**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 |
|---------|--------------------------------------------------------------------------------|

**HOMETOWN      BANCORP, INC.**

| **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**

**(845)      778-2171**

**Not      Applicable**

----

**HOMETOWN      BANCORP, INC.**

**FORM      10-QSB**

**Index**

|                                             |   |                                                                                                                                                 |   | ***Page                No.*** |
|--------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|
| **PART                I. FINANCIAL INFORMATION** |   |                                                                                                                                                 |
|                                             |   |                                                                                                                                                 |   |                          |
| Item                1.                           |   | Financial                Statements                                                                                                                  |   |                          |
|                                             |   |                                                                                                                                                 |   |                          |
|                                             |   | Consolidated                Balance Sheets at June 30, 2007 and December 31, 2006                (Unaudited)                                         |   | 2                             |
|                                             |   |                                                                                                                                                 |   |                          |
|                                             |   | Consolidated                Statements of Income for the three and six months ended June 30,                2007 and                2006 (Unaudited) |   | 3                             |
|                                             |   |                                                                                                                                                 |   |                          |
|                                             |   | Consolidated                Statements of Stockholders’ Equity for the six months ended June 30, 2007                and 2006 (Unaudited)      |   | 4                             |
|                                             |   |                                                                                                                                                 |   |                          |
|                                             |   | Consolidated                Statements of Cash Flows for the six months ended June 30, 2007 and                2006                (Unaudited)       |   | 5                             |
|                                             |   |                                                                                                                                                 |   |                          |
|                                             |   | Notes                to Unaudited Consolidated Financial Statements                                                                                  |   | 6                             |
|                                             |   |                                                                                                                                                 |   |                          |
| Item                2.                           |   | Management’s                Discussion and Analysis or Plan of Operation                                                                       |   | 9                             |
|                                             |   |                                                                                                                                                 |   |                          |
| Item                3.                           |   | Controls                and Procedures                                                                                                               |   | 17                            |
|                                             |   |                                                                                                                                                 |   |                          |
| **PART                II. OTHER INFORMATION**    |   |                                                                                                                                                 |
|                                             |   |                                                                                                                                                 |   |                          |
| Item                1.                           |   | Legal                Proceedings                                                                                                                     |   | 17                            |
|                                             |   |                                                                                                                                                 |   |                          |
| Item                2.                           |   | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                           |   | 17                            |
|                                             |   |                                                                                                                                                 |   |                          |
| Item                3.                           |   | Defaults                upon Senior Securities                                                                                                       |   | 18                            |
|                                             |   |                                                                                                                                                 |   |                          |
| Item                4.                           |   | Submission                of Matters to a Vote of Security Holders                                                                                   |   | 18                            |
|                                             |   |                                                                                                                                                 |   |                          |
| Item                5.                           |   | Other                Information                                                                                                                     |   | 18                            |
|                                             |   |                                                                                                                                                 |   |                          |
| Item                6.                           |   | Exhibits                                                                                                                                             |   | 18                            |
|                                             |   |                                                                                                                                                 |   |                          |
| **Signatures**                                   |   |                                                                                                                                                 |   |                          |

