*Table          of          Contents*

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**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 September 30,                2007 |
|--------|---------------------------------------------------------------------------------|

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

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

**Eagle      Bancorp **

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

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**APPLICABLE      ONLY TO CORPORATE ISSUERS**

| Common                stock, par value $0.01 per share |   | 1,079,822                shares outstanding |
|--------------------------------------------------------|--------|---------------------------------------------|
|                                                   |   |                                        |

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*Table          of          Contents*

TABLE        OF CONTENTS

| PART                I. | FINANCIAL                INFORMATION |
|------------------------|--------------------------------------|

| Item                1. | Financial                Statements                                                                                                                |                    |
|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|
|                   |                                                                                                                                               |                    |
|                   | Consolidated                Statements of Financial Condition as of September                30, 2007 (unaudited) and June 30, 2007                | 1                and 2  |
|                   |                                                                                                                                               |                    |
|                   | Consolidated                Statements of Income for the three months ended                September 30, 2007 and 2006 (unaudited)                 | 3                and 4  |
|                   |                                                                                                                                               |                    |
|                   | Consolidated                Statements of Changes in Stockholders' Equity for                the three months ended September 30, 2007 (unaudited) | 5                       |
|                   |                                                                                                                                               |                    |
|                   | Consolidated                Statements of Cash Flows for the three months                ended September 30, 2007 and 2006 (unaudited)             | 6                and 7  |
|                   |                                                                                                                                               |                    |
|                   | Notes                to Consolidated Financial                Statements                                                                           | 8                to 13  |
|                   |                                                                                                                                               |                    |
| Item                2. | Management's                Discussion and Analysis of Financial Condition or                Plan of Operations                                    | 14                to 18 |
|                   |                                                                                                                                               |                    |
| Item                3. | Controls                and Procedures                                                                                                             | 19                      |

| PART                II. | OTHER                INFORMATION |
|-------------------------|----------------------------------|

| Item                1.      | Legal                Proceedings                                                          | 20     |
|-----------------------------|-------------------------------------------------------------------------------------------|--------|
| Item                2.      | Unregistered                Sales of Equity Securities and Use of                Proceeds | 20     |
| Item                3.      | Defaults                Upon Senior Securities                                            | 20     |
| Item                4.      | Submission                of Matters to a Vote of                Security-Holders         | 21     |
| Item                5.      | Other                Information                                                          | 21     |
| Item                6.      | Exhibits                                                                                  | 21     |
|                        |                                                                                      |   |
| Signatures                  |                                                                                      | 22     |
|                        |                                                                                      |   |
| Exhibit                31.1 |                                                                                      |   |
|                        |                                                                                      |   |
| Exhibit                31.2 |                                                                                      |   |
|                        |                                                                                      |   |
| Exhibit                32.1 |                                                                                      |   |

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*Table          of          Contents*

CONSOLIDATED      STATEMENTS OF FINANCIAL CONDITION

|                                                                                                       |   | September                30, |    | June                30, |   |
|------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|-------------------------|--------|
|                                                                                                       |   | 2007                         |    | 2007                    |   |
|                                                                                                       |   | (Unaudited)                  |    | (Audited)               |   |
| ASSETS                                                                                                     |   |                         |    |                    |   |
| Cash                and due from banks                                                                     |   | $                            | 3,021   |                    | $      | 2,709 |   |
| Interest-bearing                deposits with banks                                                        |   |                         | 198     |                    |   | 360 |   |
| Total                cash and cash equivalents                                                             |   |                         | 3,219   |                    |   | 3,069 |   |
|                                                                                                       |   |                         |    |                    |   |   |   |
| Investment                securities FAS 159, at market value                                              |   |                         | 1,792   |                    |   | 0 |   |
| Investment                securities available-for-sale, at market value                                   |   |                         | 61,275  |                    |   | 64,774 |   |
| Investment                securities held-to-maturity, at cost                                             |   |                         | 748     |                    |   | 921 |   |
| Investment                in nonconsolidated subsidiary                                                    |   |                         | 155     |                    |   | 155 |   |
| Federal                Home Loan Bank stock, at cost                                                       |   |                         | 1,315   |                    |   | 1,315 |   |
| Mortgage                loans held-for-sale                                                                |   |                         | 2,720   |                    |   | 1,175 |   |
| Loans                receivable, net of deferred loan fees and allowance for loan losses                of |   |                         |    |                    |   |   |   |
| $518                at September 30, 2007 and $518 at June 30, 2007                                        |   |                         | 161,942 |                    |   | 158,140 |   |
| Accrued                interest and dividends receivable                                                   |   |                         | 1,336   |                    |   | 1,333 |   |
| Mortgage                servicing rights, net                                                              |   |                         | 1,644   |                    |   | 1,628 |   |
| Property                and equipment, net                                                                 |   |                         | 5,781   |                    |   | 5,806 |   |
| Cash                surrender value of life insurance                                                      |   |                         | 5,813   |                    |   | 5,764 |   |
| Real                estate acquired in settlement of loans, net of allowance for                losses     |   |                         | 0       |                    |   | 0 |   |
| Other                assets                                                                                |   |                         | 316     |                    |   | 606 |   |
| Total                assets                                                                                |   | $                            | 248,056 |                    | $      | 244,686 |   |
|                                                                                                            |   |                         |    |                    |   |   |   |
|                                                                                                            |   |                         |    |                    |   |   |   |

