**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-QSB**

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

|   | For                the quarterly period ended March 31,                2006 |
|--------|-----------------------------------------------------------------------------|

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

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

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| 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 | 1,091,722                shares outstanding |
|--------------------------------------------------------|---------------------------------------------|

----

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

| Item                1. | Financial                Statements                                                                                                                    |                    |
|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|
|                   |                                                                                                                                                   |                    |
|                   | Consolidated                Statements of Financial Condition as of March 31, 2006 (unaudited)                and                June 30, 2005         | 1                and 2  |
|                   |                                                                                                                                                   |                    |
|                   | Consolidated                Statements of Income for the three and nine months ended March 31,                2006                and 2005 (unaudited) | 3                and 4  |
|                   |                                                                                                                                                   |                    |
|                   | Consolidated                Statements of Changes in Stockholders’ Equity for the nine months ended                March 31, 2006 (unaudited)    | 5                       |
|                   |                                                                                                                                                   |                    |
|                   | Consolidated                Statements of Cash Flows for the nine months ended March 31, 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 22 |
|                   |                                                                                                                                                   |                    |
| Item                3. | Controls                and Procedures                                                                                                                 | 23                      |

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

| Item                1.      | Legal                Proceedings                                           | 24                       |
|-----------------------------|----------------------------------------------------------------------------|--------------------------|
| Item                2.      | Unregistered                Sales of Equity Securities and Use of Proceeds | 24                       |
| Item                3.      | Defaults                Upon Senior Securities                             | 24                       |
| Item                4.      | Submission                of Matters to a Vote of Security-Holders         | 25                       |
| Item                5.      | Other                Information                                           | 25                       |
| Item                6.      | Exhibits                                                                   | 25                       |
|                        |                                                                       |                     |
| Signatures                  |                                                                       | 26                       |
|                        |                                                                       |                     |
| Exhibit                31.1 |                                                                       | 27                and 28 |
|                        |                                                                       |                     |
| Exhibit                31.2 |                                                                       | 29                and 30 |
|                        |                                                                       |                     |
| Exhibit                32.1 |                                                                       | 31                       |

----

|                                                                                                        |   |   | March                  31, |   |   | June                  30, |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------|--------|--------|---------------------------|--------|
|                                                                                                             |   |   | 2006                       |   |   | 2005                      |   |
|                                                                                                             |   |   | (Unaudited)                |   |   | (Audited)                 |   |
| ASSETS                                                                                                      |   |   |                       |   |   |                      |   |
| Cash                  and due from banks                                                                    |   | $      | 3,327                      |   | $      | 3,122                     |   |
| Interest-bearing                  deposits with banks                                                       |   |   | 883                        |   |   | 1,844                     |   |
| Total                  cash and cash equivalents                                                            |   |   | 4,210                      |   |   | 4,966                     |   |
|                                                                                                        |   |   |                       |   |   |                      |   |
| Investment                  securities available-for-sale, at market value                                  |   |   | 66,072                     |   |   | 75,227                    |   |
| Investment                  securities held-to-maturity, at amortized cost                                  |   |   | 1,070                      |   |   | 1,201                     |   |
| Investment                  in nonconsolidated subsidiary                                                   |   |   | 155                        |   |   | -                         |   |
| Federal                  Home Loan Bank stock, at cost                                                      |   |   | 1,315                      |   |   | 1,315                     |   |
| Mortgage                  loans held-for-sale                                                               |   |   | 401                        |   |   | 2,148                     |   |
| Loans                  receivable, net of deferred loan fees and allowance for loan                  losses |   |   | 129,137                    |   |   | 106,839                   |   |
| Accrued                  interest and dividends receivable                                                  |   |   | 1,180                      |   |   | 1,102                     |   |
| Mortgage                  servicing rights, net                                                             |   |   | 1,775                      |   |   | 1,857                     |   |
| Property                  and equipment, net                                                                |   |   | 6,009                      |   |   | 6,242                     |   |
| Cash                  surrender value of life insurance                                                     |   |   | 5,185                      |   |   | 5,049                     |   |
| Real                  estate acquired in settlement of loans, net of allowance for                  losses  |   |   | -                          |   |   | -                         |   |
| Other                  assets                                                                               |   |   | 612                        |   |   | 468                       |   |
| Total                  assets                                                                               |   | $      | 217,121                    |   | $      | 206,414                   |   |

