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

                                   FORM 10-QSB

(Mark One)

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

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

                                       OR

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

For the transition period from ______ to ______ Commission file number 000-50820

                        FIRST CLOVER LEAF FINANCIAL CORP.
                        ---------------------------------
        (Exact name of small business issuer as specified in its charter)

           Maryland                                      20-4797391
---------------------------------                        ----------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

6814 Goshen Road, Edwardsville, IL                          62025
---------------------------------------                  -----------
(Address of principal executive office)                   (Zip Code)

Registrant's telephone number, including area code (618) 656-6122
                                                   --------------

Not applicable          Not applicable
--------------------    --------------
(Former name)           (Former address and former fiscal year, if changed since
                        last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by  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 [ ].

Transitional Small Business Disclosure Format (Check one): Yes [ ]. No [X].

State by checkmark whether the Registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes [ ]. No [X].

Indicate  the number of shares  outstanding  of the  issuer's  classes of common
stock, as of the latest practicable date.

                Class                               Outstanding May 11, 2007
--------------------------------------              ------------------------
Common Stock, par value $.10 per share                      9,074,031

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                                   FORM 10-QSB

                      FOR THE QUARTER ENDED MARCH 31, 2007

                                      INDEX

                                                                        PAGE NO.
PART I - Financial Information

Item 1. Financial Statements

        Consolidated Balance Sheets                                           3

        Consolidated Statements of Income                                     4

        Consolidated Statements of Comprehensive Income                       5

        Consolidated Statements of Cash Flows                                 6

        Notes to Consolidated Financial Statements                            8

Item 2. Management's Discussion and Analysis or Plan of Operation             13

Item 3. Controls and Procedures                                               22

PART II - Other Information                                                   23

Item 1. Legal Proceedings                                                     23

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds           23

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                                                              23

Signatures                                                                    24

Certifications                                                                25

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                           Consolidated Balance Sheets
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                      March 31,       December 31,
                                                                       2007              2006
                                                                    -------------    -------------
<S>                                                                 <C>              <C>
         Assets
Cash and due from banks                                             $   7,976,271    $  72,142,452
Federal funds sold                                                     40,582,891       20,522,501
                                                                    -------------    -------------
   Total cash and cash equivalents                                     48,559,162       92,664,953
Interest-bearing time deposits                                            335,662          285,668
Securities available for sale                                          52,552,776       45,831,623
Federal Home Loan Bank stock                                            5,603,773        5,603,773
Loans, net of allowance for loan losses
   of $1,757,704 and $1,710,247, respectively                         249,394,200      244,022,905
Loans held for sale                                                       576,394        1,002,318
Property and equipment, net                                             7,247,230        6,892,679
Accrued interest receivable                                             1,541,301        1,555,823
Mortgage servicing rights                                                 412,494          412,013
Goodwill                                                                9,402,608        9,402,608
Core deposit intangible                                                 1,917,001        2,074,000
Other assets                                                              476,739          543,423
                                                                    -------------    -------------
         Total assets                                               $ 378,019,340    $ 410,291,786
                                                                    =============    =============
         Liabilities and Stockholders' Equity
Liabilities:
   Deposits:
      Non-interest bearing deposits                                 $  13,174,305    $  22,037,287
      Interest bearing deposits                                       230,238,313      248,792,359
                                                                    -------------    -------------
         Total deposits                                               243,412,618      270,829,646
Federal Home Loan Bank advances                                        10,362,919       10,325,920
Securities sold under agreement to repurchase                          24,832,795       29,437,580
Subordinated debentures                                                 3,809,032        3,798,016
Accrued interest payable                                                  712,277          685,617
Other liabilities                                                       1,361,148        1,886,482
                                                                    -------------    -------------
         Total liabilities                                            284,490,789      316,963,261
                                                                    -------------    -------------
Commitments, Contingencies and Credit Risk
Stockholders' Equity:
      Preferred stock, $.10 par value; 10,000,000 shares
         authorized; no shares issued                                          --               --
      Common stock, $.10 par value; 20,000,000 shares authorized;
         9,074,031 shares issued and outstanding                          907,403          907,403
Additional paid-in capital                                             71,045,482       71,031,467
Retained earnings                                                      22,356,875       22,212,827
Accumulated other comprehensive (loss)                                    (65,974)         (92,817)
Unearned Employee Stock Ownership Plan shares                            (715,235)        (730,355)
                                                                    -------------    -------------
         Total stockholders' equity                                    93,528,551       93,328,525
                                                                    -------------    -------------
         Total liabilities and stockholders' equity                 $ 378,019,340    $ 410,291,786
                                                                    =============    =============
</TABLE>

See Accompanying Notes to Consolidated Financial Statements.

                                     3

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                        Consolidated Statements of Income
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                            Three Months Ended
                                                                                 March 31,
                                                                        --------------------------
                                                                           2007           2006
                                                                        -----------    -----------
<S>                                                                     <C>            <C>
Interest and dividend income:
   Interest and fees on loans                                           $ 4,179,047    $ 1,693,404
   Interest on taxable securities                                           605,970        138,710
   Interest on non-taxable securities                                        37,772             --
   FHLB dividends                                                            51,350         46,774
   Interest-bearing deposits and federal fiunds sold                        631,477         35,697
                                                                        -----------    -----------
         Total interest and dividend income                               5,505,616      1,914,585
                                                                        -----------    -----------
Interest on deposits                                                      2,465,501        872,568
Interest on Federal Home Loan Bank advances                                 146,254             --
Interest on securities sold under agreement to repurchase                   186,749             --
Interest on subordinated debentures                                          73,444             --
                                                                        -----------    -----------
         Total interest expense                                           2,871,948        872,568
                                                                        -----------    -----------
         Net interest income                                              2,633,668      1,042,017
Provision for loan losses                                                    45,000             --
                                                                        -----------    -----------
         Net interest income after provision for loan losses              2,588,668      1,042,017
                                                                        -----------    -----------
Noninterest income:
      Service fees on deposit accounts                                       39,216             --
      Other service charges and fees                                         33,753             --
      Loan servicing fees                                                    27,783             --
      Gain on sale of loans                                                  27,263             --
      Amortization of mortgage servicing rights                             (20,543)            --
      Other                                                                   1,222          1,092
                                                                        -----------    -----------
         Total noninterest income                                           108,694          1,092
                                                                        -----------    -----------
Noninterest expense:
      Compensation and employee benefits                                    698,783        229,663
      Occupancy expense                                                     206,139         28,634
      Data processing services                                              106,590         18,455
      Advertising                                                            85,323         76,569
      Director fees                                                          58,300         44,450
      Professional fees                                                     122,759         51,086
      Amortization of core deposit intangible                               156,999             --
      Other                                                                 187,768         55,382
                                                                        -----------    -----------
         Total noninterest expense                                        1,622,661        504,239
                                                                        -----------    -----------
         Income before income taxes                                       1,074,701        538,870
Income taxes                                                                386,750        205,000
                                                                        -----------    -----------
         Net income                                                     $   687,951    $   333,870
                                                                        ===========    ===========
Basic and diluted income per share (see Note 5)                         $      0.08    $      0.04
                                                                        ===========    ===========
Dividends per share                                                     $      0.06    $      0.06
                                                                        ===========    ===========
</TABLE>

See Accompanying Notes to Consolidated Financial Statements.

