UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

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

For the quarterly period ended ~~Mar~~ Jun. 3130, 2010

o TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT

For the transition period from to

Commission file Number 00-16934

BOL BANCSHARES, INC.

(Exact name of registrant as specified in its charter.)

Louisiana	72-1121561
(State of incorporation)	(I.R.S. Employer Identification No.)

300 St. Charles Avenue, New Orleans, La. 70130 (Address of principal executive offices)

(Address of principal executive offices)

(504) 889-9400

(Registrant’s telephone number)

Indicate by check mark whether the registrant (1) 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 o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer o		Accelerated filer o
Non-accelerated filer o		Smaller reporting company x

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

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date: 179,145 SHARES AS OF ~~May~~July 1931, 2010.

BOL BANCSHARES, INC. & SUBSIDIARY

INDEX

			Page No.
PART I. Financial Information
	Item 1.	Financial Statements
		Consolidated Statements of Condition	3
		Consolidated Statements of Income	4
		Consolidated Statements of Comprehensive Income	5
		Consolidated Statements of Cash Flow	6
		Notes to Consolidated Financial Statements	7
	Item 2.	Management's Discussion and Analysis	11
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk, Catastrophic Events and Future Growth	1314
	Item 4T.	Controls and Procedures	13
	Item 4.	Submission of Matters to a Vote of Security Holders	15
	Item 4T.	Controls and Procedures	15
PART II. Other Information
	Item 6.	Exhibits	1415
~~Signatures~~	Signatures		1516

Index

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

BOL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CONDITION

	Mar. 31		Dec. 31,
	June 30,		Dec. 31,
(Amounts in Thousands)	2010		2009
	(Unaudited)		(Audited)
ASSETS
Cash and Due from Banks
Non-Interest Bearing Balances and Cash	$	32,~~136~~865	$	3,041
Federal Funds Sold		1311,~~950~~000		14,550
Certificates of Deposit		4,~~442~~694		5,194
Investment Securities
Securities Held to Maturity		13,000		1,000
Securities Available for Sale		~~871~~814		814
Loans-Less Allowance for Loan Losses of $1,800 in 2010 and in 2009		57,957		58,302
Loans-Less Allowance for Loan Losses of $1,800 in 2009 and in 2008		59,953		58,302
Property, Equipment and Leasehold Improvements
(Net of Depreciation and Amortization)		6,~~055~~010		6,141
Other Real Estate		23,~~686~~045		2,012
Other Assets		~~1,282~~869		1,598
TOTAL ASSETS	$	9192,~~379~~250	$	92,652
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits:
Non-Interest Bearing		3132,~~533~~088		32,107
NOW Accounts		11,~~770~~766		11,816
Money Market Accounts		3,~~632~~893		3,772
Savings Accounts		20,~~574~~354		20,780
Time Deposits, $100,000 and over		3,~~256~~439		3,810
Other Time Deposits		67,~~907~~153		6,802
TOTAL DEPOSITS		7778,~~672~~693		79,087
Notes Payable		1,144		1,144
Other Liabilities		~~832~~671		968
TOTAL LIABILITIES		7980,~~648~~509		81,199
SHAREHOLDERS' EQUITY
Preferred Stock - Par Value $1 1,816,824 Shares Issued and Outstanding in 2010 1,837,089 Shares Issued and Outstanding in 2009		1,817		1,837
Preferred Stock - Par Value $1 1,810,296 Shares Issued and Outstanding at June 30, 2010 1,837,089 Shares Issued and Outstanding at December 31, 2009		1,810		1,837
Common Stock - Par Value $1 179,145 Shares Issued and Outstanding in 2010 and 2009		179		179
Accumulated Other Comprehensive Income		~~508~~471		471
Capital in Excess of Par - Retired Stock		195		190
Undivided Profits		8,777		8,640
Current Earnings		~~255~~310		136
TOTAL SHAREHOLDERS' EQUITY		11,~~731~~742		11,453
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	9192,~~379~~250	$	92,652

The accompanying notes are an integral part of these financial statements.

