**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-QSB**

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

|   | For                the quarterly period ended March 31,                2007 |
|--------|-----------------------------------------------------------------------------|

| o | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE                ACT |
|---|-----------------------------------------------------------------------------------------------|

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

| United                States                                                  |   | 81-0531318                                          |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (I.R.S.                Employer Identification No.) |

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

| Common                stock, par value $0.01 per share | 1,085,357                shares outstanding |
|--------------------------------------------------------|---------------------------------------------|
|  As                of May 4, 2007                 |

----

|                        |   |                                                                                                                                                                                                                       |   | PAGE                     |
|-----------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|
| PART                I.      |   | FINANCIAL                INFORMATION                                                                                                                                                                                       |   |                     |
|                        |   |                                                                                                                                                                                                                       |   |                     |
| Item                1.      |   | Financial                Statements                                                                                                                                                                                        |   |                     |
|                        |   |                                                                                                                                                                                                                       |   |                     |
|                        |   | Consolidated                Statements of Financial Condition as of March 31, 2007 (unaudited)                and                June 30, 2006                                                                             |   | 1                and 2   |
|                        |   |                                                                                                                                                                                                                       |   |                     |
|                        |   | Consolidated                Statements of Income for the three months ended March 31, 2007 and                2006                (unaudited) and the nine months ended March 31, 2007 and 2006                (unaudited) |   | 3                and 4   |
|                        |   |                                                                                                                                                                                                                       |   |                     |
|                        |   | Consolidated                Statements of Changes in Stockholders' Equity for the nine months                ended                March 31, 2007                                                                           |   | 5                        |
|                        |   |                                                                                                                                                                                                                       |   |                     |
|                        |   | Consolidated                Statements of Cash Flows for the nine months ended March 31, 2007                and 2006                (unaudited)                                                                           |   | 6                and 7   |
|                        |   |                                                                                                                                                                                                                       |   |                     |
|                        |   | Notes                to Consolidated Financial Statements                                                                                                                                                                  |   | 8                to 11   |
|                        |   |                                                                                                                                                                                                                       |   |                     |
| Item                2.      |   | Management's                Discussion and Analysis or Plan of Operation                                                                                                                                                   |   | 12                to 17  |
|                        |   |                                                                                                                                                                                                                       |   |                     |
| Item                3.      |   | Controls                and Procedures                                                                                                                                                                                     |   | 18                       |
|                        |   |                                                                                                                                                                                                                       |   |                     |
| PART                II.     |   | OTHER                INFORMATION                                                                                                                                                                                           |   |                     |
|                        |   |                                                                                                                                                                                                                       |   |                     |
|                        |   |                                                                                                                                                                                                                       |   |                     |
| Item                1.      |   | Legal                Proceedings                                                                                                                                                                                           |   | 19                       |
| Item                2.      |   | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                                                                                                 |   | 19                       |
| Item                3.      |   | Defaults                Upon Senior Securities                                                                                                                                                                             |   | 19                       |
| Item                4.      |   | Submission                of Matters to a Vote of Security-Holders                                                                                                                                                         |   | 19                       |
| Item                5.      |   | Other                Information                                                                                                                                                                                           |   | 19                       |
| Item                6.      |   | Exhibits                                                                                                                                                                                                                   |   | 20                       |
|                        |   |                                                                                                                                                                                                                       |   |                     |
| Signatures                  |   |                                                                                                                                                                                                                       |   | 21                       |
|                        |   |                                                                                                                                                                                                                       |   |                     |
| Exhibit                31.1 |   |                                                                                                                                                                                                                       |   | 22                and 23 |
|                        |   |                                                                                                                                                                                                                       |   |                     |
| Exhibit                31.2 |   |                                                                                                                                                                                                                       |   | 24                and 25 |
|                        |   |                                                                                                                                                                                                                       |   |                     |
| Exhibit                32.1 |   |                                                                                                                                                                                                                       |   | 26                       |

----

|                                                                                                                                                                      |   | March                31,2007 |    | June                30,2006 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|-----------------------------|--------|
|                                                                                                                                                                      |   | (Unaudited)                  |    | (Audited)                   |   |
| ASSETS                                                                                                                                                                    |   |                         |    |                        |   |
| Cash                and due from banks                                                                                                                                    |   | $                            | 3,808   |                        | $      | 2,844 |   |
| Interest-bearing                deposits with banks                                                                                                                       |   |                         | 188     |                        |   | 27 |   |
| Total                cash and cash equivalents                                                                                                                            |   |                         | 3,996   |                        |   | 2,871 |   |
|                                                                                                                                                                      |   |                         |    |                        |   |  |   |
| Investment                securities available-for-sale, at market value                                                                                                  |   |                         | 67,317  |                        |   | 64,198 |   |
| Investment                securities held-to-maturity, at cost                                                                                                            |   |                         | 951     |                        |   | 1,018 |   |
| Investment                in Eagle Bancorp Statutory Trust I                                                                                                              |   |                         | 155     |                        |   | 155 |   |
| Federal                Home Loan Bank stock, at cost                                                                                                                      |   |                         | 1,315   |                        |   | 1,315 |   |
| Mortgage                loans held-for-sale                                                                                                                               |   |                         | 1,766   |                        |   | 918 |   |
| Loans                receivable, net of deferred loan feesand                allowance for loan losses of $523 at March                31, 2007 and $535 at June 30, 2006 |   |                         | 151,256 |                        |   | 140,858 |   |
| Accrued                interest and dividends receivable                                                                                                                  |   |                         | 1,303   |                        |   | 1,211 |   |
| Mortgage                servicing rights, net                                                                                                                             |   |                         | 1,659   |                        |   | 1,722 |   |
| Property                and equipment, net                                                                                                                                |   |                         | 5,844   |                        |   | 5,962 |   |
| Cash                surrender value of life insurance                                                                                                                     |   |                         | 5,713   |                        |   | 5,230 |   |
| Real                estate acquired in settlement of loans,net                of allowance for losses                                                                     |   |                         | — |                        |   | — |   |
| Other                assets                                                                                                                                               |   |                         | 371     |                        |   | 720 |   |
|                                                                                                                                                                      |   |                         |    |                        |   |   |   |
| Total                assets                                                                                                                                               |   | $                            | 241,646 |                        | $      | 226,178 |   |