                                        4

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                 Consolidated Statements of Comprehensive Income
                                   (Unaudited)

                                                           Three Months Ended
                                                                March 31,
                                                          ---------------------
                                                             2007        2006
                                                          ---------   ---------

Net income                                                $ 687,951   $ 333,870
Other comprehensive income:
   Unrealized gains (losses) on securities
      arising during the period, net of tax                  26,843     (50,094)
                                                          ---------   ---------
Comprehensive income                                      $ 714,794   $ 283,776
                                                          =========   =========

See Accompanying Notes to Consolidated Financial Statements.

                                        5

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                      Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                   Three Months Ended
                                                                        March 31,
                                                              ----------------------------
                                                                  2007            2006
                                                              ------------    ------------
<S>                                                           <C>             <C>
Cash flows from operating activities:
   Net income                                                 $    687,951    $    333,870
   Adjustments to reconcile net income to net
      cash provided by operating activities:
      Amortization of:
         Deferred loan origination (fees) costs, net               (11,195)         (3,515)
         Premiums and discounts on securities                       23,227           2,861
         Premiums and discounts on loans                          (150,000)             --
         Core deposit intangible                                   156,999              --
         Mortgage servicing rights                                  20,543              --
         Premiums and discounts on deposits                         (4,000)             --
         Premiums and discounts on FHLB advances                    36,999              --
         Premiums and discounts on subordinated debt                11,016              --
      Provision for loan losses                                     45,000              --
      Depreciation expense                                          97,152          13,917
      ESOP expense                                                  21,000          15,000
      Gain on sale of loans                                        (27,263)             --
      Proceeds from sales of loans held for sale                 1,310,098              --
      Originations of loans held for sale                         (856,911)             --
      Change in assets and liabilities:
         Decrease (increase) in accrued interest receivable         14,522          34,067
         Decrease (increase) in other assets                         4,410        (475,708)
         Increase (decrease) in accrued interest payable            26,660             863
         Increase (decrease) in other liabilities                 (500,577)        106,136
                                                              ------------    ------------
            Net cash flows from operating activities               905,631          27,491
                                                              ------------    ------------
Cash flows from investing activities:
   Available for sale securities:
      Purchases                                                 (8,029,559)     (1,769,463)
      Proceeds from calls and maturities                           750,000         750,000
      Proceeds from pay-downs                                      578,515              --
   Held to maturity securities:
      Proceeds from pay-downs                                           --          15,156
   Purchase of interest-bearing time deposits                      (49,994)             --
   Loan originations, net of principal collected                (5,255,100)       (120,958)
   Purchase of property and equipment                             (451,703)             --
                                                              ------------    ------------
            Net cash flows from investing activities          $(12,457,841)   $ (1,125,265)
                                                              ------------    ------------
</TABLE>

                                                                     (Continued)

                                        6

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                      Consolidated Statements of Cash Flows
                                   (Unaudited)

(Continued)

<TABLE>
<CAPTION>
                                                                   Three Months Ended
                                                                         March 31,
                                                              ----------------------------
                                                                  2007             2006
                                                              ------------    ------------
<S>                                                           <C>             <C>
Cash flows from financing activities:
   Net increase (decrease) in deposits                        $(27,413,028)   $  1,430,464
   Net increase (decrease) in other borrowings                  (4,604,785)             --
   Cash dividends                                                 (535,768)       (184,814)
                                                              ------------    ------------
         Net cash flows from financing activities              (32,553,581)      1,245,650
                                                              ------------    ------------
Net increase (decrease) in cash and cash equivalents           (44,105,791)        147,876
Cash and cash equivalents at beginning of period                92,664,953       3,427,901
                                                              ------------    ------------
Cash and cash equivalents at end of period                    $ 48,559,162    $  3,575,777
                                                              ============    ============
Supplemental disclosures of cash flow information:
   Cash paid (received) during the period for:
      Interest                                                $  2,801,273    $    871,705
      Income taxes, net of refunds                            $    850,000    $         --
</TABLE>

See Accompanying Notes to Consolidated Financial Statements.

                                        7

<PAGE>
                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements

(1)   The  information  contained  in the  accompanying  consolidated  financial
      statements is unaudited.  In the opinion of management,  the  consolidated
      financial  statements  contain all  adjustments  (none of which were other
      than normal  recurring  entries)  necessary  for a fair  statement  of the
      results of operations for the interim  periods.  The results of operations
      for the interim  periods  are not  necessarily  indicative  of the results
      which may be  expected  for the entire  fiscal  year.  These  consolidated
      financial  statements  should be read in conjunction with the consolidated
      financial  statements of First Clover Leaf Financial  Corp.  (Company) for
      the year ended  December 31, 2006  contained in the 2006 Annual  Report to
      stockholders that is filed as an exhibit to the Company's Annual Report on
      Form 10-KSB.

      On  January  2,  2001,   First  Federal  Savings  &  Loan  Association  of
      Edwardsville  (Association)  reorganized  into the two-tier mutual holding
      company structure. As part of the reorganization, the Association became a
      capital stock savings and loan  association and a wholly-owned  subsidiary
      of First Federal Financial Services, Inc., which became the majority-owned
      subsidiary of First Federal Financial Services, MHC (MHC). On November 20,
      2003, the Board of Directors  adopted a plan to complete an initial public
      offering  of the  common  stock of the  Company.  In  connection  with the
      offering,  the Company  offered its common stock to the  depositors of the
      Association as of specified dates and to an employee stock ownership plan.
      The initial public  offering was  consummated on June 28, 2004 through the
      sale and  issuance by the Company of  1,764,027  shares of common stock at
      $10 per share.  In addition,  the Company issued  2,156,033  shares to the
      MHC,  resulting in the MHC  retaining a 55%  ownership  percentage  in the
      Company. Net proceeds from the sale of common stock were $16,011,975 after
      deduction  of  conversion  costs of $746,285,  and  unearned  compensation
      related to shares issued to the ESOP.