Index

BOL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three months ended						Six months ended
	Mar. 31
	June 30,						June 30,
(Amounts in Thousands)	2010			2009			2010		2009
INTEREST INCOME
Interest and Fees on Loans	$	1,~~487~~554		$	1,~~526~~536		$	3,041	$	3,062
Interest on Investment Securities		26			1413			9		27
Interest on Federal Funds Sold		45			106			8		16
Interest on Certificates of Deposit		1714			816			31		24
Total Interest Income		1,~~510~~579			1,~~558~~571			3,089		3,129
INTEREST EXPENSE
Interest on Deposits		9088			9389			179		182
Interest Expense on Notes Payable and Debentures		19			28			37		56
Total Interest Expense		~~109~~107			~~121~~117			216		238
NET INTEREST INCOME		1,~~401~~472			1,~~437~~454			2,873		2,891
Provision for Loan Losses		75109			95245			184		340
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		1,326			1,342
NET INTEREST INCOME AFTER PROVISION
NON-INTEREST INCOME
FOR LOAN LOSSES		1,363			1,209			2,689		2,551
Service Charges on Deposit Accounts		112			94
NON-INTEREST INCOME
Cardholder & Other Credit Card Income		101			102
Service Charges on Deposit Accounts		114			96			226		190
Other Operating Income		314			236
Cardholder & Other Credit Card Income		106			108			207		210
Total Non-interest Income		527			432
Other Operating Income		210			319			525		555
NON-INTEREST EXPENSE
Total Non-interest Income		430			523			958		955
Salaries and Employee Benefits		624			693
NON-INTEREST EXPENSE
Occupancy Expense		268			269
Salaries and Employee Benefits		653			690			1,277		1,383
Communications		47			53
Occupancy Expense		267			260			535		529
Outsourcing Fees		319			359
Communications		60			60			107		113
Loan & Credit Card Expense		26			27
Outsourcing Fees		390			371			709		730
Professional Fees		54			53
Loan & Credit Card Expense		31			38			57		65
ORE Expense		110			13
Professional Fees		66			58			120		111
Other Operating Expense		13			186
ORE Expense		123			22			234		35
Total Non-interest Expense		1,461			1,653
Other Operating Expense		233			201			246		387
Income Before Tax Provision		392			121
Total Non-interest Expense		1,823			1,700			3,285		3,353
Provision For Income Taxes		137			2
(Loss)Income Before Tax Provision		(30	)		32			362		153
NET INCOME	$	255		$	119
(Benefit) Provision For Income Taxes		(85	)		(6	)		51		(4	)
Earnings Per Share of Common Stock	$	1.42		$	0.67
NET INCOME	$	55		$	38		$	310	$	157
Earnings Per Share of Common Stock	$	0.31		$	0.21		$	1.73	$	0.87

The accompanying notes are an integral part of these financial statements.

Index

BOL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

BOL BANCSHARES, INC. & SUBSIDIARY
	June 30,		June 30,
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
	Three Months Ended
	Mar. 31		Mar. 31
(Amounts in thousands)	2010		2009
NET INCOME	$	~~255~~310	$	~~119~~157
OTHER COMPREHENSIVE INCOME, NET OF TAX
Unrealized Holding (Losses) Gains on Investment
Unrealized Holding Losses on Investment
Securities Available-for-Sale, Arising
During the Period		37-		(6	)
COMPREHENSIVE INCOME	$	~~292~~310	$	~~113~~151

The accompanying notes are an integral part of these financial statements.

