   |

| Note 7. | Borrowings |
|---------|------------|

----

----

| Note 7. | Borrowings (Continued) |
|---------|------------------------|

|          |   | FHLB Advance Total |   |
|---------------|--------|--------------------|--------|
| Contract Rate |   | 2011               |   |   | 2010 |   |
|          |   | (In Thousands)     |   |
| 0% - 0.99%    |   | $                  | -      |   |   | $ | - |   |
| 1% - 1.99%    |   |               | -      |   |   |   | - |   |
| 2% - 2.99%    |   |               | 651    |   |   |   | 458 |   |
| 3% - 3.99%    |   |               | 13,626 |   |   |   | 21,097 |   |
| 4% - 4.99%    |   |               | 16,367 |   |   |   | 18,411 |   |
| 5% - 5.99%    |   |               | 469    |   |   |   | 2,282 |   |
|          |   |               |   |   |   |   |   |   |
| Total         |   | $                  | 31,113 |   |   | $ | 42,248 |   |

| Year EndingDecember 31, |   |   | AmountMaturing |   |
|-------------------------|--------|--------|----------------|--------|
|                    |   |   | (In Thousands) |   |
| 2012                    |   |   | $              | 8,938  |   |
| 2013                    |   |   |           | 3,991  |   |
| 2014                    |   |   |           | 65     |   |
| 2015                    |   |   |           | 7,023  |   |
| 2016                    |   |   |           | 6,935  |   |
| Thereafter              |   |   |           | 4,161  |   |
|                    |   |   |           |   |   |
| Total                   |   |   | $              | 31,113 |   |

----

----

| Note 7. | Borrowings (Continued) |
|---------|------------------------|

|          |   | Repurchase Agreement Total |   |
|---------------|--------|----------------------------|--------|
| Contract Rate |   | 2011                       |   |   | 2010 |   |
|          |   | (In Thousands)             |   |
| 3% - 3.99%    |   | $                          | 16,000 |   |   | $ | 16,000 |   |
| 4% - 4.99%    |   |                       | 10,000 |   |   |   | 10,000 |   |
| Total         |   | $                          | 26,000 |   |   | $ | 26,000 |   |

| Year EndingDecember 31, |   |   | AmountMaturing |   |
|-------------------------|--------|--------|----------------|--------|
|                    |   |   | (In Thousands) |   |
| 2012                    |   |   | $              | 10,000 |   |
| 2013                    |   |   |           | 16,000 |   |
| Total                   |   |   | $              | 26,000 |   |

| Note 8. | Income Taxes |
|---------|--------------|

|                                                     |   | 2011           |   |   | 2010   |   |
|----------------------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                                     |   | (In Thousands) |   |
| Deferred Tax Assets                                      |   |           |   |   |   |   |
| Allowance for Loan Losses                                |   | $              | 470    |   |   | $      | 523 |   |
| Deferred Loan Fees                                       |   |           | 51     |   |   |   | 69 |   |
| Deferred Compensation                                    |   |           | 567    |   |   |   | 528 |   |
| OREO Write Down                                          |   |           | 95     |   |   |   | 80 |   |
| Stock Options                                            |   |           | 208    |   |   |   | 154 |   |
| Other                                                    |   |           | 36     |   |   |   | 89 |   |
|                                                     |   |           |   |   |   |   |   |   |
| Total Deferred Tax Assets                                |   |           | 1,427  |   |   |   | 1,443 |   |
|                                                     |   |           |   |   |   |   |   |   |
| Deferred Tax Liabilities                                 |   |           |   |   |   |   |   |   |
| Market Value Adjustment to Available-for-Sale Securities |   |           | (330   | )      |   |   | (360 | ) |
| FHLB Stock Dividends                                     |   |           | (101   | )      |   |   | (132 | ) |
|                                                     |   |           |   |   |   |   |   |   |
| Total Deferred Tax Liabilities                           |   |           | (431   | )      |   |   | (492 | ) |
|                                                     |   |           |   |   |   |   |   |   |
| Net Deferred Tax Asset                                   |   | $              | 996    |   |   | $      | 951 |   |

----

----

| Note 8. | Income Taxes (Continued) |
|---------|--------------------------|

|                 |   | 2011           |   |   | 2010   |   |   | 2009   |   |
|----------------------|--------|----------------|--------|--------|--------|--------|--------|--------|--------|
|                 |   | (In Thousands) |   |
| Current Expense      |   | $              | 1,346  |   |   | $      | 1,554  |   |   | $ | 1,773 |   |
| Deferred Tax Benefit |   |           | (190   | )      |   |   | (387   | )      |   |   | (343 | ) |
|                 |   |           |   |   |   |   |   |   |   |   |   |   |
| Total                |   | $              | 1,156  |   |   | $      | 1,167  |   |   | $ | 1,430 |   |

