<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

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

     For the quarter ended June 30, 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 000-32605

                               NEFFS BANCORP, INC.
             (Exact name of registrant as specified in its charter)

<TABLE>
<S>                                                 <C>
          Pennsylvania                                       23-2400383
(State or other jurisdiction of                     (IRS Employer Identification
 incorporation or organization)                                 No.)
</TABLE>

              5629 PA Route 873, P.O. Box 10, Neffs, PA l8065-0010
                    (Address of principal executive offices)

                                 (610) 767-3875
                           (Issuer's telephone number)

     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 past 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. See definition of "accelerated
filer and large accelerated filer" in Rule 12-b-2 of the Exchange Act. (Check
one):

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
                                     ---    ---

As of June 30, 2007, 197,941 shares of common stock, par value of $1.00 were
outstanding.


                                       1
<PAGE>

                               NEFFS BANCORP, INC.

                                      INDEX

<TABLE>
<S>                                                                           <C>
PART I.    FINANCIAL INFORMATION

Item 1.    Consolidated Financial Statements

           Consolidated Statements of Financial Condition (Unaudited)
           June 30, 2007 and December 31, 2006.............................    3

           Consolidated Statements of Income (Unaudited)
           Three months ended June 30, 2007 and June 30, 2006
           Six months ended June 30, 2007 and June 30, 2006................    4

           Consolidated Statements of Stockholders' Equity (Unaudited)
           Six months ended June 30, 2007 and June 30, 2006................    5

           Consolidated Statements of Cash Flows (Unaudited)
           Six months ended June 30, 2007 and June 30, 2006................    6

           Notes to the Interim Consolidated Financial Statements
           (Unaudited).....................................................    7

Item 2.    Management's Discussion and Analysis of Financial Condition
           and Results of Operations.......................................   10

Item 3.    Quantitative and Qualitative Disclosures about Market Risk......   19

Item 4.    Controls and Procedures.........................................   19

PART II.   OTHER INFORMATION

Item 1.    Legal Proceedings...............................................   20

Item 1A.   Risk Factors....................................................   20

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.....   20

Item 3.    Defaults Upon Senior Securities.................................   20

Item 4.    Submission of Matters to a Vote of Security Holders.............   20

Item 5.    Other Information...............................................   21

Item 6.    Exhibits........................................................   21

SIGNATURES.................................................................   22
</TABLE>


                                        2
<PAGE>

                        NEFFS BANCORP, INC AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                              June 30,   December 31,
Dollars in thousands, except share data                         2007         2006
                                                              --------   ------------
<S>                                                           <C>        <C>
                          ASSETS

Cash and due from banks                                       $  2,637     $  2,201
Interest bearing deposits with banks                               194          144
Federal funds sold                                                 616           --
Securities available for sale                                   34,872       36,705
Securities held to maturity, market value
   $85,493 in 2007;$84,561 in 2006                              86,094       84,308
Loans                                                           92,202       88,071
   Less allowance for loan losses                                 (645)        (653)
                                                              --------     --------
            Net loans                                           91,557       87,418
                                                              --------     --------
Premises and equipment, net                                      2,438        2,505
Other assets                                                     2,867        2,595
                                                              --------     --------
            Total assets                                      $221,275     $215,876
                                                              ========     ========

           LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
   Deposits
         Non-interest bearing                                 $ 17,854     $ 17,554
         Interest bearing                                      160,257      155,547
                                                              --------     --------
            Total deposits                                     178,111      173,101
   Federal funds purchased                                          --          357
      Other liabilities                                          1,188        1,196
                                                              --------     --------
            Total liabilities                                  179,299      174,654
                                                              --------     --------
Stockholders' Equity
   Common stock, $1 par value, authorized 2,500,000 shares;
      issued 200,000 shares; outstanding 197,941 shares            200          200
      Paid-in capital                                              753          753
      Retained earnings                                         42,551       41,634
      Accumulated other comprehensive loss                      (1,110)        (947)
      Treasury stock, at cost 2,059 shares                        (418)        (418)
                                                              --------     --------
            Total stockholders' equity                          41,976       41,222
                                                              --------     --------
            Total liabilities and stockholders' equity        $221,275     $215,876
                                                              ========     ========
</TABLE>

See Notes to Consolidated Financial Statements.


                                        3

<PAGE>

                        NEFFS BANCORP, INC AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                 Three Months Ended     Six Months Ended
                                                      June 30,              June 30,
                                                -------------------   -------------------
Dollars in thousands,except per share data        2007       2006       2007       2006
                                                --------   --------   --------   --------
<S>                                             <C>        <C>        <C>        <C>
Interest income:
   Interest and fees on loans                   $  1,484   $  1,327   $  2,905   $  2,631
   Interest and dividends on investments:
         Taxable                                     992        869      1,960      1,724
         Exempt from federal income taxes            456        500        929      1,005
   Interest on federal funds sold and other           19         11         35         29
                                                --------   --------   --------   --------
            Total interest income                  2,951      2,707      5,829      5,389
                                                --------   --------   --------   --------
Interest Expense
      Deposits                                     1,504      1,231      2,974      2,443
      Borrowings                                       1          2          1          2
                                                --------   --------   --------   --------
            Total interest expense                 1,505      1,233      2,975      2,445
                                                --------   --------   --------   --------
            Net interest income                    1,446      1,474      2,854      2,944
                                                --------   --------   --------   --------
Other income:
   Service charges on deposit accounts                33         35         64         74
   Other service charges and fees                     22         10         44         36
   Other income                                       13          6         22         16
                                                --------   --------   --------   --------
            Total other income                        68         51        130        126
                                                --------   --------   --------   --------
Other expenses:
   Salaries and employee benefits                    342        338        688        695
   Occupancy                                          37         37         70         71
   Furniture and equipment                            65         75        132        150
   Pennsylvania shares tax                           101         95        202        190
   Other expenses                                    187        190        357        343
                                                --------   --------   --------   --------
            Total other expenses                     732        735      1,449      1,449
                                                --------   --------   --------   --------
            Income before income taxes               782        790      1,535      1,621
Income tax expense                                   117        107        222        224
                                                --------   --------   --------   --------
            Net income                          $    665   $    683   $  1,313   $  1,397
                                                ========   ========   ========   ========
Per share data:
   Earnings per share, basic                    $   3.36   $   3.45   $   6.63   $   7.06
                                                ========   ========   ========   ========
   Weighted average common shares outstanding    197,941    197,941    197,941    197,941
                                                ========   ========   ========   ========
   Cash dividends declared per share            $     --   $     --   $   2.00   $   2.00
                                                ========   ========   ========   ========
</TABLE>

