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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



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FORM 10-QSB



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(Mark One)

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

For the quarterly period ended March 31, 2007

OR



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

For the transition period from  to

Commission file number: 000-52674



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HOMETOWN BANCORP, INC.

(Exact name of small business issuer as specified in its charter)



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|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|United States                                                  |  | 02-0783010                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)

12 Main Street, Walden, New York 12586

(Address of principal executive offices)

(845) 778-2171

(Issuers telephone number)

Not Applicable

(Former name, former address and former fiscal year, if
changed since last report)



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

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

As of June 27, 2007 there were 100 shares of the registrants common stock outstanding.



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##### Table of Contents

HOMETOWN BANCORP, INC.

FORM 10-QSB

Index



|                              |  |         |  |                                                                                                                |  |         
|----------------------------- |  | ------- |  | -------------------------------------------------------------------------------------------------------------- |  | --------
|                              |  |         |  |                                                                                                                |  | Page No.
|PART I. FINANCIAL INFORMATION
|                              |  |         | 
|                              |  | Item 1. |  | Financial Statements                                                                                           |  |         
|                              |  |         | 
|                              |  |         |  | Consolidated Balance Sheets at December 31, 2006 and March 31, 2007 (Unaudited)                                |  | 2       
|                              |  |         | 
|                              |  |         |  | Consolidated Statements of Income for the three months ended March 31, 2007 and 2006 (Unaudited)               |  | 3       
|                              |  |         | 
|                              |  |         |  | Consolidated Statements of Stockholders Equity for the three months ended March 31, 2007 and 2006 (Unaudited) |  | 4       
|                              |  |         | 
|                              |  |         |  | Consolidated Statements of Cash Flows for the three months ended March 31, 2007 and 2006 (Unaudited)           |  | 5       
|                              |  |         | 
|                              |  |         |  | Notes to Unaudited Consolidated Financial Statements                                                           |  | 6       
|                              |  |         | 
|                              |  | Item 2. |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                          |  | 8       
|                              |  |         | 
|                              |  | Item 3. |  | Controls and Procedures                                                                                        |  | 14      
|                             
|PART II. OTHER INFORMATION   
|                              |  |         | 
|                              |  | Item 1. |  | Legal Proceedings                                                                                              |  | 14      
|                              |  |         | 
|                              |  | Item 2. |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                    |  | 14      
|                              |  |         | 
|                              |  | Item 3. |  | Defaults upon Senior Securities                                                                                |  | 14      
|                              |  |         | 
|                              |  | Item 4. |  | Submission of Matters to a Vote of Security Holders                                                            |  | 15      
|                              |  |         | 
|                              |  | Item 5. |  | Other Information                                                                                              |  | 15      
|                              |  |         | 
|                              |  | Item 6. |  | Exhibits                                                                                                       |  | 15      
|                             
|Signatures                   



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##### Table of Contents

PART I. FINANCIAL INFORMATION



|Item 1. | Financial Statements
|------- | --------------------

Hometown Bancorp, Inc.

Consolidated Balance Sheets

(Unaudited)



|                                                                                                                      |  |                                              |         |   |                  |   |         |  
|--------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------- | ------- | - | ---------------- | - | ------- | -
|                                                                                                                      |  | March 31,2007                                |         |   | December 31,2006 |  
|                                                                                                                      |  | (Dollars in Thousands,Except Per Share Data) |        
|Assets                                                                                                                | 
|Cash and due from banks                                                                                               |  | $                                            | 3,252   |   |                  | $ | 2,726   |  
|Interest bearing demand deposits with banks                                                                           |  |                                              | 369     |   |                  |   | 539     |  
|                                                                                                                      |  |                                              |         |   |                  |   |         |  
|Cash and Cash Equivalents                                                                                             |  |                                              | 3,621   |   |                  |   | 3,265   |  
|                                                                                                                      |  |                                             
|Securities available for sale                                                                                         |  |                                              | 998     |   |                  |   | 997     |  
|Securities held to maturity (fair value 2007 $10,979; 2006 $11,016)                                                   |  |                                              | 10,994  |   |                  |   | 11,044  |  
|Loans held for sale                                                                                                   |  |                                              | 419     |   |                  |   | 1,168   |  
|Loans receivable, net of allowance for loan losses (2007 $677; 2006 $623)                                             |  |                                              | 103,303 |   |                  |   | 96,665  |  
|Premises and equipment, net                                                                                           |  |                                              | 2,487   |   |                  |   | 2,527   |  
|Federal Home Loan Bank stock, at cost                                                                                 |  |                                              | 119     |   |                  |   | 233     |  
|Accrued interest receivable and other assets                                                                          |  |                                              | 1,639   |   |                  |   | 1,514   |  
|                                                                                                                      |  |                                              |         |   |                  |   |         |  
|Total Assets                                                                                                          |  | $                                            | 123,580 |   |                  | $ | 117,413 |  
|                                                                                                                      |  |                                              |         |   |                  |   |         |  
|Liabilities and Stockholders Equity                                                                                  | 
|Liabilities                                                                                                           |  |                                              |         |   |                  |   |         |  
|Deposits:                                                                                                             |  |                                              |         |   |                  |   |         |  
|Non-interest bearing                                                                                                  |  | $                                            | 17,474  |   |                  | $ | 18,692  |  
|Interest bearing                                                                                                      |  |                                              | 95,730  |   |                  |   | 85,826  |  
|                                                                                                                      |  |                                              |         |   |                  |   |         |  
|Total Deposits                                                                                                        |  |                                              | 113,204 |   |                  |   | 104,518 |  
|                                                                                                                      |  |                                             
|Federal Home Loan Bank advances                                                                                       |  |                                              |        |   |                  |   | 2,525   |  
|Advances from borrowers for taxes and insurance                                                                       |  |                                              | 361     |   |                  |   | 432     |  
|Accrued interest payable                                                                                              |  |                                              | 500     |   |                  |   | 384     |  
|Other liabilities                                                                                                     |  |                                              | 814     |   |                  |   | 1,034   |  
|                                                                                                                      |  |                                              |         |   |                  |   |         |  
|Total Liabilities                                                                                                     |  |                                              | 114,879 |   |                  |   | 108,893 |  
|                                                                                                                      |  |                                              |         |   |                  |   |         |  
|Commitments and Contingencies                                                                                         |  |                                              |        |   |                  |   |        |  
|                                                                                                                      |  |                                             
|Stockholders Equity                                                                                                  |  |                                              |         |   |                  |   |         |  
|Preferred stock, $0.01 par value; 3,000,000 shares authorized and unissued                                            |  |                                              |        |   |                  |   |        |  
|Common stock, $0.01 par value; 7,000,000 shares authorized; issued and outstanding (2007 100 shares; 2006 100 shares) |  |                                              |        |   |                  |   |        |  
|Paid-in capital                                                                                                       |  |                                              | 150     |   |                  |   | 150     |  
|Retained earnings                                                                                                     |  |                                              | 8,552   |   |                  |   | 8,372   |  
|Accumulated other comprehensive loss                                                                                  |  |                                              | (1      | ) |                  |   | (2      | )
|                                                                                                                      |  |                                              |         |   |                  |   |         |  
|Total Stockholders Equity                                                                                            |  |                                              | 8,701   |   |                  |   | 8,520   |  
|                                                                                                                      |  |                                              |         |   |                  |   |         |  
|Total Liabilities and Stockholders Equity                                                                            |  | $                                            | 123,580 |   |                  | $ | 117,413 |  
|                                                                                                                      |  |                                              |         |   |                  |   |         |  

