UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      D.C. 20549





**FORM
      10-QSB**





**ý      QUARTERLY
      REPORT UNDER SECTION 13 OR 15(d)**


**OF
      THE SECURITIES EXCHANGE ACT OF 1934**





For
      the
      quarterly period ended March 31, 2007


**Commission
      file number 000-33405**





**AJS
      BANCORP, INC.**


(Exact
      name of registrant specified in its charter)





**Federal**
            **36-4485429**(State
                of incorporation)
            (IRS
                Employer Identification No.)











**14757
      S. Cicero Avenue, Midlothian, Illinois 60445**


(Address
      of Principal Executive Offices)








**(708)
      687-7400**


(Issuer's
      telephone number, including area code)





**Not
      Applicable**


(Former
      Name, Former Address and Former Fiscal year, if changed since last
      report)











Check
      whether the issuer:  (1) filed all reports required to be filed by
      Section 13 or 15(d) of the Exchange Act during the past 12 months (or 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
ý
      No  o




Indicate
      by check mark whether the Registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act.)Yes oNo ý





On
      May 4,
      2007, the issuer had 2,131,079 shares of common stock issued and outstanding,
      $0.01 per share par value.





Transitional
      Small Business Disclosure Format.  Yes o 
No  ý

















**AJS
      BANCORP, INC.**





Form
      10-QSB Quarterly Report








Index





PagePART
                I - Financial InformationItem
                1.
            Financial
                Statements
            1Item
                2.
            Management's
                Discussion and Analysis of Financial Condition
                and Results of Operations
            10Item
                3.
            Controls
                and Procedures
            15PART
                II - Other InformationItem
                1.
            Legal
                Proceedings
            15Item
                2.
            Unregistered
                Sales of Equity Securities and Use of
                Proceeds
            15Item
                3.
            Defaults
                Upon Senior Securities
            16Item
                4.
            Submission
                of Matters to a Vote of Securities
                Holders
            16Item
                5.
            Other
                Information
            16Item
                6.
            Exhibits
            16SIGNATURES
            17





*Index*





**ITEM
      1.  FINANCIAL STATEMENTS**





**AJS
      Bancorp, Inc.**


**Consolidated
      Statements of Financial Condition**


**(in
      thousands of dollars, except share data)**


**(unaudited)**




**March 31,**
            
            
            **December 31,****2007**
            
            
            **2006****ASSETS**Cash
                and cash equivalentsCash
                and due from banks (interest-earning: 2007 –$32,992;
                2006 – $32,571)
            
            $
            38,384
            
            
            $
            36,617Federal
                funds sold
            
            
            3,937
            
            
            
            7,231Total
                cash and cash equivalents
            
            
            42,321
            
            
            
            43,848Certificates
                of deposit
            
            
            4,693
            
            
            
            5,490Securities
                available-for-sale
            
            
            81,197
            
            
            
            68,774Securities
                held-to-maturity
            
            
            135
            
            
            
            204Loans,
                net
            
            
            130,524
            
            
            
            138,377Federal
                Home Loan Bank stock, at cost
            
            
            2,450
            
            
            
            2,450Premises
                and equipment
            
            
            4,311
            
            
            
            4,342Accrued
                interest receivable
            
            
            928
            
            
            
            1,021Other
                assets
            
            
            1,914
            
            
            
            2,007Total
                assets
            
            $
            268,473
            
            
            $
            266,513**LIABILITIES
                AND STOCKHOLDERS' EQUITY**LiabilitiesDeposits
            
            $
            200,794
            
            
            $
            202,176Federal
                Home Loan Bank advances
            
            
            27,350
            
            
            
            28,750Advance
                payments by borrowers for taxes and insurance
            
            
            1,177
            
            
            
            1,655Accrued
                interest payable and other liabilities
            
            
            9,920
            
            
            
            5,183Total
                liabilities
            
            
            239,241
            
            
            
            237,764Stockholders'
                equityPreferred
                stock, $.01 par value, 20,000,000 shares authorized;none
                issued
            
            
            -
            
            
            
            -Common
                stock, $.01 par value, 50,000,000 shares authorized;2,444,521
                shares issued at March 31, 2007 and December 31, 2006
            
            
            24
            
            
            
            24Additional
                paid in capital
            
            
            10,713
            
            
            
            10,428Treasury
                stock (312,817 shares at March 31, 2007;310,217
                shares at December 31, 2006
            
            
            (7,321
            )
            
            
            (7,256
            )Retained
                earnings
            
            
            26,522
            
            
            
            26,368Accumulated
                other comprehensive loss
            
            
            (706
            )
            
            
            (815
            )Total
                stockholders' equity
            
            
            29,232
            
            
            
            28,749Total
                liabilities and stockholders' equity
            
            $
            268,473
            
            
            $
            266,513





See
            notes
            to consolidated financial
            statements.
 1
 *Index*


**AJS
      Bancorp, Inc.**


**Consolidated
      Statements of Income**


**(in
      thousands of dollars, except share data)**


**(unaudited)**





**Three
                Months Ended****March
                31,****2007**
            
            
            **2006**Interest
                and dividend incomeLoans
            
            $
            2,147
            
            
            $
            2,279Securities
            
            
            781
            
            
            
            696Interest-earning
                deposits and other
            
            
            565
            
            
            
            242Federal
                funds sold
            
            
            85
            
            
            
            22Total
                interest income
            
            
            3,578
            
            
            
            3,239Interest
                expenseDeposits
            
            
            1,640
            
            
            
            1,259Federal
                Home Loan Bankadvances
                and other
            
            
            300
            
            
            
            328Total
                interest expense
            
            
            1,940
            
            
            
            1,587Net
                interest income
            
            
            1,638
            
            
            
            1,652Provision
                for loan losses
            
            
            (70
            )
            
            
            (12
            )Net
                interest income after provision for loan losses
            
            
            1,708
            
            
            
            1,664Non-interest
                incomeService
                fees
            
            
            125
            
            
            
            118Insurance
                commissions
            
            
            21
            
            
            
            71Other
            
            
            46
            
            
            
            61Total
                non-interest income
            
            
            192
            
            
            