Index

BOL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

~~Three~~Six Months Ended ~~March~~June 3130,

(Amounts in thousands)	2010			2009
OPERATING ACTIVITIES
Net Income	$	~~255~~310		$	~~119~~157
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Provision for Loan Losses		75184			95340
Depreciation and Amortization Expense		97194			~~101~~201
Amortization of Investment Security Premiums		-			-1
Decrease in Deferred Income Taxes		~~(258~~-	)		~~(21~~3	)
Gain on Sale of Other Real Estate		(~~200~~395	)		-
Decrease in Other Assets		~~172~~730			~~148~~92
Decrease in Other Liabilities and Accrued Interest		~~247~~(296	)		(~~352~~431	)
Net Cash Provided by Operating Activities		~~388~~727			90363
INVESTING ACTIVITIES
Proceeds from Held-to-Maturity Investment Securities
Released at Maturity		1,000			-
Purchases of Held-to-Maturity Investment Securities		(13,000	)		-
Purchases of Property and Equipment		(1163	)		-(4	)
Proceeds from Sale of Other Real Estate		200			-
Capitalized Construction Costs for ORE		(432	)		-
OREO Costs Capitalized		(180	)		-
Increase in Certificate of Deposit with Other Banks		499			(4,900	)
Decrease (Increase) in Certificate of Deposit with Other Banks		752			(3,875	)
Proceeds From Sale of Other Real Estate		395			-
Net (Increase) in Loans		(224	)		(1,299	)
Net (Increase) Decrease in Loans		(2,435	)		(3,444	)
Net Cash Provided by (Used in) Investing Activities		537			(5,174	)
Net Cash (Used in) Provided by Investing Activities		(4,036	)		(8,348	)
FINANCING ACTIVITIES
Net Decrease in Non-Interest Bearing and Interest Bearing Deposits		(~~1,415~~395	)		(24,~~619~~599	)
Preferred Stock Retired		(1522	)		(36121	)
Net Cash Used in Financing Activities		(~~1,430~~417	)		(24,~~655~~720	)
Net (Decrease)Increase in Cash and Cash Equivalents		(505	)		(7,739	)
Net (Decrease) in Cash and Cash Equivalents		(3,726	)		(12,705	)
Cash and Cash Equivalents - Beginning of Year		17,591			28,479
Cash and Cash Equivalents - End of Period	$	1713,~~086~~865		$	2015,~~740~~774

The accompanying notes are an integral part of these financial statements.

Index

BOL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(Unaudited)

SUPPLEMENTAL DISCLOSURES:	2010			2009
Cash Paid During the Year for Interest	$	28257		$	~~192~~278
Cash Paid During the Year for Income Taxes	$	0		$	0
Cash (Received) Paid During the Year for Income Taxes	$	(225	)	$	0
Market Value Adjustment for Unrealized (Loss) Gain on Securities Available-for-Sale	$	57		$	(9	)
Market Value Adjustment for Unrealized Loss on Securities Available-for-Sale	$	0		$	(9	)
Additions to Other Real Estate Through Foreclosure	$	494		$	61

The accompanying notes are an integral part of these financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note A Summary of Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Bank of Louisiana (the Bank), and the Bank’s wholly owned subsidiary, BOL Assets, LLC. These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X, and do not include information or footnotes for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included.

Use of Estimates

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses.

Cash and Cash Equivalents

Cash equivalents include amounts due from banks and federal funds sold. Generally, federal funds are purchased and sold for one-day periods.

Disclosure about Fair Value of Financial Instruments

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the value:

Cash and Short-Term Investments

For cash, the carrying amount approximates fair value. For short-term investments, fair values are calculated based upon general investment market interest rates for similar maturity investments.

Index

Investment Securities

For securities and marketable equity securities held-for-investment purposes, fair values are based on quoted market prices.

Loan Receivables

For certain homogeneous categories of loans, such as residential mortgages, credit card receivables and other consumer loans, fair value is estimated using the current U.S. treasury interest rate curve, a factor for cost of processing and a factor for historical credit risk to determine the discount rate.

Deposit Liabilities

The fair value of demand deposits, savings deposits and certain money market deposits are calculated based upon general investment market interest rates for investments with similar maturities. The value of fixed maturity certificates of deposit is estimated using the U.S. treasury interest rate curve currently offered for deposits of similar remaining maturities.

Commitments to Extend Credit

The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present credit-worthiness of the counterparties.

