<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 September 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 October 31, 2007, 190,755 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)
         September 30, 2007 and December 31, 2006 .........................    3

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

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

         Consolidated Statements of Cash Flows (Unaudited)
         Nine months ended September 30, 2007 and September 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 ................................................   20

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

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


                                        2

<PAGE>

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

<TABLE>
<CAPTION>
                                                        September 30,   December 31,
Dollars in thousands, except per share data                 2007            2006
                                                        -------------   ------------
<S>                                                     <C>             <C>
                        ASSETS
Cash and due from banks                                   $  2,832        $  2,201
Interest bearing deposits with banks                           205             144
Federal funds sold                                           3,700              --
Securities available for sale                               33,846          36,705
Securities held to maturity, fair value
   $87,789 in 2007; $84,561 in 2006                         87,294          84,308
Loans                                                       93,792          88,071
   Less allowance for loan losses                             (643)           (653)
                                                          --------        --------
      Net loans                                             93,149          87,418
                                                          --------        --------
Premises and equipment, net                                  2,393           2,505
Other assets                                                 2,718           2,595
                                                          --------        --------
         Total assets                                     $226,137        $215,876
                                                          ========        ========
         LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
   Deposits
      Non-interest bearing                                $ 18,052        $ 17,554
      Interest bearing                                     165,674         155,547
                                                          --------        --------
         Total deposits                                    183,726         173,101
   Federal funds purchased                                      --             357
   Other liabilities                                         1,639           1,196
                                                          --------        --------
         Total liabilities                                 185,365         174,654
                                                          --------        --------
Stockholders' Equity:
   Common stock, $1 par value, authorized 2,500,000
      shares; issued 200,000 shares; outstanding 2007
      190,755 shares; 2006 197,941 shares                      200             200
   Paid-in capital                                             753             753
   Retained earnings                                        42,874          41,634
   Accumulated other comprehensive loss                       (747)           (947)
   Treasury stock, at cost 2007 9,245 shares; 2006
      2,059 shares                                          (2,308)           (418)
                                                          --------        --------
         Total stockholders' equity                         40,772          41,222
                                                          --------        --------
         Total liabilities and stockholders' equity       $226,137        $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    Nine Months Ended
                                                   September 30,         September 30,
                                                -------------------   -------------------
Dollars in thousands, except per share data       2007       2006        2007      2006
                                                --------   --------   --------   --------
<S>                                             <C>        <C>        <C>        <C>
Interest income:
   Interest and fees on loans                   $  1,536   $  1,387   $  4,441   $  4,018
   Interest and dividends on investments:
      Taxable                                      1,049        896      3,009      2,620
      Exempt from federal income taxes               437        490      1,366      1,495
   Interest on federal funds sold and other           17         14         52         43
                                                --------   --------   --------   --------
         Total interest income                     3,039      2,787      8,868      8,176
                                                --------   --------   --------   --------
Interest Expense
   Deposits                                        1,534      1,299      4,508      3,742
   Borrowings                                         --          9          1         11
                                                --------   --------   --------   --------
         Total interest expense                    1,534      1,308      4,509      3,753
                                                --------   --------   --------   --------
         Net interest income                       1,505      1,479      4,359      4,423
                                                --------   --------   --------   --------
Other income:
   Service charges on deposit accounts                36         37        100        111
   Other service charges and fees                     24          8         68         44
   Other income                                       11         18         33         34
                                                --------   --------   --------   --------
         Total other income                           71         63        201        189
                                                --------   --------   --------   --------
Other expenses:
   Salaries and employee benefits                    341        323      1,029      1,018
   Occupancy                                          64         52        134        123
   Furniture and equipment                            69         75        201        225
   Pennsylvania shares tax                           100         96        302        286
   Other expenses                                    150        184        507        527
                                                --------   --------   --------   --------
         Total other expenses                        724        730      2,173      2,179
                                                --------   --------   --------   --------
         Income before income taxes                  852        812      2,387      2,433
Income tax expense                                   148        114        370        338
                                                --------   --------   --------   --------
         Net income                             $    704   $    698   $  2,017   $  2,095
                                                ========   ========   ========   ========
Per share data:
   Earnings per share, basic                    $   3.57   $   3.52   $  10.21   $  10.58
                                                ========   ========   ========   ========
   Weighted average common shares outstanding    197,004    197,941    197,625    197,941
                                                ========   ========   ========   ========
   Cash dividends declared per share            $   2.00   $   2.00   $   4.00   $   4.00
                                                ========   ========   ========   ========
</TABLE>

See Notes to Consolidated Financial Statements.