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*Table            of            Contents*

|                                                                                                                                                                                                                                                  |   | September                30, |    | June                30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|-------------------------|--------|
|                                                                                                                                                                                                                                                  |   | 2007                         |    | 2007                    |   |
|                                                                                                                                                                                                                                                  |   | (Unaudited)                  |    | (Audited)               |   |
| LIABILITIES                AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                   |   |                         |    |                    |   |
| Liabilities:                                                                                                                                                                                                                                          |   |                         |    |                    |   |
| Deposit                accounts:                                                                                                                                                                                                                      |   |                         |    |                    |   |
| Noninterest                bearing                                                                                                                                                                                                                    |   | $                            | 14,688  |                    | $      | 13,694 |   |
| Interest                bearing                                                                                                                                                                                                                       |   |                         | 166,793 |                    |   | 165,953 |   |
| Federal                funds purchased                                                                                                                                                                                                                |   |                         | 0       |                    |   | 3,800 |   |
| Advances                from Federal Home Loan Bank and other borrowings                                                                                                                                                                              |   |                         | 34,000  |                    |   | 30,000 |   |
| Long-term                subordinated debentures                                                                                                                                                                                                      |   |                         | 5,155   |                    |   | 5,155 |   |
| Accrued                expenses and other liabilities                                                                                                                                                                                                 |   |                         | 2,525   |                    |   | 1,996 |   |
| Total                liabilities                                                                                                                                                                                                                      |   |                         | 223,161 |                    |   | 220,598 |   |
| 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; 1,083,107 and 1,084,357 outstanding at September 30,                2007                and June 30, 2007, respectively) |   |                         | 12      |                    |   | 12 |   |
| Additional                paid-in capital                                                                                                                                                                                                             |   |                         | 4,414   |                    |   | 4,387 |   |
| Unallocated                common stock held by employee stock ownership plan                ("ESOP")                                                                                                                                                 |   |                         | (82     | )                       |   | (92 | ) |
| Treasury                stock, at cost (140,465 and 139,215 shares at September 30, 2007                and                                                                                                                                           |   |                         |    |                    |   |   |   |
| June                30, 2007, respectively                                                                                                                                                                                                            |   |                         | (4,801  | )                       |   | (4,759 | ) |
| Retained                earnings                                                                                                                                                                                                                      |   |                         | 25,704  |                    |   | 25,448 |   |
| Accumulated                other comprehensive loss                                                                                                                                                                                                   |   |                         | (352    | )                       |   | (908 | ) |
| Total                stockholders' equity                                                                                                                                                                                                             |   |                         | 24,895  |                    |   | 24,088 |   |
|                                                                                                                                                                                                                                                  |   |                         |    |                    |   |   |   |
| Total                liabilities and stockholders' equity                                                                                                                                                                                             |   | $                            | 248,056 |                    | $      | 244,686 |   |
|                                                                                                                                                                                                                                                  |   |                         |    |                    |   |   |   |
|                                                                                                                                                                                                                                                       |   |                         |    |                    |   |   |   |

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*Table          of          Contents*

