**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 |
|---|-----------------------------------------------------------------------------------------------------------------|

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

| 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 | 1,087,557                shares outstanding |
|--------------------------------------------------------|---------------------------------------------|

----

|                          |                                                                                                                                                                    |   | PAGE                      |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|
| PART                  I.      | FINANCIAL                  INFORMATION                                                                                                                                  |   |                      |
|                          |                                                                                                                                                                    |   |                      |
| Item                  1.      | Financial                  Statements                                                                                                                                   |   |                      |
|                          |                                                                                                                                                                    |   |                      |
|                          | Consolidated                  Statements of Financial Condition as of September 30, 2006 (unaudited)                  and                  June 30, 2005                |   | 1                  and 2  |
|                          |                                                                                                                                                                    |   |                      |
|                          | Consolidated                  Statements of Income for the three months ended September 30, 2006                  and                  2005 (unaudited)                 |   | 3                  and 4  |
|                          |                                                                                                                                                                    |   |                      |
|                          | Consolidated                  Statements of Changes in Stockholders' Equity for the three months                  ended                  September 30, 2006 (unaudited) |   | 5                         |
|                          |                                                                                                                                                                    |   |                      |
|                          | Consolidated                  Statements of Cash Flows for the three months ended September 30,                  2006 and                  2005 (unaudited)             |   | 6                  and 7  |
|                          |                                                                                                                                                                    |   |                      |
|                          | Notes                  to Consolidated Financial Statements                                                                                                             |   | 8                  to 12  |
|                          |                                                                                                                                                                    |   |                      |
| Item                  2.      | Management's                  Discussion and Analysis of Financial Condition and Results of                  Operations                                                 |   | 13                  to 20 |
|                          |                                                                                                                                                                    |   |                      |
| Item                  3.      | Controls                  and Procedures                                                                                                                                |   | 21                        |
|                          |                                                                                                                                                                    |   |                      |
| PART                  II.     | OTHER                  INFORMATION                                                                                                                                      |   |                      |
|                          |                                                                                                                                                                    |   |                      |
| Item                  1.      | Legal                  Proceedings                                                                                                                                      |   | 22                        |
| Item                  2.      | Unregistered                  Sales of Equity Securities and Use of Proceeds                                                                                            |   | 22                        |
| Item                  3.      | Defaults                  Upon Senior Securities                                                                                                                        |   | 22                        |
| Item                  4.      | Submission                  of Matters to a Vote of Security-Holders                                                                                                    |   | 23                        |
| Item                  5.      | Other                  Information                                                                                                                                      |   | 23                        |
| Item                  6.      | Exhibits                                                                                                                                                                |   | 23                        |
|                          |                                                                                                                                                                    |   |                      |
| Signatures                    |                                                                                                                                                                    | 24     |
|                          |                                                                                                                                                                    |   |                      |
| Exhibit                  31.1 |                                                                                                                                                                    |   |
|                          |                                                                                                                                                                    |   |                      |
| Exhibit                  31.2 |                                                                                                                                                                    |   |
|                          |                                                                                                                                                                    |   |                      |
| Exhibit                  32.1 |                                                                                                                                                                    |   |

----

|                                                                                                           |   | September                  30, |    | June                  30, |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|---------------------------|--------|
|                                                                                                           |   | 2006                           |    | 2006                      |   |
|                                                                                                           |   | (Unaudited)                    |    | (Audited)                 |   |
| ASSETS                                                                                                         |   |                           |    |                      |   |
| Cash                  and due from banks                                                                       |   | $                              | 3,861   |                      | $      | 2,844 |   |
| Interest-bearing                  deposits with banks                                                          |   |                           | 321     |                      |   | 27 |   |
| Total                  cash and cash equivalents                                                               |   |                           | 4,182   |                      |   | 2,871 |   |
|                                                                                                           |   |                           |         |                      |   |  |   |
| Investment                  securities available-for-sale, at market value                                     |   |                           | 64,613  |                      |   | 64,198 |   |
| Investment                  securities held-to-maturity, at amortized cost                                     |   |                           | 1,005   |                      |   | 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                                                                  |   |                           | 2,428   |                      |   | 918 |   |
| Loans                  receivable, net of deferred loan fees and allowance for loan losses                  of |   |                           |    |                      |   |   |   |
| $530                  at September 30, 2006 and $535 at June 30, 2006                                          |   |                           | 144,776 |                      |   | 140,858 |   |
| Accrued                  interest and dividends receivable                                                     |   |                           | 1,305   |                      |   | 1,211 |   |
| Mortgage                  servicing rights, net                                                                |   |                           | 1,699   |                      |   | 1,722 |   |
| Property                  and equipment, net                                                                   |   |                           | 5,935   |                      |   | 5,962 |   |
| Cash                  surrender value of life insurance                                                        |   |                           | 5,275   |                      |   | 5,230 |   |
| Real                  estate acquired in settlement of loans, net of allowance for                  losses     |   |                           | -       |                      |   | - |   |
| Other                  assets                                                                                  |   |                           | 328     |                      |   | 720 |   |
| Total                  assets                                                                                  |   | $                              | 233,016 |                      | $      | 226,178 |   |

