**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**____________**

**FORM      10-QSB**

| x | QUARTERLY                REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT                OF                1934 |
|---|---------------------------------------------------------------------------------------------------------------------------------|

| o | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT |
|---|--------------------------------------------------------------------------------|

**EQUITABLE      FINANCIAL CORP. **

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| **United                States**                                              |   | **14-1941649**                                      |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (I.R.S.                Employer Identification No.) |

**113      North Locust Street, Grand Island, Nebraska 68801**

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**(308)      382-3136**

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**Not      Applicable **

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**EQUITABLE      FINANCIAL CORP.**

**FORM      10-QSB**

**Index**

|                                                 |                                                                                                                                                                          | ***Page                No.*** |
|------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|
|                                                 |                                                                                                                                                                          |                          |
| **PART                I. FINANCIAL INFORMATION**     |                                                                                                                                                                          |
|                                                 |                                                                                                                                                                          |                          |
| Item                1.      | Financial                Statements                                                                                                                                           | 1                             |
|                                                 |                                                                                                                                                                          |                          |
|                                                 | Consolidated                Statements of Financial Condition at three months ended September                30, 2006                (Unaudited) and year ended June 30, 2006 | 1                             |
|                                                 |                                                                                                                                                                          |                          |
|                                                 | Consolidated                Statements of Operations for the three months ended September 30,                2006 and                2005 (Unaudited)                         | 2                             |
|                                                 |                                                                                                                                                                          |                          |
|                                                 | Consolidated                Statements of Stockholders’ Equity for the three months ended September                30, 2006 and 2005 (Unaudited)                        | 3                             |
|                                                 |                                                                                                                                                                          |                          |
|                                                 | Consolidated                Statements of Cash Flows for the three months ended September 30,                2006 and                2005 (Unaudited)                         | 4                             |
|                                                 |                                                                                                                                                                          |                          |
|                                                 | Notes                to Consolidated Unaudited Financial Statements                                                                                                           | 5                             |
|                                                 |                                                                                                                                                                          |                          |
| Item                2.           | Management’s                Discussion and Analysis or Plan of Operation                                                                                                | 7                             |
|                                                 |                                                                                                                                                                          |                          |
| Item                3.           | Controls                and Procedures                                                                                                                                        | 14                            |
|                                                 |                                                                                                                                                                          |                          |
| **PART                II. OTHER INFORMATION**        |                                                                                                                                                                          |
|                                                 |                                                                                                                                                                          |                          |
| Item                1.           | Legal                Proceedings                                                                                                                                              | 15                            |
|                                                 |                                                                                                                                                                          |                          |
| Item                2.           | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                                                    | 16                            |
|                                                 |                                                                                                                                                                          |                          |
| Item                3.           | Defaults                upon Senior Securities                                                                                                                                | 16                            |
|                                                 |                                                                                                                                                                          |                          |
| Item                4.                | Submission                of Matters to a Vote of Security Holders                                                                                                            | 16                            |
|                                                 |                                                                                                                                                                          |                          |
| Item                5.           | Other                Information                                                                                                                                              | 16                            |
|                                                 |                                                                                                                                                                          |                          |
| Item                6.           | Exhibits                                                                                                                                                                      | 16                            |

**Signatures**

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**PART      I. FINANCIAL INFORMATION**