      On February 3, 2006, the Company  announced that the Board of Directors of
      the MHC adopted a Plan of Conversion and Reorganization to convert the MHC
      to a capital stock  corporation and conduct a simultaneous  stock offering
      (Conversion). In addition, on February 3, 2006, the Company entered into a
      definitive  merger  agreement to acquire Clover Leaf Financial  Corp., the
      holding company of Clover Leaf Bank, an Illinois state bank  headquartered
      in Edwardsville,  Illinois  (collectively Clover Leaf), pursuant to which,
      upon  completion of the Conversion,  First Clover Leaf Financial  Corp., a
      new Maryland  corporation (First Clover Leaf or Company) would acquire all
      of the common stock of Clover Leaf (Acquisition).

      The Conversion and  Acquisition  was  consummated on July 10, 2006 through
      the sale and issuance by First  Clover Leaf of 4,174,125  shares of common
      stock at $10 per share.  Net  proceeds  from the sale of common stock were
      $40.14 million after  deduction of conversion  costs of $1.60 million.  In
      addition,  each  outstanding  share of the Company was converted  into the
      right to receive  1.936 shares of First Clover  Leaf's  common  stock,  or
      3,415,193  total  shares.  Shareholders  of Clover  Leaf  Financial  Corp.
      received  total  merger  consideration  of $21.2  million,  consisting  of
      1,484,800 shares of First Clover Leaf common stock and approximately  $6.4
      million  of cash,  or $41.56 of merger  consideration  per share of Clover
      Leaf Financial Corp. In addition,  fractional shares in the aggregate,  or
      87 shares,  were  redeemed  for cash.  As a result of the  Conversion  and
      Acquisition,   First  Clover  Leaf  has   9,074,031   shares   issued  and
      outstanding.  Clover Leaf Bank merged its  operations  into First  Federal
      Savings and Loan  Association of  Edwardsville as of July 10, 2006 and was
      renamed First Clover Leaf Bank (Bank). First Clover Leaf's common stock is
      traded on the NASDAQ  Capital  Market under the symbol "FCLF." As required
      by  current  regulations,  a  liquidation  account  in the amount of $20.7
      million was established in conjunction with the Conversion.  All per share
      disclosures  have been  adjusted  to reflect  the effect of the  exchanged
      shares.

                                        8

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements

      As a result,  each eligible account holder or supplemental  account holder
      will be entitled to a proportionate  share of this account in the event of
      a complete  liquidation  of the Bank,  and only in such event.  This share
      will be reduced if the eligible account  holder's or supplemental  account
      holder's deposit balance falls below the amounts on the date of record and
      will cease to exist if the account is closed. The liquidation account will
      never be increased  despite any increase  after  Conversion in the related
      deposit  balance.  The  Bank  may  not  declare,  pay a  dividend  on,  or
      repurchase  any of its capital  stock of the Bank,  if the effect  thereof
      would cause retained earnings to be reduced below the liquidation  account
      amount or regulatory  capital  requirements.  Any purchase of First Clover
      Leaf common stock will be conducted in accordance with applicable laws and
      regulations. First Clover Leaf expects that, subject to regulatory capital
      requirements  of the Bank,  financial  condition and results of operations
      for First Clover Leaf and the Bank,  quarterly  dividends will continue to
      be paid in the future.  No assurances  can be given that dividends will be
      paid in the future.

      On April 24, 2007,  the Board of Directors of the Company  declared a cash
      dividend on the  Company's  common  stock of $.06 per share.  The dividend
      will be  payable  to  stockholders  of  record  as of May 18,  2007 and is
      expected to be paid on May 25, 2007.

(2)   On July 10, 2006, the Company  acquired Clover Leaf Financial  Corp.,  the
      parent company of Clover Leaf Bank.  Shareholders of Clover Leaf Financial
      Corp. received total merger consideration of $21.2 million,  consisting of
      1,484,800 shares of First Clover Leaf common stock and approximately  $6.4
      million  of cash,  or $41.56 of merger  consideration  per share of Clover
      Leaf Financial Corp. The Company incurred  acquisition  costs of $343,504.
      The  acquisition  was  accounted  for  using  the  purchase  method  under
      Statement  of Financial  Accounting  Standards  (SFAS) No. 141,  "Business
      Combinations."   Fair  value   adjustments  on  the  assets  acquired  and
      liabilities  assumed will be amortized over the estimated  useful lives of
      the related assets and liabilities.  The core deposit  intangible of $2.39
      million will be amortized over 7.6 years using the sum-of-the-years digits
      method.  First Clover Leaf recorded fair value  accounting  adjustments of
      $329,000,  net of income taxes of $202,000 and core deposit intangibles of
      $1.48  million,  net of income taxes of  $909,000.  Based upon Clover Leaf
      Financial Corp. stockholders' equity of $10.33 million,  goodwill amounted
      to $9.4 million at July 10, 2006. As a result of the acquisition, the Bank
      will operate three full-service offices (following closure of one existing
      office), and increase its market share and scale of operations.

                                        9

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements

The  following  pro forma  information,  including  the effects of the  purchase
accounting  adjustments,  summarizes  the  results of  operations  for the three
months ended March 31, 2006 as though the  acquisition  had been completed as of
the beginning of the period.

                                                              Three Months Ended
                                                                   March 31,
                                                                 -----------
                                                                     2006
                                                                 -----------

Total interest income                                            $ 5,371,255
Total interest expense                                             2,474,752
                                                                 -----------
   Net interest income                                             2,896,503
Provision for loan losses                                             36,500
Total noninterest income                                             161,363
Total noninterest expense                                          2,205,974
                                                                 -----------
   Income before income taxes                                        815,392
Income taxes                                                         254,133
                                                                 -----------
   Net income                                                    $   561,259
                                                                 ===========
Pro forma basic and diluted income per share                     $      0.08
                                                                 ===========
Pro forma weighted-average shares outstanding                      7,436,521
                                                                 ===========

The pro forma  results of  operations  do not  purport to be  indicative  of the
results which would actually have been obtained had the acquisition  occurred on
the date indicated or which may be obtained in the future.

                                       10

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements

(3)   The gross carrying value and accumulated  amortization of the core deposit
      intangible is presented below:

                                                      March 31,    December 31,
                                                        2007           2006
                                                     -----------   ------------
      Core deposit intangible                        $ 2,391,000   $  2,391,000
      Accumulated amortization                          (473,999)      (317,000)
                                                     -----------   ------------
         Total                                       $ 1,917,001   $  2,074,000
                                                     ===========   ============

      Amortization  expense on the core deposit  intangible for the three months
      ended March 31, 2007 was $156,999.  There was no  amortization  expense of
      core deposit intangible for the three months ended March 31, 2006.