QUARTERLY      CONSOLIDATED STATEMENTS OF INCOME

|                                                             |   | Three                Months Ended |   |
|------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                             |   | September                30,      |   |
|                                                             |   | 2007                              |   | 2006 |   |
|                                                             |   | (Unaudited)                       |   |
| Interest                and Dividend Income:                     |   |                              |   |   |   |
| Interest                and fees on loans                        |   | $                                 | 2,668  |   | $ | 2,311 |   |
| Interest                on deposits with banks                   |   |                              | 7      |   |   | 12 |   |
| Securities                held-to-maturity                       |   |                              | 9      |   |   | 11 |   |
| Securities                available-for-sale                     |   |                              | 722    |   |   | 660 |   |
| FHLB                dividends                                    |   |                              | 2      |   |   | 0 |   |
| Total                interest and dividend income                |   |                              | 3,408  |   |   | 2,994 |   |
|                                                             |   |                              |   |   |   |   |   |
| Interest                Expense:                                 |   |                              |   |   |   |   |   |
| Deposits                                                         |   |                              | 1,185  |   |   | 934 |   |
| FHLB                advances and other borrowings                |   |                              | 439    |   |   | 331 |   |
| Subordinated                debentures                           |   |                              | 75     |   |   | 75 |   |
| Total                interest expense                            |   |                              | 1,699  |   |   | 1,340 |   |
|                                                             |   |                              |   |   |   |   |   |
| Net                interest income                               |   |                              | 1,709  |   |   | 1,654 |   |
| Loan                loss provision                               |   |                              | 0      |   |   | 0 |   |
| Net                interest income after loan loss provision     |   |                              | 1,709  |   |   | 1,654 |   |
|                                                             |   |                              |   |   |   |   |   |
| Noninterest                income:                               |   |                              |   |   |   |   |   |
| Net                gain on sale of loans                         |   |                              | 199    |   |   | 119 |   |
| Demand                deposit service charges                    |   |                              | 166    |   |   | 135 |   |
| Mortgage                loan servicing fees                      |   |                              | 133    |   |   | 138 |   |
| Net                gain on sale of available-for-sale securities |   |                              | 0      |   |   | 0 |   |
| Net                loss on securities FAS 159                    |   |                              | (41    | ) |   | 0 |   |
| Other                                                            |   |                              | 127    |   |   | 145 |   |
| Total                noninterest income                          |   |                              | 584    |   |   | 537 |   |
|                                                             |   |                              |   |   |   |   |   |
|                                                                  |   |                              |   |   |   |   |   |

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*Table          of          Contents*

|                                                             |   | Three                Months Ended |      |
|------------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                             |   | September                30,      |      |
|                                                             |   | 2007                              |      | 2006 |   |
|                                                             |   | (Unaudited)                       |      |
| Noninterest                expense:                              |   |                              |      |   |   |
| Salaries                and employee benefits                    |   |                              | 946       |   |   | 838 |   |
| Occupancy                expenses                                |   |                              | 135       |   |   | 142 |   |
| Furniture                and equipment depreciation              |   |                              | 71        |   |   | 79 |   |
| In-house                computer expense                         |   |                              | 74        |   |   | 71 |   |
| Advertising                expense                               |   |                              | 63        |   |   | 93 |   |
| Amortization                of mtg servicing fees                |   |                              | 66        |   |   | 76 |   |
| Federal                insurance premiums                        |   |                              | 5         |   |   | 6 |   |
| Postage                                                          |   |                              | 23        |   |   | 18 |   |
| Legal,                accounting, and examination fees           |   |                              | 56        |   |   | 58 |   |
| Consulting                fees                                   |   |                              | 15        |   |   | 16 |   |
| ATM                processing                                    |   |                              | 14        |   |   | 12 |   |
| Other                                                            |   |                              | 200       |   |   | 207 |   |
| Total                noninterest expense                         |   |                              | 1,668     |   |   | 1,616 |   |
|                                                             |   |                              |      |   |   |   |   |
| Income                before provision for income taxes          |   |                              | 625       |   |   | 575 |   |
|                                                             |   |                              |      |   |   |   |   |
| Provision                for income taxes                        |   |                              | 161       |   |   | 153 |   |
|                                                             |   |                              |           |   |   |  |   |
| Net                income                                        |   | $                                 | 464       |   | $ | 422 |   |
|                                                             |   |                              |      |   |   |   |   |
| Basic                earnings per share                          |   | $                                 | 0.43      |   | $ | 0.39 |   |
|                                                             |   |                              |      |   |   |   |   |
| Diluted                earnings per share                        |   | $                                 | 0.38      |   | $ | 0.35 |   |
|                                                             |   |                              |      |   |   |   |   |
| Weighted                average shares outstanding (basic eps)   |   |                              | 1,072,441 |   |   | 1,073,660 |   |
|                                                             |   |                              |      |   |   |   |   |
| Weighted                average shares outstanding (diluted eps) |   |                              | 1,212,458 |   |   | 1,207,858 |   |

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*Table          of          Contents*