----

|                                                                                                                                                                                                                                                  |   | March                31,2007 |    | June                30,2006 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|-----------------------------|--------|
|                                                                                                                                                                                                                                                  |   | (Unaudited)                  |    | (Audited)                   |   |
| LIABILITIES                AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                   |   |                         |    |                        |   |
| Liabilities:                                                                                                                                                                                                                                          |   |                         |    |                        |   |
| Deposit                accounts:                                                                                                                                                                                                                      |   |                         |    |                        |   |
| Noninterest                bearing                                                                                                                                                                                                                    |   | $                            | 13,552  |                        | $      | 12,575 |   |
| Interest                bearing                                                                                                                                                                                                                       |   |                         | 167,806 |                        |   | 161,767 |   |
| Advances                from Federal Home Loan Bank and other borrowings                                                                                                                                                                              |   |                         | 28,696  |                        |   | 22,371 |   |
| Long-term                subordinated debentures                                                                                                                                                                                                      |   |                         | 5,155   |                        |   | 5,155 |   |
| Accrued                expenses and other liabilities                                                                                                                                                                                                 |   |                         | 2,058   |                        |   | 1,765 |   |
| Total                liabilities                                                                                                                                                                                                                      |   |                         | 217,267 |                        |   | 203,633 |   |
| Stockholders'                Equity:                                                                                                                                                                                                                  |   |                         |    |                        |   |  |   |
| Preferred                stock (no par value, 1,000,000 sharesauthorized,                none issued or outstanding)                                                                                                                                  |   |                         | — |                        |   | — |   |
| Common                stock (par value $0.01 per share;9,000,000                shares authorized; 1,223,572 sharesissued;                1,085,357 and 1,091,722 shares outstanding atMarch                31, 2007 and June 30, 2006, respectively) |   |                         | 12      |                        |   | 12 |   |
| Additional                paid-in capital                                                                                                                                                                                                             |   |                         | 4,358   |                        |   | 4,274 |   |
| Unallocated                common stock held by employeestock                ownership plan ("ESOP")                                                                                                                                                  |   |                         | (101    | )                           |   | (129 | ) |
| Treasury                stock, at cost                                                                                                                                                                                                                |   |                         | (4,726  | )                           |   | (4,521 | ) |
| Retained                earnings                                                                                                                                                                                                                      |   |                         | 25,102  |                        |   | 24,056 |   |
| Accumulated                other comprehensive loss                                                                                                                                                                                                   |   |                         | (266    | )                           |   | (1,147 | ) |
| Total                stockholders' equity                                                                                                                                                                                                             |   |                         | 24,379  |                        |   | 22,545 |   |
|                                                                                                                                                                                                                                                  |   |                         |    |                        |   |  |   |
| Total                liabilities and stockholders' equity                                                                                                                                                                                             |   | $                            | 241,646 |                        | $      | 226,178 |   |