      Estimated  amortization  expense on the core  deposit  intangible  for the
      remaining nine months of December 31, 2007 and each of the five succeeding
      fiscal years is as follows:

                                                                         Core
                                                                       Deposit
                                                                      Intangible
                                                                      ----------
      Nine months ended December 31, 2007                             $  389,001
      Year ended December 31, 2008                                       403,000
      Year ended December 31, 2009                                       297,000
      Year ended December 31, 2010                                       224,000
      Year ended December 31, 2011                                       196,000
      Year ended December 31, 2012                                       196,000

(4)   Unrealized  losses and fair value,  aggregated by investment  category and
      length  of time  that  individual  securities  have  been in a  continuous
      unrealized loss position, as of March 31, 2007, are summarized as follows:

<TABLE>
<CAPTION>
                                             Less than 12 Months          12 Months or More                 Total
                                              Fair       Unrealized        Fair      Unrealized       Fair       Unrealized
                                             Value          loss          Value         loss         Value          loss
                                          ------------   ----------   ------------   ----------   ------------   ----------
<S>                                       <C>            <C>          <C>            <C>          <C>            <C>
      Securities available for sale:
         U.S. government agency
            obligations                   $ 15,504,250   $   40,537   $  8,577,262   $   82,413   $ 24,081,512   $  122,950
         Corporate bonds                            --           --      3,468,824      127,599      3,468,824      127,599
         State and municipal securities        355,979          657             --           --        355,979          657
         Mortgage-backed securities          1,782,959        5,720        245,282        4,193      2,028,241        9,913
                                          ------------   ----------   ------------   ----------   ------------   ----------
                                          $ 17,643,188   $   46,914   $ 12,291,368   $  214,205   $ 29,934,556   $  261,119
                                          ============   ==========   ============   ==========   ============   ==========
</TABLE>

      For all of the above  securities,  the unrealized losses are primarily due
      to changes in interest  rates and, as such, are considered to be temporary
      by the Company.

                                       11

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements

      During July 2006 the Company transferred  securities of $317,505 from held
      to maturity to available  for sale.  The  unrealized  loss at the transfer
      date was $18,941. The decision to transfer is consistent with management's
      current practice of classifying all securities  purchased as available for
      sale.  The  Company  will be  unable  to  classify  securities  as held to
      maturity until a minimum of one year after the transfer date.

(5)   Basic and diluted income per share (EPS)  represents  income  available to
      common  stockholders  divided  by the  weighted  average  number of common
      shares  outstanding.  ESOP shares  which are  committed to be released are
      considered  outstanding  for basic  and  diluted  income  per  share.  The
      weighted-average  share  number for the three  months ended March 31, 2006
      has been restated to reflect the additional shares issued to First Federal
      shareholders through the Conversion described in Note 1.

<TABLE>
<CAPTION>
                                                                Three Months Ended
                                                                     March 31,
                                                             ------------------------
                                                                 2007         2006
                                                             -----------   ----------
      <S>                                                    <C>           <C>
      Net income available to common stockholders            $   687,951   $  333,870
                                                             ===========   ==========

      Basic potential common shares:
         Weighted average shares outstanding                   9,074,031    7,589,318
         Weighted average unallocated Employee Stock
           Ownership Plan shares                                (142,437)    (152,797)
                                                             -----------   ----------
             Basic weighted average shares outstanding         8,931,594    7,436,521

      Dilutive potential common shares                                --           --
                                                             -----------   ----------

      Dilutive weighted average shares outstanding             8,931,594    7,436,521
                                                             ===========   ==========

      Basic and diluted income per share                     $      0.08   $     0.04
                                                             ===========   ==========
</TABLE>

(6)   The Company adopted the provisions of Financial Accounting Standards Board
      Interpretation  No. 48,  "Accounting  for Uncertainty in Income Taxes - an
      Interpretation of FASB Statement No. 109" ("FIN 48"), effective January 1,
      2007. No adjustment  was  recognized  for  uncertain  tax  positions.  The
      Company is  subject  to U.S.  Federal  income  taxes,  as well as State of
      Illinois income taxes. Tax years ending December 31, 2004 through December
      31, 2006 remain open to  examination by these  jurisdictions.  The Company
      recognizes  interest and penalties  related to tax positions in income tax
      expense.  At March  31,  2007,  there was no  accrual  for  uncertain  tax
      positions or related interest.

                                       12

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

Item 2. Management's Discussion and Analysis or Plan of Operation
-------

Forward-Looking Statements
--------------------------

When used in this Form 10-QSB,  the words or phrases "will likely  result," "are
expected  to," "will  continue,"  "is  anticipated,"  "estimate,"  "project"  or
similar expressions are intended to identify "forward-looking statements" within
the meaning of the Private  Securities  Litigation Act of 1995.  Such statements
are subject to certain  risks and  uncertainties  including  changes in economic
conditions  in our market  area,  changes in  policies by  regulatory  agencies,
fluctuations  in  interest  rates,  demand  for loans in our  market  area,  and
competition that could cause actual results to differ materially from historical
earnings and those  presently  anticipated  or projected.  The Company wishes to
caution you not to place undue reliance on any such forward-looking  statements,
which only speak as of the date made.  The Company wishes to advise you that the
factors listed above could affect the Company's financial  performance and could
cause the Company's actual results for future periods to differ  materially from
any  opinions or  statements  expressed  with  respect to future  periods in any
current statements.

The Company does not undertake,  and specifically  disclaims any obligation,  to
publicly  release  the  result  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.

Overview
--------

Net income  increased to $688,000 for the three months ended March 31, 2007 from
$334,000  for the same period last year.  The  increase in net income was due to
higher net interest income and noninterest income, which more than offset higher
noninterest  expense and higher income taxes. Basic and diluted income per share
was  $.08  and $.04  for the  three  months  ended  March  31,  2007  and  2006,
respectively.

Critical Accounting Policies
----------------------------

We consider accounting policies involving  significant judgments and assumptions
by management  that have, or could have, a material impact on the carrying value
of certain assets or on income to be critical  accounting  policies.  Management
makes significant  estimates and has identified the allowance for loan losses as
the most critical.

Allowance  for Loan Losses.  The  allowance  for loan losses is  established  as
losses are  estimated  to have  occurred  through a  provision  for loan  losses
charged to  earnings.  Loan  losses  are  charged  against  the  allowance  when
management  believes  the  uncollectibility  of a  loan  balance  is  confirmed.
Subsequent recoveries, if any, are credited to the allowance.