            250Non-interest
                expenseCompensation
                and employee benefits
            
            
            856
            
            
            
            865Occupancy
                expense
            
            
            201
            
            
            
            210Data
                processing expense
            
            
            83
            
            
            
            104Advertising
                and promotion
            
            
            74
            
            
            
            55Other
            
            
            285
            
            
            
            276Total
                non-interest expense
            
            
            1,499
            
            
            
            1,510Income
                before income taxes
            
            
            401
            
            
            
            404Income
                taxes
            
            
            150
            
            
            
            150Net
                income
            
            $
            251
            
            
            $
            254Earnings
                per shareBasic
            
            $
            0.12
            
            
            $
            0.12Diluted
            
            
            0.12
            
            
            
            0.12Weighted
                laverage shares - Diluted
            
            
            2,147,465
            
            
            
            2,141,498Comprehensive
                income (loss)
            
            $
            360
            
            
            $
            (47
            )








See
            notes
            to consolidated financial
            statements.
 2
 *Index*


**AJS
      Bancorp, Inc.**


**Consolidated
      Statements of Cash Flows**


**(in
      thousands of dollars)**


**(unaudited)**


**Three
                Months Ended****March 31,****2007**
            
            
            **2006****Cash
                flows from operating activities**Net
                income
            
            $
            251
            
            
            $
            254Adjustments
                to reconcile net income to net cashprovided
                by operating activitiesDepreciation
            
            
            60
            
            
            
            69Provision
                for loan losses
            
            
            (70
            )
            
            
            (12
            )Deferred
                income taxes
            
            
            -
            
            
            
            (377
            )Net
                amortization of securities
            
            
            (3
            )
            
            
            14Stock
                award compensation expense
            
            
            50
            
            
            
            46Stock
                option compensation expense
            
            
            15
            
            
            
            6Dividend
                reinvestments
            
            
            (139
            )
            
            
            (89
            )Gain
                on the sale of loans
            
            
            -
            
            
            
            (20
            )Changes
                inAccrued
                interest receivable and other assets
            
            
            375
            
            
            
            500Accrued
                interest payable and other liabilities
            
            
            (57
            )
            
            
            (99
            )Net
                cash from operating activities
            
            
            482
            
            
            
            292**Cash
                flows from investing activities**Securities
                available-for-salePurchases
            
            
            (10,661
            )
            
            
            -Maturities
                and principal payments
            
            
            3,572
            
            
            
            2,824Securities
                held-to-maturityMaturities
                and principal payments
            
            
            69
            
            
            
            76Net
                change in certificates of deposit
            
            
            797
            
            
            
            1,298Net
                change in loans
            
            
            7,665
            
            
            
            703Purchase
                of equipment
            
            
            (29
            )
            
            
            (26
            )Net
                cash from investing activities
            
            
            1,413
            
            
            
            4,875**Cash
                from financing activities**Net
                change in deposits
            
            
            (1,382
            )
            
            
            2,733Net
                change in advance payments by borrowers for taxes and
                insurance
            
            
            (478
            )
            
            
            (511
            )Net
                change in Federal Home Loan Bank advances
            
            
            (1,400
            )
            
            
            (1,500
            )Dividends
                paid
            
            
            (97
            )
            
            
            (88
            )Purchase
                of treasury stock
            
            
            (65
            )
            
            
            (199
            )Exercise
                of stock options
            
            
            -
            
            
            
            30Net
                cash from financing activities
            
            
            (3,422
            )
            
            
            465Net
                change in cash and cash equivalents
            
            
            (1,527
            )
            
            
            5,632Cash
                and cash equivalents at beginning of period
            
            
            43,848
            
            
            
            15,230**Cash
                and cash equivalents at end of period**
            
            $
            42,321
            
            
            $
            20,862**Supplemental
                disclosures of cash flow information**Transfer
                of loans to real estate owned
            
            $
            258
            
            
            $
            -Due
                to broker
            
            
            5,014
            
            
            
            -


See
            notes
            to consolidated financial
            statements.
 3
 *Index*


**AJS
      Bancorp, Inc.**


**Consolidated
      Statements of Stockholders' Equity**


**Three
      months ended March 31, 2007**


**(in
      thousand of dollars)**


**(unaudited)**


Common
              Stock
            
            
            Additional
              Paid-in
              Capital
            
            
            Treasury
              Stock
            
            
            Unearned
              Stock
              Awards
            
            
            Retained
              Earnings
            
            
            Accumulated
              Other
              Comprehensive
              Loss
            
            
            Total
              Stockholders'
              EquityBalance
                at December 31, 2005
            
            $
            24
            
            
            $
            10,839
            
            
            $
            (6,931
            )
            
            $
            (486
            )
            
            $
            25,820
            
            
            $
            (1,014
            )
            
            $
            28,252Transfer
                to additional paid in capital
            
            
            -
            
            
            
            (486
            )
            
            
            -
            
            
            
            486
            
            
            
            -
            
            
            
            -
            
            
            
            -Purchase
                of treasury stock (8,600 shares)
            
            
            -
            
            
            
            -
            
            
            
            (199
            )
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (199
            )ESOP
                put option
            
            
            -
            
            
            
            (80
            )
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (80
            )Stock
                awards earned
            
            
            -
            
            
            
            46
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            46Stock
                options compensation
            
            
            -
            
            
            
            6
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            6Forfeit
                of stock awards (1,200 shares)
            
            
            -
            
            
            
            28
            
            
            
            (28
            )
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Stock
                awards granted (600 shares)
            
            
            -
            
            
            
            (11
            )
            
            
            11
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Stock
                options exercised (1,600 shares)
            
            
            -
            
            
            
            (2
            )
            
            
            32
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            30Cash
                dividend ($0.10 per share)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (88
            )
            
            
            -
            
            
            
            (88
            )Comprehensive
                loss:
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Net
                income
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            254
            
            
            
            -
            
            
            
            254Change
                in unrealized loss on
                securities
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -available
                for sale,
                net of taxes
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (301
            )
            
            
            (301
            )Total
                comprehensive
                loss
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            (47
            )Balance
                at March 31, 2006
            