----

|                                                                                                                                                                                                                                                                       |   |   | March                  31, |   |   | June                  30, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------|--------|--------|---------------------------|--------|
|                                                                                                                                                                                                                                                                            |   |   | 2006                       |   |   | 2005                      |   |
|                                                                                                                                                                                                                                                                            |   |   | (Unaudited)                |   |   | (Audited)                 |   |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                                      |   |   |                       |   |   |                      |   |
| Liabilities:                                                                                                                                                                                                                                                               |   |   |                       |   |   |                      |   |
| Deposit                  accounts:                                                                                                                                                                                                                                         |   |   |                       |   |   |                      |   |
| Noninterest                  bearing                                                                                                                                                                                                                                       |   | $      | 12,104                     |   | $      | 11,660                    |   |
| Interest                  bearing                                                                                                                                                                                                                                          |   |   | 164,539                    |   |   | 160,837                   |   |
| Advances                  from Federal Home Loan Bank                                                                                                                                                                                                                      |   |   | 11,010                     |   |   | 9,885                     |   |
| Long-term                  subordinated debentures                                                                                                                                                                                                                         |   |   | 5,155                      |   |   | -                         |   |
| Accrued                  expenses and other liabilities                                                                                                                                                                                                                    |   |   | 1,751                      |   |   | 1,767                     |   |
| Total                  liabilities                                                                                                                                                                                                                                         |   |   | 194,559                    |   |   | 184,149                   |   |
| 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; 1,093,322 and 1,103,972 outstanding at March 31,                  2006 and                  June 30, 2005, respectively) |   |   | 12                         |   |   | 12                        |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                |   |   | 4,247                      |   |   | 4,188                     |   |
| Unallocated                  common stock held by employee stock ownership plan                  ("ESOP")                                                                                                                                                                  |   |   | (138                       | )      |   | (165                      | )      |
| Treasury                    stock, at cost (130,250 and 119,600 shares at March 31, 2006                    and June 30,                    2005, respectively)                                                                                                            |   |   | (4,472                     | )      |   | (4,048                    | )      |
| Retained                  earnings                                                                                                                                                                                                                                         |   |   | 23,707                     |   |   | 22,630                    |   |
| Accumulated                  other comprehensive income (loss)                                                                                                                                                                                                             |   |   | (794                       | )      |   | (352                      | )      |
| Total                  stockholders' equity                                                                                                                                                                                                                                |   |   | 22,562                     |   |   | 22,265                    |   |
|                                                                                                                                                                                                                                                                       |   |   |                       |   |   |                      |   |
| Total                  liabilities and stockholders' equity                                                                                                                                                                                                                |   | $      | 217,121                    |   | $      | 206,414                   |   |

----

|                                                                           |   |  Three                  Months Ended |   | Nine                  Months Ended |   |
|---------------------------------------------------------------------------|--------|-------------------------------------------|--------|------------------------------------|--------|
|                                                                           |   | March                  31,                |   | March                  31,         |   |
|                                                                           |   |                                      | 2006   |                               |   | 2005 |   |   | 2006 |   |   | 2005 |   |
|                                                                           |   |  (Unaudited)                         |   | (Unaudited)                        |   |
| Interest                  and Dividend Income:                            |   |                                      |   |                               |   |   |   |   |   |   |   |   |   |
| Interest                  and fees on loans                               |   | $                                         | 1,978  |                               | $      | 1,526 |   | $ | 5,665 |   | $ | 4,498 |   |
| Interest                  on deposits with banks                          |   |                                      | 5      |                               |   | 4 |   |   | 52 |   |   | 29 |   |
| FHLB                  stock dividends                                     |   |                                      | -      |                               |   | 6 |   |   | - |   |   | 27 |   |
| Securities                  available-for-sale                            |   |                                      | 665    |                               |   | 709 |   |   | 1,928 |   |   | 2,138 |   |
| Securities                  held-to-maturity                              |   |                                      | 13     |                               |   | 16 |   |   | 40 |   |   | 50 |   |
| Total                  interest and dividend income                       |   |                                      | 2,661  |                               |   | 2,261 |   |   | 7,685 |   |   | 6,742 |   |
|                                                                      |   |                                      |   |                               |   |   |   |   |   |   |   |   |   |
| Interest                  Expense:                                        |   |                                      |   |                               |   |   |   |   |   |   |   |   |   |
| Deposits                                                                  |   |                                      | 770    |                               |   | 597 |   |   | 2,153 |   |   | 1,764 |   |
| FHLB                  advances and subordinated debentures                |   |                                      | 211    |                               |   | 32 |   |   | 492 |   |   | 125 |   |
| Total                  interest expense                                   |   |                                      | 981    |                               |   | 629 |   |   | 2,645 |   |   | 1,889 |   |
|                                                                      |   |                                      |   |                               |   |   |   |   |   |   |   |   |   |
| Net                  interest income                                      |   |                                      | 1,680  |                               |   | 1,632 |   |   | 5,040 |   |   | 4,853 |   |
| Loan                  loss provision                                      |   |                                      | -      |                               |   | - |   |   | - |   |   | - |   |
| Net                  interest income after loan loss provision            |   |                                      | 1,680  |                               |   | 1,632 |   |   | 5,040 |   |   | 4,853 |   |
|                                                                      |   |                                      |   |                               |   |   |   |   |   |   |   |   |   |
| Noninterest                  income:                                      |   |                                      |   |                               |   |   |   |   |   |   |   |   |   |
| Net                  gain on sale of loans                                |   |                                      | 70     |                               |   | 119 |   |   | 371 |   |   | 344 |   |
| Demand                  deposit service charges                           |   |                                      | 124    |                               |   | 127 |   |   | 403 |   |   | 411 |   |
| Mortgage                  loan servicing fees                             |   |                                      | 138    |                               |   | 158 |   |   | 459 |   |   | 494 |   |
| Net                  gain (loss) on sale of available-for-sale securities |   |                                      | (10    | )                                  |   | - |   |   | (9 | ) |   | 9 |   |
| Other                                                                     |   |                                      | 152    |                               |   | 144 |   |   | 410 |   |   | 345 |   |
| Total                  noninterest income                                 |   |                                      | 474    |                               |   | 548 |   |   | 1,634 |   |   | 1,603 |   |

