SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)
[X]  Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

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

[ ]  Transition  report  pursuant  to  Section  13 or  15(d)  of the  Securities
     Exchange Act of 1934

     For the transition period from ________ to ________

                           SEC File Number: 000-50467
                                            ---------

                          SYNERGY FINANCIAL GROUP, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                New Jersey                                       52-2413926
  -------------------------------                             ----------------
  (State or other jurisdiction of                             (I.R.S. Employer
   incorporation or organization)                            Identification No.)

  310 North Avenue East, Cranford, New Jersey                      07016
  -------------------------------------------                      -----
    (Address of principal executive offices)                     (Zip Code)

                                 (908) 272-3838
              ----------------------------------------------------
              (Registrant's telephone number, including area code)


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

Indicate by check mark whether the Registrant is a large  accelerated  filer, an
accelerated  filer, or a  non-accelerated  filer. See definition of "accelerated
filer" and "large  accelerated  filer" in Rule 12b-2 of the Exchange Act.
(Check one):
Large accelerated filer        Accelerated filer  X    Non-accelerated filer
                        ---                      ---                         ---

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

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Number of shares outstanding of common stock as of April 28, 2006:

$0.10 Par Value Common Stock                                   11,360,488
----------------------------                                   ----------
          Class                                             Shares Outstanding

<PAGE>

                 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

PART I        FINANCIAL INFORMATION                                                                            Page
------        ---------------------                                                                            ----
<S>                                                                                                            <C>

Item 1.       Financial Statements

              Consolidated Balance Sheets as of March 31, 2006 (unaudited) and
                  December 31, 2005 (audited).....................................................................1

              Consolidated Statements of Income for the three months ended
                  March 31, 2006 and 2005 (unaudited).............................................................2

              Consolidated Statement of Changes in Stockholders' Equity for the
                  three months ended March 31, 2006 (unaudited)...................................................3

              Consolidated Statements of Cash Flows for the three months ended
                  March 31, 2006 and 2005 (unaudited).............................................................4

              Notes to Consolidated Financial Statements (unaudited)..............................................5

Item 2.       Management's Discussion and Analysis of Financial Condition
                  and Results of Operations......................................................................13

Item 3.       Quantitative and Qualitative Disclosures about Market Risk.........................................20

Item 4.       Controls and Procedures............................................................................21


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

Item 1.       Legal Proceedings..................................................................................22

Item 1A.      Risk Factors.......................................................................................22

Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds........................................22

Item 3.       Defaults Upon Senior Securities....................................................................23

Item 4.       Submission of Matters to a Vote of Security Holders................................................23

Item 5.       Other Information..................................................................................23

Item 6.       Exhibits...........................................................................................24

Signatures.......................................................................................................25

</TABLE>

<PAGE>

                 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
                           Consolidated Balance Sheets
                        (In thousands, except share data)

<TABLE>
<CAPTION>
                                                                                March 31,      December 31,
                                                                                  2006             2005
                                                                               (unaudited)       (audited)
                                                                                ---------      ------------
<S>                                                                         <C>               <C>
Assets:
Cash and amounts due from banks                                              $     5,175       $     4,635
Interest-bearing deposits with banks                                               4,173             1,948
                                                                             -----------       -----------
Cash and cash equivalents                                                          9,348             6,583
Investment securities available-for-sale,
   at fair value                                                                  79,972            85,319
Investment securities held-to-maturity (fair
   value of $88,756 and $93,575, respectively)                                    91,054            95,621
Federal Home Loan Bank of New York
   stock, at cost                                                                 10,694            13,263
Loans receivable, net                                                            746,770           733,183
Accrued interest receivable                                                        3,358             3,313
Property and equipment, net                                                       18,549            18,570
Cash surrender value of bank-owned life insurance                                 15,088            13,138
Other assets                                                                       4,335             4,897
                                                                             -----------       -----------
     Total assets                                                            $   979,168       $   973,887
                                                                             ===========       ===========

Liabilities:
Deposits                                                                     $   671,170       $   606,471
Other borrowed funds                                                             209,500           266,600
Advance payments by borrowers
   for taxes and insurance                                                         2,670             2,215
Accrued interest payable on advances                                                 606               611
Dividend payable                                                                     624               623
Other liabilities                                                                    632             2,117
                                                                             -----------       -----------
     Total liabilities                                                           885,202           878,637
                                                                             -----------       -----------

Stockholders' equity:
Preferred stock; $0.10 par value, 5,000,000 shares
   authorized; issued and outstanding - none                                           -                 -
Common stock; $0.10 par value, 20,000,000 shares authorized;
   Issued - 12,471,481 in 2006 and in 2005
   Outstanding  - 11,360,488 in 2006 and 11,545,881 in 2005                        1,247             1,247
Additional paid-in-capital                                                        83,908            85,959
Retained earnings                                                                 33,276            32,794
Unearned ESOP shares                                                              (5,112)           (5,282)
Unearned RSP compensation                                                              -            (2,567)
Treasury stock held for the RSP, at cost;
   363,037 in 2006 and 2005                                                       (4,124)           (4,124)
Treasury stock, at cost; 1,110,993 in 2006 and
   925,600 in 2005                                                               (13,883)          (11,426)
Accumulated other comprehensive loss, net of taxes                                (1,346)           (1,351)
                                                                             -----------       -----------
     Total stockholders' equity                                                   93,966            95,250
                                                                             -----------       -----------
     Total liabilities and stockholders' equity                              $   979,168       $   973,887
                                                                             ===========       ===========
</TABLE>

        The accompanying notes are an integral part of these statements.

                                      -1-
<PAGE>

                 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
                        Consolidated Statements of Income
                      (In thousands, except per share data)

<TABLE>
<CAPTION>
                                                                   For the Three Months
                                                                      ended March 31,
                                                                  ------------------------
                                                                       2006       2005
                                                                  (unaudited)  (unaudited)
                                                                  -----------  -----------
<S>                                                              <C>           <C>
Interest income:
   Loans, including fees                                          $  11,340     $  8,220
   Investment securities                                              1,763        2,270
   Other                                                                173           91
                                                                  ---------     --------
     Total interest income                                           13,276       10,581
                                                                  ---------     --------
Interest expense:
   Deposits                                                           4,357        2,720
   Other borrowed funds                                               2,542        1,793
                                                                  ---------     --------
     Total interest expense                                           6,899        4,513
                                                                  ---------     --------
     Net interest income before provision for loan losses             6,377        6,068
Provision for loan losses                                               416          445
                                                                  ---------     --------
     Net interest income after provision for loan losses              5,961        5,623
                                                                  ---------     --------
Other income:
   Service charges and other fees on deposit accounts                   494          508
   Commissions                                                          230          248
   Other                                                                152          143
                                                                  ---------     --------
     Total other income                                                 876          899
                                                                  ---------     --------
Other expenses:
   Salaries and employee benefits                                     3,077        2,643
   Premises and equipment                                               662          693
   Occupancy                                                            562          504
   Professional services                                                197          195
   Advertising                                                          114          175
   Other operating                                                      554          496
                                                                  ---------     --------
     Total other expenses                                             5,166        4,706
                                                                  ---------     --------
     Income before income tax expense                                 1,671        1,816
Income tax expense                                                      622          696
                                                                  ---------     --------
     Net income                                                   $   1,049     $  1,120
                                                                  =========     ========

Per share of common stock:
   Basic earnings per share                                       $    0.10     $   0.10
                                                                  =========     ========
   Diluted earnings per share                                     $    0.10     $   0.10
                                                                  =========     ========

Basic weighted average shares outstanding                            10,358       11,231
                                                                     ======       ======
Diluted weighted average shares outstanding                          10,793       11,680
                                                                     ======       ======

</TABLE>

        The accompanying notes are an integral part of these statements.

                                      -2-

<PAGE>

                 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
            Consolidated Statement of Changes in Stockholders' Equity
                    For the Three Months Ended March 31, 2006
                  (Dollars in thousands, except share amounts)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                                                  Other
                                                                                                                  accumu-
                                                                                                                  lated
                                                                                             Treasury             compre-
                                                                                  Unearned    stock               hensive
                                 Common stock      Additional           Unearned    RSP      acquired             income
                                Shares     Par      paid-in- Retained     ESOP    compen-    for the   Treasury   (loss),
                                issued    value     capital  earnings    shares   sation       RSP      Stock       net     TOTAL
                             -----------------------------------------------------------------------------------------------------
<S>                         <C>         <C>        <C>       <C>       <C>       <C>       <C>       <C>        <C>       <C>
BALANCE AT JANUARY 1, 2006   12,471,481  $1,247     $85,959   $32,794   $(5,282)  $(2,567)  $(4,124)  $(11,426)  $(1,351)  $95,250

    Net income                        -       -           -     1,049         -         -         -          -         -     1,049
    Other comprehensive
      income, net of
      reclassification
      adjustment and taxes            -       -           -         -         -         -         -          -         5         5
                                                                                                                           -------

Total comprehensive income                                                                                                   1,054

    Dividends declared                -       -           -      (567)        -         -         -          -         -      (567)

    Common stock held by
       ESOP committed to
       be released
       (24,906 shares)                -       -         157         -       170         -         -          -         -       327

      Transfer due to
        adoption of
        SFAS 123(R)                   -       -      (2,567)        -         -     2,567         -          -         -         -

    Compensation recognized
       under stock plans              -       -         359         -         -         -         -          -         -       359

    Purchase of treasury
       stock (185,393 shares)         -       -           -         -         -         -          -    (2,457)        -    (2,457)
                             -----------------------------------------------------------------------------------------------------

BALANCE AT MARCH 31, 2006    12,471,481  $1,247     $83,908   $33,276   $(5,112)  $     -   $(4,124)  $(13,883)  $(1,346)  $93,966
                             =====================================================================================================
</TABLE>


        The accompanying notes are an integral part of these statements.