----

|                                                                                                                                                                                                                                                                           |   | September                  30, |    | June                  30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|---------------------------|--------|
|                                                                                                                                                                                                                                                                           |   | 2006                           |    | 2006                      |   |
|                                                                                                                                                                                                                                                                           |   | (Unaudited)                    |    | (Audited)                 |   |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                                          |   |                           |    |                      |   |
| Liabilities:                                                                                                                                                                                                                                                                   |   |                           |    |                      |   |
| Deposit                  accounts:                                                                                                                                                                                                                                             |   |                           |    |                      |   |
| Noninterest                  bearing                                                                                                                                                                                                                                           |   | $                              | 12,771  |                      | $      | 12,575 |   |
| Interest                  bearing                                                                                                                                                                                                                                              |   |                           | 163,392 |                      |   | 161,767 |   |
| Advances                  from Federal Home Loan Bank                                                                                                                                                                                                                          |   |                           | 25,830  |                      |   | 22,371 |   |
| Long-term                  subordinated debentures                                                                                                                                                                                                                             |   |                           | 5,155   |                      |   | 5,155 |   |
| Accrued                  expenses and other liabilities                                                                                                                                                                                                                        |   |                           | 2,424   |                      |   | 1,765 |   |
| Total                  liabilities                                                                                                                                                                                                                                             |   |                           | 209,572 |                      |   | 203,633 |   |
| Stockholders'                  Equity:                                                                                                                                                                                                                                         |   |                           |         |                      |   |  |   |
| Preferred                  stock (no par value, 1,000,000 shares authorized, none issued or                  outstanding)                                                                                                                                                      |   |                           | -       |                      |   | - |   |
| Common                  stock (par value $0.01 per share; 9,000,000 shares authorized;                  1,223,572                  shares issued; 1,087,557 and 1,091,722 outstanding at September                  30, 2006                  and June 30, 2006, respectively) |   |                           | 12      |                      |   | 12 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                    |   |                           | 4,302   |                      |   | 4,274 |   |
| Unallocated                  common stock held by employee stock ownership plan                  ("ESOP")                                                                                                                                                                      |   |                           | (120    | )                         |   | (129 | ) |
| Treasury                  stock, at cost                                                                                                                                                                                                                                       |   |                           | (4,654  | )                         |   | (4,521 | ) |
| Retained                  earnings                                                                                                                                                                                                                                             |   |                           | 24,381  |                      |   | 24,056 |   |
| Accumulated                  other comprehensive loss                                                                                                                                                                                                                          |   |                           | (477    | )                         |   | (1,147 | ) |
| Total                  stockholders' equity                                                                                                                                                                                                                                    |   |                           | 23,444  |                      |   | 22,545 |   |
|                                                                                                                                                                                                                                                                           |   |                           |         |                      |   |  |   |
| Total                  liabilities and stockholders' equity                                                                                                                                                                                                                    |   | $                              | 233,016 |                      | $      | 226,178 |   |

----

|                                                               |   | Three                  Months Ended |   |
|--------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                               |   | September                  30,      |   |
|                                                               |   | 2006                                |   | 2005 |   |
|                                                               |   | (Unaudited)                         |   |
| Interest                  and Dividend Income:                     |   |                                |   |   |   |
| Interest                  and fees on loans                        |   | $                                   | 2,311  |   | $ | 1,790 |   |
| Interest                  on deposits with banks                   |   |                                | 12     |   |   | 11 |   |
| FHLB                  stock dividends                              |   |                                | -      |   |   | - |   |
| Securities                  available-for-sale                     |   |                                | 660    |   |   | 623 |   |
| Securities                  held-to-maturity                       |   |                                | 11     |   |   | 14 |   |
| Total                  interest and dividend income                |   |                                | 2,994  |   |   | 2,438 |   |
|                                                               |   |                                |        |   |   |  |   |
| Interest                  Expense:                                 |   |                                |        |   |   |  |   |
| Deposits                                                           |   |                                | 934    |   |   | 666 |   |
| FHLB                  advances                                     |   |                                | 331    |   |   | 100 |   |
| Subordinated                  debentures                           |   |                                | 75     |   |   | 2 |   |
| Total                  interest expense                            |   |                                | 1,340  |   |   | 768 |   |
|                                                               |   |                                |        |   |   |  |   |
| Net                  interest income                               |   |                                | 1,654  |   |   | 1,670 |   |
| Loan                  loss provision                               |   |                                | -      |   |   | - |   |
| Net                  interest income after loan loss provision     |   |                                | 1,654  |   |   | 1,670 |   |
|                                                               |   |                                |        |   |   |  |   |
| Noninterest                  income:                               |   |                                |        |   |   |  |   |
| Net                  gain on sale of loans                         |   |                                | 119    |   |   | 173 |   |
| Demand                  deposit service charges                    |   |                                | 135    |   |   | 143 |   |
| Mortgage                  loan servicing fees                      |   |                                | 138    |   |   | 191 |   |
| Net                  gain on sale of available-for-sale securities |   |                                | -      |   |   | 1 |   |
| Other                                                              |   |                                | 145    |   |   | 135 |   |
| Total                  noninterest income                          |   |                                | 537    |   |   | 643 |   |