**Item      1. Financial Statements**

|                                                                                                                                                        |   | **September                30,****2006** |        | **June                30,****2006** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|-------------|-------------------------------------|--------|
|                                                                                                                                                        |   |                                     |        |
| **ASSETS**                                                                                                                                                  |   |                                     |        |                                |   |
| Cash                and due from financial institutions                                                                                                     |   | $                                        | 2,877,021   |                                | $      | 2,392,931 |   |
| Federal                funds sold                                                                                                                           |   |                                     | -           |                                |   | 1,700,000 |   |
| Cash                and cash equivalents                                                                                                                    |   |                                     | 2,877,021   |                                |   | 4,092,931 |   |
| Securities                available-for-sale, at fair value                                                                                                 |   |                                     | 9,411,539   |                                |   | 9,429,663 |   |
| Securities                held-to-maturity, fair value at September 30, 2006 - $854,439; and                June                30, 2006-$888,342           |   |                                     | 864,573     |                                |   | 915,184 |   |
| Federal                Home Loan Bank stock, at cost                                                                                                        |   |                                     | 2,344,300   |                                |   | 2,311,800 |   |
| Loans,                net of allowance for loan losses of $954,728 at September 30, 2006                and                $926,312 at June 30, 2006        |   |                                     | 155,472,146 |                                |   | 153,408,146 |   |
| Premises                and equipment, net                                                                                                                  |   |                                     | 6,717,576   |                                |   | 6,067,331 |   |
| Accrued                interest receivable                                                                                                                  |   |                                     | 1,262,200   |                                |   | 1,153,751 |   |
| Other                assets                                                                                                                                 |   |                                     | 1,917,871   |                                |   | 1,382,255 |   |
| Total                assets                                                                                                                                 |   | $                                        | 180,867,226 |                                | $      | 178,761,061 |   |
|                                                                                                                                                        |   |                                     |        |                                |   |   |   |
|                                                                                                                                                        |   |                                     |        |                                |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                               |   |                                     |        |                                |   |   |   |
| Liabilities                                                                                                                                                 |   |                                     |        |                                |   |   |   |
| Deposits                                                                                                                                                    |   |                                     |        |                                |   |   |   |
| Noninterest-bearing                deposits                                                                                                                 |   | $                                        | 5,932,760   |                                | $      | 5,748,057 |   |
| Interest-bearing                deposits                                                                                                                    |   |                                     | 111,023,796 |                                |   | 116,173,516 |   |
| Total                deposits                                                                                                                               |   |                                     | 116,956,556 |                                |   | 121,921,573 |   |
| Federal                Home Loan Bank borrowings                                                                                                            |   |                                     | 38,425,082  |                                |   | 30,604,426 |   |
| Advance                payments from borrowers for taxes and insurance                                                                                      |   |                                     | 401,280     |                                |   | 893,846 |   |
| Accrued                interest payable and other liabilities                                                                                               |   |                                     | 172,173     |                                |   | 246,540 |   |
| Common                stock in ESOP subject to contingent repurchase obligation                                                                             |   |                                     | 89,050      |                                |   | 61,033 |   |
| Commitments                and contingencies                                                                                                                |   |                                     | -           |                                |   | - |   |
| Stockholders’                equity:                                                                                                                  |   |                                     |        |                                |   |   |   |
| Preferred                stock, $0.01 par value per share; authorized 1,000,000 shares, no                shares                are outstanding             |   |                                     | -           |                                |   | - |   |
| Common                stock, $0.01 par value, 14,000,000 shares authorized; 3,297,509 shares                issued at September 30, 2006 and June 30, 2006. |   |                                     | 32,975      |                                |   | 32,975 |   |
| Additional                paid-in capital                                                                                                                   |   |                                     | 13,615,654  |                                |   | 13,617,427 |   |
| Retained                earnings                                                                                                                            |   |                                     | 12,547,293  |                                |   | 12,820,516 |   |
| Accumulated                other comprehensive (loss)                                                                                                       |   |                                     | (80,217     | )                                   |   | (149,962 | ) |
| Unearned                ESOP shares                                                                                                                         |   |                                     | (1,203,570  | )                                   |   | (1,226,280 | ) |
| Reclassification                of ESOP shares                                                                                                              |   |                                     | (89,050     | )                                   |   | (61,033 | ) |
| Total                stockholders’ equity                                                                                                             |   |                                     | 24,823,085  |                                |   | 25,033,643 |   |
| Total                liabilities and stockholders’ equity                                                                                             |   | $                                        | 180,867,226 |                                | $      | 178,761,061 |   |