                                      -3-

<PAGE>

                 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                  For the Three Months
                                                                     Ended March 31,
                                                                  -----------------------
                                                                     2006        2005
                                                                 (unaudited) (unaudited)
                                                                  -----------------------
<S>                                                             <C>         <C>
Operating activities:
    Net income                                                    $  1,049    $  1,120
  Adjustments to reconcile net income to net cash
    provided by operating activities
  Depreciation and amortization                                        380         369
  Provision for loan losses                                            416         445
  Deferred income taxes                                                (68)       (450)
  Amortization of deferred loan fees and costs                         (39)        (20)
  Amortization of premiums on investment securities                    131         231
  Release of ESOP shares                                               327         314
  Compensation under RSP and stock option plans                        359         202
  Increase in accrued interest receivable                              (45)       (240)
  Decrease in other assets                                             631         221
  Decrease in other liabilities                                     (1,485)       (715)
  Increase in cash surrender value of bank-owned life insurance       (130)       (123)
  (Decrease) increase in accrued interest payable on advances           (5)         27
                                                                  --------    --------
    Net cash provided by operating activities                        1,521       1,381
                                                                  --------    --------

Investing activities:
  Purchase of investment securities held-to-maturity                     -     (12,536)
  Purchase of investment securities available-for-sale                   -      (2,047)
  Maturity and principal repayments of investment
    securities held-to-maturity                                      4,551       5,486
  Maturity and principal repayments of investment
    securities available-for-sale                                    5,237       9,166
  Purchase of property and equipment                                  (359)       (815)
  Sale (purchase) of FHLB stock                                      2,569        (480)
  Purchase of bank owned life insurance                             (1,820)          -
  Loan originations, net of principal repayments                   (19,771)    (33,367)
  Purchase of loans                                                 (1,310)     (2,257)
  Proceeds from sale of loans                                        7,117           -
                                                                  --------    --------
    Net cash used in investing activities                           (3,786)    (36,850)
                                                                  --------    --------

Financing activities:
   Net increase in deposits                                         64,699      27,966
   (Decrease) increase in short-term FHLB advances                 (57,100)      8,156
   Proceeds from long-term FHLB advances                             7,000           -
   Repayments from long-term FHLB advances                          (7,000)          -
   Increase in advance payments by borrowers
     for taxes and insurance                                           455         137
   Dividends paid                                                     (567)       (498)
   Purchase of treasury stock for the RSP Plan                           -        (355)
   Purchase of treasury stock                                       (2,457)          -
                                                                  --------    --------
     Net cash provided by financing activities                       5,030      35,406
                                                                  --------    --------
     Net increase in cash and cash equivalents                       2,765         (63)
Cash and cash equivalents at beginning of year                       6,583       6,446
                                                                  --------    --------
Cash and cash equivalents at end of period                        $  9,348    $  6,383
                                                                  ========    ========

Supplemental disclosure of cash flow information:
   Cash paid during the period for income taxes                   $      0    $    771
                                                                  ========    ========
   Interest paid on deposits and borrowed funds                   $  6,838    $  4,398
                                                                  ========    ========
</TABLE>

        The accompanying notes are an integral part of these statements.

                                      -4-

<PAGE>

                 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (unaudited)


1. BASIS OF FINANCIAL STATEMENT PRESENTATION

The  accounting   policies  followed  by  Synergy  Financial  Group,  Inc.  (the
"Company")  conform to accounting  principles  generally  accepted in the United
States of America and to predominant practice within the banking industry.

The consolidated  financial  statements  include the accounts of the Company and
its wholly-owned  subsidiaries,  Synergy Bank (the "Bank") and Synergy Financial
Services, Inc. All significant inter-company accounts and transactions have been
eliminated  in  consolidation.  Certain  amounts  previously  reported have been
reclassified to conform to the current year's presentation.

The accompanying  unaudited  condensed  consolidated  financial  statements were
prepared in accordance with  instructions to Form 10-Q, and,  therefore,  do not
include  information  or  footnotes  necessary  for a complete  presentation  of
financial position,  results of operations,  changes in equity and cash flows in
conformity with accounting principles generally accepted in the United States of
America.  However,  all normal  recurring  adjustments  that,  in the opinion of
management,  are necessary for a fair presentation of the consolidated financial
statements  have been included.  These  financial  statements  should be read in
conjunction  with  the  audited   consolidated   financial  statements  and  the
accompanying  notes thereto included in the Company's Annual Report on Form 10-K
for the period ended  December 31, 2005.  The results for the three months ended
March  31,  2006  are not  necessarily  indicative  of the  results  that may be
expected for the fiscal year ending December 31, 2006 or any other period.

In preparing the financial statements,  management is required to make estimates
and assumptions that affect the reported amounts of assets and liabilities,  the
disclosure  of  contingent  assets and  liabilities  at the date of the  balance
sheets,  and the reported  amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.

The principal  estimates that are susceptible to significant  change in the near
term relate to the allowance for loan losses.  The evaluation of the adequacy of
the allowance for loan losses  includes an analysis of the individual  loans and
overall risk  characteristics  and size of the different  loan  portfolios,  and
takes into consideration current economic and market conditions,  the capability
of specific borrowers to pay specific loan obligations,  as well as current loan
collateral  values.  However,  actual losses on specific  loans,  which also are
encompassed in the analysis, may vary from estimated losses.

Statement of Financial  Accounting Standards ("SFAS") No. 131, Disclosures About
Segments of an Enterprise and Related Information, establishes standards for the
way business  enterprises  report information about operating segments in annual
financial statements.  The Bank has one operating segment and, accordingly,  has
one reportable  segment,  "Community  Banking." All of the Bank's activities are
interrelated,  and each activity is dependent and assessed  based on how each of
the activities of the Bank supports the others. For example,  commercial lending
is  dependent  upon the ability of the Bank to fund itself with retail  deposits
and other borrowings and to manage interest rate and credit risk. This situation
is also similar for  consumer,  residential,  multi-family  and  non-residential
mortgage lending.  Accordingly,  all significant  operating  decisions are based
upon analysis of the Bank as one operating segment.

                                      -5-

<PAGE>

                 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (unaudited)


2. EARNINGS PER SHARE

Basic  earnings  per share is computed by dividing  income  available  to common
stockholders by the weighted average number of common shares outstanding for the
period.  Diluted  earnings per share reflects the potential  dilution that could
occur if  securities  or other  contracts  to issue  common stock (such as stock
options)  were  exercised  or resulted in the  issuance of common  stock.  These
potentially  dilutive  shares would then be included in the  weighted  number of
shares outstanding for the period using the treasury stock method. Shares issued
and shares  re-acquired  during any period are  weighted  for the portion of the
period that they were outstanding.

The  computation  of both basic and  diluted  earnings  per share  includes  the
Employee  Stock   Ownership  Plan  ("ESOP")  shares   previously   allocated  to
participants  and shares committed to be released for allocation to participants
and restricted stock plan ("RSP") shares that have vested or have been allocated
to participants.  ESOP and RSP shares that have been purchased but not committed
to be released have not been considered in computing basic and diluted  earnings
per share.

The following is a  reconciliation  of the  numerators and  denominators  of the
basic and diluted earnings per share computation (in thousands, except per share
data):

<TABLE>
<CAPTION>
                                                                   For the Three Months Ended March 31, 2006
                                                             -------------------------------------------------------
                                                                                    Weighted
                                                               Income            average shares              Per
                                                             (numerator)          (denominator)         share amount
                                                             -----------          -------------         ------------
<S>                                                          <C>                       <C>               <C>
    Basic earnings per share:
       Income available to common stockholders                $   1,049                 10,358            $    0.10
       Effect of dilutive common stock equivalents                    0                    435                 0.00
                                                              ---------                 ------            ---------
    Diluted earnings per share:
       Income available to common stockholders                $   1,049                 10,793            $    0.10
                                                              =========                 ======            =========

</TABLE>

<TABLE>
<CAPTION>
                                                                   For the Three Months Ended March 31, 2005
                                                             -------------------------------------------------------
                                                                                    Weighted
                                                               Income            average shares              Per
                                                             (numerator)          (denominator)         share amount
                                                             -----------          -------------         ------------
<S>                                                          <C>                       <C>               <C>
    Basic earnings per share:
       Income available to common stockholders                $   1,120                 11,231            $    0.10
       Effect of dilutive common stock equivalents                    0                    449                 0.00
                                                              ---------                 ------            ---------
    Diluted earnings per share:
       Income available to common stockholders                $   1,120                 11,680            $    0.10
                                                              =========                 ======            =========
</TABLE>

                                      -6-

<PAGE>

                 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (unaudited)


3. STOCK-BASED COMPENSATION

Effective  January  1, 2006,  the  Company  adopted  SFAS  123(R),  "Share-Based
Payment."  Under the  accounting  requirements,  the Company is now  required to
recognize  compensation expenses related to stock options outstanding based upon
the fair value of such  awards at the date of grant  over the  period  that such
awards are earned.  For the quarter ended March 31, 2006, the Company recognized
approximately  $159,000 of  compensation  expense  relating to its stock  option
plans and  approximately  $41,000  of income  tax  benefit  resulting  from this
expense for that period.