                                       13

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            Management's Discussion and Analysis or Plan of Operation

The allowance for loan losses is evaluated on a regular basis by management  and
is based upon management's periodic review of the collectibility of the loans in
light of  historical  experience,  the nature and volume of the loan  portfolio,
adverse  situations that may affect the borrower's  ability to repay,  estimated
value of any  underlying  collateral and prevailing  economic  conditions.  This
evaluation  is  inherently   subjective  as  it  requires   estimates  that  are
susceptible to significant revision as more information becomes available.

The allowance  consists of specific,  general and  unallocated  components.  The
specific  component  relates to loans that are  classified  as either  doubtful,
substandard  or special  mention.  For such loans  that are also  classified  as
impaired,  an  allowance  is  established  when the  discounted  cash  flows (or
collateral value or observable  market price) of the impaired loan is lower than
the carrying value of that loan.  The general  component  covers  non-classified
loans  and is based on  historical  loss  experience  adjusted  for  qualitative
factors.  An  unallocated  component is maintained to cover  uncertainties  that
could affect management's estimate of probable losses. The unallocated component
of the allowance  reflects the margin of imprecision  inherent in the underlying
assumptions used in the methodologies for estimating specific and general losses
in the portfolio.

A loan is considered  impaired when, based on current information and events, it
is probable that the Company will be unable to collect the scheduled payments of
principal or interest  when due according to the  contractual  terms of the loan
agreement.  Factors  considered by management in determining  impairment include
payment status,  collateral  value, and the probability of collecting  scheduled
principal and interest  payments when due. Loans that  experience  insignificant
payment delays and payment shortfalls  generally are not classified as impaired.
Management  determines the significance of payment delays and payment shortfalls
on a case-by-case  basis,  taking into  consideration  all of the  circumstances
surrounding  the loan and the borrower,  including the length of the delay,  the
reasons for the delay,  the borrower's  prior payment record,  and the amount of
the  shortfall in relation to the  principal  and interest  owed.  Impairment is
measured on a loan by loan basis for commercial and construction loans by either
the  present  value of  expected  future  cash  flows  discounted  at the loan's
effective  interest rate, the loan's  obtainable market price, or the fair value
of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for
impairment.  Accordingly,  the Company does not separately  identify  individual
consumer and residential loans for impairment disclosures, unless such loans are
the subject of a restructuring agreement.

Qualitative Disclosures of Market Risk
--------------------------------------

During the relatively low interest rate  environment  that has existed in recent
years,  we have  implemented  the following  strategies to manage  interest rate
risk: (i) maintaining a high equity-to-assets ratio; and (ii) offering a variety
of adjustable rate loan products, including adjustable rate one- to four-family,
multifamily and non-residential mortgage loans, and short-term consumer loans, a
variety  of   adjustable-rate   commercial   loans.   By   maintaining   a  high
equity-to-assets  ratio  and by  investing  in  adjustable-rate  and  short-term
assets, we are better positioned to react to increases in market interest rates.
However,  maintaining high equity balances reduces the  return-on-equity  ratio,
and  investments  in  shorter-term  assets  generally  bear  lower  yields  than
longer-term investments.

                                       14

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            Management's Discussion and Analysis or Plan of Operation

Quantitative Disclosures of Market Risk
---------------------------------------

The majority of First Clover Leaf Bank's assets and  liabilities are monetary in
nature. Consequently,  the most significant form of market risk is interest rate
risk.  First Clover Leaf's assets,  consisting  primarily of loans,  have longer
maturities than its liabilities,  consisting primarily of deposits. As a result,
the  principal  part of First  Clover  Leaf's  business  strategy  is to  manage
interest rate risk and reduce the exposure of our net interest income to changes
in market interest rates. Accordingly, the board of directors has established an
Asset/Liability  Management  Committee  which is responsible  for evaluating the
interest rate risk inherent in assets and liabilities, for determining the level
of risk  that is  appropriate  given  First  Clover  Leaf's  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 meets as needed to
review the asset/liability policies and interest rate risk position.

The Office of Thrift  Supervision  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 measure 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 basis points.

Liquidity and Capital Resources
-------------------------------

We maintain liquid assets at levels considered adequate to meet liquidity needs.
We adjust our liquidity levels to fund deposit  outflows,  pay real estate taxes
on mortgage  loans,  repay our  borrowings  and fund loan  commitments.  We also
adjust  liquidity  as  appropriate  to  meet  asset  and  liability   management
objectives.

Our primary  sources of liquidity are deposits,  amortization  and prepayment of
loans, maturities of investment securities and other short-term investments, and
earnings  and  funds  provided  from  operations.   While  scheduled   principal
repayments on loans are a relatively  predictable source of funds, deposit flows
and loan prepayments are greatly  influenced by market interest rates,  economic
conditions,  and rates offered by our competition.  We set the interest rates on
our deposits to maintain a desired  level of total  deposits.  In  addition,  we
invest  excess  funds  in  short-term  interest-earning  assets,  which  provide
liquidity to meet lending requirements.

A portion of our liquidity  consists of cash and cash  equivalents,  which are a
product of our operating,  investing and financing activities. At March 31, 2007
and December 31,  2006,  $48.6  million and $92.7  million,  respectively,  were
invested in cash and cash equivalents. The primary sources of cash are principal
repayments  on  loans,  proceeds  from the calls and  maturities  of  investment
securities,  increases in deposit  accounts  and advances  from the Federal Home
Loan Bank of Chicago.

Cash flows are derived  from  operating  activities,  investing  activities  and
financing  activities as reported in the  Consolidated  Statements of Cash Flows
included with the Consolidated Financial Statements.

                                       15

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            Management's Discussion and Analysis or Plan of Operation

Our primary  investing  activities are the origination of loans and the purchase
of investment securities. During the three months ended March 31, 2007 and 2006,
our loan  originations,  net of  collected  principal,  totaled $5.3 million and
$121,000,  respectively.  We sold $1.3  million of loans during the three months
ended March 31, 2007. No loans were sold during the  comparable  period in 2006.
Cash  received  from  calls  and  maturities  of  available-for-sale  investment
securities  totaled  $750,000  for each of the three months ended March 31, 2007
and 2006.  We  purchased  $8.0  million and $1.8  million in  available-for-sale
investment  securities  during the three  months  ended March 31, 2007 and 2006,
respectively.   We  received   proceeds  of  $579,000   from  the   pay-down  of
available-for-sale  securities  during the three  months  ended March 31,  2007.
There were no proceeds received from pay-downs of available-for-sale  securities
during the same period in 2006.

Deposit  flows are  generally  affected  by the  level of  interest  rates,  the
interest rates and products offered by local competitors, and other factors. Due
to the change in the level of deposits with one  significant  customer,  the net
decrease  in total  deposits  and other  borrowings  was $27.4  million and $4.6
million,  respectively,  for the three months  ended March 31, 2007.  During the
comparable period in 2006 the net increase in deposits was $1.4 million.