                                        4

<PAGE>

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

<TABLE>
<CAPTION>
                                                                                   Accumulated
                                                                                      Other                     Total
                                                             Paid-In   Retained   Comprehensive   Treasury   Stockholders'
Dollars in thousands, except per share data   Common 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                                    --           --       2,095          --           --         2,095
      Change in unrealized net losses
         on securities available for sale,
         net of tax                                 --           --          --         (82)          --           (82)
                                                                                                               -------
         Total comprehensive income                                                                              2,013
                                                                                                               -------
   Cash dividends declared on common
      stock, $4.00 per share                        --           --        (792)         --           --          (792)
                                                  ----         ----     -------       -----        -----       -------
Balance, September 30, 2006                       $200         $753     $40,906       $(926)       $(418)      $40,515
                                                  ====         ====     =======       =====        =====       =======
</TABLE>

<TABLE>
<CAPTION>
                                                                                   Accumulated
                                                                                      Other                     Total
                                                             Paid-In   Retained   Comprehensive   Treasury   Stockholders'
Dollars in thousands, except per share data   Common 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                                    --           --       2,017          --            --          2,017
      Change in unrealized net losses
         on securities available for sale,
         net of tax                                 --           --          --         200            --            200
                                                                                                                 -------
         Total comprehensive income                                                                                2,217
                                                                                                                 -------
   Cash dividends declared on common
      stock, $4.00 per share                        --           --        (777)         --            --           (777)
   Purchase of treasury stock
      (7,186 shares)                                --           --          --          --        (1,890)        (1,890)
                                                  ----         ----     -------       -----       -------        -------
Balance, September 30, 2007                       $200         $753     $42,874       $(747)      $(2,308)       $40,772
                                                  ====         ====     =======       =====       =======        =======
</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                                          2007      2006
                                                            -------   -------
<S>                                                         <C>       <C>
Nine Months Ended September 30,
CASH FLOWS FROM OPERATING ACTIVITIES
   Net income                                               $ 2,017   $ 2,095
   Adjustments to reconcile net income to net cash
      provided by operating activities:
      Depreciation                                              151       151
      Net amortization (accretion) of securities
         premiums/discounts                                     (47)      106
      Change in assets and liabilities:
         Increase in:
            Accrued interest receivable                        (186)     (250)
            Other assets                                        (40)     (103)
         Increase in:
            Other liabilities                                    62       143
                                                            -------   -------
         Net cash provided by operating activities            1,957     2,142
                                                            -------   -------
CASH FLOWS FROM INVESTING ACTIVITIES
   Decrease (increase) in interest bearing deposits
      with banks                                                (61)       29
   Decrease (increase) in federal funds sold                 (3,700)    2,221
   Purchase of securities available for sale                 (1,925)   (1,888)
   Proceeds from maturities/calls of securities available
      for sale                                                5,019     5,258
   Purchase of securities held to maturity                   (9,417)   (5,728)
   Proceeds from maturities/calls of securities held to
      maturity                                                6,546     3,301
   Net increase in loans                                     (5,731)   (3,978)
   Purchases of premises and equipment                          (39)     (165)
                                                            -------   -------
         Net cash used in investing activities               (9,308)     (950)
                                                            -------   -------
CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase (decrease) in deposits                       10,625    (1,484)
   Net decrease in federal funds purchased                     (357)       --
   Dividends paid                                              (396)     (396)
   Purchase of treasury stock                                (1,890)       --
                                                            -------   -------
         Net cash provided (used) by financing activities     7,982    (1,880)
                                                            -------   -------
         Increase (decrease) in cash and cash equivalents       631      (688)
Cash and cash equivalents:
   Beginning                                                  2,201     2,958
                                                            -------   -------
   Ending                                                   $ 2,832   $ 2,270
                                                            =======   =======
Supplementary Cash Flows Information
   Interest Paid                                            $ 4,390   $ 3,620
                                                            =======   =======
   Income Taxes Paid                                        $   410   $   386
                                                            =======   =======
</TABLE>

See Notes to Consolidated Financial Statements.


