UNITEDTable STATESof Contents

~~SECURITIES~~UNITED ~~AND~~STATES ~~EXCHANGE COMMISSION~~

~~Washington,~~SECURITIES ~~D.C.~~AND ~~20549~~EXCHANGE COMMISSION

~~FORM~~Washington, ~~10-Q~~ D.C. 20549

xFORM ~~QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934~~10-Q

~~For~~x ~~the~~QUARTERLY ~~quarterly~~REPORT ~~period~~UNDER ~~ended~~SECTION ~~March 31,~~13 ~~2012~~OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

ORFor the quarterly period ended June 30, 2012

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

~~For~~¨ ~~the~~TRANSITION ~~transition~~REPORT ~~period~~PURSUANT ~~from to~~ TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

~~LAPORTE BANCORP,~~For ~~INC.~~the transition period from to

~~(Exact~~LAPORTE BANCORP, ~~name~~INC. ~~of Registrant as Specified in Its Charter)~~

Federal				26-1231235
(State or Other Jurisdiction of Incorporation or Organization)		001-33733 (Commission File Number)		(I.R.S. Employer Identification Number)

(Exact name of Registrant as Specified in Its Charter)

710 Indiana Avenue

Federal

26-1231235

(State or Other Jurisdiction of

Incorporation or Organization)

001-33733

(Commission File Number)

(I.R.S. Employer

Identification Number)

La710 ~~Porte,~~Indiana INAvenue ~~46350~~

~~(219)~~La ~~362-7511~~Porte, IN 46350

(~~Address,~~219) ~~Including~~362-7511 ~~Zip Code, and Telephone Number, Including Area Code, of~~

~~Registrant’s~~(Address, ~~Principal~~Including ~~Executive~~Zip ~~Officers)~~Code, and Telephone Number, Including Area Code, of

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

Indicate by check mark whether the registrant (1) has ~~submitted~~filed ~~electronically~~all ~~and~~reports ~~posted~~required onto ~~its~~be ~~corporate~~filed ~~Web~~by ~~site,~~Section 13 ifor ~~any,~~15(d) ~~every~~of ~~Interactive~~the ~~Data~~Securities ~~File~~Exchange ~~required~~Act ~~to be submitted and posted pursuant to Rule 405~~ of ~~Regulation~~1934 ~~S-T~~ during the preceding 12 months (or for such shorter period that the registrant was required to ~~submit~~file such reports), and ~~post~~(2) has been subject to such filing requirements for the past 90 ~~files)~~days. YES x NO ¨

Indicate by check mark whether the registrant ishas asubmitted ~~large~~electronically ~~accelerated~~and ~~filer,~~posted anon ~~accelerated~~its ~~filer,~~corporate orWeb asite, ~~non-accelerated~~if ~~filer~~any, orevery aInteractive ~~smaller~~Data ~~reporting~~File ~~company.~~required ~~See~~to ~~definition~~be ofsubmitted ~~“large~~and ~~accelerated~~posted pursuant to Rule ~~filer,”~~405 ~~“accelerated~~of ~~filer”~~Regulation ~~and~~S-T ~~“smaller~~during ~~reporting~~the ~~company”~~preceding in12 ~~Rule~~months ~~12b-2~~(or offor such shorter period that the ~~Exchange~~registrant ~~Act~~was required to submit and post such files). YES x NO ¨

~~Large~~Indicate by check mark whether the registrant is a large accelerated filer, ¨an ~~Accelerated~~accelerated filer, ¨or ~~Non~~a non-accelerated filer, ¨or ~~Smaller~~a smaller reporting company. xSee definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

~~Indicate~~Large byaccelerated ~~check~~filer ~~mark~~¨ ~~whether~~Accelerated ~~the~~filer ~~registrant~~¨ isNon-accelerated afiler ~~shell~~¨ ~~company~~Smaller ~~(as~~reporting ~~defined~~company ~~in Rule 12b-2 of the Exchange Act). YES ¨ NO~~ x

~~Number~~Indicate ofby ~~shares~~check ofmark ~~common~~whether ~~stock~~the ~~outstanding~~registrant atis ~~May 11,~~a ~~2012:~~shell ~~4,660,871~~company (as defined in Rule 12b-2 of the Exchange Act). YES ¨ NO x

~~TABLE~~Number OFof ~~CONTENTS~~shares of common stock outstanding at August 13, 2012: 4,660,871

		PageNumber
PART I – FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements – LaPorte Bancorp, Inc.
	Consolidated Balance Sheets,March 31, 2012 (Unaudited) and December 31, 2011		3
	Consolidated Statements of Income,Three Months Ended March 31, 2012 and 2011 (Unaudited)		4
	Consolidated Statements of Comprehensive Income,Three Months Ended March 31, 2012 and 2011 (Unaudited)		5
	Consolidated Statements of Changes in Shareholders’ Equity,Three Months Ended March 31, 2012 and 2011 (Unaudited)		6
	Consolidated Statements of Cash Flows,Three Months Ended March 31, 2012 and 2011 (Unaudited)		7
	Notes to Consolidated Financial Statements (Unaudited)		8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		39
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		50
Item 4.	Controls and Procedures		51
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings		52
Item 1A.	Risk Factors		52
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		52
Item 3.	Defaults Upon Senior Securities		52
Item 4.	Mine Safety Disclosures		52
Item 5.	Other Information		52
Item 6.	Exhibits		53
Signatures			54

2TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION


		Page Number
PART I – FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements – LaPorte Bancorp, Inc.
	Consolidated Balance Sheets, June 30, 2012 (Unaudited) and December 31, 2011		3
	Consolidated Statements of Income, Three Months Ended June 30, 2012 and 2011 (Unaudited) Six Months Ended June 30, 2012 and 2011 (Unaudited)		4
	Consolidated Statements of Comprehensive Income, Three Months Ended June 30, 2012 and 2011 (Unaudited) Six Months Ended June 30, 2012 and 2011 (Unaudited)		5
	Consolidated Statements of Changes in Shareholders’ Equity, Six Months Ended June 30, 2012 and 2011 (Unaudited)		6
	Consolidated Statements of Cash Flows, Six Months Ended June 30, 2012 and 2011 (Unaudited)		7
	Notes to Consolidated Financial Statements (Unaudited)		8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			40

Item 3. Quantitative and Qualitative Disclosures About Market Risk			54

Item 4. Controls and Procedures			55

PART II – OTHER INFORMATION

Item 1. Legal Proceedings			56

Item 1A. Risk Factors			56

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			56

Item 3. Defaults Upon Senior Securities			56

Item 4. Mine Safety Disclosures			56

Item 5. Other Information			56

Item 6. Exhibits			57

Signatures			58

~~ITEM 1. CONSOLIDATED~~2 ~~FINANCIAL STATEMENTS~~

LAPORTETable BANCORP,of INC. Contents

~~CONSOLIDATED~~PART ~~BALANCE~~I ~~SHEETS~~– FINANCIAL INFORMATION

~~(dollars~~ITEM in1. ~~thousands,~~CONSOLIDATED ~~except~~FINANCIAL ~~per~~STATEMENTS ~~share data)~~

	March 31,2012			December 31,2011
	(Unaudited)
ASSETS
Cash and due from financial institutions	$	5,668		$	8,146
Interest-earning time deposits in other financial institutions		2,450			—
Securities available for sale		125,185			131,974
Federal Home Loan Bank (FHLB) stock, at cost (restricted)		3,817			3,817
Loans held for sale, at fair value		3,532			3,049
Loans, net of allowance for loan losses of $3,964 at March 31, 2012, $3,772 at December 31, 2011		294,576			295,359
Mortgage servicing rights		342			348
Other real estate owned		756			1,012
Premises and equipment, net		9,770			9,840
Goodwill		8,431			8,431
Other intangible assets		444			474
Bank owned life insurance		10,970			10,876
Accrued interest receivable and other assets		3,369			3,819
Total assets	$	469,310		$	477,145
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non-interest bearing	$	42,114		$	38,977
Interest bearing		299,757			294,583
Total deposits		341,871			333,560
Federal Home Loan Bank advances		60,007			72,021
Subordinated debentures		5,155			5,155
Federal Deposit Insurance Corporation guaranteed unsecured borrowings		—			4,981
Accrued interest payable and other liabilities		5,687			5,725
Total liabilities		412,719			421,442
Shareholders’ equity
Preferred stock, no par value; 1,000,000 shares authorized; none issued		—			—
Common stock, $0.01 par value; 19,000,000 shares authorized; 4,871,801 shares issued; and 4,660,871 shares outstanding at March 31, 2012 and December 31, 2011		49			49
Additional paid-in capital		21,279			21,221
Surplus		770			770
Retained earnings		35,008			34,267
Accumulated other comprehensive income, net of tax of $797 at March 31, 2012 and $1,046 at December 31, 2011		2,096			2,031
Treasury stock, at cost (210,930 shares at March 31, 2012 and December 31, 2011)		(1,278	)		(1,278	)
Unearned Employee Stock Ownership Plan (ESOP) shares		(1,334	)		(1,357	)
Total shareholders’ equity		56,590			55,703
Total liabilities and shareholders’ equity	$	469,310		$	477,145

LAPORTE BANCORP, INC.

~~See~~CONSOLIDATED ~~accompanying~~BALANCE ~~notes~~SHEETS ~~to consolidated financial statements (unaudited)~~

3(dollars in thousands, except per share data)

PART I – FINANCIAL INFORMATION


	June 30, 2012			December 31, 2011
	(Unaudited)
ASSETS
Cash and due from financial institutions	$	7,614		$	8,146
Interest-earning time deposits in other financial institutions		2,940			—
Securities available for sale		123,515			131,974
Federal Home Loan Bank (FHLB) stock, at cost (restricted)		3,817			3,817
Loans held for sale, at fair value		1,692			3,049
Loans, net of allowance for loan losses of $4,268 at June 30, 2012, $3,772 at December 31, 2011		304,087			295,359
Mortgage servicing rights		319			348
Other real estate owned		909			1,012
Premises and equipment, net		9,653			9,840
Goodwill		8,431			8,431
Other intangible assets		415			474
Bank owned life insurance		11,067			10,876
Accrued interest receivable and other assets		4,091			3,819

Total assets	$	478,550		$	477,145


LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non-interest bearing	$	42,332		$	38,977
Interest bearing		300,404			294,583

Total deposits		342,736			333,560
Federal Home Loan Bank advances		66,537			72,021
Subordinated debentures		5,155			5,155
Federal Deposit Insurance Corporation guaranteed unsecured borrowings		—			4,981
Short-term borrowings		830			—
Accrued interest payable and other liabilities		5,590			5,725

Total liabilities		420,848			421,442
Shareholders’ equity
Preferred stock, no par value; 1,000,000 shares authorized; none issued		—			—
Common stock, $0.01 par value; 19,000,000 shares authorized; 4,871,801 shares issued; and 4,660,871 shares outstanding at June 30, 2012 and December 31, 2011		49			49
Additional paid-in capital		21,337			21,221
Surplus		770			770
Retained earnings		35,864			34,267
Accumulated other comprehensive income, net of tax of $1,169 at June 30, 2012 and $1,046 at December 31, 2011		2,271			2,031
Treasury stock, at cost (210,930 shares at June 30, 2012 and December 31, 2011)		(1,278	)		(1,278	)
Unearned Employee Stock Ownership Plan (ESOP) shares		(1,311	)		(1,357	)

Total shareholders’ equity		57,702			55,703

Total liabilities and shareholders’ equity	$	478,550		$	477,145

~~ITEM 1. CONSOLIDATED~~See ~~FINANCIAL~~accompanying ~~STATEMENTS~~notes -to ~~continued~~consolidated financial statements (unaudited)

~~LAPORTE~~3 ~~BANCORP, INC.~~

CONSOLIDATEDTable STATEMENTSof OF INCOME (Unaudited) Contents

~~(dollars~~PART inI ~~thousands,~~– ~~except~~FINANCIAL ~~per~~INFORMATION ~~share data)~~

	Three Months Ended March 31,
	2012			2011
Interest and dividend income
Loans, including fees	$	4,109		$	3,898
Taxable securities		503			575
Tax exempt securities		352			364
FHLB stock		28			26
Other interest income		5			11
Total interest and dividend income		4,997			4,874
Interest expense
Deposits		798			1,083
Federal Home Loan Bank advances		322			395
Subordinated debentures		70			69
FDIC guaranteed unsecured borrowings		37			50
Federal funds purchased and other short-term borrowings		1			—
Total interest expense		1,228			1,597
Net interest income		3,769			3,277
Provision for loan losses		228			28
Net interest income after provision for loan losses		3,541			3,249
Noninterest income
Service charges on deposits		107			136
ATM and debit card fees		97			93
Earnings on life insurance, net		94			96
Net gains on mortgage banking activities		222			96
Loan servicing fees, net		12			13
Net gains on sales and calls of securities		109			25
Losses on other assets		(150	)		(21	)
Other income		98			103
Total noninterest income		589			541
Noninterest expense
Salaries and employee benefits		1,658			1,521
Occupancy and equipment		489			505
Data processing		127			108
Advertising		74			39
Bank examination fees		81			82
Amortization of intangibles		30			58
FDIC insurance		84			133
Collection and other real estate owned		28			34
Other expenses		385			362
Total noninterest expense		2,956			2,842
Income before income taxes		1,174			948
Income tax expense		247			170
Net income	$	927		$	778
Earnings per share (Note 3):
Basic	$	0.20		$	0.18
Diluted		0.20			0.18

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS - continued

~~See~~LAPORTE ~~accompanying~~BANCORP, ~~notes~~INC. ~~to consolidated financial statements (unaudited)~~

4CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

~~PART~~(dollars Iin –thousands, ~~FINANCIAL~~except ~~INFORMATION~~per share data)

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS - continued


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Interest and dividend income
Loans, including fees	$	3,999		$	3,505		$	8,108		$	7,403
Taxable securities		497			712			1,000			1,287
Tax exempt securities		343			361			695			725
FHLB stock		27			25			55			51
Other interest income		10			7			15			18

Total interest and dividend income		4,876			4,610			9,873			9,484
Interest expense
Deposits		758			1,026			1,556			2,109
Federal Home Loan Bank advances		313			388			635			783
Subordinated debentures		70			70			140			139
FDIC guaranteed unsecured borrowings		—			51			37			101
Federal funds purchased and other short-term borrowings		1			—			2			—