            
            24
            
            
            
            10,340
            
            
            
            (7,115
            )
            
            
            -
            
            
            
            25,986
            
            
            
            (1,315
            )
            
            
            27,920





See
            notes
            to consolidated financial
            statements.
 4
 *Index*






Common
              Stock
            
            
            Additional
              Paid-in
              Capital
            
            
            Treasury
              Stock
            
            
            Retained
              Earnings
            
            
            Accumulated
              Other
              Comprehensive
              Income
            
            
            Total
              Stockholders'
              EquityBalance
                at December 31, 2006
            
            
            24
            
            
            
            10,428
            
            
            
            (7,256
            )
            
            
            26,368
            
            
            
            (815
            )
            
            
            28,749Purchase
                of treasury stock (2,600 shares)
            
            
            -
            
            
            
            -
            
            
            
            (65
            )
            
            
            -
            
            
            
            -
            
            
            
            (65
            )ESOP
                put option
            
            
            -
            
            
            
            220
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            220Stock
                awards earned
            
            
            -
            
            
            
            50
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            50Stock
                options compensation
            
            
            -
            
            
            
            15
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            15Cash
                dividend ($0.11 per share)
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (97
            )
            
            
            -
            
            
            
            (97
            )Comprehensive
                income:Net
                income
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            251
            
            
            
            -
            
            
            
            251Change
                in unrealized loss on
                securitiesavailable
                for sale,
                net of taxes
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            109
            
            
            
            109Total
                comprehensive
                income
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            360Balance
                at March 31, 2007
            
            
            24
            
            
            
            10,713
            
            
            
            (7,321
            )
            
            
            26,522
            
            
            
            (706
            )
            
            
            29,232







See
              notes
              to consolidated financial
              statements.
 5
 *Index*




AJS
      BANCORP, INC.


NOTES
      TO
      CONSOLIDATED FINANCIAL STATEMENTS


March 31,
      2007








Note
      1 -
      Basis of Presentation





Principles
      of Consolidation:  The accompanying consolidated interim financial
      statements include the accounts of AJS Bancorp, Inc. ("the Company") and its
      wholly owned subsidiary, A. J. Smith Federal Savings Bank ("the
      Bank").  All significant intercompany balances and transactions have
      been eliminated.  Commencing with this quarterly report, the company
      qualifies, and has elected to file its Securities Exchange Act reports under
      the
      small business issuer format.





The
      accompanying interim consolidated financial statements have been prepared
      pursuant to the rules and regulations for reporting on Form
      10-QSB.  Accordingly, certain disclosures required by U.S. generally
      accepted accounting principles are not included herein.  These interim
      statements should be read in conjunction with the Company's Annual Report on
      Form 10-K.  The December 31, 2006 balance sheet presented herein
      has been derived from the audited consolidated financial statements included
      in
      the Company's Annual Report on Form 10-K, but does not include all of the
      disclosures required by U. S. generally accepted accounting
      principles.





Interim
      statements are subject to possible adjustment in connection with the annual
      audit of the Company for the year ending December 31, 2007.  In
      the opinion of the management of the Company, the accompanying unaudited interim
      consolidated financial statements reflect all of the adjustments (consisting
      of
      normal recurring adjustments) necessary for a fair presentation of the
      consolidated financial position and consolidated results of operations for
      the
      periods presented.  The results of operations for interim periods are
      not necessarily indicative of the results to be expected for the full
      year.





Note
      2 -
      Earnings Per Share





Basic
      earnings per share for the three months ended March 31, 2007 and 2006 were
      computed by dividing net income by the weighted average number of shares
      outstanding.  Diluted earnings per share for the three months ended
      March 31, 2007 and 2006 were computed by dividing net income by the
      weighted average number of shares outstanding, adjusted for the dilutive effect
      of the outstanding stock options and stock awards.  Computations for
      basic and diluted earnings per share are provided below.





**For
                the Three Months****Ended
                March 31,****2007**
            
            
            **2006**(in
                thousands, exceptper
                share data)**Basic**Net
                income
            
            $
            251
            
            
            $
            254Weighted
                average common sharesoutstanding
            
            
            2,121
            
            
            
            2,119Basic
                earnings per common share
            
            $
            0.12
            
            
            $
            0.12


6
 *Index*





**For
                the Three Months****Ended
                March 31,****2007**
            
            
            **2006**(in
                thousands, exceptper
                share data)**Diluted**Net
                income
            
            $
            251
            
            
            $
            254Weighted
                average common sharesoutstanding
            
            
            2,121
            
            
            
            2,119Dilutive
                effect of stock awards
            
            
            2
            
            
            
            3Dilutive
                effect of stock options
            
            
            24
            
            
            
            19Diluted
                average common shares
            
            
            2,147
            
            
            
            2,141Diluted
                earnings per common share
            
            $
            0.12
            
            
            $
            0.12





There
      were no shares that were anti-dilutive for the period ended March 31, 2007
      and
      2006.





Note
      3 -
      Stock Plans and Stock Based Compensation





At
      March
      31, 2007, the Company had a stock option plan and a recognition and retention
      plan.





Under
      the
      stock option plan, certain key employees are granted options to purchase shares
      of the Company’s Common Stock at fair value at the date of the
      grant.  All stock options have an exercise price that is at least
      equal to the fair market value of the Company’s stock on the date the options
      were granted.  The Company adopted the stock plan in May 2003 under the
      terms of which options for 114,685 shares of the Company's common stock were
      granted to directors, officers, and employees.  The options generally
      become exercisable in equal installments over a five-year period from the date
      of grant, and they expire ten years from the date of grant.  No option
      may be exercised if such exercise would cause the mutual holding company to
      own
      fewer than a majority of the total number of shares
      outstanding.  There were no options granted or exercised during the
      three months ended March 31, 2007.  There were 1,200 options granted
      and 1,600 options exercised during the three months ended March 31,
      2006.