CONSOLIDATED      STATEMENTS OF CHANGES IN STOCKHOLDERS'      EQUITY

|                                                                                                          |   |      |    |   |   |       |   |        |    |     |   |     |   | ACCUMULATED   |    |   |   |
|---------------------------------------------------------------------------------------------------------------|--------|-----------|---------|--------|--------|------------|--------|-------------|---------|----------|--------|----------|--------|---------------|---------|--------|--------|
|                                                                                                          |   |      |    |   |   | ADDITIONAL |   | UNALLOCATED |    |     |   |     |   | OTHER         |    |   |   |
|                                                                                                          |   | PREFERRED |    | COMMON |   | PAID-IN    |   | ESOP        |    | TREASURY |   | RETAINED |   | COMPREHENSIVE |    |   |   |
|                                                                                                          |   | STOCK     |    | STOCK  |   | CAPITAL    |   | SHARES      |    | STOCK    |   | EARNINGS |   | INCOME        |    | TOTAL  |   |
|                                                                                                          |   |      |    |   |   |       |   |        |    |     |   |     |   |          |    |   |   |
| Balance,                June 30, 2007                                                                         |   | $         | — |   | $      | 12         |   | $           | 4,387   |     | $      | (92      | )      | $             | (4,759  | )      | $      | 25,448 |   | $ | (908 | ) | $ | 24,088 |   |
|                                                                                                          |   |      |         |   |   |            |   |        |         |     |   |          |   |          |         |   |   |  |   |   |  |   |   |  |   |
| Net                income                                                                                     |   |      | — |   |   | —    |   |        | — |     |   | —  |   |          | — |   |   | 464 |   |   | — |   |   | 464 |   |
| Other                comprehensive income                                                                     |   |      | — |   |   | —    |   |        | — |     |   | —  |   |          | — |   |   | — |   |   | 556 |   |   | 556 |   |
|                                                                                                          |   |      |         |   |   |            |   |        |         |     |   |          |   |          |         |   |   |  |   |   |  |   |   |  |   |
| Total                comprehensive income                                                                     |   |      | — |   |   | —    |   |        | — |     |   | —  |   |          | — |   |   | — |   |   | — |   |   | 1,020 |   |
|                                                                                                          |   |      |         |   |   |            |   |        |         |     |   |          |   |          |         |   |   |  |   |   |  |   |   |  |   |
| Dividends                paid ($.24 per share)                                                                |   |      | — |   |   | —    |   |        | — |     |   | —  |   |          | — |   |   | (105 | ) |   | — |   |   | (105 | ) |
|                                                                                                          |   |      |         |   |   |            |   |        |         |     |   |          |   |          |         |   |   |  |   |   |  |   |   |  |   |
| Treasury                stock purchased (1,250 shares @ $33.00)                                               |   |      | — |   |   | —    |   |        | — |     |   | —  |   |          | (42     | )      |   | — |   |   | — |   |   | (42 | ) |
|                                                                                                          |   |      |         |   |   |            |   |        |         |     |   |          |   |          |         |   |   |  |   |   |  |   |   |  |   |
| FAS                159 Adjustment                                                                             |   |      |    |   |   |       |   |        |    |     |   |     |   |          |    |   |   | (103 | ) |   |   |   |   |   |   |
|                                                                                                          |   |      |    |   |   |       |   |        |    |     |   |     |   |          |    |   |   |   |   |   |   |   |   |   |   |
| ESOP                shares allocated or committed to be released for allocation (1,150                shares) |   |      | — |   |   | —    |   |        | 27      |     |   | 10       |   |          | — |   |   | — |   |   | — |   |   | 37 |   |
|                                                                                                          |   |      |         |   |   |            |   |        |         |     |   |          |   |          |         |   |   |  |   |   |  |   |   |  |   |
| Balance,                September 30, 2007                                                                    |   | $         | — |   | $      | 12         |   | $           | 4,414   |     | $      | (82      | )      | $             | (4,801  | )      | $      | 25,704 |   | $ | (352 | ) | $ | 24,895 |   |
|                                                                                                          |   |      |    |   |   |       |   |        |    |     |   |     |   |          |    |   |   |   |   |   |   |   |   |   |   |
|                                                                                                          |   |      |    |   |   |       |   |        |    |     |   |     |   |          |    |   |   |   |   |   |   |   |   |   |   |

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*Table          of          Contents*