----

|                                                               |   | Three                  Months Ended |      |
|--------------------------------------------------------------------|--------|-------------------------------------|-----------|
|                                                               |   | September                  30,      |      |
|                                                               |   | 2006                                |      | 2005 |   |
|                                                               |   | (Unaudited)                         |      |
| Noninterest                  expense:                              |   |                                |      |   |   |
| Salaries                  and employee benefits                    |   |                                | 838       |   |   | 832 |   |
| Occupancy                  expenses                                |   |                                | 142       |   |   | 125 |   |
| Furniture                  and equipment depreciation              |   |                                | 79        |   |   | 79 |   |
| In-house                  computer expense                         |   |                                | 71        |   |   | 67 |   |
| Advertising                  expense                               |   |                                | 93        |   |   | 70 |   |
| Amortization                  of mtg servicing fees                |   |                                | 76        |   |   | 106 |   |
| Federal                  insurance premiums                        |   |                                | 6         |   |   | 6 |   |
| Postage                                                            |   |                                | 18        |   |   | 23 |   |
| Legal,                  accounting, and examination fees           |   |                                | 58        |   |   | 34 |   |
| Consulting                  fees                                   |   |                                | 16        |   |   | 18 |   |
| ATM                  processing                                    |   |                                | 12        |   |   | 12 |   |
| Other                                                              |   |                                | 207       |   |   | 220 |   |
| Total                  noninterest expense                         |   |                                | 1,616     |   |   | 1,592 |   |
|                                                               |   |                                |           |   |   |  |   |
| Income                  before provision for income taxes          |   |                                | 575       |   |   | 721 |   |
|                                                               |   |                                |           |   |   |  |   |
| Provision                  for income taxes                        |   |                                | 153       |   |   | 222 |   |
|                                                               |   |                                |           |   |   |  |   |
| Net                  income                                        |   | $                                   | 422       |   | $ | 499 |   |
|                                                               |   |                                |           |   |   |  |   |
| Basic                  earnings per share                          |   | $                                   | 0.39      |   | $ | 0.46 |   |
|                                                               |   |                                |           |   |   |  |   |
| Diluted                  earnings per share                        |   | $                                   | 0.35      |   | $ | 0.41 |   |
|                                                               |   |                                |           |   |   |  |   |
| Weighted                  average shares outstanding (basic eps)   |   |                                | 1,073,660 |   |   | 1,080,604 |   |
|                                                               |   |                                |           |   |   |  |   |
| Weighted                  average shares outstanding (diluted eps) |   |                                | 1,207,858 |   |   | 1,203,258 |   |