The estimated fair values of the Company’s financial instruments at ~~March~~June 3130, 2010 and December 31, 2009, are as follows (amounts in thousands):

	March 31, 2010
	June 30, 2010
	Carrying			Fair
	Amount			Value
Financial Assets:
Cash and Short-Term Investments	$	32,~~136~~865		$	32,~~136~~865
Certificates of Deposit		4,~~442~~694			4,~~442~~694
Investment Securities		13,~~871~~814			13,~~871~~814
Loans		5961,~~757~~753			6061,~~287~~753
Less: Allowance for Loan Losses		(1,800	)		(1,800	)
	$	6771,~~406~~326		$	6771,~~936~~326
Financial Liabilities:
Deposits	$	7778,~~672~~692		$	78,~~225~~744
Unrecognized Financial Instruments:
Commitments to Extend Credit	$	32,~~135~~746		$	32,~~135~~746
Credit Card Arrangements		16,~~588~~097			16,~~588~~097
	$	1918,~~723~~843		$	1918,~~723~~843

Index

	December 31, 2009
	Carrying			Fair
	Amount			Value
Financial Assets:
Cash and Short-Term Investments	$	3,041		$	3,041
Certificates of Deposit		5,194			5,194
Investment Securities		1,814			1,814
Loans		60,102			60,297
Less: Allowance for Loan Losses		(1,800	)		(1,800	)
	$	68,351		$	68,546
Financial Liabilities:
Deposits	$	79,087		$	79,851
Unrecognized Financial Instruments:
Commitments to Extend Credit	$	2,627		$	2,627
Credit Card Arrangements		16,758			16,758
	$	19,385		$	19,385

Financial Instruments

On January 1, 2008, the Company adopted the FASB fair value guidance pertaining ~~for~~to all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). This guidance defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

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

Index

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

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

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

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

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at ~~March~~June 3130, 2010 and December 31, 2009 (amounts in thousands):

June 30, 2010

Level 1

Level 2

Level 3

Net Balance

Assets

Equity Securities

~~871~~814

Total

~~871~~814

December 31, 2009
	Level 1		Level 2		Level 3		Net Balance

Assets
Equity Securities	$	-	$	814	$	-	$	814

Total	$	-	$	814	$	-	$	814

Index

Subsequent Events

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements. The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of ~~March~~June 3130, 2010. In preparing these financial statements, the Company evaluated the events and transactions that occurred from ~~March~~June 3130, 2010 through the date these financial statements were issued.

ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS

~~MARCH~~JUNE 3130, 2010 COMPARED WITH DECEMBER 31, 2009

BALANCE SHEET

Total assets at ~~March~~June 3130, 2010 were $9192,~~379~~250,000 compared to $92,652,000 at December 31, 2009, for a decrease of $1402,~~273,~~000, or 10.3743%. Federal Funds Sold decreased $~~600~~3,550,000 from $14,550,000 at December 31, 2009 to $1311,~~950~~000,000 at ~~March~~June 3130, 2010. Certificates of Deposit decreased $~~752~~500,000 from $5,194,000 at December 31, 2009 to $4,~~442~~694,000 at ~~March~~June 3130, 2010. Both Federal Funds Sold and Certificates of Deposit decreases ~~was~~were due to normal fluctuations. Investment securities show aan ~~slight~~ increase of $572,000,000 to $13,~~871~~814,000 at ~~March~~June 3130, 2010 from $1,814,000 at December 31, 2009 due to moving funds into securities to a higher yield. Total loans ~~decreased~~increased $~~345~~1,651,000, or 02.5983%, to $5759,~~957~~953,000 at ~~March~~June 3130, 2010 from $58,302,000 at December 31, 2009. This ~~decrease~~increase in the loan portfolio is due mainly to aan ~~decrease~~increase in ~~construction~~1-4 residential loans of $~~586~~1,693,000, aan ~~decrease~~increase in ~~second~~commercial ~~mortgage~~real estate loans of $90578,000, aan ~~decrease~~increase in ~~other~~personal ~~real~~loans ~~estate~~of $198,000, and an increase in customer overdrafts of $101,000. These increases were offset by a decrease in construction loans of $22185,000, a decrease in ~~personal~~second mortgage loans of $~~117~~56,000, a decrease in ~~overdrafts~~other real estate loans of $9948,000, ~~and~~ a decrease in commercial loans of $~~524~~4,000, inand ~~the~~a decrease in credit card ~~portfolio~~loans of $627,000. The credit card portfolio decrease was largely attributable to (i) competition from other banks and non-traditional credit card issuers; (ii) tightening of the Bank’s underwriting standards; and (iii) normal attrition, in addition to the cyclical nature of the business. ~~These decreases were partially offset by an increase in 1-4 residential loans of $735,000, an increase in commercial real estate loans of $43,000, and increase in commercial loans of $315,000.~~