|                        |   | 2011           |   |   | 2010   |   |   | 2009   |   |
|-----------------------------|--------|----------------|--------|--------|--------|--------|--------|--------|--------|
|                        |   | (In Thousands) |   |
| Expected Tax Provision      |   | $              | 1,113  |   |   |   | 34.0   | %      |   | $ | 1,266 |   |   |   | 34.0 | % |   | $ | 1,348 |   |   |   | 34.0 | % |
| Non-Deductible Expenses     |   |           | 8      |   |   |   | 0.2    |   |   |   | 3 |   |   |   | 0.1 |   |   |   | 4 |   |   |   | 0.1 |   |
| Effect of Tax Exempt Income |   |           | (1     | )      |   |   | (0.0   | )      |   |   | (17 | ) |   |   | (0.5 | ) |   |   | (19 | ) |   |   | (0.5 | ) |
| Other                       |   |           | 36     |   |   |   | 1.1    |   |   |   | (85 | ) |   |   | 2.3 |   |   |   | 97 |   |   |   | 2.4 |   |
|                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                       |   | $              | 1,156  |   |   |   | 35.3   | %      |   | $ | 1,167 |   |   |   | 35.9 | % |   | $ | 1,430 |   |   |   | 36.0 | % |

----

----

| Note 9. | Comprehensive Income |
|---------|----------------------|

|                                                         |   | 2011           |   |   | 2010   |   |   | 2009   |   |
|--------------------------------------------------------------|--------|----------------|--------|--------|--------|--------|--------|--------|--------|
|                                                         |   | (In Thousands) |   |
| Gross Unrealized Holding Losses Arising During the Period    |   | $              | (18    | )      |   | $      | (139   | )      |   | $ | (226 | ) |
| Tax Benefit                                                  |   |           | 6      |   |   |   | 47     |   |   |   | 77 |   |
|                                                         |   |           |   |   |   |   |   |   |   |   |   |   |
| Total                                                        |   |           | (12    | )      |   |   | (92    | )      |   |   | (149 | ) |
|                                                         |   |           |   |   |   |   |   |   |   |   |   |   |
| Reclassification Adjustment for Gains Included in Net Income |   |           | (72    | )      |   |   | (194   | )      |   |   | (406 | ) |
| Tax Expense                                                  |   |           | 24     |   |   |   | 66     |   |   |   | 138 |   |
|                                                         |   |           |   |   |   |   |   |   |   |   |   |   |
| Total                                                        |   |           | (48    | )      |   |   | (128   | )      |   |   | (268 | ) |
|                                                         |   |           |   |   |   |   |   |   |   |   |   |   |
| Net Unrealized Holding Losses Arising During the Period      |   | $              | (60    | )      |   | $      | (220   | )      |   | $ | (417 | ) |

| Note 10. | Regulatory Matters |
|----------|--------------------|

----

----

| Note 10. | Regulatory Matters (Continued) |
|----------|--------------------------------|

|                      |   | Actual                 |   |   | Minimum for AdequacyPurposes |   |   | Minimum to be WellCapitalized UnderPrompt CorrectiveAction Provisions |   |
|---------------------------|--------|------------------------|--------|--------|------------------------------|--------|--------|-----------------------------------------------------------------------|--------|
|                      |   | Amount                 |   |   | Ratio                        |   |   | Amount                                                                |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                      |   | (Dollars in Thousands) |   |
| December 31, 2011         |   |                   |   |   |                         |   |   |                                                                  |   |   |   |   |   |   |   |   |   |   |
| Tangible Capital          |   | $                      | 46,684 |   |                         |   | 15.00  | %                                                                     |   | $ | 4,668 |   |   |   | 1.50 | % |   |   | N/A |   |   |   | N/A |   |
| Core/Leverage Capital     |   |                   | 46,684 |   |                         |   | 15.00  | %                                                                     |   |   | 9,336 |   |   |   | 3.00 | % |   | $ | 15,560 |   |   |   | 5.00 | % |
| Tier 1 Risk-Based Capital |   |                   | 46,623 |   |                         |   | 29.32  | %                                                                     |   |   | 6,360 |   |   |   | 4.00 | % |   |   | 9,540 |   |   |   | 6.00 | % |
| Total Risk-Based Capital  |   |                   | 48,300 |   |                         |   | 30.38  | %                                                                     |   |   | 12,720 |   |   |   | 8.00 | % |   |   | 15,900 |   |   |   | 10.00 | % |
|                      |   |                   |   |   |                         |   |   |                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010         |   |                   |   |   |                         |   |   |                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible Capital          |   | $                      | 51,060 |   |                         |   | 16.02  | %                                                                     |   | $ | 4,780 |   |   |   | 1.50 | % |   |   | N/A |   |   |   | N/A |   |
| Core/Leverage Capital     |   |                   | 51,060 |   |                         |   | 16.02  | %                                                                     |   |   | 9,559 |   |   |   | 3.00 | % |   | $ | 15,932 |   |   |   | 5.00 | % |
| Tier 1 Risk-Based Capital |   |                   | 50,999 |   |                         |   | 33.68  | %                                                                     |   |   | 6,056 |   |   |   | 4.00 | % |   |   | 9,084 |   |   |   | 6.00 | % |
| Total Risk-Based Capital  |   |                   | 52,537 |   |                         |   | 34.70  | %                                                                     |   |   | 12,112 |   |   |   | 8.00 | % |   |   | 15,140 |   |   |   | 10.00 | % |