Total interest expense		1,142			1,535			2,370			3,132

Net interest income		3,734			3,075			7,503			6,352
Provision for loan losses		303			203			531			231

Net interest income after provision for loan losses		3,431			2,872			6,972			6,121
Noninterest income
Service charges on deposits		112			129			219			265
ATM and debit card fees		105			99			202			192
Earnings on life insurance, net		97			99			191			195
Net gains on mortgage banking activities		234			88			456			184
Loan servicing fees, net		(10	)		6			2			19
Net gains on securities		88			3			197			28
Losses on other assets		(56	)		(173	)		(206	)		(194	)
Other income		122			71			220			174

Total noninterest income		692			322			1,281			863
Noninterest expense
Salaries and employee benefits		1,571			1,439			3,229			2,960
Occupancy and equipment		449			448			938			953
Data processing		128			103			255			211
Advertising		46			54			120			93
Bank examination fees		118			172			199			254
Amortization of intangibles		29			56			59			114
FDIC insurance		82			87			166			220
Collection and other real estate owned		37			35			65			69
Other expenses		319			295			704			657

Total noninterest expense		2,779			2,689			5,735			5,531

Income before income taxes		1,344			505			2,518			1,453
Income tax expense		302			18			549			188

Net income	$	1,042		$	487		$	1,969		$	1,265

Earnings per share (Note 3):
Basic	$	0.23		$	0.11		$	0.43		$	0.28
Diluted		0.23			0.11			0.43			0.28

~~LAPORTE~~See ~~BANCORP,~~accompanying ~~INC.~~notes to consolidated financial statements (unaudited)

~~CONSOLIDATED~~4 ~~STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)~~

(dollarsTable inof thousands, except per share data) Contents

	Three Months Ended March 31,
	2012			2011
Net income	$	927		$	778
Other comprehensive income:
Unrealized gains/losses on securities
Unrealized holding gain arising during the period		124			581
Reclassification adjustment for gains included in net income		(109	)		(25	)
Net unrealized gains		15			556
Tax effect		(6	)		(189	)
Net of tax		9			367
Unrealized gains/losses on cash flow hedges
Unrealized holding gain arising during the period		83			314
Net unrealized gains		83			314
Tax effect		(27	)		(107	)
Net of tax		56			207
Total other comprehensive income		65			574
Comprehensive income	$	992		$	1,352

PART I – FINANCIAL INFORMATION

~~See~~ITEM ~~accompanying~~1. ~~notes~~CONSOLIDATED toFINANCIAL ~~consolidated~~STATEMENTS ~~financial~~- ~~statements~~continued ~~(unaudited)~~

5LAPORTE BANCORP, INC.

~~PART~~CONSOLIDATED ISTATEMENTS –OF ~~FINANCIAL~~COMPREHENSIVE ~~INFORMATION~~INCOME (Unaudited)

~~ITEM 1. CONSOLIDATED~~(dollars ~~FINANCIAL~~in ~~STATEMENTS~~thousands, -except ~~continued~~per share data)

LAPORTE BANCORP, INC.


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Net income	$	1,042		$	487		$	1,969		$	1,265
Other comprehensive income:
Unrealized gains/losses on securities
Unrealized holding gain arising during the period		380			1,747			504			2,328
Reclassification adjustment for gains included in net income		(88	)		(3	)		(197	)		(28	)

Net unrealized gains		292			1,744			307			2,300
Tax effect		(99	)		(593	)		(105	)		(782	)

Net of tax		193			1,151			202			1,518
Unrealized gains/losses on cash flow hedges
Unrealized holding gain/loss arising during the period		(27	)		(566	)		56			(252	)

Net unrealized gains/losses		(27	)		(566	)		56			(252	)
Tax effect		9			193			(18	)		86

Net of tax		(18	)		(373	)		38			(166	)

Total other comprehensive income		175			778			240			1,352

Comprehensive income	$	1,217		$	1,265		$	2,209		$	2,617

~~CONSOLIDATED~~See ~~STATEMENTS~~accompanying OFnotes ~~CHANGES~~to INconsolidated ~~SHAREHOLDERS’~~financial ~~EQUITY~~statements (~~Unaudited~~unaudited)

~~Three~~5 ~~months ended March 31, 2012 and 2011~~

(dollarsTable inof thousands, except per share data) Contents

	CommonStock		AdditionalPaid-InCapital			Surplus		RetainedEarnings			AccumulatedOtherComprehensiveIncome (Loss),Net of Tax			TreasuryStock			UnearnedESOPShares			Total
Balance at January 1, 2011	$	48	$	21,160		$	770	$	31,211		$	(550	)	$	(1,144	)	$	(1,447	)	$	50,048
Net income		—		—			—		778			—			—			—			778
Other comprehensive income		—		—			—		—			574			—			—			574
ESOP shares earned, 2,261 shares		—		(1	)		—		—			—			—			22			21
Balance at March 31, 2011	$	48	$	21,159		$	770	$	31,989		$	24		$	(1,144	)	$	(1,425	)	$	51,421
Balance at January 1, 2012	$	49	$	21,221		$	770	$	34,267		$	2,031		$	(1,278	)	$	(1,357	)	$	55,703
Net income		—		—			—		927			—			—			—			927
Other comprehensive income		—		—			—		—			65			—			—			65
Cash dividends on common stock ($0.04 per share)		—		—			—		(186	)		—			—			—			(186	)
ESOP shares earned, 2,261 shares		—		(3	)		—		—			—			—			23			20
Stock award and option expense		—		61			—		—			—			—			—			61
Balance at March 31, 2012	$	49	$	21,279		$	770	$	35,008		$	2,096		$	(1,278	)	$	(1,334	)	$	56,590

PART I – FINANCIAL INFORMATION

~~See~~ITEM ~~accompanying~~1. ~~notes~~CONSOLIDATED toFINANCIAL ~~consolidated~~STATEMENTS ~~financial~~- ~~statements~~continued ~~(unaudited)~~

6LAPORTE BANCORP, INC.

~~PART~~CONSOLIDATED ISTATEMENTS –OF ~~FINANCIAL~~CHANGES ~~INFORMATION~~IN SHAREHOLDERS’ EQUITY (Unaudited)

~~ITEM 1. CONSOLIDATED~~Six ~~FINANCIAL~~months ~~STATEMENTS~~ended -June 30, ~~continued~~2012 and 2011

~~LAPORTE~~(dollars ~~BANCORP~~in thousands, ~~INC.~~except per share data)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


	Common Stock		Additional Paid-In Capital			Surplus		Retained Earnings			Accumulated Other Comprehensive Income (Loss), Net of Tax			Treasury Stock			Unearned ESOP Shares			Total
Balance at January 1, 2011	$	48	$	21,160		$	770	$	31,211		$	(550	)	$	(1,144	)	$	(1,447	)	$	50,048
Net income		—		—			—		1,265			—			—			—			1,265
Other comprehensive income		—		—			—		—			1,352			—			—			1,352
ESOP shares earned, 4,522 shares		—		(2	)		—		—			—			—			45			43

Balance at June 30, 2011	$	48	$	21,158		$	770	$	32,476		$	802		$	(1,144	)	$	(1,402	)	$	52,708


Balance at January 1, 2012	$	49	$	21,221		$	770	$	34,267		$	2,031		$	(1,278	)	$	(1,357	)	$	55,703
Net income		—		—			—		1,969			—			—			—			1,969
Other comprehensive income		—		—			—		—			240			—			—			240
Cash dividends on common stock ($0.08 per share)		—		—			—		(372	)		—			—			—			(372	)
ESOP shares earned, 4,522 shares		—		(6	)		—		—			—			—			46			40
Stock award and option expense		—		122			—		—			—			—			—			122

Balance at June 30, 2012	$	49	$	21,337		$	770	$	35,864		$	2,271		$	(1,278	)	$	(1,311	)	$	57,702

~~(dollars~~See inaccompanying ~~thousands,~~notes ~~except~~to ~~per~~consolidated ~~share~~financial ~~data~~statements (unaudited)

	Three Months Ended March 31,
	2012			2011
Cash flows from operating activities
Net income	$	927		$	778
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		150			169
Provision for loan losses		228			28
Net gains on securities		(109	)		(25	)
Net gains on sales of loans		(204	)		(80	)
Originations of loans held for sale		(10,890	)		(6,464	)
Proceeds from sales of loans held for sale		10,611			10,099
Recognition of mortgage servicing rights		(19	)		(16	)
Amortization of mortgage servicing rights		29			28
Net change in loan servicing rights valuation allowance		(4	)		—
Net losses on sales of other real estate owned		14			11
Write down of other real estate owned		137			2
Earnings on life insurance, net		(94	)		(96	)
Amortization of intangible assets		30			58
ESOP compensation expense		20			21
Stock compensation expense		61			—
Amortization of issuance costs of unsecured borrowings		19			16
Change in assets and liabilities:
Accrued interest receivable and other assets		417			393
Accrued interest payable and other liabilities		45			123
Net cash from operating activities		1,368			5,045
Cash flows from investing activities
Net change in loans		436			8,017
Proceeds from sales of other real estate owned		224			150
Proceeds from maturities, calls and principal repayments of securities available for sale		7,388			3,922
Proceeds from sales of securities available for sale		12,668			923
Purchase of interest-bearing time deposits at other financial institutions		(2,450	)		—
Purchases of securities available for sale		(13,143	)		(14,319	)
Premises and equipment expenditures, net		(80	)		(40	)
Net cash from investing activities		5,043			(1,338	)
Cash flows from financing activities
Net change in deposits		8,311			6,051
Net change in FHLB advances		(12,014	)		(8,831	)
Dividends paid on common stock		(186	)		—
Repayment of FDIC guaranteed unsecured borrowing		(5,000	)		—
Net cash from financing activities		(8,889	)		(2,780	)
Net change in cash and cash equivalents		(2,478	)		927
Cash and cash equivalents at beginning of period		8,146			5,868
Cash and cash equivalents at end of period	$	5,668		$	6,795
Supplemental cash flow information:
Cash paid during the period for:
Interest paid	$	1,270		$	1,632
Income taxes paid		—			—
Supplemental noncash disclosures:
Transfers from loans receivable to other real estate owned	$	119		$	472

SeeTable accompanyingof notes to consolidated financial statements (unaudited) Contents

7PART I – FINANCIAL INFORMATION

~~PART~~ITEM I1. –CONSOLIDATED FINANCIAL ~~INFORMATION~~STATEMENTS - continued

~~ITEM 1. CONSOLIDATED~~LAPORTE ~~FINANCIAL~~BANCORP, ~~STATEMENTS~~INC. ~~- continued~~

~~LAPORTE~~CONSOLIDATED ~~BANCORP,~~STATEMENTS ~~INC.~~OF CASH FLOWS (Unaudited)

~~NOTES~~(dollars TOin ~~CONSOLIDATED~~thousands, ~~FINANCIAL~~except ~~STATEMENTS~~per ~~(Unaudited~~share data)

(dollars in thousands, except per share data)


	Six Months Ended June 30,
	2012			2011
Cash flows from operating activities
Net income	$	1,969		$	1,265
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		301			342
Provision for loan losses		531			231
Net gains on securities		(197	)		(28	)
Net gains on sales of loans		(413	)		(160	)
Originations of loans held for sale		(19,433	)		(11,273	)
Proceeds from sales of loans held for sale		21,203			14,638
Recognition of mortgage servicing rights		(43	)		(24	)
Amortization of mortgage servicing rights		63			45
Net change in loan servicing rights valuation allowance		9			16
Net losses on sales of other real estate owned		16			116
Write down of other real estate owned		200			58
Earnings on life insurance, net		(191	)		(195	)
Amortization of intangible assets		59			114
ESOP compensation expense		40			43
Stock compensation expense		122			—
Amortization of issuance costs of unsecured borrowings		19			32
Change in assets and liabilities:
Accrued interest receivable and other assets		(395	)		356
Accrued interest payable and other liabilities		(79	)		(237	)

Net cash from operating activities		3,781			5,339
Cash flows from investing activities
Net change in loans		(9,672	)		6,942
Proceeds from sales of other real estate owned		300			601
Proceeds from maturities, calls and principal repayments of securities available for sale		12,181			6,810
Proceeds from sales of securities available for sale		17,653			5,262
Proceeds from redemption of FHLB stock		—			221
Purchase of interest-bearing time deposits at other financial institutions		(2,940	)		—
Purchases of securities available for sale		(20,871	)		(38,753	)
Premises and equipment expenditures, net		(114	)		(145	)

Net cash from investing activities		(3,463	)		(19,062	)
Cash flows from financing activities
Net change in deposits		9,176			3,654
Net change in FHLB advances		(5,484	)		10,674
Net change in short-term borrowings		830			—
Dividends paid on common stock		(372	)		—
Repayment of FDIC guaranteed unsecured borrowing		(5,000	)		—

Net cash from financing activities		(850	)		14,328

Net change in cash and cash equivalents		(532	)		605
Cash and cash equivalents at beginning of period		8,146			5,868

Cash and cash equivalents at end of period	$	7,614		$	6,473

Supplemental cash flow information:
Cash paid during the period for:
Interest paid	$	2,390		$	3,129
Income taxes paid		506			—
Supplemental noncash disclosures:
Transfers from loans receivable to other real estate owned	$	413		$	542

~~NOTE~~See 1accompanying –notes ~~BASIS~~to OFconsolidated ~~PRESENTATION~~financial ~~AND~~statements ~~CONSOLIDATION~~(unaudited)

~~The~~7 unaudited consolidated financial statements included herein include the accounts of LaPorte Bancorp, Inc. (“the Bancorp”), its wholly owned subsidiary, The LaPorte Savings Bank (“the Bank”) and the Bank’s wholly owned subsidiary, LSB Investments, Inc., Nevada (“LSB Inc.”), together referred to as “the Company”. The Bancorp was formed on October 12, 2007. LSB Inc. was formed on October 1, 2011 to manage a portion of the Bank’s investment portfolio. Intercompany transactions and balances are eliminated in consolidation.