                                       6
<PAGE>

                               NEFFS BANCORP, INC.
             NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 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 nine-month period
ended September 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 nine months ended September 30, 2007 and 2006 are as follows:

<TABLE>
<CAPTION>
                                                 Three Months    Nine Months
                                                    Ended           Ended
                                                September 30,   September 30,
                                                -------------   -------------
Dollars in thousands                             2007    2006    2007    2006
                                                -----   -----   -----   -----
<S>                                             <C>     <C>     <C>     <C>
Unrealized holding gains (losses) on
   available for sale securities                $ 550   $ 805   $ 303   $(124)
Tax effect                                       (187)   (274)   (103)     42
                                                -----   -----   -----   -----
Other comprehensive income (loss), net of tax   $ 363   $ 531   $ 200   $ (82)
                                                =====   =====   =====   =====
</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 $628,000 of standby letters of credit as of
September 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 September 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 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 third quarter of 2007 increased 0.9% to $704,000 as compared
to $698,000 for the third quarter of 2006 as total revenues increased 9.1% from
$2.9 million to $3.1 million for the quarter and total expenses increased 10.8%
from $2.0 million to $2.3 million. Net income per common share increased 1.4% to
$3.57 per share from $3.52 per share in the third quarter a year ago. At
September 30, 2007, the Corporation had total assets of $226.1 million, total
loans of $93.8 million, and total deposits of $183.7 million.

RESULTS OF OPERATIONS

AVERAGE BALANCES AND AVERAGE INTEREST RATES

Interest earning assets averaged $217.0 million for the third quarter of 2007 as
compared to $208.1 million for the same period in 2006. The growth in interest
earning assets was mainly the result of an increase of $6.2 million in average
total loans and an increase of $1.9 million in investments. Average
interest-bearing liabilities increased from $155.4 million during the third
quarter of 2006 to $162.4 million during the third quarter of 2007. The increase
in average interest bearing liabilities was the result of a $10.9 million
increase in time deposits offset by decreases in savings, demand deposits, and
fed funds purchased of $2.4 million, $844,000, and $647,000, respectively. The
increase in certificates of deposit was due to the continued increase in rates
being offered and the shift of funds from lower interest savings accounts to
higher interest certificates of deposit.

The average yield on earning assets was 5.6% for the third quarter of 2007 as
compared to 5.4% for the same quarter in 2006. The average rate paid on
interest-bearing liabilities was 3.8% for the third quarter of 2007 and 3.4% for
the third quarter of 2006, an increase of 40 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 third quarter of 2007 increased by $252,000 or 9.0% over
the third 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 third quarter of 2007 increased by $226,000 or 17.3%
compared to the third 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 and the growth in average deposits.


                                       11

<PAGE>

Net interest income for the third quarter of 2007 increased by $26,000 or 1.8%
over the third 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 third quarter of 2007 was affected by those
increasing rate adjustments.

For the nine months ended September 30, 2007, interest income increased by
$692,000 or 8.5% over the same period in 2006. The increase for the first nine
months was mostly related to the increasing interest rates on loan products and
securities purchased. Interest earning assets for the first nine months of 2007
averaged $214.5 million versus $206.7 million for the comparable period in 2006.
The yield on those assets increased from 5.3% for the first nine months of 2006
to 5.5% for the same period in 2007.

Interest expense for the first nine months of 2007 increased $756,000 or 20.1%
as compared to the first nine months of 2006. The level of average
interest-bearing liabilities increased from $155.3 million for the first three
quarters of 2006 to $160.8 million for the same period of 2007. The average rate
paid for the first nine months of 2007 was 3.7% as compared to 3.2% for the same
period of 2006.

Net interest income for the three quarters of 2007 decreased by $64,000 or 1.4%
over the same period in 2006. 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. The company's net interest
margin decreased to 2.7% for the nine months ended September 30, 2007 from 2.9%
for the same period last year.

PROVISION FOR LOAN LOSSES

Based on historical and projected loss trends, no provision for loan losses was
made for the third 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 nine months ending September 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 nine months of 2007 and 2006.

NON-INTEREST INCOME

Non-interest income for the third quarter of 2007 increased by $8,000 or 12.7%
from the same period in 2006 due mainly to a negative adjustment for credit
insurance commissions in 2006. Non-interest income for the first nine months of
2007 increased by $12,000 or 6.3% from the same period in 2006.

NON-INTEREST EXPENSE

For the third quarter of 2007, non-interest expenses decreased by $6,000 or 0.8%
to $724,000, compared to $730,000 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, occupancy expense, and Pennsylvania
shares tax.