|                                              |   | 2011           |   |   | 2010   |   |
|---------------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                              |   | (In Thousands) |   |
|                                              |   |           |   |   |   |   |
| Capital Under GAAP                                |   | $              | 47,277 |   |   | $      | 51,697 |   |
| Unrealized Gains on Available-for-Sale Securities |   |           | (593   | )      |   |   | (637 | ) |
|                                              |   |           |   |   |   |   |   |   |
| Tier 1 Capital                                    |   |           | 46,684 |   |   |   | 51,060 |   |
|                                              |   |           |   |   |   |   |   |   |
| Allowance for Loan Losses                         |   |           | 1,677  |   |   |   | 1,538 |   |
| Recourse Obligations                              |   |           | (61    | )      |   |   | (61 | ) |
|                                              |   |           |   |   |   |   |   |   |
| Total Risk-Based Capital                          |   | $              | 48,300 |   |   | $      | 52,537 |   |

----

----

| Note 11. | Financial Instruments with Off-Balance Sheet Risk |
|----------|---------------------------------------------------|

| Note 12. | Commitments and Contingencies |
|----------|-------------------------------|

| Years EndingDecember 31, |   |   | Amount |   |
|--------------------------|--------|--------|--------|--------|
|                     |   |   |   |   |
| 2012                     |   |   | $      | 34     |   |
| 2013                     |   |   |   | 34     |   |
| 2014                     |   |   |   | 34     |   |
| 2015                     |   |   |   | 34     |   |
| 2016                     |   |   |   | 9      |   |
|                     |   |   |   |   |   |
| Total                    |   |   | $      | 145    |   |

----

----

| Note 12. | Commitments and Contingencies (Continued) |
|----------|-------------------------------------------|

| Years EndingDecember 31, |   |   | Amount |   |
|--------------------------|--------|--------|--------|--------|
|                     |   |   |   |   |
| 2012                     |   |   | $      | 20     |   |
| 2013                     |   |   |   | 20     |   |
| 2014                     |   |   |   | 5      |   |
|                     |   |   |   |   |   |
| Total                    |   |   | $      | 45     |   |

| Years EndingDecember 31, |   |   | Amount |      |
|--------------------------|--------|--------|--------|-----------|
|                     |   |   |   |      |
| 2012                     |   |   | $      | 430,000   |   |
| 2013                     |   |   |   | 430,000   |   |
| 2014                     |   |   |   | 370,000   |   |
|                     |   |   |   |      |   |
| Total                    |   |   | $      | 1,230,000 |   |

| Note 13. | Concentration of Credit Risk |
|----------|------------------------------|

----

----

| Note 14. | Estimated Fair Value of Financial Instruments |
|----------|-----------------------------------------------|

----

----

| Note 14. | Estimated Fair Value of Financial Instruments (Continued) |
|----------|-----------------------------------------------------------|

|                               |   | December 31, 2011 |    |   | December 31, 2010 |   |
|------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                               |   | CarryingAmount    |    |   | Fair Value        |   |   | CarryingAmount |   |   | Fair Value |   |
|                               |   | (In Thousands)    |    |
| Financial Assets                   |   |              |    |   |              |   |   |   |   |   |   |   |
| Cash and Cash Equivalents          |   | $                 | 27,589  |   |              | $      | 27,589 |   |   | $ | 6,610 |   |   | $ | 6,610 |   |
| Certificates of Deposit            |   |              | 742     |   |              |   | 745 |   |   |   | 635 |   |   |   | 640 |   |
| Securities                         |   |              | 82,331  |   |              |   | 85,817 |   |   |   | 126,028 |   |   |   | 129,844 |   |
|                               |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Loans                              |   |              | 197,437 |   |              |   | 206,594 |   |   |   | 180,869 |   |   |   | 187,846 |   |
| Less Allowance for Loan Losses     |   |              | (1,805  | )      |              |   | (1,805 | ) |   |   | (1,759 | ) |   |   | (1,759 | ) |
| Loans, Net of Allowance            |   |              | 195,632 |   |              |   | 204,789 |   |   |   | 179,110 |   |   |   | 186,087 |   |
|                               |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Federal Home Loan Bank Stock       |   |              | 1,543   |   |              |   | 1,543 |   |   |   | 2,002 |   |   |   | 2,002 |   |
|                               |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities              |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                           |   | $                 | 194,326 |   |              | $      | 200,413 |   |   | $ | 188,362 |   |   | $ | 193,225 |   |
| Borrowings                         |   |              | 57,113  |   |              |   | 60,489 |   |   |   | 68,248 |   |   |   | 71,556 |   |
|                               |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Unrecognized Financial Instruments |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to Extend Credit       |   | $                 | 18,518  |   |              | $      | 18,523 |   |   | $ | 17,398 |   |   | $ | 17,739 |   |