See notes to consolidated financial statements.



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##### Table of Contents

Hometown Bancorp, Inc.

Consolidated Statements of Income

(Unaudited)



|                                                    |  |                              |       |   |      |   |       |  
|--------------------------------------------------- |  | ---------------------------- | ----- | - | ---- | - | ----- | -
|                                                    |  | Three Months Ended March 31, |      
|                                                    |  | 2007                         |       |   | 2006 |  
|                                                    |  | (In Thousands)               |      
|Interest Income                                     |  |                              |       |   |      |   |       |  
|Loans receivable, including fees                    |  | $                            | 1,920 |   |      | $ | 1,508 |  
|Securities, taxable                                 |  |                              | 143   |   |      |   | 47    |  
|Other                                               |  |                              | 30    |   |      |   | 53    |  
|                                                    |  |                              |       |   |      |   |       |  
|Total Interest Income                               |  |                              | 2,093 |   |      |   | 1,608 |  
|                                                    |  |                              |       |   |      |   |       |  
|Interest Expense                                    |  |                              |       |   |      |   |       |  
|Deposits                                            |  |                              | 710   |   |      |   | 421   |  
|Federal Home Loan Bank advances                     |  |                              | 47    |   |      |   | 1     |  
|                                                    |  |                              |       |   |      |   |       |  
|Total Interest Expense                              |  |                              | 757   |   |      |   | 422   |  
|                                                    |  |                              |       |   |      |   |       |  
|Net Interest Income                                 |  |                              | 1,336 |   |      |   | 1,186 |  
|                                                    |  |                             
|Provision for Loan Losses                           |  |                              | 59    |   |      |   | 10    |  
|                                                    |  |                              |       |   |      |   |       |  
|Net Interest Income after Provision for Loan Losses |  |                              | 1,277 |   |      |   | 1,176 |  
|                                                    |  |                              |       |   |      |   |       |  
|Other Income                                        |  |                              |       |   |      |   |       |  
|Banking fees and service charges                    |  |                              | 268   |   |      |   | 169   |  
|Mortgage banking income, net                        |  |                              | 127   |   |      |   | 73    |  
|Investment brokerage fees                           |  |                              | 12    |   |      |   | 13    |  
|Realized losses on sales of securities              |  |                              | (2    | ) |      |   |      |  
|Foreclosed assets, net                              |  |                              |      |   |      |   | (15   | )
|Other                                               |  |                              | 22    |   |      |   | 14    |  
|                                                    |  |                              |       |   |      |   |       |  
|Total Other Income                                  |  |                              | 427   |   |      |   | 254   |  
|                                                    |  |                              |       |   |      |   |       |  
|Other Expenses                                      |  |                              |       |   |      |   |       |  
|Salaries and employee benefits                      |  |                              | 863   |   |      |   | 771   |  
|Occupancy and equipment                             |  |                              | 155   |   |      |   | 136   |  
|Professional fees                                   |  |                              | 28    |   |      |   | 50    |  
|Advertising and marketing                           |  |                              | 60    |   |      |   | 60    |  
|Data processing                                     |  |                              | 118   |   |      |   | 103   |  
|Telephone and postage                               |  |                              | 46    |   |      |   | 45    |  
|Other                                               |  |                              | 140   |   |      |   | 104   |  
|                                                    |  |                              |       |   |      |   |       |  
|Total Other Expenses                                |  |                              | 1,410 |   |      |   | 1,269 |  
|                                                    |  |                              |       |   |      |   |       |  
|Income before Income Taxes                          |  |                              | 294   |   |      |   | 161   |  
|                                                    |  |                             
|Income Tax Expense                                  |  |                              | 114   |   |      |   | 59    |  
|                                                    |  |                              |       |   |      |   |       |  
|Net Income                                          |  | $                            | 180   |   |      | $ | 102   |  
|                                                    |  |                              |       |   |      |   |       |  

See notes to consolidated financial statements.



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Hometown Bancorp, Inc.