At the  Annual  Meeting  held on April 22,  2003,  stockholders  of the  Company
approved the Company's 2003 Stock Option Plan making available 165,746 shares of
common stock for granting.  Prior to April 22, 2003,  the Company did not have a
Stock Option Plan.  Under the 2003 Stock Option Plan,  each stock option granted
entitles  the holder to purchase one share of the  Company's  common stock at an
exercise price of not less than the fair market value of a share of common stock
at the date of grant. Options granted vest over a five-year period from the date
of grant and will expire no later than 10 years following the grant date. During
the year ended  December  31,  2003,  the  Company  granted  165,746  options to
purchase  common  shares of the  Company.  As a result of the  January  20, 2004
second-step  mutual-to-stock  conversion,  the shares  associated  with the 2003
Stock Option Plan converted at the exchange ratio of 3.7231 to 617,086 shares.

At the Annual Meeting held on August 25, 2004 and reconvened on August 31, 2004,
stockholders of the Company approved the Company's 2004 Stock Option Plan making
available  703,591  shares for  granting  under the plan.  During the year ended
December 31, 2004, the Company granted 694,569 options to purchase common shares
of the  Company.  Under the 2004 Stock Option  Plan,  each stock option  granted
entitles  the holder to purchase one share of the  Company's  common stock at an
exercise price of not less than the fair market value of a share of common stock
at the date of grant. Options granted vest over a five-year period from the date
of grant and will expire no later than 10 years following the grant date.

The fair value of each option  grant is estimated on the date of grant using the
Black-Scholes  options price model. The following  weighted average  assumptions
were  utilized for grants in 2006,  which have a weighted  average fair value of
$3.59:  dividend  yield of  1.50%;  expected  volatility  of  25.47%;  risk-free
interest rate of 4.63%; and, expected life of five years. The following weighted
average  assumptions  were  utilized  for grants in 2005,  which have a weighted
average fair value of $3.40:  dividend  yield of 2.00%;  expected  volatility of
32.51%;  risk-free interest rate of 3.83%; and, expected life of five years. The
following  weighted average  assumptions were utilized for grants in 2004, which
have a weighted average fair value of $3.04:  dividend yield of 1.60%;  expected
volatility of 32.85%;  risk-free  interest rate of 3.33%;  and, expected life of
five years. The following weighted average  assumptions were utilized for grants
in 2003,  which have a weighted  average fair value of $1.80:  dividend yield of
0.00%;  expected  volatility of 29.44 %; risk-free  interest rate of 3.01%; and,
expected life of five years.

As of March 31, 2006, there were  approximately $3.2 million and $2.7 million of
total unrecognized  compensation  expense relating to unvested stock options and
unvested restricted stock plan shares, respectively. These costs are expected to
be recognized over a weighted average period of 3.1 years and 3.2 years, for the
stock option plans and restricted stock plans, respectively.

The Company  continues  to recognize  compensation  expense for shares of common
stock awarded under the  restricted  stock plans over the vesting  period at the
fair market value of the shares on the dates they are awarded.

                                      -7-

<PAGE>

                 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (unaudited)


For the  quarters  ended  March  31,  2006  and  2005,  the  Company  recognized
approximately  $200,000 and  $202,000,  respectively,  of  compensation  expense
relating to the restricted stock plans, and  approximately  $72,000 and $73,000,
respectively,  of income  tax  benefit  resulting  from this  expense  for these
periods.

The following is a summary of the Company's  stock options plans for the quarter
ended March 31, 2006:

                                                    Weighted
                                                    Average
                                        Shares   Exercise Price
                                        ------   --------------
Outstanding at beginning of period..  1,213,301    $    8.25
Granted.............................     83,500        13.50
Exercised...........................          -            -
Forfeited...........................       (800)       10.15
Expired.............................          -            -
                                      ---------    ---------
Outstanding at end of period........  1,296,001    $    8.59
                                      =========    =========
Exercisable at end of period........    337,167    $    7.29
                                      =========    =========
Weighted average remaining
    contractual life................               8.0 years
Aggregate intrinsic value for
    exercisable options.............               $    7.23

The  following  is a summary of the  Company's  restricted  stock  plans for the
quarter ended March 31, 2006:

                                                    Weighted
                                                  Average Grant
                                        Shares   Date Fair Value
                                        ------   ---------------
Outstanding at beginning of period..    334,560    $    8.84
Granted.............................     27,200        13.50
Exercised...........................          -            -
Forfeited...........................          -            -
Expired.............................          -            -
                                        -------    ---------
Outstanding at end of period........    361,760    $    9.19
                                        =======    =========


The Company has established an ESOP covering eligible employees with one year of
service, as defined by the ESOP. The Company accounts for the ESOP in accordance
with the  American  Institute  of  Certified  Public  Accountants'  Statement of
Position  ("SOP") No. 93-6,  Employers'  Accounting for Employee Stock Ownership
Plans.  SOP No. 93-6  addresses  the  accounting  for shares of stock  issued to
employees  by  an  ESOP.  SOP  No.  93-6  requires  that  the  employer   record
compensation  expense in the amount equal to the fair value of shares  committed
to be released from the ESOP to employees.

Compensation  expense for the ESOP is recorded at an amount  equal to the shares
allocated by the ESOP  multiplied by the average fair market value of the shares
during the year. The Company  recognizes  compensation  expense ratably over the
year for the ESOP  shares  to be  allocated  based  upon the  Company's  current
estimate  of the number of shares  expected to be  allocated  by the ESOP during
each calendar year. The difference between the average fair market value and the
cost of the  shares  allocated  by the  ESOP is  recorded  as an  adjustment  to
additional paid-in-capital.

                                      -8-

<PAGE>

                 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (unaudited)


4. RECENT ACCOUNTING PRONOUNCEMENTS

Emerging   Issues   Task   Force   ("EITF")   Issue   03-1,   The   Meaning   of
Other-Than-Temporary  Impairment  and Its  Application  to Certain  Investments,
provides  guidance for  determining  when an investment is considered  impaired,
whether  impairment is  other-than-temporary,  and  measurement of an impairment
loss. An investment is considered  impaired if the fair value of the  investment
is   less   than   its   cost.   Generally,    an   impairment   is   considered
other-than-temporary unless: (i) the investor has the ability and intent to hold
an investment  for a reasonable  period of time  sufficient  for an  anticipated
recovery of fair value up to (or beyond)  the cost of the  investment;  and (ii)
evidence  indicating  that the cost of the  investment is  recoverable  within a
reasonable period of time outweighs  evidence to the contrary.  If impairment is
determined  to be  other-than-temporary,  then  an  impairment  loss  should  be
recognized equal to the difference  between the  investment's  cost and its fair
value. Certain disclosure requirements of EITF 03-1 were adopted in 2003 and the
Company began  presenting the new disclosure  requirements  in its  consolidated
financial  statements for the year ended December 31, 2003. The  recognition and
measurement   provisions  were  initially  effective  for   other-than-temporary
impairment  evaluations  in  reporting  periods  beginning  after June 15, 2004.
However,  in September 2004, the effective date of these  provisions was delayed
until the finalization of a Financial  Accounting Standards Board ("FASB") Staff
Position ("FSP") to provide additional  implementation  guidance.  In June 2005,
the  FASB  decided  not  to  provide  additional  guidance  on  the  meaning  of
other-than-temporary  impairment,  but directed its staff to issue  proposed FSP
EITF 03-1-a, Implementation Guidance for the Application of Paragraph 16 of EITF
Issue No. 03-1, as final.  The final FSP will supersede EITF Issue No. 03-1, The
Meaning of Other-Than-Temporary