----

|                                                                    |   |  Three                  Months Ended |      | Nine                  Months Ended |   |
|--------------------------------------------------------------------|--------|-------------------------------------------|-----------|------------------------------------|--------|
|                                                                    |   | March                  31                 |      | March                  31,         |   |
|                                                                    |   |                                      | 2006      |                               |   | 2005 |   |   | 2006 |   |   | 2005 |   |
|                                                                    |   | (Unaudited)                               |      | (Unaudited)                        |   |
| Noninterest                  expense:                              |   |                                      |      |                               |   |   |   |   |   |   |   |   |   |
| Salaries                  and employee benefits                    |   |                                      | 918       |                               |   | 868 |   |   | 2,656 |   |   | 2,484 |   |
| Occupancy                  expenses                                |   |                                      | 140       |                               |   | 130 |   |   | 398 |   |   | 378 |   |
| Furniture                  and equipment depreciation              |   |                                      | 78        |                               |   | 77 |   |   | 235 |   |   | 235 |   |
| In-house                  computer expense                         |   |                                      | 66        |                               |   | 68 |   |   | 201 |   |   | 196 |   |
| Advertising                  expense                               |   |                                      | 40        |                               |   | 44 |   |   | 156 |   |   | 131 |   |
| Amortization                  of mtg servicing fees                |   |                                      | 67        |                               |   | 87 |   |   | 265 |   |   | 276 |   |
| Federal                  insurance premiums                        |   |                                      | 6         |                               |   | 6 |   |   | 18 |   |   | 19 |   |
| Postage                                                            |   |                                      | 27        |                               |   | 28 |   |   | 69 |   |   | 76 |   |
| Legal,                  accounting, and examination fees           |   |                                      | 39        |                               |   | 37 |   |   | 134 |   |   | 120 |   |
| Consulting                  fees                                   |   |                                      | 14        |                               |   | 15 |   |   | 44 |   |   | 37 |   |
| ATM                  processing                                    |   |                                      | 12        |                               |   | 12 |   |   | 36 |   |   | 36 |   |
| Other                                                              |   |                                      | 227       |                               |   | 187 |   |   | 651 |   |   | 628 |   |
| Total                  noninterest expense                         |   |                                      | 1,634     |                               |   | 1,559 |   |   | 4,863 |   |   | 4,616 |   |
|                                                               |   |                                      |      |                               |   |   |   |   |   |   |   |   |   |
| Income                  before provision for income taxes          |   |                                      | 520       |                               |   | 621 |   |   | 1,811 |   |   | 1,840 |   |
|                                                               |   |                                      |      |                               |   |   |   |   |   |   |   |   |   |
| Provision                  for income taxes                        |   |                                      | 117       |                               |   | 176 |   |   | 464 |   |   | 467 |   |
|                                                               |   |                                      |      |                               |   |   |   |   |   |   |   |   |   |
| Net                  income                                        |   | $                                         | 403       |                               | $      | 445 |   | $ | 1,347 |   | $ | 1,373 |   |
|                                                               |   |                                      |      |                               |   |   |   |   |   |   |   |   |   |
| Basic                  earnings per share                          |   | $                                         | 0.37      |                               | $      | 0.40 |   | $ | 1.25 |   | $ | 1.20 |   |
|                                                               |   |                                      |      |                               |   |   |   |   |   |   |   |   |   |
| Diluted                  earnings per share                        |   | $                                         | 0.33      |                               | $      | 0.37 |   | $ | 1.12 |   | $ | 1.14 |   |
|                                                               |   |                                      |      |                               |   |   |   |   |   |   |   |   |   |
| Weighted                  average shares outstanding (basic eps)   |   |                                      | 1,077,376 |                               |   | 1,106,049 |   |   | 1,078,540 |   |   | 1,141,231 |   |
|                                                               |   |                                      |      |                               |   |   |   |   |   |   |   |   |   |
| Weighted                  average shares outstanding (diluted eps) |   |                                      | 1,205,562 |                               |   | 1,200,962 |   |   | 1,204,411 |   |   | 1,199,811 |   |