----

|                                                                                                                                           |   |      |   |   |   |       |   |        |   |     |   |     |   | ACCUMULATED   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|------------|--------|-------------|--------|----------|--------|----------|--------|---------------|--------|--------|--------|
|                                                                                                                                           |   |      |   |   |   | ADDITIONAL |   | UNALLOCATED |   |     |   |     |   | OTHER         |   |   |   |
|                                                                                                                                           |   | PREFERRED |   | COMMON |   | PAID-IN    |   | ESOP        |   | TREASURY |   | RETAINED |   | COMPREHENSIVE |   |   |   |
|                                                                                                                                           |   | STOCK     |   | STOCK  |   | CAPITAL    |   | SHARES      |   | STOCK    |   | EARNINGS |   | INCOME        |   | TOTAL  |   |
|                                                                                                                                           |   |      |   |   |   |       |   |        |   |     |   |     |   |          |   |   |   |
| Balance,                  June 30, 2006                                                                                                        |   | $         | -      |   | $      | 12         |   | $           | 4,274  |     | $      | (129     | )      | $             | (4,521 | )      | $      | 24,056 |   | $ | (1,147 | ) | $ | 22,545 |   |
|                                                                                                                                           |   |      |        |   |   |            |   |        |        |     |   |          |   |          |        |   |   |  |   |   |  |   |   |  |   |
| Net                  income                                                                                                                    |   |      | -      |   |   | -          |   |        | -      |     |   | -        |   |          | -      |   |   | 422 |   |   | - |   |   | 422 |   |
| Other                  comprehensive income                                                                                                    |   |      | -      |   |   | -          |   |        | -      |     |   | -        |   |          | -      |   |   | - |   |   | 670 |   |   | 670 |   |
|                                                                                                                                           |   |      |        |   |   |            |   |        |        |     |   |          |   |          |        |   |   |  |   |   |  |   |   |  |   |
| Total                  comprehensive income                                                                                                    |   |      | -      |   |   | -          |   |        | -      |     |   | -        |   |          | -      |   |   | - |   |   | - |   |   | 1,092 |   |
|                                                                                                                                           |   |      |        |   |   |            |   |        |        |     |   |          |   |          |        |   |   |  |   |   |  |   |   |  |   |
| Dividends                  paid ($.22 per share)                                                                                               |   |      | -      |   |   | -          |   |        | -      |     |   | -        |   |          | -      |   |   | (97 | ) |   | - |   |   | (97 | ) |
|                                                                                                                                           |   |      |        |   |   |            |   |        |        |     |   |          |   |          |        |   |   |  |   |   |  |   |   |  |   |
| Treasury                  stock purchased (3,100 shares @ $31.90; 1,065 shares @                  $32.00)                                      |   |      | -      |   |   | -          |   |        | -      |     |   | -        |   |          | (133   | )      |   | - |   |   | - |   |   | (133 | ) |
|                                                                                                                                           |   |      |        |   |   |            |   |        |        |     |   |          |   |          |        |   |   |  |   |   |  |   |   |  |   |
| ESOP                  shares allocated or committed to be released for allocation (1,150                  shares)                  (unaudited) |   |      | -      |   |   | -          |   |        | 28     |     |   | 9        |   |          | -      |   |   | - |   |   | - |   |   | 37 |   |
|                                                                                                                                           |   |      |        |   |   |            |   |        |        |     |   |          |   |          |        |   |   |  |   |   |  |   |   |  |   |
| Balance,                  September 30, 2006 (unaudited)                                                                                       |   | $         | -      |   | $      | 12         |   | $           | 4,302  |     | $      | (120     | )      | $             | (4,654 | )      | $      | 24,381 |   | $ | (477 | ) | $ | 23,444 |   |

----

|                                                                                                                                                   |   | Three                  Months Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                                                                                                                   |   | September                  30,      |   |
|                                                                                                                                                   |   | 2006                                |   | 2005 |   |
|                                                                                                                                                   |   | (Unaudited)                         |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                                                                                 |   |                                |   |   |   |
| Net                  income                                                                                                                            |   | $                                   | 422    |   | $ | 499 |   |
| Adjustments                  to reconcile net income to net cash from operating                  activities:                                           |   |                                |   |   |   |   |   |
| Provision                  (adjustment) for mortgage servicing rights valuation                                                                        |   |                                | -      |   |   | (46 | ) |
| Depreciation                                                                                                                                           |   |                                | 130    |   |   | 128 |   |
| Net                  amortization of marketable securities premium and                  discounts                                                      |   |                                | 174    |   |   | 300 |   |
| Amortization                  of capitalized mortgage servicing rights                                                                                 |   |                                | 76     |   |   | 106 |   |
| Gain                  on sale of loans                                                                                                                 |   |                                | (119   | ) |   | (173 | ) |
| Net                  realized gain on sale of available-for-sale securities                                                                            |   |                                | -      |   |   | (1 | ) |
| Increase                  in cash surrender value of life insurance                                                                                    |   |                                | (45    | ) |   | (45 | ) |
| Change                  in assets and liabilities:                                                                                                     |   |                                |   |   |   |   |   |
| (Increase)                  decrease in assets:                                                                                                        |   |                                |   |   |   |   |   |
| Accrued                  interest and dividends receivable                                                                                             |   |                                | (94    | ) |   | (38 | ) |
| Loans                  held-for-sale                                                                                                                   |   |                                | (1,371 | ) |   | 647 |   |
| Other                  assets                                                                                                                          |   |                                | 386    |   |   | 69 |   |
| Increase                  (decrease) in liabilities:                                                                                                   |   |                                |   |   |   |   |   |
| Accrued                  expenses and other liabilities                                                                                                |   |                                | 304    |   |   | 606 |   |
| Net                  cash used in operating activities                                                                                                 |   |                                | (137   | ) |   | 2,052 |   |
|                                                                                                                                                   |   |                                |   |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                                                                                                 |   |                                |   |   |   |   |   |
| Purchase                  of securities:                                                                                                               |   |                                |   |   |   |   |   |
| Investment                  securities available-for-sale                                                                                              |   |                                | (3,295 | ) |   | (526 | ) |
| Proceeds                  from maturities, calls and principal payments:                                                                               |   |                                |   |   |   |   |   |
| Investment                  securities held-to-maturity                                                                                                |   |                                | 29     |   |   | 46 |   |
| Investment                  securities available-for-sale                                                                                              |   |                                | 3,745  |   |   | 5,488 |   |
| Proceeds                  from sales of investment securities available-for-sale                                                                       |   |                                | -      |   |   | 505 |   |
| Net                  increase in loans receivable, excludes transfers to real estate                  acquired                  in settlement of loans |   |                                | (3,976 | ) |   | (9,165 | ) |
| Purchase                  of stock in non-consolidated subsidiary                                                                                      |   |                                | -      |   |   | (155 | ) |
| Purchase                  of property and equipment                                                                                                    |   |                                | (103   | ) |   | (65 | ) |
| Net                  cash used in investing activities                                                                                                 |   |                                | (3,600 | ) |   | (3,872 | ) |