----

**PART      I. FINANCIAL INFORMATION**

**Item      1.   Financial Statements**

***Hometown      Bancorp, Inc.***

|                                                                                                                                                                                                                  |   | **June                30,**                                                        |        | **December                31,** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|-------------|---------------------------------|--------|
|                                                                                                                                                                                                                  |   | **2007**                                                                           |        | **2006**                        |   |
|                                                                                                                                                                                                                  |   | **(Dollars                in Thousands,****Except                Per Share Data)** |        |
| **Assets**                                                                                                                                                                                                            |   |                                                                               |        |                            |   |
| Cash                and due from banks                                                                                                                                                                                |   | **$**                                                                              | **4,089**   |                            | $      | 2,726 |   |
| Interest                bearing demand deposits with banks                                                                                                                                                            |   |                                                                               | **4,923**   |                            |   | 539 |   |
| Cash                and Cash Equivalents                                                                                                                                                                              |   |                                                                               | **9,012**   |                            |   | 3,265 |   |
|                                                                                                                                                                                                                  |   |                                                                               |        |                            |   |   |   |
| Securities                available for sale                                                                                                                                                                          |   |                                                                               | **996**     |                            |   | 997 |   |
| Securities                held to maturity (fair value at June 30, 2007 $10,883; and at December                31,                2006 $11,016)                                                                      |   |                                                                               | **10,912**  |                            |   | 11,044 |   |
| Loans                held for sale                                                                                                                                                                                    |   |                                                                               | **431**     |                            |   | 1,168 |   |
| Loans                receivable, net of allowance for loan losses (at June 30, 2007 $705;                and                at December 31, 2006 $623)                                                                |   |                                                                               | **107,917** |                            |   | 96,665 |   |
| Premises                and equipment, net                                                                                                                                                                            |   |                                                                               | **2,454**   |                            |   | 2,527 |   |
| Federal                Home Loan Bank stock, at cost                                                                                                                                                                  |   |                                                                               | **142**     |                            |   | 233 |   |
| Accrued                interest receivable and other assets                                                                                                                                                           |   |                                                                               | **1,671**   |                            |   | 1,514 |   |
|                                                                                                                                                                                                                  |   |                                                                               |        |                            |   |   |   |
| **Total                Assets**                                                                                                                                                                                       |   | **$**                                                                              | **133,535** |                            | $      | 117,413 |   |
|                                                                                                                                                                                                                  |   |                                                                               |        |                            |   |   |   |
| **Liabilities                and Stockholders’ Equity**                                                                                                                                                         |   |                                                                               |        |                            |   |   |   |
| **Liabilities**                                                                                                                                                                                                  |   |                                                                               |        |                            |   |   |   |
| Deposits:                                                                                                                                                                                                             |   |                                                                               |        |                            |   |   |   |
| Non-interest                bearing                                                                                                                                                                                   |   | **$**                                                                              | **17,609**  |                            | $      | 18,692 |   |
| Interest                bearing                                                                                                                                                                                       |   |                                                                               | **95,295**  |                            |   | 85,826 |   |
| Total                Deposits                                                                                                                                                                                         |   |                                                                               | **112,904** |                            |   | 104,518 |   |
|                                                                                                                                                                                                                  |   |                                                                               |        |                            |   |   |   |
| Federal                Home Loan Bank advances                                                                                                                                                                        |   |                                                                               | **-**       |                            |   | 2,525 |   |
| Advances                from borrowers for taxes and insurance                                                                                                                                                        |   |                                                                               | **642**     |                            |   | 432 |   |
| Accrued                interest payable                                                                                                                                                                               |   |                                                                               | **300**     |                            |   | 384 |   |
| Other                liabilities                                                                                                                                                                                      |   |                                                                               | **1,726**   |                            |   | 1,034 |   |
| **Total                Liabilities**                                                                                                                                                                                  |   |                                                                               | **115,572** |                            |   | 108,893 |   |
|                                                                                                                                                                                                                  |   |                                                                               |        |                            |   |   |   |
| **Commitments                and Contingencies**                                                                                                                                                                      |   |                                                                               | **-**       |                            |   | - |   |
|                                                                                                                                                                                                                  |   |                                                                               |        |                            |   |   |   |
| **Stockholders’                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 at June 30, 2007 2,380,500 shares; and at December 31,                2006                100 shares |   |                                                                               | **24**      |                            |   | - |   |
| Paid-in                capital                                                                                                                                                                                        |   |                                                                               | **10,109**  |                            |   | 150 |   |
| Retained                earnings                                                                                                                                                                                      |   |                                                                               | **8,757**   |                            |   | 8,372 |   |
| Unearned                ESOP shares, at cost                                                                                                                                                                          |   |                                                                               | **(910**    | **)**                           |   | - |   |
| Accumulated                other comprehensive loss                                                                                                                                                                   |   |                                                                               | **(17**     | **)**                           |   | (2 | ) |
| **Total                Stockholders’ Equity**                                                                                                                                                                   |   |                                                                               | **17,963**  |                            |   | 8,520 |   |
|                                                                                                                                                                                                                  |   |                                                                               |        |                            |   |   |   |
| **Total                Liabilities and Stockholders’ Equity**                                                                                                                                                   |   | **$**                                                                              | **133,535** |                            | $      | 117,413 |   |