----

|                                                                                                                                                                                                                                                                                                                                     |   |   |      |   |   |   |   |   |       |   |   |        |   |   |     |   |   |     |   |   | ACCUMULATED   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|------------|--------|--------|-------------|--------|--------|----------|--------|--------|----------|--------|--------|---------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                     |   |   |      |   |   |   |   |   | ADDITIONAL |   |   | UNALLOCATED |   |   |     |   |   |     |   |   | OTHER         |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                     |   |   | PREFERRED |   |   | COMMON |   |   | PAID-IN    |   |   | ESOP        |   |   | TREASURY |   |   | RETAINED |   |   | COMPREHENSIVE |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                     |   |   | STOCK     |   |   | STOCK  |   |   | CAPITAL    |   |   | SHARES      |   |   | STOCK    |   |   | EARNINGS |   |   | INCOME        |   |   | TOTAL  |   |
|                                                                                                                                                                                                                                                                                                                                |   |   |      |   |   |   |   |   |       |   |   |        |   |   |     |   |   |     |   |   |          |   |   |   |   |
| Balance,                  June 30, 2005                                                                                                                                                                                                                                                                                             |   | $      | -         |   | $      | 12     |   | $      | 4,188      |   | $      | (165        | )      | $      | (4,048   | )      | $      | 22,630   |   | $      | (352          | )      | $      | 22,265 |   |
|                                                                                                                                                                                                                                                                                                                                |   |   |      |   |   |   |   |   |       |   |   |        |   |   |     |   |   |     |   |   |          |   |   |   |   |
| Net                  income (unaudited)                                                                                                                                                                                                                                                                                             |   |   | -         |   |   | -      |   |   | -          |   |   | -           |   |   | -        |   |   | 1,347    |   |   | -             |   |   | 1,347  |   |
| Other                  comprehensive income (unaudited)                                                                                                                                                                                                                                                                             |   |   | -         |   |   | -      |   |   | -          |   |   | -           |   |   | -        |   |   | -        |   |   | (442          | )      |   | (442   | )      |
|                                                                                                                                                                                                                                                                                                                                |   |   |      |   |   |   |   |   |       |   |   |        |   |   |     |   |   |     |   |   |          |   |   |   |   |
| Total                  comprehensive income (unaudited)                                                                                                                                                                                                                                                                             |   |   | -         |   |   | -      |   |   | -          |   |   | -           |   |   | -        |   |   | -        |   |   | -             |   |   | 905    |   |
|                                                                                                                                                                                                                                                                                                                                |   |   |      |   |   |   |   |   |       |   |   |        |   |   |     |   |   |     |   |   |          |   |   |   |   |
| Dividends                  paid ($.60 per share) (unaudited)                                                                                                                                                                                                                                                                        |   |   | -         |   |   | -      |   |   | -          |   |   | -           |   |   | -        |   |   | (270     | )      |   | -             |   |   | (270   | )      |
|                                                                                                                                                                                                                                                                                                                                |   |   |      |   |   |   |   |   |       |   |   |        |   |   |     |   |   |     |   |   |          |   |   |   |   |
| Restricted                  stock plan shares allocated (4,600 shares)                                                                                                                                                                                                                                                              |   |   | -         |   |   | -      |   |   | (27        | )      |   | -           |   |   | 80       |   |   | -        |   |   | -             |   |   | 53     |   |
|                                                                                                                                                                                                                                                                                                                                |   |   |      |   |   |   |   |   |       |   |   |        |   |   |     |   |   |     |   |   |          |   |   |   |   |
| Treasury                  stock purchased (2,500 shares @ $31.75; 1,200 shares @ $32.20;                  1,000                  shares @ $32.50; 1,400 shares @ $34.45; 2,500 shares @ $34.25;                  1,300                  shares @ $32.50; 4,000 shares @ $33.25; 1,350 shares @ $33.10)                  (unaudited) |   |   | -         |   |   | -      |   |   | -          |   |   | -           |   |   | (504     | )      |   | -        |   |   | -             |   |   | (504   | )      |
|                                                                                                                                                                                                                                                                                                                                |   |   |      |   |   |   |   |   |       |   |   |        |   |   |     |   |   |     |   |   |          |   |   |   |   |
| ESOP                  shares allocated or committed to be released for allocation (3,450                  shares)                  (unaudited)                                                                                                                                                                                      |   |   | -         |   |   | -      |   |   | 86         |   |   | 27          |   |   | -        |   |   | -        |   |   | -             |   |   | 113    |   |
|                                                                                                                                                                                                                                                                                                                                |   |   |      |   |   |   |   |   |       |   |   |        |   |   |     |   |   |     |   |   |          |   |   |   |   |
| Balance,                  March 31, 2005 (unaudited)                                                                                                                                                                                                                                                                                |   | $      | -         |   | $      | 12     |   | $      | 4,247      |   | $      | (138        | )      | $      | (4,472   | )      | $      | 23,707   |   | $      | (794          | )      | $      | 22,562 |   |