----

|                                                                       |   | Three                  Months Ended |   |
|----------------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                                       |   | September                  30,      |   |
|                                                                       |   | 2006                                |   | 2005 |   |
|                                                                       |   | (Unaudited)                         |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                     |   |                           |   |    |   |
| Net                  increase in checking and savings accounts             |   | $                                   | 1,820  |   | $ | 3,719 |   |
| Net                  decrease in federal funds                             |   |                                | (2,375 | ) |   | - |   |
| Payments                  on FHLB advances                                 |   |                                | (6,167 | ) |   | (292 | ) |
| FHLB                  advances                                             |   |                                | 12,000 |   |   | - |   |
| Issue                  of subordinated debentures                          |   |                                | -      |   |   | 5,155 |   |
| Purchase                  of treasury stock                                |   |                                | (133   | ) |   | (151 | ) |
| Dividends                  paid                                            |   |                                | (97    | ) |   | (90 | ) |
| Net                  cash provided by financing activities                 |   |                                | 5,048  |   |   | 8,341 |   |
|                                                                       |   |                                |   |   |   |   |   |
| Net                  increase in cash and cash equivalents                 |   |                                | 1,311  |   |   | 6,521 |   |
|                                                                       |   |                                |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS, beginning of period            |   |                                | 2,871  |   |   | 4,966 |   |
|                                                                       |   |                                |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS, end of period                  |   | $                                   | 4,182  |   | $ | 11,487 |   |
|                                                                       |   |                                |   |   |   |   |   |
| SUPPLEMENTAL                  CASH FLOW INFORMATION:                       |   |                                |   |   |   |   |   |
| Cash                  paid during the period for interest                  |   | $                                   | 1,484  |   | $ | 774 |   |
|                                                                       |   |                                |   |   |   |   |   |
| Cash                  paid during the period for income taxes              |   | $                                   | -      |   | $ | - |   |
|                                                                       |   |                                |   |   |   |   |   |
| NON-CASH                  INVESTING ACTIVITIES:                            |   |                                |   |   |   |   |   |
| Increase                  in market value of securities available-for-sale |   | $                                   | (1,055 | ) | $ | 291 |   |
|                                                                       |   |                                |   |   |   |   |   |
| Mortgage                  servicing rights capitalized                     |   | $                                   | 53     |   | $ | 174 |   |

----

**NOTE        1.**
**BASIS        OF PRESENTATION**

----

**NOTE        2.**
**INVESTMENT        SECURITIES**

|                                                    |   | September                  30, 2006 (Unaudited) |   | June                  30, 2006 (Audited) |   |
|---------------------------------------------------------|--------|-------------------------------------------------|--------|------------------------------------------|--------|
|                                                    |   | AMORTIZED                  COST                 |   | GROSSUNREALIZEDGAINS/(LOSSES)            |   | FAIRVALUE |   | AMORTIZEDCOST |   | GROSSUNREALIZEDGAINS/(LOSSES) |   | FAIRVALUE |   |
| **Available-for-sale:**                                 |   |                                            |   |                                     |   |   |   |   |   |   |   |   |   |
| U.S.                  government and agency obligations |   | $                                               | 7,222  |                                     | $      | (74 | ) | $ | 7,148 |   | $ | 7,448 |   | $ | (152 | ) | $ | 7,296 |   |
| Municipal                  obligations                  |   |                                            | 17,914 |                                     |   | 158 |   |   | 18,072 |   |   | 17,471 |   |   | (328 | ) |   | 17,143 |   |
| Corporate                  obligations                  |   |                                            | 16,094 |                                     |   | (261 | ) |   | 15,833 |   |   | 16,059 |   |   | (442 | ) |   | 15,617 |   |
| Mortgage-backed                  securities             |   |                                            | 6,262  |                                     |   | (146 | ) |   | 6,116 |   |   | 6,949 |   |   | (202 | ) |   | 6,747 |   |
| Collateralized                  mortgage obligations    |   |                                            | 16,124 |                                     |   | (298 | ) |   | 15,826 |   |   | 16,330 |   |   | (513 | ) |   | 15,817 |   |
| Corporate                  preferred stock              |   |                                            | 1,800  |                                     |   | (182 | ) |   | 1,618 |   |   | 1,800 |   |   | (222 | ) |   | 1,578 |   |
| Total                                                   |   | $                                               | 65,416 |                                     | $      | (803 | ) | $ | 64,613 |   | $ | 66,057 |   | $ | (1,859 | ) | $ | 64,198 |   |
| **Held-to-maturity:**                                   |   |                                            |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Municipal                  obligations                  |   | $                                               | 827    |                                     | $      | 17 |   | $ | 844 |   | $ | 828 |   | $ | 12 |   | $ | 840 |   |
| Mortgage-backed                  securities             |   |                                            | 178    |                                     |   | 1 |   |   | 179 |   |   | 190 |   |   | - |   |   | 190 |   |
| Total                                                   |   | $                                               | 1,005  |                                     | $      | 18 |   | $ | 1,023 |   | $ | 1,018 |   | $ | 12 |   | $ | 1,030 |   |