The
      following assumptions were used for options granted during the period ended
      March 31, 2006:


2006Risk-free
                interest rate
            
            
            4.71
            %Expected
                option life
            
            2.2
                yearsExpected
                stock price volatility
            
            
            10.11
            %Dividend
                yield
            
            
            1.68
            %





All
      share-based payments to employees, including grants of employee stock options,
      are recognized as compensation expense over the service period (generally the
      vesting period) in the consolidated financial statements based on their fair
      values.


7
 *Index*


**A
      summary of the activity in the Company's stock option plan for the three months
      ended March 31, 2007 is presented below:**





**For
                the Three Months****Ended
                March 31,****2007**Weighted-AverageExerciseShares
            
            
            PriceOutstanding
                at beginning of period
            
            
            102,885
            
            
            $
            18.81Granted
            
            
            -
            
            
            
            -Exercised
            
            
            -
            
            
            
            -Forfeited
            
            
            -
            
            
            
            -Outstanding
                at end of period
            
            
            102,885
            
            
            $
            18.81





2007
            
            
            2006Options
                exercisable at end of period
            
            
            61,411
            
            
            
            40,674Intrinsic
                value of options outstanding
            
            $
            637,000
            
            
            $
            488,000Intrinsic
                value of options exercisable
            
            $
            380,000
            
            
            $
            193,000Average
                remaining option term
            
            6.1
                years
            
            
            7.1
                years





The
      fair
      value of each option award is estimated on the date of grant using a closed
      form
      option valuation (Black-Scholes) model that uses the assumptions noted in the
      table below.  Expected volatilities are based on historical
      volatilities of the Company’s common stock.  The Company uses
      historical data to estimate option exercise and post-vesting termination
      behavior.  (Employee and management options are tracked
      separately.)  The expected term of options granted is based on
      historical data and represents the period of time that options granted are
      expected to be outstanding, which takes into account that the options are not
      transferable.  Estimated forfeitures are based on historical
      forfeiture rates of approximately 4.7%.  The risk-free rate for
      periods within the contractual life of the option is based on the U.S. Treasury
      yield curve in effect at the time of grant.




The
      intrinsic value for stock options is calculated based on the exercise price
      of
      the underlying awards and the market price of our common stock as of the
      reporting date. The intrinsic value of options exercised during the first
      quarter of 2006 was $8,000.  The Company recorded $15,000 and $6,000,
      respectively in stock compensation expense during the three months ended March
      31, 2007 and March 31, 2006 to salaries and employee benefits.




Unrecognized
      stock option compensation expense related to unvested awards for the remainder
      of 2006 and beyond is estimated in the table below.  These figures
      represent gross expense and forfeitures are expected to reduce this
      cost.  We estimate our forfeiture rate for the stock option plan to be
      4.7%.




Year
            
            *(in
                thousands)*April
                2007 – December 2007
            
            $
            43,7002008
            
            
            22,800Total
            
            $
            66,500


8
 *Index*








Pursuant
      to its 2003 stock-based incentive plan, the Company awarded 58,971 shares of
      restricted stock in May 2003.  These shares normally vest over a
      five-year period, unless certain circumstances occur that trigger earlier
      vesting according to the approved Recognition and Retention Plan
      (“RRP”).  The unamortized cost of shares not yet earned (vested) is
      reported as a reduction of stockholders’ equity.  Compensationexpense for restricted
      stock awards totaled $50,000 and $46,000 for the three months ended
      March 31, 2007 and 2006, respectively.  Compensationexpense for restricted
      stock awards is reporting net of forfeitures.  We estimate our
      forfeiture rate of the restricted stock awards to be 3.0%.





A
      summary
      of the activity in the RRP is as follows:





Weighted-AverageGrant-DateNonvested
                Shares
            
            Shares
            
            
            Fair
                ValueNonvested
                at January 1, 2007
            
            
            20,868
            
            
            $
            18.85Granted
            
            
            -
            
            
            
            -Vested
            
            
            -
            
            
            
            -Forfeited
            
            
            -
            
            
            
            -Nonvested
                at March 31, 2007
            
            
            20,868
            
            
            $
            18.85





As
      of
      March 31, 2007, there was $230 of total unrecognized compensation cost related
      to nonvested shares granted under the Plan.  The cost is expected to
      be recognized over a weighted-average period of 1.1 years.





Note
      4 –
New Accounting Pronouncements





The
      Company adopted FASB Interpretation 48, Accounting for Uncertainty in Income
      Taxes (“FIN 48”), as of January 1, 2007.   A tax position is
      recognized as a benefit only if it is "more likely than not" that the tax
      position would be sustained in a tax examination, with a tax examination being
      presumed to occur.   The amount recognized is the largest amount
      of tax benefit that is greater than 50% likely of being realized on
      examination.  For tax positions not meeting the "more likely than not"
      test, no tax benefit is recorded.  The adoption had no affect on the
      Company’s financial statements.





The
      Company and its subsidiaries are subject to U.S. federal income tax as well
      as
      income tax of the state of Illinois and various other state income
      taxes.  The Company is no longer subject to examination by taxing
      authorities for years before 2002.  The Company does not expect the
      total amount of unrecognized tax benefits to significantly increase in the
      next
      twelve months.





The
      Company recognizes interest related to income tax matters as interest expense
      and penalties related to income tax matters as other expense.  The
      Company did not have any amounts accrued for interest and penalties at March
      31,
      2007.




In
      September 2006, the FASB issued Statement No. 157, *Fair Value
      Measurements*.  This Statement defines fair value, establishes a
      framework for measuring fair value and expands disclosures about fair value
      measurements.  This Statement establishes a fair value hierarchy about
      the assumptions used to measure fair value and clarifies assumptions about
      risk
      and the effect of a restriction on the sale or use of an asset.  The
      standard is effective for fiscal years beginning after November 15,
      2007.  The Company is currently evaluating the impact of the adoption
      of this standard.





In
      February 2007, the FASB issued Statement No. 159, *The Fair Value Option for
      Financial Assets and Financial Liabilities.*This Statement
      allows companies to record certain financial assets and liabilities at full
      fair
      value if


9
 *Index*


they
      so
      choose.  This Statement was issued to mitigate volatility in reporting
      earnings caused by an accounting model using multiple measurement
      attributes.  The effective date is the beginning of the first fiscal
      year after November 15, 2007.  Early adoption must be made within 120
      days of the beginning of the fiscal
      year of adoption.  Early adoption also requires the adoption of the
      requirements of Statement No. 157, *Fair Value
      Measurements.*The Company is currently evaluating the impact of
      the adoption of this standard.





