================================================================================
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

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

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

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

          For the transition period from _____________ to _____________

                        Commission File Number: 000-18464
                                                ---------

                            EMCLAIRE FINANCIAL CORP.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


Pennsylvania                                                          25-1606091
--------------------------------------------------------------------------------
(State or other jurisdiction of incorporation or                   (IRS Employer
organization)                                                Identification No.)


612 Main Street, Emlenton, Pennsylvania                                    16373
--------------------------------------------------------------------------------
(Address of principal executive offices)                              (Zip Code)


                                 (724) 867-2311
--------------------------------------------------------------------------------
                         (Registrant's telephone number)


--------------------------------------------------------------------------------
   (Former name, former address and former fiscal year, if changed since last
                                    report)

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes |X| No |_|

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

     Large accelerated filer |_| Accelerated filer |_| Non-accelerated filer |X|

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

     The  number of shares  outstanding  of the  Registrant's  common  stock was
1,267,835 at May 10, 2007.

================================================================================

<PAGE>

                            EMCLAIRE FINANCIAL CORP.

                     INDEX TO QUARTERLY REPORT ON FORM 10-Q



                         PART I - FINANCIAL INFORMATION
                         ------------------------------

<TABLE>
<CAPTION>
<S>                 <C> <C>               <C> <C>                                                                      <C>
Item 1.       Interim Financial Statements (Unaudited)

              Consolidated Balance Sheets as of
              March 31, 2007 and December 31, 2006......................................................................1

              Consolidated Statements of Income for the three
              months ended March 31, 2007 and 2006......................................................................2

              Condensed Consolidated Statements of Cash Flows for the three
              months ended March 31, 2007 and 2006......................................................................3

              Consolidated Statements of Changes in Stockholders'
              Equity for the three months ended March 31, 2007 and 2006.................................................4

              Notes to Consolidated Financial Statements................................................................5

Item 2.       Management's Discussion and Analysis
              of Financial Condition and Results of Operations..........................................................9

Item 3.       Quantitative and Qualitative Disclosures about Market Risk...............................................15

Item 4.       Controls and Procedures..................................................................................16

                           PART II - OTHER INFORMATION
                           ---------------------------

Item 1.       Legal Proceedings........................................................................................16

Item 1A.      Risk Factors.............................................................................................16

Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds..............................................16

Item 3.       Defaults upon Senior Securities..........................................................................16

Item 4.       Submission of Matters to a Vote of Security Holders......................................................17

Item 5.       Other Information........................................................................................17

Item 6.       Exhibits.................................................................................................17

Signatures    .........................................................................................................18
</TABLE>

<PAGE>

                         PART I - FINANCIAL INFORMATION
                         ------------------------------

Item 1.  Interim Financial Statements
-------------------------------------

                     Emclaire Financial Corp. and Subsidiary
                           Consolidated Balance Sheets
             As of March 31, 2007 (Unaudited) and December 31, 2006
              (Dollar amounts in thousands, except per share data)

<TABLE>
<CAPTION>
                                                                                           March 31,     December 31,
                                                                                             2007            2006
                                                                                         -------------   ------------

                                         Assets
                                         ------

<S>                                                                                      <C>             <C>
Cash and due from banks                                                                  $      5,737    $     7,540
Interest-earning deposits with banks                                                            5,338          9,177
                                                                                         -------------   ------------
  Cash and cash equivalents                                                                    11,075         16,717
Securities available for sale, at fair value                                                   57,044         51,774
Loans receivable, net of allowance for loan losses of $2,078 and $2,035                       212,933        213,344
Federal bank stocks, at cost                                                                    2,209          2,217
Bank-owned life insurance                                                                       4,841          4,794
Accrued interest receivable                                                                     1,476          1,374
Premises and equipment, net                                                                     7,891          7,958
Goodwill                                                                                        1,422          1,422
Deferred tax asset                                                                                552            533
Prepaid expenses and other assets                                                                 612            427
                                                                                         -------------   ------------

    Total Assets                                                                         $    300,055    $   300,560
                                                                                         =============   ============

                          Liabilities and Stockholders' Equity
                          ------------------------------------

Liabilities:
 Deposits:
  Noninterest-bearing                                                                    $     43,966    $    44,045
  Interest-bearing                                                                            199,505        200,447
                                                                                         -------------   ------------
    Total deposits                                                                            243,471        244,492
 Long-term borrowed funds                                                                      30,000         30,000
 Accrued interest payable                                                                         754            825
 Accrued expenses and other liabilities                                                         1,761          1,326
                                                                                         -------------   ------------

   Total Liabilities                                                                          275,986        276,643
                                                                                         -------------   ------------

Stockholders' Equity:
 Preferred stock, $1.00 par value, 3,000,000 shares authorized;
  none issued                                                                                       -              -
 Common stock, $1.25 par value, 12,000,000 shares authorized;
  1,395,852 shares issued; 1,267,835 shares outstanding                                         1,745          1,745
 Additional paid-in capital                                                                    10,871         10,871
 Treasury stock, at cost; 128,017 shares                                                       (2,653)        (2,653)
 Retained earnings                                                                             14,553         14,370
 Accumulated other comprehensive loss                                                            (447)          (416)
                                                                                         -------------   ------------

   Total Stockholders' Equity                                                                  24,069         23,917
                                                                                         -------------   ------------

    Total Liabilities and Stockholders' Equity                                           $    300,055    $   300,560
                                                                                         =============   ============
</TABLE>

See accompanying notes to consolidated financial statements.