Liquidity  management  is  both a  daily  and  long-term  function  of  business
management.  If we require funds beyond our ability to generate them internally,
borrowing  agreements  exist with the Federal  Home Loan Bank of Chicago,  which
provides an additional  source of funds. At March 31, 2007, we had $10.4 million
in  advances  from the  Federal  Home  Loan  Bank of  Chicago  and an  available
borrowing limit of approximately $58.6 million.

The Bank is required to maintain  certain  minimum  capital  requirements  under
Office of Thrift Supervision  regulations.  Failure by a savings  institution to
meet minimum capital  requirements can result in certain  mandatory and possible
discretionary actions by regulators,  which, if undertaken,  could have a direct
material  effect on the Bank's  financial  statements.  The Bank was  considered
"well-capitalized"  at March 31, 2007. Under the capital adequacy guidelines and
regulatory  framework for prompt corrective  action, the Bank must meet specific
capital  guidelines  that involve  quantitative  measures of the Bank's  assets,
liabilities,  and certain off-balance sheet items as calculated under regulatory
accounting  practices.  See the Regulatory  Capital section of the  Management's
Discussion  and  Analysis or Plan of  Operation  for further  discussion  of the
Bank's regulatory capital and related regulatory requirements.

Off-Balance Sheet Arrangements
------------------------------

In the  ordinary  course of business,  the Company is a party to  credit-related
financial instruments with off-balance sheet risk to meet the financing needs of
our customers. These financial instruments include commitments to extend credit.
The Company  follows the same credit  policies in making  commitments as it does
for on-balance sheet instruments.

Commitments  to extend  credit are  agreements  to lend to a customer as long as
there is no violation of any condition established in the contract.  Commitments
generally  have fixed  expiration  dates or other  termination  clauses  and may
require  payment of a fee. The commitments for equity lines of credit may expire
without  being  drawn  upon.  Therefore,  the total  commitment  amounts  do not
necessarily  represent  future  cash  requirements.  The  amount  of  collateral
obtained,  if it is deemed  necessary by the Company,  is based on  management's
credit evaluation of the customer.

                                       16

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            Management's Discussion and Analysis or Plan of Operation

Unfunded  commitments  under  construction  lines of credit for  residential and
multi-family properties are commitments for possible future extensions of credit
to existing customers. These lines of credit are uncollateralized and usually do
not  contain a  specified  maturity  date and may not be drawn upon to the total
extent to which the Company is committed.

Standby letters of credit are conditional  commitments  issued by the Company to
guarantee the performance of a customer to a third party.

A summary of the notional or contractual amounts of financial instruments,  with
off-balance-sheet risk at March 31, 2007 follows:

<TABLE>
<CAPTION>
                                                                                      Range of
                                            Variable       Fixed                      Rates on
                                              Rate         Rate          Total       Fixed Rate
                                          Commitments   Commitments   Commitments   Commitments
                                          -----------   -----------   -----------   ------------
                                                          (Dollars in thousands)
<S>                                       <C>           <C>           <C>           <C>
Commitments to extend credit              $    14,463   $     7,053   $    21,516   5.25%-18.00%
Standby letters of credit                 $     1,408   $     2,416   $     3,824   6.00%-10.25%
</TABLE>

Recent Accounting Pronouncements
--------------------------------

The  following  accounting  standards  were  recently  issued  relating  to  the
financial services industry:

In September 2006, the FASB issued SFAS No. 157, "Fair Value  Measurements,"  to
define fair value,  establish a framework  for  measuring  fair value and expand
disclosures  about  fair  values.  The  Statement  is  effective  for  financial
statements  issued for fiscal years  beginning  after  November  15,  2007,  and
interim periods within those fiscal years.  The Company does not expect SFAS No.
157 to have a material impact on the Company's  financial position or results of
operation.

In February  2007,  the FASB issued  SFAS No.  159,  "The Fair Value  Option for
Financial  Assets and Financial  Liabilities."  SFAS No. 159 permits entities to
choose to measure many  financial  instruments  and certain  other items at fair
value.  Entities shall report  unrealized  gains and losses on those items which
the fair value option has been elected in earnings. SFAS No. 159 is effective as
of the beginning of an entity's first fiscal year that begins after November 15,
2007. The Company is currently  evaluating the requirements of the Statement and
impact on the Company's financial position and results of operations.

Comparison of Financial Condition at March 31, 2007 and December 31, 2006
-------------------------------------------------------------------------

Total Assets.  Total assets  decreased to $378.0  million at March 31, 2007 from
$410.3  million at December 31, 2006. The decrease was due to the change in cash
levels as we  experienced  a decline in deposits with one  significant  customer
which impacted our excess cash  balances.  Federal funds sold increased to $40.6
million at March 31, 2007 from $20.5  million at December  31,  2006,  as excess
funds at year end were  re-invested.  Cash and due from banks  declined  to $8.0
million at March 31, 2007 from $72.1  million at December 31,  2006.  Securities
available  for sale  increased  to $52.6  million  at March 31,  2007 from $45.8
million at December  31, 2006.  The  increase was due  primarily to purchases of
$8.0  million,  partially  offset by  maturities  and  pay-downs of $750,000 and
$579,000,  respectively.  At March 31,  2007,  Federal Home Loan Bank of Chicago
(FHLBC) stock amounted to $5.6 million. Loans, net amounted to $249.4 million at
March 31, 2007,  compared to $244.0  million at December 31, 2006.  The increase
was due primarily to new loan originations in excess of loan collections of $5.3
million. Property and equipment increased to $7.2 million at March 31, 2007 from
$6.9 million at December 31, 2006  primarily due to the renovation of one of the
Bank's branch offices.

                                       17

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            Management's Discussion and Analysis or Plan of Operation

Total  Liabilities.  Deposits decreased to $243.4 million at March 31, 2007 from
$270.8  million at December 31, 2006 as a result of net  withdrawals,  primarily
with one significant  customer.  Due to the nature of this customer's  business,
large fluctuations in their deposit accounts is a normal occurrence.  Securities
sold under  agreement to  repurchase  dropped to $24.8 million at March 31, 2007
from $29.4 million at December 31, 2006 due to the repayment of such borrowings.
Other liabilities  decreased to $1.4 million at March 31, 2007 from $1.9 million
at December 31, 2006  primarily  due to the timing of payment of Federal  income
taxes.

Stockholders'  Equity.  Stockholders' equity increased to $93.5 million at March
31, 2007 from $93.3 million at December 31, 2006, principally as a result of net
income of  $688,000  for the first  fiscal  quarter,  offset  partially  by cash
dividends paid of $536,000.