**ITEM
                2.**
            **MANAGEMENT'S
                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
                OPERATIONS**





SAFE
      HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
      ACT  OF 1995





This
      report contains certain forward-looking statements within the meaning of Section
      27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
      Exchange Act of 1934, as amended.  The Company intends such
      forward-looking statements to be covered by the safe harbor provisions for
      forward-looking statements contained in the Private Securities Litigation Reform
      Act of 1995 as amended and is including this statement for purposes 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 identifiable 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
      that could have a material adverse affect on the operations and future prospects
      of the Company and its wholly owned subsidiaries include, but are not limited
      to, changes in:  interest rates; general economic conditions;
      legislative/regulatory provisions; 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, policies, 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 affect the
      Company's financial results, is included in the Company's filings with the
      Securities and Exchange Commission.





The
      following discussion compares the financial condition of the Company at
      March 31, 2007 to its financial condition at December 31, 2006 and the
      results of operations for the three-month period ended March 31, 2007 and
      2006.  This discussion should be read in conjunction with the interim
      financial statements and footnotes included herein.





FINANCIAL
      CONDITION





Total
      assets at March 31, 2007 were $268.5 million compared to $266.5 million at
      December 31, 2006, an increase of $2.0 million, or 0.7%.  The increase
      in total assets reflects an increase in securities partially offset by decreases
      in cash and cash equivalents, certificates of deposit, and loans
      receivable.  There was an increase of $12.4 million or 17.9% in
      securities to $81.3 million at March 31, 2007 from $69.0 million at December
      31,
      2006.  Securities increased due to the purchase of $11.2 million in
      mortgage-backed securities and $4.5 million in Federal Home Loan Bank
      bonds.  The securities were purchased to lock in the yield currently
      available on these assets.  In addition, since the securities are
      classified as available-for-sale, they provide a liquid asset that will enable
      us to manage our interest rate risk exposure.  Cash and cash
      equivalents decreased $1.5 million or 3.5% to $42.3 million at March 31, 2007
      compared to $43.8 million at December 31, 2006.  Certificates of
      deposit with other financial institutions decreased $797,000 or 14.5% to $4.7
      million at March 31, 2007 compared to $5.5 million at December 31,
      2006.  Loans receivable decreased $7.9 million or 5.7% to $130.5
      million at March 31, 2007 from $138.4 million at December 31, 2006 primarily
      due
      to maturities of commercial construction loans, and to a lesser extent,
      maturities of conventional fixed-rate and adjustable-rate single-family mortgage
      loans.





10
 *Index*


The
      Company had non-performing assets of $500,000 at March 31, 2007 and $540,000
      at
      December 31, 2006.  The allowance for loan losses was $1.6 million at
      March 31, 2007 and December 31, 2006.  This represents a ratio of
      allowance for loan losses to gross loans receivable of 1.19% and 1.16%,
      respectively at March 31, 2007 and at December 31, 2006.  The
      allowance for loan losses to non-performing loans was 647.93% at March 31,
      2007
      compared to 299.81% at December 31, 2006.  Our subprime loans have
      decreased to $5.1 million at March 31, 2007 compared to $5.2 at December 31,
      2006.  We had three non-performing subprime loans totaling $179,000 at
      March 31, 2007 and four non-performing subprime loans totaling $199,000 at
      December 31, 2006





Total
      liabilities and borrowings increased $1.5 million or 0.6% to $239.2 million
      at
      March 31, 2007 from $237.8 million at December 31, 2006.  The increase
      was primarily due to a $5.0 million broker payable recorded for a security
      purchased in March 2007 that did not settle until April 2007.  Total
      deposits decreased $1.4 million or 0.7% to $200.8 million at March 31, 2007
      from
      $202.2 million at December 31, 2006.  Borrowings decreased $1.4
      million to $27.4 million at March 31, 2007 from $28.8 million at December 31,
      2006.  Advance payments by borrowers for taxes and insurance decreased
      $478,000 or 28.9% to $1.2 million from $1.7 million at December 31, 2006,
      primarily as a result from the timing of payments.  Accrued expenses
      and other liabilities increased $4.7 million or 91.4% to $9.9 million at March
      31, 2007 from $5.2 million at December 31, 2006.  The fair value of
      the Employee Stock Option Plan putable allocated shares is reclassified from
      stockholders equity and included in other liabilities.  The fair value
      of the ESOP putable allocated shares is calculated using the appraised value
      as
      determined by an independent appraiser.  The appraised value per-share
      price may be different than the per-share price indicated using the open market
      trading value.





Total
      stockholders’ equity increased $483,000 to $29.2 million at March 31, 2007 from
      $28.7 million at December 31, 2006.  The increase in stockholders’
equity was primarily due to net income of $251,000 for the quarter ended March
      31, 2007 and increases in other comprehensive income due to the higher fair
      market value of securities held for sale.  These increases were offset
      by common stock repurchases that took place during the quarter ended March
      31,
      2007.   The Board of Directors has authorized the repurchase of
      267,000 shares of the Company's stock, and has 55,437 shares remaining to be
      repurchased under the current repurchase plan.  Repurchased shares are
      classified as treasury shares, but are not considered outstanding and are not
      included when calculating earnings per share or book value
      information.





The
      Company paid a quarterly dividend of $0.11 cents per share on February 23,
      2007
      to stockholders of record as of February 9, 2007.  In addition, the
      Company’s Board of Directors announced that it has declared a quarterly dividend
      of $0.11 cents per share payable on May 25, 2007, to stockholders of record
      on
      May 11, 2007.  AJS Bancorp, MHC (the "MHC") waived 100% of the
      February dividend.  As of March 31, 2007, the Company held cash
      totaling $42.3 million.  At March 31, 2007 the Bank’s tier 1 capital
      as well as its tangible capital ratio was 10.6%, and its risk-based capital
      ratio was 24.8%.