TheTable unaudited consolidated financial statements included herein have been prepared by management in accordance with accounting principles generally accepted in the United States of America for interim financial statements and Article 8 of Regulation S-X of the Securities and Exchange Commission. In the opinion of management, the unaudited consolidated financial statements contain all material adjustments (consisting of normal recurring accruals) and disclosures which are necessary in the opinion of management to make the financial statements not misleading and for a fair presentation of the financial position and results of operations for the interim periods presented herein. Contents

~~Certain~~PART ~~information~~I ~~and~~– ~~footnote~~FINANCIAL ~~disclosures~~INFORMATION normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, the interim consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2011 included in the Form 10-K Annual Report of LaPorte Bancorp, Inc. for the fiscal year ended December 31, 2011.

~~The~~ITEM ~~results~~1. ~~for~~CONSOLIDATED ~~the~~FINANCIAL ~~three~~STATEMENTS -~~month~~ ~~period~~continued ~~ended March 31, 2012 may not indicate the results to be expected for the full year ending December 31, 2012.~~

~~Reclassifications:~~LAPORTE ~~Some~~BANCORP, ~~items in the prior year financial statements were reclassified to conform to the current presentation~~INC.

~~NOTE~~NOTES 2TO –CONSOLIDATED ~~RECENT~~FINANCIAL ~~ACCOUNTING~~STATEMENTS ~~PRONOUNCEMENTS~~(Unaudited)

In(dollars May 2011, the FASB issued an amendment to achieve common fair value measurement and disclosure requirements between U.S. and International accounting principles. Overall, the guidance is consistent with existing U.S. accounting principles; however, there are some amendments that change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The amendments in ~~this guidance are effective for interim and annual reporting periods beginning after December 15~~thousands, ~~2011.~~except ~~The~~per ~~effect~~share ofdata) ~~adopting this standard did not have a material effect on the Company’s operating results or financial condition, but the additional disclosures are included in Note 6.~~

InNOTE ~~June~~1 ~~2011,~~– ~~the~~BASIS ~~FASB amended~~OF ~~existing~~PRESENTATION ~~guidance~~AND ~~and~~CONSOLIDATION eliminated the option to present the components of other comprehensive income as part of the statement of changes in shareholders’ equity. The amendment requires that comprehensive income be presented in either a single continuous statement or in two separate consecutive statements. The amendments in this guidance are effective as of the beginning of a fiscal reporting year, and interim periods within that year, that begins after December 15, 2011. The adoption of this amendment changed the presentation of the statement of comprehensive income for the Company to two consecutive statements instead of presented as part of the consolidated statement of shareholders’ equity.

8The unaudited consolidated financial statements included herein include the accounts of LaPorte Bancorp, Inc. (“the Bancorp”), its wholly owned subsidiary, The LaPorte Savings Bank (“the Bank”) and the Bank’s wholly owned subsidiary, LSB Investments, Inc., Nevada (“LSB Inc.”), together referred to as “the Company”. The Bancorp was formed on October 12, 2007. LSB Inc. was formed on October 1, 2011 to manage a portion of the Bank’s investment portfolio. Intercompany transactions and balances are eliminated in consolidation.

~~PART~~The Iunaudited –consolidated ~~FINANCIAL~~financial ~~INFORMATION~~statements included herein have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial statements and Article 8 of Regulation S-X of the Securities and Exchange Commission. In the opinion of management, the unaudited consolidated financial statements contain all material adjustments (consisting of normal recurring accruals) and disclosures which are necessary in the opinion of management to make the financial statements not misleading and for a fair presentation of the financial position and results of operations for the interim periods presented herein.

~~ITEM 1~~Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. ~~CONSOLIDATED~~ ~~FINANCIAL~~Accordingly, ~~STATEMENTS~~the interim consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2011 included in the Form 10-K ~~continued~~Annual Report of LaPorte Bancorp, Inc. for the fiscal year ended December 31, 2011.

~~LAPORTE~~The results for the three and six month period ended June 30, 2012 may not indicate the results to be expected for the full year ending ~~BANCORP~~December 31, ~~INC~~2012.

~~NOTES~~Reclassifications: TOSome ~~CONSOLIDATED~~items ~~FINANCIAL~~in ~~STATEMENTS~~the ~~(Unaudited)~~prior year financial statements were reclassified to conform to the current presentation.

~~(dollars~~NOTE in2 ~~thousands,~~– ~~except~~RECENT ~~per~~ACCOUNTING ~~share~~PRONOUNCEMENTS ~~data)~~

~~NOTE~~In 3May –2011, ~~EARNINGS~~the ~~PER~~FASB ~~SHARE~~issued an amendment to achieve common fair value measurement and disclosure requirements between U.S. and International accounting principles. Overall, the guidance is consistent with existing U.S. accounting principles; however, there are some amendments that change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The amendments in this guidance are effective for interim and annual reporting periods beginning after December 15, 2011. The effect of adopting this standard did not have a material effect on the Company’s operating results or financial condition, but the additional disclosures are included in Note 6.

~~Basic~~In ~~earnings~~June ~~per~~2011, ~~common~~the ~~share~~FASB amended isexisting ~~determined~~guidance byand ~~dividing~~eliminated ~~net~~the ~~earnings~~option ~~available~~ to ~~common~~present ~~shareholders by~~ the ~~weighted~~components ~~average number~~ of ~~common~~other ~~shares~~comprehensive ~~outstanding~~income ~~for~~as ~~the~~part ~~period.~~of ~~Employee~~the ~~Stock~~statement ~~Ownership~~of ~~Plan~~changes ~~(“ESOP”)~~in ~~shares~~shareholders’ ~~are~~equity. ~~considered~~The ~~outstanding~~amendment ~~for~~requires ~~this~~that ~~calculation~~comprehensive ~~unless~~income ~~unearned.~~be ~~Diluted~~presented ~~earnings~~in ~~per~~either ~~common~~a single ~~share~~continuous isstatement ~~determined~~or byin ~~dividing~~two ~~net~~separate ~~earnings~~consecutive ~~available to~~statements. ~~common~~The ~~shareholders~~amendments byin ~~the~~this ~~weighted~~guidance ~~average~~are ~~number~~effective as of ~~common shares outstanding for~~ the ~~period,~~beginning ~~adjusted~~of ~~for~~a ~~the~~fiscal ~~dilutive~~reporting ~~effect~~year, ofand ~~common~~interim ~~share~~periods ~~equivalents~~within ~~(-0-~~that ~~for~~year, ~~the~~that ~~three~~begins ~~months~~after ~~ended~~December ~~March 31~~15, ~~2012 and~~ 2011). ~~Stock options for 213,678~~The ~~and~~adoption 0of ~~shares~~this ~~for~~amendment changed the ~~three~~presentation ~~months~~of ~~ended~~the ~~March 31,~~statement ~~2012~~of ~~and~~comprehensive ~~2011~~income ~~were~~for ~~not~~the ~~considered~~Company into ~~computing~~two ~~diluted~~consecutive ~~earnings~~statements ~~per~~instead ~~share~~of ~~because~~presented ~~they~~as ~~were~~part ~~antidilutive.~~of ~~The factors used in~~ the ~~earnings~~consolidated ~~per~~statement ~~common~~of ~~share~~shareholders’ ~~computation~~equity. ~~follow:~~

	Three Months EndedMarch 31, 2012			Three Months EndedMarch 31, 2011
Basic
Net income	$	927		$	778
Weighted average common shares outstanding		4,660,871			4,586,363
Less: Average unallocated ESOP shares		(134,540	)		(143,585	)
Average shares		4,526,332			4,442,778
Basic earnings per common share	$	0.20		$	0.18
Diluted
Net income	$	927		$	778
Weighted average common shares outstanding for basic earnings per common share		4,526,332			4,442,778
Add: Dilutive effects of assumed exercises of stock options		—			—
Average shares and dilutive potential common shares		4,526,332			4,442,778
Diluted earnings per common share	$	0.20		$	0.18

9Table of Contents

PART I – FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS - continued

LAPORTE BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in thousands, except per share data)

NOTE 43 – ~~SECURITIES~~EARNINGS ~~AVAILABLE~~PER ~~FOR~~SHARE ~~SALE~~

~~The~~Basic ~~amortized~~earnings ~~cost~~per ~~and~~common ~~fair~~share ~~value~~is determined by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding for the period. Employee Stock Ownership Plan (“ESOP”) shares are considered outstanding for this calculation unless unearned. Diluted earnings per common share is determined by dividing net earnings available- to common shareholders by the weighted average number of common shares outstanding for~~-sale~~ ~~securities~~the period, adjusted for the dilutive effect of common share equivalents (0 for the three and six months ended June 30, 2012 and 2011). Stock options for 213,678 and 0 shares for the ~~related~~three ~~gross~~and ~~unrealized~~six ~~gains~~months ended June 30, 2012 and ~~losses~~2011 ~~recognized~~were not considered in ~~accumulated~~ ~~other~~computing ~~comprehensive~~diluted ~~income~~earnings ~~(loss)~~per share because they were asantidilutive. ~~follows:~~The factors used in the earnings per common share computation follow:

March 31, 2012


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Basic
Net income	$	1,042		$	487		$	1,969		$	1,238

Weighted average common shares outstanding		4,660,871			4,586,363			4,660,871			4,589,374
Less: Average unallocated ESOP shares		(132,279	)		(141,324	)		(133,409	)		(151,498	)

Average shares		4,528,592			4,445,039			4,527,462			4,437,876

Basic earnings per common share	$	0.23		$	0.11		$	0.43		$	0.28

Diluted
Net income	$	1,042		$	487		$	1,969		$	1,238

Weighted average common shares outstanding for basic earnings per common share		4,528,592			4,445,039			4,527,462			4,437,876
Add: Diluted effects of assumed exercises of stock options		—			—			—			—

Average shares and dilutive potential common shares		4,528,592			4,445,039			4,527,462			4,437,876

Diluted earnings per common share	$	0.23		$	0.11		$	0.43		$	0.28

	AmortizedCost		UnrealizedGains		UnrealizedLosses			Fair Value
U.S. federal agency obligations	$	9,154	$	389	$	(19	)	$	9,524
State and municipal		39,150		3,135		(1	)		42,284
Mortgage-backed securities – residential		18,950		735		(14	)		19,671
Government agency sponsored collateralized mortgage obligations		49,770		1,152		(56	)		50,866
Corporate debt securities		2,808		50		(18	)		2,840
Total	$	119,832	$	5,461	$	(108	)	$	125,185

December 31,Table 2011of Contents

	AmortizedCost		UnrealizedGains		UnrealizedLosses			Fair Value
U.S. federal agency obligations	$	12,187	$	414	$	—		$	12,601
State and municipal		40,012		3,094		—			43,106
Mortgage-backed securities – residential		30,946		872		(29	)		31,789
Government agency sponsored collateralized mortgage obligations		43,491		1,001		(14	)		44,478
Total	$	126,636	$	5,381	$	(43	)	$	131,974

PART I – FINANCIAL INFORMATION

AtITEM ~~March 31, 2012 and December 31, 2011, all of our mortgage-backed securities were issued by U~~1.~~S. government-sponsored~~ ~~enterprises~~CONSOLIDATED ~~and~~FINANCIAL ~~all~~STATEMENTS ~~of our collateralized mortgage obligations were issued by either U.S. government~~-~~sponsored~~ ~~enterprises~~continued ~~or the U.S. Small Business Administration.~~

10LAPORTE BANCORP, INC.

~~PART~~NOTES ITO –CONSOLIDATED FINANCIAL ~~INFORMATION~~STATEMENTS (Unaudited)

~~ITEM 1. CONSOLIDATED~~(dollars ~~FINANCIAL~~in ~~STATEMENTS~~thousands, -except ~~continued~~per share data)

~~LAPORTE BANCORP,~~NOTE ~~INC.~~4 – SECURITIES AVAILABLE FOR SALE

~~NOTES~~The TOamortized ~~CONSOLIDATED~~cost ~~FINANCIAL~~and ~~STATEMENTS~~fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (~~Unaudited~~loss) were as follows:

~~(dollars in thousands~~June 30, ~~except~~2012 ~~per share data)~~

NOTE 4 – SECURITIES AVAILABLE FOR SALE—continued


	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. federal agency obligations	$	8,118	$	392	$	—		$	8,510
State and municipal		40,186		3,309		(10	)		43,485
Mortgage-backed securities – residential		15,038		741		—			15,779
Government agency sponsored collateralized mortgage obligations		50,592		1,283		(72	)		51,803
Corporate debt securities		3,936		44		(42	)		3,938

Total	$	117,870	$	5,769	$	(124	)	$	123,515


December 31, 2011
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. federal agency obligations	$	12,187	$	414	$	—		$	12,601
State and municipal		40,012		3,094		—			43,106
Mortgage-backed securities – residential		30,946		872		(29	)		31,789
Government agency sponsored collateralized mortgage obligations		43,491		1,001		(14	)		44,478

Total	$	126,636	$	5,381	$	(43	)	$	131,974

~~Securities~~At ~~with unrealized losses at March~~June 3130, 2012 and December 31, 2011, ~~aggregated~~all of our mortgage-backed securities were issued by ~~investment~~ ~~category~~U.S. government-sponsored enterprises and ~~length~~all of ~~time~~our ~~that~~collateralized ~~individual~~mortgage ~~securities~~obligations ~~have~~were ~~been~~issued inby aeither ~~continuous~~U.S. ~~unrealized~~government-sponsored ~~loss~~enterprises ~~position,~~or ~~are~~the asU.S. ~~follows:~~Small Business Administration.

March 31, 2012	Continuing UnrealizedLoss ForLess Than 12 Months					Continuing UnrealizedLoss For12 Months or More				Total
Description of Securities	FairValue		UnrealizedLoss			FairValue		UnrealizedLoss		FairValue		UnrealizedLoss
U.S. federal agency obligations	$	981	$	(19	)	$	—	$	—	$	981	$	(19	)
State and municipal		248		(1	)		—		—		248		(1	)
Mortgage-backed securities – Residential		1,049		(14	)		—		—		1,049		(14	)
Government agency sponsored collateralized mortgage obligations		8,886		(56	)		—		—		8,886		(56	)
Corporate debt securities		982		(18	)		—		—		982		(18	)
Total temporarily impaired	$	12,146	$	(108	)	$	—	$	—	$	12,146	$	(108	)
December 31, 2011	Continuing UnrealizedLoss ForLess Than 12 Months					Continuing UnrealizedLoss For12 Months or More				Total
Description of Securities	FairValue		UnrealizedLoss			FairValue		UnrealizedLoss		FairValue		UnrealizedLoss
Mortgage-backed securities – residential	$	5,646	$	(29	)	$	—	$	—	$	5,646	$	(29	)
Government agency sponsored collateralized mortgage obligations		2,147		(14	)		—		—		2,147		(14	)
Total temporarily impaired	$	7,793	$	(43	)	$	—	$	—	$	7,793	$	(43	)

Securities with unrealized losses at June 30, 2012, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

At March 31, 2012, the Company held 9 investments in debt securities which were in an unrealized loss position of which all were in an unrealized loss position for less than twelve months. At December 31, 2011, the Company held 6 investments in debt securities which were in an unrealized loss position of which all were in an unrealized loss position for less than twelve months. Management periodically evaluates each investment security for potential other-than-temporary impairment, relying primarily on industry analyst reports and observation of market conditions and interest rate fluctuations. Management believes it will be able to collect all amounts due according to the contractual terms of the underlying investment securities and that the noted declines in fair value are considered temporary and due only to normal market interest rate fluctuations. The Company does not intend to sell the securities and is not more likely than not to be required to sell these debt securities before their anticipated recovery.