                                       1
<PAGE>


                     Emclaire Financial Corp. and Subsidiary
                        Consolidated Statements of Income
         For the three months ended March 31, 2007 and 2006 (Unaudited)
              (Dollar amounts in thousands, except per share data)

<TABLE>
<CAPTION>

                                                                                             For the three months ended
                                                                                                      March 31,
                                                                                             ---------------------------
                                                                                                 2007          2006
                                                                                             ------------  -------------

<S>                                                                                          <C>           <C>
Interest and dividend income:
 Loans receivable, including fees                                                            $     3,604   $      3,152
 Securities:
   Taxable                                                                                           364            383
   Exempt from federal income tax                                                                    173            173
 Federal bank stocks                                                                                  50             18
 Deposits with banks                                                                                 121             18
                                                                                             ------------  -------------
  Total interest and dividend income                                                               4,312          3,744
                                                                                             ------------  -------------

Interest expense:
 Deposits                                                                                          1,667          1,314
 Borrowed funds                                                                                      336            168
                                                                                             ------------  -------------
  Total interest expense                                                                           2,003          1,482
                                                                                             ------------  -------------

Net interest income                                                                                2,309          2,262
 Provision for loan losses                                                                            45             31
                                                                                             ------------  -------------

Net interest income after provision for loan losses                                                2,264          2,231
                                                                                             ------------  -------------

Noninterest income:
 Fees and service charges                                                                            326            357
 Commissions on financial services                                                                   162            101
 Gains on securities                                                                                  58            116
 Earnings on bank-owned life insurance (BOLI)                                                         53             50
 Other                                                                                               131            104
                                                                                             ------------  -------------
  Total noninterest income                                                                           730            728
                                                                                             ------------  -------------

Noninterest expense:
 Compensation and employee benefits                                                                1,306          1,307
 Premises and equipment                                                                              400            381
 Intangible amortization expense                                                                       -              3
 Other                                                                                               604            524
                                                                                             ------------  -------------
  Total noninterest expense                                                                        2,310          2,215
                                                                                             ------------  -------------

Income before provision for income taxes                                                             684            744
 Provision for income taxes                                                                          133            159
                                                                                             ------------  -------------

Net income                                                                                   $       551   $        585
                                                                                             ============  =============

 Basic earnings per share                                                                    $      0.43   $       0.46

 Average common shares outstanding                                                             1,267,835      1,267,835

</TABLE>

See accompanying notes to consolidated financial statements.

                                       2
<PAGE>

                     Emclaire Financial Corp. and Subsidiary
                 Condensed Consolidated Statements of Cash Flows
         For the three months ended March 31, 2007 and 2006 (Unaudited)
                          (Dollar amounts in thousands)

<TABLE>
<CAPTION>
                                                                                           For the three months ended
                                                                                                    March 31,
                                                                                         -------------------------------
                                                                                              2007             2006
                                                                                         --------------   --------------

<S>                                                                                      <C>              <C>
Cash flows from operating activities
 Net income                                                                              $         551    $         585
 Adjustments to reconcile net income to net cash provided
  by operating activities:
   Depreciation and amortization of premises and equipment                                         170              182
   Provision for loan losses                                                                        45               31
   Amortization of premiums and accretion of discounts, net                                         (2)              11
   Amortization of intangible assets and mortgage servicing rights                                   4                5
   Realized gain on sale of available for sale securities, net                                     (58)            (116)
   Earnings on bank owned life insurance, net                                                      (47)             (44)
   (Increase) decrease in accrued interest receivable                                             (102)              61
   Increase in prepaid expenses and other assets                                                  (191)             (46)
   Increase (decrease) in accrued interest payable                                                 (71)              21
   Increase in accrued expenses and other liabilities                                              435              127
                                                                                         --------------   --------------
  Net cash provided by operating activities                                                        734              817
                                                                                         --------------   --------------

Cash flows from investing activities
 Loan originations and principal collections, net                                                   52              522
 Proceeds from the sale of loans                                                                   312                -
 Available for sale securities:
    Sales                                                                                          265              202
    Maturities, repayments and calls                                                               126            1,153
    Purchases                                                                                   (5,647)            (107)
 Held to maturity securities:
    Maturities, repayments and calls                                                                 -                1
 Redemption of federal bank stocks                                                                   8              195
 Purchases of premises and equipment                                                              (103)            (610)
                                                                                         --------------   --------------
  Net cash (used in) provided by investing activities                                           (4,987)           1,356
                                                                                         --------------   --------------

Cash flows from financing activities
 Net increase (decrease) in deposits                                                            (1,021)           1,870
 Net decrease in overnight borrowed funds                                                            -           (4,500)
 Dividends paid on common stock                                                                   (368)            (342)
                                                                                         --------------   --------------
  Net cash used in financing activities                                                         (1,389)          (2,972)
                                                                                         --------------   --------------

Net decrease in cash and cash equivalents                                                       (5,642)            (799)
Cash and cash equivalents at beginning of period                                                16,717           10,367
                                                                                         --------------   --------------
Cash and cash equivalents at end of period                                               $      11,075    $       9,568
                                                                                         ==============   ==============

Supplemental information:
 Interest paid                                                                           $       2,074    $       1,461
 Income taxes paid                                                                                   -               10
</TABLE>

See accompanying notes to consolidated financial statements.

                                       3
<PAGE>

                     Emclaire Financial Corp. and Subsidiary
           Consolidated Statements of Changes in Stockholders' Equity
         For the three months ended March 31, 2007 and 2006 (Unaudited)
              (Dollar amounts in thousands, except per share data)

<TABLE>
<CAPTION>
                                                                                            For the three months ended
                                                                                                    March 31,
                                                                                            --------------------------
                                                                                               2007            2006
                                                                                            ----------      ----------

<S>                                                                                         <C>             <C>
Balance at beginning of period                                                              $  23,917       $  23,615

Net income                                                                                        551             585

Other comprehensive income (loss):
 Change in net unrealized gains (losses) on available
 for sale securities, net of taxes                                                                  7            (103)
 Less reclassification adjustment for gains included
 in net income, net of taxes                                                                      (38)            (76)
                                                                                            ----------      ----------
 Other comprehensive loss                                                                         (31)           (179)
                                                                                            ----------      ----------

Total comprehensive income                                                                        520             406

Dividends declared                                                                               (368)           (342)
                                                                                            ----------      ----------

Balance at end of period                                                                    $  24,069       $  23,679
                                                                                            ==========      ==========

Common cash dividend per share                                                              $    0.29       $    0.27
                                                                                            ==========      ==========

</TABLE>

See accompanying notes to consolidated financial statements.

                                       4
<PAGE>

                     Emclaire Financial Corp. and Subsidiary
             Notes to Consolidated Financial Statements (Unaudited)

1.       Nature of Operations and Basis of Presentation.

         Emclaire Financial Corp. (the "Corporation") is a Pennsylvania company
         organized as the holding company of Farmers National Bank of Emlenton
         (the "Bank"). The Corporation provides a variety of financial services
         to individuals and businesses through its offices in western
         Pennsylvania. Its primary deposit products are checking, savings and
         certificate of deposit accounts and its primary lending products are
         residential and commercial mortgages, commercial business and consumer
         loans.