*See      Notes to the Unaudited Consolidated Financial Statements.*

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|                                                                    |   | **Three                Months Ended****September                30,** |      |
|-------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------|
|                                                                    |   |  **2006**                                                        |      | **2005** |   |
| **Interest                Income**                                      |   |                                                             |      |   |   |
| Loans                                                                   |   | $                                                                     | 2,379,894 |   | $ | 1,826,748 |   |
| Securities                                                              |   |                                                                  | 136,918   |   |   | 155,698 |   |
| Other                                                                   |   |                                                                  | 14,755    |   |   | 9,033 |   |
| Total                interest income                                    |   |                                                                  | 2,531,567 |   |   | 1,991,479 |   |
|                                                                    |   |                                                                  |      |   |   |   |   |
| **Interest                Expense**                                     |   |                                                                  |      |   |   |   |   |
| Deposits                                                                |   |                                                                  | 1,086,528 |   |   | 693,457 |   |
| Federal                Home Loan Bank borrowings                        |   |                                                                  | 459,274   |   |   | 431,500 |   |
| ** **Total                interest expense                         |   |                                                                  | 1,545,802 |   |   | 1,124,957 |   |
|                                                                    |   |                                                                  |      |   |   |   |   |
| **Net                interest income**                                  |   |                                                                  | 985,765   |   |   | 866,522 |   |
| Provision                for loan losses                                |   |                                                                  | 30,000    |   |   | 30,000 |   |
|                                                                    |   |                                                                  |      |   |   |   |   |
| **Net                interest income after provision for loan losses**  |   |                                                                  | 955,765   |   |   | 836,522 |   |
| **Noninterest                income**                                   |   |                                                                  |      |   |   |   |   |
| Service                charges on deposit accounts                      |   |                                                                  | 75,814    |   |   | 53,343 |   |
|                                                                    |   |                                                                  |      |   |   |   |   |
| Brokerage                fee income                                     |   |                                                                  | 152,284   |   |   | 203,778 |   |
| Gain                on sale of loans                                    |   |                                                                  | 19,329    |   |   | - |   |
| Other                loan fees                                          |   |                                                                  | 19,805    |   |   | 65,459 |   |
| Other                income                                             |   |                                                                  | 24,689    |   |   | 35,278 |   |
| Total                noninterest income                                 |   |                                                                  | 291,921   |   |   | 357,858 |   |
|                                                                    |   |                                                                  |      |   |   |   |   |
| **Noninterest                expenses**                                 |   |                                                                  |      |   |   |   |   |
| ** **Salaries                and employee benefits                 |   |                                                                  | 902,106   |   |   | 715,295 |   |
| Director                and committee fees                              |   |                                                                  | 24,450    |   |   | 24,450 |   |
| Data                processing fees                                     |   |                                                                  | 72,373    |   |   | 104,028 |   |
| Occupancy                and equipment                                  |   |                                                                  | 239,272   |   |   | 205,726 |   |
| Regulatory                fees and deposit insurance premium            |   |                                                                  | 14,906    |   |   | 14,587 |   |
| Advertising                and public relations                         |   |                                                                  | 82,442    |   |   | 88,507 |   |
| Contributions                and donations                              |   |                                                                  | 21,519    |   |   | 21,965 |   |
| Insurance                and surety bond premiums                       |   |                                                                  | 25,164    |   |   | 21,162 |   |
| Professional                fees                                        |   |                                                                  | 109,339   |   |   | 56,892 |   |
| Supplies,                telephone, postage                             |   |                                                                  | 69,155    |   |   | 54,882 |   |
| ATM                expenses                                             |   |                                                                  | 9,669     |   |   | 8,160 |   |
| Dues                and subscriptions                                   |   |                                                                  | 13,365    |   |   | 17,587 |   |
| Other                expenses                                           |   |                                                                  | 66,145    |   |   | 56,144 |   |
| Total                noninterest expenses                               |   |                                                                  | 1,649,905 |   |   | 1,389,385 |   |
|                                                                    |   |                                                                  |      |   |   |   |   |
| **(Loss)                before income taxes**                           |   |                                                                  | (402,219  | ) |   | (195,005 | ) |
| Income                tax (benefit)                                     |   |                                                                  | (128,996  | ) |   | (82,599 | ) |
| **Net                (loss)**                                           |   | $                                                                     | (273,223  | ) | $ | (112,406 | ) |
| **Basic                and diluted****(loss)                per share** |   | $                                                                     | (0.09     | ) |   | N/A |   |
|                                                                    |   |                                                                  |      |   |   |   |   |