Impairment and Its Application to Certain Investments,  and EITF Topic No. D-44,
Recognition  of  Other-Than-Temporary  Impairment  upon  the  Planned  Sale of a
Security  Whose Cost Exceeds Fair Value.  The final FSP (re-titled FSP Financial
Accounting   Standards  ("FAS")  115-1,  The  Meaning  of   Other-Than-Temporary
Impairment and Its Application to Certain Investments) will replace the guidance
set  forth in  paragraphs  10-18 of  Issue  03-1  with  references  to  existing
other-than  temporary  impairment  guidance,  such as FASB  Statement  No.  115,
Accounting for Certain Investments in Debt and Equity Securities, Securities and
Exchange  Commission  ("SEC") Staff Accounting  Bulletin No. 59,  Accounting for
Noncurrent Marketable Equity Securities, and Accounting Principles Board ("APB")
Opinion No. 18, The Equity Method of Accounting for Investments in Common Stock.
FASB   Staff   Position   No.  FAS  115-1  and  FAS   124-1,   The   Meaning  of
Other-Than-Temporary  Impairment and Its Application to Certain Investments (the
"FSP"),  was issued on November 3, 2005 and addresses the  determination of when
an  investment  is  considered  impaired,  whether the  impairment is other than
temporary and how to measure an impairment loss. The FSP replaces the impairment
guidance  in EITF  Issue No.  03-1 with  references  to  existing  authoritative
literature concerning other-than-temporary  determinations (principally SFAS No.
115 and SEC Staff Accounting Bulletin 59). Under the FSP, impairment losses must
be recognized in earnings equal to the entire difference  between the security's
cost and its fair value at the financial  statement  date,  without  considering
partial  recoveries  subsequent  to that  date.  The FSP also  requires  that an
investor  recognize an  other-than-temporary  impairment loss when a decision to
sell a security has been made and the investor does not expect the fair value of
the security to fully  recover  prior to the expected  time of sale.  The FSP is
effective for reporting  periods  beginning after December 15, 2005. The Company
does not expect that the  application of the FSP will have a material  impact on
its  financial   condition,   results  of  operations  or  financial   statement
disclosures.

                                      -9-

<PAGE>

                 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (unaudited)


5. INVESTMENT SECURITIES

The  amortized  cost,  gross  unrealized  gains and losses and fair value of the
Company's investment securities  available-for-sale  and held-to-maturity are as
follows (in thousands):

<TABLE>
<CAPTION>
                                                                               March 31, 2006
                                                          --------------------------------------------------------
                                                                             Gross          Gross
                                                            Amortized      unrealized     unrealized        Fair
                                                              cost           gains          losses          value
                                                          --------------------------------------------------------
<S>                                                      <C>              <C>            <C>           <C>
   Available-for-sale
     U.S. government obligations                          $     2,000      $       -      $     (93)    $     1,907
     Mortgage-backed securities:
       FHLMC                                                   52,886              1         (1,335)         51,552
       FNMA                                                    26,171              6           (585)         25,592
     Equity securities                                          1,000              -            (79)            921
                                                          -----------      ---------      ---------     -----------
         Total                                            $    82,057      $       7      $  (2,092)    $    79,972
                                                          ===========      =========      =========     ===========
</TABLE>


<TABLE>
<CAPTION>
                                                                               March 31, 2006
                                                          --------------------------------------------------------
                                                                             Gross          Gross
                                                            Amortized      unrealized     unrealized        Fair
                                                              cost           gains          losses          value
                                                          --------------------------------------------------------
<S>                                                      <C>              <C>            <C>           <C>
   Held-to-maturity
     Mortgage-backed securities:
       FHLMC                                              $    37,535      $       -      $  (1,112)    $    36,423
       FNMA                                                    50,755              3         (1,158)         49,600
       GNMA                                                     2,754              5            (36)          2,723
     Other debt securities                                         10              -              -              10
                                                          -----------      ---------      ---------     -----------
       Total                                              $    91,054      $       8      $  (2,306)    $    88,756
                                                          ===========      =========      =========     ===========
</TABLE>

<TABLE>
<CAPTION>
                                                                             December 31, 2005
                                                          --------------------------------------------------------
                                                                             Gross          Gross
                                                            Amortized      unrealized     unrealized        Fair
                                                              cost           gains          losses          value
                                                          --------------------------------------------------------
<S>                                                      <C>              <C>            <C>           <C>
   Available-for-sale
     U.S. government obligations                          $     2,000      $       -      $     (94)    $     1,906
     Mortgage-backed securities:
       FHLMC                                                   56,076              1         (1,331)         54,746
       FNMA                                                    28,334              5           (612)         27,727
     Equity securities                                          1,000              -            (60)            940
                                                          -----------      ---------      ---------     -----------
         Total                                            $    87,410      $       6      $  (2,097)    $    85,319
                                                          ===========      =========      =========     ===========
</TABLE>

                                      -10-

<PAGE>

                 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                             December 31, 2005
                                                          --------------------------------------------------------
                                                                             Gross          Gross
                                                            Amortized      unrealized     unrealized        Fair
                                                              cost           gains          losses          value
                                                          --------------------------------------------------------
<S>                                                      <C>              <C>            <C>           <C>
   Held-to-maturity
     Mortgage-backed securities:
       FHLMC                                              $    39,234      $       -       $   (976)    $    38,258
       FNMA                                                    53,469              4         (1,059)         52,414
       GNMA                                                     2,908             11            (26)          2,893
     Other debt securities                                         10              -              -              10
                                                          -----------      ---------       --------     -----------
         Total                                            $    95,621      $      15       $ (2,061)    $    93,575
                                                          ===========      =========       ========     ===========
</TABLE>


6. LOANS RECEIVABLE

Major groupings of loans are as follows (in thousands):

<TABLE>
<CAPTION>
                                                                            March 31,               December 31,
                                                                              2006                      2005
                                                                         -------------------------------------
<S>                                                                   <C>                       <C>
   Mortgages:
     Residential, 1-4 family                                             $   242,734               $   243,188
     Non-residential and multi-family                                        288,478                   271,600
     Construction                                                              8,635                     9,525
   Automobile                                                                175,877                   185,812
   Commercial                                                                 33,146                    24,794
   Other                                                                       3,633                     3,830
                                                                         -----------               -----------
   Loans receivable                                                          752,503                   738,749
   Deferred loan fees and costs                                                  166                       197
   Allowance for loan losses                                                  (5,899)                   (5,763)
                                                                         -----------               -----------
   Loans receivable, net                                                 $   746,770               $   733,183
                                                                         ===========               ===========
</TABLE>


A summary of the  activity  in the  allowance  for loan losses is as follows (in
thousands):

<TABLE>
<CAPTION>
                                                                              For the Three Months Ended
                                                                         -------------------------------------
                                                                           March 31,                 March 31,
                                                                              2006                      2005
                                                                         -------------------------------------
<S>                                                                   <C>                       <C>
   Balance, beginning of period                                          $     5,763               $     4,427
   Provision for loan losses                                                     416                       445
   Recoveries                                                                    103                        70
   Loans charged-off                                                            (383)                     (237)
                                                                         -----------               -----------
   Balance, end of period                                                $     5,899               $     4,705
                                                                         ===========               ===========
</TABLE>

                                      -11-

<PAGE>

                 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (unaudited)


7. DEPOSITS

Deposits are summarized as follows (in thousands):

<TABLE>
<CAPTION>
                                                                           March 31,               December 31,
                                                                              2006                      2005
                                                                         -------------------------------------
<S>                                                                    <C>                       <C>
     Non-interest-bearing checking accounts                              $    75,627               $    58,152
     Interest-bearing checking accounts                                        3,879                     3,320
     Savings and club accounts                                                79,768                    60,608
     Money market accounts                                                    92,564                   117,930
     Certificate of deposit accounts                                         419,332                   366,461
                                                                         -----------               -----------
                                                                         $   671,170               $   606,471
                                                                         ===========               ===========
</TABLE>

8. OTHER BORROWED FUNDS

1. Short-Term Borrowings
   ---------------------

Short-term  borrowings,  which  consist  primarily  of  Federal  Home  Loan Bank
("FHLB") advances,  generally have maturities of less than one year. The details
of these borrowings are presented below (in thousands, except percentages):

<TABLE>
<CAPTION>
                                                                                       At or For The
                                                                         -----------------------------------------
                                                                          Three Months              Twelve Months
                                                                              Ended                     Ended
                                                                            March 31,               December 31,
                                                                              2006                      2005
                                                                         -----------------------------------------

<S>                                                                    <C>                       <C>
Average balance outstanding                                              $    65,842               $    75,411
Maximum amount outstanding at any month end during the period                 91,975                   115,000
Balance outstanding at period end                                             29,550                    86,650
Weighted average interest rate during the period                                4.52%                     3.59%
Weighted average interest rate at period end                                    4.77%                     4.13%
</TABLE>

2. Long-Term Borrowings
   --------------------

At March 31, 2006, long-term borrowings, which consist of FHLB advances, totaled
$179.9 million.  Advances consist of fixed-rate advances that will mature within
one to nine years.  The  advances are  collateralized  by FHLB stock and certain
first  mortgage  loans,   first-lien  home  equity  loans  and   mortgage-backed
securities. These advances had a weighted average interest rate of 3.82%.