----

----

| Note 14. | Estimated Fair Value of Financial Instruments (Continued) |
|----------|-----------------------------------------------------------|

| ·   | Level 1 - Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | Level 2 - Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Note 14. | Estimated Fair Value of Financial Instruments (Continued) |
|----------|-----------------------------------------------------------|

|                                 |   | Fair Value Measurements |   |
|--------------------------------------|--------|-------------------------|--------|
| December 31, 2011                    |   | Total                   |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Assets:                              |   | (In Thousands)          |   |
| Available-for-Sale Securities        |   |                    |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities           |   | $                       | 10,356 |   |   | $ | - |   |   | $ | 10,356 |   |   | $ | - |   |
| US Government and Agency Obligations |   |                    | 12,211 |   |   |   | - |   |   |   | 12,211 |   |   |   | - |   |
| Equity Securities                    |   |                    | 183    |   |   |   | 183 |   |   |   | - |   |   |   | - |   |
|                                 |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                |   | $                       | 22,750 |   |   | $ | 183 |   |   | $ | 22,567 |   |   | $ | - |   |

|                                 |   | Fair Value Measurements |   |
|--------------------------------------|--------|-------------------------|--------|
| December 31, 2010                    |   | Total                   |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Assets:                              |   | (In Thousands)          |   |
| Available-for-Sale Securities        |   |                    |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities           |   | $                       | 15,383 |   |   | $ | - |   |   | $ | 15,383 |   |   | $ | - |   |
| US Government and Agency Obligations |   |                    | 47,106 |   |   |   | - |   |   |   | 47,106 |   |   |   | - |   |
| Loans Held-for-Sale                  |   |                    | 187    |   |   |   | 187 |   |   |   | - |   |   |   | - |   |
|                                 |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                |   | $                       | 62,676 |   |   | $ | 187 |   |   | $ | 62,489 |   |   | $ | - |   |

|                          |   | Fair Value Measurements |   |
|-------------------------------|--------|-------------------------|--------|
|  December 31, 2011       |   | Total                   |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|  Assets:                 |   | (In Thousands)          |   |
|  Impaired Loans          |   |                    | 947    |   |   |   | - |   |   |   | - |   |   |   | 947 |   |
|  Other Real Estate Owned |   |                    | 532    |   |   |   | - |   |   |   | 532 |   |   |   | - |   |
|                          |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Total                   |   |                    | 1,479  |   |   |   | - |   |   |   | 532 |   |   |   | 947 |   |

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

----

----

| Note 15. | Employee Benefits |
|----------|-------------------|

| Note 16. | Related Party Transactions |
|----------|----------------------------|

----

----

| Note 17. | Employee Stock Ownership Plan |
|----------|-------------------------------|

|                             |   | 2011   |      |   | 2010   |   |
|----------------------------------|--------|--------|-----------|--------|--------|--------|
| Allocated Shares                 |   |   | 88,838    |   |   |   | 63,455 |   |
| Shares Released for Allocation   |   |   | 25,383    |   |   |   | 25,383 |   |
| Unallocated Shares               |   |   | 393,438   |   |   |   | 418,821 |   |
|                             |   |   |      |   |   |   |   |   |
| Total ESOP Shares                |   |   | 507,659   |   |   |   | 507,659 |   |
|                             |   |   |      |   |   |   |   |   |
| Fair Value of Unallocated Shares |   | $      | 6,235,992 |   |   | $      | 6,114,787 |   |
|                             |   |   |      |   |   |   |   |   |
| Stock Price at December 31       |   | $      | 15.85     |   |   | $      | 14.60 |   |

----

----

| Note 18. | Recognition and Retention Plan |
|----------|--------------------------------|

|                        |   | Nonvested Shares |    |
|-----------------------------|--------|------------------|---------|
|                        |   | Shares           |    |   | Weighted-AverageGrant DateFair Value |   |
|                        |   |             |    |   |   |   |
| Balance - December 31, 2010 |   |             | 134,752 |   |   | $ | 11.66 |   |
| Granted                     |   |             | 4,000   |   |   |   | 15.36 |   |
| Vested                      |   |             | (44,184 | ) |   |   | 11.65 |   |
| Forfeited                   |   |             | -       |   |   |   | - |   |
|                        |   |             |    |   |   |   |   |   |
| Balance - December 31, 2011 |   |             | 94,568  |   |   | $ | 11.82 |   |