June 30, 2012	Continuing Unrealized Loss For Less Than 12 Months					Continuing Unrealized Loss For 12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
State and municipal	$	1,431	$	(10	)	$	—	$	—	$	1,431	$	(10	)
Government agency sponsored collateralized mortgage obligations		7,016		(72	)		—		—		7,016		(72	)
Corporate debt securities		2,076		(42	)		—		—		2,076		(42	)

Total temporarily impaired	$	10,523	$	(124	)	$	—	$	—	$	10,523	$	(124	)

1110

PARTTable Iof – FINANCIAL INFORMATION Contents

~~ITEM 1. CONSOLIDATED~~PART ~~FINANCIAL~~I ~~STATEMENTS~~– -FINANCIAL ~~continued~~INFORMATION

~~LAPORTE BANCORP,~~ITEM ~~INC~~1. CONSOLIDATED FINANCIAL STATEMENTS - continued

~~NOTES~~LAPORTE TOBANCORP, ~~CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)~~ INC.

~~(dollars~~NOTES inTO ~~thousands,~~CONSOLIDATED ~~except~~FINANCIAL ~~per~~STATEMENTS ~~share data~~(Unaudited)

~~NOTE~~(dollars 4in –thousands, ~~SECURITIES~~except ~~AVAILABLE~~per ~~FOR~~share ~~SALE—continued~~data)

~~Sales~~NOTE of4 ~~securities~~– ~~available~~SECURITIES ~~for~~AVAILABLE ~~sale~~FOR ~~for~~SALE ~~the~~– ~~three~~continued ~~months ended March 31, 2012 and 2011 were as follows:~~

	Three Months EndedMarch 31,
	2012			2011
Proceeds	$	12,668		$	932
Gross gains		121			25
Gross losses		(16	)		—

Securities with unrealized losses at December 31, 2011, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

Proceeds from calls of securities available for sale during the three months ended March 31, 2012 and 2011 were $3,275 and $45, with gross gains of $4 and $0 and gross losses of $0 and $15, respectively.


December 31, 2011	Continuing Unrealized Loss For Less Than 12 Months					Continuing Unrealized Loss For 12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Mortgage-backed securities – residential	$	5,646	$	(29	)	$	—	$	—	$	5,646	$	(29	)
Government agency sponsored collateralized mortgage obligations		2,147		(14	)		—		—		2,147		(14	)

Total temporarily impaired	$	7,793	$	(43	)	$	—	$	—	$	7,793	$	(43	)

~~The~~At ~~amortized~~June 30, ~~cost~~2012, ~~and~~the ~~fair~~Company ~~value~~held of12 investments in debt securities atwhich ~~March~~were in an unrealized loss position of which all were in an unrealized loss position for less than twelve months. At December 31, ~~2012~~2011, bythe ~~contractual~~Company ~~maturity~~held 6 investments in debt securities which were asin ~~follows~~an unrealized loss position of which all were in an unrealized loss position for less than twelve months. ~~Securities~~Management ~~not~~periodically ~~due~~evaluates ateach ainvestment ~~single~~security ~~maturity~~for ~~date~~potential other-than-temporary impairment, relying primarily ~~mortgage-backed~~on industry analyst reports and observation of market conditions and interest rate fluctuations. Management believes it will be able to collect all amounts due according to the contractual terms of the underlying investment securities and ~~collateralized~~that ~~mortgage~~the ~~obligations~~noted ~~(“CMO”),~~declines in fair value are ~~shown~~considered ~~separately~~temporary and due only to normal market interest rate fluctuations. The Company does not intend to sell the securities and is not more likely than not to be required to sell these debt securities before their anticipated recovery.

	AmortizedCost		FairValue
Due in one year or less	$	—	$	—
Due from one to five years		14,328		14,941
Due from five to ten years		9,940		10,832
Due after ten years		26,844		28,875
Subtotal		51,112		54,648
Mortgage-backed securities and CMOs		68,720		70,537
Total	$	119,832	$	125,185

Sales of securities available for sale for the three and six months ended June 30, 2012 and 2011 were as follows:

Securities pledged at March 31, 2012 and December 31, 2011 had a carrying amount of approximately $37,562 and $33,661, respectively, and were pledged to secure public deposits, FHLB advances, short-term borrowings through the Federal Reserve Discount Window, treasury tax and loan payments and cash flow hedges.


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Proceeds	$	4,985		$	4,331		$	17,653		$	5,262
Gross gains		103			35			224			60
Gross losses		(15	)		(32	)		(31	)		(32	)

12Proceeds from calls of securities available for sale during the three months ended June 30, 2012 and 2011 were $1,125 and $0, with gross gains of $0 and $0 and gross losses of $0 and $0, respectively.

~~PART~~Proceeds Ifrom –calls ~~FINANCIAL~~of ~~INFORMATION~~securities available for sale during the six months ended June 30, 2012 and 2011 were $4,400 and $45, with gross gains of $4 and $0 and gross losses of $0 and $0, respectively.

~~ITEM 1. CONSOLIDATED~~11 ~~FINANCIAL STATEMENTS - continued~~

LAPORTE BANCORP,Table INC.of Contents

~~NOTES~~PART TOI ~~CONSOLIDATED~~– FINANCIAL ~~STATEMENTS~~INFORMATION ~~(Unaudited)~~

~~(dollars~~ITEM in1. ~~thousands,~~CONSOLIDATED ~~except~~FINANCIAL ~~per~~STATEMENTS ~~share~~- ~~data)~~continued

~~NOTE~~LAPORTE 5BANCORP, ~~– LOANS~~ INC.

~~Loans~~NOTES atTO ~~March 31,~~CONSOLIDATED ~~2012~~FINANCIAL ~~and~~STATEMENTS ~~December 31,~~(Unaudited) ~~2011 were as follows:~~

	March 31,2012			December 31,2011
Commercial	$	127,495		$	126,559
Mortgage		42,605			45,576
Mortgage warehouse		105,879			103,864
Residential construction		2,660			3,047
Indirect auto		1,971			2,249
Home equity		13,070			12,966
Consumer and other		4,708			4,693
Subtotal		298,388			298,954
Less: Net deferred loan (fees) costs		152			177
Allowance for loan losses		(3,964	)		(3,772	)
Loans, net	$	294,576		$	295,359

(dollars in thousands, except per share data)

AsNOTE of4 ~~March 31,~~– ~~2012,~~SECURITIES ~~the~~AVAILABLE ~~Bank’s~~FOR ~~mortgage~~SALE ~~warehouse~~– ~~division~~continued had repurchase agreements with ten mortgage companies. During the first quarter of 2012, the mortgage companies originated $538,161 in mortgage loans and sold $534,786 in mortgage loans. The Bank recorded interest income of $1,204 and mortgage warehouse loan fees of $167 which are included in loan interest income and wire transfer fees of $54 which are included in noninterest income during the first quarter of 2012 attributable to the mortgage warehouse lines.

AsThe ofamortized ~~March 31,~~cost ~~2011,~~and ~~the~~fair ~~Bank’s~~value ~~mortgage~~of ~~warehouse~~debt ~~division~~securities ~~had~~at ~~repurchase agreements with nine mortgage companies. During the first quarter of 2011~~June 30, ~~the~~2012 ~~mortgage~~by ~~companies~~contractual ~~originated~~maturity ~~$555,622~~were inas ~~mortgage loans and sold $565,767 in mortgage loans~~follows. ~~The~~Securities ~~Bank~~not ~~recorded~~due ~~interest~~at ~~income~~a ofsingle ~~$762~~maturity ~~and~~date, primarily mortgage-backed ~~warehouse~~securities ~~loan fees of $172 which are included in loan interest income~~ and ~~wire~~collateralized ~~transfer~~mortgage ~~fees~~obligations of(“CMO”), ~~$56 which~~ are ~~included~~shown ~~in noninterest income during the first quarter of 2011 attributable to the mortgage warehouse lines~~separately.


	Amortized Cost		Fair Value
Due in one year or less	$	—	$	—
Due from one to five years		16,040		16,684
Due from five to ten years		11,885		12,927
Due after ten years		24,315		26,322

Subtotal		52,240		55,933
Mortgage-backed securities and CMOs		65,630		67,582

Total	$	117,870	$	123,515

~~PART~~Securities Ipledged –at ~~FINANCIAL~~June 30, ~~INFORMATION~~2012 and December 31, 2011 had a carrying amount of approximately $40,881 and $33,661, respectively, and were pledged to secure public deposits, FHLB advances, short-term borrowings through the Federal Reserve Discount Window, treasury tax and loan payments and cash flow hedges.

~~ITEM 1. CONSOLIDATED~~NOTE ~~FINANCIAL~~5 ~~STATEMENTS~~– -LOANS ~~continued~~

~~LAPORTE BANCORP~~Loans at June 30, ~~INC.~~2012 and December 31, 2011 were as follows:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


	June 30, 2012			December 31, 2011
Commercial	$	126,678		$	126,559
Mortgage		40,230			45,576
Mortgage warehouse		119,103			103,864
Residential construction		3,218			3,047
Indirect auto		1,619			2,249
Home equity		13,068			12,966
Consumer and other		4,305			4,693

Subtotal		308,221			298,954
Less: Net deferred loan (fees) costs		134			177
Allowance for loan losses		(4,268	)		(3,772	)

Loans, net	$	304,087		$	295,359

~~(dollars~~As of June 30, 2012, the Bank’s mortgage warehouse division had repurchase agreements with 11 mortgage companies. For the six months ended June 30, 2012, the mortgage companies originated $1,261,508 in ~~thousands~~mortgage loans and sold $1,246,745 ~~except~~in ~~per~~mortgage ~~share~~loans. ~~data)~~The Bank recorded interest income of $1,159 and mortgage warehouse loan fees of $215 which are included in loan interest income and wire transfer fees of $70 which are included in noninterest income during the three months ended June 30, 2012 attributable to the mortgage warehouse lines. For the six months ended June 30, 2012, the Bank recorded interest income of $2,363 and mortgage warehouse loan fees of $382 which are included in loan interest income and wire transfer fees of $124 which are included in noninterest income attributable to the mortgage warehouse lines.

~~NOTE~~12 ~~5 – LOANS – continued~~

TheTable followingof table presents the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2012 and 2011: Contents

	Commercial			Mortgage			MortgageWarehouse		ResidentialConstruction		IndirectAuto			HomeEquity		Consumerand Other			Unallocated		Total
For the three months ended March 31, 2012
Allowance for loan losses:
Beginning balance	$	2,774		$	374		$	393	$	3	$	19		$	119	$	90		$	—	$	3,772
Charge-offs		(19	)		(21	)		—		—		—			—		(6	)		—		(46	)
Recoveries		—			—			—		—		3			—		7			—		10
Provision		245			(18	)		13		1		(5	)		1		(9	)		—		228
Ending balance	$	3,000		$	335		$	406	$	4	$	17		$	120	$	82		$	—	$	3,964
For the three months ended March 31, 2011
Allowance for loan losses:
Beginning balance	$	3,147		$	389		$	139	$	17	$	28		$	142	$	81		$	—	$	3,943
Charge-offs		(368	)		(70	)		—		—		—			—		(10	)		—		(448	)
Recoveries		—			—			—		—		1			—		6			—		7
Provisions		(144	)		110			23		—		(1	)		16		24			—		28
Ending balance	$	2,635		$	429		$	162	$	17	$	28		$	158	$	101		$	—	$	3,530

PART I – FINANCIAL INFORMATION

14ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS - continued

~~PART~~LAPORTE IBANCORP, ~~– FINANCIAL INFORMATION~~ INC.

~~ITEM 1.~~ NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(Unaudited) ~~continued~~

~~LAPORTE BANCORP~~(dollars in thousands, ~~INC.~~except per share data)

~~NOTES~~NOTE TO5 ~~CONSOLIDATED~~– ~~FINANCIAL~~LOANS ~~STATEMENTS~~– ~~(Unaudited)~~continued

~~(dollars~~As of June 30, 2011, the Bank’s mortgage warehouse division had repurchase agreements with nine mortgage companies. For the six months ended June 30, 2011, the mortgage companies originated $879,485 in ~~thousands~~mortgage loans and sold $884,939 ~~except~~in ~~per~~mortgage ~~share~~loans. ~~data)~~The Bank recorded interest income of $547 and mortgage warehouse loan fees of $100 which are included in loan interest income and wire transfer fees of $32 which are included in noninterest income during the three months ended June 30, 2011 attributable to the mortgage warehouse lines. For the six months ended June 30, 2011, the Bank recorded interest income of $1,309 and mortgage warehouse loan fees of $272 which are included in loan interest income and wire transfer fees of $88 which are included in noninterest income attributable to the mortgage warehouse lines.

~~NOTE~~13 ~~5 – LOANS – continued~~

TheTable following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2012: Contents

	Commercial		Mortgage		MortgageWarehouse		ResidentialConstruction		IndirectAuto		HomeEquity		Consumerand Other		Unallocated		Total
March 31, 2012
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	196	$	98	$	—	$	—	$	—	$	10	$	—	$	—	$	304
Collectively evaluated for impairment		2,804		237		406		4		17		110		82		—		3,660
Acquired with deteriorated credit quality		—		—		—		—		—		—		—		—		—
Total ending allowance	$	3,000	$	335	$	406	$	4	$	17	$	120	$	82	$	—	$	3,964
Loans:
Loans individually evaluated for impairment	$	4,980	$	1,641	$	—	$	—	$	—	$	14	$	—	$	—	$	6,635
Loans collectively evaluated for impairment		121,801		40,809		105,879		2,660		1,970		13,105		4,712		—		290,936
Loans acquired with deteriorated credit quality		818		151		—		—		—		—		—		—		969
Total ending loan balance	$	127,599	$	42,601	$	105,879	$	2,660	$	1,970	$	13,119	$	4,712	$	—	$	298,540

PART I – FINANCIAL INFORMATION

~~The~~ITEM ~~recorded~~1. ~~investment~~CONSOLIDATED inFINANCIAL ~~loans~~STATEMENTS ~~does~~- ~~not~~continued ~~include accrued interest.~~

15LAPORTE BANCORP, INC.