See Notes to Consolidated Financial Statements.


                                        4

<PAGE>

                        NEFFS BANCORP, INC AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                     Six Months Ended June 30, 2006 and 2007
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                Accumulated
                                                                                   Other                      Total
                                                 Common   Paid-In   Retained   Comprehensive   Treasury   Stockholders'
Dollars in thousands                              Stock   Capital   Earnings        loss         Stock        Equity
                                                 ------   -------   --------   -------------   --------   -------------
<S>                                              <C>      <C>       <C>        <C>             <C>        <C>
Balance, December 31, 2005                        $200      $753     $39,603      $  (844)      $(418)       $39,294
   Comprehensive Income:
      Net income                                    --        --       1,397           --          --          1,397

      Change in unrealized net gains/(losses)
         on securities available for sale, net
         of tax                                     --        --          --         (613)         --           (613)
                                                                                                             -------
         Total comprehensive income                                                                              784
                                                                                                             -------
   Cash dividends declared on common
      stock, $2.00 per share                        --        --        (396)          --          --           (396)
                                                  ----      ----     -------      -------       -----        -------
Balance, June 30, 2006                            $200      $753     $40,604      $(1,457)      $(418)       $39,682
                                                  ====      ====     =======      =======       =====        =======
</TABLE>

<TABLE>
<CAPTION>
                                                                                Accumulated
                                                                                   Other                      Total
                                                 Common   Paid-In   Retained   Comprehensive   Treasury   Stockholders'
Dollars in thousands                              Stock   Capital   Earnings        Loss         Stock        Equity
                                                 ------   -------   --------   -------------   --------   -------------
<S>                                              <C>      <C>       <C>        <C>             <C>        <C>
Balance, December 31, 2006                        $200      $753     $41,634      $  (947)      $(418)       $41,222
   Comprehensive Income:
      Net income                                    --        --       1,313           --          --          1,313
      Change in unrealized net gains/(losses)
         on securities available for sale, net
         of tax                                     --        --          --         (163)         --           (163)
                                                                                                             -------
         Total comprehensive income                                                                            1,150
                                                                                                             -------
   Cash dividends declared on common
      stock, $2.00 per share                        --        --        (396)          --          --           (396)
                                                  ----      ----     -------      -------       -----        -------
Balance, June 30, 2007                            $200      $753     $42,551      $(1,110)      $(418)       $41,976
                                                  ====      ====     =======      =======       =====        =======
</TABLE>

See Notes to Consolidated Financial Statements.


                                        5

<PAGE>

                        NEFFS BANCORP, INC AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
Dollars in thousands
Six Months Ended June 30,                                     2007      2006
                                                            -------   -------
<S>                                                         <C>       <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net income                                               $ 1,313   $ 1,397
   Adjustments to reconcile net income to net cash
      provided by operating activities:
      Depreciation                                               98       101
      Net (accretion) amortization of securities                (15)       72
         premiums/discounts
      Change in assets and liabilities:
         Increase in:
            Accrued interest receivable                         (53)      (54)
            Other assets                                       (135)     (257)
         Increase(decrease) in:
            Other liabilities                                    (8)        2
                                                            -------   -------
         Net cash provided by operating activities            1,200     1,261
                                                            -------   -------
CASH FLOWS FROM INVESTING ACTIVITIES
   Net (increase) decrease in interest bearing
      deposits with banks                                       (50)       49
   Net (increase) decrease in federal funds sold               (616)    2,348
   Purchase of securities available for sale                 (1,925)   (1,308)
   Proceeds from maturities/calls and principal
      repayments of securities available for sale             3,471     3,512
   Purchase of securities held to maturity                   (5,487)   (3,229)
   Proceeds from maturities/calls and principal
      repayments of securities held to maturity               3,756     1,932
   Net increase  in loans                                    (4,139)   (3,133)
   Purchases of premises and equipment                          (31)     (150)
                                                            -------   -------
      Net cash provided by (used in) investing activities    (5,021)       21
                                                            -------   -------
CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase (decrease)  in deposits                       5,010    (2,335)
   Net increase (decrease) in federal funds purchased          (357)    1,015
   Dividends paid                                              (396)     (396)
                                                            -------   -------
      Net cash provided by (used in) financing activities     4,257    (1,716)
                                                            -------   -------
      Increase (decrease) in cash and cash equivalents          436      (434)
Cash and cash equivalents:
   Beginning                                                  2,201     2,958
                                                            -------   -------
   Ending                                                   $ 2,637   $ 2,524
                                                            =======   =======
Supplementary Cash Flows Information
   Interest Paid                                            $ 2,890   $ 2,391
                                                            =======   =======
   Income Taxes Paid                                        $   267   $   233
                                                            =======   =======
</TABLE>

See Notes to Consolidated Financial Statements.