----

|                                                             |   | Three                Months EndedMarch                31, |    | Nine                Months EndedMarch                31, |   |
|------------------------------------------------------------------|--------|-----------------------------------------------------------|---------|----------------------------------------------------------|--------|
|                                                             |   | 2007                                                      |    | 2006                                                     |   | 2007 |   | 2006 |   |
|                                                             |   | (Unaudited)                                               |    | (Unaudited)                                              |   |
| Interest                and Dividend Income:                     |   |                                                      |    |                                                     |   |   |   |   |   |
| Interest                and fees on loans                        |   | $                                                         | 2,509   |                                                     | $      | 1,978 |   | $ | 7,198 |   | $ | 5,665 |   |
| Interest                on deposits with banks                   |   |                                                      | 11      |                                                     |   | 5 |   |   | 39 |   |   | 52 |   |
| FHLB                stock dividends                              |   |                                                      | 3       |                                                     |   | — |   |   | 4 |   |   | — |   |
| Securities                available-for-sale                     |   |                                                      | 726     |                                                     |   | 665 |   |   | 2,082 |   |   | 1,928 |   |
| Securities                held-to-maturity                       |   |                                                      | 11      |                                                     |   | 13 |   |   | 33 |   |   | 40 |   |
| Total                interest and dividend income                |   |                                                      | 3,260   |                                                     |   | 2,661 |   |   | 9,356 |   |   | 7,685 |   |
|                                                             |   |                                                      |    |                                                     |   |   |   |   |   |   |   |   |   |
| Interest                Expense:                                 |   |                                                      |    |                                                     |   |   |   |   |   |   |   |   |   |
| Deposits                                                         |   |                                                      | 1,072   |                                                     |   | 770 |   |   | 3,048 |   |   | 2,153 |   |
| Advances                and other borrowings                     |   |                                                      | 385     |                                                     |   | 136 |   |   | 1,071 |   |   | 340 |   |
| Subordinated                debentures                           |   |                                                      | 75      |                                                     |   | 75 |   |   | 225 |   |   | 152 |   |
| Total                interest expense                            |   |                                                      | 1,532   |                                                     |   | 981 |   |   | 4,344 |   |   | 2,645 |   |
|                                                             |   |                                                      |    |                                                     |   |   |   |   |   |   |   |   |   |
| Net                interest income                               |   |                                                      | 1,728   |                                                     |   | 1,680 |   |   | 5,012 |   |   | 5,040 |   |
| Loan                loss provision                               |   |                                                      | — |                                                     |   | — |   |   | — |   |   | — |   |
| Net                interest income after loan loss provision     |   |                                                      | 1,728   |                                                     |   | 1,680 |   |   | 5,012 |   |   | 5,040 |   |
|                                                             |   |                                                      |    |                                                     |   |   |   |   |   |   |   |   |   |
| Noninterest                Income:                               |   |                                                      |    |                                                     |   |   |   |   |   |   |   |   |   |
| Net                gain on sale of loans                         |   |                                                      | 153     |                                                     |   | 70 |   |   | 462 |   |   | 371 |   |
| Demand                deposit service charges                    |   |                                                      | 114     |                                                     |   | 124 |   |   | 377 |   |   | 403 |   |
| Mortgage                loan servicing fees                      |   |                                                      | 134     |                                                     |   | 138 |   |   | 405 |   |   | 459 |   |
| Net                gain on sale of available-for-sale securities |   |                                                      | (5      | )                                                        |   | (10 | ) |   | (4 | ) |   | (9 | ) |
| Other                                                            |   |                                                      | 148     |                                                     |   | 152 |   |   | 433 |   |   | 410 |   |
| Total                noninterest income                          |   |                                                      | 544     |                                                     |   | 474 |   |   | 1,673 |   |   | 1,634 |   |

----

|                                                             |   | Three                Months EndedMarch                31, |      | Nine                Months EndedMarch                31, |   |
|------------------------------------------------------------------|--------|-----------------------------------------------------------|-----------|----------------------------------------------------------|--------|
|                                                             |   | 2007                                                      |      | 2006                                                     |   | 2007 |   | 2006 |   |
|                                                             |   | (Unaudited)                                               |      | (Unaudited)                                              |   |
| Noninterest                Expense:                              |   |                                                      |      |                                                     |   |   |   |   |   |
| Salaries                and employee benefits                    |   |                                                      | 943       |                                                     |   | 918 |   |   | 2,695 |   |   | 2,656 |   |
| Occupancy                expenses                                |   |                                                      | 135       |                                                     |   | 140 |   |   | 410 |   |   | 398 |   |
| Furniture                and equipment depreciation              |   |                                                      | 69        |                                                     |   | 78 |   |   | 216 |   |   | 235 |   |
| In-house                computer expense                         |   |                                                      | 70        |                                                     |   | 66 |   |   | 211 |   |   | 201 |   |
| Advertising                expense                               |   |                                                      | 43        |                                                     |   | 40 |   |   | 196 |   |   | 156 |   |
| Amortization                of mtg servicing fees                |   |                                                      | 66        |                                                     |   | 67 |   |   | 215 |   |   | 265 |   |
| Federal                insurance premiums                        |   |                                                      | 5         |                                                     |   | 6 |   |   | 16 |   |   | 18 |   |
| Postage                                                          |   |                                                      | 25        |                                                     |   | 27 |   |   | 64 |   |   | 69 |   |
| Legal,                accounting, and examination fees           |   |                                                      | 54        |                                                     |   | 39 |   |   | 178 |   |   | 134 |   |
| Consulting                fees                                   |   |                                                      | 20        |                                                     |   | 14 |   |   | 56 |   |   | 44 |   |
| ATM                processing                                    |   |                                                      | 13        |                                                     |   | 12 |   |   | 35 |   |   | 36 |   |
| Other                                                            |   |                                                      | 217       |                                                     |   | 227 |   |   | 645 |   |   | 651 |   |
| Total                noninterest expense                         |   |                                                      | 1,660     |                                                     |   | 1,634 |   |   | 4,937 |   |   | 4,863 |   |
|                                                             |   |                                                      |      |                                                     |   |   |   |   |   |   |   |   |   |
| Income                before provision for income taxes          |   |                                                      | 612       |                                                     |   | 520 |   |   | 1,748 |   |   | 1,811 |   |
|                                                             |   |                                                      |      |                                                     |   |   |   |   |   |   |   |   |   |
| Provision                for income taxes                        |   |                                                      | 159       |                                                     |   | 117 |   |   | 412 |   |   | 464 |   |
|                                                             |   |                                                      |           |                                                     |   |   |   |   |  |   |   |  |   |
| Net                income                                        |   | $                                                         | 453       |                                                     | $      | 403 |   | $ | 1,336 |   | $ | 1,347 |   |
|                                                             |   |                                                      |      |                                                     |   |   |   |   |   |   |   |   |   |
| Basic                earnings per share                          |   | $                                                         | 0.42      |                                                     | $      | 0.37 |   | $ | 1.25 |   | $ | 1.25 |   |
|                                                             |   |                                                      |      |                                                     |   |   |   |   |   |   |   |   |   |
| Diluted                earnings per share                        |   | $                                                         | 0.37      |                                                     | $      | 0.33 |   | $ | 1.11 |   | $ | 1.12 |   |
|                                                             |   |                                                      |      |                                                     |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding (basic eps)   |   |                                                      | 1,072,347 |                                                     |   | 1,077,376 |   |   | 1,072.849 |   |   | 1,078,540 |   |
|                                                             |   |                                                      |      |                                                     |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding (diluted eps) |   |                                                      | 1,210,162 |                                                     |   | 1,205,562 |   |   | 1,209,011 |   |   | 1,204,411 |   |