Consolidated Statements of Stockholders Equity

Three Months Ended March 31, 2007 and 2006

(In Thousands)(Unaudited)



|                                                                                                               |  |             |   |                |   |                  |  |                                   |       |  |       |     |   |  |   |       |  
|-------------------------------------------------------------------------------------------------------------- |  | ----------- | - | -------------- | - | ---------------- |  | --------------------------------- | ----- |  | ----- | --- | - |  | - | ----- | -
|                                                                                                               |  | CommonStock |   | Paid-InCapital |   | RetainedEarnings |  | AccumulatedOtherComprehensiveLoss |       |  | Total |    
|Balance - December 31, 2005                                                                                    |  | $           |  |                | $ |                 |  | $                                 | 7,809 |  | $     | (45 | ) |  | $ | 7,764 |  
|                                                                                                               |  |             |   |                |   |                  |  |                                   |       |  |       |     |   |  |   |       |  
|                                                                                                               |  |             |   |                |  
|Comprehensive income:                                                                                          |  |             |   |                |   |                  |  |                                   |       |  |       |     |   |  |   |       |  
|Net income                                                                                                     |  |             |  |                |   |                 |  |                                   | 102   |  |       |    |   |  |   | 102   |  
|Change in net unrealized losses on securities available for sale, net of reclassification adjustment and taxes |  |             |  |                |   |                 |  |                                   |      |  |       | (7  | ) |  |   | (7    | )
|                                                                                                               |  |             |   |                |   |                  |  |                                   |       |  |       |     |   |  |   |       |  
|Total Comprehensive Income                                                                                     |  |             |   |                |   |                  |  |                                   |       |  |       |     |   |  |   | 95    |  
|                                                                                                               |  |             |   |                |   |                  |  |                                   |       |  |       |     |   |  |   |       |  
|Balance - March 31, 2006                                                                                       |  | $           |  |                | $ |                 |  | $                                 | 7,911 |  | $     | (52 | ) |  | $ | 7,859 |  
|                                                                                                               |  |             |   |                |   |                  |  |                                   |       |  |       |     |   |  |   |       |  
|Balance - December 31, 2006                                                                                    |  | $           |  |                | $ | 150              |  | $                                 | 8,372 |  | $     | (2  | ) |  | $ | 8,520 |  
|                                                                                                               |  |             |   |                |  
|Comprehensive income:                                                                                          |  |             |   |                |   |                  |  |                                   |       |  |       |     |   |  |   |       |  
|Net income                                                                                                     |  |             |  |                |   |                 |  |                                   | 180   |  |       |    |   |  |   | 180   |  
|Change in net unrealized gains on securities available for sale, net of reclassification adjustment and taxes  |  |             |  |                |   |                 |  |                                   |      |  |       | 1   |   |  |   | 1     |  
|                                                                                                               |  |             |   |                |   |                  |  |                                   |       |  |       |     |   |  |   |       |  
|Total Comprehensive Income                                                                                     |  |             |   |                |   |                  |  |                                   |       |  |       |     |   |  |   | 181   |  
|                                                                                                               |  |             |   |                |   |                  |  |                                   |       |  |       |     |   |  |   |       |  
|Balance - March 31, 2007                                                                                       |  | $           |  |                | $ | 150              |  | $                                 | 8,552 |  | $     | (1  | ) |  | $ | 8,701 |  
|                                                                                                               |  |             |   |                |   |                  |  |                                   |       |  |       |     |   |  |   |       |  

See notes to consolidated financial statements.



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Hometown Bancorp, Inc.

Consolidated Statements of Cash Flows

(Unaudited)



|                                                                                         |  |                              |        |   |      |   |        |  
|---------------------------------------------------------------------------------------- |  | ---------------------------- | ------ | - | ---- | - | ------ | -
|                                                                                         |  | Three Months Ended March 31, |       
|                                                                                         |  | 2007                         |        |   | 2006 |  
|                                                                                         |  | (In Thousands)               |       
|Cash Flows from Operating Activities                                                     |  |                              |        |   |      |   |        |  
|Net income                                                                               |  | $                            | 180    |   |      | $ | 102    |  
|Adjustments to reconcile net income to net cash provided (used) by operating activities: |  |                              |        |   |      |   |        |  
|Depreciation and amortization expense                                                    |  |                              | 53     |   |      |   | 44     |  
|Provision for loan losses                                                                |  |                              | 59     |   |      |   | 10     |  
|Amortization of mortgage servicing rights                                                |  |                              | 39     |   |      |   | 48     |  
|Net amortization (accretion) of securities premiums and discounts                        |  |                              | (25    | ) |      |   | 1      |  
|Net realized loss on sales of securities                                                 |  |                              | 2      |   |      |   |       |  
|Net gain on sale of loans                                                                |  |                              | (86    | ) |      |   | (32    | )
|Loans originated for sale                                                                |  |                              | (5,290 | ) |      |   | (2,610 | )
|Proceeds from sale of loans                                                              |  |                              | 6,125  |   |      |   | 2,289  |  
|Increase in accrued interest receivable and other assets                                 |  |                              | (164   | ) |      |   | (89    | )
|Decrease in accrued interest payable and other liabilities                               |  |                              | (104   | ) |      |   | (44    | )
|                                                                                         |  |                              |        |   |      |   |        |  
|Net Cash Provided (Used) by Operating Activities                                         |  |                              | 789    |   |      |   | (281   | )
|                                                                                         |  |                              |        |   |      |   |        |  
|Cash Flows from Investing Activities                                                     |  |                              |        |   |      |   |        |  
|Activity in available for sale securities:                                               |  |                              |        |   |      |   |        |  
|Purchases                                                                                |  |                              |       |   |      |   | (30    | )
|Activity in held to maturity securities:                                                 |  |                              |        |   |      |   |        |  
|Purchases                                                                                |  |                              | (9,000 | ) |      |   |       |  
|Maturities, calls and principal repayments                                               |  |                              | 76     |   |      |   | 59     |  
|Proceeds from sales                                                                      |  |                              | 8,997  |   |      |   |       |  
|Net increase in loans receivable                                                         |  |                              | (6,697 | ) |      |   | (2,647 | )
|Net decrease in Federal Home Loan Bank stock                                             |  |                              | 114    |   |      |   |       |  
|Purchases of bank premises and equipment                                                 |  |                              | (13    | ) |      |   | (48    | )
|                                                                                         |  |                              |        |   |      |   |        |  
|Net Cash Used by Investing Activities                                                    |  |                              | (6,523 | ) |      |   | (2,666 | )
|                                                                                         |  |                              |        |   |      |   |        |  
|Cash Flows from Financing Activities                                                     |  |                              |        |   |      |   |        |  
|Net increase in deposits                                                                 |  |                              | 8,686  |   |      |   | 3,089  |  
|Net decrease in Federal Home Loan Bank advances                                          |  |                              | (2,525 | ) |      |   |       |  
|Decrease in advances from borrowers for taxes and insurance                              |  |                              | (71    | ) |      |   | (76    | )
|                                                                                         |  |                              |        |   |      |   |        |  
|Net Cash Provided by Financing Activities                                                |  |                              | 6,090  |   |      |   | 3,013  |  
|                                                                                         |  |                              |        |   |      |   |        |  
|Net Increase in Cash and Cash Equivalents                                                |  |                              | 356    |   |      |   | 66     |  
|                                                                                         |  |                             
|Cash and Cash Equivalents - Beginning                                                    |  |                              | 3,265  |   |      |   | 5,802  |  
|                                                                                         |  |                              |        |   |      |   |        |  
|Cash and Cash Equivalents - Ending                                                       |  | $                            | 3,621  |   |      | $ | 5,868  |  
|                                                                                         |  |                              |        |   |      |   |        |  
|Supplementary Cash Flows Information                                                     |  |                              |        |   |      |   |        |  
|Interest paid                                                                            |  | $                            | 641    |   |      | $ | 411    |  
|                                                                                         |  |                              |        |   |      |   |        |  
|Income taxes paid                                                                        |  | $                            |       |   |      | $ |       |  
|                                                                                         |  |                              |        |   |      |   |        |  