----

|                                                                                                                                                                        |   |  Nine                  Months Ended |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|---------|
|                                                                                                                                                                        |   | March                  31,               |    |
|                                                                                                                                                                        |   |                                     | 2006    |   |   | 2005 |   |
|                                                                                                                                                                        |   | (Unaudited)                              |    |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                                                                                                 |   |                                     |    |   |   |   |   |
| Net                  income                                                                                                                                            |   | $                                        | 1,347   |   | $ | 1,373 |   |
| Adjustments                    to reconcile net income to net cash from operating                    activities:                                                       |   |                                     |    |   |   |   |   |
| Provision                  for mortgage servicing rights valuation losses                                                                                              |   |                                     | (46     | ) |   | (60 | ) |
| Depreciation                                                                                                                                                           |   |                                     | 384     |   |   | 382 |   |
| Net                    amortization of marketable securities premium and                    discounts                                                                  |   |                                     | 739     |   |   | 1,027 |   |
| Amortization                  of capitalized mortgage servicing rights                                                                                                 |   |                                     | 265     |   |   | 276 |   |
| Gain                  on sale of loans                                                                                                                                 |   |                                     | (371    | ) |   | (344 | ) |
| Net                  realized (gain) loss on sale of available-for-sale                  securities                                                                    |   |                                     | 9       |   |   | (9 | ) |
| FHLB                  & other dividends reinvested                                                                                                                 |   |                                     | -       |   |   | (20 | ) |
| Increase                  in cash surrender value of life insurance                                                                                                    |   |                                     | (136    | ) |   | (127 | ) |
| Restricted                  stock award                                                                                                                                |   |                                     | 53      |   |   | - |   |
| Loss                  on sale of real estate owned                                                                                                                     |   |                                     | 6       |   |   | 53 |   |
| Change                  in assets and liabilities:                                                                                                                     |   |                                     |    |   |   |   |   |
| (Increase)                  decrease in assets:                                                                                                                        |   |                                     |    |   |   |   |   |
| Accrued                  interest and dividends receivable                                                                                                             |   |                                     | (79     | ) |   | (13 | ) |
| Loans                  held-for-sale                                                                                                                                   |   |                                     | 2,098   |   |   | 696 |   |
| Other                  assets                                                                                                                                          |   |                                     | (129    | ) |   | 78 |   |
| Increase                  (decrease) in liabilities:                                                                                                                   |   |                                     |    |   |   |   |   |
| Accrued                  expenses and other liabilities                                                                                                                |   |                                     | 359     |   |   | 522 |   |
| Net                  cash provided by operating activities                                                                                                             |   |                                     | 4,499   |   |   | 3,834 |   |
|                                                                                                                                                                   |   |                                     |    |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                                                                                                                 |   |                                     |    |   |   |   |   |
| Purchase                  of securities:                                                                                                                               |   |                                     |    |   |   |   |   |
| Investment                  securities available-for-sale                                                                                                              |   |                                     | (6,207  | ) |   | (7,679 | ) |
| Proceeds                  from maturities, calls and principal payments:                                                                                               |   |                                     |    |   |   |   |   |
| Investment                  securities held-to-maturity                                                                                                                |   |                                     | 129     |   |   | 298 |   |
| Investment                  securities available-for-sale                                                                                                              |   |                                     | 12,296  |   |   | 14,285 |   |
| FHLB                  stock redeemed                                                                                                                                   |   |                                     | -       |   |   | 377 |   |
| Proceeds                  from sales of investment securities available-for-sale                                                                                       |   |                                     | 1,627   |   |   | 3,698 |   |
| Net                    (increase) decrease in loan receivable, excludes transfers to                    real estate                    acquired in settlement of loans |   |                                     | (22,515 | ) |   | (7,137 | ) |
| Purchase                  of bank owned life insurance                                                                                                                 |   |                                     | -       |   |   | (2,400 | ) |
| Purchase                  of stock in non-consolidated subsidiaries                                                                                                    |   |                                     | (155    | ) |   | - |   |