----

**NOTE        3.**
**LOANS        RECEIVABLE**

|                                               |   | September                  30,                  |    | June                  30, |   |
|----------------------------------------------------|--------|-------------------------------------------------|---------|---------------------------|--------|
|                                               |   | 2006                                            |    | 2006                      |   |
|                                               |   | (Unaudited)                                     |    | (Audited)                 |   |
|                                               |   |  *(Dollars                  in Thousands)* |    |
| First                  mortgage loans:             |   |                                            |    |                      |   |
| Residential                  mortgage (1-4 family) |   | $                                               | 78,417  |                      | $      | 75,913 |   |
| Commercial                  real estate            |   |                                            | 19,658  |                      |   | 18,648 |   |
| Real                  estate construction          |   |                                            | 7,103   |                      |   | 6,901 |   |
|                                               |   |                                            |    |                      |   |   |   |
| Other                  loans:                      |   |                                            |    |                      |   |   |   |
| Home                  equity                       |   |                                            | 20,940  |                      |   | 20,191 |   |
| Consumer                                           |   |                                            | 11,552  |                      |   | 11,820 |   |
| Commercial                                         |   |                                            | 7,571   |                      |   | 7,861 |   |
|                                               |   |                                            |    |                      |   |   |   |
| Total                                              |   |                                            | 145,241 |                      |   | 141,334 |   |
|                                               |   |                                            |    |                      |   |   |   |
| Less:                  Allowance for loan losses   |   |                                            | (530    | )                         |   | (535 | ) |
| Add:                  Deferred loan fees, net      |   |                                            | 65      |                      |   | 59 |   |
|                                               |   |                                            |    |                      |   |   |   |
| Total                                              |   | $                                               | 144,776 |                      | $      | 140,858 |   |

|                                                              |   | Three                  Months Ended       |   | Year                  Ended |   |
|-------------------------------------------------------------------|--------|-------------------------------------------|--------|-----------------------------|--------|
|                                                              |   | September                  30,            |   | June                  30,   |   |
|                                                              |   | 2006                                      |   | 2006                        |   |
|                                                              |   | (Audited)                                 |   | (Audited)                   |   |
|                                                              |   | *(Dollars                  in Thousands)* |   |
| Balance,                  beginning of period                     |   | $                                         | 535    |                        | $      | 573 |   |
| Reclassification                  to repossessed property reserve |   |                                      | -      |                        |   | (15 | ) |
| Provision                  charged to operations                  |   |                                      | -      |                        |   | - |   |
| Charge-offs                                                       |   |                                      | (7     | )                           |   | (48 | ) |
| Recoveries                                                        |   |                                      | 2      |                        |   | 25 |   |
| Balance,                  end of period                           |   | $                                         | 530    |                        | $      | 535 |   |

----

**NOTE        4.**
**DEPOSITS**

|                                          |   | September                  30,            |    | June                  30, |   |
|-----------------------------------------------|--------|-------------------------------------------|---------|---------------------------|--------|
|                                          |   | 2006                                      |    | 2006                      |   |
|                                          |   | (Unaudited)                               |    | (Audited)                 |   |
|                                          |   | *(Dollars                  in Thousands)* |    |
| Noninterest                  checking         |   | $                                         | 12,771  |                      | $      | 12,575 |   |
| Interest-bearing                  checking    |   |                                      | 30,931  |                      |   | 29,571 |   |
| Passbook                                      |   |                                      | 23,682  |                      |   | 24,438 |   |
| Money                  market                 |   |                                      | 27,653  |                      |   | 29,129 |   |
| Time                  certificates of deposit |   |                                      | 81,126  |                      |   | 78,629 |   |
| Total                                         |   | $                                         | 176,163 |                      | $      | 174,342 |   |