----

|                                                                                                                                                                     |   | PREFERREDSTOCK |    | COMMONSTOCK |   | ADDITIONALPAID-INCAPITAL |   | UNALLOCATEDESOPSHARES |    | TREASURYSTOCK |   | RETAINEDEARNINGS |   | ACCUMULATEDOTHERCOMPREHENSIVEINCOME |    | TOTAL  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|-------------|--------|--------------------------|--------|-----------------------|---------|---------------|--------|------------------|--------|-------------------------------------|---------|--------|--------|
| Balance,                  June 30, 2006                                                                                                                                  |   | $              | — |        | $      | 12                       |   | $                     | 4,274   |          | $      | (129             | )      | $                                   | (4,521  | )      | $      | 24,056 |   | $ | (1,147 | ) | $ | 22,545 |   |
|                                                                                                                                                                     |   |           |    |        |   |                     |   |                  |    |          |   |             |   |                                |    |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                                                                              |   |           | — |        |   | —                  |   |                  | — |          |   | —          |   |                                | — |   |   | 1,336 |   |   | — |   |   | 1,336 |   |
| Other                  comprehensive income                                                                                                                              |   |           | — |        |   | —                  |   |                  | — |          |   | —          |   |                                | — |   |   | — |   |   | 881 |   |   | 881 |   |
|                                                                                                                                                                     |   |           |    |        |   |                     |   |                  |    |          |   |             |   |                                |    |   |   |   |   |   |   |   |   |   |   |
| Total                  comprehensive income                                                                                                                              |   |           |    |        |   |                     |   |                  |    |          |   |             |   |                                |    |   |   |   |   |   |   |   |   | 2,217 |   |
|                                                                                                                                                                     |   |           |    |        |   |                     |   |                  |    |          |   |             |   |                                |    |   |   |   |   |   |   |   |   |   |   |
| Dividends                  paid ($.66 per share)                                                                                                                         |   |           | — |        |   | —                  |   |                  | — |          |   | —          |   |                                | — |   |   | (290 | ) |   | — |   |   | (290 | ) |
|                                                                                                                                                                     |   |           |    |        |   |                     |   |                  |    |          |   |             |   |                                |    |   |   |   |   |   |   |   |   |   |   |
| Treasury                  stock purchased (3,100 shares @ $31.90; 1,065 shares @ $32.00;                  1,000                  shares @ $32.60; 1,200 shares @ $33.00) |   |           | — |        |   | —                  |   |                  | — |          |   | —          |   |                                | (205    | )      |   | — |   |   | — |   |   | (205 | ) |
|                                                                                                                                                                     |   |           |    |        |   |                     |   |                  |    |          |   |             |   |                                |    |   |   |   |   |   |   |   |   |   |   |
| ESOP                  shares allocated or committed to be released for allocation (3,450                  shares)                                                        |   |           | — |        |   | —                  |   |                  | 84      |          |   | 28               |   |                                | — |   |   | — |   |   | — |   |   | 112 |   |
|                                                                                                                                                                     |   |           |    |        |   |                     |   |                  |    |          |   |             |   |                                |    |   |   |   |   |   |   |   |   |   |   |
| Balance,                  March 31, 2007                                                                                                                                 |   | $              | — |        | $      | 12                       |   | $                     | 4,358   |          | $      | (101             | )      | $                                   | (4,726  | )      | $      | 25,102 |   | $ | (266 | ) | $ | 24,379 |   |