----

----

| Note 19. | Stock Option Plan |
|----------|-------------------|

|                                     |   | Shares |    |   | Weighted-AverageExercisePrice |   |   | Weighted-AverageRemainingContractTerm |   |   | RemainingContractTerm |   |   | AggregateIntrinsicValue |       |
|------------------------------------------|--------|--------|---------|--------|-------------------------------|--------|--------|---------------------------------------|--------|--------|-----------------------|--------|--------|-------------------------|------------|
|                                     |   |   |    |   |                          |   |   |                                  |   |   |                  |   |   |                    |       |
| Outstanding, December 31, 2010           |   |   | 532,197 |   |                          | $      | 11.79  |                                  |   |   |                  |   |   |                    |       |   |   |
| Options Granted                          |   |   | -       |   |                          |   | -      |                                  |   |   |                  |   |   |                    |       |   |   |
| Options Exercised                        |   |   | -       |   |                          |   | -      |                                  |   |   |                  |   |   |                    |       |   |   |
| Options Forfeited                        |   |   | (6,000  | )      |                          |   | 13.50  |                                  |   |   |                  |   |   |                    |       |   |   |
|                                     |   |   |    |   |                          |   |   |                                  |   |   |                  |   |   |                    |       |   |   |
| Outstanding, December 31, 2011           |   |   | 526,197 |   |                          | $      | 11.77  |                                  |   |   | 6.33 Years            |   |   |                    | 6.33 Years |   |   | $ | 2,146,393 |   |
|                                     |   |   |    |   |                          |   |   |                                  |   |   |                  |   |   |                    |       |   |   |   |   |   |
| Options Exercisable at December 31, 2011 |   |   | 309,118 |   |                          | $      | 11.72  |                                  |   |   | 6.29 Years            |   |   |                    | 6.29 Years |   |   | $ | 1,276,790 |   |

----

----

| Note 19. | Stock Option Plan (Continued) |
|----------|-------------------------------|

|                           |   | Shares |     |   | Weighted-AverageGrant DateFair Value |   |
|--------------------------------|--------|--------|----------|--------|--------------------------------------|--------|
| Nonvested at December 31, 2010 |   |   | 329,516  |   |                                 | $      | 11.86 |   |
| Options Granted                |   |   | -        |   |                                 |   | - |   |
| Options Vested                 |   |   | (106,440 | )      |                                 |   | 11.75 |   |
| Options Forfeited              |   |   | (6,000   | )      |                                 |   | 13.50 |   |
|                           |   |   |     |   |                                 |   |   |   |
| Nonvested at December 31, 2011 |   |   | 217,076  |   |                                 | $      | 11.87 |   |

----

----

| Note 20. | Earnings per Common Share |
|----------|---------------------------|

|                                       |   | 2011                                          |      |   | 2010   |   |      | 2009   |   |
|--------------------------------------------|--------|-----------------------------------------------|-----------|--------|--------|--------|-----------|--------|--------|
|                                       |   | (Dollars in Thousands, Except per Share Data) |      |
| Numerator                                  |   |                                          |      |   |   |   |      |   |   |
| Net Income                                 |   | $                                             | 2,117     |   |   | $      | 2,558     |   |   | $ | 2,534 |   |
| Effect of Dilutive Securities              |   |                                          | -         |   |   |   | -         |   |   |   | - |   |
|                                       |   |                                          |      |   |   |   |      |   |   |   |   |   |
| Numerator for Diluted Earnings Per Share   |   | $                                             | 2,117     |   |   | $      | 2,558     |   |   | $ | 2,534 |   |
|                                       |   |                                          |      |   |   |   |      |   |   |   |   |   |
| Denominator                                |   |                                          |      |   |   |   |      |   |   |   |   |   |
| Weighted-Average Shares Outstanding        |   |                                          | 2,902,747 |   |   |   | 3,640,521 |   |   |   | 4,659,328 |   |
| Effect of Potentially Dilutive Securities  |   |                                          | 125,286   |   |   |   | 106,056   |   |   |   | 72,559 |   |
|                                       |   |                                          |      |   |   |   |      |   |   |   |   |   |
| Denominator for Diluted Earnings Per Share |   |                                          | 3,028,033 |   |   |   | 3,746,577 |   |   |   | 4,731,887 |   |
|                                       |   |                                          |      |   |   |   |      |   |   |   |   |   |
| Earnings Per Share                         |   |                                          |      |   |   |   |      |   |   |   |   |   |
| Basic                                      |   | $                                             | 0.73      |   |   | $      | 0.71      |   |   | $ | 0.54 |   |
| Diluted                                    |   | $                                             | 0.70      |   |   | $      | 0.69      |   |   | $ | 0.54 |   |

|                         |   | 2011   |       |   | 2010   |   |       | 2009   |   |
|------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Average Common Shares Issued |   |   | 6,345,732  |   |   |   | 6,345,732  |   |   |   | 6,345,732 |   |
| Average Unearned ESOP Shares |   |   | (418,713   | )      |   |   | (444,134   | )      |   |   | (469,516 | ) |
| Average Unearned RRP Shares  |   |   | (127,228   | )      |   |   | (170,547   | )      |   |   | (215,150 | ) |
| Average Treasury Shares      |   |   | (2,897,044 | )      |   |   | (2,090,530 | )      |   |   | (1,001,738 | ) |
|                         |   |   |       |   |   |   |       |   |   |   |   |   |
|                         |   |   | 2,902,747  |   |   |   | 3,640,521  |   |   |   | 4,659,328 |   |