*See      notes to consolidated financial statements.*

----

***Hometown      Bancorp, Inc.***

**Consolidated      Statements of Income**

*(Unaudited)*

|                                                                                                       |   | **Three                Months Ended June 30,**             |      |  **Six                Months Ended June 30,** |   |
|------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|-----------|----------------------------------------------------|--------|
|                                                                                                       |   | **2007**                                                   |      | **2006**                                           |   |  **2007** |   | **2006** |   |
|                                                                                                       |   |  (In                Thousands, except per share data) |      |
| **Interest                Income**                                                                         |   |                                                       |      |                                               |   |    |   |   |   |
| Loans                receivable, including fees                                                            |   | **$**                                                      | **1,993** |                                               | $      | 1,610 |   | **$** | **3,913** |   | $ | 3,119 |   |
| Securities,                taxable                                                                         |   |                                                       | **151**   |                                               |   | 163 |   |   | **294** |   |   | 210 |   |
| Other                                                                                                      |   |                                                       | **45**    |                                               |   | 57 |   |   | **75** |   |   | 110 |   |
| **Total                Interest Income**                                                                   |   |                                                       | **2,189** |                                               |   | 1,830 |   |   | **4,282** |   |   | 3,439 |   |
|                                                                                                       |   |                                                       |      |                                               |   |   |   |   |   |   |   |   |   |
| **Interest                Expense**                                                                        |   |                                                       |      |                                               |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                   |   |                                                       | **788**   |                                               |   | 547 |   |   | **1,498** |   |   | 969 |   |
| Stock                subscription funds                                                                    |   |                                                       | **3**     |                                               |   | - |   |   | **3** |   |   | - |   |
| Federal                Home Loan Bank advances                                                             |   |                                                       | **21**    |                                               |   | 12 |   |   | **68** |   |   | 13 |   |
| **Total                Interest Expense**                                                                  |   |                                                       | **812**   |                                               |   | 559 |   |   | **1,569** |   |   | 982 |   |
|                                                                                                       |   |                                                       |      |                                               |   |   |   |   |   |   |   |   |   |
| **Net                Interest Income**                                                                     |   |                                                       | **1,377** |                                               |   | 1,271 |   |   | **2,713** |   |   | 2,457 |   |
|                                                                                                       |   |                                                       |      |                                               |   |   |   |   |   |   |   |   |   |
| **Provision                for Loan Losses**                                                               |   |                                                       | **35**    |                                               |   | 34 |   |   | **94** |   |   | 44 |   |
|                                                                                                       |   |                                                       |      |                                               |   |   |   |   |   |   |   |   |   |
| **Net                Interest Income after Provision for Loan Losses**                                     |   |                                                       | **1,342** |                                               |   | 1,237 |   |   | **2,619** |   |   | 2,413 |   |
|                                                                                                       |   |                                                       |      |                                               |   |   |   |   |   |   |   |   |   |
| **Non-interest                Income**                                                                     |   |                                                       |      |                                               |   |   |   |   |   |   |   |   |   |
| Banking                fees and service charges                                                            |   |                                                       | **298**   |                                               |   | 198 |   |   | **566** |   |   | 367 |   |
| Mortgage                banking income, net                                                                |   |                                                       | **96**    |                                               |   | 78 |   |   | **223** |   |   | 151 |   |