Total deposits decreased $1394,~~415,~~000, or 10.7950%, to $7778,~~672~~693,000 at ~~March~~June 3130, 2010 from $79,087,000 at December 31, 2009. Total non-interest bearing deposits decreased $~~574~~19,000 and interest-bearing accounts decreased $~~841~~375,000. The decrease of interest earning deposits was mainly attributable to a decrease in NOW accounts of $4750,000, aan ~~decrease~~increase in money market accounts of $~~140~~121,000, a decrease in savings accounts of $~~206~~426,000 and a decrease of $~~448~~20,000 in time deposits.

Other liabilities decreased $~~136~~297,000 from $968,000 at December 31, 2009 to $~~832~~671,000 at ~~March~~June 3130, 2010. This decrease is due mainly to a decrease in accrued expenses of $9953,000, a decrease of ~~deferred~~$68,000 ~~membership~~in ~~fees~~other ~~of $6~~liabilities,~~000,~~ a decrease in deferred taxes of $~~176~~149,000 and a decrease in accrued interest of $1341,000. These decreases were partially offset by an increase in ~~other~~deferred ~~miscellaneous~~membership ~~liability~~fees ~~accounts~~ of $~~160~~14,000.

Shareholder’s Equity increased $~~278~~289,000 from $11,453,000 at December 31, 2009 to $11,~~731~~742,000 at ~~March~~June 3130, 2010. This increase is due mainly to net income for the ~~three~~six months ended ~~March~~June 3130, 2010 of $~~255~~310,000, ~~an increase in accumulated other comprehensive income of $37,000,~~ and an increase in capital in excess of par-retired Preferred Stock of $5,000. These increases were partially offset by a decrease in Preferred Stock of $2027,000.

Index

~~THREE~~SIX MONTHS ENDED ~~MARCH~~JUNE 3130, 2010 COMPARED WITH ~~THREE~~SIX MONTHS ENDED ~~MARCH~~JUNE 3130, 2009

INCOME

The Company’s net income for the ~~three~~six months ended ~~March~~June 3130, 2010 was $~~255~~310,000, or $1.4273 per share, an increase of $~~136~~153,000 from the Company’s total net income of $~~119~~157,000, or $0.6787 per share, for the same period last year.

Interest income decreased $4840,000 for the ~~three~~six months ended ~~March~~June 3130, 2010 over the same period last year. Interest on federal funds sold decreased $68,000 primarily due to a decrease in the average interest rate paid from .1917% at ~~March~~June 3130, 2009 to .1112% at ~~March~~June 3130, 2010. The average balance of federal funds sold decreased $74,~~211~~956,000 from $2118,~~189~~393,000 at ~~March~~June 3130, 2009 to $13,~~978~~437,000 at ~~March~~June 3130, 2010. Interest on investment securities decreased $1218,000 due mainly to a decrease in the average balance from $2,~~821~~818,000 at ~~March~~June 3130, 2009 to $12,~~853~~428,000 at ~~March~~June 3130, 2010. Interest in the loan portfolio decreased $3921,000 due mainly to a decrease in the average interest rate of 10.8476% at ~~March~~June 3130, 2009 to 10.2041% at ~~March~~June 3130, 2010. The average balance of Certificates of Deposit purchased was $4,~~929~~805,000 at an average interest rate of 1.3829% for 2010 as compared to an average balance of Certificates of Deposit of $23,~~547~~506,000 with an average interest rate of 1.2637% for 2009.