CONSOLIDATED      STATEMENTS OF CASH FLOWS

|                                                                                                                              |   | Three                Months Ended |    |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                                                                                              |   | September                30,      |    |
|                                                                                                                              |   | 2007                              |    | 2006 |   |
|                                                                                                                              |   | (Unaudited)                       |    |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                              |   |                              |    |   |   |
| Net                income                                                                                                         |   | $                                 | 464     |   | $ | 422 |   |
| Adjustments                to reconcile net income to net cash from operating                activities:                          |   |                              |    |   |   |   |   |
| Depreciation                                                                                                                      |   |                              | 116     |   |   | 130 |   |
| Net                amortization of marketable securities premium and                discounts                                     |   |                              | 64      |   |   | 174 |   |
| Amortization                of capitalized mortgage servicing rights                                                              |   |                              | 66      |   |   | 76 |   |
| Gain                on sale of loans                                                                                              |   |                              | (199    | ) |   | (119 | ) |
| Increase                in cash surrender value of life insurance                                                                 |   |                              | (49     | ) |   | (45 | ) |
| Loss                in investment securities, FAS 159                                                                             |   |                              | 41      |   |   | — |   |
| Change                in assets and liabilities:                                                                                  |   |                              |    |   |   |   |   |
| (Increase)                decrease in assets:                                                                                     |   |                              |    |   |   |   |   |
| Accrued                interest and dividends receivable                                                                          |   |                              | (3      | ) |   | (94 | ) |
| Loans                held-for-sale                                                                                                |   |                              | (1,327  | ) |   | (1,371 | ) |
| Other                assets                                                                                                       |   |                              | 210     |   |   | 386 |   |
| Increase                (decrease) in liabilities:                                                                                |   |                              |    |   |   |   |   |
| Accrued                expenses and other liabilities                                                                             |   |                              | 372     |   |   | 304 |   |
| Net                cash used in operating activities                                                                              |   |                              | (245    | ) |   | (137 | ) |
|                                                                                                                              |   |                              |    |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                              |   |                              |    |   |   |   |   |
| Purchase                of securities:                                                                                            |   |                              |    |   |   |   |   |
| Investment                securities available-for-sale                                                                           |   |                              | (1,858  | ) |   | (3,295 | ) |
| Proceeds                from maturities, calls and principal payments:                                                            |   |                              |    |   |   |   |   |
| Investment                securities held-to-maturity                                                                             |   |                              | 173     |   |   | 29 |   |
| Investment                securities available-for-sale                                                                           |   |                              | 4,168   |   |   | 3,745 |   |
| Proceeds                from sales of investment securities available-for-sale                                                    |   |                              | — |   |   | — |   |
| Net                increase in loans receivable, excludes transfers to real estate acquired                in settlement of loans |   |                              | (3,886  | ) |   | (3,976 | ) |
| Purchase                of property and equipment                                                                                 |   |                              | (91     | ) |   | (103 | ) |
| Net                cash used in investing activities                                                                              |   |                              | (1,494  | ) |   | (3,600 | ) |
|                                                                                                                              |   |                              |    |   |   |   |   |
|                                                                                                                                   |   |                              |    |   |   |   |   |

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*Table          of          Contents*

|                                                                     |   | Three                Months Ended |    |
|--------------------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                                     |   | September                30,      |    |
|                                                                     |   | 2007                              |    | 2006 |   |
|                                                                     |   | (Unaudited)                       |    |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                     |   |                         |    |    |   |
| Net                increase in checking and savings accounts             |   | $                                 | 1,836   |   | $ | 1,820 |   |
| Net                decrease in federal funds                             |   |                              | (3,800  | ) |   | (2,375 | ) |
| Payments                on FHLB advances and other borrowings            |   |                              | (5,000  | ) |   | (6,167 | ) |
| FHLB                advances and other borrowings                        |   |                              | 9,000   |   |   | 12,000 |   |
| Issue                of subordinated debentures                          |   |                              | — |   |   | — |   |
| Purchase                of treasury stock                                |   |                              | (42     | ) |   | (133 | ) |
| Dividends                paid                                            |   |                              | (105    | ) |   | (97 | ) |
| Net                cash provided by financing activities                 |   |                              | 1,889   |   |   | 5,048 |   |
|                                                                     |   |                              |    |   |   |   |   |
| Net                increase in cash and cash equivalents                 |   |                              | 150     |   |   | 1,311 |   |
|                                                                     |   |                              |    |   |   |   |   |
| CASH                AND CASH EQUIVALENTS, beginning of period            |   |                              | 3,069   |   |   | 2,871 |   |
|                                                                     |   |                              |    |   |   |   |   |
| CASH                AND CASH EQUIVALENTS, end of period                  |   | $                                 | 3,219   |   | $ | 4,182 |   |
|                                                                     |   |                              |    |   |   |   |   |
| SUPPLEMENTAL                CASH FLOW INFORMATION:                       |   |                              |    |   |   |   |   |
| Cash                paid during the period for interest                  |   | $                                 | 1,640   |   | $ | 1,484 |   |
|                                                                     |   |                              |    |   |   |   |   |
| Cash                paid during the period for income taxes              |   | $                                 | 109     |   | $ | — |   |
|                                                                     |   |                              |    |   |   |   |   |
| NON-CASH                INVESTING ACTIVITIES:                            |   |                              |    |   |   |   |   |
| Increase                in market value of securities available-for-sale |   | $                                 | (708    | ) | $ | (1,055 | ) |
|                                                                     |   |                              |    |   |   |   |   |
| Mortgage                servicing rights capitalized                     |   | $                                 | 83      |   | $ | 53 |   |
|                                                                     |   |                              |    |   |   |   |   |
|                                                                          |   |                              |    |   |   |   |   |