----

|                                                                                                                                  |   | Nine                  Months Ended March                  31,   |    |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|---------|
|                                                                                                                                  |   | 2007                                                                 |    | 2006   |   |
|                                                                                                                                  |   |  (Unaudited)                                                    |    |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                                                                |   |                                                       |    |       |   |
| Net                  income                                                                                                           |   | $                                                                              | 1,336   |   | $ | 1,347 |   |
| Adjustments                  to reconcile net income to net cashfrom                  operating activities:                           |   |                                                                           |         |   |   |  |   |
| Provision                  for mortgage servicing rights valuation losses                                                             |   |                                                                           | — |   |   | (46 | ) |
| Depreciation                                                                                                                          |   |                                                                           | 365     |   |   | 384 |   |
| Net                  amortization of marketable securities premiumAnd                  discounts                                      |   |                                                                           | 423     |   |   | 739 |   |
| Amortization                  of capitalized mortgage servicing rights                                                                |   |                                                                           | 215     |   |   | 265 |   |
| Gain                  on sale of loans                                                                                                |   |                                                                           | (462    | ) |   | (371 | ) |
| Net                  realized loss on sale of available-for-sale securities                                                           |   |                                                                           | 4       |   |   | 9 |   |
| Restricted                  stock award                                                                                               |   |                                                                           | — |   |   | 53 |   |
| Increase                  in cash surrender value of life insurance                                                                   |   |                                                                           | (140    | ) |   | (136 | ) |
| Loss                  on sale of real estate owned                                                                                    |   |                                                                           | — |   |   | 6 |   |
| Change                  in assets and liabilities:                                                                                    |   |                                                                           |         |   |   |  |   |
| (Increase)                  decrease in assets:                                                                                       |   |                                                                           |         |   |   |  |   |
| Accrued                  interest and dividends receivable                                                                            |   |                                                                           | (89     | ) |   | (79 | ) |
| Loans                  held-for-sale                                                                                                  |   |                                                                           | (373    | ) |   | 2,098 |   |
| Other                  assets                                                                                                         |   |                                                                           | 365     |   |   | (129 | ) |
| Increase                  (decrease) in liabilities:                                                                                  |   |                                                                           |         |   |   |  |   |
| Accrued                  expenses and other liabilities                                                                               |   |                                                                           | (116    | ) |   | 359 |   |
| Net                  cash provided by operating activities                                                                            |   |                                                                           | 1,528   |   |   | 4,499 |   |
|                                                                                                                                  |   |                                                                           |         |   |   |  |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                                                                                |   |                                                                           |         |   |   |  |   |
| Purchase                  of securities:                                                                                              |   |                                                                           |         |   |   |  |   |
| Investment                  securities held-to-maturity                                                                               |   |                                                                           | — |   |   | — |   |
| Investment                  securities available-for-sale                                                                             |   |                                                                           | (19,273 | ) |   | (6,207 | ) |
| Proceeds                  from maturities, calls and principal payments:                                                              |   |                                                                           |         |   |   |  |   |
| Investment                  securities held-to-maturity                                                                               |   |                                                                           | 82      |   |   | 129 |   |
| Investment                  securities available-for-sale                                                                             |   |                                                                           | 11,991  |   |   | 12,296 |   |
| FHLB                  stock redeemed                                                                                                  |   |                                                                           | — |   |   | — |   |
| Proceeds                  from sales of investment securities available-for-sale                                                      |   |                                                                           | 5,122   |   |   | 1,627 |   |
| Net                  increase in loans receivable, excludes transfers to                  real estate acquired in settlement of loans |   |                                                                           | (10,579 | ) |   | (22,515 | ) |
| Purchase                  of stock in non-consolidated subsidiaries                                                                   |   |                                                                           | — |   |   | (155 | ) |

----

|                                                                                                        |   |  Nine                  Months Ended March                  31,   |    |
|-------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|---------|
|                                                                                                        |   | 2007                                                                       |    | 2006   |   |
|                                                                                                        |   |  (Unaudited)                                                          |    |
| CASH                  FLOWS FROM INVESTING ACTIVITIES (CONTINUED):                                          |   |                                                             |    |       |   |
| Purchase                  of property and equipment                                                         |   |                                                                                 | (247    | ) |   | (152 | ) |
| Purchase                  of bank owned life insurance                                                      |   |                                                                                 | (342    | ) |   | — |   |
| Proceeds                  from the sale of real estate acquired in the settlement of                  loans |   |                                                                                 | — |   |   | 69 |   |
| Net                  cash used in investing activities                                                      |   |                                                                                 | (13,246 | ) |   | (14,908 | ) |
|                                                                                                        |   |                                                                                 |         |   |   |  |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                                                      |   |                                                                                 |         |   |   |  |   |
| Net                  increase (decrease) in checking and savings accounts                                   |   |                                                                                 | 7,015   |   |   | 4,149 |   |
| Net                  (decrease) increase in federal funds                                                   |   |                                                                                 | (4,175  | ) |   | — |   |
| Payments                  on FHLB advances                                                                  |   |                                                                                 | (20,501 | ) |   | (3,876 | ) |
| FHLB                  advances                                                                              |   |                                                                                 | 31,000  |   |   | 5,000 |   |
| Issue                  of subordinated debentures                                                           |   |                                                                                 | — |   |   | 5,155 |   |
| Sale                  (purchase) of treasury stock                                                          |   |                                                                                 | (206    | ) |   | (505 | ) |
| Dividends                  paid                                                                             |   |                                                                                 | (290    | ) |   | (270 | ) |
| Net                  cash provided by financing activities                                                  |   |                                                                                 | 12,843  |   |   | 9,653 |   |
|                                                                                                        |   |                                                                                 |         |   |   |  |   |
| Net                  increase (decrease) in cash and cash equivalents                                       |   |                                                                                 | 1,125   |   |   | (756 | ) |
|                                                                                                        |   |                                                                                 |         |   |   |  |   |
| CASH                  AND CASH EQUIVALENTS, beginning of period                                             |   |                                                                                 | 2,871   |   |   | 4,966 |   |
|                                                                                                        |   |                                                                                 |         |   |   |  |   |
| CASH                  AND CASH EQUIVALENTS, end of period                                                   |   | $                                                                                    | 3,996   |   | $ | 4,210 |   |
|                                                                                                        |   |                                                                                 |         |   |   |  |   |
|                                                                                                        |   |                                                                                 |         |   |   |  |   |
| SUPPLEMENTAL                  CASH FLOW INFORMATION:                                                        |   |                                                                                 |         |   |   |  |   |
| Cash                  paid during the period for interest                                                   |   | $                                                                                    | 4,445   |   | $ | 2,785 |   |
|                                                                                                        |   |                                                                                 |         |   |   |  |   |
| Cash                  paid during the period for income taxes                                               |   | $                                                                                    | 531     |   | $ | 574 |   |
|                                                                                                        |   |                                                                                 |         |   |   |  |   |
| NON-CASH                  INVESTING ACTIVITIES:                                                             |   |                                                                                 |         |   |   |  |   |
| (Increase)                  decrease in market value of securities available-for-sale                       |   | $                                                                                    | (1,401  | ) | $ | 690 |   |
|                                                                                                        |   |                                                                                 |         |   |   |  |   |
| Mortgage                  servicing rights capitalized                                                      |   | $                                                                                    | 152     |   | $ | 137 |   |