Interest expense decreased $1222,000 for the ~~three~~six months ended ~~March~~June 3130, 2010 over the same period last year. This was caused primarily by a decrease in the average interest rate paid on interest-bearing deposits from .8483% at ~~March~~June 3130, 2009 to .7877% as of ~~March~~June 3130, 2010. The impact of the decrease in the average interest rate paid on interest-bearing deposits was partially offset by an increase in the average balance of interest bearing deposits from $44,~~192~~004,000 at ~~March~~June 3130, 2009 to $46,~~428~~424,000 at ~~March~~June 3130, 2010. The average interest rate on interest-bearing liabilities decreased from 1.0605% at ~~March~~June 3130, 2009 to .9290% at ~~March~~June 3130, 2010.

Net interest income decreased $3618,000 for the ~~three~~six months ended ~~March~~June 3130, 2010 compared to the same period last year. Our interest rate spread increased from 6.4662% at ~~March~~June 3130, 2009 to 6.7291% at ~~March~~June 3130, 2010. The increase in the rate spread was due to an increase of .1214% on the yield on interest-earning assets from 7.5267% ~~to 7.64%~~ for the ~~three~~six months ended ~~March~~June 3130, 2009 ~~compared~~ to 7.81% for the ~~three~~six months ended ~~March~~June 3130, 2010, and a decrease of .1415% on the average rate paid out on interest bearing liabilities from 1.0605% paid for the ~~three~~six months ended ~~March~~June 3130, 2009 as compared to .9290% paid during the ~~three~~six months ended ~~March~~June 3130, 2010.

Non-interest income increased $953,000 ~~for~~between the ~~three~~six month ~~period~~periods from $~~432~~955,000 at ~~March~~June 3130, 2009 to $~~527~~958,000 at ~~March~~June 3130, 2010. Other income ~~increased~~decreased $7830,000 for the ~~three~~six months ended ~~March~~June 3130, 2010. This ~~increase~~decrease is due mainly to ~~the gain on sale of ORE property of $200,000 in the first three months of 2010. This was partially offset by~~ a decrease in miscellaneous income of $~~150~~459,000 pertaining to insurance proceeds relating to Hurricane Katrina that were not needed for repairs and recognized as miscellaneous income for the ~~three~~six months ended ~~March~~June 3130, 2009. ~~Deposit~~This ~~related~~decrease ~~fees~~was ~~increased~~partially offset by an increase on sale of ORE properties of $18395,000 and ~~cardholder~~increase ~~and~~of ~~other~~$38,000 ~~credit~~in ~~card~~dividend ~~fees~~income ~~decreased~~for $1the six months ended June 30,~~000~~ 2010.

Non-interest expense decreased $~~192~~68,000 for the ~~three~~six month period of 2010 as compared to the same period last year. Salaries and Employee Benefits decreased $69106,000 from $~~693~~1,383,000 at ~~March~~June 3130, 2009 to $~~624~~1,277,000 at ~~March~~June 3130, 2010. This decrease was due mainly to a reduction in the number of employees ~~from~~subsequent ~~81 in March 31, 2009~~ to 74the infirst ~~March~~quarter ~~31, 2010, a decrease~~ of ~~7 employees~~2009. Occupancy expense ~~decreased~~increased by $16,000 and communications decreased by $6,000. Outsourcing fees decreased $4021,000 ~~from~~and ~~$359,000~~loan inand ~~2009~~credit tocard expense decreased $~~319~~8,000 ~~in 2010~~ due mainly to a decrease in credit card sales ~~of $539,000~~. ~~Other~~Professional ~~operating~~fees ~~expenses~~increased ~~decreased~~ $~~173~~9,000 due mainly to aforeclosures ~~reversal~~occurring ofin a2010. ~~2009~~ORE ~~accrual for bank stock taxes and 2009 additional~~ expenses. ~~The~~increased ~~offset~~$199,000 tofor the ~~decrease~~six inmonths ~~non-interest~~ended ~~expense~~June is30, ~~due~~2010 ~~mainly~~compared to anthe ~~increase~~six inmonths ~~FDIC~~ended ~~assessments~~June ~~of $20~~30,~~000~~ ~~between~~2009 ~~the~~due ~~two~~primarily ~~periods~~to ~~and the increase in ORE~~ expenses ofassociated ~~$63,000~~with ~~for~~the repairs ~~to the Esplanade property~~ and ~~$27,000~~remodeling ~~for expenses~~ of anproperties ~~additional~~acquired ~~ORE~~in ~~property~~2010. ~~The~~Other ~~provision~~operating ~~for~~expenses ~~income taxes~~ increased $~~135~~141,000, ~~from~~primarily adue ~~provision of $2,000 at March 31, 2009~~ to a ~~provision~~decrease ofin ~~$137,000~~bank atstock ~~March 31, 2010~~taxes.