Regulatory Capital
------------------

The Bank is required to maintain certain minimum capital  requirements under OTS
regulations.   Failure  by  a  savings   institution  to  meet  minimum  capital
requirements can result in certain mandatory and possible  discretionary actions
by regulators,  which, if undertaken, could have a direct material effect on the
Bank's  financial   statements.   Under  the  capital  adequacy  guidelines  and
regulatory  framework for prompt corrective  action, the Bank must meet specific
capital  guidelines  that involve  quantitative  measures of the Bank's  assets,
liabilities,  and certain off-balance sheet items as calculated under regulatory
accounting  practices.  The capital amounts and classifications are also subject
to judgments  by the  regulators  about  components,  risk-weightings  and other
factors.

The Bank's actual and required capital amounts and ratios at March 31, 2007 were
as follows:

<TABLE>
<CAPTION>
                                                                         Minimum Required
                                                               ------------------------------------
                                                                  for Capital        to be "Well
                                                Actual              Adequacy         Capitalized"
                                          ------------------   -----------------   ----------------
                                            Amount     Ratio     Amount    Ratio    Amount    Ratio
                                          ----------   -----   ---------   -----   --------   -----
                                                            (Dollars in Thousands)
<S>                                       <C>           <C>    <C>         <C>     <C>         <C>
Stockholders' equity                      $   75,847
Goodwill and core deposit intangible         (11,320)
Disallowed servicing assets                     (412)
Unrealized loss on securities AFS, net            35
                                          ----------
Tier 1 (Tangible) capital                 $   64,150    17.8%  $   5,408     1.5%       N/A      --
General valuation allowance                    1,758
                                          ----------

Total capital to risk-weighted assets     $   65,908    27.3%  $  19,292     8.0%  $ 24,114    10.0%
                                          ==========

Tier 1 capital to risk-weighted assets    $   64,150    26.6%  $     N/A      --   $ 14,469     6.0%

Tier 1 capital to total assets            $   64,150    17.8%  $  14,420     4.0%  $ 18,025     5.0%
</TABLE>

                                       18

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            Management's Discussion and Analysis or Plan of Operation

Asset Quality
-------------

The  following  table  sets forth  information  with  respect  to the  Company's
nonperforming and impaired loans at the dates indicated.

<TABLE>
<CAPTION>
                                                                      March 31,   December 31,
                                                                        2007         2006
                                                                     ----------   ------------
<S>                                                                  <C>          <C>
Loans 90 days or more past due and still accruing                    $   65,911   $     16,267
Nonaccrual loans                                                      2,245,425      1,371,289
Other impaired loans                                                  1,122,914      2,533,898
                                                                     ----------   ------------
   Total nonperforming and impaired loans                            $3,434,250   $  3,921,454
                                                                     ==========   ============

Allowance for losses on nonperforming and impaired loans             $  358,224   $    396,137
                                                                     ==========   ============

Nonperforming and impaired loans with no allowance for losses        $   65,911   $     16,267
                                                                     ==========   ============
</TABLE>

At March 31, 2007, the Company had no loans which were not currently  classified
as  impaired,  nonaccrual,  90 days past due or  restructured  but  where  known
information  about possible  credit problems of borrowers  caused  management to
have serious  concerns as to the ability of the borrowers to comply with present
loan repayment terms and which may result in disclosure as impaired, nonaccrual,
90 days past due or restructured.

Under the Company's  internal  review  policy,  loans  classified as substandard
increased  to $3.5  million at March 31, 2007 from $3.3  million at December 31,
2006.

Following is a summary of activity in the allowance for loan losses:

<TABLE>
<CAPTION>
                                                                         Three Months Ended
                                                                      March 31,     March 31,
                                                                        2007          2006
                                                                     ----------   ------------
<S>                                                                  <C>          <C>
Balance at beginning of period                                       $1,710,247   $    428,419
   Charge-offs                                                               --             --
   Recoveries                                                             2,457             --
   Provision charged to expense                                          45,000             --
                                                                     ----------   ------------
Balance at end of period                                             $1,757,704   $    428,419
                                                                     ==========   ============
</TABLE>

Comparison  of  Operating  Results for the Three Months Ended March 31, 2007 and
--------------------------------------------------------------------------------
March 31, 2006
--------------

General.  Net income  increased to $688,000 for the three months ended March 31,
2007 from $334,000 for the same period last year. The increase in net income was
due to higher net interest income and noninterest income, which more than offset
higher noninterest expense and higher income taxes.

                                       19

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            Management's Discussion and Analysis or Plan of Operation

Net interest income. Net interest income increased to $2.6 million for the three
months ended March 31, 2007 from $1.0 million for the comparable period in 2006.
The increase was due principally to increases in average assets and increases in
yield  resulting  from the Clover Leaf  acquisition  and a higher  interest rate
spread.  Net  interest-earning  assets were $70.6  million for the three  months
ended March 31, 2007, compared to $36.5 million for the same period in 2006. The
ratio of  interest-earning  assets to  interest-bearing  liabilities  dropped to
125.20% for the three  months  ended  March 31,  2007 from  135.55% for the same
period in 2006. The interest rate spread increased to 2.18% for the three months
ended March 31, 2007 versus 2.10% for the same period in 2006.  The average rate
on interest-earning  assets increased by 78 basis points, while the average rate
on  interest-bearing  liabilities  increased by 70 basis points. The increase in
the interest rate spread was  attributable  to a higher yield earned on the loan
portfolio as a result of the Clover Leaf acquisition, which more than offset the
effect of higher rates paid on customer deposits.

Interest  income.  Interest  income on loans  increased  to $4.2 million for the
three months ended March 31, 2007 from $1.7 million for the comparable period in
2006.  Interest  income on loans  increased  as a result of  primarily  a higher
average  balance and yield due principally to the Clover Leaf  acquisition.  The
average  balance of loans was $244.8  million  and $116.0  million for the three
months ended March 31, 2007 and 2006,  respectively.  The average yield on loans
increased  to 6.83% for the three  months  ended  March 31,  2007 from 5.84% for
comparable period in 2006.

Interest  income on securities  increased to $695,000 for the three months ended
March 31, 2007 from $185,000 for the comparable period in 2006.  Interest income
on securities increased due primarily to a higher average balance as a result of
the Clover Leaf acquisition. The average balance of securities was $55.5 million
and  $20.2  million  for the  three  months  ended  March  31,  2007  and  2006,
respectively.