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*Table          of          Contents*

NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS        (UNAUDITED)

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

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*Table          of          Contents*

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

|                                                  |   |  September                30, 2007 (Unaudited) |    | June                30, 2007 (Audited) |   |
|-------------------------------------------------------|--------|-----------------------------------------------------|---------|----------------------------------------|--------|
|                                                  |   | AMORTIZED                COST                       |    | GROSSUNREALIZEDGAINS/(LOSSES)          |   | FAIRVALUE |   | AMORTIZEDCOST |   | GROSSUNREALIZEDGAINS/(LOSSES) |   | FAIRVALUE |   |
| **Available-for-sale:**                               |   |                                                |    |                                   |   |   |   |   |   |   |   |   |   |
| U.S.                government and agency obligations |   | $                                                   | 3,595   |                                   | $      | (27 | ) | $ | 3,568 |   | $ | 3,690 |   | $ | (47 | ) | $ | 3,643 |   |
| Municipal                obligations                  |   |                                                | 21,788  |                                   |   | (159 | ) |   | 21,629 |   |   | 21,198 |   |   | (470 | ) |   | 20,728 |   |
| Corporate                obligations                  |   |                                                | 12,280  |                                   |   | (126 | ) |   | 12,154 |   |   | 13,847 |   |   | (224 | ) |   | 13,623 |   |
| Mortgage-backed                securities             |   |                                                | 7,661   |                                   |   | (116 | ) |   | 7,545 |   |   | 8,107 |   |   | (235 | ) |   | 7,872 |   |
| Collateralized                mortgage obligations    |   |                                                | 16,553  |                                   |   | (174 | ) |   | 16,379 |   |   | 17,408 |   |   | (333 | ) |   | 17,075 |   |
| Corporate                preferred stock              |   |                                                | — |                                   |   | — |   |   | 0 |   |   | 2,000 |   |   | (167 | ) |   | 1,833 |   |
| Total                                                 |   | $                                                   | 61,877  |                                   | $      | (602 | ) | $ | 61,275 |   | $ | 66,250 |   | $ | (1,476 | ) | $ | 64,774 |   |
| **Held-to-maturity:**                                 |   |                                                |    |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Municipal                obligations                  |   | $                                                   | 676     |                                   | $      | 12 |   | $ | 688 |   | $ | 826 |   | $ | 9 |   | $ | 835 |   |
| Mortgage-backed                securities             |   |                                                | 72      |                                   |   | — |   |   | 72 |   |   | 95 |   |   | — |   |   | 95 |   |
| Total                                                 |   | $                                                   | 748     |                                   | $      | 12 |   | $ | 760 |   | $ | 921 |   | $ | 9 |   | $ | 930 |   |

*Fair      Value Option for Financial Assets and Financial Liabilities*

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*Table          of          Contents*

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

|                                             |   | September                30,                  |    | June                30, |   |
|--------------------------------------------------|--------|-----------------------------------------------|---------|-------------------------|--------|
|                                             |   | 2007                                          |    | 2007                    |   |
|                                             |   | (Unaudited)                                   |    | (Audited)               |   |
|                                             |   |  *(Dollars                in Thousands)* |    |
| First                mortgage loans:             |   |                                          |    |                    |   |
| Residential                mortgage (1-4 family) |   | $                                             | 84,885  |                    | $      | 81,958 |   |
| Commercial                real estate            |   |                                          | 27,555  |                    |   | 25,621 |   |
| Real                estate construction          |   |                                          | 5,648   |                    |   | 8,253 |   |
|                                             |   |                                          |    |                    |   |   |   |
| Other                loans:                      |   |                                          |    |                    |   |   |   |
| Home                equity                       |   |                                          | 26,174  |                    |   | 24,956 |   |
| Consumer                                         |   |                                          | 12,116  |                    |   | 11,438 |   |
| Commercial                                       |   |                                          | 6,006   |                    |   | 6,366 |   |
| Total                                            |   |                                          | 162,384 |                    |   | 158,592 |   |
|                                             |   |                                          |    |                    |   |   |   |
| Less:                Allowance for loan losses   |   |                                          | (518    | )                       |   | (518 | ) |
| Add:                Deferred loan fees, net      |   |                                          | 76      |                    |   | 66 |   |
| Total                                            |   | $                                             | 161,942 |                    | $      | 158,140 |   |