~~PART~~NOTES ITO –CONSOLIDATED FINANCIAL ~~INFORMATION~~STATEMENTS (Unaudited)

~~ITEM 1. CONSOLIDATED~~(dollars ~~FINANCIAL~~in ~~STATEMENTS~~thousands, -except ~~continued~~per share data)

~~LAPORTE BANCORP,~~NOTE ~~INC.~~5 – LOANS – continued

~~NOTES~~The TOfollowing ~~CONSOLIDATED~~table ~~FINANCIAL~~presents ~~STATEMENTS~~the ~~(Unaudited)~~activity in the allowance for loan losses by portfolio segment for the three months ended June 30, 2012 and 2011:

(dollars in thousands, except per share data)


	Commercial			Mortgage			Mortgage Warehouse		Residential Construction		Indirect Auto			Home Equity			Consumer and Other			Unallocated		Total
For the three months ended June 30, 2012
Allowance for loan losses:
Beginning balance	$	3,000		$	335		$	406	$	4	$	17		$	120		$	82		$	—	$	3,964
Charge-offs		(9	)		(11	)		—		—		(3	)		(15	)		(4	)		—		(42	)
Recoveries		38			2			—		—		—			—			3			—		43
Provision		108			92			122		4		—			36			(59	)		—		303

Ending balance	$	3,137		$	418		$	528	$	8	$	14		$	141		$	22		$	—	$	4,268

For the three months ended June 30, 2011
Allowance for loan losses:
Beginning balance	$	2,635		$	429		$	162	$	17	$	28		$	158		$	101		$	—	$	3,530
Charge-offs		(338	)		—			—		—		(5	)		—			(21	)		—		(364	)
Recoveries		—			—			—		—		1			—			4			—		5
Provisions		122			14			10		3		—			33			21			—		203

Ending balance	$	2,419		$	443		$	172	$	20	$	24		$	191		$	105		$	—	$	3,374

~~NOTE~~14 ~~5 – LOANS – continued~~

TheTable following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2011: Contents

	Commercial		Mortgage		MortgageWarehouse		ResidentialConstruction		IndirectAuto		HomeEquity		Consumerand Other		Unallocated		Total
December 31, 2011
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	112	$	128	$	—	$	—	$	—	$	11	$	—	$	—	$	251
Collectively evaluated for impairment		2,662		246		393		3		19		108		90		—		3,521
Acquired with deteriorated credit quality		—		—		—		—		—		—		—		—		—
Total ending allowance	$	2,774	$	374	$	393	$	3	$	19	$	119	$	90	$	—	$	3,772
Loans:
Loans individually evaluated for impairment	$	4,630	$	1,630	$	—	$	—	$	—	$	14	$	—	$	—	$	6,274
Loans collectively evaluated for impairment		121,236		43,788		103,864		3,045		2,249		13,002		4,697		—		291,881
Loans acquired with deteriorated credit quality		824		152		—		—		—		—		—		—		976
Total ending loan balance	$	126,690	$	45,570	$	103,864	$	3,045	$	2,249	$	13,016	$	4,697	$	—	$	299,131

PART I – FINANCIAL INFORMATION

~~The~~ITEM ~~recorded~~1. ~~investment~~CONSOLIDATED inFINANCIAL ~~loans~~STATEMENTS ~~does~~- ~~not~~continued ~~include accrued interest.~~

16LAPORTE BANCORP, INC.

~~PART~~NOTES ITO –CONSOLIDATED FINANCIAL ~~INFORMATION~~STATEMENTS (Unaudited)

~~ITEM 1. CONSOLIDATED~~(dollars ~~FINANCIAL~~in ~~STATEMENTS~~thousands, -except ~~continued~~per share data)

~~LAPORTE BANCORP,~~NOTE ~~INC.~~5 – LOANS – continued

(dollars in thousands, except per share data)


	Commercial			Mortgage			Mortgage Warehouse		Residential Construction		Indirect Auto			Home Equity			Consumer and Other			Unallocated		Total
For the six months ended June 30, 2012
Allowance for loan losses:
Beginning balance	$	2,774		$	374		$	393	$	3	$	19		$	119		$	90		$	—	$	3,772
Charge-offs		(28	)		(32	)		—		—		(3	)		(15	)		(10	)		—		(88	)
Recoveries		38			2			—		—		3			—			10			—		53
Provision		353			74			135		5		(5	)		37			(68	)		—		531

Ending balance	$	3,137		$	418		$	528	$	8	$	14		$	141		$	22		$	—	$	4,268

For the six months ended June 30, 2011
Allowance for loan losses:
Beginning balance	$	3,147		$	389		$	139	$	17	$	28		$	142		$	81		$	—	$	3,943
Charge-offs		(706	)		(70	)		—		—		(5	)		—			(31	)		—		(812	)
Recoveries		—			—			—		—		2			—			10			—		12
Provisions		(22	)		124			33		3		(1	)		49			45			—		231

Ending balance	$	2,419		$	443		$	172	$	20	$	24		$	191		$	105		$	—	$	3,374

~~NOTE~~15 ~~5 – LOANS – continued~~

TheTable following table presents information related to impaired loans by class of loans as of and for the three months ended March 31, 2012: Contents

	UnpaidPrincipalBalance		RecordedInvestment		Allowance forLoan LossesAllocated		AverageRecordedInvestment		InterestIncomeRecognized		Cash BasisInterestRecognized
With no related allowance recorded:
Commercial:
Real estate	$	1,408	$	1,408	$	—	$	1,422	$	2	$	—
Land		2,527		2,527		—		2,528		3		—
Mortgage		1,044		1,044		—		1,079		3		—
Subtotal		4,979		4,979		—		5,029		8		—
With an allowance recorded:
Commercial:
Commercial and other		—		—		—		23		—		—
Real estate		500		501		76		502		—		—
Land		544		544		120		549		—		—
Mortgage		597		597		98		633		—		—
Home equity		14		14		10		14		—		—
Subtotal		1,655		1,656		304		1,721		—		—
Total	$	6,634	$	6,635	$	304	$	6,750	$	8	$	—

PART I – FINANCIAL INFORMATION

~~The~~ITEM ~~recorded~~1. ~~investment~~CONSOLIDATED inFINANCIAL ~~loans~~STATEMENTS ~~does~~- ~~not~~continued ~~include accrued interest.~~

17LAPORTE BANCORP, INC.

~~PART~~NOTES ITO –CONSOLIDATED FINANCIAL ~~INFORMATION~~STATEMENTS (Unaudited)

~~ITEM 1. CONSOLIDATED~~(dollars ~~FINANCIAL~~in ~~STATEMENTS~~thousands, -except ~~continued~~per share data)

~~LAPORTE BANCORP,~~NOTE ~~INC.~~5 – LOANS – continued

~~NOTES~~The TOfollowing ~~CONSOLIDATED~~table ~~FINANCIAL~~presents ~~STATEMENTS~~the ~~(Unaudited)~~balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2012:

(dollars in thousands, except per share data)


	Commercial		Mortgage		Mortgage Warehouse		Residential Construction		Indirect Auto		Home Equity		Consumer and Other		Unallocated		Total
June 30, 2012
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	1,170	$	133	$	—	$	—	$	—	$	10	$	—	$	—	$	1,313
Collectively evaluated for impairment		1,967		285		528		8		14		131		22		—		2,955
Acquired with deteriorated credit quality		—		—		—		—		—		—		—		—		—

Total ending allowance	$	3,137	$	418	$	528	$	8	$	14	$	141	$	22	$	—	$	4,268

Loans:
Loans individually evaluated for impairment	$	5,704	$	1,659	$	—	$	—	$	—	$	39	$	—	$	—	$	7,402
Loans collectively evaluated for impairment		120,332		38,415		119,103		3,209		1,618		13,079		4,308		—		300,064
Loans acquired with deteriorated credit quality		740		149		—		—		—		—		—		—		889

Total ending loan balance	$	126,776	$	40,223	$	119,103	$	3,209	$	1,618	$	13,118	$	4,308	$	—	$	308,355

~~NOTE~~The 5recorded –investment ~~LOANS~~in –loans ~~continued~~does not include accrued interest.

~~The~~16 ~~following table presents information related to impaired loans by class of loans as of and for the three months ended March 31, 2011:~~

	UnpaidPrincipalBalance		RecordedInvestment		Allowance forLoan LossesAllocated		AverageRecordedInvestment		InterestIncomeRecognized		Cash BasisInterestRecognized
With no related allowance recorded:
Commercial:
Commercial and other	$	28	$	28	$	—	$	29	$	—	$	—
Real estate		1,166		1,166		—		1,162		4		—
Land		2,248		2,248		—		2,248		12		—
Mortgage		637		636		—		640		11		—
Residential construction:
Land		87		87		—		87		—		—
Subtotal		4,166		4,165		—		4,166		27		—
With an allowance recorded:
Commercial:
Real estate		1,298		1,299		357		1,300		6		—
Land		712		713		119		713		—		—
Mortgage		271		271		52		274		—		—
Home equity		377		377		26		377		—		—
Subtotal		2,658		2,660		554		2,664		6		—
Total	$	6,824	$	6,825	$	554	$	6,830	$	33	$	—

~~The~~PART ~~recorded~~I ~~investment~~– inFINANCIAL ~~loans~~INFORMATION ~~does not include accrued interest.~~

18ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS - continued

~~PART~~LAPORTE IBANCORP, ~~– FINANCIAL INFORMATION~~ INC.

~~ITEM 1.~~ NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -(Unaudited) ~~continued~~

~~LAPORTE BANCORP~~(dollars in thousands, ~~INC.~~except per share data)

~~NOTES~~NOTE TO5 ~~CONSOLIDATED~~– ~~FINANCIAL~~LOANS ~~STATEMENTS~~- ~~(Unaudited)~~continued

~~(dollars~~The following table presents the balance in ~~thousands,~~the ~~except~~allowance ~~per~~for ~~share~~loan ~~data)~~losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2011:

NOTE 5 – LOANS – continued


	Mortgage		Commercial		Mortgage Warehouse		Residential Construction		Indirect Auto		Home Equity		Consumer and Other		Unallocated		Total
December 31, 2011
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	112	$	128	$	—	$	—	$	—	$	11	$	—	$	—	$	251
Collectively evaluated for impairment		2,662		246		393		3		19		108		90		—		3,521
Acquired with deteriorated credit quality		—		—		—		—		—		—		—		—		—

Total ending allowance	$	2,774	$	374	$	393	$	3	$	19	$	119	$	90	$	—	$	3,772

Loans:
Loans individually evaluated for impairment	$	4,630	$	1,630	$	—	$	—	$	—	$	14	$	—	$	—	$	6,274
Loans collectively evaluated for impairment		121,236		43,788		103,864		3,045		2,249		13,002		4,697		—		291,881
Loans acquired with deteriorated credit quality		824		152		—		—		—		—		—		—		976

Total ending loan balance	$	126,690	$	45,570	$	103,864	$	3,045	$	2,249	$	13,016	$	4,697	$	—	$	299,131

The ~~following~~recorded ~~table~~investment ~~presents~~in ~~information related to impaired~~ loans bydoes ~~class~~not ofinclude ~~loans~~accrued asinterest. ~~of December 31, 2011:~~

	UnpaidPrincipalBalance		RecordedInvestment		Allowance forLoan LossesAllocated
With no related allowance recorded:
Commercial:
Real estate	$	1,299	$	1,298	$	—
Land		2,248		2,248		—
Mortgage		945		945		—
Subtotal		4,492		4,491		—
With an allowance recorded:
Commercial:
Commercial and other		28		29		6
Real estate		502		503		29
Land		552		552		77
Mortgage		685		685		128
Home equity		14		14		11
Subtotal		1,781		1,783		251
Total	$	6,273	$	6,274	$	251

TheTable recordedof investment in loans does not include accrued interest. Contents

~~The~~PART ~~following~~I ~~table~~– ~~presents~~FINANCIAL ~~the~~INFORMATION ~~recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans as of March 31, 2012 and December 31, 2011:~~

	Nonaccrual				Loans Past Due Over 90 Days Still Accruing
	March 31,2012		December 31,2011		March 31,2012		December 31,2011
Commercial:
Commercial and other	$	32	$	62	$	—	$	—
Real estate		2,007		2,027		—		—
Land		3,005		2,800		—		—
Mortgage		1,448		1,454		—		—
Indirect auto		7		8		—		—
Home equity		14		14		—		—
Total	$	6,513	$	6,365	$	—	$	—

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS - continued

~~The~~LAPORTE ~~recorded~~BANCORP, ~~investment in loans does not include accrued interest~~INC.

19NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~PART~~(dollars Iin –thousands, ~~FINANCIAL~~except ~~INFORMATION~~per share data)

~~ITEM 1. CONSOLIDATED~~NOTE ~~FINANCIAL~~5 ~~STATEMENTS~~– LOANS - continued

~~LAPORTE BANCORP,~~The ~~INC.~~following table presents information related to impaired loans by class of loans as of June 30, 2012:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
June 30, 2012
With no related allowance recorded:
Commercial:
Real estate	$	909	$	907	$	—
Land		1,459		1,459		—
Mortgage		863		863		—
Home equity		25		25		—

Subtotal		3,256		3,254		—

With an allowance recorded:
Commercial:
Real estate		1,730		1,732		489
Land		1,605		1,606		681
Mortgage		797		796		133
Home equity		14		14		10

Subtotal		4,146		4,148		1,313

Total	$	7,402	$	7,402	$	1,313

(dollars in thousands, except per share data)


	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
December 31, 2011
With no related allowance recorded:
Commercial:
Real estate	$	1,299	$	1,298	$	—
Land		2,248		2,248		—
Mortgage		945		945		—

Subtotal		4,492		4,491		—

With an allowance recorded:
Commercial:
Commercial and other		28		29		6
Real estate		502		503		29
Land		552		552		77
Mortgage		685		685		128
Home equity		14		14		11

Subtotal		1,781		1,783		251

Total	$	6,273	$	6,274	$	251

~~NOTE~~The 5recorded –investment ~~LOANS~~in –loans ~~continued~~does not include accrued interest.