| Investment                brokerage fees                                                                   |   |                                                       | **27**    |                                               |   | 24 |   |   | **39** |   |   | 37 |   |
| Realized                losses on sales of securities                                                      |   |                                                       | **-**     |                                               |   | - |   |   | **(2** | **)** |   | - |   |
| Foreclosed                assets, net                                                                      |   |                                                       | **-**     |                                               |   | (19 | ) |   | **-** |   |   | (34 | ) |
| Other                                                                                                      |   |                                                       | **20**    |                                               |   | 6 |   |   | **42** |   |   | 20 |   |
| **Total                Non-interest Income**                                                               |   |                                                       | **441**   |                                               |   | 287 |   |   | **868** |   |   | 541 |   |
|                                                                                                       |   |                                                       |      |                                               |   |   |   |   |   |   |   |   |   |
| **Non-interest                Expenses**                                                                   |   |                                                       |      |                                               |   |   |   |   |   |   |   |   |   |
| Salaries                and employee benefits                                                              |   |                                                       | **862**   |                                               |   | 793 |   |   | **1,725** |   |   | 1,564 |   |
| Occupancy                and equipment                                                                     |   |                                                       | **152**   |                                               |   | 137 |   |   | **307** |   |   | 273 |   |
| Professional                fees                                                                           |   |                                                       | **55**    |                                               |   | 74 |   |   | **83** |   |   | 124 |   |
| Advertising                and marketing                                                                   |   |                                                       | **62**    |                                               |   | 55 |   |   | **122** |   |   | 115 |   |
| Data                processing                                                                             |   |                                                       | **117**   |                                               |   | 103 |   |   | **235** |   |   | 206 |   |
| Telephone                and postage                                                                       |   |                                                       | **51**    |                                               |   | 57 |   |   | **97** |   |   | 102 |   |
| Other                                                                                                      |   |                                                       | **153**   |                                               |   | 135 |   |   | **293** |   |   | 239 |   |
| **Total                Non-interest Expenses**                                                             |   |                                                       | **1,452** |                                               |   | 1,354 |   |   | **2,862** |   |   | 2,623 |   |
|                                                                                                       |   |                                                       |      |                                               |   |   |   |   |   |   |   |   |   |
| **Income                before Income Taxes**                                                              |   |                                                       | **331**   |                                               |   | 170 |   |   | **625** |   |   | 331 |   |
|                                                                                                       |   |                                                       |      |                                               |   |   |   |   |   |   |   |   |   |
| **Income                Tax Expense**                                                                      |   |                                                       | **126**   |                                               |   | 63 |   |   | **240** |   |   | 122 |   |
|                                                                                                       |   |                                                       |      |                                               |   |   |   |   |   |   |   |   |   |
| **Net                Income**                                                                              |   | **$**                                                      | **205**   |                                               | $      | 107 |   | **$** | **385** |   | $ | 209 |   |
|                                                                                                       |   |                                                       |      |                                               |   |   |   |   |   |   |   |   |   |
| **Net                Income per common share- basic and diluted**                                          |   | **$**                                                      | **0.15**  |                                               | $      | 0.08 |   | **$** | **0.29** |   | $ | 0.16 |   |
| **Weighted                average number of common shares outstanding - basic and                diluted** |   |                                                       | **1,342** |                                               |   | 1,309 |   |   | **1,326** |   |   | 1,309 |   |