Index

SECOND QUARTER 2010 COMPARED WITH SECOND QUARTER 2009

INCOME

Net income for the second quarter of 2010 was $55,000, or $.31 per share, compared to $38,000, or $.21 per share, for the same period last year for a increase of $17,000.

Interest income increased $8,000 over the same period last year. Interest on the loan portfolio increased $18,000 from $1,536,000 at June 30, 2009 to $1,554,000 at June 30, 2010. This was caused mainly by a increase in the average balance from $57,619 at June 30, 2009 to $58,587 at June 30, 2010.

Interest on investment securities decreased $7,000 due mainly to a decrease in the yield on investment securities from 1.85% at June 30, 2009 to 0.80% at June 30, 2010. Interest on certificates of deposit decreased $2,000 due mainly to a decrease in the interest rate of 1.44% in 2009 to 1.20% in 2010 and offset by an increase in the average balance from $4,454,000 to $4,683,000. Interest on federal funds sold decreased $1,000 due mainly to the decrease in the average balance of federal funds sold from $15,627,000 at June 30, 2009 to $12,902,000 at June 30, 2010.

Interest expense decreased $10,000 for the three months ended June 30, 2010 over the same period last year. This was caused by a decrease in the average interest rate paid on interest-bearing deposits from 0.81% at June 30, 2009 to .76% as of June 30, 2010. The impact of the decrease in the average interest rate paid on interest bearing deposits was partially offset by an increase in the average balance of interest-bearing deposits from $43,821,000 at June 30, 2009 to $46,418,000 at June 30, 2010.

Net interest income increased $18,000 due primarily to an increase in interest rate on earning assets of 0.18% and a decrease in interest bearing liabilities of 0.13%.

Non-interest income decreased $93,000 for the three-month period ended June 30, 2010 compared to the prior year period. Cardholder and other credit card income decreased by $2,000 due mainly to NSF charges. Other operating income decreased by $109,000 due mainly to insurance proceeds of $300,000 credited in the first quarter of 2009 to miscellaneous income for Hurricane Katrina repairs that were not needed, offset by an increase in 2010 of an ORE gain on sale of $195,000 and a decrease in other income of $4,000. These decreases were offset by an increase in deposit related fees of $18,000 due mainly to an increase in the fees collected on overdrawn accounts.

Non-interest expense increased $123,000 for the three-month period ended June 30, 2010 compared to the prior year period. Occupancy expense increased $7,000 due primarily to repairs done to the St. Charles office. Outsourcing fees increased $19,000 due mainly to interchange fees caused by high credit card sales. Professional fees increased $8,000 for legal fees on foreclosures which occurred during the three months ended June 30, 2010. ORE expense increased $101,000 primarily due to repairs to the Esplanade property. Other operating expenses increased $32,000 due primarily to a loss on the sale of a repossessed motor home totaling $49,000 offset by a decrease of $15,000 for FDIC assessment. These increases were offset by decreases in salaries and employee benefits of $37,000 primarily due to a reduction in number of employees for the for three months ended June 30, 2010 compared to the number of employees at June 30, 2009, and a decrease in loan and credit card expense of $7,000 for a 2009 expense paid on a sheriffs sale of a motor home.