----

|                                                                                                             |   |  Nine                  Months Ended |    |
|-------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|---------|
|                                                                                                             |   | March                  31,               |    |
|                                                                                                             |   |                                     | 2006    |   |   | 2005 |   |
|                                                                                                             |   | (Unaudited)                              |    |
| CASH                  FLOWS FROM INVESTING ACTIVITIES (CONTINUED):                                          |   |                                     |    |   |   |   |   |
| Purchase                  of property and equipment                                                         |   |                                     | (152    | ) |   | (146 | ) |
| Proceeds                  from the sale of real estate acquired in the settlement of                  loans |   |                                     | 69      |   |   | - |   |
| Net                  cash provided by (used in) investing activities                                        |   |                                     | (14,908 | ) |   | 2,516 |   |
|                                                                                                        |   |                                     |    |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                                                      |   |                                     |    |   |   |   |   |
| Net                  increase (decrease) in checking and savings accounts                                   |   |                                     | 4,149   |   |   | 727 |   |
| Net                  increase (decrease) in overnight FHLB advances                                         |   |                                     | -       |   |   | (3,500 | ) |
| Payments                  on FHLB advances                                                                  |   |                                     | (3,876  | ) |   | (2,823 | ) |
| FHLB                  advances                                                                              |   |                                     | 5,000   |   |   | - |   |
| Issue                  of subordinated debentures                                                           |   |                                     | 5,155   |   |   | - |   |
| Sale                  (Purchase) of Treasury Stock                                                          |   |                                     | (505    | ) |   | (3,903 | ) |
| Dividends                  paid                                                                             |   |                                     | (270    | ) |   | (281 | ) |
| Net                  cash provided by (used in) financing activities                                        |   |                                     | 9,653   |   |   | (5,326 | ) |
|                                                                                                        |   |                                     |    |   |   |   |   |
| Net                  increase (decrease) in cash and cash equivalents                                       |   |                                     | (756    | ) |   | (1,501 | ) |
|                                                                                                        |   |                                     |    |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS, beginning of period                                             |   |                                     | 4,966   |   |   | 4,347 |   |
|                                                                                                        |   |                                     |    |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS, end of period                                                   |   | $                                        | 4,210   |   | $ | 2,846 |   |
|                                                                                                        |   |                                     |    |   |   |   |   |
| SUPPLEMENTAL                  CASH FLOW INFORMATION:                                                        |   |                                     |    |   |   |   |   |
| Cash                  paid during the period for interest                                                   |   | $                                        | 2,785   |   | $ | 1,890 |   |
|                                                                                                        |   |                                     |    |   |   |   |   |
| Cash                  paid during the period for income taxes                                               |   | $                                        | 574     |   | $ | 183 |   |
|                                                                                                        |   |                                     |    |   |   |   |   |
| NON-CASH                  INVESTING ACTIVITIES:                                                             |   |                                     |    |   |   |   |   |
| (Increase)                  decrease in market value of securities available-for-sale                       |   | $                                        | 690     |   | $ | (236 | ) |
|                                                                                                        |   |                                     |    |   |   |   |   |
| Mortgage                  servicing rights capitalized                                                      |   | $                                        | 137     |   | $ | 179 |   |

----

**NOTE      1.**

**BASIS      OF PRESENTATION**

----

|                                                         |   |  March                  31, 2006 (Unaudited) |                                | June                  30, 2005 (Audited) |   |
|---------------------------------------------------------|--------|---------------------------------------------------|-------------------------------------|------------------------------------------|--------|
|                                                         |   |                                              | AMORTIZED                      COST |                                     |   | GROSSUNREALIZEDGAINS/(LOSSES) |   |   | FAIRVALUE |   |   | AMORTIZEDCOST |   |   | GROSSUNREALIZEDGAINS/(LOSSES) |   |   | FAIRVALUE |   |
| **Available-for-sale:**                                 |   |                                              |                                |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.                  government and agency obligations |   | $                                                 | 7,091                               |                                     | $      | (123 | ) | $ | 6,968 |   | $ | 8,012 |   | $ | (41 | ) | $ | 7,971 |   |
| Municipal                  obligations                  |   |                                              | 16,421                              |                                     |   | (1 | ) |   | 16,420 |   |   | 13,239 |   |   | 188 |   |   | 13,427 |   |
| Corporate                  obligations                  |   |                                              | 16,674                              |                                     |   | (409 | ) |   | 16,265 |   |   | 17,020 |   |   | (231 | ) |   | 16,789 |   |
| Mortgage-backed                  securities             |   |                                              | 7,644                               |                                     |   | (160 | ) |   | 7,484 |   |   | 11,164 |   |   | (110 | ) |   | 11,054 |   |
| Collateralized                  mortgage obligations    |   |                                              | 17,725                              |                                     |   | (415 | ) |   | 17,310 |   |   | 24,583 |   |   | (213 | ) |   | 24,370 |   |
| Corporate                  preferred stock              |   |                                              | 1,800                               |                                     |   | (175 | ) |   | 1,625 |   |   | 1,800 |   |   | (184 | ) |   | 1,616 |   |
| Total                                                   |   | $                                                 | 67,355                              |                                     | $      | (1,283 | ) | $ | 66,072 |   | $ | 75,818 |   | $ | (591 | ) | $ | 75,227 |   |
| **Held-to-maturity:**                                   |   |                                              |                                |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Municipal                  obligations                  |   | $                                                 | 828                                 |                                     | $      | 19 |   | $ | 847 |   | $ | 829 |   | $ | 37 |   | $ | 866 |   |
| Mortgage-backed                  securities             |   |                                              | 242                                 |                                     |   | 2 |   |   | 244 |   |   | 372 |   |   | 11 |   |   | 383 |   |
| Total                                                   |   | $                                                 | 1,070                               |                                     | $      | 21 |   | $ | 1,091 |   | $ | 1,201 |   | $ | 48 |   | $ | 1,249 |   |