As of March 31, 2006, long-term FHLB advances mature as follows (in thousands):

   2006                                                        $    42,150
   2007                                                             57,000
   2008                                                             35,100
   2009                                                              8,000
   2010                                                             10,000
   Thereafter                                                       27,700
                                                               -----------
                                                               $   179,950
                                                               ===========

                                      -12-

<PAGE>

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


General

         Management's discussion and analysis of financial condition and results
of  operations  is  intended  to  provide   assistance  in   understanding   our
consolidated  financial condition and results of operations.  The information in
this section should be read with the consolidated  interim financial  statements
and the notes thereto included in this Form 10-Q.

         Our results of operations  are primarily  dependent on our net interest
income.  Net interest  income is a function of the balances of  interest-earning
assets  outstanding in any one period, the yields earned on those assets and the
interest paid on deposits and borrowed funds that were  outstanding in that same
period.  To a lesser extent,  the relative  levels of our other income and other
expenses  also  affect our  results of  operations.  Our other  income  consists
primarily of fees and service  charges,  commissions and gains and losses on the
sale of loans and investments.  The other expenses consist primarily of employee
compensation  and benefits,  occupancy and equipment  expenses,  data processing
costs,  marketing  costs,  professional  fees,  office  supplies,  telephone and
postage costs. Our results of operations are also significantly  impacted by the
amount of provisions for loan losses which, in turn, are dependent  upon,  among
other things,  the size and makeup of the loan portfolio,  loan quality and loan
trends.


Forward-Looking Statements

         This report  contains  certain  forward-looking  statements  within the
meaning  of  Section  27A of  the  Securities  Act  of  1933,  as  amended  (the
"Securities  Act"), and Section 21 E of the Securities  Exchange Act of 1934, as
amended  (the  "Exchange  Act").   The  Company  intends  such   forward-looking
statements  to be  covered by the safe  harbor  provisions  for  forward-looking
statements  contained  in the  Private  Securities  Reform  Act of 1995,  and is
including  this  statement  for the  purpose  of these safe  harbor  provisions.
Forward-looking statements,  which are based on certain assumptions and describe
future  plans,  strategies  and  expectations  of  the  Company,  are  generally
identified  by use of the words  "believe,"  "expect,"  "intend,"  "anticipate,"
"estimate," "project," or similar expressions.  The Company's ability to predict
results  or the  actual  effect  of future  plans or  strategies  is  inherently
uncertain.  Factors which could have a material adverse effect on the operations
of the Company and its subsidiaries  include, but are not limited to, changes in
interest rates,  general economic  conditions,  legislative/regulatory  changes,
monetary and fiscal policies of the U.S.  Government,  including policies of the
U.S.  Treasury and the Federal Reserve Board,  the quality or composition of the
loan  or  investment  portfolios,  demand  for  loan  products,  deposit  flows,
competition,  demand for  financial  services in the  Company's  market area and
accounting  principles and guidelines.  These risks and uncertainties  should be
considered in evaluating  forward-looking  statements and undue reliance  should
not be placed on such statements. Further information concerning the Company and
its business,  including  additional  factors that could  materially  effect the
Company's financial results, is included in the Company's filings with the SEC.

         The  Company  does  not  undertake  - and  specifically  disclaims  any
obligation - to release  publicly the results of any revisions which may be made
to any  forward-looking  statements to reflect events or circumstances after the
date  of  such  statements  or to  reflect  the  occurrence  of  anticipated  or
unanticipated events.

                                      -13-


<PAGE>

Critical Accounting Policies, Judgments and Estimates

       The  accounting  and reporting  policies of the Company  conform with the
accounting  principles  generally  accepted in the United  States of America and
general practices within the financial services industry. The preparation of the
financial statements in conformity with accounting principles generally accepted
in the United  States of  America  requires  management  to make  estimates  and
assumptions that affect the amounts reported in the financial statements and the
accompanying notes. Actual results could differ from those estimates.

       Allowance for Loan Losses.  The Company recognizes that the determination
of the  allowance  for loan  losses  involves a higher  degree of  judgment  and
complexity than its other significant  accounting  policies.  The balance in the
allowance  for loan  losses  is  determined  based on  management's  review  and
evaluation of the loan portfolio in relation to past loss  experience,  the size
and composition of the portfolio,  current  economic events and conditions,  and
other  pertinent  factors,  including  management's  assumptions  as  to  future
delinquencies, recoveries and losses. All of these factors may be susceptible to
significant  change.  To the extent  actual  outcomes  differ from  management's
estimates,  additional  provisions  for loan losses may be  required  that would
adversely impact earnings in future periods.

       Intangible  Assets.  Intangible  assets,  such as  goodwill  and the core
deposit intangible associated with the January 2003 acquisition of First Bank of
Central Jersey,  are subject to annual  impairment tests and, in the case of the
core deposit intangible,  amortization of the asset through a charge to expense.
To the extent the  outcome of the  impairment  tests  differ  from the  carrying
value,  additional  charges to expense  could be required to reduce the carrying
value, which would adversely impact earnings in future periods.

       Income  Taxes.  Under the  liability  method,  deferred  tax  assets  and
liabilities  are  determined  based  on the  difference  between  the  financial
statement  and tax basis of assets  and  liabilities.  Deferred  tax  assets are
subject to  management's  judgment  based upon  available  evidence  that future
realization is more likely than not. If management  determines  that the Company
may be unable  to  realize  all or part of the net  deferred  tax  assets in the
future,  a direct  charge to income tax  expense  may be  required to reduce the
recorded value of the net deferred tax assets to the expected realizable amount,
thereby impacting earnings.
Comparison of Financial Condition at March 31, 2006 and December 31, 2005

       Assets.  Total  assets  reached  $979.2  million  on March 31,  2006,  an
increase of 0.5%,  or $5.3  million,  from $973.9  million on December 31, 2005.
This growth was primarily  attributable  to an increase in net loans,  partially
offset by a decline in investment securities.

       Between  December  31,  2005 and March 31,  2006,  investment  securities
decreased $9.9 million,  or 5.5%,  from $180.9 million to $171.0  million.  This
decrease was due to maturities and principal repayments during the first quarter
of 2006.  There was a $6,000 increase in the unrealized  market value associated
with investment  securities designated  available-for-sale.  FHLB stock holdings
decreased 19.4%, or $2.6 million, to $10.7 million at March 31, 2006, from $13.3
million at December 31, 2005.

       Net loans  increased  1.9%, or $13.6 million,  to $746.8 million at March
31, 2006,  from $733.2 million at December 31, 2005.  This growth includes $21.1
million in originations and purchased loans, net of principal repayments, offset
by $7.1  million in loan sales,  the  amortization  of the premium on  purchased
loans and net deferred loan costs,  along with a provision of $416,000  recorded
to  the  allowance  for  loan  losses.

                                      -14-

<PAGE>

During the quarter,  the Bank sold approximately $7.1 million of loans that were
providing  yields below current  market  levels.  The most  significant  changes
during  the  three   months   ended  March  31,   2006  were  in   multi-family/
non-residential  mortgage  and  commercial  loans.  Multi-family/non-residential
mortgages  increased  by  $16.9  million,  or 6.2%,  to  $288.5  million,  while
commercial  loans  increased  by $8.4  million,  or  33.7%,  to  $33.1  million.
Automobile loans declined $9.9 million,  or 5.3%, to $175.9 million,  as greater
emphasis was placed on commercial and non-residential mortgage products.

      On  March 31, 2006,  total loans of $752.5 million were comprised of 38.3%
in  multi-family/non-residential   mortgage  loans,  23.9%  in  consumer  loans,
comprised  mostly of  direct  automobile  loans for both new and used  vehicles,
17.3% in one-to-four  family real estate loans, 15.0% in home equity loans, 4.4%
in commercial loans and 1.1% in construction loans.

      The allowance for loan losses was $5.9 million at March 31, 2006, compared
to $5.8 million at December 31, 2005.  This reflects a provision for loan losses
of $416,000 for the three-month  period,  offset by net charge-offs of $280,000.
The ratios of the allowance for loan losses to total loans and of non-performing
assets to total  assets  were 0.78% and 0.04%,  respectively,  on both March 31,
2006 and December 31, 2005.

      Liabilities. Total liabilities  increased $6.6 million, or 0.7%, to $885.2
million at March 31,  2006,  from  $878.6  million at  December  31,  2005.  The
increase  in total  liabilities  resulted  primarily  from an  increase of $64.7
million,  or 10.7%, in deposits,  partially offset by a decline in FHLB advances
of $57.1  million,  or 21.4%.  The balance of the change was  attributable  to a
decline in total other liabilities of $1.0 million, or 18.6%.

      Deposits  reached  $671.2 million at March 31, 2006, an increase of  $64.7
million,  or 10.7%,  from the $606.5 million reported at December 31, 2005. This
growth resulted from increases in  certificates of deposit of $52.9 million,  or
14.4%,  from the $366.5 million reported at year-end 2005, and in core deposits,
which consist of checking,  savings and money market accounts, of $11.8 million,
or 4.9%.  Core deposits  represented  37.5% of total deposits at March 31, 2006,
compared to 39.6% at December 31, 2005.