                                        6
<PAGE>

                               NEFFS BANCORP, INC.
             NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2007
                                   (UNAUDITED)

NOTE 1. BASIS OF PRESENTATION

The consolidated financial statements include the accounts of Neffs Bancorp,
Inc. (the "Corporation") and its wholly owned subsidiary, The Neffs National
Bank (the "Bank"). All material intercompany accounts and transactions have been
eliminated in consolidation.

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles in the United States
of America and the rules and regulations of the Securities & Exchange Commission
("SEC") for interim financial information. Accordingly, they do not include all
of the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments considered necessary for a fair presentation have been included and
are of a normal, recurring nature. Operating results for the six-month period
ended June 30, 2007, are not necessarily indicative of the results that may be
expected for the year ending December 3l, 2007. These statements should be read
in conjunction with notes to the financial statements contained in the 2006
Annual Report to Stockholders.

For further information, refer to the financial statements and footnotes thereto
included in the Neffs Bancorp, Inc. Annual Report for the year ended December
31, 2006.

NOTE 2. COMMITMENTS AND CONTINGENCIES

The Corporation is subject to certain routine legal proceedings and claims
arising in the ordinary course of business. It is management's opinion that the
ultimate resolution of these claims will not have a material adverse effect on
the Corporation's financial position or results of operations.

NOTE 3. COMPREHENSIVE INCOME

The components of other comprehensive income and related tax effects for the
three months and six months ended June 30, 2007 and 2006 are as follows:

<TABLE>
<CAPTION>
                                                 Three Months      Six Months
                                                Ended June 30,   Ended June 30,
                                                --------------   --------------
Dollars in thousands                              2007    2006     2007    2006
                                                 -----   -----    -----   -----
<S>                                             <C>      <C>     <C>      <C>
Unrealized holding gains (losses) on
   available for sale securities                 $(492)  $(352)   $(247)  $(929)
Tax effect                                         167     120       84     316
                                                 -----   -----    -----   -----
Other comprehensive income (loss), net of tax    $(325)  $(232)   $(163)  $(613)
                                                 =====   =====    =====   =====
</TABLE>


                                       7

<PAGE>

NOTE 4. EARNINGS PER SHARE

Earnings per share is based on the weighted average shares of common stock
outstanding during each period. The Corporation currently maintains a simple
capital structure and does not issue potentially dilutive securities; thus there
are no dilutive effects on earnings per share.

NOTE 5. 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 written are conditional commitments issued by the Corporation
to guarantee the performance of a customer to a third party. Generally, all
letters of credit when issued have expiration dates within one year. 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 Corporation,
generally, holds collateral and/or personal guarantees supporting these
commitments. The Corporation has $706,000 of standby letters of credit as of
June 30, 2007. 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 payment required under the corresponding
guarantees. The current amount of the liability as of June 30, 2007 for
guarantees under standby letters of credit issued is not material.

NOTE 6. NEW ACCOUNTING STANDARDS

In May 2007, the FASB issued FASB Staff Position ("FSP") FIN 48-1 "Definition of
Settlement in FASB Interpretation No. 48" (FSP FIN 48-1). FSP FIN 48-1 provides
guidance on how to determine whether a tax position is effectively settled for
the purpose of recognizing previously unrecognized tax benefits. FSP FIN 48-1 is
effective retroactively to January 1, 2007. The implementation of this standard
did not have a material impact on our consolidated financial position or results
of operations.

In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid
Financial Instruments". SFAS No. 155 amends FASB Statement No. 133 and FASB
Statement No. 140, and improves the financial reporting of certain hybrid
financial instruments by requiring more consistent accounting that eliminates
exemptions and provides a means to simplify the accounting for these
instruments. Specifically, SFAS No. 155 allows financial instruments that have
embedded derivatives to be accounted for as a whole (eliminating the need to
bifurcate the derivative from its host) if the holder elects to account for the
whole instrument on a fair value basis. SFAS No. 155 is effective for all
financial instruments acquired or issued after the beginning of an entity's
first fiscal year that begins after September 15, 2006. The Corporation was
required to adopt the provisions of SFAS No. 155, as applicable, beginning in
fiscal year 2007. The adoption of SFAS No. 155 had no impact on the
Corporation's financial position and results of operations.

In March 2006, the FASB issued SFAS No. 156, "Accounting for Servicing of
Financial Assets -- An Amendment of FASB Statement No. 140" ("SFAS 156"). SFAS
156 requires that all separately recognized servicing assets and servicing
liabilities be initially measured at


                                       8

<PAGE>

fair value, if practicable. The statement permits, but does not require, the
subsequent measurement of servicing assets and servicing liabilities at fair
value. SFAS 156 is effective as of the beginning of an entity's first fiscal
year that begins after September 15, 2006, which for the Corporation was as of
the beginning of fiscal 2007. The adoption of SFAS 156 did not have any effect
on the Corporation's financial statements.