         The consolidated financial statements include the accounts of the
         Corporation and its wholly owned subsidiary, the Bank. All intercompany
         transactions and balances have been eliminated in preparing the
         consolidated financial statements.

         The accompanying unaudited consolidated financial statements for the
         interim periods include all adjustments, consisting of normal recurring
         accruals, which are necessary, in the opinion of management, to fairly
         reflect the Corporation's consolidated financial position and results
         of operations. Additionally, these consolidated financial statements
         for the interim periods have been prepared in accordance with
         instructions for the Securities and Exchange Commission's Form 10-Q and
         therefore do not include all information or footnotes necessary for a
         complete presentation of financial condition, results of operations and
         cash flows in conformity with accounting principles generally accepted
         in the United States of America. For further information, refer to the
         audited consolidated financial statements and footnotes thereto for the
         year ended December 31, 2006, as contained in the Corporation's 2006
         Annual Report to Stockholders.

         The preparation of financial statements, in conformity with accounting
         principles generally accepted in the United States of America, requires
         management to make estimates and assumptions that affect the reported
         amounts in the consolidated financial statements and accompanying
         notes. Actual results could differ from those estimates. Material
         estimates that are particularly susceptible to significant change in
         the near term relate to the determination of the allowance for loan
         losses. The results of operations for interim quarterly or year to date
         periods are not necessarily indicative of the results that may be
         expected for the entire year or any other period. Certain amounts
         previously reported may have been reclassified to conform to the
         current year's financial statement presentation.

2.       Basic Earnings per Common Share.

         The Corporation maintains a simple capital structure with no common
         stock equivalents. Basic earnings per common share is calculated using
         net income divided by the weighted average number of common shares
         outstanding during the period.


                                       5
<PAGE>

3.       Securities.

         The Corporation's securities as of the respective dates are summarized
         as follows:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------

(Dollar amounts in thousands)                                                   Amortized Unrealized Unrealized   Fair
                                                                                  cost      gains      losses    value
------------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>      <C>        <C>        <C>

Available for sale:
-------------------
 March 31, 2007:
  U.S. Government agencies and related entities                                  $31,355  $       -  $    (428) $30,927
  Mortgage-backed securities                                                       2,304          -        (92)   2,212
  Municipal securities                                                            14,689        540          -   15,229
  Corporate securities                                                             5,222          -          -    5,222
  Equity securities                                                                3,606         97       (249)   3,454
                                                                                --------- ---------- ---------- --------
                                                                                 $57,176  $     637  $    (769) $57,044
                                                                                ========= ========== ========== ========
 December 31, 2006:
  U.S. Government agencies and related entities                                  $31,354  $       -  $    (606) $30,748
  Mortgage-backed securities                                                       2,434          -        (95)   2,339
  Municipal securities                                                            14,688        574          -   15,262
  Corporate securities                                                                 -          -          -        -
  Equity securities                                                                3,382        176       (132)   3,425
                                                                                --------- ---------- ---------- --------
                                                                                 $51,858  $     750  $    (833) $51,774
                                                                                ========= ========== ========== ========
</TABLE>

4.       Loans Receivable.

         The Corporation's loans receivable as of the respective dates are
         summarized as follows:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------

(Dollar amounts in thousands)                                                                 March 31,     December 31,
                                                                                                 2007          2006
------------------------------------------------------------------------------------------------------------------------
<S>                                                                                          <C>           <C>
Mortgage loans on real estate:
Residential first mortgages                                                                  $    64,589   $     64,662
Home equity loans and lines of credit                                                             46,225         47,330
Commercial real estate                                                                            62,888         61,128
                                                                                             ------------  -------------
                                                                                                 173,702        173,120
Other loans:
Commercial business                                                                               33,756         34,588
Consumer                                                                                           7,553          7,671
                                                                                             ------------  -------------
                                                                                                  41,309         42,259
                                                                                             ------------  -------------

Total loans, gross                                                                               215,011        215,379

Less allowance for loan losses                                                                     2,078          2,035
                                                                                             ------------  -------------

Total loans, net                                                                             $   212,933   $    213,344
                                                                                             ============  =============
------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       6
<PAGE>

5.       Deposits.

         The Corporation's deposits as of the respective dates are summarized as
         follows:

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------------------

(Dollar amounts in thousands)                                                    March 31, 2007      December 31, 2006
------------------------------------------------------------------------------------------------------------------------

                               Type of accounts                                  Amount       %      Amount        %
-------------------------------------------------------------------------------------------------- ---------------------

<S>                                                                            <C>           <C>   <C>             <C>
Noninterest-bearing deposits                                                   $   43,966    18.1% $  44,045       18.0%
Interest-bearing demand deposits                                                   72,905    29.9%    70,951       29.0%
Time deposits                                                                     126,600    52.0%   129,496       53.0%
                                                                               ----------- ------- ----------   --------

                                                                               $  243,471   100.0% $ 244,492      100.0%
                                                                               =========== ======= ==========   ========
------------------------------------------------------------------------------------------------------------------------
</TABLE>

6.       Guarantees.

         The Corporation does not issue any guarantees that would require
         liability recognition or disclosure, other than its standby letters of
         credit. Standby letters of credit are conditional commitments issued by
         the Corporation to guarantee the performance of a customer to a third
         party. Of these letters of credit at March 31, 2007, $75,000 will
         expire within the next twelve months, $233,000 will automatically renew
         within the next twelve months and $415,000 will automatically renew
         within thirteen to fifty-five months. The Corporation, generally, holds
         collateral and/or personal guarantees supporting these commitments.
         Management believes that the proceeds obtained through a liquidation of
         collateral and the enforcement of guarantees would be sufficient to
         cover the potential amount of future payments required under the
         corresponding guarantees. The credit risk involved in issuing letters
         of credit is essentially the same as those that are involved in
         extending loan facilities to customers. The current amount of the
         liability as of March 31, 2007 for guarantees under standby letters of
         credit issued is not material.

7.       Employee Benefit Plans.

         The Corporation maintains a defined contribution 401(k) Plan. Employees
         are eligible to participate by providing tax-deferred contributions up
         to 20% of qualified compensation. Employee contributions are vested at
         all times. The Corporation provides a matching contribution of up to 4%
         of the participant's salary. Matching contributions for the three
         months ended March 31, 2007 and 2006 amounted to $33,000 and $21,000,
         respectively.