Salary expenses and employee benefits, which represent the largest component,
47.1%, of non-interest expenses, increased by $18,000 or 5.6% for the third
quarter of 2007.


                                       12

<PAGE>

Occupancy and furniture/equipment expense for the third quarter of 2007
increased by $6,000 or 4.7% as compared to the third quarter of 2006, due to
increased occupancy expense.

Shares tax increased from $96,000 to $100,000 from the third quarter of 2006 to
the third quarter of 2007.

Net other expenses decreased by $34,000 or 18.5% throughout the third quarter of
2007 as compared to the third quarter of 2006. This is mainly due to decreases
in various expenses including sundry, dues and subscription,
legal/audit/examination, and advertising expenses offset by increases in
donations, bookkeeping, and bank account maintenance expenses.

Total non-interest expense remained at $2.2 million for the first nine months of
2006 and 2007.

Salary expenses and employee benefits, which represent the largest component,
47.4%, of non-interest expenses, increased by $11,000 or 1.1% over the first
nine months of 2006.

Occupancy and furniture/equipment expenses for the first nine months of 2007
decreased by $13,000 or 3.7% as compared to the first nine months of 2006. This
is due to improved expense control by management.

Shares tax expense increased by $16,000 or 5.6% for the first nine months of
2007 from the same period in 2006. This increase was mainly due to continued
capital growth.

Net other expenses decreased by $20,000 or 3.8% for the first nine months ended
September 30, 2007 over the nine months of 2006.

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 non-interest expenses (excluding foreclosed real estate expenses) less
non-interest income (exclusive of nonrecurring gains), divided by average
assets. This annualized ratio was 1.17% for the three months ended September 30,
2007, lower than the 1.25% for the three months ended September 30, 2006. It was
1.20% for the first nine 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 non-interest income (excluding
nonrecurring gains). For the quarter ended September 30, 2007, the operating
efficiency ratio was 45.9%, which decreased from the 47.3% for the same period
in 2006. For the nine months ended September 30, 2007, this ratio was 47.7%
compared to 47.3% for the nine months ended September 30, 2006. The increase for
the first three quarters was due in part to a decrease in net interest income.

PROVISION FOR FEDERAL INCOME TAXES

The provision for federal income taxes was $148,000 for the third quarter of
2007, as compared to $114,000 for the same period in 2006. For nine months ended
September 30, the provision was $370,000 and $338,000 for 2007 and 2006,
respectively. The effective tax rate, which is the ratio of income tax expense
to income before income taxes, was 17.4% for


                                       13

<PAGE>

the third quarter of 2007 and 14.0% for the third quarter of 2006. The effective
tax rate for the first nine months of 2007 and 2006 was 15.5% and 13.9%,
respectively. The increase in the effective tax rate was due mainly to the
decrease in tax exempt municipal securities. 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 third quarter of 2007 was $704,000, an increase of $6,000 or
0.9% from the $698,000 recorded in the third quarter of 2006.

Net income for the first nine months of 2007 decreased by $78,000 or 3.7% as
compared to September 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 third
quarter of 2007 remained at 1.3%, consistent with the third quarter of 2006. The
ROA for the first nine months of 2007 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 third quarter of 2007 was 6.8% as compared to
7.0% for the third quarter of 2006. The ROE for the first nine months of 2007
was 6.5% as compared to 7.1% for the same period of 2006.

FINANCIAL CONDITION

SECURITIES

During the first nine months of 2007 securities available for sale decreased by
$2.9 million from $36.7 million as of December 31, 2006 to $33.8 million as of
September 30, 2007. This decrease was due mainly to the payments received on
mortgage backed securities. There are no foreseen potential defaults or
valuation issues that would have a material effect regarding these securities.

The securities available for sale portfolio had an unrealized loss of $747,000,
net of taxes at the end of the third 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 $3.0 million from $84.3 million to
$87.3 million. This increase was due mainly to the purchase of higher yielding
government agency securities.

Total securities aggregated $121.1 million at September 30, 2007, and
represented 53.6% of total assets.


                                       14

<PAGE>

The weighted average life of the combined securities portfolio was approximately
10 years at September 30, 2007 with a weighted yield of 5.5% compared to 5.3%
for the same period in 2006.