*See      Notes to the Unaudited Consolidated Financial Statements*
*.*

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|                                                                                                                                                                                     |   | **Common****Stock** |   | **Additional****Paid-In****Capital** |   | **Retained****Earnings** |   | **Unearned****ESOP                Shares** |       | **Accumulated****Other****Comprehensive****Income                (Loss)** |   | **Amount****Reclassified****On                ESOP****Shares** |   | **Total** |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------------------------------------|--------|--------------------------|--------|--------------------------------------------|------------|---------------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|-----------|----------|
|                                                                                                                                                                                     |   |                |   |                                 |   |                     |   |                                       |       |                                                                      |   |                                                           |   |      |     |
| Balance                at June 30, 2005                                                                                                                                                  |   | $                   | -      |                                 | $      | -                        |   | $                                          | 13,889,317 |                                                                      | $      | -                                                              |   | $         | 473,301  |   | $ | - |   | $ | 14,362,618 |   |
| Comprehensive                income (loss)                                                                                                                                               |   |                |   |                                 |   |                     |   |                                       |       |                                                                      |   |                                                           |   |      |     |   |   |   |   |   |   |   |
| Net                income (loss)                                                                                                                                                         |   |                | -      |                                 |   | -                        |   |                                       | (112,406   | )                                                                         |   | -                                                              |   |      | -        |   |   | - |   |   | (112,406 | ) |
| Net                decrease in fair value of securities classified as available-for-sale,                net                of income taxes                                              |   |                | -      |                                 |   | -                        |   |                                       | -          |                                                                      |   | -                                                              |   |      | (134,343 | ) |   | - |   |   | (134,343 | ) |
| Total                comprehensive income                                                                                                                                                |   |                |   |                                 |   |                     |   |                                       |       |                                                                      |   |                                                           |   |      |     |   |   |   |   |   | (246,749 | ) |
| Balance                at September 30, 2005                                                                                                                                             |   | $                   | -      |                                 | $      | -                        |   | $                                          | 13,776,911 |                                                                      | $      | -                                                              |   | $         | 338,958  |   | $ | - |   | $ | 14,115,869 |   |
|                                                                                                                                                                                     |   |                |        |                                 |   |                     |   |                                       |       |                                                                      |   |                                                           |   |      |     |   |   |   |   |   |   |   |
| Balance                at June 30, 2006                                                                                                                                                  |   |                | 32,975 |                                 |   | 13,617,427               |   |                                       | 12,820,516 |                                                                      |   | (1,226,280                                                     | )      |      | (149,962 | ) |   | (61,033 | ) |   | 25,033,643 |   |
| Comprehensive                loss                                                                                                                                                        |   |                | -      |                                 |   | -                        |   |                                       |       |                                                                      |   | -                                                              |   |      | -        |   |   | - |   |   |   |   |
| Net                income (loss)                                                                                                                                                         |   |                | -      |                                 |   | -                        |   |                                       | (273,223   | )                                                                         |   | -                                                              |   |      | -        |   |   | - |   |   | (273,223 | ) |
| Net                increase (decrease) in fair value of securities classified as                available-for-sale, net of income taxes and reclassification                adjustments  |   |                | -      |                                 |   | -                        |   |                                       | -          |                                                                      |   | -                                                              |   |      | 69,745   |   |   | - |   |   | 69,745 |   |
| Total                comprehensive loss                                                                                                                                                  |   |                |   |                                 |   |                     |   |                                       |       |                                                                      |   |                                                           |   |      |     |   |   |   |   |   | 203,478 |   |
|                                                                                                                                                                                     |   |                |   |                                 |   |                     |   |                                       |       |                                                                      |   |                                                           |   |      |     |   |   |   |   |   |   |   |
| Release                of 2,271 unearned ESOP shares                                                                                                                                     |   |                | -      |                                 |   | (1,773                   | )      |                                       | -          |                                                                      |   | 22,710                                                         |   |      | -        |   |   | - |   |   | 20,937 |   |
| Reclassification                due to release and change in fair value of common stock in ESOP subject                to                contingent repurchase obligation of ESOP shares |   |                | -      |                                 |   | -                        |   |                                       | -          |                                                                      |   | -                                                              |   |      | -        |   |   | (28,017 | ) |   | (28,017 | ) |
| Balance                at September 30, 2006                                                                                                                                             |   | $                   | 32,975 |                                 | $      | 13,615,654               |   | $                                          | 12,547,293 |                                                                      | $      | (1,203,570                                                     | )      | $         | 80,217   |   | $ | (89,050 | ) | $ | 24,823,085 |   |