----

**NOTE      3.**

**LOANS      RECEIVABLE**

|                                             |   |                                          | March                31, |   |   | June                30, |   |
|--------------------------------------------------|--------|-----------------------------------------------|--------------------------|--------|--------|-------------------------|--------|
|                                             |   |                                          | 2006                     |   |   | 2005                    |   |
|                                             |   |                                          | (Unaudited)              |   |   | (Audited)               |   |
|                                             |   |  *(Dollars                in Thousands)* |                     |
| First                mortgage loans:             |   |                                          |                     |   |   |                    |   |
| Residential                mortgage (1-4 family) |   | $                                             | 71,070                   |   | $      | 56,533                  |   |
| Commercial                real estate            |   |                                          | 16,686                   |   |   | 14,779                  |   |
| Real                estate construction          |   |                                          | 5,009                    |   |   | 2,723                   |   |
|                                             |   |                                          |                     |   |   |                    |   |
| Other                loans:                      |   |                                          |                     |   |   |                    |   |
| Home                equity                       |   |                                          | 18,313                   |   |   | 16,801                  |   |
| Consumer                                         |   |                                          | 11,863                   |   |   | 10,909                  |   |
| Commercial                                       |   |                                          | 6,720                    |   |   | 5,568                   |   |
|                                             |   |                                          |                     |   |   |                    |   |
| Total                                            |   |                                          | 129,661                  |   |   | 107,313                 |   |
|                                             |   |                                          |                     |   |   |                    |   |
| Less:                Allowance for loan losses   |   |                                          | (541                     | )      |   | (573                    | )      |
| Deferred                loan fees                |   |                                          | 17                       |   |   | 99                      |   |
|                                             |   |                                          |                     |   |   |                    |   |
| Total                                            |   | $                                             | 129,137                  |   | $      | 106,839                 |   |

|                                                              |   |                                    | Nine                Months Ended |   |   | Year                ended |   |
|-------------------------------------------------------------------|--------|-----------------------------------------|----------------------------------|--------|--------|---------------------------|--------|
|                                                              |   |                                    | March                31,         |   |   | June                30,   |   |
|                                                              |   |                                    | 2006                             |   |   | 2005                      |   |
|                                                              |   |                                    | (Unaudited)                      |   |   | (Audited)                 |   |
|                                                              |   | *(Dollars                in Thousands)* |                             |
| Balance,                beginning of period                       |   | $                                       | 573                              |   | $      | 628                       |   |
| Reclassification                  to repossessed property reserve |   |                                    | (15                              | )      |   | (15                       | )      |
| Provision                charged to operations                    |   |                                    | -                                |   |   | -                         |   |
| Charge-offs                                                       |   |                                    | (36                              | )      |   | (50                       | )      |
| Recoveries                                                        |   |                                    | 19                               |   |   | 10                        |   |
| Balance,                end of period                             |   | $                                       | 541                              |   | $      | 573                       |   |

----

**NOTE      4.**

**DEPOSITS**

|                                        |   |                                    | March                31, |   |   | June                30, |   |
|---------------------------------------------|--------|-----------------------------------------|--------------------------|--------|--------|-------------------------|--------|
|                                        |   |                                    | 2006                     |   |   | 2005                    |   |
|                                        |   |                                    | (Unaudited)              |   |   | (Audited)               |   |
|                                        |   | *(Dollars                in Thousands)* |                     |
| Noninterest                checking         |   | $                                       | 12,104                   |   | $      | 11,660                  |   |
| Interest-bearing                checking    |   |                                    | 30,437                   |   |   | 30,865                  |   |
| Passbook                                    |   |                                    | 25,170                   |   |   | 25,239                  |   |
| Money                market                 |   |                                    | 32,840                   |   |   | 26,749                  |   |
| Time                certificates of deposit |   |                                    | 76,092                   |   |   | 77,984                  |   |
| Total                                       |   | $                                       | 176,643                  |   | $      | 172,497                 |   |