In July 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes-an
interpretation of FASB Statement No. 109" (FIN 48)), which clarifies the
accounting for uncertainty in tax positions. This Interpretation requires that
companies recognize in their financial statements the impact of a tax position,
if that position is more likely that not of being sustained on audit, based on
the technical merits of the position. The provisions of FIN 48 are effective for
fiscal years beginning after December 15, 2006, with the cumulative effect of
the change in accounting principle recorded as an adjustment to opening retained
earnings. There was no impact of adopting FIN 48 on the Corporation's financial
statements.

In September 2006, the FASB issued Statement No. 157, Fair Value Measurements,
which defines fair value, establishes a framework for measuring fair value under
GAAP, and expands disclosures about 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. We are
currently evaluating the potential impact, if any, of the adoption of FASB
Statement No. 157 on our consolidated financial position, results of operations
and cash flows.

In September 2006, the FASB issued FASB Staff Position AUG AIR-1, "Accounting
for Planned Major Maintenance Activities" which is effective for fiscal years
beginning after December 15, 2006. This position statement eliminates the
accrue-in-advance method of accounting for planned major maintenance activities.
The adoption of this pronouncement did not have an impact on the determination
or reporting of our financial results.

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 No. 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 No. 159 is
effective for our Corporation January 1, 2008. The Corporation is evaluating the
impact that the adoption of SFAS No. 159 will have on our consolidated financial
statements.


                                       9

<PAGE>

Item 2.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

Management's Discussion and Analysis of Financial Condition and Results of
Operations analyzes the major elements of the Corporation's balance sheets and
statements of income. This section should be read in conjunction with the
Corporation's financial statements and accompanying notes.

Management of the Corporation has made forward-looking statements in this Form
10-Q. These forward-looking statements may be subject to risks and
uncertainties. Forward-looking statements include the information concerning
possible or assumed future results of operations of the Corporation and its
subsidiary. When words such as "believes," "expects," "anticipates" or similar
expressions occur in this Form 10-Q, management is making forward-looking
statements.

Readers should note that many factors, some of which are discussed elsewhere in
this report and in the documents that management incorporates by reference,
could affect the future financial results of the Corporation and its subsidiary,
both individually and collectively, and could cause those results to differ
materially from those expressed in the forward-looking statements contained or
incorporated by reference in this Form 10-Q. These factors include the
following:

-    operating, legal and regulatory risks;

-    economic, political and competitive forces affecting banking, securities,
     asset management and credit services businesses; and

-    the risk that management's analyses of these risks and forces could be
     incorrect and/or that the strategies developed to address them could be
     unsuccessful.

The Corporation undertakes no obligation to publicly revise or update these
forward-looking statements to reflect events or circumstances that arise after
the date of this report. Readers should carefully review the risk factors
described in other documents that the Corporation files periodically with the
Securities and Exchange Commission.

CRITICAL ACCOUNTING POLICIES

Disclosure of the Corporation's significant accounting policies is included in
Note 1 to the financial statements of the Corporation's Annual Report on Form
10-K for the year ended December 31, 2006. Some of these policies are
particularly sensitive, requiring significant judgments, estimates and
assumptions to be made by management, most particularly in connection with
determining the provision for loan losses and the appropriate level of the
allowance for loan losses. Additional information is contained in this Form 10-Q
on page 12 under the paragraph titled "Provision for Loan Losses" and on page 15
under the paragraphs titled "Loan and Asset Quality and Allowance for Loan
Losses".


                                       10

<PAGE>

OVERVIEW

Net income for the second quarter of 2007 decreased 2.6% to $665,000 as compared
to $683,000 for the second quarter of 2006 as total revenues increased 9.5% from
$2.8 million to $3.0 million for the quarter and total expenses increased 13.7%
from $2.0 million to $2.2 million. Net income per common share decreased 2.6% to
$3.36 per share from $3.45 per share in the second quarter a year ago. At June
30, 2007, the Corporation had total assets of $221.3 million, total loans of
$92.2 million, and total deposits of $178.1 million.

RESULTS OF OPERATIONS

AVERAGE BALANCES AND AVERAGE INTEREST RATES

Interest earning assets averaged $214.3 million for the second quarter of 2007
as compared to $205.8 million for the same period in 2006. The growth in
interest earning assets was mainly the result of an increase of $6.4 million in
average total loans and an increase of $1.3 million in investments. Average
interest-bearing liabilities increased from $154.9 million during the second
quarter of 2006 to $160.5 million during the second quarter of 2007. The
increase in average interest bearing liabilities was the result of an $11.3
million increase in time deposits offset by decreases in savings, demand
deposits and Federal funds purchased of $4.2 million, $1.2 million, and
$201,000, respectively.

The average yield on earning assets was 5.5% for the second quarter of 2007 as
compared to 5.3% for the same quarter in 2006. The average rate paid on
interest-bearing liabilities was 3.8% for the second quarter of 2007 and 3.2%
for the second quarter of 2006, an increase of 60 basis points. This was the
result of the increasing interest rate environment that was experienced during
2006 and into 2007 and the continued shift of funds from lower to higher cost
interest bearing liabilities.

NET INTEREST INCOME AND NET INTEREST MARGIN

Net interest income is the difference between interest income earned on assets
and interest expense incurred on liabilities used to fund those assets. Interest
earning assets primarily include loans, securities and Federal Funds Sold.
Liabilities used to fund such assets include deposits and borrowed funds.
Changes in net interest income and margin result from the interaction between
the volume and composition of earning assets, related yields and associated
funding costs.