      The $57.1 million decrease in FHLB advances between December 31, 2005  and
March 31, 2006 was primarily due to the growth in deposits.

      Equity. Stockholders' equity totaled $94.0 million  at  March 31, 2006,  a
decrease of 1.3%, or $1.3 million,  from $95.3 million at December 31, 2005. The
decline was  attributable  to the  repurchase of 185,393 shares of the Company's
common stock in open market transactions, partially offset by the net income for
the  period.  On  February  23,  2006,  the  Company  announced a new program to
repurchase  up  to  an  additional  5%  of  its  outstanding  common  stock,  or
approximately  572,294  shares.  Additionally,  on March 29, 2006, the Company's
Board of Directors declared a quarterly cash dividend of $0.05 per common share,
which is payable on April 28, 2006.

      The repurchase of shares associated  with the Company's  stock  repurchase
programs  resulted in a  cumulative  reduction  in equity of $2.5  million.  The
decrease in accumulated  other  comprehensive  loss, net of tax effect,  totaled
$5,000.

                                      -15-

<PAGE>

Average Balance Sheet.  The following  table sets forth certain  information for
the three months ended March 31, 2006 and 2005. The average yields and costs are
derived  by  dividing  income or  expense  by the  average  balance of assets or
liabilities,  respectively,  for the periods  presented.  Average  balances  are
derived from daily  average  balances.  The table does not include the allowance
for loan losses in the average balances of loans receivable. Management does not
believe that this causes any material differences in the information presented.

<TABLE>
<CAPTION>
                                                                      For the Three Months Ended March 31,
                                                    ------------------------------------------------------------------------
                                                                  2006                                  2005
                                                    ----------------------------------      --------------------------------
                                                      Average                Average          Average              Average
                                                      Balance   Interest    Yield/Cost        Balance  Interest   Yield/Cost
                                                      -------   --------    ----------        -------  --------   ----------
<S>                                                <C>        <C>            <C>           <C>         <C>         <C>
Interest-earning assets:
  Loans receivable, net(1)                           $742,164   $11,340        6.11%         $579,415    $8,220      5.67%
  Securities(2)                                       180,166     1,763        3.91           241,378     2,270      3.76
  Other interest-earning assets(3)                     12,839       173        5.39            12,894        91      2.82
                                                     --------   -------      ------          --------    ------    ------
     Total interest-earning assets                    935,169    13,276        5.68           833,687    10,581      5.08
Non-interest-earning assets                            43,713                                  40,974
                                                     --------                                --------
     Total assets                                    $978,882                                $874,661
                                                     ========                                ========
Interest-bearing liabilities:
 Checking accounts(4)                                 $60,778       $14        0.09           $52,270       $13      0.10
 Savings and club accounts                             60,750        87        0.57            66,185        82      0.50
 Money market accounts                                106,167       555        2.09           157,082       769      1.96
 Certificates of deposit                              396,581     3,701        3.73           263,026     1,856      2.82
 Other borrowed funds                                 257,473     2,542        3.95           226,889     1,793      3.16
                                                     --------   -------      ------          --------    ------    ------
   Total interest-bearing liabilities                 881,749     6,899        3.13           765,452     4,513      2.36
                                                                 ------                                  ------
Non-interest-bearing liabilities                        2,652                                   4,977
                                                     --------                                --------
     Total liabilities                                884,401                                 770,429
Stockholders' equity                                   94,481                                 104,232
                                                     --------                                --------
     Total liabilities and stockholders' equity      $978,882                                $874,661
                                                     ========                                ========
Net interest income                                              $6,377                                  $6,068
                                                                 ======                                  ======
Net interest rate spread(5)                                                    2.55%                                2.72%
Net interest margin(6)                                                         2.73%                                2.91%
Ratio of average interest-earning assets to
   average interest-bearing liabilities                                      106.06%                              108.91%
</TABLE>

_______________________________
(1)  Non-accruing  loans have been included in loans receivable,  and the effect
     of such inclusion was not material.
(2)  Includes  U.S.  government  obligations,   mortgage-backed  securities  and
     interest-bearing deposits in banks.
(3)  Includes FHLB stock at cost.
(4)  Includes both interest-bearing and non-interest bearing checking accounts.
(5)  Net interest  rate spread  represents  the  difference  between the average
     yield on  interest-earning  assets and the average cost of interest-bearing
     liabilities (including non-interest bearing checking accounts).
(6)  Net  interest  margin  represents  net interest  income as a percentage  of
     average interest-earning assets.

                                      -16-

<PAGE>

Comparison of Operating Results for Three Months Ended March 31, 2006 and 2005

         Net Income. Net income decreased by $71,000, to $1.049 million, for the
three  months  ended March 31,  2006,  compared  to $1.120  million for the same
period in 2005,  a 6.3%  decline.  Diluted net income per common share was $0.10
for both the first  quarter  of 2006 and 2005.  The  decrease  in net income was
primarily  attributable  to a $460,000  increase in other  expense and a $23,000
decrease in other income, partially offset by an increase in net interest income
of $309,000,  a $29,000  decrease in the provision for loan losses and a $74,000
decrease in income tax expense as a result of lower  pre-tax  earnings.  Results
for the first quarter of 2006 included $118,000,  or $0.01 per diluted share, in
after-tax  stock  option  expense  relating  to the  adoption  of  Statement  of
Financial Accounting Standards (SFAS) No. 123(R),  "Share-Based  Payment," which
became effective January 1, 2006.

         Net Interest  Income.  Net interest  income grew $309,000,  or 5.1%, to
$6.4 million for the three months ended March 31, 2006, compared to $6.1 million
for the same period in 2005,  despite the impact of the flat yield curve.  Total
interest  income  increased by $2.7  million,  to $13.3  million,  for the three
months  ended March 31, 2006,  while total  interest  expense  increased by $2.4
million,  to $6.9  million,  when  compared to the same three month  period last
year.  The net interest  margin for the first  quarter of 2006 declined 18 basis
points to 2.73% from 2.91% in the same  period last year,  and  declined 5 basis
points  from the  2.78%  in the  fourth  quarter  of  2005.  The  year-over-year
compression was the result of a series of increases in short-term interest rates
by the Federal Reserve Board and the prolonged, flat yield curve.

         The 25.5%  increase in total  interest  income was  primarily  due to a
$101.5  million,  or 12.2%,  increase  in the average  interest-earning  assets,
combined  with a 60 basis point  increase in the average  yield  earned on these
assets when  compared to the same  quarter of the prior  year.  The  increase in
interest-earning  assets  was a result of the  Company's  growth  strategy.  The
increase  in the  average  yield was  primarily  attributable  to higher  market
interest rates on originated loans, a higher yield on investment  securities and
increased dividend income resulting from a higher yield on FHLB stock balances.

         The 52.9% increase in total interest expense primarily  resulted from a
$116.3 million, or 15.2%, increase in the average  interest-bearing  liabilities
coupled  with a 77 basis  point  increase  in the  average  cost of  funds  when
compared to the same quarter of the prior year. The increase in the average cost
of  interest-bearing  liabilities  was primarily  attributable  to higher market
interest rates, as well as a significant increase in higher cost certificates of
deposits and other borrowed funds, which consist of FHLB advances.  The majority
of the increase in average  interest-bearing  liabilities  for the quarter ended
March 31,  2006 was a result of a $133.6  million,  or  50.8%,  increase  in the
average  balance of certificate of deposit  accounts along with a $30.6 million,
or 13.5%,  increase in the average balance of other borrowed funds over the same
quarter of the prior year.

         Provision  for Loan Losses.  We maintain an  allowance  for loan losses
through  provisions for loan losses that are charged to earnings.  The provision
is made to  adjust  the  total  allowance  for loan  losses  to an  amount  that
represents  management's  best estimate of losses known and inherent in the loan
portfolio at the balance  sheet date that are both  probable and  reasonable  to
estimate. In estimating the known and inherent losses in the loan portfolio that
are both probable and reasonable to estimate,  management considers factors such
as an internal analysis of credit quality, general levels of loan delinquencies,
collateral values,  the Bank's historical loan loss experience,  changes in loan
concentrations by loan category,  peer group information and economic and market
trends affecting our market area. The provision established for loan losses each
month reflects management's assessment of these factors in relation to the level
of the  allowance at such time.  Management  allocates  the allowance to various
categories based on its classified  assets,  historical loan loss experience and
its  assessment  of the  risk  characteristics  of each  loan  category  and the
relative  balances at month end of each loan category.  Management's  assessment
did not change either in estimation method or assumptions during either period.

                                      -17-

<PAGE>

         The provision for loan losses declined by $29,000, to $416,000, for the
three months ended March 31, 2006,  from  $445,000 for the same quarter in 2005.
Total  charge-offs  amounted to $383,000  and  recoveries  amounted to $103,000,
resulting  in a net  charge-off  amount of $280,000  for the three  months ended
March 31, 2006. This represents a $113,000  increase in net charge-offs over the
same quarter in 2005.