*See      notes to consolidated financial statements.*

----

***Hometown      Bancorp, Inc.***

**Consolidated      Statements of Stockholder’s Equity**

**Six      Months Ended June 30, 2007 and 2006**

**(In      Thousands) **
*(Unaudited)*

|                                                                                                                                                  |   | **Common****Stock** |   | **Paid-In****Capital** |   | **Retained****Earnings** |   | **Unearned                ESOP Shares** |      | **Accumulated****Other****Comprehensive                Income** |   | **Total** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|------------------------|--------|--------------------------|--------|-----------------------------------------|-----------|-----------------------------------------------------------------|--------|-----------|--------|
| **Balance                - December 31, 2005**                                                                                                        |   | $                   | -      |                   | $      | -                        |   | $                                       | 7,809     |                                                            | $      | -         |   | $ | (45)- |   | $ | 7,764 |   |
|                                                                                                                                                  |   |                |   |                   |   |                     |   |                                    |      |                                                            |   |      |   |   |   |   |   |   |   |
| Comprehensive                income:                                                                                                                  |   |                |   |                   |   |                     |   |                                    |      |                                                            |   |      |   |   |   |   |   |   |   |
| Net                income                                                                                                                             |   |                | -      |                   |   | -                        |   |                                    | 209       |                                                            |   | -         |   |   | - |   |   | 209 |   |
| Change                in net unrealized losses on securities available for sale, net of                reclassification adjustment and taxes          |   |                | -      |                   |   | -                        |   |                                    | -         |                                                            |   |      |   |   | (12 | ) |   | (12 | ) |
|                                                                                                                                                       |   |                |   |                   |   |                     |   |                                    |      |                                                            |   |      |   |   |   |   |   |   |   |
| **Total                Comprehensive Income**                                                                                                         |   |                |   |                   |   |                     |   |                                    |      |                                                            |   |      |   |   |   |   |   | 197 |   |
|                                                                                                                                                  |   |                |   |                   |   |                     |   |                                    |      |                                                            |   |      |   |   |   |   |   |   |   |
| Capitalization                of Hometown Bancorp, Inc.                                                                                               |   |                | -      |                   |   | 150                      |   |                                    | (150      | )                                                               |   | -         |   |   | - |   |   | - |   |
| Dividend                paid to capitalize Hometown Bancorp MHC                                                                                       |   |                | -      |                   |   | -                        |   |                                    | (150      | )                                                               |   | -         |   |   | - |   |   | (150 | ) |
| **Balance                - June 30, 2006**                                                                                                            |   | $                   | -      |                   | $      | 150                      |   | $                                       | 7,718     |                                                            | $      | -         |   | $ | (57 | ) | $ | 7,811 |   |
|                                                                                                                                                  |   |                |   |                   |   |                     |   |                                    |      |                                                            |   |      |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |                |   |                   |   |                     |   |                                    |      |                                                            |   |      |   |   |   |   |   |   |   |
| **Balance                - December 31, 2006**                                                                                                        |   | **$**               | **-**  |                   | **$**  | **150**                  |   | **$**                                   | **8,372** |                                                            | **$**  | **-**     |   | **$** | **(2)-** |   | **$** | **8,520** |   |
|                                                                                                                                                  |   |                |   |                   |   |                     |   |                                    |      |                                                            |   |      |   |   |   |   |   |   |   |
| Comprehensive                income:                                                                                                                  |   |                |   |                   |   |                     |   |                                    |      |                                                            |   |      |   |   |   |   |   |   |   |
| Net                income                                                                                                                             |   |                | **-**  |                   |   | **-**                    |   |                                    | **385**   |                                                            |   | **-**     |   |   | **-** |   |   | **385** |   |
| Change                in net unrealized losses on securities available for sale, net of                reclassification adjustment and taxes          |   |                | **-**  |                   |   | **-**                    |   |                                    | **-**     |                                                            |   | **-**     |   |   | **-** |   |   | **-** |   |
| Unrecognized                losses and past service liability for the Directors Retirement Plan,                net                of taxes of $3,000 |   |                | **-**  |                   |   | **-**                    |   |                                    | **-**     |                                                            |   |      |   |   | **(15** | **)** |   | **(15** | **)** |
|                                                                                                                                                  |   |                |   |                   |   |                     |   |                                    |      |                                                            |   |      |   |   |   |   |   |   |   |
| **Total                Comprehensive Income**                                                                                                         |   |                |   |                   |   |                     |   |                                    |      |                                                            |   |      |   |   |   |   |   | **370** |   |
|                                                                                                                                                  |   |                |   |                   |   |                     |   |                                    |      |                                                            |   |      |   |   |   |   |   |   |   |
| Shares                issued in public offering (2,380,500 shares)                                                                                    |   |                | **24** |                   |   | **9,959**                |   |                                    | **-**     |                                                            |   | **-**     |   |   | **-** |   |   | **9,983** |   |
| Shares                purchased by ESOP                                                                                                               |   |                | **-**  |                   |   | **-**                    |   |                                    | **-**     |                                                            |   | **(933**  | **)**  |   | **-** |   |   | **(933** | **)** |
| ESOP                shares committed to be released (2,330 shares)                                                                                    |   |                | **-**  |                   |   | **-**                    |   |                                    | **-**     |                                                            |   | **23**    |   |   | **-** |   |   | **23** |   |
| **Balance                - June 30, 2007**                                                                                                            |   | **$**               | **24** |                   | **$**  | **10,109**               |   | **$**                                   | **8,757** |                                                            | **$**  | **(910**  | **)**  | **$** | **(17** | **)** | **$** | **17,963** |   |