~~The~~18 ~~following table presents the aging of the recorded investment in past due loans as of March 31, 2012 and December 31, 2011 by class of loans:~~

	30-59DaysPast Due		60-89DaysPast Due		Greater than90 DaysPast Due		TotalPast Due		Loans NotPast Due		Total
March 31, 2012
Commercial:
Commercial and other	$	—	$	—	$	—	$	—	$	21,549	$	21,549
Real estate		1,042		—		1,542		2,584		80,733		83,317
Five or more family		—		—		—		—		12,995		12,995
Construction		—		—		—		—		590		590
Land		213		66		2,248		2,527		6,621		9,148
Mortgage		1,158		—		1,054		2,212		40,389		42,601
Mortgage warehouse		—		—		—		—		105,879		105,879
Residential construction:
Construction		96		—		—		96		2,150		2,246
Land		—		—		—		—		414		414
Indirect		17		—		7		24		1,946		1,970
Home equity		15		—		14		29		13,090		13,119
Consumer and other		133		—		—		133		4,579		4,712
Total	$	2,674	$	66	$	4,865	$	7,605	$	290,935	$	298,540

	30-59DaysPast Due		60-89DaysPast Due		Greater than90 DaysPast Due		TotalPast Due		Loans NotPast Due		Total
December 31, 2011
Commercial:
Commercial and other	$	—	$	—	$	29	$	29	$	18,077	$	18,106
Real estate		1,057		128		1,589		2,774		77,702		80,476
Five or more family		43		—		—		43		17,670		17,713
Construction		—		—		—		—		1,172		1,172
Land		216		—		2,248		2,464		6,759		9,223
Mortgage		1,293		55		1,115		2,463		43,107		45,570
Mortgage warehouse		—		—		—		—		103,864		103,864
Residential construction:
Construction		—		—		—		—		2,629		2,629
Land		—		—		—		—		416		416
Indirect auto		27		—		8		35		2,214		2,249
Home equity		—		—		14		14		13,002		13,016
Consumer and other		—		14		—		14		4,683		4,697
Total	$	2,636	$	197	$	5,003	$	7,836	$	291,295	$	299,131

PART I – FINANCIAL INFORMATION

~~The~~ITEM ~~recorded~~1. ~~investment~~CONSOLIDATED inFINANCIAL ~~loans~~STATEMENTS ~~does~~- ~~not~~continued ~~include accrued interest.~~

20LAPORTE BANCORP, INC.

~~PART~~NOTES ITO –CONSOLIDATED FINANCIAL ~~INFORMATION~~STATEMENTS (Unaudited)

~~ITEM 1. CONSOLIDATED~~(dollars ~~FINANCIAL~~in ~~STATEMENTS~~thousands, -except ~~continued~~per share data)

~~LAPORTE BANCORP,~~NOTE ~~INC.~~5 – LOANS – continued

~~NOTES~~The TOfollowing ~~CONSOLIDATED~~table ~~FINANCIAL~~presents ~~STATEMENTS~~loans ~~(Unaudited)~~individually evaluated for impairment by class of loans as of June 30, 2012 and 2011:

(dollars in thousands, except per share data)


	Three Months Ended June 30, 2012				Six Months Ended June 30, 2012
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial:
Commercial and other	$	—	$	—	$	11	$	—
Real estate		1,045		2		1,234		4
Land		1,459		—		1,994		3
Mortgage		933		5		1,006		8
Home equity		25		—		12		—
Subtotal		3,462		7		4,257		15
With an allowance recorded:
Commercial:
Real estate		1,734		—		1,118		—
Land		1,610		—		1,080		—
Mortgage		797		—		715		—
Home equity		14		—		14		—
Subtotal		4,155		—		2,927		—
Total	$	7,617	$	7	$	7,184	$	15

NOTE 5 – LOANS – continued


	Three Months Ended June 30, 2011				Six Months Ended June 30, 2011
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial:
Real estate	$	1,164	$	—	$	1,163	$	4
Land		2,248		—		2,248		12
Mortgage		605		4		623		15
Residential construction:
Land		87		—		87		—
Subtotal		4,104		4		4,121		31
With an allowance recorded:
Commercial:
Commercial and other		60		—		45		—
Real estate		1,254		—		1,275		6
Land		707		—		710		—
Mortgage		610		—		443		—
Home equity		377		—		377		—
Subtotal		3,008		—		2,850		6
Total	$	7,112	$	4	$	6,971	$	37

~~Troubled~~19 ~~Debt Restructurings:~~

AtTable March 31, 2012 and December 31, 2011, the outstanding balance of loans that were modified as troubled debt restructurings totaled $251 and $254, respectively. All of these loans were considered nonperforming troubled debt restructurings. The Company has allocated $13 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of March 31, 2012 and December 31, 2011. The Company has not committed to lend additional amounts as of March 31, 2012 to customers with outstanding loans that are classified as troubled debt restructurings. Contents

~~During~~PART ~~the~~I ~~three~~– ~~months~~FINANCIAL ~~ended~~INFORMATION March 31, 2012, the Bank did not modify any loans which were considered to be troubled debt restructurings. During the year ending December 31, 2011, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan.

~~For~~ITEM ~~the~~1. ~~three~~CONSOLIDATED ~~months~~FINANCIAL ~~ended~~STATEMENTS ~~March 31,~~- ~~2012,~~continued ~~no troubled debt restructurings defaulted within twelve months following the modification.~~

ALAPORTE ~~loan~~BANCORP, ~~is considered to be in payment default once it is 90 days contractually past due under the modified terms~~INC.

InNOTES ~~order~~TO toCONSOLIDATED ~~determine~~FINANCIAL ~~whether~~STATEMENTS a(Unaudited) borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s management loan committee.

~~Credit Quality~~(dollars ~~Indicators~~in thousands, except per share data)

~~The~~NOTE ~~Company~~5 ~~categorized~~– ~~loans~~LOANS ~~into~~– ~~risk~~continued categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. The analysis includes loans with risk ratings of Special Mention, Substandard and Doubtful. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

~~Special~~The ~~Mention.~~following ~~Loans~~table ~~classified~~presents asthe ~~special~~recorded ~~mention~~investment ~~have~~in anonaccrual ~~potential~~loans ~~weakness~~and ~~that~~loans ~~deserves~~past ~~management’s~~due ~~close~~over ~~attention.~~90 ~~If left~~days ~~uncorrected,~~still ~~these~~on ~~potential~~accrual ~~weaknesses~~by ~~may~~class ~~result in deterioration~~ of ~~the~~loans ~~repayment~~as ~~prospects for the loan or~~ of ~~the~~June 30, ~~institution’s~~2012 ~~credit~~and ~~position~~December 31, at2011: ~~some future date.~~

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.


	Nonaccrual				Loans Past Due Over 90 Days Still Accruing
	June 30, 2012		December 31, 2011		June 30, 2012		December 31, 2011
Commercial:
Commercial and other	$	32	$	62	$	—	$	—
Real estate		2,580		2,027		—		—
Land		3,064		2,800		—		—
Mortgage		1,489		1,454		—		—
Indirect auto		6		8		—		—
Home equity		39		14		—		—

Total	$	7,210	$	6,365	$	—	$	—

~~Doubtful.~~The ~~Loans~~recorded ~~classified~~investment ~~as doubtful have all the weaknesses inherent~~ in ~~those~~loans ~~classified~~does asnot ~~substandard,~~include ~~with~~accrued ~~the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable~~interest.

21The following table presents the aging of the recorded investment in past due loans as of June 30, 2012 by class of loans:

PART I – FINANCIAL INFORMATION


	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
June 30, 2012
Commercial:
Commercial and other	$	—	$	—	$	—	$	—	$	20,396	$	20,396
Real estate		848		1,207		1,719		3,774		79,684		83,458
Five or more family		—		—		—		—		12,953		12,953
Construction		—		—		—		—		1,197		1,197
Land		—		31		2,527		2,558		6,214		8,772
Mortgage		—		409		1,199		1,608		38,615		40,223
Mortgage warehouse		—		—		—		—		119,103		119,103
Residential construction:
Construction		—		—		—		—		2,798		2,798
Land		—		—		—		—		411		411
Indirect		22		—		6		28		1,590		1,618
Home equity		209		9		39		257		12,861		13,118
Consumer and other		—		—		—		—		4,308		4,308

Total	$	1,079	$	1,656	$	5,490	$	8,225	$	300,130	$	308,355

~~ITEM 1. CONSOLIDATED~~The ~~FINANCIAL~~recorded ~~STATEMENTS~~investment -in ~~continued~~loans does not include accrued interest.

~~LAPORTE BANCORP,~~20 ~~INC.~~

NOTESTable TOof CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Contents

~~(dollars~~PART inI ~~thousands,~~– ~~except~~FINANCIAL ~~per~~INFORMATION ~~share data)~~

~~NOTE~~ITEM 51. –CONSOLIDATED ~~LOANS~~FINANCIAL –STATEMENTS - continued

~~Loans~~LAPORTE not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The Bank monitors credit quality on loans not rated through the loan’s individual payment performance. As of March 31BANCORP, ~~2012, the most recent analysis performed, and December 31, 2011 the~~INC. ~~risk category of loans by class of loans is as follows:~~

	NotRated		Pass		SpecialMention		Substandard		Doubtful
March 31, 2012
Commercial:
Commercial and other	$	152	$	21,024	$	373	$	—	$	—
Real estate		74		69,074		7,573		6,535		61
Five or more family		205		9,006		3,784		—		—
Construction		—		506		84		—		—
Land		—		5,416		660		3,072		—
Mortgage		35,160		5,091		466		1,884		—
Mortgage warehouse		105,879		—		—		—		—
Residential construction:
Construction		2,246		—		—		—		—
Land		414		—		—		—		—
Indirect auto		1,970		—		—		—		—
Home equity		12,563		307		91		158		—
Consumer and other		3,815		897		—		—		—
Total	$	162,478	$	111,321	$	13,031	$	11,649	$	61

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

	NotRated		Pass		SpecialMention		Substandard		Doubtful
December 31, 2011
Commercial:
Commercial and other	$	67	$	17,500	$	510	$	29	$	—
Real estate		16		65,136		11,658		3,605		61
Five or more family		208		13,520		3,985		—		—
Construction		—		1,079		93		—		—
Land		—		5,447		694		3,082		—
Mortgage		37,769		4,946		722		2,133		—
Mortgage warehouse		103,864		—		—		—		—
Residential construction:
Construction		2,629		—		—		—		—
Land		416		—		—		—		—
Indirect auto		2,249		—		—		—		—
Home equity		12,623		121		92		180		—
Consumer and other		3,776		921		—		—		—
Total	$	163,617	$	108,670	$	17,754	$	9,029	$	61

(dollars in thousands, except per share data)

~~The~~NOTE ~~recorded~~5 ~~investment~~– inLOANS ~~loans~~– ~~does~~continued ~~not include accrued interest.~~

22The following table presents the aging of the recorded investment in past due loans as of December 31, 2011 by class of loans:

PART I – FINANCIAL INFORMATION


	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
December 31, 2011
Commercial:
Commercial and other	$	—	$	—	$	29	$	29	$	18,077	$	18,106
Real estate		1,057		128		1,589		2,774		77,702		80,476
Five or more family		43		—		—		43		17,670		17,713
Construction		—		—		—		—		1,172		1,172
Land		216		—		2,248		2,464		6,759		9,223
Mortgage		1,293		55		1,115		2,463		43,107		45,570
Mortgage warehouse		—		—		—		—		103,864		103,864
Residential construction:
Construction		—		—		—		—		2,629		2,629
Land		—		—		—		—		416		416
Indirect auto		27		—		8		35		2,214		2,249
Home equity		—		—		14		14		13,002		13,016
Consumer and other		—		14		—		14		4,683		4,697

Total	$	2,636	$	197	$	5,003	$	7,836	$	291,295	$	299,131

~~ITEM 1. CONSOLIDATED~~The ~~FINANCIAL~~recorded ~~STATEMENTS~~investment -in ~~continued~~loans does not include accrued interest.

~~LAPORTE BANCORP,~~Troubled ~~INC.~~Debt Restructurings:

~~NOTES~~At TOJune 30, ~~CONSOLIDATED~~2012 ~~FINANCIAL~~and ~~STATEMENTS~~December 31, ~~(Unaudited)~~2011, the outstanding balance of loans that were modified as troubled debt restructurings totaled $247 and $254, respectively. All of these loans were considered nonperforming troubled debt restructurings. The Company has allocated $13 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of June 30, 2012 and December 31, 2011. The Company has not committed to lend additional amounts as of June 30, 2012 to customers with outstanding loans that are classified as troubled debt restructurings.

~~(dollars~~During inthe ~~thousands~~three and six months ended June 30, ~~except~~2012, ~~per~~the ~~share~~Bank ~~data)~~did not modify any loans which were considered to be troubled debt restructurings. During the year ending December 31, 2011, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan.

~~NOTE~~For 5the –three ~~LOANS~~and –six ~~continued~~months ended June 30, 2012, no troubled debt restructurings defaulted within twelve months following the modification.

~~Purchased~~A ~~Loans~~loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

~~The~~In ~~Company~~order ~~purchased~~to ~~loans~~determine ~~during~~whether ~~2007,~~a ~~for~~borrower ~~which~~is ~~there~~experiencing ~~was,~~financial ~~at acquisition~~difficulty, ~~evidence~~an ofevaluation ~~deterioration~~is performed of ~~credit~~the ~~quality~~probability that ~~since~~the ~~origination~~borrower ~~and~~will itbe ~~was~~in ~~probable,~~payment atdefault ~~acquisition,~~on ~~that~~any ~~all~~of ~~contractually required~~its ~~payments~~debt ~~would~~in ~~not~~the beforeseeable ~~collected.~~future ~~The~~without ~~outstanding~~the ~~balance~~modification. ~~and~~This ~~carrying~~evaluation ~~amount~~is ofperformed ~~those~~under ~~loans~~the isCompany’s asmanagement ~~follows:~~loan committee.