Interest income for the second quarter of 2007 increased by $244,000 or 9.0%
over the second quarter of 2006. The increase in interest income is attributed
to the slight rise in interest rates on the Bank's loan and securities
portfolios and the increase in average earning assets. Interest expense for the
second quarter of 2007 increased by $272,000 or 22.1% compared to the second
quarter of 2006. The increase was due to the continued increase in rates being
offered and paid on interest bearing deposits, mainly certificates of deposits
and the shift of funds from lower cost savings accounts to higher cost
certificates of deposit.

Net interest income for the second quarter of 2007 decreased by $28,000 or 1.9%
over the second quarter of 2006. As marketplace rates increased slightly on
loans and securities, the cost of interest bearing accounts increased
significantly higher. Net income for the second quarter of 2007 was affected by
those increasing rate adjustments.


                                       11

<PAGE>

For the six months ended June 30, 2007, interest income increased by $440,000 or
8.2% over the same period in 2006. The increase for the first six months was
mostly related to the increasing interest rates on loan products and securities
purchased. Interest earning assets for the first six months of 2007 averaged
$213.3 million versus $206.0 million for the comparable period in 2006. The
yield on those assets increased from 5.2% for the first six month of 2006 to
5.5% for the same period in 2007.

Interest expense for the first six months of 2007 increased $530,000 or 21.7% as
compared to the first six months of 2006. The level of average interest-bearing
liabilities increased from $155.2 million for the first half of 2006 to $160.0
million for the first six months of 2007. The average rate paid for the first
half of 2007 was 3.7% as compared to 3.2% for the first half of 2006.

Net interest income for the first six months of 2007 decreased by $90,000 or
3.1% over the same period in 2006. The company's net interest margin decreased
to 2.7% for the six months ended June 30, 2007 from 2.9% for the same period
last year. Net interest margin represents the difference between interest
income, including net loan fees earned, and interest expense, reflected as a
percentage of average earning assets. During the first half of 2007, yields on
earning assets increased to 5.5% as compared to 5.3% for the first half of 2006.
Rates paid on interest bearing deposits increased to 3.8%, as compared to 3.2%,
for the first six months of 2006.

PROVISION FOR LOAN LOSSES

Based on historical and projected loss trends, no provision for loan losses was
made for the second quarter of 2007 or 2006. Management concluded that the
allowance for loan losses had an adequate balance to justify no provision for
these quarters.

For six months ending June 30, 2007 and 2006, there was no provision for loan
losses. Based on historical and projected loss trends, management concluded that
the allowance for loan loss had an adequate balance to justify no provision for
the first six months of 2007 and 2006.

NON-INTEREST INCOME

Non-interest income for the second quarter of 2007 increased by $17,000 or 33.3%
from the same period in 2006 due mainly to a negative adjustment for credit
insurance commissions. Non-interest income for the first six months of 2007
increased by $4,000 or 3.2% from the same period in 2006.

NON-INTEREST EXPENSE

For the second quarter of 2007, non-interest expenses decreased by $3,000 or
0.4% to $732,000, compared to $735,000 over the same period in 2006. This
decrease is primarily the result of a decrease in furniture and equipment
expense offset by an increase in salaries/employee benefits and Pennsylvania
shares tax.

Salary expenses and employee benefits, which represent the largest component,
46.7%, of non-interest expenses, increased by $4,000 or 1.2% for the second
quarter of 2007.


                                       12

<PAGE>

Occupancy and furniture/equipment expense for the second quarter of 2007
decreased by $10,000 or 8.9% as compared to the second quarter of 2006, due
mainly to improved expense control by management.

Shares tax increased from $95,000 to $101,000 from the second quarter of 2006 to
the second quarter of 2007.

Other expenses decreased by $3,000 or 1.6% throughout the second quarter of 2007
as compared to the second quarter of 2006.

Total non-interest expense remained at $1.4 million for the first six months of
2006 and 2007.

Salary expenses and employee benefits, which represent the largest component,
47.0%, of non-interest expenses, decreased by $7,000 or 1.0% over the first six
months of 2006.

Occupancy and furniture/equipment expenses for the first six months of 2007
decreased by $19,000 or 8.6% as compared to the first six months of 2006. This
is due to improved expense control by management.

Shares tax expense increased by $12,000 or 6.3% for the first six months of 2007
from the same period in 2006. This increase was mainly due to continued capital
growth.

Net other expenses increased by $14,000 or 4.1% for the first six months ended
June 30, 2007 over the first half of 2006. This increase was mainly due to
increased legal, audit and examination fees in 2007.

One key measure used to monitor progress in controlling overhead expenses is the
ratio of net non-interest expense to average assets. Net non-interest expenses
equal noninterest expenses (excluding foreclosed real estate expenses) less
non-interest income (exclusive of nonrecurring gains), divided by average
assets. This annualized ratio was 1.21% for the three months ended June 30,
2007, lower than the 1.30% for the three months ended June 30, 2006. It was
1.21% for the first six months of 2007, compared to 1.25% for the same period
one year ago.

Another productivity measure is the operating efficiency ratio. This ratio
expresses the relationship of non-interest expenses (excluding foreclosed real
estate expenses) to net interest income plus noninterest income (excluding
nonrecurring gains). For the quarter ended June 30, 2007, the operating
efficiency ratio was 48.4%, which increased over the 48.2% for the same period
in 2006. For the six months ended June 30, 2007, this ratio was 48.6% compared
to 47.2% for the six months ended June 30, 2006. The increases were due in part
to decrease in net interest income.