*See      Notes to the Unaudited Consolidated Financial Statements.*

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|                                                                                                              |   | **Three                Months Ended****September                30,** |       |
|-------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|------------|
|                                                                                                              |   | **2006**                                                              |       | **2005** |   |
| **Cash                flows from operating activities:**                                                          |   |                                                                  |       |   |   |
| Net                (loss)                                                                                         |   | $                                                                     | (273,223   | ) | $ | (112,406 | ) |
| Adjustments                to reconcile net (loss) to net cash from operating activities:                         |   |                                                                  |       |   |   |  |   |
| Depreciation                                                                                                      |   |                                                                  | 91,439     |   |   | 48,523 |   |
| Federal                Home Loan Bank stock dividends                                                             |   |                                                                  | (32,500    | ) |   | (22,800 | ) |
| ESOP                expense                                                                                       |   |                                                                  | 20,937     |   |   | - |   |
| Amortization                of:                                                                                   |   |                                                                  |       |   |   |   |   |
| Deferred                loan origination costs, net                                                               |   |                                                                  | (14,156    | ) |   | (100,397 | ) |
| Premiums                and discounts                                                                             |   |                                                                  | 3,875      |   |   | 9,091 |   |
|  Provision                for loan losses                                                                    |   |                                                                  | 30,000     |   |   | 30,000 |   |
| Gain                on sale of loans                                                                              |   |                                                                  | (19,329    | ) |   | - |   |
| Loans                originated for sale                                                                          |   |                                                                  | (1,222,291 | ) |   | - |   |
| Proceeds                from sale of loans                                                                        |   |                                                                  | 1,241,620  |   |   | - |   |
| Change                in:                                                                                         |   |                                                                  |       |   |   |   |   |
| Accrued                interest receivable                                                                        |   |                                                                  | (108,449   | ) |   | (125,818 | ) |
| Other                assets                                                                                       |   |                                                                  | (535,321   | ) |   | (473,788 | ) |
| Accrued                interest payable and other liabilities                                                     |   |                                                                  | (46,350    | ) |   | 23,317 |   |
| Net                cash from operating activities                                                                 |   |                                                                  | (863,748   | ) |   | (724,278 | ) |
|                                                                                                              |   |                                                                  |       |   |   |   |   |
| **Cash                flows from investing activities:**                                                          |   |                                                                  |       |   |   |   |   |
| Net                change in loans                                                                                |   |                                                                  | (2,108,156 | ) |   | (18,202,996 | ) |
| Securities                available-for-sale                                                                      |   |                                                                  |       |   |   |   |   |
| Proceeds                from principal repayments                                                                 |   |                                                                  | 84,977     |   |   | 276,538 |   |
| Securities                held-to-maturity                                                                        |   |                                                                  |       |   |   |   |   |
| Proceeds                from principal repayments                                                                 |   |                                                                  | 49,628     |   |   | 97,258 |   |
| Purchases                of Federal Home Loan Bank stock.                                                         |   |                                                                  | -          |   |   | (214,300 | ) |
| Purchase                of premises and equipment                                                                 |   |                                                                  | (741,684   | ) |   | (138,907 | ) |
| Net                cash from investing activities                                                                 |   |                                                                  | (2,715,235 | ) |   | (18,182,407 | ) |
|                                                                                                              |   |                                                                  |       |   |   |   |   |
| **Cash                flows from financing activities:**                                                          |   |                                                                  |       |   |   |   |   |
| Net                change in deposits                                                                             |   |                                                                  | (4,965,017 | ) |   | 13,286,921 |   |
| Proceeds                from Federal Home Loan Bank borrowings                                                    |   |                                                                  | 8,500,000  |   |   | 30,500,000 |   |
| Repayments                of Federal Home Loan Bank borrowings                                                    |   |                                                                  | (679,344   | ) |   | (24,776,062 | ) |
| Net                change in advance payments from borrowers for taxes and                insurance...... |   |                                                                  | (492,566   | ) |   | (381,129 | ) |
| Net                cash from financing activities                                                                 |   |                                                                  | 2,363,073  |   |   | 18,629,730 |   |
| Increase/decrease                in cash and cash equivalents                                                     |   |                                                                  | (1,215,910 | ) |   | (276,955 | ) |
| Cash                and cash equivalents, beginning of period                                                     |   |                                                                  | 4,092,931  |   |   | 2,159,699 |   |
|                                                                                                              |   |                                                                  |       |   |   |   |   |
| Cash                and cash equivalents, end of period                                                           |   | $                                                                     | 2,877,021  |   | $ | 1,882,744 |   |
|                                                                                                              |   |                                                                  |       |   |   |   |   |
| **Supplemental                cash flow information:**                                                            |   |                                                                  |       |   |   |   |   |
| Interest                paid on deposits and borrowings                                                           |   | $                                                                     | 1,534,045  |   | $ | 386,446 |   |
| Income                taxes (refunded) paid                                                                       |   |                                                                  | -          |   |   | 45,000 |   |
|                                                                                                              |   |                                                                  |       |   |   |   |   |
| **Supplemental                noncash disclosure:**                                                               |   |                                                                  |       |   |   |   |   |
| Common                stock in ESOP subject to contingent repurchase obligation                                   |   | $                                                                     | 89,050     |   | $ | - |   |