         The Corporation provides pension benefits for eligible employees
         through a defined benefit pension plan. Substantially all employees
         participate in the retirement plan on a non-contributing basis and are
         fully vested after five years of service.

         The Corporation uses December 31 as the measurement date for its plans.

                                       7
<PAGE>


7.       Employee Benefit Plans (continued).

         The components of the periodic pension cost are as follows:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
(Dollar amounts in thousands)                                                              For the three months ended
                                                                                                   March 31,
                                                                                        --------------------------------
                                                                                              2007            2006
------------------------------------------------------------------------------------------------------- ----------------

<S>                                                                                      <C>            <C>
Service cost                                                                             $          57  $            52
Interest cost                                                                                       65               58
Expected return on plan assets                                                                     (77)             (66)
Transition asset                                                                                    (2)              (2)
Prior service costs                                                                                 (8)              (8)
Recognized net actuarial (gain) loss                                                                 7                9
                                                                                        --------------- ----------------

Net periodic pension cost                                                                $          42  $            43
                                                                                        =============== ================
------------------------------------------------------------------------------------------------------------------------
</TABLE>

         The expected rate of return on plan assets was 8.50% for the periods
         ended March 31, 2007 and 2006. The Corporation previously disclosed in
         its financial statements for the year ended December 31, 2006 that it
         expected to contribute $250,000 to its pension plan in 2007. As of
         March 31, 2007, there have been no contributions. The Corporation
         presently anticipates contributing $250,000 to fund its pension plan in
         2007.

8.       Effect of Recently Issued Accounting Standards.

         In July 2006, the FASB issued FASB Interpretation No. 48, Accounting
         for Uncertainty in Income Taxes. The interpretation clarifies the
         accounting for uncertainty in income taxes recognized in a company's
         financial statements in accordance with SFAS 109, Accounting for Income
         Taxes. Specifically, the pronouncement prescribes a recognition
         threshold and a measurement attributable for the financial statement
         recognition and measurement of a tax position taken or expected to be
         taken in a tax return. The interpretation also provides guidance on the
         related derecognition, classification, interest and penalties,
         accounting for interim periods, disclosure and transition of uncertain
         tax positions. The interpretation is effective for fiscal years
         beginning after December 15, 2006. The Corporation adopted FASB
         Interpretation No. 48 as of January 1, 2007. The adoption had no effect
         on the Corporation's financial statements. The Corporation is subject
         to U.S. federal income tax as well as income tax of the state of
         Pennsylvania. The Corporation is no longer subject to examination by
         taxing authorities for years before 2002. The Corporation does not
         expect the total amount of unrecognized tax benefits to significantly
         increase in the next twelve months. The Corporation recognizes interest
         and/or penalties related to income tax matters in income tax expense.
         The Corporation did not have any amounts accrued for interest and
         penalties at January 1, 2007.

         In September 2006, the FASB issued SFAS No. 157, Fair Value
         Measurements (SFAS 157), which defines fair value, establishes a
         framework for measuring fair value under generally accepted accounting
         principles (GAAP), and expands disclosures about fair value
         measurements. SFAS 157 applies to other accounting pronouncements that
         require or permit fair value measurements. The new guidance is
         effective for financial statements issued for fiscal years beginning
         after November 15, 2007, and for interim periods within those fiscal
         years. The Corporation is currently evaluating the potential impact, if
         any, of the adoption of SFAS 157 on its consolidated financial
         statements.

                                       8
<PAGE>

8.       Effect of Recently Issued Accounting Standards (continued).

         In September 2006, FASB's EITF issued EITF Issue No. 06-4, Accounting
         for Deferred Compensation and Postretirement Benefit Aspects of
         Endorsement Split Dollar Life Insurance Arrangements (EITF 06-4). EITF
         06-4 requires the recognition of a liability related to the
         postretirement benefits covered by an endorsement split-dollar life
         insurance arrangement. The consensus highlights that the employer (who
         is also the policyholder) has a liability for the benefit it is
         providing to its employee. As such, if the policyholder has agreed to
         maintain the insurance policy in force for the employee's benefit
         during his or her retirement, then the liability recognized during the
         employee's active service period should be based on the future cost of
         insurance to be incurred during the employee's retirement.
         Alternatively, if the policy holder has agreed to provide the employee
         with a death benefit, then the liability for the future death benefit
         should be recognized by following the guidance in SFAS 106 or
         Accounting Principles Board (APB) Opinion No. 12, as appropriate. For
         transition, an entity can choose to apply the guidance using either of
         the following approaches: (a) a change in accounting principle through
         retrospective application to all periods presented or (b) a change in
         accounting principle through a cumulative-effect adjustment to the
         balance in retained earnings at the beginning of the year of adoption.
         The disclosures are required in fiscal years beginning after December
         15, 2007, with early adoption permitted. The Corporation is currently
         evaluating the impact that the implementation of EITF 06-4 may have on
         its consolidated financial statements.

         In September 2006, FASB's EITF issued EITF Issue No. 06-5 Accounting
         for Purchases of Life Insurance - Determining the Amount That Could Be
         Realized in Accordance with FASB Technical Bulletin No. 85-4,
         Accounting for Purchases of Life Insurance (EITF 06-5), The scope of
         EITF 06-5 consists of six separate issues relating to accounting for
         life insurance policies purchased by entities protecting against the
         loss of key persons. The six issues are clarifications of previously
         issued guidance on FASB Technical Bulletin No. 85-4. EITF 06-5 is
         effective for fiscal years beginning after December 15, 2006. The
         Corporation is currently evaluating the impact that the implementation
         of EITF 06-5 may have on its consolidated financial statements.

         In October 2006, the FASB issued FSP No. 123(R)-5, Amendment of FASB
         Staff Position FAS 123(R)-1 (FSP 123(R)-5). FSP 123(R)-5 amends FSP
         123(R)-1 for equity instruments that were originally issued as employee
         compensation and then modified, with such modification made solely to
         reflect an equity restructuring that occurs when the holders are no
         longer employees. FSP 123(R)-5 is effective for the Corporation January
         1, 2007. The adoption of FSP 123(R)-5 did not have a significant effect
         on the Corporation's consolidated financial statements.