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##### Table of Contents

Hometown Bancorp, Inc.

Notes to the Unaudited Consolidated Financial Statements

Note 1 - Basis of Presentation

The accompanying
unaudited consolidated financial statements of Hometown Bancorp, Inc. (the Company) and its wholly owned subsidiary, Walden Federal Savings and Loan Association (Walden Federal or the Bank) have been prepared in
accordance with generally accepted accounting principles in the United States of America for interim financial information and the instructions for Form 10-QSB and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information
and footnotes necessary for a complete presentation of consolidated financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have been included. All such adjustments are of a normal, recurring nature. Operating results for the three months ended March 31, 2007 are not necessarily indicative of
the results that may be expected for the year ending December 31, 2007.

The unaudited consolidated financial statements should be
read in conjunction with the Companys audited financial statements for the years ended December 31, 2006 and 2005, included in its prospectus, dated May 14, 2007.

Note 2 - Stock Issuance

On January 18, 2007, the Board of Directors of the Company unanimously
adopted a Plan of Stock Issuance (the Plan). On May 14, 2007, the Securities and Exchange Commission declared the Companys registration statement, which registered up to 1,071,225 shares of the Companys common stock for
sale, effective. Pursuant to the Plan, the Company offered up to 1,071,225 shares of its common stock to eligible account holders, its tax-qualified employee benefit plans and members of the general public.

The Company recently announced that it had received orders for approximately 1,071,225 shares in the subscription offering, including shares to be
purchased by the Companys employee stock ownership plan. The offering is expected to close by late June 2007. Offering costs have been deferred and will be deducted from the proceeds of the shares sold in the stock offering.

Note 3 - Recent Accounting Pronouncements

SFAS 157

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements, which defines fair value, establishes a
framework for measuring fair value under GAAP, and expands disclosures about fair value measurements. SFAS No. 157 applies to other accounting pronouncements that require or permit fair value measurements. The new guidance is effective for
financial statements issued for fiscal years beginning after November 15, 2007, and for interim periods within those fiscal years. The Company is evaluating the potential impact, if any, of the adoption of SFAS No. 157 on its consolidated
financial statements.



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SFAS 159

In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial LiabilitiesIncluding an Amendment of SFAS No. 115. SFAS No. 159 permits entities to choose to measure
many financial instruments and certain other items at fair value. Unrealized gains and losses on items for which the fair value option has been elected will be recognized in earnings at each subsequent reporting date. SFAS No. 159 is effective
for the Company on January 1, 2008. The Company is evaluating the impact, if any, that the adoption of SFAS No. 159 will have on its consolidated financial statements.

FIN 48

In July 2006, the FASB issued FASB Interpretation No. 48, Accounting for
Uncertainty in Income Taxes. The Interpretation clarifies the accounting for uncertainty in income taxes recognized in a companys financial statements in accordance with SFAS No. 109, Accounting for Income Taxes.
Specifically, the pronouncement prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Interpretation also provides
guidance on the related derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition of uncertain tax positions. The adoption of FASB Interpretation No. 48 did not have a significant impact on
the Companys consolidated financial statements.

Note 4  Directors Retirement Plan

Effective as of March 9, 2007, the Bank adopted a directors retirement plan for the benefit of non-employee directors. Under the plan,
directors who have attained the normal retirement age of 65 receive a retirement benefit based on their length of service upon termination of service. Service and interest costs incurred by the Bank for the three months ended March 31, 2007 are
immaterial.

Note 5  Comprehensive Income (Loss)

Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such
as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income (loss).