----

----

| Note 21. | Condensed Financial Information - Parent Company Only |
|----------|-------------------------------------------------------|

| LOUISIANA BANCORP, INC.                      |   |   |   |   |   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|
| Condensed Balance Sheets                     |   |   |   |   |   |   |
| As of December 31, 2011 and 2010             |   |   |   |   |   |   |
| (Dollars in Thousands)                       |   |   |   |   |   |   |
|                                         |   |   |   |   |   |   |
|                                         |   | 2011   |   |   | 2010   |   |
| Assets                                       |   |   |   |   |   |   |
| Cash and Cash Equivalents                    |   | $      | 4,144  |   |   | $      | 2,430 |   |
| Certificates of Deposits                     |   |   | 93     |   |   |   | 187 |   |
| Securities Available for Sale, at Fair Value |   |   | 1,084  |   |   |   | 1,336 |   |
| Investment in Subsidiary                     |   |   | 51,211 |   |   |   | 55,885 |   |
| Loan to ESOP                                 |   |   | 4,522  |   |   |   | 4,662 |   |
| Accrued Interest Receivable                  |   |   | 4      |   |   |   | 6 |   |
| Other Assets                                 |   |   | 410    |   |   |   | 69 |   |
|                                         |   |   |   |   |   |   |   |   |
| Total Assets                                 |   | $      | 61,468 |   |   | $      | 64,575 |   |
|                                         |   |   |   |   |   |   |   |   |
|                                         |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders' Equity         |   |   |   |   |   |   |   |   |
| Liabilities                                  |   |   |   |   |   |   |   |   |
| Due to Subsidiary                            |   | $      | -      |   |   | $      | 101 |   |
| Other Liabilities                            |   |   | 14     |   |   |   | 8 |   |
|                                         |   |   |   |   |   |   |   |   |
| Total Liabilities                            |   |   | 14     |   |   |   | 109 |   |
|                                         |   |   |   |   |   |   |   |   |
| Total Shareholders' Equity                   |   |   | 61,454 |   |   |   | 64,466 |   |
|                                         |   |   |   |   |   |   |   |   |
| Total Liabilities and Shareholders' Equity   |   | $      | 61,468 |   |   | $      | 64,575 |   |

----

----

| Note 21. | Condensed Financial Information - Parent Company Only (Continued) |
|----------|-------------------------------------------------------------------|

| LOUISIANA BANCORP, INC.                                             |   |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Statements of Operations                                            |   |   |   |   |   |   |   |   |   |
| For the Years Ended December 31, 2011, 2010 and 2009                |   |   |   |   |   |   |   |
| (Dollars in Thousands)                                              |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |
|                                                                |   | 2011   |   |   | 2010   |   |   | 2009   |   |
| Income                                                              |   |   |   |   |   |   |   |   |   |
| Interest Income ESOP Loan                                           |   | $      | 380    |   |   | $      | 391    |   |   | $ | 401 |   |
| Interest Income Investment Securities                               |   |   | 66     |   |   |   | 205    |   |   |   | 510 |   |
| Dividend Income from Subsidiary                                     |   |   | 6,800  |   |   |   | 9,882  |   |   |   | - |   |
| Other Interest Income                                               |   |   | 1      |   |   |   | 156    |   |   |   | 39 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Income                                                        |   |   | 7,247  |   |   |   | 10,634 |   |   |   | 950 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses                                                  |   |   | 313    |   |   |   | 302    |   |   |   | 385 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Income Before Income Taxes and Undistributed Earnings of Subsidiary |   |   | 6,934  |   |   |   | 10,332 |   |   |   | 565 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal Income Tax Expense                                          |   |   | (49    | )      |   |   | (142   | )      |   |   | (194 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity in Undistributed Earnings of Subsidiary                      |   |   | (4,768 | )      |   |   | (7,632 | )      |   |   | 2,163 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                          |   | $      | 2,117  |   |   | $      | 2,558  |   |   | $ | 2,534 |   |