         In February 2007, the FASB issued SFAS No. 159, The Fair Value Option
         for Financial Assets and Financial Liabilities - Including an amendment
         of FASB Statement No. 115 (SFAS 159). SFAS 159 permits entities to
         choose to measure many financial instruments and certain other items at
         fair value. Unrealized gains and losses on items for which the fair
         value option has been elected will be recognized in earnings at each
         subsequent reporting date. SFAS 159 is effective for the Corporation
         January 1, 2008. The Corporation is evaluating the impact that the
         adoption of SFAS 159 will have on its consolidated financial
         statements.

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
--------------------------------------------------------------------------------
         of Operations
         -------------

This section discusses the consolidated financial condition and results of
operations of Emclaire Financial Corp. (the "Corporation") and its wholly owned
subsidiary bank, the Farmers National Bank of Emlenton (the "Bank"), for the
three months ended March 31, 2007 and should be read in conjunction with the
Corporation's December 31, 2006 Annual Report of Form 10-K filed with the
Securities and Exchange Commission and with the accompanying consolidated
financial statements and notes presented on pages 1 through 9 of this Form 10-Q.

The Private Securities Litigation Reform Act of 1995 contains safe harbor
provisions regarding forward-looking statements. When used in this discussion,
the words "believes," "anticipates," "contemplates" and similar expressions are
intended to identify forward-looking statements. Such statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected. Those risks and uncertainties include changes
in interest rates, the ability to control costs and expenses and general
economic conditions. The Corporation does not undertake, and specifically
disclaims any obligation, to update any forward-looking statements to reflect
occurrences or unanticipated events or circumstances after the date of such
statements.

                                       9
<PAGE>

CHANGES IN FINANCIAL CONDITION

Total assets decreased $505,000 to $300.1 million at March 31, 2007 from $300.6
million at December 31, 2006. This decrease resulted from a decrease in cash and
cash equivalents of $5.6 million or 33.8% to $11.1 million at March 31, 2007
from $16.7 million at December 31, 2006, as these funds were utilized in funding
security purchases. Partially offsetting this decrease was an increase in
securities available for sale of $5.3 million or 10.2% to $57.0 million at March
31, 2007 from $51.8 million at December 31, 2006 due to security purchases of
$5.6 million.

Total liabilities decreased $657,000 to $276.0 million at March 31, 2007 from
$276.6 million at December 31, 2006, while total stockholders' equity increased
$152,000 to $24.1 million at March 31, 2007 from $23.9 million at December 31,
2006. The decrease in total liabilities was primarily due to a decrease in
customer deposits of $1.0 million partially offset by an increase in accrued
expenses and other liabilities of $435,000.

RESULTS OF OPERATIONS

Comparison of Results for the Three Month Periods Ended March 31, 2007 and 2006

General. Net income decreased $34,000 or 5.8% to $551,000 for the three months
ended March 31, 2007 from $585,000 for the same period in 2006. This decrease
was a result of increases in noninterest expense and the provision for loan
losses of $95,000 and $14,000, respectively, offset by increases in net interest
income and noninterest income of $47,000 and $2,000, respectively, and a
decrease in the provision for income tax of $26,000.

Net interest income. Net interest income on a tax equivalent basis increased
$45,000 or 1.9% to $2.4 million for the three months ended March 31, 2007. This
net increase can be attributed to an increase in tax equivalent interest income
of $566,000, partially offset by a $521,000 increase in interest expense.

Interest income. Interest income on a tax equivalent basis increased $566,000 or
14.7% to $4.4 million for the three months ended March 31, 2007, compared to
$3.9 million for the same period in the prior year. This increase can be
attributed to increases in interest earned on loans, federal bank stocks, and
interest-earning deposits with banks of $450,000, $32,000 and $103,000,
respectively, offset by a decrease in interest earned on securities of $19,000.

Tax equivalent interest earned on loans receivable increased $450,000 or 14.1%
to $3.6 million for the three months ended March 31, 2007, compared to $3.2
million for the same period in 2006. During that time, average loans increased
$21.7 million or 11.2%, accounting for $364,000 in additional loan interest
income. Additionally, the yield on loans increased 18 basis points to 6.85% for
the three months ended March 31, 2007, versus 6.67% for the same period in 2006,
contributing $86,000 in additional interest income.

Tax equivalent interest earned on securities decreased $19,000 or 3.0% to
$615,000 for the three months ended March 31, 2007, compared to $634,000 for the
same period in 2006. The average volume of securities decreased $3.7 million or
6.7%, primarily as a result of the utilization of these funds for loan growth.
This resulted in a $44,000 decline in interest income. Partially offsetting the
decline was an increase in the average yield on securities of 19 basis points to
4.80% for the three months ended March 31, 2007, versus 4.61% for the same
period in 2006, as a result of certain lower yielding securities maturing. This
favorable yield variance contributed an additional $25,000 to interest income.

Interest earned on interest-earning deposit accounts increased $103,000 to
$121,000 for the three months ended March 31, 2007 from $18,000 for the same
period in 2006. The average volume of these assets increased $7.6 million
primarily as a result of the investment of funds from maturing securities
contributing $97,000 in additional interest income. Additionally, the average
yield on interest-earning deposit accounts increased 109 basis points to 5.23%
for the three months ended March 31, 2007, compared to 4.14% for the same period
in the prior year, contributing $6,000 in additional interest income. The
increase in the average yield reflects the recent increases in short-term
interest rates. Interest earned on federal bank stocks increased $32,000 to
$50,000 for the three month period ended March 31, 2007 from $18,000 for the
same period in the prior year as a result of a higher volume and a higher yield.
The higher yield resulted from the recognition during the first quarter of a
fourth quarter 2006 special dividend on FHLB capital stock.

                                       10
<PAGE>

Interest expense. Interest expense increased $521,000 or 35.2% to $2.0 million
for the three months ended March 31, 2007, compared to $1.5 million for the same
period in the prior year. This increase in interest expense can be attributed to
increases in interest incurred on deposits and borrowed funds of $353,000 and
$168,000, respectively.

Interest expense incurred on deposits increased $353,000 or 26.9% to $1.7
million for the three months ended March 31, 2007, compared to $1.3 million for
the same period in the prior year. This increase was principally rate driven as
the cost of interest-bearing deposits increased 60 basis points to 3.54% for the
three months ended March 31, 2007, compared to 2.94% for the same period in 2006
contributing $269,000 in additional expense. The average volume of deposits
increased $11.6 million or 6.1% to $199.7 million for the three months ended
March 31, 2007, compared to $188.2 million for the same period in 2006
contributing $84,000 in additional expense.