|                                                            |   | Three                Months Ended       |   | Year                Ended |   |
|-----------------------------------------------------------------|--------|-----------------------------------------|--------|---------------------------|--------|
|                                                            |   | September                30,            |   | June                30,   |   |
|                                                            |   | 2007                                    |   | 2007                      |   |
|                                                            |   | (Unaudited)                             |   | (Audited)                 |   |
|                                                            |   | *(Dollars                in Thousands)* |   |
| Balance,                beginning of period                     |   | $                                       | 518    |                      | $      | 535 |   |
| Reclassification                to repossessed property reserve |   |                                    | 0      |                      |   | 0 |   |
| Provision                charged to operations                  |   |                                    | 0      |                      |   | 0 |   |
| Charge-offs                                                     |   |                                    | (4     | )                         |   | (29 | ) |
| Recoveries                                                      |   |                                    | 4      |                      |   | 12 |   |
| Balance,                end of period                           |   | $                                       | 518    |                      | $      | 518 |   |

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*Table          of          Contents*

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

|                                        |   | September                30,            |    | June                30, |   |
|---------------------------------------------|--------|-----------------------------------------|---------|-------------------------|--------|
|                                        |   | 2007                                    |    | 2007                    |   |
|                                        |   | (Unaudited)                             |    | (Audited)               |   |
|                                        |   | *(Dollars                in Thousands)* |    |
| Noninterest                checking         |   | $                                       | 14,688  |                    | $      | 13,694 |   |
| Interest-bearing                checking    |   |                                    | 30,855  |                    |   | 30,953 |   |
| Passbook                                    |   |                                    | 23,088  |                    |   | 22,521 |   |
| Money                market                 |   |                                    | 20,634  |                    |   | 23,292 |   |
| Time                certificates of deposit |   |                                    | 92,216  |                    |   | 89,187 |   |
| Total                                       |   | $                                       | 181,481 |                    | $      | 179,647 |   |

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

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

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*Table          of          Contents*

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

|                                         |   | Three                Months                   |   | Year                    |   |
|----------------------------------------------|--------|-----------------------------------------------|--------|-------------------------|--------|
|                                         |   | Ended                                         |   | Ended                   |   |
|                                         |   | September                30,                  |   | June                30, |   |
|                                         |   | 2007                                          |   | 2007                    |   |
|                                         |   | (Unaudited)                                   |   | (Audited)               |   |
|                                         |   |  *(Dollars                in Thousands)* |   |
| Mortgage                Servicing Rights     |   |                                          |        |                    |   |  |   |
| Beginning                balance             |   | $                                             | 1,628  |                    | $      | 1,722 |   |
| Servicing                rights capitalized  |   |                                          | 83     |                    |   | 211 |   |
| Servicing                rights amortized    |   |                                          | (67    | )                       |   | (305 | ) |
| Ending                balance                |   |                                          | 1,644  |                    |   | 1,628 |   |
|                                         |   |                                          |   |                    |   |   |   |
| Valuation                Allowance           |   |                                          |   |                    |   |   |   |
| Beginning                balance             |   |                                          | 0      |                    |   | 0 |   |
| Provision                                    |   |                                          | (0     | )                       |   | (0 | ) |
| Adjustments                                  |   |                                          | 0      |                    |   | 0 |   |
| Ending                balance                |   |                                          | 0      |                    |   | 0 |   |
|                                         |   |                                          |   |                    |   |   |   |
| Net                Mortgage Servicing Rights |   | $                                             | 1,644  |                    | $      | 1,628 |   |

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*Table          of          Contents*

**NOTE      8. RECENTLY ISSUED PRONOUNCEMENTS**

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*Table          of          Contents*

**Note      Regarding Forward-Looking Statements**

**Overview**

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*Table          of          Contents*

**Financial      Condition**

**.**

**Results      of Operations for the Three Months Ended September 30, 2007 and      2006**

*Net      Income.*

*Net      Interest Income.*

*Interest      and Dividend Income.*

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*Table          of          Contents*

**Results      of Operations for the Three Months Ended September 30, 2007 and 2006      (Continued)**

*Interest      Expense.*

*Provision      for Loan Losses.*

*Noninterest      Income. *
*Fair      Value Option for Financial Assets and Financial Liabilities*

*Noninterest      Expense.*

*Income      Tax Expense.*

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*Table          of          Contents*