*See      notes to the Unaudited Consolidated Financial Statements*

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**EQUITABLE      FINANCIAL CORP.**

**Notes      to the Unaudited Consolidated Financial Statements**

**September      30, 2006**

**(1)      Basis of Presentation**

** **

**(2)      Earnings Per Share**

|                                                               |   | **2006**                                  |      | **2005** |   |
|--------------------------------------------------------------------|--------|-------------------------------------------|-----------|----------|--------|
|                                                               |   | **(Dollars                in thousands)** |      |
| Net                (loss) for the three months ended September 30  |   | $                                         | (273,000  | )        | $      | (112,000 | ) |
| Weighted                average shares outstanding for the quarter |   |                                      | 3,174,881 |     |   | N/A |   |
| Earnings                (loss) per share                           |   | $                                         | (0.09     | )        |   | N/A |   |

----

**(3)      Mutual Holding Company Reorganization and Stock Issuance **

**(4)      Employee Stock Ownership Plan**

**(5)      Recent Accounting Pronouncements **

----

**Item      2. Management’s Discussion and Analysis or Plan of      Operation**

----

**Forward-Looking      Statements**

**General**

----

**Statement      of Financial Condition Analysis**

***Overview***
**.      **
** **

***Loans***

|                                                |   | **September                30, 2006**     |    | **June                30, 2006** |   |
|-----------------------------------------------------|--------|-------------------------------------------|---------|----------------------------------|--------|
|                                                |   | **Amount**                                |    | **Percent**                      |   | **Amount** |   | **Percent** |   |
|                                                |   | **(Dollars                in thousands)** |    |
| Real                estate—mortgage:          |   |                                      |    |                             |   |   |   |   |   |
| One-                to four-family                  |   | $                                         | 78,739  |                             |   | 50.5 | % | $ | 80,031 |   |   | 52.0 | % |
| Multi-family                                        |   |                                      | 7,061   |                             |   | 4.5 |   |   | 7,480 |   |   | 4.9 |   |
| Nonresidential                                      |   |                                      | 31,672  |                             |   | 20.3 |   |   | 30,169 |   |   | 19.6 |   |
| Total                real estate mortgage loans     |   |                                      | 117,472 |                             |   | 75.3 |   |   | 117,680 |   |   | 76.5 |   |
| Construction                                        |   |                                      | 4,363   |                             |   | 2.8 |   |   | 3,790 |   |   | 2.5 |   |
| Commercial                                          |   |                                      | 18,874  |                             |   | 12.1 |   |   | 17,480 |   |   | 11.3 |   |
| Consumer:                                           |   |                                      |    |                             |   |   |   |   |   |   |   |   |   |
| Home                equity                          |   |                                      | 12,449  |                             |   | 8.0 |   |   | 12,287 |   |   | 8.0 |   |
| Other                consumer                       |   |                                      | 2,912   |                             |   | 1.8 |   |   | 2,726 |   |   | 1.7 |   |
| Total                consumer loans                 |   |                                      | 15,361  |                             |   | 9.8 |   |   | 15,013 |   |   | 9.7 |   |
|                                                |   |                                      |    |                             |   |   |   |   |   |   |   |   |   |
| Total                loans                          |   |                                      | 156,070 |                             |   | 100.0 | % |   | 153,963 |   |   | 100.0 | % |
| Deferred                loan origination costs, net |   |                                      | 357     |                             |   |   |   |   | 371 |   |   |   |   |
| Allowance                for loan losses            |   |                                      | (955    | )                                |   |   |   |   | (926 | ) |   |   |   |
|                                                |   |                                      |    |                             |   |   |   |   |   |   |   |   |   |
| Loans,                net                           |   | $                                         | 155,472 |                             |   |   |   | $ | 153,408 |   |   |   |   |