	March 31,2012		December 31,2011
Commercial:
Commercial and other	$	32	$	36
Real estate		917		923
Mortgage		153		154
Outstanding balance	$	1,102	$	1,113
Carrying amount, net of allowance of $0	$	970	$	977

AccretableTable yield,of or income expected to be collected, is as follows: Contents

	Three Months EndedMarch 31,
	2012			2011
Beginning balance	$	193		$	250
Reclassification from non-accretable yield		4			8
Accretion of income		(18	)		(22	)
Ending balance	$	179		$	236

PART I – FINANCIAL INFORMATION

~~For~~ITEM ~~the purchased loans disclosed above, the Company did not increase the allowance for loan losses during 2012 or 2011~~1. No ~~allowance~~CONSOLIDATED ~~for~~FINANCIAL ~~loan~~STATEMENTS ~~losses~~- ~~were~~continued ~~reversed during 2012 or 2011.~~

23LAPORTE BANCORP, INC.

~~PART~~NOTES ITO –CONSOLIDATED FINANCIAL ~~INFORMATION~~STATEMENTS (Unaudited)

~~ITEM 1. CONSOLIDATED~~(dollars ~~FINANCIAL~~in ~~STATEMENTS~~thousands, -except ~~continued~~per share data)

~~LAPORTE BANCORP,~~NOTE ~~INC.~~5 – LOANS - continued

~~NOTES~~Credit TOQuality ~~CONSOLIDATED~~Indicators ~~FINANCIAL STATEMENTS (Unaudited)~~

~~(dollars~~The inCompany ~~thousands~~categorized loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, ~~except~~historical ~~per~~payment ~~share~~experience, credit ~~data)~~documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. The analysis includes loans with risk ratings of Special Mention, Substandard and Doubtful. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

~~NOTE~~Special 6Mention. –Loans ~~FAIR~~classified ~~VALUE~~as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

~~Fair~~Substandard. ~~value~~Loans isclassified ~~the~~as ~~exchange~~substandard ~~price~~are ~~that~~inadequately ~~would~~protected beby ~~received~~the ~~for~~current annet ~~asset~~worth orand ~~paid~~paying tocapacity ~~transfer~~of athe ~~liability~~obligor ~~(exit~~or ~~price)~~of in the ~~principal~~collateral ~~or most~~pledged, ~~advantageous~~if ~~market~~any. ~~for~~Loans ~~the~~so ~~asset~~classified orhave ~~liability~~a well-defined inweakness anor ~~orderly~~weaknesses ~~transaction~~that ~~between~~jeopardize ~~market~~the ~~participants~~liquidation onof the ~~measurement date~~debt. ~~There~~They are ~~three~~characterized ~~levels~~by ofthe ~~inputs~~distinct possibility that ~~may~~the beinstitution ~~used~~will tosustain ~~measure~~some ~~fair~~loss ~~values:~~if the deficiencies are not corrected.

~~Level~~Doubtful. 1Loans –classified ~~Quoted~~as ~~prices~~doubtful ~~(unadjusted)~~have ~~for~~all ~~identical~~the ~~assets~~weaknesses orinherent ~~liabilities~~ in ~~active~~those ~~markets~~classified ~~that~~as substandard, with the ~~entity~~added ~~has~~characteristic that the weaknesses ~~ability~~make tocollection ~~access as~~or ofliquidation in full, on the ~~measurement~~basis ~~date~~of currently existing facts, conditions, and values, highly questionable and improbable.

~~Level~~Loans 2not –meeting ~~Significant~~the ~~other~~criteria ~~observable~~above ~~inputs~~that ~~other~~are ~~than~~analyzed ~~Level~~individually 1as ~~prices~~part ~~such~~of asthe ~~quoted~~above ~~prices for~~described ~~similar~~process ~~assets~~are orconsidered ~~liabilities;~~to ~~quoted~~be ~~prices~~pass inrated ~~markets~~loans. ~~that~~The ~~are~~Bank monitors credit quality on loans not ~~active;~~rated through orthe ~~other~~loan’s ~~inputs~~individual ~~that~~payment ~~are~~performance. ~~observable~~As orof ~~can~~June 30, be2012, ~~corroborated~~the most recent analysis performed, the risk category of loans by ~~observable~~class ~~market~~of ~~data.~~loans is as follows:

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.


	Not Rated		Pass		Special Mention		Substandard		Doubtful
June 30, 2012
Commercial:
Commercial and other	$	215	$	19,835	$	346	$	—	$	—
Real estate		88		68,050		7,071		8,249		—
Five or more family		202		9,000		3,751		—		—
Construction		—		1,197		—		—		—
Land		—		4,905		803		3,064		—
Mortgage		32,812		4,904		459		2,048		—
Mortgage warehouse		119,103		—		—		—		—
Residential construction:										—
Construction		2,798		—		—		—		—
Land		411		—		—		—		—
Indirect auto		1,618		—		—		—		—
Home equity		12,718		129		89		182		—
Consumer and other		3,440		868		—		—		—

Total	$	173,405	$	108,888	$	12,519	$	13,543	$	—

The ~~Company~~recorded ~~used~~investment ~~the~~in ~~following~~loans ~~methods~~does ~~and~~not ~~significant~~include ~~assumptions~~accrued tointerest. ~~estimate the fair value of each type of financial asset:~~

~~Investment~~22 Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2).

LoansTable Held for Sale and Loan Commitment Derivatives: The fair value of loans held for sale and residential mortgage loan commitments are determined by obtaining quoted prices for similar loans and commitments with similar interest rates and maturities from major secondary markets (Level 2). Contents

~~Derivatives-Interest~~PART ~~Rate~~I ~~Swaps:~~– ~~The~~FINANCIAL ~~fair~~INFORMATION ~~value of derivatives are based on valuation models using observable market data as of the measurement date (Level 2).~~

~~Impaired~~ITEM ~~Loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value~~1. ~~Impaired~~CONSOLIDATED ~~loans~~FINANCIAL ~~carried~~STATEMENTS at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals performed by qualified independent third-~~party~~ ~~appraisers.~~continued These appraisals may utilize a single valuation approach or a combination of approaches including cost, comparable sales and the income approach. The cost approach is based on the cost to replace the existing property. The comparable sales approach evaluates the sales prices of comparable properties within the same market area. The income approach considers net operating income generated by the property and the rate of return required by an investor. Adjustments are routinely made in the appraisal process by the independent third-party appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

24LAPORTE BANCORP, INC.

~~PART~~NOTES ITO –CONSOLIDATED FINANCIAL ~~INFORMATION~~STATEMENTS (Unaudited)

~~ITEM 1. CONSOLIDATED~~(dollars ~~FINANCIAL~~in ~~STATEMENTS~~thousands, -except ~~continued~~per share data)

~~LAPORTE BANCORP,~~NOTE ~~INC.~~5 – LOANS - continued

~~NOTES~~As TOof ~~CONSOLIDATED~~December 31, ~~FINANCIAL~~2011 ~~STATEMENTS~~the ~~(Unaudited)~~risk category of loans by class of loans is as follows:

(dollars in thousands, except per share data)


	Not Rated		Special Pass		Mention		Substandard		Doubtful
December 31, 2011
Commercial:
Commercial and other	$	67	$	17,500	$	510	$	29	$	—
Real estate		16		65,136		11,658		3,605		61
Five or more family		208		13,520		3,985		—		—
Construction		—		1,079		93		—		—
Land		—		5,447				694		3,082
Mortgage		37,769		4,946		722		2,133		—
Mortgage warehouse		103,864		—		—		—		—
Residential construction:
Construction		2,629		—		—		—		—
Land		416		—		—		—		—
Indirect auto		2,249		—		—		—		—
Home equity		12,623		121		92		180		—
Consumer and other		3,776		921		—		—		—

Total	$	163,617	$	108,670	$	17,754	$	9,029	$	61

~~NOTE~~The 6recorded –investment ~~FAIR~~in ~~VALUE~~loans -does ~~continued~~not include accrued interest.

~~Other~~Purchased ~~Real~~Loans Estate Owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals performed by qualified independent third-party appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including cost, comparable sales and the income approach. The cost approach is based on the cost to replace the existing property. The comparable sales approach evaluates the sales prices of comparable properties within the same market area. The income approach considers net operating income generated by the property and the rate of return required by an investor. Adjustments are routinely made in the appraisal process by the independent third-party appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

The ~~President/Chief~~Company ~~Financial~~purchased ~~Officer (“President/CFO”)~~loans ~~and~~during ~~Executive~~2007, ~~Vice President – Credit (“EVP – Credit”) are responsible~~ for ~~determining~~which ~~the~~there ~~valuation~~was, ~~processes~~at acquisition, ~~and~~evidence ~~procedures for the fair value measurement~~ of ~~impaired~~deterioration ~~loans and other real estate owned properties. The President/CFO and EVP – Credit review impaired loans and other real estate owned properties on a quarterly basis to determine the accuracy~~ of ~~the~~credit ~~observable~~quality ~~inputs,~~since ~~generally~~origination ~~third party appraisals, auction values, values derived from trade publications~~ and ~~any~~it ~~additional~~was ~~data received from the borrower~~probable, ~~and~~at ~~the appropriateness of unobservable inputs~~acquisition, ~~generally~~that ~~discounts~~all ~~due~~contractually torequired ~~collection~~payments ~~issues~~would ~~and~~not ~~current~~be ~~market conditions~~collected. The ~~EVP~~outstanding –balance ~~Credit determines discounts based on the valuation source~~ and ~~asset~~carrying ~~type~~amount ~~for~~of ~~impaired~~those loans. ~~These~~is ~~discounts are reviewed periodically, annually at a minimum, for appropriateness. Current trends in market values and gains and losses on sales of similar assets are~~as ~~also~~follows: ~~considered when determining discounts of asset categories.~~

At March 31, 2012, discounts applied when calculating the fair value of impaired loans ranged from 0% to approximately 35% depending on the source of value and the nature of the assets securing these loans. Real estate collateral is valued based on evaluations or appraisals and are generally discounted by 20%, with higher discounts for properties in poor condition or property with characteristics which may make it more difficult to market. Commercial loans not secured by real estate are generally discounted 30% for receivables, 50% to 75% for inventory with higher discounts when monthly borrowing base certificates are not required or received and 15% of trade publication and auction values for automobiles.


	June 30, 2012		December 31, 2011
Commercial:
Commercial and other	$	32	$	36
Real estate		741		923
Mortgage		150		154

Outstanding balance	$	923	$	1,113

Carrying amount, net of allowance of $0	$	889	$	977

At23 March 31, 2012, discounts applied to the calculation of the fair value of other real estate owned properties ranged from 0% to approximately 40%. The fair value of other real estate owned properties are based on the lower of cost or fair value of the underlying collateral less expected selling costs. Collateral values are estimated primarily through appraisals. If properties are held in other real estate owned for longer than 12 – 18 months a new appraisal is obtained.

MortgageTable Servicing Rights: On a quarterly basis, loan servicing rights are evaluated for impairment based on the fair value of the rights as compared to the carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level, based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (Level 2). Fair value at March 31, 2012 was determined using a discount rate of 9.0%, prepayment speeds ranging from 9.6% to 24.0%, depending on the stratification of the specific right, and a weighted average default rate of approximately 0.5%. Fair value at December 31, 2011 was determined using a discount rate of 9.0%, prepayment speeds ranging from 14.3% to 23.8%, depending on the stratification of the specific right, and a weighted average default rate of approximately 0.5%. Contents

25PART I – FINANCIAL INFORMATION

~~PART~~ITEM I1. –CONSOLIDATED FINANCIAL ~~INFORMATION~~STATEMENTS - continued

~~ITEM 1. CONSOLIDATED~~LAPORTE ~~FINANCIAL~~BANCORP, ~~STATEMENTS - continued~~ INC.

~~LAPORTE BANCORP,~~NOTES ~~INC.~~TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~NOTES~~(dollars TOin ~~CONSOLIDATED~~thousands, ~~FINANCIAL~~except ~~STATEMENTS~~per ~~(Unaudited~~share data)

~~(dollars~~NOTE in5 ~~thousands,~~– ~~except~~LOANS ~~per~~- ~~share~~continued ~~data)~~

~~NOTE~~Accretable 6yield, –or ~~FAIR~~income ~~VALUE~~expected -to ~~continued~~be collected, is as follows:

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below:


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Beginning balance	$	179		$	235		$	193		$	250
Reclassification from non-accretable yield		—			8			4			15
Accretion of income		(21	)		(22	)		(39	)		(44	)
Disposals		(3	)		—			(3	)

Ending balance	$	155		$	221		$	155		$	221

				Fair Value Measurements at
				March 31, 2012
				Quoted Prices in		Significant			Significant
				Active Markets for		Other			Unobservable
	Carrying			Identical Assets		Observable Inputs			Inputs
	Value			(Level 1)		(Level 2)			(Level 3)
Financial Assets
Investment securities available for sale
U.S. federal agency obligations	$	9,524		$	—	$	9,524		$	—
State and municipal		42,284			—		42,284			—
Mortgage-backed securities-residential		19,671			—		19,671			—
Government agency sponsored collateralized mortgage obligations		50,866			—		50,866			—
Corporate debt securities		2,840			—		2,840			—
Total investment securities Available-for-sale	$	125,185		$	—	$	125,185		$	—
Loans held for sale	$	3,532		$	—	$	3,532		$	—
Derivatives – residential mortgage loan commitments	$	65		$	—	$	65		$	—
Financial Liabilities
Derivatives – interest rate swaps	$	(2,190	)	$	—	$	(2,190	)	$	—

For the purchased loans disclosed above, the Company did not increase the allowance for loan losses during 2012 or 2011. No allowance for loan losses were reversed during 2012 or 2011.

26NOTE 6 – FAIR VALUE

~~PART~~Fair Ivalue –is ~~FINANCIAL~~the ~~INFORMATION~~exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

~~ITEM~~ Level 1~~. CONSOLIDATED~~ ~~FINANCIAL~~– ~~STATEMENTS~~Quoted -prices ~~continued~~(unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

~~LAPORTE~~Level 2 – Significant other observable inputs other than Level 1 prices such as quoted ~~BANCORP,~~prices ~~INC~~for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

~~NOTES~~Level TO3 ~~CONSOLIDATED~~– ~~FINANCIAL~~Significant ~~STATEMENTS~~unobservable ~~(Unaudited)~~inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

~~(dollars~~The inCompany ~~thousands,~~used ~~except~~the ~~per~~following ~~share~~methods ~~data)~~and significant assumptions to estimate the fair value of each type of financial asset:

~~NOTE~~Investment 6Securities: –The ~~FAIR~~fair ~~VALUE~~values -for ~~continued~~investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2).