The components of other comprehensive income (loss) and related tax effects for the three months ended March 31, 2007 and 2006 are as follows:



|                                                                   |  |                |    |   |      |   |     |  
|------------------------------------------------------------------ |  | -------------- | -- | - | ---- | - | --- | -
|                                                                   |  | 2007           |    |   | 2006 |  
|                                                                   |  | (In Thousands) |   
|Unrealized holding gains (losses) on securities available for sale |  | $              | 2  |   |      | $ | (12 | )
|Reclassification adjustment for losses included in net income      |  |                |   |   |      |   |    |  
|                                                                   |  |                |    |   |      |   |     |  
|                                                                   |  |                | 2  |   |      |   | (12 | )
|Change in Net Unrealized Losses                                    |  |                |    |   |      |   |     |  
|                                                                   |  |               
|Income tax effect                                                  |  |                | (1 | ) |      |   | 5   |  
|                                                                   |  |                |    |   |      |   |     |  
|Net of Tax Amount                                                  |  | $              | 1  |   |      | $ | (7  | )
|                                                                   |  |                |    |   |      |   |     |  



7



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##### Table of Contents

Note 6  Earnings Per Share

Earnings per share have not been presented as the stock offering referred to in Note 2 has not been completed and such information would not be meaningful at this time.

Note 7  Estimates

The preparation of financial
statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to
significant change in the near term relate to the determination of the allowance for loan losses.



|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations
|------- | -------------------------------------------------------------------------------------

Managements discussion and analysis of the financial condition and results of operations is intended to assist in understanding our financial
condition and results of operations. The information contained in this section should be read in conjunction with the Unaudited Consolidated Financial Statements and the notes thereto, appearing in Part I, Item 1 of this report.

Forward-Looking Statements

This quarterly report
contains forward-looking statements that are based on assumptions and may describe our future plans, strategies and expectations. These forward-looking statements are generally identified by use of the words believe, expect,
intend, anticipate, estimate, project or similar expressions.

Our ability to predict
results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations include, but are not limited to, changes in interest rates, national and regional economic
conditions, legislative and regulatory changes, monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality and composition of our loan or investment portfolios, demand for
loan products, deposit flows, competition, demand for financial services in our market area, changes in real estate market values in our area, and changes in relevant accounting principles and guidelines.

These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.
Except as required by applicable law or regulation, we do not undertake, and specifically disclaim any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances
after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

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. We have identified the allowance for loan losses as our critical accounting policy.

Allowance for Loan Losses. The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for
loan losses, and subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is maintained at a level
considered adequate to provide for losses that can be reasonably anticipated. Managements periodic evaluation of the adequacy of the allowance is based on the Banks past loan loss experience, known and inherent credit risks in the
portfolio, adverse situations that may affect the borrowers ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, and other relevant factors. This evaluation is
inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available.



8



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##### Table of Contents

The allowance consists of specific and general 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 amount of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors.

A loan is considered impaired when, based on current information and events, it is probable that the Bank 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, commercial real estate 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 Bank does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the
subject of a restructuring agreement.

General

Hometown Bancorp, Inc. is the holding company for Walden Federal Savings and Loan Association. Walden Federal operates from five offices in Orange County, New York. Walden Federal is primarily engaged in the business of attracting deposits
from the general public and using those funds to originate one- to four-family real estate, multi-family and commercial real estate loans and construction, land, commercial and consumer loans, which, with the exception of long-term (more than 10
year terms) fixed-rate one- to four-family real estate loans, we primarily hold for investment. In addition, a segment of our lending business involves the purchase and sale of loan participation interests. We also offer insurance and investment
services through Walden Federal.

Balance Sheet Analysis

Overview.Total assets increased $6.2 million, or 5.3%, to $123.6 million during the three months ended March 31, 2007, reflecting the results of our branch expansion and the growth of
our loan portfolio. In the three months ended March 31, 2007, the loan portfolio grew $5.9 million, or 6.0%, with the growth concentrated primarily in the residential real estate, commercial and land loan portfolios.

Asset growth during the three months ended March 31, 2007 was funded through an increase of deposits. During the three months ended March 31,
2007, deposits grew $8.7 million to $113.2 million. The increase in deposits was primarily due to our branch expansion and our promotion of certificate of deposit accounts. We had no borrowings at March 31, 2007.

Total stockholders equity increased $181,000 in the three months ended March 31, 2007 to $8.7 million due primarily to net income of $180,000.



9



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##### Table of Contents

The following table summarizes average balances and average yields and costs of interest-earning assets
and interest-bearing liabilities for the three months ended March 31, 2007 and 2006.