**NOTE      5.**

**EARNINGS      PER SHARE**

**NOTE      6.**

**DIVIDENDS      AND STOCK REPURCHASE PROGRAM**

----

**NOTE      7.**

**MORTGAGE      SERVICING RIGHTS**

|                                         |   |                                          | Nine                Months |   |   | Twelve                months |   |
|----------------------------------------------|--------|-----------------------------------------------|----------------------------|--------|--------|------------------------------|--------|
|                                         |   |                                          | ended                      |   |   | ended                        |   |
|                                         |   |                                          | March                31,   |   |   | June                30,      |   |
|                                         |   |                                          | 2006                       |   |   | 2005                         |   |
|                                         |   |                                          | (Unaudited)                |   |   | (Audited)                    |   |
|                                         |   |  *(Dollars                in Thousands)* |                       |
| Mortgage                Servicing Rights     |   |                                          |                       |   |   |                         |   |
| Beginning                balance             |   | $                                             | 1,903                      |   | $      | 2,064                        |   |
| Servicing                rights capitalized  |   |                                          | 137                        |   |   | 219                          |   |
| Servicing                rights amortized    |   |                                          | (265                       | )      |   | (380                         | )      |
| Ending                balance                |   |                                          | 1,775                      |   |   | 1,903                        |   |
|                                         |   |                                          |                       |   |   |                         |   |
| Valuation                Allowance           |   |                                          |                       |   |   |                         |   |
| Beginning                balance             |   |                                          | 46                         |   |   | 60                           |   |
| Provision                                    |   |                                          | (46                        | )      |   | (14                          | )      |
| Adjustments                                  |   |                                          | -                          |   |   | -                            |   |
| Ending                balance                |   |                                          | -                          |   |   | 46                           |   |
|                                         |   |                                          |                       |   |   |                         |   |
| Net                Mortgage Servicing Rights |   | $                                             | 1,775                      |   | $      | 1,857                        |   |

----

**Note      Regarding Forward-Looking Statements**

**Overview**

----

**Overview      (continued)**

**Financial      Condition**

----

**Financial      Condition (continued)**

**Results      of Operations for the Three Months Ended March 31, 2006 and      2005**

*Net      Income.*

----

**Results      of Operations for the Three Months Ended March 31, 2006 and 2005      (Continued)**

*Net      Interest Income.*

*Interest      and Dividend Income.*

*Interest      Expense.*

----

**Results      of Operations for the Three Months Ended March 31, 2006 and 2005      (Continued)**

*Provision      for Loan Losses.*

*Noninterest      Income. *

*Noninterest      Expense.*

*Income      Tax Expense.*

**Results      of Operations for the Nine Months Ended March 31, 2006 and      2005**

*Net      Income.*

----

**Results      of Operations for the Nine Months Ended March 31, 2006 and      2005**

*Net      Interest Income.*

*Interest      and Dividend Income.*

*Interest      Expense.*

----

**Results      of Operations for the Nine Months Ended March 31, 2006 and      2005**

*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                March 31, 2006 |   |
|                               |   |                                   |   |   |   | For                Capital |   |
|                               |   |                                   |   |   |   | Adequacy |   |
|                               |   |                                   | Dollar |   |   | Purposes |   |
|                               |   |                                   | Amount |   |   | %                of Assets |   |
| Tangible                capital:   |   |                                   |   |   |   |   |   |
| Capital                level       |   | $                                      | 25,047 |   |   | 11.63 | % |
| Requirement                        |   |                                   | 3,230  |   |   | 1.50 |   |
| Excess                             |   | $                                      | 21,817 |   |   | 10.13 | % |
| Core                capital:       |   |                                   |   |   |   |   |   |
| Capital                level       |   | $                                      | 25,047 |   |   | 11.63 | % |
| Requirement                        |   |                                   | 6,460  |   |   | 3.00 |   |
| Excess                             |   | $                                      | 18,587 |   |   | 8.63 | % |
| Risk-based                capital: |   |                                   |   |   |   |   |   |
| Capital                level       |   | $                                      | 25,555 |   |   | 16.53 | % |
| Requirement                        |   |                                   | 12,370 |   |   | 8.00 |   |
| Excess                             |   | $                                      | 13,185 |   |   | 8.53 | % |

----

**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*

----

**ITEM      3.**

**CONTROLS      AND PROCEDURES**

----

**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     |
|                           |                       |                        |                             |                             |
| January                  2006  | 1,300                      | $32.25                      | 1,300                            | 18,850                           |
| 01-01-06                       |                       |                        |                             |                             |
| 01-31-06                       |                       |                        |                             |                             |
|                           |                       |                        |                             |                             |
| February                  2006 | 4,000                      | $33.25                      | 4,000                            | 14,850                           |
| 02-01-06                       |                       |                        |                             |                             |
| 02-28-06                       |                       |                        |                             |                             |
|                           |                       |                        |                             |                             |
| March                  2006    | 1,350                      | $33.10                      | 1,350                            | 13,500                           |
| 03-01-06                       |                       |                        |                             |                             |
| 03-31-06                       |                       |                        |                             |                             |
| Total                          | 6,650                      | $33.02                      | 6,650                            | N/A                              |

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

----

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

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

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

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

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

----

|                                             |                         |                                               |
|--------------------------------------------------|------------------------------|----------------------------------------------------|
|                                             | EAGLE              BANCORP   |
|                                        |                    |                                          |
| Date: May              9,              2006 | By:                | /s/ Larry              A.              Dreyer |
|                                             | Larry              A. Dreyer |
|                                             | President/CEO                |
|                                             |                                                   |                                                |
|--------------------------------------------------|--------------------------------------------------------|-----------------------------------------------------|
|                                             |                                                   |
|                                        |                                              |                                           |
| Date: May              9,              2006 | By:                                          | /s/ Peter              J.              Johnson |
|                                             | Peter              J. Johnson                          |
|                                             | Executive              Vice              President/CFO |

----