**NOTE        5.**
**EARNINGS        PER SHARE**

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

----

**NOTE        7.**
**MORTGAGE        SERVICING RIGHTS**

|                                           |   | Three                  Months                   |   | Year                      |   |
|------------------------------------------------|--------|-------------------------------------------------|--------|---------------------------|--------|
|                                           |   | Ended                                           |   | Ended                     |   |
|                                           |   | September                  30,                  |   | June                  30, |   |
|                                           |   | 2006                                            |   | 2006                      |   |
|                                           |   | (Unaudited)                                     |   | (Audited)                 |   |
|                                           |   |  *(Dollars                  in Thousands)* |   |
| Mortgage                  Servicing Rights     |   |                                            |   |                      |   |
| Beginning                  balance             |   | $                                               | 1,722  |                      | $      | 1,903 |   |
| Servicing                  rights capitalized  |   |                                            | 53     |                      |   | 174 |   |
| Servicing                  rights amortized    |   |                                            | (76    | )                         |   | (355 | ) |
| Ending                  balance                |   |                                            | 1,699  |                      |   | 1,722 |   |
|                                           |   |                                            |   |                      |   |   |   |
| Valuation                  Allowance           |   |                                            |   |                      |   |   |   |
| Beginning                  balance             |   |                                            | -      |                      |   | 46 |   |
| Provision                                      |   |                                            | -      |                      |   | (46 | ) |
| Adjustments                                    |   |                                            | -      |                      |   | - |   |
| Ending                  balance                |   |                                            | -      |                      |   | - |   |
|                                           |   |                                            |   |                      |   |   |   |
| Net                  Mortgage Servicing Rights |   | $                                               | 1,699  |                      | $      | 1,722 |   |

----

**Note        Regarding Forward-Looking Statements**

**Overview**

----

**Overview        (continued)**

**Financial        Condition**

----

**Financial        Condition (continued)**

**Results        of Operations for the Three Months Ended September 30, 2006 and        2005**

*Net        Income.*

----

**Results        of Operations for the Three Months Ended September 30, 2006 and 2005        (Continued)**

*Net        Interest Income.*

*Interest        and Dividend Income.*

*Interest        Expense.*

----

**Results        of Operations for the Three Months Ended September 30, 2006 and 2005        (Continued)**

*Provision        for Loan Losses.*

*Noninterest        Income.*

*Noninterest        Expense.*

*Income        Tax Expense.*

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

----

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

|                                 |   |  (Unaudited)                      |   |
|--------------------------------------|--------|----------------------------------------|--------|
|                                 |   | At                  September 30, 2006 |   |
|                                 |   |                                   |   | For                  Capital |   |
|                                 |   |                                   |   | Adequacy |   |
|                                 |   | Dollar                                 |   | Purposes |   |
|                                 |   | Amount                                 |   | %                  of Assets |   |
| Tangible                  capital:   |   |                                   |   |   |   |
| Capital                  level       |   | $                                      | 25,147 |   |   | 10.91 | % |
| Requirement                          |   |                                   | 3,458  |   |   | 1.5 |   |
| Excess                               |   | $                                      | 21,689 |   |   | 9.41 | % |
| Core                  capital:       |   |                                   |   |   |   |   |   |
| Capital                  level       |   | $                                      | 25,147 |   |   | 10.91 | % |
| Requirement                          |   |                                   | 6,915  |   |   | 3.00 |   |
| Excess                               |   | $                                      | 18,232 |   |   | 7.91 | % |
| Risk-based                  capital: |   |                                   |   |   |   |   |   |
| Capital                  level       |   | $                                      | 25,631 |   |   | 15.47 | % |
| Requirement                          |   |                                   | 13,254 |   |   | 8.00 |   |
| Excess                               |   | $                                      | 12,377 |   |   | 7.47 | % |

----

**Impact        of Inflation and Changing Prices**

----

**Application        of Critical Accounting Policies**

*Allowance        for Loan and Lease Losses (ALLL)*

*Deferred        Loan Fees*

*Deferred        Tax Assets*

*Fair        Value of Other Financial Instruments*

*Economic        Life of Fixed Assets*

----

**CONTROLS        AND PROCEDURES**

----

**Part        II - OTHER INFORMATION**

| Item                  1. | Legal                    Proceedings. |
|--------------------------|---------------------------------------|