----

***Nonperforming      Assets.***

|                                                      |   | **September                30,****2006**  |    | **June                30,****2006** |   |
|-----------------------------------------------------------|--------|-------------------------------------------|---------|-------------------------------------|--------|
|                                                      |   | **(Dollars                in thousands)** |    |
| Nonaccrual                loans:                          |   |                                      |    |                                |   |
| Real                estate ─ mortgage               |   | $                                         | 338     |                                | $      | 452 |   |
| Construction                                              |   |                                      | ─ |                                |   | ─ |   |
| Commercial                                                |   |                                      | ─ |                                |   | ─ |   |
| Consumer                                                  |   |                                      | 34      |                                |   | 38 |   |
|                                                      |   |                                      |    |                                |   |   |   |
| Total                nonaccrual loans                     |   |                                      | 372     |                                |   | 490 |   |
| Loans                90 days, still on accrual            |   |                                      | 65      |                                |   | 65 |   |
| Foreclosed                assets, net                     |   |                                      | ─ |                                |   | ─ |   |
|                                                      |   |                                      |    |                                |   |   |   |
| Total                nonperforming assets                 |   | $                                         | 437     |                                | $      | 555 |   |
|                                                      |   |                                      |    |                                |   |   |   |
| Total                nonperforming loans to total loans   |   |                                      | 0.3     | %                                   |   | 0.4 | % |
| Total                nonperforming loans to total assets  |   |                                      | 0.2     |                                |   | 0.3 |   |
| Total                nonperforming assets to total assets |   |                                      | 0.2     |                                |   | 0.3 |   |

***Securities.***

***Deposits***

|                                        |   | **September                30, 2006**     |    | **June                30, 2006** |   |
|---------------------------------------------|--------|-------------------------------------------|---------|----------------------------------|--------|
|                                        |   | **Amount**                                |    | **%**                            |   | **Amount** |   | **%** |   |
|                                        |   | **(Dollars                in thousands)** |    |
| Noninterest-bearing                accounts |   | $                                         | 5,933   |                             |   | 5.1 | % | $ | 5,748 |   |   | 4.7 | % |
| Interest-bearing                NOW         |   |                                      | 11,306  |                             |   | 9.7 |   |   | 11,542 |   |   | 9.5 |   |
| Money                market                 |   |                                      | 6,601   |                             |   | 5.6 |   |   | 5,878 |   |   | 4.8 |   |
| Savings                accounts             |   |                                      | 3,992   |                             |   | 3.4 |   |   | 4,445 |   |   | 3.6 |   |
| Certificates                of deposit      |   |                                      | 89,125  |                             |   | 76.2 |   |   | 94,309 |   |   | 77.4 |   |
| Total                                       |   | $                                         | 116,957 |                             |   | 100.0 | % | $ | 121,922 |   |   | 100.0 | % |

----

** **

***Borrowings***
** **
** **

**Results      of Operations for the Three Months Ended September 30, 2006 and      2005**

***Overview.***
** **

***Net      Interest Income.***

|                                             |   | **Three                Months****Ended                September 30,** |   |     |   |
|--------------------------------------------------|--------|-----------------------------------------------------------------------|--------|----------|--------|
|                                             |   | **2006**                                                              |   | **2005** |   | **%                Change** |   |
|                                             |   | **(Dollars                in Thousands)**                             |   |
| **Interest                Income:**              |   |                                                                  |   |     |   |   |   |
| Loans                                            |   | $                                                                     | 2,380  |     | $      | 1,827 |   |   | 30.3 | % |
| Securities                                       |   |                                                                  | 137    |     |   | 156 |   |   | (12.2 | ) |
| Other                                            |   |                                                                  | 14     |     |   | 9 |   |   | 55.6 |   |
| Total                interest income             |   | $                                                                     | 2,531  |     | $      | 1,992 |   |   | 27.1 | % |
|                                             |   |                                                                  |   |     |   |   |   |   |   |   |
| **Interest                Expense:**             |   |                                                                  |   |     |   |   |   |   |   |   |
| Deposits                                         |   | $                                                                     | 1,087  |     | $      | 694 |   |   | 56.6 | % |
| Federal                Home Loan Bank borrowings |   |                                                                  | 459    |     |   | 431 |   |   | 6.5 |   |
| Total                interest expense            |   | $                                                                     | 1,546  |     | $      | 1,125 |   |   | 37.4 | % |
| Net                interest income               |   | $                                                                     | 985    |     | $      | 867 |   |   | 13.6 | % |

----

|                                           |   | **Three                Months Ended September 30,** |    |
|------------------------------------------------|--------|-----------------------------------------------------|---------|
|                                           |   | **2006**                                            |    | **2005** |   |
|                                           |   | **Average****Balance**                              |    | **Yield/****Cost** |   | **Average****Balance** |   | **Yield/****Cost** |   |
| Loans                                          |   | $                                                   | 154,853 |   |   | 6.2 | % | $ | 130,792 |   |   | 5.6 | % |
| Securities                and other            |   |                                                | 12,851  |   |   | 4.7 |   |   | 16,128 |   |   | 4.1 |   |
| Total                interest-bearing deposits |   |                                                | 116,130 |   |   | 3.7 |   |   | 99,352 |   |   | 2.8 |   |
| FHLB                borrowings                 |   |                                                | 35,048  |   |   | 5.2 |   |   | 35,814 |   |   | 4.8 |   |
|                                           |   |                                                |    |   |   |   |   |   |   |   |   |   |   |
| Interest                rate spread            |   |                                                |    |   |   | 1.9 |   |   |   |   |   | 2.1 |   |
| Net                interest margin             |   |                                                |    |   |   | 2.4 |   |   |   |   |   | 2.4 |   |