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

|                               |   |  (Unaudited)                    |   |
|------------------------------------|--------|--------------------------------------|--------|
|                               |   | At                September 30, 2007 |   |
|                               |   |                                 |   | For                Capital |   |
|                               |   |                                 |   | Adequacy |   |
|                               |   | Dollar                               |   | Purposes |   |
|                               |   | Amount                               |   | %                of Assets |   |
| Tangible                capital:   |   |                                 |   |   |   |
| Capital                level       |   | $                                    | 25,273 |   |   | 10.35 | % |
| Requirement                        |   |                                 | 3,664  |   |   | 1.50 |   |
| Excess                             |   | $                                    | 21,609 |   |   | 8.85 | % |
| Core                capital:       |   |                                 |   |   |   |   |   |
| Capital                level       |   | $                                    | 25,273 |   |   | 10.35 | % |
| Requirement                        |   |                                 | 7,327  |   |   | 3.00 |   |
| Excess                             |   | $                                    | 17,946 |   |   | 7.35 | % |
| Risk-based                capital: |   |                                 |   |   |   |   |   |
| Capital                level       |   | $                                    | 25,743 |   |   | 14.63 | % |
| Requirement                        |   |                                 | 14,080 |   |   | 8.00 |   |
| Excess                             |   | $                                    | 11,663 |   |   | 6.63 | % |

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*Table          of          Contents*

MANAGEMENT’S          DISCUSSION AND ANALYSIS OR

**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*

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*Table          of          Contents*

**CONTROLS      AND PROCEDURES**

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*Table          of          Contents*

**Part      II - OTHER INFORMATION**

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

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

|                          |                     |                      | Total                Number    | Maximum                        |
|-------------------------------|--------------------------|---------------------------|--------------------------------|--------------------------------|
|                          |                     |                      | of                Shares       | Number                of       |
|                          |                     |                      | Purchased                      | Shares                that     |
|                          | Total                    |                      | as                Part of      | May                Yet Be      |
|                          | Number                of | Average                   | Publicly                       | Purchased                      |
|                          | Shares                   | Price                Paid | Announced                Plans | Under                the Plans |
| Period                        | Purchased*               | Per                Share  | or                Programs     | or                Programs     |
|                          |                     |                      |                           |                           |
| July                2007      | None                     | N/A                       | N/A                            | N/A                            |
| 07-01-07                      |                     |                      |                           |                           |
| 07-31-07                      |                     |                 |                      |                      |
|                          |                     |                      |                           |                           |
| August                2007    | 1,250                    | $33.00                    | 1,250                          | 4,485                          |
| 08-01-07                      |                     |                      |                           |                           |
| 08-31-07                      |                |                 |                      |                      |
|                          |                     |                      |                           |                           |
| September                2007 | None                     | N/A                       | N/A                            | N/A                            |
| 09-01-07                      |                     |                      |                           |                           |
| 09-30-07                      |                |                 |                      |                           |
| Total                         | 1,250                    | $33.00                    | 1,250                          | N/A                            |

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

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*Table          of          Contents*

**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 2010:                                                                     |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                            |   |   |   |   |   |
|   |                                                                                                                                            | For: |   | Against: |   |   |
|   | Don                O. Campbell                                                                                                                  | 1,089,411 |   | 1,378 |   |   |
|   | Rick                F. Hays                                                                                                                     | 1,088,911 |   | 1,878 |   |   |
|   | Peter                J. Johnson                                                                                                                 | 1,090,011 |   | 778 |   |   |
|   |                                                                                                                                            |   |   |   |   |   |
| 2.     | Ratification                of appointment of Davis, Kinard & Co., P.C. as auditors for the fiscal                year ended June 30, 2008: |
|   |                                                                                                                                            |   |   |   |   |   |
|   |                                                                                                                                            | For: |   | Against: |   | Abstain: |
|   |                                                                                                                                            | 1,088,979 |   | 500 |   | 1,310 |

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

| Item              6. | Exhibits. |
|----------------------|-----------|

|  | 31.1 | Certification                by Peter J. Johnson, 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 Clint J. Morrison, 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 Peter J. Johnson, Chief Executive Officer, and Clint J. Morrison,                Chief                Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted                pursuant                to Section 906 of the Sarbanes-Oxley Act of                2002. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*Table          of          Contents*

SIGNATURES

|                                       |                             |                                      |
|--------------------------------------------|----------------------------------|-------------------------------------------|
|                                       | EAGLE                BANCORP     |
|                                       |                             |                                      |
|                                       |                             |                                      |
| Date: November                9, 2007 | By:                    | /s/ Peter                J. Johnson  |
|                                       | Peter                J. Johnson  |
|                                       | President/CEO                    |
|                                       |                             |                                      |
|                                       |                             |                                      |
| Date: November                9, 2007 | By:                    | /s/ Clint                J. Morrison |
|                                       | Clint                J. Morrison |
|                                       | SVP/CFO                          |

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