NET LOANS RECEIVABLE

During the first nine months of 2007 net loans receivable increased by $5.7
million or 6.6% from $87.4 million at December 31, 2006, to $93.1 million on
September 30, 2007. Loans receivable represented 50.7% of total deposits and
41.2% of total assets at September 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 September 30, 2007 and December 31, 2006.
There was no foreclosed real estate held by the Corporation as of September 30,
2007 and December 31, 2006.

The following summary table presents information regarding non-performing loans
and assets as of September 30, 2007 and December 31, 2006.

                         NONPERFORMING LOANS AND ASSETS
                             (Dollars in Thousands)

<TABLE>
<CAPTION>
                                       September 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                 66             52
Restructured loans                             --             --
                                            -----          -----
      Total nonperforming loans                66             52
Repossessed assets                             43             --
                                            -----          -----
      Total nonperforming assets            $ 109          $  52
                                            =====          =====
Nonperforming loans to total loans           0.12%          0.06%
Nonperforming assets to total assets         0.05%          0.02%
</TABLE>


                                       15

<PAGE>

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

<TABLE>
<CAPTION>
                                                 Nine Months      Nine Months
                                               Ending 9/30/07   Ending 9/30/06
                                               --------------   --------------
<S>                                            <C>              <C>
Balance at beginning of period                      $ 653            $ 657
Provision for loan losses                              --               --
Recoveries of loans previously charged-off
   Commercial                                          --               --
   Consumer                                             4                2
   Real Estate                                         --               --
                                                    -----            -----
Total recoveries                                        4                2
Loans charged-off:
   Commercial                                          --               --
   Consumer                                           (14)              (1)
   Real Estate                                         --               --
                                                    -----            -----
Total charged-off                                     (14)              (1)
                                                    -----            -----
Net (charge-offs) recoveries                          (10)               1
                                                    -----            -----
Balance at end of period                            $ 643            $ 658
                                                    =====            =====
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                                  0.69%            0.76%
</TABLE>

DEPOSITS

Total deposits at September 30, 2007, were $183.7 million, up $10.6 million, or
6.1%, over total deposits of $173.1 million at December 31, 2006. The balances
as of September 30, 2007 and 2006 by category are presented in the following
table:

<TABLE>
<CAPTION>
                                      September 30,
                                  (Dollars in thousands)
                         ---------------------------------------
                                2007                 2006
                         ------------------   ------------------
                                    Average              Average
                          Balance     Rate     Balance     Rate
                         --------   -------   --------   -------
<S>                      <C>        <C>       <C>        <C>
Demand Deposits:
   Noninterest-bearing   $ 18,052             $ 17,789
   Interest-bearing         6,302     1.70       7,486     1.62
Savings                    49,368     1.92      47,886     1.70
Time deposits:
   <$100,000               73,470     4.62      67,438     4.26
   >$100,000               36,533     4.99      31,193     4.56
                         --------             --------
Total Deposits           $183,726             $171,792
                         ========             ========
</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 September 30, 2007, the Corporation's simulation model indicates
net interest income would increase 0.61% within the first year if rates
increased as described above. The model projects that net interest income would
decrease by 0.86% 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
September 30, 2007 totaled $6.0 million. This consisted of $1.6 million in
tax-exempt loans, commercial real estate, construction, and land development
loans, $3.8 million in home equity lines of credit, $628,000 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 September 30, 2007, stockholders' equity totaled $40.8 million, down 1.1%
over stockholders' equity of $41.2 million at December 31, 2006. The decrease in
stockholders' equity for the nine months ended September 30, 2007 included a
$200,000 unrealized gain, net of income taxes, on securities available for sale
and a $1.9 million increase in treasury stock. Excluding this unrealized gain
and treasury stock purchase, gross stockholders' equity changed by an increase
of $1.2 million 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
                             September 30,   December 31,     Adequacy    Under Prompt Corrective
                                  2007           2006         Purposes       Action Provisions
                             -------------   ------------   -----------   -----------------------
<S>                          <C>             <C>            <C>           <C>
Risk-Based Capital Ratios:
   Tier 1 Capital                37.9%           40.6%         4.00%             6.00%
   Total Capital                 38.4%           41.3%         8.00%            10.00%
   Leveraged Capital             18.5%           19.4%         4.00%             5.00%
</TABLE>

The Bank's capital ratios are not materially different from that of the
Corporation. At September 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
September 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 September 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

     Not applicable

ITEM 5. OTHER INFORMATION

     Not applicable


                                       20

<PAGE>

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: November 6, 2007                  /s/ John J. Remaley
                                        John J. Remaley, President


                                       22