PROVISION FOR FEDERAL INCOME TAXES

The provision for federal income taxes was $117,000 for the second quarter of
2007, as compared to $107,000 for the same period in 2006. For six months ended
June 30, the provision was $222,000 and $224,000 for 2007 and 2006,
respectively. The effective tax rate, which is the ratio of income tax expense
to income before income taxes, was 15.0% for the second quarter of 2007 and
13.5% for the second quarter of 2006. The effective tax rate


                                       13

<PAGE>

for the first six months of 2007 and 2006 was 14.5% and 13.8%, respectively. The
effective tax rate is lower than the statutory rate of 34% due to tax-exempt
interest income on securities.

NET INCOME

Net income for the second quarter of 2007 was $665,000, a decrease of $18,000 or
2.6% from the $683,000 recorded in the second quarter of 2006.

Net income for the first six months of 2007 decreased by $84,000 or 6.0% as
compared to June 30, 2006. This was mainly due to decreased net interest income.

RETURN ON AVERAGE ASSETS

Return on average assets (ROA) measures the Corporation's net income in relation
to its total average assets. The Corporation's annualized ROA for the second
quarter of 2007 declined to 1.2% from 1.3% in the second quarter of 2006. The
ROA for the first six months of 2007 also declined to 1.2% from 1.3% in the same
period for 2006.

RETURN ON AVERAGE EQUITY

Return on average equity (ROE) indicates how effectively the Corporation can
generate net income on the capital invested by its stockholders. ROE is
calculated by dividing net income by average stockholders' equity. For purposes
of calculating ROE, average stockholders' equity includes the effect of
unrealized gains or losses, net of income taxes, on securities available for
sale. The annualized ROE for the second quarter of 2007 was 6.4% as compared to
6.9% for the second quarter of 2006. The ROE for the first six months of 2007
was 6.3% as compared to 7.1% for the same period of 2006.

FINANCIAL CONDITION

SECURITIES

During the first six months of 2007 securities available for sale decreased by
$1.8 million from $36.7 million as of December 31, 2006 to $34.9 million as of
June 30, 2007. This decrease was due mainly to the payments received on mortgage
backed securities.

The securities available for sale portfolio had an unrealized loss of $1.1
million, net of taxes at the end of the second quarter of 2007, due to rising
interest rates throughout much of 2006 into 2007. Management considers the
unrealized losses to be temporary and primarily resulting from changes in the
interest rate environment.

Securities held to maturity increased by $1.8 million from $84.3 million to
$86.1 million. This increase was due mainly to the purchase of higher yielding
government agency securities.

Total securities aggregated $121.0 million at June 30, 2007, and represented
54.7% of total assets.


                                       14

<PAGE>

The weighted average life of the combined securities portfolio was approximately
10 years at June 30, 2007 with a weighted yield of 5.5% compared to 5.2% for the
same period in 2006.

NET LOANS RECEIVABLE

During the first six months of 2007 net loans receivable increased by $4.1
million or 4.7% from $87.4 million at December 31, 2006, to $91.6 million on
June 30, 2007. Loans receivable represented 51.4% of total deposits and 41.4% of
total assets at June 30, 2007, as compared to 50.5% and 40.5%, respectively, at
December 31, 2006.

LOAN AND ASSET QUALITY AND ALLOWANCE FOR LOAN LOSSES

There were no non-accrual loans at June 30, 2007 and December 31, 2006. There
was no foreclosed real estate held by the Corporation as of June 30, 2007 and
December 31, 2006.

The following summary table presents information regarding non-performing loans
and assets as of June 30, 2007 and December 3l, 2006.

                         NONPERFORMING LOANS AND ASSETS
                             (Dollars in Thousands)

<TABLE>
<CAPTION>
                                       June 30,   December 31,
                                         2007         2006
                                       --------   ------------
<S>                                    <C>        <C>
Nonaccrual loans:                       $  --        $  --
Commercial                                 --           --
Consumer                                   --           --
Real Estate:
   Construction                            --           --
   Mortgage                                --           --
                                        -----        -----
      Total nonaccrual                     --           --
Loans past due 90 days or more             30           52
Restructured loans                         --           --
                                        -----        -----
      Total nonperforming loans            30           52
Repossessed assets                         43           --
                                        -----        -----
      Total nonperforming assets        $  73        $  52
                                        =====        =====
Nonperforming loans to total loans       0.03%        0.06%
Nonperforming assets to total assets     0.03%        0.02%
</TABLE>


                                       15

<PAGE>

The following table sets forth the Corporation's provision and allowance for
loan losses.

<TABLE>
<CAPTION>
                                               Six Months       Six Months
                                             Ending 6/30/07   Ending 6/30/06
                                             --------------   --------------
<S>                                          <C>              <C>
Balance at beginning of period                   $ 653            $ 657
Provision for loan losses                           --               --
Recoveries of loans previously charged-off
   Commercial                                       --               --
   Consumer                                          1                1
   Real Estate                                      --               --
                                                 -----            -----
Total recoveries                                     1                1
Loans charged-off:
   Commercial                                       --               --
   Consumer                                         (9)              (1)
   Real Estate                                      --               --
                                                 -----            -----
Total charged-off                                   (9)              (1)
                                                 -----            -----
Net charge-offs                                     (8)              --
                                                 -----            -----
Balance at end of period                         $ 645            $ 657
                                                 =====            =====
Net charge-offs as a percentage of
   average loans outstanding                      0.01%            0.00%
Allowance for loan losses as a
   percentage of period-end loans                 0.70%            0.76%
</TABLE>

DEPOSITS

Total deposits at June 30, 2007, were $178.1 million, up $5.0 million, or 2.9%,
over total deposits of $173.1 million at December 3l, 2006. The balances for the
first six months of 2007 and 2006 are presented in the following table:

<TABLE>
<CAPTION>
                                       At June 30,
                                  (Dollars in thousands)
                         ---------------------------------------
                                2007                 2006
                         ------------------   ------------------
                                    Average              Average
                          Balance     Rate     Balance     Rate
                         --------   -------   --------   -------
<S>                      <C>        <C>       <C>        <C>
Demand Deposits:
   Noninterest-bearing   $ 17,346             $ 17,194
   Interest-bearing         6,764     1.53       7,499     1.60
Savings                    47,037     1.95      51,010     1.68
Time deposits:
   <$100,000               73,264     4.58      64,679     4.00
   >$100,000               33,700     4.92      30,766     4.42
                         --------             --------
Total Deposits           $178,111             $171,148
                         ========             ========
</TABLE>


                                       16
<PAGE>

INTEREST RATE SENSITIVITY

The management of interest rate sensitivity seeks to avoid fluctuating net
interest margins and to provide consistent net interest income through periods
of changing interest rates.

The Corporation's risk of loss arising from adverse changes in the fair value of
financial instruments, or market risk, is composed primarily of interest rate
risk. The primary objective of the Corporation's asset/liability management
activities is to maximize net interest income while maintaining acceptable
levels of interest rate risk. The Bank's Asset/Liability Committee (ALCO) is
responsible for establishing policies to limit exposure to interest rate risk,
and to ensure procedures are established to monitor compliance with those
policies. The Corporation's Board of Directors approves the guidelines
established by ALCO.

An interest rate sensitive asset or liability is one that, within a defined
period, either matures or experiences an interest rate change in line with
general market interest rates. Historically, the most common method of
estimating interest rate risk was to measure the maturity and repricing
relationships between interest-earning assets and interest-bearing liabilities
at specific points in time (GAP), typically one year. Under this method, a
company is considered liability sensitive when the amount of its
interest-bearing liabilities exceeds the amount of its interest-earning assets
within the one-year horizon. However, assets and liabilities with similar
repricing characteristics may not reprice at the same time or to the same
degree. As a result, the Corporation's GAP does not necessarily predict the
impact of changes in general levels of interest rates on net interest income.

Management believes the simulation of net interest income in different interest
rate environments provides a more meaningful measure of interest rate risk.
Income simulation analysis captures not only the potential of all assets and
liabilities to mature or reprice, but also the probability that they will do so.
Income simulation also attends to the relative interest rate sensitivities of
these items, and projects their behavior over an extended period of time.
Finally, income simulation permits management to assess the probable effects on
the balance sheet not only of changes in interest rates, but also of proposed
strategies for responding to them.

The Corporation's income simulation model analyzes interest rate sensitivity by
projecting net interest income over the next 12 months in a flat rate scenario
versus net income in alternative interest rate scenarios. Management continually
reviews and refines its interest rate risk management process in response to the
changing economic climate. Currently, the Corporation's model projects a
proportionate 200 basis point change during the next year.

The Corporation's ALCO policy has established that income sensitivity will be
considered acceptable if overall net income volatility in a plus or minus 200
basis point scenario is within 5% of net interest income in a flat rate
scenario. At June 30, 2007, the Corporation's simulation model indicates net
interest income would decrease .13% within the first year if rates increased as
described above. The model projects that net interest income would decrease by
..18% in the first year if rates decreased as described above. All of these
forecasts are within an acceptable level of interest rate risk per the policies
established by ALCO.


                                       17

<PAGE>

LIQUIDITY

Liquidity management involves the ability to generate cash or otherwise obtain
funds at reasonable rates to support asset growth and reduce assets to meet
deposit withdrawals, to maintain reserve requirements, and to otherwise operate
the Corporation on an ongoing basis. Liquidity needs are generally met by
converting assets into cash or obtaining sources of additional funds, mainly
deposits. Primarily cash and federal funds sold, and the cash flow from the
amortizing securities and loan portfolios provide liquidity sources from asset
categories. The primary source of liquidity from liability categories is the
generation of additional core deposit balances.

Additionally, the Corporation has established secondary sources of liquidity
consisting of federal funds lines of credit and borrowing capacity at the
Federal Home Loan Bank, which can be drawn upon if needed. In view of the
primary and secondary sources as previously mentioned, management believes that
the Corporation is capable of meeting its anticipated liquidity needs.

OFF-BALANCE SHEET ARRANGEMENTS

The Corporation's financial statements do not reflect off-balance sheet
arrangements that are made in the normal course of business. Those off-balance
sheet arrangements consist of unfunded loans and letters of credit made under
the same standards as on-balance sheet instruments. These commitments, at June
30, 2007 totaled $5.6 million. This consisted of $1.1 million in tax-exempt
loans, commercial real estate, construction, and land development loans, $3.8
million in home equity lines of credit, $706,000 in standby letters of credit
and the remainder in other unused commitments. Because these instruments have
fixed maturity dates, and because many of them will expire without being drawn
upon, they do not generally present any significant liquidity risk to the
Corporation.

Management believes that any amounts actually drawn upon can be funded in the
normal course of operations. The Corporation has no investment in or financial
relationship with any unconsolidated entities that are reasonably likely to have
a material effect on liquidity or the availability of capital resources.

CAPITAL ADEQUACY

At June 30, 2007, stockholders' equity totaled $42.0 million, up 1.8% over
stockholders' equity of $41.2 million at December 31, 2006. The increase in
stockholders' equity for the six months ended June 30, 2007 included a $163,000
unrealized loss, net of income taxes, on securities available for sale.
Excluding this unrealized loss, gross stockholders' equity changed by an
increase of $917,000 in retained net income.