         Other Income.  Other income decreased $23,000, or 2.6%, to $876,000 for
the three months ended March 31, 2006, compared to $899,000 for the same quarter
in 2005.  This was  primarily  the result of a decrease of $18,000 in commission
income generated by sales from Synergy  Financial  Services,  Inc. and a $14,000
decrease in service charges and fees on deposit  accounts.  These decreases were
partially offset by a $9,000 increase in other income, primarily from bank-owned
life insurance.

         Other Expenses.  Other expenses  increased  $460,000,  or 9.8%, to $5.2
million for the three months ended March 31, 2006,  compared to $4.7 million for
the same quarter in 2005.  The increase was primarily  attributable  to salaries
and benefits  associated  with the  Company's  growth  strategy of expanding its
branch  network,  coupled with  approximately  $159,000 of pre-tax  stock option
compensation expense associated with the adoption of SFAS No. 123(R).

         Income Tax Expense.  Income tax expense decreased by $74,000, or 10.6%,
during the three months  ended March 31, 2006 when  compared to the same quarter
in 2005, reflecting lower taxable income for the 2006 period.

Liquidity

       The Bank maintains liquid assets at levels it considers  adequate to meet
liquidity needs. The liquidity of the Bank reflects its ability to provide funds
to meet loan requests,  accommodate possible outflows in deposits,  fund current
and  planned   expenditures   and  take   advantage  of  interest   rate  market
opportunities  in  connection  with asset and liability  management  objectives.
Funding loan  requests,  providing  for  liability  outflows and  management  of
interest rate  fluctuations  require  continuous  analysis in order to match the
maturities  of earning  assets with specific  types of deposits and  borrowings.
Bank  liquidity  is  normally  considered  in terms of the nature and mix of the
Bank's sources and uses of funds.

       The  Bank's  primary   sources  of  liquidity  are  deposits,   scheduled
amortization  and  prepayment  of  loans  and  mortgage-backed   securities.  In
addition,  the  Bank  invests  any  excess  funds  in  overnight  federal  funds
investments, which provide liquidity. Its cash and cash equivalents,  defined as
cash and deposits in other financial  institutions  with original  maturities of
three  months or less,  totaled  $9.3  million  at March 31,  2006.  To a lesser
extent,  the earnings and funds provided from operating  activities are a source
of liquidity.

       Liquidity  management is both a daily and long-term  function of business
management.  While scheduled  principal  repayments on loans and mortgage-backed
securities are a relatively  predictable source of funds, deposit flows and loan
and securities  prepayments  are greatly  influenced by general  interest rates,
economic  conditions  and  competition.  If the Bank  requires  funds beyond its
ability to generate them internally,  it has the ability to obtain advances from
the FHLB,  which provides an additional  source of funds. At March 31, 2006, the
Bank's  borrowing limit with the FHLB was $290.5 million,  excluding  repurchase
agreement advances,  subject to collateral requirements.  At March 31, 2006, the
Bank had  $106.9  million of FHLB  advances  outstanding  and $102.6  million in
repurchase agreement advances with the FHLB.

       Management is not aware of any trends,  events or uncertainties that will
have  or are  reasonably  likely  to have a  material  effect  on the  Company's
liquidity,  capital or operations nor is it aware of any current  recommendation
by regulatory authorities,  which, if implemented,  would have a material effect
on liquidity,  capital or operations. The total amount of the Bank's commitments
to extend credit for mortgage and consumer

                                      -18-

<PAGE>

loans as of March 31, 2006 was $61.5  million,  excluding  commitments on unused
lines of credit, which totaled $26.5 million.

       Management  intends to expand the Bank's branch  network  either  through
opening or acquiring branch offices. Three new offices and the relocation of one
branch are planned for 2006.  The Company also intends to actively  consider the
acquisition  of local  financial  institutions  as part of expanding its banking
operations. It does not, however, have any current understandings, agreements or
arrangements  for the expansion of its  business,  other than opening new branch
office locations.

       The following  table discloses the Bank's  contractual  obligations as of
March 31, 2006 (in thousands):

<TABLE>
<CAPTION>
                                              Total         Less Than        1-3 Years        4-5 Years        After
                                                              1 Year                                          5 Years
                                           ---------------------------------------------------------------------------
<S>                                        <C>               <C>              <C>               <C>           <C>
Certificates of deposit                      $419,332          $358,010         $53,316           $7,632        $ 374
FHLB advances (1)                             209,500            88,700          77,100           16,000       27,700
Rental under operating leases                  12,243               941           1,788            1,522        7,992
                                             --------          --------        --------          -------      -------
Total                                        $641,075          $447,651        $132,204          $25,154      $36,066
                                             ========          ========        ========          =======      =======
</TABLE>

________________
(1)  At March 31, 2006,  other  borrowed funds  consisted of FHLB advances.  The
     Bank's  borrowing  limit  with  the  FHLB  was  $290.5  million,  excluding
     repurchase   agreement  advances,   subject  to  collateral   requirements,
     consisting of an overnight line of credit of $61.9  million,  an adjustable
     rate line of credit of $61.9 million and a regular  advance limit of $166.7
     million.

         The following  table  discloses the Bank's  commitments as of March 31,
2006 (in thousands):

<TABLE>
<CAPTION>
                                                   Total       Less Than      1-3 Years     4-5 Years      After
                                                                1 Year                                    5 Years
                                                --------------------------------------------------------------------
<S>                                               <C>           <C>               <C>             <C>     <C>
Lines of Credit (1)                                 $26,518       $   414           $ 557           $ 6     $25,541
Other commitments to extend credit                   61,544        61,544               -             -
                                                   --------     ---------            ----           ---     -------
Total                                              $ 88,062     $  61,958            $557           $ 6     $25,541
                                                   ========     =========            ====           ===     =======
</TABLE>

________________
(1)  Represents amounts committed to customers.

Regulatory Capital Requirements

         The Bank is subject to federal  regulations that impose certain minimum
capital requirements. Quantitative measures, established by regulation to ensure
capital  adequacy,  require the Bank to maintain  amounts and ratios of tangible
and core  capital to adjusted  total assets and of total  risk-based  capital to
risk-weighted  assets. On March 31, 2006, the Bank was in compliance with all of
its regulatory capital  requirements.  The following table sets forth the Bank's
capital position and relativity to regulatory requirements as of March 31, 2006:

                                      -19-

<PAGE>

<TABLE>
<CAPTION>
                                                                  OTS Requirements
                                     ---------------------------------------------------------------------------
                                                                                             Regulatory
                                                                      Minimum           for classification as
                                            Bank actual           capital adequacy        well-capitalized
                                            -----------           ----------------        ----------------
                                        Amount      Ratio        Amount      Ratio       Amount      Ratio
                                        ------      -----        ------      -----       ------      -----
<S>                                  <C>          <C>         <C>          <C>        <C>          <C>
Total risk-based capital
   (to risk-weighted assets)           $92,370      12.52%      $59,036      8.00%      $73,796      10.00%
Tier 1 capital (to risk-weighted        86,471      11.72%          N/A        N/A       44,277       6.00%
   assets)
Tier 1 capital (to adjusted total       86,471       8.85%       39,075      4.00%       48,844       5.00%
   assets)
Tangible capital (to adjusted total     86,471       8.85%       14,653      1.50%          N/A         N/A
   assets)
</TABLE>

Impact of Inflation and Changes Prices

         The consolidated financial statements of the Company and notes thereto,
presented  elsewhere  herein,  have been prepared in accordance  with accounting
principles generally accepted in the United States of America, which require the
measurement of financial  position and operating  results in terms of historical
dollars without considering the change in the relative purchasing power of money
over time and due to  inflation.  The impact of  inflation  is  reflected in the
increased cost of the Company's operations,  primarily those at the Bank. Unlike
most industrial companies,  nearly all of the assets and liabilities of the Bank
are financial.  As a result,  interest rates have a greater impact on the Bank's
performance  than do the effects of general levels of inflation.  Interest rates
do not  necessarily  move in the same  direction  or to the same  extent  as the
prices of goods and services.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Management of Interest Rate Risk and Market Risk

         Quantitative  Analysis.  Management actively monitors its interest rate
risk  exposure.  The  Bank's  objective  is to  maintain a  consistent  level of
profitability  within  acceptable  risk  tolerances  across  a  broad  range  of
potential  interest  rate  environments.  The Bank  uses the  Office  of  Thrift
Supervision  Net Portfolio Value (NPV) Model to monitor its exposure to interest
rate risk, which calculates  changes in net portfolio value.  Reports  generated
from  assumptions  provided and modified by management are reviewed by the Asset
and  Liability  Management  Committee  and  reported  to the Board of  Directors
quarterly. The Interest Rate Sensitivity of Net Portfolio Value Report shows the
degree  to which  balance  sheet  line  items  and the net  portfolio  value are
potentially affected by a 100 to 200 basis point (1/100th of a percentage point)
upward and downward shift (shock) in the Treasury yield curve.

         Management  believes that there has not been a material  adverse change
in market risk during the three month period ended March 31, 2006.