The provision for income taxes decreased $79,000 compared to the same period last year from a provision of a benefit $6,000 at June 30, 2009 to a benefit of $85,000 at June 30, 2010 due to adjustments made to the income tax payable and income tax receivable account balances.

Index

Item 3 Quantitative and Qualitative Disclosures about Market Risk, Catastrophic Events, and Future Growth

Management considers interest rate risk to be a market risk that could have a significant effect on the financial condition of the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and/or operating results. Difficult conditions in the financial services markets may materially and adversely affect the business and results of operations of the Bank and the Company.

Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and/or operating results. Difficult conditions in the financial services markets may materially and adversely affect the business and results of operations of the Bank and the Company.

Dramatic declines in the housing market during the past year, along with falling home prices and increasing foreclosures and unemployment, have resulted in significant write downs of asset values by financial institutions, including government-sponsored entities and major commercial and investment banks. These write-downs, initially of mortgage-backed securities by spreading to credit default swaps and other derivative securities, have caused many financial institutions to seek additional capital, to merge with larger and stronger institutions, and, in some cases, to fail. Many lenders and institutional investors have reduced, and in some cases, ceased to provide funding to borrowers, including other financial institutions. This market turmoil and tightening of credit have led to an increased level of commercial and consumer delinquencies, lack of consumer confidence, increased market volatility, and widespread reduction of business activity generally, which could have a material adverse effect on our business and operations. A worsening of these conditions would likely exacerbate any adverse effects of these difficult market conditions on us and others in the financial institutions industry. However, the majority of small community banks, such as Bank of Louisiana, have strong reserve positions and are well capitalized.

The occurrence of catastrophic events such as hurricanes, tropical storms, earthquakes, windstorms, floods, severe winter weather, fires and other catastrophes could adversely affect our consolidated financial condition or results of operations. Unpredictable natural and other disasters could have an adverse effect on us in that such events could materially disrupt our operations or the ability or willingness of our customers to access financial services offered by us. The incidence and severity of catastrophic events could nevertheless reduce our earnings and cause volatility in our financial results for any fiscal quarter or year and have a material adverse effect on our financial condition or results of operation.

The Company is a customer-focused organization. Future growth is expected to be driven in a large part by the relationships maintained with customers. The Company has assembled an experienced management team, and has management development plans in place.

Index

Item 4 Submission of Matters to a Vote of Security Holders

The Annual Meeting of Shareholders of BOL BANCSHARES, INC. was held on April 13, 2010. Six nominees were elected to serve one year terms as directors. Laporte, Sehrt, Romig and Hand was approved as the independent auditors. There were no other matters voted upon at the meeting.

Below are the names of the nominees who were elected as directors and the number of shares cast for each. The total shares voting were 122,418.


	Number of Shares
Nominee	For	Against	Abstain
G. Harrison Scott	121,656	632	130
Johnny C. Crow	121,656	632	130
Franck F. LaBiche	121,656	632	130
Henry L. Klein	121,656	632	130
Sharry R. Scott	121,656	632	130
A. Earle Cefalu, Jr.	121,656	632	130

Item 4T Controls and Procedures

Under the supervision and with the participation of our management, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, the certifying officers of the Company have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that the Company files or submits under the Securities and Exchange Act of 1934, is recorded, processed, summarized and reported within the applicable time periods specified by the Securities and Exchange Commission’s rules and forms. There has been no change in the Company’s internal control over financial reporting during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 6 Exhibits

Exhibits

31.1

Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer

31.2

Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer

Certification Pursuant to 18 U.S.C. Section 1350

1415

Index

BOL BANCSHARES, INC.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	BOL BANCSHARES, INC.
May 20, 2010	/s/ G. Harrison Scott
August 16, 2010	/s/ G. Harrison Scott
Date	G. Harrison Scott
	Chairman
	(in his capacity as a duly authorized officer of the Registrant)
	/s/ Peggy L. Schaefer
	Peggy L. Schaefer
	Treasurer
	(in her capacity as Chief Accounting
	(in her capacity as Chief Accounting Officer of the Registrant)
	Officer of the Registrant)

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