|                                                                        |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|----------------------------------------------------------------------- |  | ---------------------------- | ------- | - | ---------------------- | - | ----------- |  | ---- | --------------- |  | - | ---------------------- | - | ----------- | - | ----- |  | ---- | -
|                                                                        |  | Three Months Ended March 31, |        
|                                                                        |  | 2007                         |         |   | 2006                   |  
|(Dollars in thousands)                                                  |  | Average Balance              |         |   | Interest and Dividends |   | Yield/ Cost |  |      | Average Balance |  |   | Interest and Dividends |   | Yield/ Cost |  
|Assets:                                                                 |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|Interest-earning assets:                                                |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|Loans (1)                                                               |  | $                            | 101,323 |   |                        | $ | 1,920       |  | 7.58 | %               |  | $ | 83,487                 |   |             | $ | 1,508 |  | 7.23 | %
|Investment securities                                                   |  |                              | 12,289  |   |                        |   | 143         |  | 4.65 |                 |  |   | 5,356                  |   |             |   | 47    |  | 3.51 |  
|Other interest-earning assets                                           |  |                              | 2,733   |   |                        |   | 30          |  | 4.39 |                 |  |   | 4,950                  |   |             |   | 53    |  | 4.28 |  
|                                                                        |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|Total interest-earning assets                                           |  |                              | 116,345 |   |                        |   | 2,093       |  | 7.20 |                 |  |   | 93,793                 |   |             |   | 1,608 |  | 6.86 |  
|                                                                        |  |                              |         |   |                        |  
|Non-interest-earning assets                                             |  |                              | 4,649   |   |                        |   |             |  |      |                 |  |   | 4,910                  |   |             |   |       |  |      |  
|                                                                        |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|Total assets                                                            |  | $                            | 120,994 |   |                        |   |             |  |      |                 |  | $ | 98,703                 |   |             |   |       |  |      |  
|                                                                        |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|Liabilities and stockholders equity:                                   |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|Interest-bearing liabilities:                                           |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|Interest-bearing demand deposits                                        |  | $                            | 6,216   |   |                        |   | 4           |  | 0.26 |                 |  | $ | 6,832                  |   |             |   | 4     |  | 0.23 |  
|Money market accounts                                                   |  |                              | 15,099  |   |                        |   | 95          |  | 2.52 |                 |  |   | 18,935                 |   |             |   | 110   |  | 2.32 |  
|Savings accounts                                                        |  |                              | 13,408  |   |                        |   | 16          |  | 0.48 |                 |  |   | 14,865                 |   |             |   | 18    |  | 0.48 |  
|Certificates of deposit                                                 |  |                              | 54,745  |   |                        |   | 595         |  | 4.35 |                 |  |   | 33,092                 |   |             |   | 289   |  | 3.49 |  
|Borrowings                                                              |  |                              | 3,442   |   |                        |   | 47          |  | 5.46 |                 |  |   | 114                    |   |             |   | 1     |  | 3.51 |  
|                                                                        |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|Total interest-bearing deposits                                         |  |                              | 92,910  |   |                        |   | 757         |  | 3.26 |                 |  |   | 73,838                 |   |             |   | 422   |  | 2.29 |  
|                                                                        |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|                                                                        |  |                              |         |   |                        |  
|Non-interest-bearing demand deposits (1)                                |  |                              | 17,453  |   |                        |   |             |  |      |                 |  |   | 15,814                 |   |             |   |       |  |      |  
|Other non-interest-bearing liabilities                                  |  |                              | 1,966   |   |                        |   |             |  |      |                 |  |   | 1,156                  |   |             |   |       |  |      |  
|                                                                        |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|Total liabilities                                                       |  |                              | 112,329 |   |                        |   |             |  |      |                 |  |   | 90,808                 |   |             |   |       |  |      |  
|                                                                        |  |                              |         |   |                        |  
|Stockholders equity                                                    |  |                              | 8,665   |   |                        |   |             |  |      |                 |  |   | 7,895                  |   |             |   |       |  |      |  
|                                                                        |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|Total liabilities and stockholders equity                              |  | $                            | 120,994 |   |                        |   |             |  |      |                 |  | $ | 98,703                 |   |             |   |       |  |      |  
|                                                                        |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|Net interest income                                                     |  |                              |         |   |                        | $ | 1,336       |  |      |                 |  |   |                        |   |             | $ | 1,186 |  |      |  
|                                                                        |  |                              |         |   |                        |   |             |  |      |                 |  |   |                        |   |             |   |       |  |      |  
|Interest rate spread                                                    |  |                              |         |   |                        |   |             |  | 3.94 |                 |  |   |                        |   |             |   |       |  | 4.57 |  
|Net interest margin                                                     |  |                              |         |   |                        |   |             |  | 4.59 |                 |  |   |                        |   |             |   |       |  | 5.06 |  
|Average interest-earning assets to average interest-bearing liabilities |  |                              | 125.22  | % |                        |   |             |  |      |                 |  |   | 127.03                 | % |             |   |       |  |      |  

---

|(1) | The calculation of yields and costs includes average balances of $2.8 million and $1.0 million in letters of credit categorized as land loans on which no interest was earned
for the three months ended March 31, 2007 and 2006, respectively. These letters of credit are also included in non-interest-bearing demand deposits on which no interest was paid.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Loans. At March 31, 2007, total loans, net, were $103.7 million, or 83.9% of total assets. In the three months ended March 31,
2007, the loan portfolio grew $5.9 million, or 6.0%, with the growth distributed across most categories of the loan portfolio, particularly one- to four-family residential real estate loans, commercial real estate and land loans. The growth of the
loan portfolio was primarily the result of new development within parts of our market area and our increased emphasis on this type of lending.



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##### Table of Contents

Nonperforming Assets. The following table provides information with respect to our
non-performing assets at the dates indicated. The Company had no troubled debt restructurings during the quarter ended March 31, 2007 and at December 31, 2006. There were no accruing loans past due 90 days or more for the period ended
March 31, 2007 and at December 31, 2006.



|                                                                            |  |               |      |   |                  |   |      |  
|--------------------------------------------------------------------------- |  | ------------- | ---- | - | ---------------- | - | ---- | -
|(Dollars in thousands)                                                      |  | March 31,2007 |      |   | December 31,2006 |  
|Nonaccrual loans:                                                           |  |               |      |   |                  |   |      |  
|One- to four-family residential real estate                                 |  | $             | 117  |   |                  | $ | 199  |  
|Construction                                                                |  |               |     |   |                  |   |     |  
|Multi-family and commercial real estate                                     |  |               | 191  |   |                  |   | 191  |  
|Land                                                                        |  |               |     |   |                  |   |     |  
|Commercial                                                                  |  |               | 99   |   |                  |   | 49   |  
|Consumer                                                                    |  |               |     |   |                  |   |     |  
|                                                                            |  |               |      |   |                  |   |      |  
|Total                                                                       |  |               | 407  |   |                  |   | 439  |  
|                                                                            |  |              
|Foreclosed real estate                                                      |  |               |     |   |                  |   |     |  
|Other nonperforming assets                                                  |  |               |     |   |                  |   |     |  
|                                                                            |  |               |      |   |                  |   |      |  
|Total nonperforming assets                                                  |  |               | 407  |   |                  |   | 439  |  
|Troubled debt restructurings                                                |  |               |     |   |                  |   |     |  
|                                                                            |  |               |      |   |                  |   |      |  
|Troubled debt restructurings and total nonperforming assets                 |  | $             | 407  |   |                  | $ | 439  |  
|                                                                            |  |               |      |   |                  |   |      |  
|Total nonperforming loans to total loans                                    |  |               | 0.39 | % |                  |   | 0.45 | %
|Total nonperforming loans to total assets                                   |  |               | 0.33 |   |                  |   | 0.37 |  
|Total nonperforming assets and troubled debt restructurings to total assets |  |               | 0.33 |   |                  |   | 0.37 |  