Interest expense incurred on borrowed funds increased $168,000 or 100.0% to
$336,000 for the three months ended March 31, 2007, compared to $168,000 for the
same period in the prior year. This increase in interest expense can be
attributed to the increase in the average balance of borrowed funds of $14.1
million to $30.0 million for the three months ended March 31, 2007, compared to
$15.9 million for the same period in the prior year. This volume increase was
the result of $15.0 million of FHLB term borrowings placed in the second and
third quarters of 2006 contributing $157,000 in additional expense. Such
borrowings were primarily used to fund loan growth.

                                       11
<PAGE>

Average Balance Sheet and Yield/Rate Analysis. The following table sets forth,
for the periods indicated, information concerning the total dollar amounts of
interest income from interest-earning assets and the resulting average yields,
the total dollar amounts of interest expense on interest-bearing liabilities and
the resulting average costs, net interest income, interest rate spread and the
net interest margin earned on average interest-earning assets. For purposes of
this table, average loan balances include non-accrual loans and exclude the
allowance for loan losses and interest income includes accretion of net deferred
loan fees. Interest and yields on tax-exempt loans and securities (tax-exempt
for federal income tax purposes) are shown on a fully tax equivalent basis. The
information is based on average daily balances during the periods presented.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
(Dollar amounts in thousands)                                                  Three months ended March 31,
                                                                   -----------------------------------------------------

                                                                              2007                       2006
                                                                   -------------------------- --------------------------
                                                                                       Yield                      Yield
                                                                    Average              /     Average              /
                                                                    Balance   Interest  Rate   Balance   Interest  Rate
------------------------------------------------------------------------------------------------------------------------
<S>                                                                <C>        <C>       <C>   <C>        <C>       <C>

Interest-earning assets:
------------------------
 Loans, taxable                                                    $208,776   $3,532    6.86% $186,737   $3,077    6.68%
 Loans, tax exempt                                                    6,495      104    6.49%    6,858      109    6.45%
                                                                   ---------  -------         ---------  -------
   Total loans receivable                                           215,271    3,636    6.85%  193,595    3,186    6.67%
                                                                   ---------  -------         ---------  -------

 Securities, taxable                                                 36,758      364    4.02%   40,332      383    3.85%
 Securities, tax exempt                                              15,224      251    6.68%   15,384      251    6.61%
                                                                   ---------  -------         ---------  -------
   Total securities                                                  51,982      615    4.80%   55,716      634    4.61%
                                                                   ---------  -------         ---------  -------

 Interest-earning deposits with banks                                 9,375      121    5.23%    1,763       18    4.14%
 Federal bank stocks                                                  2,209       50    9.18%    1,635       18    4.46%
                                                                   ---------  -------         ---------  -------
   Total interest-earning cash equivalents                           11,584      171    5.99%    3,398       36    4.30%
                                                                   ---------  -------         ---------  -------

 Total interest-earning assets                                      278,837    4,422    6.43%  252,709    3,856    6.19%
   Cash and due from banks                                            6,163                      7,110
   Other noninterest-earning assets                                  14,535                     12,821
                                                                   ---------                  ---------

   Total Assets                                                    $299,535                   $272,640
                                                                   =========                  =========

Interest-bearing liabilities:
-----------------------------
 Interest-bearing demand deposits                                  $ 72,176      233    1.31% $ 73,404      146    0.81%
 Time deposits                                                      127,533    1,434    4.56%  114,755    1,168    4.13%
                                                                   ---------  -------         ---------  -------
   Total interest-bearing deposits                                  199,709    1,667    3.39%  188,159    1,314    2.83%
                                                                   ---------  -------         ---------  -------

 Borrowed funds, short-term                                               -        -    0.00%      941        9    3.88%
 Borrowed funds, long-term                                           30,000      336    4.54%   15,000      159    4.30%
                                                                   ---------  -------         ---------  -------
   Total borrowed funds                                              30,000      336    4.54%   15,941      168    4.27%
                                                                   ---------  -------         ---------  -------

 Total interest-bearing liabilities                                 229,709    2,003    3.54%  204,100    1,482    2.94%
                                                                   ---------  -------         ---------  -------

   Noninterest-bearing demand deposits                               43,368        -       -    42,316        -       -
                                                                   ---------  -------         ---------  -------

   Funding and cost of funds                                        273,077    2,003    2.97%  246,416    1,482    2.44%

   Other noninterest-bearing liabilities                              2,572                      2,613
                                                                   ---------                  ---------

   Total Liabilities                                                275,649                    249,029
   Stockholders' Equity                                              23,886                     23,611
                                                                   ---------                  ---------

   Total Liabilities and Stockholders' Equity                      $299,535                   $272,640
                                                                   =========  -------         =========  -------

Net interest income                                                           $2,419                     $2,374
                                                                              =======                    =======

Interest rate spread (difference between
 weighted average rate on interest-earning
 assets and interest-bearing liabilities)                                               2.89%                      3.24%

Net interest margin (net interest
 income as a percentage of average
 interest-earning assets)                                                               3.52%                      3.81%
------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       12
<PAGE>

Analysis of Changes in Net Interest Income. The following table analyzes the
changes in interest income and interest expense in terms of: (1) changes in
volume of interest-earning assets and interest-bearing liabilities and (2)
changes in yields and rates. The table reflects the extent to which changes in
the Corporation's interest income and interest expense are attributable to
changes in rate (change in rate multiplied by prior year volume), changes in
volume (changes in volume multiplied by prior year rate) and changes
attributable to the combined impact of volume/rate (change in rate multiplied by
change in volume). The changes attributable to the combined impact of
volume/rate are allocated on a consistent basis between the volume and rate
variances. Changes in interest income on loans and securities reflect the
changes in interest income on a fully tax equivalent basis.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------

                                                                                       Three months ended March 31,
                                                                                             2007 versus 2006
                                                                                        Increase (Decrease) due to
                                                                                  --------------------------------------
 (Dollar amounts in thousands)                                                       Volume        Rate        Total
------------------------------------------------------------------------------------------------------------------------
<S>                                                                               <C>           <C>         <C>
 Interest income:
    Loans                                                                         $        364  $       86  $       450
    Securities                                                                             (44)         25          (19)
    Interest-earning deposits with banks                                                    97           6          103
    Federal bank stocks                                                                      8          24           32
                                                                                  ------------- ----------- ------------