*See      notes to consolidated financial statements.*

----

***Hometown      Bancorp, Inc.***

**Consolidated      Statements of Cash Flows**

*(Unaudited)*

|                                                                                                                   |   | **Six                Months Ended June 30,** |        |
|------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|-------------|
|                                                                                                                   |   | **2007**                                     |        | **2006** |   |
|                                                                                                                   |   | **(In                Thousands)**            |        |
| **Cash                Flows from Operating Activities**                                                                |   |                                         |        |   |   |
| Net                income                                                                                              |   | **$**                                        | **385**     |   | $ | 209 |   |
| Adjustments                to reconcile net income to net cash provided (used) by operating                activities: |   |                                         |        |   |   |   |   |
| Depreciation                and amortization expense                                                                   |   |                                         | **104**     |   |   | 90 |   |
| Provision                for loan losses                                                                               |   |                                         | **94**      |   |   | 44 |   |
| Amortization                of mortgage servicing rights                                                               |   |                                         | **76**      |   |   | 91 |   |
| Net                amortization (accretion) of securities premiums and                discounts                        |   |                                         | **(23**     | **)** |   | (23 | ) |
| Net                realized loss on sales of securities                                                                |   |                                         | **2**       |   |   | - |   |
| Net                gain on sale of loans                                                                               |   |                                         | **(147**    | **)** |   | (67 | ) |
| Loans                originated for sale                                                                               |   |                                         | **(9,622**  | **)** |   | (6,853 | ) |
| Proceeds                from sale of loans                                                                             |   |                                         | **10,506**  |   |   | 5,444 |   |
| ESOP                expense                                                                                            |   |                                         | **23**      |   |   | - |   |
| Increase                in accrued interest receivable and other assets                                                |   |                                         | **(233**    | **)** |   | (206 | ) |
| Increase                in accrued interest payable and other liabilities                                              |   |                                         | **593**     |   |   | 705 |   |
| **Net                Cash Provided (Used) by Operating Activities**                                                    |   |                                         | **1,758**   |   |   | (566 | ) |
| **Cash                Flows from Investing Activities**                                                                |   |                                         |        |   |   |   |   |
| Activity                in available for sale securities:                                                              |   |                                         |        |   |   |   |   |
| Purchases                                                                                                              |   |                                         | **-**       |   |   | (51 | ) |
| Activity                in held to maturity securities:                                                                |   |                                         |        |   |   |   |   |
| Purchases                                                                                                              |   |                                         | **(9,000**  | **)** |   | (9,853 | ) |
| Maturities,                calls and principal repayments                                                              |   |                                         | **157**     |   |   | 162 |   |
| Proceeds                from sales                                                                                     |   |                                         | **8,997**   |   |   | - |   |
| Net                increase in loans receivable                                                                        |   |                                         | **(11,346** | **)** |   | (6,319 | ) |
| Net                (increase) decrease in Federal Home Loan Bank stock                                                 |   |                                         | **91**      |   |   | (137 | ) |
| Purchases                of bank premises and equipment                                                                |   |                                         | **(31**     | **)** |   | (278 | ) |
| **Net                Cash Used by Investing Activities**                                                               |   |                                         | **(11,132** | **)** |   | (16,476 | ) |
| **Cash                Flows from Financing Activities**                                                                |   |                                         |        |   |   |   |   |
| Net                increase in deposits                                                                                |   |                                         | **8,386**   |   |   | 12,933 |   |
| Net                increase (decrease) in Federal Home Loan Bank advances                                              |   |                                         | **(2,525**  | **)** |   | 2,800 |   |
| Increase                in advances from borrowers for taxes and insurance                                             |   |                                         | **210**     |   |   | 165 |   |
| Net                proceeds from common stock offering                                                                 |   |                                         | **9,983**   |   |   | - |   |
| Purchase                of shares for ESOP                                                                             |   |                                         | **(933**    | **)** |   | - |   |
| Dividend                paid to Hometown Bancorp MHC                                                                   |   |                                         | **-**       |   |   | (150 | ) |
|                                                                                                                   |   |                                         |        |   |   |   |   |
| **Net                Cash Provided by Financing Activities**                                                           |   |                                         | **15,121**  |   |   | 15,748 |   |
|                                                                                                                   |   |                                         |        |   |   |   |   |
| **Net                Increase (Decrease) in Cash and Cash Equivalents**                                                |   |                                         | **5,747**   |   |   | (1,294 | ) |
|                                                                                                                   |   |                                         |        |   |   |   |   |
| **Cash                and Cash Equivalents - Beginning**                                                               |   |                                         | **3,265**   |   |   | 5,802 |   |
| **Cash                and Cash Equivalents - Ending**                                                                  |   | **$**                                        | **9,012**   |   | $ | 4,508 |   |
| **Supplementary                Cash Flows Information**                                                                |   |                                         |        |   |   |   |   |
| Interest                paid                                                                                           |   | **$**                                        | **1,650**   |   | $ | 834 |   |
|                                                                                                                   |   |                                         |        |   |   |   |   |
| Income                taxes paid                                                                                       |   | **$**                                        | **213**     |   | $ | 145 |   |