----

----

| Note 21. | Condensed Financial Information - Parent Company Only (Continued) |
|----------|-------------------------------------------------------------------|

| LOUISIANA BANCORP, INC.                                      |   |   |   |   |   |   |    |   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
| Statements of Cash Flows                                     |   |   |   |   |   |   |    |   |   |
| For the Years Ended December 31, 2011, 2010 and 2009         |   |   |   |   |   |   |    |   |   |
| (Dollars in Thousands)                                       |   |   |   |   |   |   |    |   |   |
|                                                         |   |   |   |   |   |   |    |   |   |
|                                                         |   | 2011   |   |   | 2010   |   |    | 2009   |   |
| Cash Flows from Operating Activities                         |   |   |   |   |   |   |    |   |   |
| Net Income                                                   |   | $      | 2,117  |   |   | $      | 2,558   |   |   | $ | 2,534 |   |
| Adjustments to Reconcile Net Income to Net                   |   |   |   |   |   |   |    |   |   |   |   |   |
| Cash Provided by Operating Activities:                       |   |   |   |   |   |   |    |   |   |   |   |   |
| Equity in Undistributed Income of Subsidiaries               |   |   | 4,768  |   |   |   | 7,632   |   |   |   | (2,163 | ) |
| Net Increase in Recognition and Retention Plan Shares Earned |   |   | 514    |   |   |   | 514     |   |   |   | 516 |   |
| Stock Option Plan Expense                                    |   |   | 244    |   |   |   | 242     |   |   |   | 239 |   |
| Discount Accretion Net of Premium Amortization               |   |   | (2     | )      |   |   | (11     | )      |   |   | (24 | ) |
| Deferred Income Tax Benefit                                  |   |   | (30    | )      |   |   | (16     | )      |   |   | (18 | ) |
| Gain on Sale of Securities                                   |   |   | -      |   |   |   | (150    | )      |   |   | (7 | ) |
| Decrease in Accrued Interest Receivable                      |   |   | 2      |   |   |   | 52      |   |   |   | 90 |   |
| Increase in Other Assets                                     |   |   | (300   | )      |   |   | (46     | )      |   |   | (22 | ) |
| (Decrease) Increase in Due to Subsidiary                     |   |   | (101   | )      |   |   | (1      | )      |   |   | 95 |   |
| Increase (Decrease) in Other Liabilities                     |   |   | 3      |   |   |   | (5      | )      |   |   | (128 | ) |
|                                                         |   |   |   |   |   |   |    |   |   |   |   |   |
| Net Cash Provided by Operating Activities                    |   |   | 7,215  |   |   |   | 10,769  |   |   |   | 1,112 |   |
|                                                         |   |   |   |   |   |   |    |   |   |   |   |   |
| Cash Flows from Investing Activities                         |   |   |   |   |   |   |    |   |   |   |   |   |
| Purchases of Certificates of Deposit                         |   |   | (16    | )      |   |   | (77     | )      |   |   | (1,280 | ) |
| Purchases of Investment Securities - Available-for-Sale      |   |   | (1,500 | )      |   |   | -       |   |   |   | (3,997 | ) |
| Proceeds from Maturities of Certificates of Deposit          |   |   | 110    |   |   |   | 822     |   |   |   | 982 |   |
| Proceeds from Maturities of Securities Available-for-Sale    |   |   | 1,914  |   |   |   | 1,097   |   |   |   | 12,112 |   |
| Proceeds from Sales of Securities Available-for-Sale         |   |   | -      |   |   |   | 5,135   |   |   |   | 5,007 |   |
| Repayments of ESOP Loan by Subsidiary                        |   |   | 139    |   |   |   | 128     |   |   |   | 118 |   |
|                                                         |   |   |   |   |   |   |    |   |   |   |   |   |
| Net Cash Provided by Investing Activities                    |   |   | 647    |   |   |   | 7,105   |   |   |   | 12,942 |   |
|                                                         |   |   |   |   |   |   |    |   |   |   |   |   |
| Cash Flows from Financing Activities                         |   |   |   |   |   |   |    |   |   |   |   |   |
| Purchase of Treasury Stock                                   |   |   | (5,965 | )      |   |   | (16,628 | )      |   |   | (15,595 | ) |
| Proceeds from Exercise of Stock Options                      |   |   | -      |   |   |   | 93      |   |   |   | - |   |
|                                                         |   |   |   |   |   |   |    |   |   |   |   |   |
| Net Cash Used in Financing Activities                        |   |   | (5,965 | )      |   |   | (16,535 | )      |   |   | (15,595 | ) |
|                                                         |   |   |   |   |   |   |    |   |   |   |   |   |
| Net Increase (Decrease) in Cash and Cash Equivalents         |   |   | 1,897  |   |   |   | 1,339   |   |   |   | (1,541 | ) |
|                                                         |   |   |   |   |   |   |    |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Year                 |   |   | 2,430  |   |   |   | 1,091   |   |   |   | 2,632 |   |
|                                                         |   |   |   |   |   |   |    |   |   |   |   |   |
| Cash and Cash Equivalents, End of Year                       |   | $      | 4,327  |   |   | $      | 2,430   |   |   | $ | 1,091 |   |