Interest on other interest-bearing deposits increased significantly from $36,000
to $632,000 due to a higher average  balance and yield.  The average  balance of
other interest-bearing deposits was $50.5 million and $3.0 million for the three
months ended March 31, 2007 and 2006,  respectively.  The higher average balance
of other interest-bearing deposits resulted primarily from the net proceeds from
sale  of  First  Clover  Leaf  common   stock.   The  average   yield  on  other
interest-bearing  assets increased to 5.00% for the three months ended March 31,
2007  from  4.79%  for  the  same  period  last  year.   The  higher   yield  on
interest-bearing  deposits  is  due  to  a  rising  interest  rate  environment.
Components of interest  income vary from time to time based on the  availability
and interest rates of loans, securities and other interest-earning assets.

Interest expense. Interest expense on deposits increased to $2.5 million for the
three months ended March 31, 2007 from  $873,000  for the  comparable  period in
2006.  Higher cost of funds resulted from additional  deposits obtained with the
Clover Leaf  acquisition and higher market interest rates paid on  certificates.
The average  balance of deposits was $247.7  million and $102.7  million for the
three  months ended March 31, 2007 and 2006,  respectively.  The average rate on
deposits increased to 3.98% for the three months ended March 31, 2007 from 3.40%
for the same period last year.

Interest on FHLB  advances,  securities  sold under  agreement to repurchase and
subordinated  debentures  resulted from the acquisition of Clover Leaf Financial
Corp.

                                       20

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            Management's Discussion and Analysis or Plan of Operation

Provision  for loan losses.  Provision for loan losses was $45,000 for the three
months  ended March 31,  2007.  There was no  provision  for loan losses for the
comparable period in 2006.  Provision for loan losses is based upon management's
consideration  of  current  economic  conditions,   the  Bank's  loan  portfolio
composition and historical  loss experience used to estimate  probable losses as
well as the level of nonperforming assets and classified assets. Management also
reviews  individual  loans for which full  collectibility  may not be reasonably
assured and  considers,  among other  matters,  the estimated  fair value of the
underlying  collateral.  This evaluation is ongoing and results in variations in
the  Company's  provision  for loan  losses.  The Company is subject to periodic
examination by the OTS, which may require the Company to record increases in the
allowances  based on its  evaluation of available  information.  There can be no
assurance that the OTS will not require further increases to the allowances.

Noninterest  income.  Noninterest  income  increased  to $109,000  for the three
months ended March 31, 2007 from $1,000 for the  comparable  period in 2006. The
increase was due to service charge income on deposit accounts and customer debit
and credit cardholders acquired as a result of the acquisition. In addition, the
Company has  recognized  non interest  income from their loan sale and servicing
activity since the acquisition.

Noninterest expense. Noninterest expense increased to $1.6 million for the three
months  ended March 31, 2007 from  $504,000 for the  comparable  period in 2006.
Compensation  and  employee  benefits,  the  largest  component  of  noninterest
expense,  increased by $469,000 to $699,000 for the three months ended March 31,
2007 from $230,000 for the comparable period in 2006.  Compensation and employee
benefits  increased  as a result of primarily a higher  number of personnel  and
salary levels due to the merger.  As a result of the acquisition,  the number of
full-time equivalent employees increased from 9 to 48.

Occupancy  expense  rose to $206,000  for the three  months ended March 31, 2007
compared  to  $29,000  for the  comparable  period  in 2006.  Occupancy  expense
increased  due to the Clover Leaf  acquisition  and  operation  of four  offices
versus one office in the prior period.

Data processing  services increased to $107,000 for the three months ended March
31,  2007  from  $18,000  for the  comparable  period in 2006.  Data  processing
services rose as a result of the Clover Leaf acquisition of deposits,  including
retail and commercial demand deposit  accounts,  as well as the continued growth
and expansion of product offerings by the Company.

Advertising  increased to $85,000 for the three months ended March 31, 2007 from
$77,000 for the comparable period in 2006 due to more promotions of products and
services.

Director  fees  increased  to $58,000 for the three  months ended March 31, 2007
from  $44,000 for the  comparable  period in 2006.  The  increase  was due to an
increased number of directors as a result of the Clover Leaf acquisition.

Professional services increased to $123,000 for the three months ended March 31,
2007 from  $51,000  for the  comparable  period in 2006.  Professional  services
increased as a result of higher expenses  associated with our status as a larger
and  more  complex  public  company  following  completion  of the  Clover  Leaf
acquisition.

Other  noninterest  expenses  increased  to $188,000  for the three months ended
March 31, 2007 from $55,000 for the comparable period in 2006. Other noninterest
expense increased due to the Clover Leaf acquisition, including expenses related
to demand deposit accounts and internet banking services.

Income  taxes.  Income  taxes  increased  to $387,000 for the three months ended
March 31, 2007 from  $205,000  for the  comparable  period in 2006.  The primary
reason  for the  change in income  taxes was the level of  pre-tax  income.  The
effective  tax rate was 36.0% for the three  months  ended March 31, 2007 versus
38.0% for the comparable period in 2006.

                                       21

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

Item 3. Controls and Procedures

As of the end of the period covered by this report,  the Company  carried out an
evaluation,  under the supervision and with the  participation  of the Company's
principal   executive   officer  and  principal   financial   officer,   of  the
effectiveness of the design and operation of the Company's  disclosure  controls
and procedures.  Based on this  evaluation,  the Company's  principal  executive
officer and principal financial officer concluded that the Company's  disclosure
controls  and  procedures  are  effective  in timely  alerting  them to material
information required to be included in the Company's periodic SEC reports.

In addition,  there have been no changes 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.

                                       22

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                           PART II - Other Information

Item 1 - Legal Proceedings.

      There are no material legal proceedings to which the Company is a party or
      of which any of their property is subject.  From time to time, the Company
      is a party to various legal proceedings incident to its business.

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

      (a) Not applicable

      (b) Not applicable

      (c) The Company did not repurchase any of its equity securities during the
      quarter ended March 31, 2007.

Item 3 - Defaults upon Senior Securities.

      Not applicable.

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

      Not applicable.

Item 5 - Other Information.

      None

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 Chief Financial  Officer pursuant to Section
                     302 of the Sarbanes-Oxley Act of 2002.

            32:   Certification  pursuant to Section  906 of the  Sarbanes-Oxley
                     Act of 2002.

                                       23

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                                   SIGNATURES
                                   ----------

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

                        FIRST CLOVER LEAF FINANCIAL CORP.
                        ---------------------------------
                             (Small Business Issuer)

DATE: May 14, 2007        BY: /s/ Dennis M. Terry
      ------------            -------------------
                          Dennis M. Terry, President and Chief Executive Officer

                          BY: /s/ Darlene F. McDonald
                              -----------------------
                              Darlene F. McDonald, Senior Vice President and
                              Chief Financial Officer

                                       24