** **
** **
** **
** **

***Provision      for Loan Losses.***

|                                                                          |   | **Three                Months****Ended                September 30,** |   |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|
|                                                                          |   |  **2006**                                                        |   | **2005** |   |
|                                                                          |   | **(Dollars                in thousands)**                             |   |
| Allowance                at beginning of period                               |   | $                                                                     | 926    |   | $ | 786 |   |
| Provision                for loan losses                                      |   |                                                                  | 30     |   |   | 30 |   |
| Charge-offs                                                                   |   |                                                                  | (2     | ) |   | (9 | ) |
| Recoveries                                                                    |   |                                                                  | 1      |   |   | 80 |   |
| Allowance                at end of period                                     |   | $                                                                     | 955    |   | $ | 887 |   |
| Allowance                to nonaccrual loans                                  |   |                                                                  | 256.7  | % |   | 261.7 | % |
| Allowance                to total loans outstanding at the end of the period  |   |                                                                  | 0.6    |   |   | 0.6 |   |
| Net                charge-offs to average loans outstanding during the period |   |                                                                  | 0.0    |   |   | (0.1 | ) |

***Noninterest      Income.***

----

***Noninterest      Expenses.***
** **

***Income      Taxes.***

**Liquidity      and Capital Management**

***Liquidity      Management.***

----

***Capital      Management.***

**Off-Balance      Sheet Arrangements**

**Commitments**

**Item      3. Controls and Procedures**

----

**PART      II. OTHER INFORMATION**

**Item      1. Legal Proceedings**

----

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

**Item      3. **
**Defaults      upon Senior Securities**

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

**Item      5.**
**Other      Information**

**Item      6.**
**Exhibits**

| 3.1   | Charter                of Equitable Financial Corp. (1) |
|-----------------|---------------------------------------------------------|

| 3.2   | Bylaws                of Equitable Financial Corp. (1) |
|-----------------|--------------------------------------------------------|

| 4.0   | Stock                Certificate of Equitable Financial Corp.                (2) |
|-----------------|----------------------------------------------------------------------------------|

| 31.1   | Rule                  13a-14(a)/15d-14(a) Certification of Chief Executive                  Officer |
|------------------|-----------------------------------------------------------------------------------------------------|

| 31.2   | Rule                  13a-14(a)/15d-14(a) Certification of Chief Financial                  Officer |
|------------------|-----------------------------------------------------------------------------------------------------|

| 32.0   | Section                1350 Certification |
|------------------|-------------------------------------------|

| (1)   | Incorporated                by reference into this document from the Exhibits filed with the                Securities and Exchange Commission on the Quarterly Report on Form                10-QSB                on February 14, 2006.  |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Incorporated                by reference into this document from the Exhibits filed with the                Securities and Exchange Commission on the Registration Statement                on Form                SB-2, and any amendments thereto, Registration No.                333-126617. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|                                  |                                                                                                                                                     |                                                                                                                               |
|---------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|
|                                  | EQUITABLE              FINANCIAL CORP.                                                                                                                   |
|                             |                                                                                                                                                |                                                                                                                          |
| Dated:              November 13, 2006 | By:                                                                                                                                            | /s/              Richard L. Harbaugh                                                                                          |
|                                  |                                                                                                                                                     | Richard                L. HarbaughPresident                and Chief Executive Officer(principal                executive officer) |
|                                  |                                                                                                                                                     |                                                                                                                               |
|                                  |                                                                                                                                                     |                                                                                                                               |
|                                  |                                                                                                                                                     |                                                                                                                               |
|                                  |                                                                                                                                                     |                                                                                                                               |
| Dated: November 13, 2006              | By:                                                                                                                                                      | /s/ Kim E. Marco                                                                                                                   |
|                                  | Kim E. MarcoExecutive                Vice President andChief                Financial Officer(principal                financial and accounting officer) |
|                                  |                                                                                                                                                     |

----