Risk-based capital provides the basis for which all banks are evaluated in terms
of capital adequacy. The risk-based capital standards require all banks to have
Tier 1 capital of at least 4% and total capital, including Tier 1 capital, of at
least 8% of risk-adjusted assets. Tier 1 capital includes common stockholders'
equity together with related surpluses and retained earnings. Total capital may
be comprised of total Tier 1 capital plus qualifying debt instruments, and the
allowance for loan losses.


                                       18

<PAGE>

The following table provides a comparison of the Bank's risk-based capital
ratios and leverage ratios to the minimum regulatory requirements for the
periods indicated:

<TABLE>
<CAPTION>
                                                       For Capital    To be Well Capitalized
                             June 30,   December 31,     Adequacy    Under Prompt Corrective
                               2007         2006         Purposes       Action Provisions
                             --------   ------------   -----------   -----------------------
<S>                          <C>        <C>            <C>           <C>
Risk-Based Capital Ratios:
   Tier 1 Capital              39.7%        40.6%          4.00%               6.00%
   Total Capital               40.3%        41.3%          8.00%              10.00%
   Leveraged Capital           19.4%        19.4%          4.00%               5.00%
</TABLE>

The Bank's capital ratios are not materially different from that of the
Corporation. At June 30, 2007, the capital levels of the Bank met the definition
of a "well capitalized" institution.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Corporation's exposure to market risk has not changed significantly since
December 31, 2006. The market risk principally includes interest rate risk,
which is discussed in the Management's Discussion and Analysis above.

ITEM 4.

CONTROLS AND PROCEDURES

The Corporation maintains controls and procedures designed to ensure that
information required to be disclosed in the reports that the Corporation files
or submits under the Securities and Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in the rules and forms
of the SEC. Based upon their evaluation of those controls and procedures as of
June 30, 2007, the chief executive officer and principal financial officer of
the Corporation concluded that the Corporation's disclosure controls and
procedures were adequate.

The Corporation made no changes in its internal controls or in other factors
that have materially affected, or are reasonably likely to materially affect
these controls during the quarter ended June 30, 2007, including any corrective
actions with regard to significant deficiencies and material weaknesses.


                                       19

<PAGE>

PART II.

OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

        In the opinion of the management of the Corporation, there are no
        proceedings pending to which the Corporation or the Bank are a party or
        to which their property is subject, which, if determined adversely to
        the Corporation or the Bank, would be material in relation to the
        Corporation's or the Bank's financial condition. There are no
        proceedings pending other than ordinary routine litigation incident to
        the business of the Corporation or the Bank. In addition, no material
        proceedings are pending or are known to be threatened or contemplated
        against the Corporation or the Bank by government authorities.

ITEM 1A. RISK FACTORS

        There are no material changes to the risk factors set forth in Part 1,
        Item 1A, "Risk Factors", of the Corporation's Form 10-K for the year
        ended December 31, 2006. Please refer to that section for disclosures
        regarding the risks and uncertainties related to the Corporation's
        business.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

        Not applicable

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

        Not applicable

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

        a)   An annual meeting of shareholders was held on May 9, 2007 at The
             NOVA Building, Coplay, PA.

        b)   One matter was voted on at the May 9, 2007, meeting as follows:

<TABLE>
<CAPTION>
     ELECTION OF          TERM    VOTES CAST   VOTES AGAINST
      DIRECTORS         EXPIRES      FOR        OR WITHHELD*
     -----------        -------   ----------   -------------
<S>                     <C>       <C>          <C>
Robert B. Heintzelman    April,     178,112          25
                         2010
Kevin A. Schmidt         April,     177,852         285
                         2010
</TABLE>

*    Includes broker non-votes

<TABLE>
<CAPTION>
                                                    Term Expires
                                                    ------------
<S>                                                 <C>
Directors whose term continued after the meeting:
John J. Remaley                                      April, 2008
Herman P. Snyder                                     April, 2008
John F. Sharkey, Jr.                                 April, 2008
John F. Simock                                       April, 2009
Mary Ann Wagner                                      April, 2009
Duane A. Schleicher                                  April, 2009
</TABLE>


                                       20

<PAGE>

ITEM 5. OTHER INFORMATION

        Not applicable

ITEM 6. EXHIBITS

     3(i) Amended and Restated Articles of Incorporation for Neffs Bancorp, Inc.
          (Incorporated by reference to Exhibit 3(i) to the Form 10 filed with
          the Commission on April 27, 2001, as amended on June 29, 2001 and July
          20, 2001.)

     3(ii) Amended and Restated By-laws of Neffs Bancorp, Inc. (Incorporated by
          reference to Exhibit 99.1 to the Form 8K filed with the Commission on
          February 27, 2002.)

     31.1 Certification of Chief Executive Officer pursuant to Section 302 of
          the Sarbanes Oxley Act of 2002.

     31.2 Certification of Principal Financial Officer pursuant to Section 302
          of the Sarbanes Oxley Act of 2002.

     32.1 Certification of Chief Executive Officer pursuant to Section 1350 of
          the Sarbanes Oxley Act of 2002.

     32.2 Certification of Principal Financial Officer pursuant to Section 1350
          of the Sarbanes Oxley Act of 2002.


                                       21

<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.

                                        NEFFS BANCORP, INC.


Date: August 13, 2007                   /s/ John J. Remaley
                                        John J. Remaley, President


                                       22