Securities. The investment securities portfolio was $12.0 million, or 9.7% of total
assets, at March 31, 2007. Our investment portfolio consists primarily of U.S. Government and agency securities and mortgage-backed securities. During the three months ended March 31, 2007, we used the proceeds from maturing and called
securities to fund loans. On March 28, 2007, we sold a $9.0 million held-to-maturity U.S. Treasury note scheduled to mature on March 31, 2007. Also on March 28, 2007, we purchased a $9.0 million U.S. agency security. The sale transaction on March
28, 2007 was close enough to the maturity date that it did not taint our held-to-maturity securities portfolio as prescribed by FASB No. 115 Accounting for Certain Investments in Debt and Equity Securities.

Deposits. Our primary source of funds is retail deposit accounts, which are comprised of noninterest-bearing demand accounts,
interest-bearing demand accounts, money market accounts, savings accounts and certificates of deposit. During the three months ended March 31, 2007, deposits grew $8.7 million to $113.2 million. The increase in deposits is primarily due to our
branch expansion and our promotion of certificates of deposit accounts.

Borrowings. We utilize borrowings from the
Federal Home Loan Bank of New York to supplement our supply of funds for loans and investments. We are able to utilize borrowings when necessary or advantageous as an alternative to deposits when a pricing advantage exists, as a temporary source of
funds to meet liquidity needs or to manage our asset and liability position. We had no borrowings at March 31, 2007.



11



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##### Table of Contents

Results of Operations for the Three Months Ended March 31, 2007 and 2006

Financial Highlights.Net income increased $78,000, or 76.5%, to $180,000 for the three months ended March 31, 2007 compared to
$102,000 for the same period in the prior year. The increase reflected higher net interest income and noninterest income, partially offset by higher noninterest expense.

Net Interest Income.Net interest income increased $150,000, or 12.6%, to $1.3 million during the three months ended March 31, 2007 compared to the prior year period, primarily as a result of an
increase in interest income on loans and investment securities. Interest income on loans increased $412,000, or 27.3%, to $1.9 million during the three months ended March 31, 2007 as the average balance of the loan portfolio grew $17.8 million,
or 21.4%, while the average yield on the loan portfolio increased 35 basis points to 7.58%. Loan growth was driven by an increase in all categories of the loan portfolio, particularly one- to four-family residential real estate loans, commercial
real estate and land loans. The increase in the average yield was the result of the rising interest rate environment during 2006.

Interest
income on investment securities increased $96,000, or 204.3%, as the average balance of securities portfolio grew $6.9 million, or 129.4%, during the three months ended March 31, 2007 compared to the prior year period, while the average yield
on investment securities increased 114 basis points to 4.65%. The increase in the investment portfolio primarily reflected the purchase of $9.9 million in investment securities following an increase in deposits resulting from a $10.0 million
certificate of deposit account opened by the New York State Office of the Comptroller in April 2006. The shift in the mix of interest-earning assets, combined with slightly higher market rates, increased the average yield on earning assets to 7.20%
during the three months ended March 31, 2007, compared to 6.86% for the three months ended March 31, 2006.

Average
interest-bearing deposits during the three months ended March 31, 2007 increased $15.7 million, or 21.4%, compared with the prior year period, due primarily to a $21.7 million increase in the average balance of certificates of deposit,
primarily due to the $10.0 million certificate of deposit from the New York State Office of the Comptroller which was opened in the second quarter of 2006, which was partially offset by a $5.3 million decrease in savings and money market
accounts. Increases in market interest rates, combined with the shift in the deposit mix, increased the average cost of deposits to 3.17%, compared to 2.28% for 2006.

For the three months ended March 31, 2007, our net interest margin decreased 47 basis points to 4.59% from 5.06% for the prior year period. If rates on deposits continue to reprice faster than rates on our loans
and investments, we could continue to experience compression of our net interest margin which could have a negative effect on our profitability in 2007.

Provision for Loan Losses. Provisions for loan losses were $59,000 for the three months ended March 31, 2007 compared to $10,000 for the three months ended March 31, 2006. The change in the
provision was due to an increase in the size of the loan portfolio and our analysis of the inherent losses in the portfolio. Specifically, our provision increased during the three months ended March 31, 2007 as compared to the prior year period
because of increases in our land loan, commercial business loan and commercial real estate loan portfolios. In determining our loan loss provision, we take into account the credit risks associated with these riskier types of lending as compared to
one- to four-family residential real estate loans.

Non-Interest Income.Noninterest income increased $173,000, or 68.1% to
$427,000 for the three months ended March 31, 2007 as banking service charges and fees and mortgage banking income increased. The $99,000 increase in banking service charges and fees reflects an overall increase in deposits resulting from our
branch expansion in November, 2005 and June, 2006. The increase in mortgage banking income of $54,000 was due to the increased originations of longer-term fixed-rate loans, which we typically sell in the secondary market.



12



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##### Table of Contents

Non-Interest Expenses. Noninterest expenses increased $141,000, or 11.1%, during the three
months ended March 31, 2007 over the prior year period. The increase in salaries and employee benefits, which accounted for much of the increase, was due to our recent branch expansion. Advertising and marketing, occupancy and equipment and
data processing expenses also increased as a result of our recent branch expansion, while professional fees decreased by $22,000.