    Total interest-earning assets                                                          425         141          566
                                                                                  ------------- ----------- ------------

 Interest expense:
    Deposits                                                                                84         269          353
    Borrowed funds                                                                         157          11          168
                                                                                  ------------- ----------- ------------

    Total interest-bearing liabilities                                                     241         280          521
                                                                                  ------------- ----------- ------------

 Net interest income                                                              $        184  $     (139) $        45
                                                                                  ============= =========== ============

------------------------------------------------------------------------------------------------------------------------
</TABLE>

Provision for loan losses. The Corporation records provisions for loan losses to
maintain a level of total allowance for loan losses that management believes, to
the best of its knowledge, covers all known and inherent losses that are both
probable and reasonably estimable at each reporting date. Management considers
historical loss experience, the present and prospective financial condition of
borrowers, current conditions (particularly as they relate to markets where the
Corporation originates loans), the status of non-performing assets, the
estimated underlying value of the collateral and other factors related to the
collectibility of the loan portfolio.

Information pertaining to the allowance for loan losses and non-performing
assets for the quarters ended March 31, 2007 and 2006 is as follows:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------

                                                                                      For the three months ended:
                                                                                               March 31,
                                                                                     -----------------------------
(Dollar amounts in thousands)                                                             2007           2006
------------------------------------------------------------------------------------------------------------------
<S>                                                                                  <C>            <C>
Balance at the beginning of the period                                               $       2,035  $       1,869
 Provision for loan losses                                                                      45             31
 Charge-offs                                                                                   (15)           (15)
 Recoveries                                                                                     13              6
                                                                                     -------------- --------------
Balance at the end of the period                                                     $       2,078  $       1,891
                                                                                     ============== ==============

Non-performing loans                                                                 $       1,980  $       1,256
Non-performing assets                                                                        1,980          1,352
Non-performing loans to total loans                                                           0.92%          0.65%
Non-performing assets to total assets                                                         0.66%          0.50%
Allowance for loan losses to total loans                                                      0.97%          0.98%
Allowance for loan losses to non-performing loans                                           104.95%        150.56%
------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       13
<PAGE>

The provision for loan losses increased $14,000 or 45.2% to $45,000 for the
three month period ended March 31, 2007 from $31,000 for the same period in the
prior year. Management's evaluation of the loan portfolio, including the
changing composition of the portfolio as well as economic trends, regulatory
considerations and other factors contributed to the recognition of $45,000 in
the provision for loan losses during the three months ended March 31, 2007.

Noninterest income. Noninterest income increased $2,000 to $730,000 during the
three months ended March 31, 2007, compared to $728,000 during the same period
in the prior year. This decrease can be attributed to decreases in customer fees
and service charges and gains on the sale of securities of $31,000 and $58,000,
respectively. Offsetting this decrease in noninterest income were increases in
commissions earned on financial services, earnings on bank-owned life insurance
and other noninterest income of $61,000, $3,000 and $27,000, respectively.

Noninterest expense. Noninterest expense increased $95,000 or 4.3% to $2.3
million during the three months ended March 31, 2007, compared to $2.2 million
during the same period in the prior year. This increase in noninterest expense
can be attributed to increases in premises and equipment and other noninterest
expenses of $19,000 and $80,000, respectively.

Premises and equipment increased $19,000 or 5.0% to $400,000 for the three
months ended March 31, 2007, compared to $381,000 for the same period in the
prior year. This increase can be attributed primarily to the operation of one
additional branch facility opened in November 2006.

Other noninterest expense increased $80,000 or 15.4% to $604,000 during the
three months ended March 31, 2007, compared to $524,000 for the same period in
the prior year. This increase can be attributed primarily to increases in
professional fees relating to operations and compliance consulting needed as a
result of the 2006 reorganization.

Provision for income taxes. The provision for income taxes decreased $26,000 or
16.4% to $133,000 for the three months ended March 31, 2007, compared to
$159,000 for the same period in the prior year due primarily to the decrease in
the effective tax rate to 19.4% in 2007 from 21.4% in 2006 in addition to lower
pre-tax earnings. The difference between the statutory rate of 34% and the
Corporation's effective tax rate is due to tax-exempt income earned on loans,
securities and bank-owned life insurance.

LIQUIDITY

The Corporation's primary sources of funds generally have been deposits obtained
through the offices of the Bank, borrowings from the FHLB and amortization and
prepayments of outstanding loans and maturing securities. During the three
months ended March 31, 2007, the Corporation used its sources of funds primarily
to fund loan originations and security purchases. As of such date, the
Corporation had outstanding loan commitments, including undisbursed loans and
amounts available under credit lines, totaling $23.9 million, and standby
letters of credit totaling $723,000.

At March 31, 2007, time deposits amounted to $126.6 million or 52.0% of the
Corporation's total consolidated deposits, including approximately $60.7 million
of which are scheduled to mature within the next year. Management of the
Corporation believes that it has adequate resources to fund all of its
commitments, that all of its commitments will be funded as required by related
maturity dates and that, based upon past experience and current pricing
policies, it can adjust the rates of time deposits to retain a substantial
portion of maturing liabilities.

Aside from liquidity available from customer deposits or through sales and
maturities of securities, the Corporation has alternative sources of funds such
as a term borrowing capacity from the FHLB and, to a limited and rare extent,
the sale of loans. At March 31, 2007, the Corporation's borrowing capacity with
the FHLB, net of funds borrowed, was $107.0 million.

                                       14
<PAGE>

Management is not aware of any conditions, including any regulatory
recommendations  or requirements,  which would adversely impact its liquidity or
its ability to meet funding needs in the ordinary course of business.

CRITICAL ACCOUNTING POLICIES

Management views critical accounting policies to be those which are highly
dependent on subjective or complex judgments, estimates and assumptions and
where changes in those estimates and assumptions could have a significant impact
on the financial statements. Management currently views the determination of the
allowance for loan losses as a critical accounting policy.