----

**NOTE      1: BASIS OF PRESENTATION**

**NOTE      2: INVESTMENT SECURITIES**

|                                     |   |   March                  31, 2007 (Unaudited)   |   |   June                  30, 2006 (Audited)    |   |
|----------------------------------------------------|--------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
|                                     |   |   AMORTIZED COST                           |   |   GROSS UNREALIZED GAINS/(LOSSES)   |   |   FAIR VALUE |   |   AMORTIZEDCOST   |   |   GROSS UNREALIZED GAINS/(LOSSES)   |   |   FAIR VALUE |   |
| **Available-for-sale:**                  |   |                                            |   |                                          |   |       |   |       |   |       |   |       |   |
| U.S.                  government and     |   |                                            |   |                                          |   |       |   |       |   |       |   |       |   |
| agency                  obligations      |   | $                                                                   | 3,925  |                                                              | $      | (45 | ) | $ | 3,880 |   | $ | 7,448 |   | $ | (152 | ) | $ | 7,296 |   |
| Municipal                  obligations   |   |                                                                | 19,881 |                                                              |   | 76 |   |   | 19,957 |   |   | 17,471 |   |   | (328 | ) |   | 17,143 |   |
| Corporate                  obligations   |   |                                                                | 14,863 |                                                              |   | (150 | ) |   | 14,713 |   |   | 16,059 |   |   | (442 | ) |   | 15,617 |   |
| Mortgage-backed                          |   |                                                                |        |                                                              |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| securities                               |   |                                                                | 8,757  |                                                              |   | (97 | ) |   | 8,660 |   |   | 6,949 |   |   | (202 | ) |   | 6,747 |   |
| Collateralized                           |   |                                                                |        |                                                              |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| mortgage                  obligations    |   |                                                                | 18,348 |                                                              |   | (149 | ) |   | 18,199 |   |   | 16,330 |   |   | (513 | ) |   | 15,817 |   |
| Corporate                  preferred     |   |                                                                |        |                                                              |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| stock                                    |   |                                                                | 2,000  |                                                              |   | (92 | ) |   | 1,908 |   |   | 1,800 |   |   | (222 | ) |   | 1,578 |   |
| Total                                    |   | $                                                                   | 67,774 |                                                              | $      | (457 | ) | $ | 67,317 |   | $ | 70,053 |   | $ | (1,859 | ) | $ | 64,198 |   |
| **Held-to-maturity:**                    |   |                                                                |        |                                                              |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Municipal                  obligations   |   | $                                                                   | 827    |                                                              | $      | 15 |   | $ | 842 |   | $ | 828 |   | $ | 12 |   | $ | 840 |   |
| Mortgage-backed                          |   |                                                                |        |                                                              |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| securities                               |   |                                                                | 124    |                                                              |   | 1 |   |   | 125 |   |   | 190 |   |   | — |   |   | 190 |   |
| Total                                    |   | $                                                                   | 951    |                                                              | $      | 16 |   | $ | 967 |   | $ | 1,018 |   | $ | 12 |   | $ | 1,030 |   |