Liquidity and Capital
Management

Liquidity Management.Liquidity is the ability to meet current and future financial obligations of a
short-term nature. Our primary sources of funds consist of deposit inflows, loan repayments, maturities of and payments on investment securities and borrowings from the Federal Home Loan Bank of New York. While maturities and scheduled amortization
of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition.

We regularly adjust our investments in liquid assets based upon our assessment of (1) expected loan demand, (2) expected deposit flows,
(3) yields available on interest-earning deposits and securities and (4) the objectives of our asset/liability management policy.

Our most liquid assets are cash and cash equivalents. The levels of these assets depend on our operating, financing, lending and investing activities during any given period. At March 31, 2007, cash and cash equivalents totaled $3.6
million. In addition, at March 31, 2007, we had arrangements to borrow up to $18.9 million from the Federal Home Loan Bank of New York. On March 31, 2007, we had no advances outstanding.

A significant use of our liquidity is the funding of loan originations. At March 31, 2007, we had $21.1 million in loan commitments outstanding,
which primarily consisted of $5.2 million in unadvanced portions of construction loans, $3.7 million in commitments to fund one- to four-family residential real estate loans, $3.2 million in unused home equity lines of credit and
$7.0 million in unused commercial lines of credit. Historically, many of the commitments expire without being fully drawn; therefore, the total amount of commitments do not necessarily represent future cash requirements. Another significant use
of our liquidity is the funding of deposit withdrawals. Certificates of deposit due within one year of March 31, 2007 totaled $53.8 million, or 87.7% of certificates of deposit. The large percentage of certificates of deposit that mature
within one year reflects customers hesitancy to invest their funds for long periods in the recent low interest rate environment. If these maturing deposits do not remain with us, we will be required to seek other sources of funds, including
other certificates of deposit and borrowings. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the certificates of deposit due on or before March 31, 2008. We
believe, however, based on past experience, that a significant portion of our certificates of deposit will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered.

Capital Management.We are subject to various regulatory capital requirements administered by the Office of Thrift Supervision, including a
risk-based capital measure. The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance sheet items to broad risk categories. At
March 31, 2007, we exceeded all of our regulatory capital requirements. We are considered well capitalized under regulatory guidelines.



13



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##### Table of Contents

The capital from our stock offering is expected to significantly increase our liquidity and capital
resources. Over time, the initial level of liquidity will be reduced, as net proceeds from the stock offering are used for general corporate purposes, including the funding of lending activities. We may use capital management tools such as cash
dividends and common share repurchases. However, under the Office of Thrift Supervision regulations, we are not allowed to repurchase any shares during the first year following the offering, except under limited circumstances.

Off-Balance Sheet Arrangements

In the normal course
of operations, we engage in a variety of financial transactions that, in accordance with generally accepted accounting principles, are not recorded in our financial statements. These transactions involve, to varying degrees, elements of credit,
interest rate and liquidity risk. Such transactions are used primarily to manage customers requests for funding and take the form of loan commitments and lines and letters of credit.

For the three months ended March 31, 2007, we did not engage in any off-balance sheet transactions reasonably likely to have a material effect on
our financial condition, results of operations or cash flows.



|Item 3. | Controls and Procedures
|------- | -----------------------

The Companys
management, including the Companys principal executive officer and principal financial officer, have evaluated the effectiveness of the Companys disclosure controls and procedures, as such term is defined in Rule 13a-15(e)
promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act). Based upon their evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by
this report, the Companys disclosure controls and procedures were effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities
and Exchange Commission (the SEC) (1) is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms and (2) is accumulated and communicated to the Companys management,
including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. There have been no changes in the Companys internal control over financial reporting identified in
connection with the evaluation required by Rule 13(a)-15(e) that occurred during the Companys last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial
reporting.

PART II. OTHER INFORMATION



|Item 1. | Legal Proceedi
ngs
|------- | ------------------

Hometown Bancorp is not involved in any pending legal proceedings. Walden Federal is not
involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. Such routine legal proceedings, in the aggregate, are believed by management to be immaterial to its financial condition and
results of operations.



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

Not Applicable.



|Item 3. | Defaults upon Senior Securities
|------- | -------------------------------

Not Applicable.



14



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##### Table of Contents

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

Not Applicable.



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

None.



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



|     |  |                                                                  
|---- |  | -----------------------------------------------------------------
|3.1  |  | Charter of Hometown Bancorp, Inc. (1)                            
|     | 
|3.2  |  | Bylaws of Hometown Bancorp, Inc. (1)                             
|     | 
|4.0  |  | Stock Certificate of Hometown Bancorp, Inc. (1)                  
|     | 
|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                                       

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|(1) | 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. 333-141351.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



15



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##### Table of Contents

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.



|                     |  |  |  |                        |  |                                              |  | 
|-------------------- |  |  |  | ---------------------- |  | -------------------------------------------- |  | 
|                     |  |  |  | HOMETOWN BANCORP, INC. |  |                                             
|                     |  |  |  |                       
|Dated: June 27, 2007 |  |  |  | By:                    |  | /s/ Thomas F. Gibney                         |  | 
|                     |  |  |  |                        |  | Thomas F. Gibney                             |  | 
|                     |  |  |  |                        |  | President and Chief Executive Officer        |  | 
|                     |  |  |  |                        |  | (principal executive officer)                |  | 
|                     |  |  |  |                       
|Dated: June 27, 2007 |  |  |  | By:                    |  | /s/ Stephen W. Dederick                      |  | 
|                     |  |  |  |                        |  | Stephen W. Dederick                          |  | 
|                     |  |  |  |                        |  | Vice President and Chief Financial Officer   |  | 
|                     |  |  |  |                        |  | (principal financial and accounting officer) |  |