**RESULTS
      OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND MARCH 31,
      2006**





Net
      income decreased $3,000 to $251,000 for the quarter ended March 31, 2007
      compared to the same period in 2006.  The return on average assets
      decreased to 0.38% for the quarter ended March 31, 2007 from 0.40% for the
      same period in 2006.  The decrease in net income resulted from a
      decrease in net interest income and non-interest income, partially offset by
      an
      increase in the negative provision for loan losses and a decrease in
      non-interest expense during the comparative periods.  Total interest
      income increased by $339,000 or 10.5% to $3.6 million for the quarter ended
      March 31, 2007 as compared to $3.2 million for the same quarter in
      2006.  The increase was due to an increase of $85,000 in income earned
      on securities, increase of $323,000 in income earned on interest earning
      deposits, and increase of $63,000 in interest income earned on federal funds
      sold, partially offset by a $132,000 decrease in income earned on
      loans.  Interest income earned on securities, interest earning
      deposits, and federal funds sold increased due to higher average balances and
      higher interest earned for the comparable quarters ending March 31, 2007 and
      2006.  The higher average yield in 2007 reflects the change in the
      composition of our assets to include a higher proportion of securities and
      cash,
      which had interest rates set based on shorter term interest rates. During this
      period of an inverted yield


11
 *Index*


curve
      this change resulted in higher short-term interest rates during the three-
      month
      period in 2007 as compared to the same period in 2006.  Interest
      income on loans decreased due to lower average balances for the comparable
      quarters ended March 31, 2007 and 2006.  The average balance for loans
      for the three months ended March 31, 2007 was $134.4 million with an
      average yield of 6.39% compared to an average balance of $152.9 million with
      an
      average yield of 5.97% for the same quarter in 2006.  The average
      balance for securities for the three months ended March 31, 2007 was $74.2
      million with an average yield of 4.21% compared to an average balance of $71.3
      million with an average yield of 3.90% for the same quarter in
      2006.  The average balance for interest earning deposits for the three
      months ended March 31, 2007 was $42.7 million with an average yield of 5.26%
      compared to an average balance of $23.5 million with an average yield of 4.07%
      for the same quarter in 2006.  Average interest earning assets were
      $257.8 million and $249.8 million during the comparative 2007 and 2006 quarters
      while the average yield was 5.55% and 5.18%, respectively.





Total
      interest expense increased $353,000 to $1.9 million at March 31, 2007 from
      $1.6
      million at March 31, 2006.  The increase in interest expense was
      primarily due to the increased cost of deposits offset by a decrease in the
      cost
      of Federal Home Loan Bank ("FHLB") advances.  The average cost of
      deposits at March 31, 2007 was 3.30% as compared to 2.64% at March 31,
      2006.   The increase in the cost of deposits was primarily due to
      rising short-term interest rates.  Interest expense on FHLB advances
      decreased by $28,000 or 8.5% to $300,000 for the quarter ended March 31,
      2007 from $328,000 for the same quarter in 2006.  This was due to a
      decrease in the average FHLB advance balances for the quarter ended March 31,
      2007 compared to the same quarter in 2006, notwithstanding an increase in the
      cost of FHLB advances.  The average FHLB advance balance was $28.1
      million and the average cost was 4.27% for the quarter ended March 31, 2007
      compared to an average balance of $31.6 million and an average cost of 4.15%
      for
      the same quarter in 2006.  The average cost of interest-bearing
      liabilities increased to 3.42% for the three months ended March 31, 2007
      from 2.86% for the same period ended 2006.





Our
      net
      interest rate spread decreased 21 basis points to 2.12% for the quarter ended
      March 31, 2007 from 2.33% for the same period in 2006, while our net
      interest margin decreased 10 basis points to 2.54% for the quarter ended
      March 31, 2007 from 2.64% for the same period in March 31,
      2006.  The ratio of average interest-earning assets to average
      interest-bearing liabilities increased to 113.71% for the three months ended
      March 31, 2007 from 112.45% for the same period in 2006.





The
      Company recorded a $70,000 negative provision for the three months ended March
      31, 2007, and a $12,000 negative provision for the three months ended March
      31,
      2006.  The negative provision reflects a combination of loan loss
      recoveries, decline in loan balances and our review of losses inherent in our
      loan portfolio.  At this time, management felt no additional
      provisions were necessary.  Should any unforeseen risks present
      themselves however, management may need to increase this provision in the
      future.  At March 31, 2007 and December 31, 2006, our allowance
      for loan losses was $1.6 million or 1.19% of total loans at March 31, 2007
      and
      1.16% of total loans at December 31, 2006.  Non-performing assets as a
      percentage of total assets was 0.19% at March 31, 2007 and 0.20% at
      December 31, 2006.





Non-interest
      income decreased $58,000 to $192,000 for the quarter ended March 31, 2007
      from $250,000 for the comparable quarter in 2006.  The decrease in
      non-interest income was the result of a $50,000 decrease in insurance
      commissions and a $15,000 decrease in other non-interest income items, offset
      by
      a $7,000 increase in service charges on accounts.  The decrease in
      insurance commission is primarily due to a reduction in the staff of the Bank’s
      insurance and investment division.  The decrease in other non-interest
      items was primarily due to a decrease in the gain on the sale of loans
      designated for sale, offset in part by an increase in rental
      income.





Non-interest
      expense decreased by $11,000 to $1.5 million for the quarters ended March 31,
      2007 and March 31, 2006.  The decrease in non-interest expense
      for the comparable quarters was primarily due to a $21,000 decrease in data
      processing costs, offset by a $19,000 increase in advertising and promotion
      expense during the quarter ended March 31, 2007.  Data processing
      costs decreased primarily due to the implementation of new technology for our
      storage and retention of information, as well as reduction of
      the


12
 *Index*


level
      of
      services outsourced.  Advertising and promotion costs increased due to
      an increase in advertising of the Company’s spring deposit
      promotion.  On May 1, 2007 the Company received an offer to purchase
      the other real estate owned by the Company.  The offer is contingent
      upon the purchaser attaining financing and if the transaction closes the Company
      expects to incur a loss of approximately $58,000 plus commission and sales
      costs
      in the second quarter.