----

**NOTE      3: **
**LOANS      RECEIVABLE**

|                                                         |   |                      March 31, 2007 |    |                    June 30, 2006 |   |
|--------------------------------------------------------------|--------|-----------------------------------------------|---------|---------------------------------------|--------|
|                                                         |   |                      (Unaudited)    |    |                    (Audited)     |   |
| *(Dollars                  in Thousands)*                    |   |                           |    |                        |   |
| First                  mortgage loans:                       |   |                                          |         |                                  |   |  |   |
| Residential                  mortgage (1-4 family)           |   | $                                             | 80,046  |                                  | $      | 75,913 |   |
| Commercial                  real estate                      |   |                                          | 24,292  |                                  |   | 18,648 |   |
| Real                  estate construction                    |   |                                          | 6,151   |                                  |   | 6,901 |   |
|                                                         |   |                                          |         |                                  |   |  |   |
| Other                  loans:                                |   |                                          |         |                                  |   |  |   |
| Home                  equity                                 |   |                                          | 24,067  |                                  |   | 20,191 |   |
| Consumer                                                     |   |                                          | 11,059  |                                  |   | 11,820 |   |
| Commercial                                                   |   |                                          | 6,124   |                                  |   | 7,861 |   |
|                                                         |   |                                          |         |                                  |   |  |   |
| Total                                                        |   |                                          | 151,739 |                                  |   | 141,334 |   |
|                                                         |   |                                          |         |                                  |   |  |   |
| Less:                    Allowance for loan losses |   |                                          | (523    | )                                     |   | (535 | ) |
|     Deferred                  loan fees  |   |                                          | 40      |                                  |   | 59 |   |
|                                                         |   |                                          |         |                                  |   |  |   |
| Total                                                        |   | $                                             | 151,256 |                                  | $      | 140,858 |   |

|                                                                              |   |                    Nine Months Ended March 31, 2007 |    | Twelve                  Months  Ended June 30, 2006 |   |
|-----------------------------------------------------------------------------------|--------|---------------------------------------------------------------|---------|----------------------------------------------------------|--------|
|                                                                              |   |                    (Unaudited)                           |    | (Audited)                                                |   |
| *(Dollars                  in Thousands)*                                         |   |                                                |    |                                                |   |
| Balance,                  beginning of period                                     |   | $                                                             | 535     |                                                     | $      | 573 |   |
| Reclassification                  to repossessedproperty                  reserve |   |                                                          | — |                                                     |   | (15 | ) |
| Provision                  charged to operations                                  |   |                                                          | — |                                                     |   | — |   |
| Charge-offs                                                                       |   |                                                          | (22     | )                                                        |   | (48 | ) |
| Recoveries                                                                        |   |                                                          | 10      |                                                     |   | 25 |   |
| Balance,                  end of period                                           |   | $                                                             | 523     |                                                     | $      | 535 |   |

----

**NOTE      4:**
**DEPOSITS**

|                                          |   |                      March 31, 2007      |    |                    June 30,  2006   |   |
|-----------------------------------------------|--------|---------------------------------------------------------|---------|----------------------------------------------------|--------|
|                                          |   |                      (Unaudited)    |    |                    (Audited)             |   |
| *(Dollars                  in Thousands)*     |   |                                                    |         |                                               |   |  |   |
| Noninterest                  checking         |   | $                                                       | 13,552  |                                               | $      | 12,575 |   |
| Interest-bearing                  checking    |   |                                                    | 32,227  |                                               |   | 29,571 |   |
| Passbook                                      |   |                                                    | 23,545  |                                               |   | 24,438 |   |
| Money                  market                 |   |                                                    | 24,294  |                                               |   | 29,129 |   |
| Time                  certificates of deposit |   |                                                    | 87,740  |                                               |   | 78,629 |   |
| Total                                         |   | $                                                       | 181,358 |                                               | $      | 174,342 |   |

**NOTE      5: EARNINGS PER SHARE**

**NOTE      6: DIVIDENDS AND STOCK REPURCHASE PROGRAM**

----

**NOTE      7: **
**MORTGAGE      SERVICING RIGHTS**

|                                           |   |                      Nine Months Ended March                  31, 2007 |    |                    Twelve MonthsEnded                  June                  30, 2006   |   |
|------------------------------------------------|--------|----------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------|--------|
|                                           |   |                      (Unaudited)                                  |    |                    (Audited)                                                            |   |
| *(Dollars                  in Thousands)*      |   |                                                              |    |                                                                                    |   |
| Mortgage                  Servicing Rights     |   |                                                              |    |                                                                                    |   |
| Beginning                  balance             |   | $                                                                                | 1,722   |                                                                                              | $      | 1,903 |   |
| Servicing                  rights capitalized  |   |                                                                             | 152     |                                                                                              |   | 174 |   |
| Servicing                  rights amortized    |   |                                                                             | (215    | )                                                                                                 |   | (355 | ) |
| Ending                  balance                |   |                                                                             | 1,659   |                                                                                              |   | 1,722 |   |
|                                           |   |                                                                             |         |                                                                                              |   |  |   |
| Valuation                  Allowance           |   |                                                                             |         |                                                                                              |   |  |   |
| Beginning                  balance             |   |                                                                             | — |                                                                                              |   | 46 |   |
| Provision                                      |   |                                                                             | — |                                                                                              |   | (46 | ) |
| Adjustments                                    |   |                                                                             | — |                                                                                              |   | — |   |
| Ending                  balance                |   |                                                                             | — |                                                                                              |   | — |   |
|                                           |   |                                                                             |         |                                                                                              |   |  |   |
| Net                  Mortgage Servicing Rights |   | $                                                                                | 1,659   |                                                                                              | $      | 1,722 |   |