         Qualitative   Analysis.    Because   the   majority   of   the   Bank's
interest-earning  assets  and  interest-bearing  liabilities  are  sensitive  to
changes in interest  rates,  a  significant  form of market risk for the Bank is
interest rate risk, or changes in interest  rates.  The Bank is vulnerable to an
increase  in  interest  rates to the extent  that  interest-bearing  liabilities
mature or re-price more rapidly than interest-earning assets. Our assets include
long-term,  fixed-rate loans and investments, while our primary sources of funds
are deposits and borrowings  with  substantially  shorter  maturities.  Although
having   interest-bearing   liabilities   that  re-price  more  frequently  than
interest-earning  assets is generally beneficial to net interest income during a
period of declining  interest rates,  this type of  asset/liability  mismatch is
generally detrimental during periods of rising interest rates.

                                      -20-

<PAGE>

         The  Board  of  Directors  has   established  an  Asset  and  Liability
Management and Budget Committee that consists of Directors Scott (Chairman),  De
Perez,  Fiore,  Gibbons  and  Putvinski.  The  Committee  meets  quarterly  with
management  to  review  current  investments:   average  lives,   durations  and
re-pricing  frequencies of loans and  securities;  loan and deposit  pricing and
production volumes and alternative funding sources; interest rate risk analysis;
liquidity  and  borrowing  needs;  and a variety of other  assets and  liability
management  topics. The management session of the Committee is held monthly with
President  Fiore presiding and senior  management in attendance.  The results of
the  quarterly  and monthly  meetings of the  Committee are reported to the full
Board at its regular meetings. In addition, the Committee generally meets during
October and November each year with the goal of  developing  an annual  business
and operating plan for presentation to the full Board.

         To reduce the effect of interest  rate changes on net interest  income,
the Bank has adopted various  strategies to enable it to improve the matching of
interest-earning asset maturities to interest-bearing  liability maturities. The
main elements of these strategies include seeking to:

          o    originate loans with adjustable-rate features or fixed-rate loans
               with short  maturities,  such as home equity and consumer  loans,
               comprised mostly of direct automobile loans for both new and used
               vehicles;
          o    expand commercial and industrial loans, which  predominantly have
               variable rates of interest;
          o    increase  production in higher  yielding  commercial  real estate
               loans;
          o    lengthen the maturities of time deposits and  borrowings  when it
               would  be cost  effective  through  the  aggressive  pricing  and
               promotion of  certificates  of deposits and  utilization  of FHLB
               advances;
          o    increase core deposits (i.e., checking,  savings and money market
               accounts), which tend to be less interest rate sensitive; and
          o    purchase  intermediate and adjustable-rate  investment securities
               that  provide a stable cash flow,  thereby  providing  investable
               funds in varying interest rate cycles.


Item 4. Controls and Procedures

         Evaluation  of  disclosure  controls  and  procedures.  Based  on their
evaluation of the Company's  disclosure  controls and  procedures (as defined in
Rule 13a-15(e) under the Securities  Exchange Act of 1934 (the "Exchange Act")),
the Company's  principal  executive officer and principal financial officer have
concluded that as of the end of the period  covered by this Quarterly  Report on
Form 10-Q such disclosure controls and procedures are effective.

         Changes in internal  controls.  During the quarter under report,  there
was no change in the Company's  internal  control over financial  reporting that
has  materially  affected,  or is reasonable  likely to materially  affect,  the
Company's internal control over financial reporting.

                                      -21-

<PAGE>

                           PART II - OTHER INFORMATION

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

         The Company and its subsidiaries,  from time to time, may be a party to
routine  litigation,  which  arises in the normal  course of  business,  such as
claims to enforce  liens,  condemnation  proceedings  on properties in which the
Bank, the  wholly-owned  subsidiary of the Company,  holds  security  interests,
claims  involving  the making and  servicing  of real  property  loans and other
issues incident to its business.  There were no lawsuits  pending or known to be
contemplated  at March 31, 2006 that would be expected to have a material effect
on the Company's operations or income.

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

         There  has  been no  material  change  in the risk  factors  previously
disclosed in the Company's 2005 Form 10-K.

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

                      ISSUER PURCHASES OF EQUITY SECURITIES

The following table reports information  regarding  repurchases of the Company's
common stock  during the first  quarter of 2006 and the stock  repurchase  plans
approved by the Company's Board of Directors.

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
                                                                Total Number of Shares    Maximum Number of Shares
                               Total Number                      Purchased as Part of     that May Yet Be Purchased
                                of Shares      Average Price      Publicly Announced         Under the Plans or
           Period               Purchased     Paid per Share    Plans or Programs (1)           Programs (1)
---------------------------------------------------------------------------------------------------------------------
<S>                            <C>               <C>                 <C>                          <C>
January 1-31, 2006               100,000           13.04               100,000                      174,628
---------------------------------------------------------------------------------------------------------------------
February 1-28, 2006               11,000           13.09                11,000                      561,294
---------------------------------------------------------------------------------------------------------------------
March 1-31, 2006                  74,393           13.55                74,393                      486,901
---------------------------------------------------------------------------------------------------------------------
Total                            185,393           13.25               185,393
---------------------------------------------------------------------------------------------------------------------
</TABLE>

______________________________
(1)  On February 23, 2006, the Company  announced that it intends to purchase up
     to five  percent of its common  stock  outstanding  (approximately  572,294
     shares) in open market  transactions.  This repurchase program incorporates
     the  174,628  shares  that  remained  available  for  repurchase  under the
     Company's  August 2005  repurchase  program.  Such purchases are to be made
     from time to time in the open market,  based on stock  availability,  price
     and the  Company's  financial  performance.  This program has no expiration
     date and has 486,901 shares yet to be purchased.

                                      -22-

<PAGE>

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

         None.

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

      The Annual Meeting of Stockholders (the "Meeting") of the Company was held
      on April 4,  2006.  There were  outstanding  and  entitled  to vote at the
      Meeting  11,445,881  shares of Common  Stock of the  Company.  There  were
      present at the  meeting or by proxy the  holders  of  9,371,777  shares of
      Common Stock  representing  81.9% of the total  eligible votes to be cast.
      Proposal 1 was to elect three directors of the Company.  Proposal 2 was to
      ratify the  appointment  of the  independent  auditor for the December 31,
      2006  fiscal  year.  Proposal 3 was to adjourn  the  Meeting to permit the
      Board of Directors to solicit additional proxies, if necessary. The result
      of the voting at the Meeting is as follows  (percentages in terms of votes
      cast):

      Proposal 1

<TABLE>
<CAPTION>
                                                                           VOTES
                                    VOTES FOR                             WITHHELD
                          -------------------------------      -------------------------------
                            Number           Percentage           Number          Percentage
                           of Votes         of Votes Cast        of Votes        of Votes Cast
                           --------         -------------        --------        -------------

<S>                      <C>                  <C>              <C>                 <C>
  Nancy A. Davis           8,714,941            93.0%            638,849             6.8%

  John S. Fiore            3,727,932            39.8%             86,856             0.9%

  W. Phillip Scott         3,179,939            33.9%            634,849             6.8%

  Daniel P. Spiegel        5,539,002            59.1%             17,367             0.2%

  Daniel M. Eliades        5,537,606            59.1%             18,763             0.2%
</TABLE>


      Proposal 2
      Ratification  of the appointment of Crowe Chizek  and Company LLC  as  the
      Company's independent auditor for the year ending December 31, 2006.

                             Number of       Percentage of
                               Votes           Votes Cast
                               -----           ----------

FOR                          9,154,487           97.7%

AGAINST                        137,012            1.4%

ABSTAIN                         80,274            0.9%

      Proposal 3
      This proposal was not presented at the Meeting.


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

         None.


                                      -23-

<PAGE>

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

        a) Exhibits:

           31 Certification pursuant to ss.302 of the Sarbanes-Oxley Act of 2002
           32 Certification pursuant to ss.906 of the Sarbanes-Oxley Act of 2002


                                      -24-

<PAGE>

                                   SIGNATURES



          Pursuant to the requirements of Sections 13 or 15(d) 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.

                                     SYNERGY FINANCIAL GROUP, INC.



Date: May 10, 2006
                                     By:   /s/John S. Fiore
                                           -------------------------------------
                                           John S. Fiore
                                           President and Chief Executive Officer
                                           (Duly Authorized Representative)


          Pursuant to the  requirement of the  Securities  Exchange Act of 1934,
this  report has been  signed  below by the  following  persons on behalf of the
registrant and in the capacities and on the date indicated.

<TABLE>
<CAPTION>
<S>                                                 <C>

/s/John S. Fiore                                      /s/A. Richard Abrahamian
-------------------------------------------------     -------------------------------------------------
John S. Fiore                                         A. Richard Abrahamian
President and Chief Executive Officer                 Senior Vice President and Chief Financial Officer
(Principal Executive Officer)                         (Principal Financial and Accounting Officer)
</TABLE>


Date:  May 10, 2006                                   Date: May 10, 2006


                                      -25-