Our
      federal and state taxes remained at $150,000 for the quarters ended
      March 31, 2007 and March 31, 2006.





LIQUIDITY





The
      Bank
      must maintain an adequate level of liquidity to ensure the availability of
      sufficient funds to fund loan originations and deposit withdrawals, to satisfy
      other financial commitments, and to take advantage of investment
      opportunities.  The Bank invests excess funds in overnight deposits
      and other short-term interest-bearing assets to provide liquidity to meet these
      needs.  At March 31, 2007, cash and cash equivalents totaled
      $42.3 million.  At March 31, 2007, the Bank had commitments to
      fund loans of $7.2 million, available lines of credit of $15.0 million, and
      standby letters of credit of $150,000.  At March 31, 2007,
      certificates of deposit represented 63.6% of total deposits.  The Bank
      has historically retained these deposit accounts.  In addition, the
      Bank has borrowing capacity for an additional $36.5 million from the FHLB
      without providing additional collateral.  The Bank considers its
      liquidity and capital resources sufficient to meet its outstanding short-term
      and long-term capital needs.





CAPITAL
      RESOURCES





The
      Bank
      is subject to capital-to-asset requirements in accordance with bank
      regulations.  The following table summarizes the Bank's regulatory
      capital requirements versus actual capital as of March 31,
      2007:








Actual
            
            
            
            
            
            Required
            
            
            
            
            
            Excess(Dollars
                in thousands)
            
            Amount
            
            
            %
            
            
            Amount
            
            
            %
            
            
            Amount
            
            
            %Core
                capital(to
                adjusted total assets)
            
            $
            28,678
            
            
            
            10.6
            %
            
            $
            10,781
            
            
            
            4.0
            %
            
            $
            17,897
            
            
            
            6.6
            %Risk-based
                capitalto
                (risk-weighted assets)
            
            
            30,198
            
            
            
            24.8
            
            
            
            9,726
            
            
            
            8.0
            
            
            
            20,472
            
            
            
            16.8


MANAGEMENT
      OF MARKET RISK





The
      majority of our assets and liabilities are monetary in
      nature.  Consequently, our most significant form of market risk is
      interest rate risk.  Our assets, consisting primarily of mortgage
      loans, have longer maturities than our liabilities, consisting primarily of
      deposits.  As a result, a principal part of our business strategy is
      to manage interest rate risk and reduce the exposure of our net interest income
      to changes in market interest rates.  Accordingly, our Board of
      Directors has established an Asset/Liability Management Committee, which is
      responsible for evaluating the interest rate risk inherent in our assets and
      liabilities, for determining the level of risk that is appropriate given our
      business strategy, operating environment, capital, liquidity and performance
      objectives; and for managing this risk consistent with the guidelines approved
      by the Board of Directors.  Senior management monitors the level of
      interest rate risk on a regular basis, and the Asset/ Liability Management
      Committee, which consists of senior management operating under a policy adopted
      by the Board of Directors, meets as needed to review our asset/liability
      policies and interest rate risk position.





We
      have
      sought to manage our interest rate risk by more closely matching the maturities
      of our interest rate sensitive assets and liabilities.  In the current
      low interest rate environment we have kept our purchases of investments in
      fixed
      rate notes and bonds to maturities within two to three years.  In
      addition, we may


13
 *Index*


emphasize
      fixed rate mortgages that mature in fifteen years or less by offering very
      competitive interest rates on those products while not being as aggressive
      in
      pricing those mortgages that mature in greater than fifteen years.  We
      also offer one-, three- five-, and seven-year adjustable rate mortgage loans,
      and three- and five-year balloon loans.  However, in a low interest
      rate environment, borrowers typically prefer fixed-rate loans rather than
      adjustable-rate mortgages.  We may sell some of our originations of
      longer-term fixed-rate loans into the secondary market.  We do not
      solicit high-rate jumbo certificates of deposit or brokered funds.





In
      past
      years, many savings associations have measured interest rate sensitivity by
      computing the "gap" between the assets and liabilities that are expected to
      mature or reprice within certain time periods based on assumptions regarding
      loan prepayment and deposit decay rates formerly provided by the Office of
      Thrift Supervision.  However, the Office of Thrift Supervision now
      requires the computation of amounts by which the net present value of an
      institution's cash flow from assets, liabilities, and off-balance-sheet items
      (the institution's net portfolio value or "NPV") would change in the event
      of a
      range of assumed changes in market interest rates.  The Office of
      Thrift Supervision provides all institutions that file a Consolidated
      Maturity/Rate Schedule as a part of their quarterly Thrift Financial Report
      with
      an interest rate sensitivity report of net portfolio value.  The
      Office of Thrift Supervision simulation model uses a discounted cash flow
      analysis and an option-based pricing approach to measuring the interest rate
      sensitivity of net portfolio value.  The Office of Thrift Supervision
      model estimates the economic value of each type of asset, liability, and
      off-balance-sheet contract under the assumption that the United States Treasury
      yield curve increases or decreases instantaneously by 100 to 300 basis points
      in
      100 basis point increments.  A basis point equals one-hundredth of one
      percent, and 100 basis points equals one percent.  An increase in
      interest rates from 7% to 8% would mean, for example, a 100 basis point increase
      in the "Change in Interest Rates" column below.  The Office of Thrift
      Supervision provides us the results of the interest rate sensitivity model,
      which is based on information we provide to the Office of Thrift Supervision
      to
      estimate the sensitivity of our net portfolio value.





The
      following table sets forth as of December 31, 2006 (the latest date for which
      information is available), the estimated changes in our net portfolio value
      that
      would result from the designated instantaneous changes in the United States
      Treasury yield curve.  The Company anticipates that the March 31,
      2007 Net Portfolio Value will be similar to the December 31, 2006 table shown
      below.