----

**ITEM      2: MANAGEMENT’S DISCUSSIONS AND ANALYSIS OR PLAN OF      OPERATION**

**Note      Regarding Forward-Looking Statements**

**Overview**

**Financial      Condition**

----

**Results      of Operations for the Three Months Ended March 31, 2007 and      2006**

*Net      Income.*

*Net      Interest Income.*

*Interest      and Dividend Income.*

----

**Results      of Operations for the Three Months Ended March 31, 2007 and 2006 -**
***continued***

*Interest      Expense.*

*Provision      for Loan Losses.*

*Noninterest      Income. *

*Noninterest      Expense.*

*Income      Tax Expense.*

**Results      of Operations for the Nine Months Ended March 31, 2007 and      2006**

*Net      Income.*

*Net      Interest Income.*

----

**Results      of Operations for the Nine Months Ended March 31, 2007 and 2006 -**
***continued***

*Interest      and Dividend Income.*

*Interest      Expense.*

*Provision      for Loan Losses.*

*Noninterest      Income.*

*Noninterest      Expense.*

*Income      Tax Expense.*

----

**Liquidity,      Interest Rate Sensitivity and Capital Resources**

|                               |   | (Unaudited)At                March 31, 2007 |   |
|------------------------------------|--------|---------------------------------------------|--------|
|                               |   | DollarAmount                                |   | For                CapitalAdequacyPurposes%                of Assets |   |
| Tangible                capital:   |   |                                        |   |   |   |
| Capital                level       |   | $                                           | 25,330 |   |   | 10.65 | % |
| Requirement                        |   |                                        | 3,567  |   |   | 1.50 |   |
| Excess                             |   | $                                           | 21,763 |   |   | 9.15 | % |
| Core                capital:       |   |                                        |   |   |   |   |   |
| Capital                level       |   | $                                           | 25,330 |   |   | 10.65 | % |
| Requirement                        |   |                                        | 7,134  |   |   | 3.00 |   |
| Excess                             |   | $                                           | 18,196 |   |   | 7.65 | % |
| Risk-based                capital: |   |                                        |   |   |   |   |   |
| Capital                level       |   | $                                           | 25,816 |   |   | 14.89 | % |
| Requirement                        |   |                                        | 13,868 |   |   | 8.00 |   |
| Excess                             |   | $                                           | 11,948 |   |   | 6.89 | % |

----

**Impact      of Inflation and Changing Prices**

**Application      of Critical Accounting Policies**

----

**ITEM      3: CONTROLS AND PROCEDURES**

----

**Part      II - OTHER INFORMATION**

|       c)  | Small                Business Issuer Purchases of Equity Securities. The                following table summarizes the Company’s purchases of its common stock for                the three months ended March 31,                2007. |
|----------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                        |   | (a)                                           |   | (b)                                                      |   | (c)                                                                                                                                                     |   | (d)                                                                                                                       |   |
|-------------------------------------------------------------|--------|-----------------------------------------------|--------|----------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|
| Period                                                      |   | TotalNumber                ofSharesPurchased* |   | AveragePrice                PaidPer                Share |   | Total                Number ofShares                Purchased asPart                of PubliclyAnnounced                Plansor                Programs |   | Maximum                Numberof                Shares that MayYet                Be Purchased Under the Plans or Programs |   |
| January                20071-1-07                to1-31-07  |   |                                          | 1,200  |                                                     | $      | 33.00                                                                                                                                                   |   |                                                                                                                      | 1,200  |   |   | 5,535 |   |
|                                                        |   |                                          |   |                                                     |   |                                                                                                                                                    |   |                                                                                                                      |   |   |   |   |   |
| February                20072-1-07                to2-28-07 |   |                                          | None   |                                                     |   | N/A                                                                                                                                                     |   |                                                                                                                      | N/A    |   |   | N/A |   |
|                                                        |   |                                          |   |                                                     |   |                                                                                                                                                    |   |                                                                                                                      |   |   |   |   |   |
| March                20073-1-07                to3-31-7     |   |                                          | None   |                                                     |   | N/A                                                                                                                                                     |   |                                                                                                                      | N/A    |   |   | N/A |   |
|                                                        |   |                                          |   |                                                     |   |                                                                                                                                                    |   |                                                                                                                      |   |   |   |   |   |
| Total                                                       |   |                                          | 1,200  |                                                     | $      | 33.00                                                                                                                                                   |   |                                                                                                                      | 1,200  |   |   | N/A |   |

Item      5.   Other Information.

----

**Part      II - OTHER INFORMATION - **
***continued***

----

|                                   |                                |                                    |
|----------------------------------------|-------------------------------------|-----------------------------------------|
|                                   | **EAGLE                BANCORP**    |
|                              |                           |                               |
| Date: May                10, 2007 | By:                       | /s/ Larry                A. Dreyer |
|                                   | Larry                A. Dreyer      |
|                                   | Title:                President/CEO |

|                                   |                                               |                                     |
|----------------------------------------|----------------------------------------------------|------------------------------------------|
|                                   |                                               |                                     |
| Date: May                10, 2007 | By:                                      | /s/ Peter                J. Johnson |
|                                   | Peter                J. Johnson                    |
|                                   | Title:                Executive Vice President/CFO |

----