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

| Period                          |   | Total                  Number of Shares Purchased* |   | Average                  Price Paid Per Share |   | Total                  Number of Shares Purchased as Part of Publicly Announced Plans                  or                  Programs |   | Maximum                  Number of Shares that May Yet Be Purchased Under the Plans or                  Programs |   |
|---------------------------------|--------|----------------------------------------------------|--------|-----------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|--------|
|                            |   |                                               |   |                                          |   |                                                                                                                                |   |                                                                                                             |   |
| July                  2006      |   |                                               | None   |                                          |   | N/A                                                                                                                                 |   |                                                                                                             | N/A    |   |   | N/A |   |
| 07-01-06                        |   |                                               |   |                                          |   |                                                                                                                                |   |                                                                                                             |   |   |   |   |   |
| 07-31-06                        |   |                                               |   |                                          |   |                                                                                                                                |   |                                                                                                             |   |   |   |   |   |
|                            |   |                                               |   |                                          |   |                                                                                                                                |   |                                                                                                             |   |   |   |   |   |
| August                  2006    |   |                                               | 4,165  |                                          | $      | 31.93                                                                                                                               |   |                                                                                                             | 4,165  |   |   | 7,735 |   |
| 08-01-06                        |   |                                               |   |                                          |   |                                                                                                                                |   |                                                                                                             |   |   |   |   |   |
| 08-31-06                        |   |                                               |   |                                          |   |                                                                                                                                |   |                                                                                                             |   |   |   |   |   |
|                            |   |                                               |   |                                          |   |                                                                                                                                |   |                                                                                                             |   |   |   |   |   |
| September                  2006 |   |                                               | None   |                                          |   | N/A                                                                                                                                 |   |                                                                                                             | N/A    |   |   | N/A |   |
| 09-01-06                        |   |                                               |   |                                          |   |                                                                                                                                |   |                                                                                                             |   |   |   |   |   |
| 09-30-06                        |   |                                               |   |                                          |   |                                                                                                                                |   |                                                                                                             |   |   |   |   |   |
| Total                           |   |                                               | 4,165  |                                          | $      | 31.93                                                                                                                               |   |                                                                                                             | 4,165  |   |   | N/A |   |

| Item                      3. | Defaults                        Upon Senior Securities. |
|------------------------------|---------------------------------------------------------|

----

**Part        II - OTHER INFORMATION (CONTINUED)**

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

| 1. | Election                  of directors for three-year terms expiring in                  2009: |
|----|------------------------------------------------------------------------------------------------|

|                                |   | For:      |   | Against: |   |   |   |
|-------------------------------------|--------|-----------|--------|----------|--------|--------|--------|
| James                  A. Maierle   |   | 1,028,303 |   | 3,202    |   |   |   |
| Thomas                  J. McCarvel |   | 1,027,303 |   | 4,202    |   |   |   |

| 2. | Ratification                      of appointment of Davis, Kinard & Co., P.C. as auditors for the fiscal                      year ended June 30, 2007: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | For:   |      | Against: |   | Abstain: |   |
|--------|--------|--------|-----------|----------|--------|----------|--------|
|        |   |   | 1,029,028 |     |   | 60       |   |   | 2,417 |   |

| Item                        5. | Other                        Information. |
|--------------------------------|-------------------------------------------|

| Item                        6. | Exhibits.                                                                                                                                                                                                                                                                                                                                         |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |                                                                                                                                                                                                                                                                                                                                              |
| 31.1                           | Certification                      by Larry A. Dreyer, Chief Executive Officer, pursuant to Rule                      13a-14(a)                      under the Securities Exchange Act of 1934, as adopted pursuant                      to Section                      302 (a) of the Sarbanes-Oxley Act of 2002.                               |
|                           |                                                                                                                                                                                                                                                                                                                                              |
| 31.2                           | Certification                      by Peter J. Johnson, Chief Financial Officer, pursuant to Rule                      13a-14(a)                      under the Securities Exchange Act of 1934, as adopted pursuant                      to Section                      302 (a) of the Sarbanes-Oxley Act of 2002.                              |
|                           |                                                                                                                                                                                                                                                                                                                                              |
| 32.1                           | Certification                      by Larry A. Dreyer, Chief Executive Officer, and Peter J. Johnson,                      Chief                      Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted                      pursuant                      to Section 906 of the Sarbanes-Oxley Act of                      2002. |

|   | a.) | Reports                  on Form 8-K |
|--------|-----|--------------------------------------|

----

|                                         |                             |                                      |
|----------------------------------------------|----------------------------------|-------------------------------------------|
|                                         | EAGLE                  BANCORP   |
|                                    |                        |                                 |
| Date: November                  8, 2006 | By:                    | /s/ Larry                  A. Dreyer |
|                                         | Larry                  A. Dreyer |
|                                         | President/CEO                    |

|                                         |                                          |                                       |
|----------------------------------------------|-----------------------------------------------|--------------------------------------------|
|                                         |                                               |
| Date: November                  8, 2006 | By:                                 | /s/ Peter                  J. Johnson |
|                                         | Peter                  J. Johnson             |
|                                         | Executive                  Vice President/CFO |

----