The allowance for loan losses provides for an estimate of probable losses in the
loan portfolio. In determining the appropriate level of the allowance for loan
loss, the loan portfolio is separated into risk-rated and homogeneous pools.
Migration analysis/historical loss rates, adjusted for relevant trends, have
been applied to these pools. Qualitative adjustments are then applied to the
portfolio to allow for quality of lending policies and procedures, national and
local economic and business conditions, changes in the nature and volume of the
portfolio, experience, ability and depth of lending management, changes in the
trends, volumes and severity of past due, non-accrual and classified loans and
loss and recovery trends, quality of the Corporation's loan review system,
concentrations of credit, and external factors. The methodology used to
determine the adequacy of the Corporation's allowance for loan losses is
comprehensive and meets regulatory and accounting industry standards for
assessing the allowance, however, it is still an estimate. Loan losses are
charged against the allowance while recoveries of amounts previously charged-off
are credited to the allowance. Loan loss provisions are charged against current
earnings based on management's periodic evaluation and review of the factors
indicated above.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk
-------------------------------------------------------------------

Market risk for the Corporation consists primarily of interest rate risk
exposure and liquidity risk. Since virtually all of the interest-earning assets
and interest-bearing liabilities are at the Bank, virtually all of the interest
rate risk and liquidity risk lies at the Bank level. The Bank is not subject to
currency exchange risk or commodity price risk, and has no trading portfolio,
and therefore, is not subject to any trading risk. In addition, the Bank does
not participate in hedging transactions such as interest rate swaps and caps.
Changes in interest rates will impact both income and expense recorded and also
the market value of long-term interest-earning assets. Interest rate risk and
liquidity risk management is performed at the Bank level. Although the Bank has
a diversified loan portfolio, loans outstanding to individuals and businesses
depend upon the local economic conditions in the immediate trade area.

One of the primary functions of the Corporation's asset/liability management
committee is to monitor the level to which the balance sheet is subject to
interest rate risk. The goal of the asset/liability committee is to manage the
relationship between interest rate sensitive assets and liabilities, thereby
minimizing the fluctuations in the net interest margin, which achieves
consistent growth of net interest income during periods of changing interest
rates.

Interest rate sensitivity is the result of differences in the amounts and
repricing dates of the Bank's rate sensitive assets and rate sensitive
liabilities. These differences, or interest rate repricing "gap", provide an
indication of the extent that the Corporation's net interest income is affected
by future changes in interest rates. A gap is considered positive when the
amount of interest rate-sensitive assets exceeds the amount of interest
rate-sensitive liabilities and is considered negative when the amount of
interest rate-sensitive liabilities exceeds the amount of interest
rate-sensitive assets. Generally, during a period of rising interest rates, a
negative gap would adversely affect net interest income while a positive gap
would result in an increase in net interest income. Conversely, during a period
of falling interest rates, a negative gap would result in an increase in net
interest income and a positive gap would adversely affect net interest income.
The closer to zero that gap is maintained, generally, the lesser the impact of
market interest rate changes on net interest income.

                                       15
<PAGE>

Based on certain assumptions provided by a federal regulatory agency, which
management believes most accurately represents the sensitivity of the
Corporation's assets and liabilities to interest rate changes, at March 31,
2007, the Corporation's interest-earning assets maturing or repricing within one
year totaled $83.0 million while the Corporation's interest-bearing liabilities
maturing or repricing within one-year totaled $90.8 million, providing an excess
of interest-bearing liabilities over interest-earning assets of $7.8 million or
a negative 2.6% of total assets. At March 31, 2007, the percentage of the
Corporation's assets to liabilities maturing or repricing within one year was
91.4%.

For more information, see "Market Risk Management" in Exhibit 13 to the
Corporation's Annual Report on Form 10-K for the year ended December 31, 2006.

Item 4. Controls and Procedures
-------------------------------

The Corporation maintains disclosure controls and procedures that are
designed  to  ensure  that   information   required  to  be   disclosed  in  the
Corporation's  Exchange  Act  reports is  recorded,  processed,  summarized  and
reported  within the time periods  specified  in the SEC's rules and forms,  and
that such  information  is accumulated  and  communicated  to the  Corporation's
management,  including its Chief Executive Officer and Chief Financial  Officer,
as appropriate,  to allow timely decisions  regarding required  disclosure based
closely on the  definition  of  "disclosure  controls  and  procedures"  in Rule
13a-15(e).

There has been no change made in the Corporation's internal control over
financial reporting during the period covered by this report that has materially
affected,  or is  reasonably  likely to  materially  affect,  the  Corporation's
internal control over financial reporting.

As of the quarter ended March 31, 2007, the Corporation carried out an
evaluation,   under  the   supervision  and  with  the   participation   of  the
Corporation's  management,  including the Corporation's  Chief Executive Officer
and Chief Financial Officer, of the effectiveness of the design and operation of
the Corporation's  disclosure  controls and procedures.  Based on the foregoing,
the Corporation's  Chief Executive Officer and Chief Financial Officer concluded
that the Corporation's disclosure controls and procedures were effective.  There
have been no significant  changes in the  Corporation's  internal controls or in
other factors that could  significantly  affect the internal controls subsequent
to the date the Corporation completed its evaluation.

PART II - OTHER INFORMATION
---------------------------

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

The Corporation is involved in various legal proceedings occurring in the
ordinary course of business. It is the opinion of management, after consultation
with legal counsel, that these matters will not materially effect the
Corporation's consolidated financial position or results of operations.

Item 1A.  Risk Factors
----------------------

There have been no material changes in the Corporation's risk factors from those
previously disclosed in the 2006 Form 10-K.

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

None.

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

None.

                                       16
<PAGE>

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

None.

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

(a) Not applicable.

(b) Not applicable.

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

Exhibit 31.1 Rule 13a-14(a) Certification of Chief Executive Officer
Exhibit 31.2 Rule 13a-14(a) Certification of Chief Financial Officer
Exhibit 32.1 CEO Certification Pursuant to 18 U.S.C. Section 1350
Exhibit 32.2 CFO Certification Pursuant to 18 U.S.C. Section 1350

                                       17
<PAGE>

Signatures
----------

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


EMCLAIRE FINANCIAL CORP. AND SUBSIDIARY



Date:  May 10, 2007       By:      /s/ David L. Cox
                          -----------------------------------------------------
                          David L. Cox
                          Chairman of the Board,
                          President and Chief Executive Officer

Date:  May 10, 2007       By:      /s/ William C. Marsh
                          -----------------------------------------------------
                          William C. Marsh
                          Executive Vice President,
                          Chief Financial Officer and Treasurer

                                       18