----

----

| Note 22. | Plan of Reorganization and Stock Issuance |
|----------|-------------------------------------------|

| Note 23. | Subsequent Events |
|----------|-------------------|

----

PART 

Item 

| (a)  | (1) | The following financial statements are incorporated by reference from Item 8 hereof: |
|-----------|-----|--------------------------------------------------------------------------------------|

| Consolidated Statements of Financial Condition as of December 31, 2011 and 2010                                                                                                                                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Consolidated Statements of Income for the Years Ended December 31, 2011, 2010 and 2009                                                                                                                         |
| Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2011, 2010 and 2009Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2011, 2010 and 2009 |
| Consolidated Statements of Cash Flows for the Years Ended December 31, 2011, 2010 and 2009                                                                                                                     |
| Notes to Consolidated Financial Statements                                                                                                                                                                     |

|   | (2) | All schedules are omitted because they are not required or applicable, or the required information is shown in the consolidated financial statements or the notes thereto. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)                                                                                                  | Exhibits |
|--------|------------------------------------------------------------------------------------------------------|----------|
|   | The following exhibits are filed as part of this Form 10-K and this list includes the Exhibit Index. |

| No.  |   | Description                                                                                                                                                         |   | Location       |
|------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|
| 3.1  |   | Articles of Incorporation of Louisiana Bancorp, Inc.                                                                                                                |   | (1)            |
| 3.2  |   | Bylaws of Louisiana Bancorp, Inc.                                                                                                                                   |   | (1)            |
| 4.0  |   | Form of Common Stock Certificate of Louisiana Bancorp, Inc.                                                                                                         |   | (1)            |
| 10.1 |   | Amended and Restated Supplemental Executive Retirement Plan with Lawrence J. LeBon, III*                                                                            |   | (2)            |
| 10.2 |   | Amended and Restated Supplement Executive Retirement Plan with John LeBlanc*                                                                                        |   | (2)            |
| 10.3 |   | Amended and Restated Directors Deferred Compensation Plan*                                                                                                          |   | (2)            |
| 10.4 |   | Amended and Restated Employment Agreement between Louisiana Bancorp, Inc. and Lawrence J. LeBon, III*                                                               |   | (2)            |
| 10.5 |   | Amended and Restated Employment Agreement between Bank of New Orleans and Lawrence J. LeBon, III*                                                                   |   | (2)            |
| 10.6 |   | Amended and Restated Employment Agreement between Louisiana Bancorp, Inc. and John LeBlanc*                                                                         |   | (2)            |
| 10.7 |   | Amended and Restated Employment Agreement between Bank of New Orleans and John LeBlanc*                                                                             |   | (2)            |
| 10.8 |   | Employment Agreement between Bank of New Orleans and C. Holly Callia                                                                                                |   | (3)            |
| 10.8 |   | 2007 Stock Option Plan*                                                                                                                                             |   | (4)            |
| 10.9 |   | 2007 Recognition and Retention Plan and Trust Agreement*                                                                                                            |   | (4)            |
| 22.0 |   | Subsidiaries of the Registrant – Reference is made to “Item 1. Business  - Subsidiaries” of this Form 10-K for the required information |   | --             |
| 23.1 |   | Consent of  LaPorte, A Professional Accounting Corporation                                                                                                |   | Filed herewith |
| 31.1 |   | Certification of Chief Executive Officer                                                                                                                            |   | Filed herewith |
| 31.2 |   | Certification of Chief Financial Officer                                                                                                                            |   | Filed herewith |
| 32.0 |   | Section 1350 Certification of the Chief Executive Officer and Chief Financial Officer                                                                               |   | Filed herewith |

| * | Denotes management compensation plan or arrangement. |
|---|------------------------------------------------------|

| (1) | Incorporated by reference from the Company’s Registration Statement on Form S-1, filed with the SEC on March 21, 2007, as amended, and declared effective on May 14, 2007 (File No. 333-141465). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated by reference from the Company’s Current Report on Form 8-K, dated as of October 28, 2008. |
|-----|--------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated by reference from the Company’s Current Report on Form 8-K, date as of October 25, 2011. |
|-----|-------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated by reference from the Company’s definitive proxy statement for the special meeting of stockholders to be held on February 14, 2008, filed with the SEC on December 28, 2007. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)  | Exhibits                                                             |
|-----------|----------------------------------------------------------------------|
|      |                                                                 |
|      | The exhibits listed under (a)(3) of this Item 15 are filed herewith. |
|      |                                                                 |
| (c)       | Reference is made to (a)(2) of this Item 15.                         |

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|        |   | LOUISIANA BANCORP, INC.                                                                                                   |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------|
| May 2, 2012 | By:    | /s/ Lawrence J. LeBon, IIILawrence J. LeBon, IIIChairman of the Board, President and Chief Executive Officer                        |
|        |   |                                                                                                                                |
|        |   |                                                                                                                                |
| May 2, 2012 | By:    | /s/ John LeBlancJohn LeBlancSenior Vice President and Chief Financial Officer(principal financial and principal accounting officer) |

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