**Change
                in**
            
            
            
            
            
            
            
            **NPV
                as % of****Interest
                Rates**
            
            
            
            
            
            
            
            **Portfolio
                Value of Assets****in
                Basis Points**
            
            **Net
                Portfolio Value**
            
            **NPV**
            
            **Basis
                Point****(Rate
                Shock)**
            
            **Amount**
            
            **$
                Change**
            
            **%
                Change**
            
            **Ratio**
            
            **Change**(Dollars
                in thousands)300
            
            27,958
            
            (8,610)
            
            (24)%
            
            10.69%
            
            (263)200
            
            30,930
            
            (5,638)
            
            (15)
            
            11.63
            
            (169)100
            
            33,841
            
            (2,727)
            
            (07)
            
            12.52
            
            (80)Static
            
            36,568
            
            -
            
            -
            
            13.32
            
            --100
            
            38,678
            
            2,110
            
            6
            
            13.90
            
            58-200
            
            39,754
            
            3,186
            
            9
            
            14.15
            
            83





The
      table
      above indicates that at December 31, 2006, in the event of a 200 basis point
      increase in interest rates, we would experience a 15% decrease in net portfolio
      value.  A 200 basis point decrease in interest rate would result in a
      9% increase in net portfolio value.  All model outputs associated with
      the -300 basis point scenarios are not applicable because of the low prevailing
      interest rate environment.





Certain
      shortcomings are inherent in the methodology used in the above interest rate
      risk measurement.  Modeling changes in net portfolio value require
      making certain assumptions that may or may not reflect the manner in which
      actual yields and costs respond to changes in market interest
      rates.  In this regard, the net portfolio value table presented
      assumes that the composition of our interest-sensitive assets and
      liabilities


14
 *Index*


existing
      at the beginning of a period remains constant over the period being measured
      and
      assumes that a particular change in interest rates is reflected uniformly across
      the yield curve regardless of the duration or repricing of specific assets
      and
      liabilities.  Accordingly, although the net portfolio value table
      provides an indication of our interest rate risk exposure at a particular point
      in time, such measurements are not intended to and do not provide a precise
      forecast of the effect of changes in market interest rates on its net interest
      income, and will differ from actual results.





**ITEM
      3.  CONTROLS AND PROCEDURES**





Under
      the
      supervision and with the participation of the Company's management, including
      the Chief Executive Officer, President and Chief Financial Officer, the Company
      has evaluated the effectiveness of the design and operation of it's disclosure
      controls and procedures (as defined in Rule 13a-15(e) and 15(d)-15(e) under
      the
      Exchange Act) as of the end of the period covered by this quarterly
      report.  Based upon that evaluation, the Chief Executive Officer,
      President and Chief Financial Officer concluded that, as of the end of the
      period covered by this quarterly report, the Company's disclosure controls
      and
      procedures are effective to ensure that information required to be disclosed
      in
      the reports that the Company files or submits under the Securities Exchange
      Act
      of 1934 is recorded, processed, summarized and reported, within the time periods
      specified in the Securities and Exchange commission's rules and
      forms.  There has been no change in the Company's internal control
      over financial reporting during the most recent fiscal quarter that has
      materially affected, or is reasonably likely to materially affect, the Company's
      internal control over financial reporting.





**PART
      II - - OTHER INFORMATION**





**ITEM1.  LEGAL
      PROCEEDINGS.**





Periodically,
      there have been various claims and lawsuits involving the Company, such as
      claims to enforce liens, condemnation proceedings on properties in which the
      Company holds security interest, claims involving the making and servicing
      of
      real property loans, and other issues incident to the Company's
      business.  In the opinion of management, after consultation with the
      Company's legal counsel, no significant loss is expected from any such pending
      claims or lawsuits.  The Company is not a party to any material
      pending legal proceedings.





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





The
      Company's second repurchase plan was announced on May 18, 2004 and allows for
      the repurchase of 117,000 shares of the Company's stock, which represented
      approximately 5% of the Company's outstanding shares.  Increases to
      the Company's second repurchase plan were announced on March 22, 2005 and on
      October 18, 2005.  They allow for the purchase of an additional
      100,000 and 50,000 shares respectively, to be added to the current stock
      repurchase program.











15
 *Index*


Issuer
      purchases of equity securities during the prior three months:





**Maximum****Total
                  number**
            
            
            **number
                of****of
                  shares**
            
            
            **shares
                that may****purchased**
            
            
            **be
                purchased****Total**
            
            
            **Average**
            
            
            **under
                publicly**
            
            
            **under
                the****number
                shares**
            
            
            **price
                paid**
            
            
            **announced**
            
            
            **repurchase****purchased**
            
            
            **per
                share**
            
            
            **plan**
            
            
            **plan**January
                1 – January 31
            
            
            -
            
            
            $
            -
            
            
            
            208,963
            
            
            
            267,000February
                1 – February 28
            
            
            -
            
            
            
            -
            
            
            
            208,963
            
            
            
            267,000March
                1 – March 31
            
            
            2,600
            
            
            
            24.78
            
            
            
            211,563
            
            
            
            267,000





**ITEM
      3.  DEFAULTS UPON SENIOR
      SECURITIES**.





None





**ITEM
      4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITIES
      HOLDERS.**





None





**ITEM
      5.  OTHER INFORMATION.**





(a)
            None


(b)
            There
                have been no changes to the procedures by which security holders
                may
                recommend nominees to the Company’s board of directors from that which is
                set forth in the Company’s annual meeting proxy
                statement.





**ITEM
      6.  EXHIBITS.**





(a)
            Exhibits


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


31.2   Certification
      of President Pursuant
      to Section 302 of the Sarbanes-Oxley
      Act of 2002.


31.3   
Certification
      of Chief Financial
      Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.


32.1  
 Certification
      pursuant to 18 U.S.C.
      Section 1350, as adopted pursuant to  Section 906 of the
      Sarbanes-Oxley Act of 2002.





16
 *Index*


**SIGNATURES**








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








AJS
                BANCORP, INC.Date:  May
                10, 2007
            /s/
                Thomas R. ButkusThomas
                R. ButkusChief
                Executive Officer and Chairman of the BoardDate:
                May 10, 2007
            /s/
                Lyn G. RupichLyn
                G. RupichPresident
                and Chief Operating Officer







17