				Fair Value Measurements at
				December 31, 2011
				Quoted Prices in		Significant			Significant
				Active Markets for		Other			Unobservable
	Carrying			Identical Assets		Observable Inputs			Inputs
	Value			(Level 1)		(Level 2)			(Level 3)
Financial Assets
Investment securities available for sale
U.S. federal agency obligations	$	12,601		$	—	$	12,601		$	—
State and municipal		43,106			—		43,106			—
Mortgage-backed securities – residential		31,789			—		31,789			—
Government agency sponsored collateralized mortgage obligations		44,478			—		44,478			—
Total investment securities available-for-sale	$	131,974		$	—	$	131,974		$	—
Loans held for sale	$	3,049		$	—	$	3,049		$	—
Derivatives – residential mortgage loan commitments	$	57		$	—	$	57		$	—
Financial Liabilities
Derivatives – interest rate swaps	$	(2,283	)	$	—	$	(2,283	)	$	—

Loans Held for Sale and Loan Commitment Derivatives: The fair value of loans held for sale and residential mortgage loan commitments are determined by obtaining quoted prices for similar loans and commitments with similar interest rates and maturities from major secondary markets (Level 2).

~~There~~Derivatives-Interest ~~were~~Rate noSwaps: ~~transfers~~The ~~between~~fair ~~Level~~value 1of ~~and~~derivatives ~~Level~~are 2based ~~during~~on valuation models using observable market data as of the ~~periods~~measurement ~~indicated~~date ~~above~~(Level 2).

~~Loans~~24 held for sale were carried at the fair value of $3,532, which was made up of the outstanding balance of $3,485, net of a valuation of $47 at March 31, 2012, resulting in income of $4 for the three months ended March 31, 2012. At March 31, 2011, loans held for sale were carried at the fair value of $601, which was made up of the outstanding balance of $591, net a valuation of $10, resulting in income of $(36) for the three months ended March 31, 2011.

TheTable differenceof between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale was: Contents

	March 31, 2012
	Aggregate				Contractual
	Fair Value		Difference		Principal
Loans held for sale	$	3,532	$	47	$	3,485

PART I – FINANCIAL INFORMATION

	December 31, 2011
	Aggregate				Contractual
	Fair Value		Difference		Principal
Loans held for sale	$	3,049	$	43	$	3,006

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS - continued

27LAPORTE BANCORP, INC.

~~PART~~NOTES ITO –CONSOLIDATED FINANCIAL ~~INFORMATION~~STATEMENTS (Unaudited)

~~ITEM 1. CONSOLIDATED~~(dollars ~~FINANCIAL~~in ~~STATEMENTS~~thousands, -except ~~continued~~per share data)

~~LAPORTE BANCORP,~~NOTE ~~INC.~~6 – FAIR VALUE - continued

~~NOTES~~Impaired TOLoans: ~~CONSOLIDATED~~At ~~FINANCIAL~~the ~~STATEMENTS~~time ~~(Unaudited)~~a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals performed by qualified independent third-party appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including cost, comparable sales and the income approach. The cost approach is based on the cost to replace the existing property. The comparable sales approach evaluates the sales prices of comparable properties within the same market area. The income approach considers net operating income generated by the property and the rate of return required by an investor. Adjustments are routinely made in the appraisal process by the independent third-party appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

~~(dollars~~Other inReal ~~thousands~~Estate Owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, ~~except~~establishing ~~per~~a ~~share~~new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals performed by qualified independent third-party appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including cost, comparable sales and the income approach. The cost approach is based on the cost to replace the existing property. The comparable sales approach evaluates the sales prices of comparable properties within the same market area. The income approach considers net operating income generated by the property and the rate of return required by an investor. Adjustments are routinely made in the appraisal process by the independent third-party appraisers to adjust for differences between the comparable sales and income data) available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

~~NOTE~~The 6President/Chief Financial Officer (“President/CFO”) and Executive Vice President – ~~FAIR~~Credit ~~VALUE~~(“EVP -– ~~continued~~Credit”) are responsible for determining the valuation processes and procedures for the fair value measurement of impaired loans and other real estate owned properties. The President/CFO and EVP – Credit review impaired loans and other real estate owned properties on a quarterly basis to determine the accuracy of third party appraisals, auction values, values derived from trade publications and any additional data received from the borrower, and the appropriateness of unobservable inputs, generally discounts due to collection issues and current market conditions which are utilized in determining the fair value. The EVP – Credit determines discounts based on the valuation source and asset type for impaired loans. These discounts are reviewed periodically, annually at a minimum, for appropriateness. Current trends in market values and gains and losses on sales of similar assets are also considered when determining discounts of asset categories.

~~For~~25 items for which the fair value option has been elected, interest income is recorded within the consolidated statements of income and comprehensive income based on the contractual amount of interest income earned on financial assets (none were delinquent or in nonaccrual status).

TheTable following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2012 and 2011: Contents

	Changes in Fair Values for the three months ended March 31, 2012 and 2011,for the Items Measured at Fair Value Pursuant to Election of the Fair Value Option
								Total Changes
								in Fair Values
	Other							Included in
	Gains and			Interest		Interest		Current Period
	Losses			Income		Expense		Earnings
Three Months Ended March 31, 2012
Assets:
Loans held for sale	$	4		$	12	$	—	$	16
Three Months Ended March 31, 2011
Assets:
Loans held for sale	$	(36	)	$	10	$	—	$	(26	)

PART I – FINANCIAL INFORMATION

~~Assets~~ITEM ~~measured~~1. atCONSOLIDATED ~~fair~~FINANCIAL ~~value~~STATEMENTS ~~on a non~~-~~recurring~~ ~~basis~~continued ~~are summarized below:~~

			Fair Value Measurements at
			March 31, 2012
			Quoted Prices in		Significant		Significant
			Active Markets for		Other		Unobservable
	Carrying		Identical Assets		Observable Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans Commercial:
Real estate	$	424	$	—	$	—	$	424
Land		424		—		—		424
Mortgage		499		—		—		499
Home equity		4		—		—		4
Other real estate owned, net Commercial:
Real estate		178		—		—		178
Land		412		—		—		412
Mortgage servicing rights		275		—		275		—

LAPORTE BANCORP, INC.

28NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~PART~~(dollars Iin –thousands, ~~FINANCIAL~~except ~~INFORMATION~~per share data)

~~ITEM 1. CONSOLIDATED~~NOTE ~~FINANCIAL~~6 ~~STATEMENTS~~– FAIR VALUE - continued

~~LAPORTE~~The table below presents the valuation methodology and unobservable inputs for impaired loans and other ~~BANCORP~~real estate owned at June 30, ~~INC~~2012.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


	Valuation Methodology	Unobservable Inputs	Range of Inputs	Average of Inputs
Impaired loans
Commercial:
Real estate	Appraisals	Discounts for collection issues and changes in market conditions	0-35%	16.9%
Land	Appraisals	Discounts for collection issues and changes in market conditions	15%-35%	28.3%
Mortgage	Appraisals	Discounts for collection issues and changes in market conditions	0%-20%	8.8%
Home equity	Appraisals	Discounts for collection issues and changes in market conditions	10%	10%
Other real estate owned, net
Commercial:
Real estate	Appraisals	Discounts for changes in market conditions	16%-100%	57.9%
Land	Appraisals	Discounts for changes in market conditions	6%-14%	10.3%
Mortgage	Appraisals	Discounts for changes in market conditions	8%-39%	23.6%

~~(dollars~~Mortgage inServicing ~~thousands~~Rights: On a quarterly basis, ~~except~~loan ~~per~~servicing ~~share~~rights are evaluated for impairment based on the fair value of the rights as compared to the carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level, based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (Level 2). Fair value at June 30, 2012 was determined using a discount rate of 9%, prepayment speeds ranging from 13.2% to 25.6%, depending on the stratification of the specific right, and a weighted average default rate of approximately 0.5%. Fair value at December 31, 2011 was determined using a discount rate of 9.0%, prepayment speeds ranging from 14.3% to 23.8%, depending on the stratification of the specific right, and a weighted average default rate of approximately 0.5%.

~~NOTE~~26 ~~6 – FAIR VALUE - continued~~

AssetsTable measuredof at fair value on a non-recurring basis are summarized below: Contents

			Fair Value Measurements at
			December 31, 2011
			Quoted Prices in		Significant		Significant
			Active Markets for		Other		Unobservable
	Carrying		Identical Assets		Observable Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans Commercial:
Commercial and other	$	22	$	—	$	—	$	22
Real Estate		473		—		—		473
Land		475		—		—		475
Mortgage		557		—		—		557
Home equity		3		—		—		3
Other real estate owned, net Commercial:
Real Estate		365		—		—		365
Mortgage		93		—		—		93
Mortgage servicing rights		271		—		271		—

PART I – FINANCIAL INFORMATION

~~Impaired~~ITEM ~~loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a carrying amount of $~~1~~,655, with a valuation allowance of $304 at March 31, 2012, resulting in an additional provision for loan losses of $71 for the three months ended March 31, 2012~~. AtCONSOLIDATED ~~March 31,~~FINANCIAL ~~2011,~~STATEMENTS ~~impaired~~- ~~loans~~continued ~~had a carrying amount of $2,658, with a valuation allowance of $554, resulting in an additional provision for loan losses of $93 for the three months ended March 31, 2011.~~

~~Other~~LAPORTE ~~real estate owned~~BANCORP, which is measured at the lower of cost or fair value less costs to sell, had a net carrying amount of $590, which was made up of the outstanding balance of $727 net a valuation allowance of $137 at March 31, 2012, resulting in a write-down of $137 for the three months ended March 31, 2012INC. ~~At March 31, 2011, other real estate owned had a net carrying amount of $10, which was made up of the outstanding~~ ~~balance of $12 net a valuation allowance of $2, resulting in a write-down of $2 for the three months ended March 31, 2011.~~

~~Mortgage servicing~~NOTES ~~rights,~~TO ~~which~~CONSOLIDATED ~~are~~FINANCIAL ~~carried~~STATEMENTS ~~at lower of cost or fair value, were carried at their fair value of $275, which was made up of the outstanding balance of $389, net of a valuation allowance of $114, resulting in a charge of $~~(5Unaudited) for the three months ended March 31, 2012. At March 31, 2011, mortgage servicing rights were carried at their fair value of $263, which was made up of the outstanding balance of $355, net of a valuation allowance of $92, resulting in a charge of $0 for the three months ended March 31, 2011.

29(dollars in thousands, except per share data)

~~PART~~NOTE I6 – ~~FINANCIAL~~FAIR ~~INFORMATION~~VALUE - continued

~~ITEM 1. CONSOLIDATED~~Assets ~~FINANCIAL~~and ~~STATEMENTS~~liabilities -measured ~~continued~~at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below:

LAPORTE BANCORP, INC.


				Fair Value Measurements at June 30, 2012
	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Financial Assets
Investment securities available for sale
U.S. federal agency obligations	$	8,510		$	—	$	8,510		$	—
State and municipal		43,485			—		43,485			—
Mortgage-backed securities-residential		15,779			—		15,779			—
Government agency sponsored collateralized mortgage obligations		51,803			—		51,803			—
Corporate debt securities		3,938			—		3,938			—

Total investment securities Available-for-sale	$	123,515		$	—	$	123,515		$	—

Loans held for sale	$	1,692		$	—	$	1,692		$	—

Derivatives – residential mortgage loan commitments	$	112		$	—	$	112		$	—

Financial Liabilities
Derivatives – interest rate swaps	$	(2,205	)	$	—	$	(2,205	)	$	—

~~NOTES~~27 ~~TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)~~

(dollarsTable inof thousands, except per share data) Contents

~~NOTE~~PART 6I – ~~FAIR~~FINANCIAL ~~VALUE~~INFORMATION ~~- continued~~

~~The~~ITEM ~~carrying~~1. ~~amounts~~CONSOLIDATED ~~and~~FINANCIAL ~~estimated~~STATEMENTS ~~fair~~- ~~values~~continued ~~of financial instruments, at March 31, 2012 are as follows:~~

				Fair Value Measurements at
				March 31, 2012
				Quoted Prices in		Significant			Significant
				Active Markets for		Other			Unobservable
	Carrying			Identical Assets		Observable Inputs			Inputs
	Value			(Level 1)		(Level 2)			(Level 3)
Financial assets
Cash and due from financial institutions	$	5,668		$	5,668	$	—		$	—
Interest-earning time deposits at other financial institutions		2,450			2,450		—			—
Securities available for sale		125,185			—		125,185			—
Federal Home Loan Bank stock		3,817			N/A		N/A			N/A
Loans held for sale		3,532			—		3,532			—
Loans, net		294,576			—		—			299,995
Accrued interest receivable		1,395			4		803			588
Financial liabilities
Deposits		(341,871	)		—		(339,019	)		—
Federal Home Loan Bank advances		(60,007	)		—		(62,253	)		—
Subordinated debentures		(5,155	)		—		—			(4,905	)
Accrued interest payable		(354	)		—		(354	)		—
Derivatives – interest rate swaps		(2,190	)		—		(2,190	)		—

LAPORTE BANCORP, INC.

30NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~PART~~(dollars Iin –thousands, ~~FINANCIAL~~except ~~INFORMATION~~per share data)

~~ITEM 1. CONSOLIDATED~~NOTE ~~FINANCIAL~~6 ~~STATEMENTS~~– FAIR VALUE - continued

LAPORTE BANCORP, INC.


			Fair Value Measurements at December 31, 2011
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Investment securities available for sale
U.S. federal agency obligations	$	12,601	$	—	$	12,601	$	—
State and municipal		43,106		—		43,106		—
Mortgage-backed securities – residential		31,789		—		31,789		—
Government agency sponsored collateralized mortgage obligations		44,478		—		44,478		—

Total investment securities available-for-sale	$	131,974	$	—	$	131,974	$	—

Loans held for sale	$	3,049	$	—	$	3,049	$	—

Derivatives – residential mortgage loan commitments	$	57	$	—	$	57

Filing Compare · LaPorte Bancorp, Inc.