----

***Hometown      Bancorp, Inc.***

**Notes      to the Unaudited Consolidated Financial Statements**

**Note      1 – Basis      of      Presentation**

**Note      2 – Minority Stock Issuance **

**Note      3 – Directors’ Retirement Plan**

|                                              |   | For                the Six Months Ended |   |
|---------------------------------------------------|--------|-----------------------------------------|--------|
|                                              |   | June                30, 2007            |   |
|                                              |   | (in                thousands)           |   |
| Service                cost                       |   | $                                       | 41     |   |
| Interest                cost                      |   |                                    | 2      |   |
| Amortization                of prior service cost |   |                                    | 5      |   |
| Net                periodic pension expense       |   | $                                       | 48     |   |

----

**Note      4 – Comprehensive Income (Loss)**

|                                                                              |   | **Three                Months Ended June 30,** |        | **Six                Months Ended June 30,** |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------------------|-------------|----------------------------------------------|--------|
|                                                                              |   | **2007**                                       |        | **2006**                                     |   | **2007** |   | **2006** |   |
|                                                                              |   | **(In                Thousands)**              |        |
| Unrealized                holding gains (losses) on securities available for sale |   | **$**                                          | **2**       |                                         | $      | (12 | ) | **$** | **—** |   | $ | (20 | ) |
| Reclassification                adjustment for losses included in net income      |   |                                           | **—** |                                         |   | **—** |   |   | **—** |   |   | **—** |   |
|  **Change                in Net Unrealized Losses**                          |   |                                           | **2**       |                                         |   | (12 | ) |   | **—** |   |   | (20 | ) |
|                                                                              |   |                                           |        |                                         |   |   |   |   |   |   |   |   |   |
| Unrecognized                pension losses and past service liability             |   |                                           | **(18**     | **)**                                        |   | **—** |   |   | **(18** | **)** |   | **—** |   |
|                                                                              |   |                                           |        |                                         |   |   |   |   |   |   |   |   |   |
| Income                tax effect                                                  |   |                                           | **2**       |                                         |   | 5 |   |   | **3** |   |   | 8 |   |
|                                                                              |   |                                           |        |                                         |   |   |   |   |   |   |   |   |   |
| **Net                of Tax Amount**                                              |   | **$**                                          | **(14**     | **)**                                        | $      | (7 | ) | **$** | **(15** | **)** | $ | (12 | ) |

**Note      5 – Employee Stock Ownership Plan**

**Note      6 – Earnings Per Share**

----

*Earnings      per Share*

**Note      7 – Estimates**

**Note      8 – Recent Accounting Pronouncements **

**Statement      of Financial Accounting Standards (“SFAS”) 157**

**SFAS      159**

**FIN      48**

----

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

**Forward-Looking      Statements**

**Critical      Accounting Policies**

***Allowance      for Loan Losses.***

----

**General**

**Balance      Sheet Analysis**

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

----

**Comparison      of Financial Condition at June 30, 2007 and December 31,      2006**

***Loans***

***Nonperforming      Assets.***

| (Dollars                in thousands)                                                                     |   | **June                30, 2007** |    | **December                31, 2006** |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------------------------------------|--------|
|  Nonaccrual                loans:                                                                    |   |                             |    |                                 |   |
| One-                to four-family residential real estate                                                |   | $                                | 142     |                                 | $      | 199 |   |
| Construction                                                                                              |   |                             | — |                                 |   | — |   |
| Multi-family                and commercial real estate                                                    |   |                             | — |                                 |   | 191 |   |
| Land                                                                                                      |   |                             | — |                                 |   | — |   |
| Commercial                                                                                                |   |                             | 49      |                                 |   | 49 |   |
| Consumer                                                                                                  |   |                             | — |                                 |   | — |   |
| Total                                                                                                     |   |                             | 191     |                                 |   | 439 |   |
|                                                                                                      |   |                             |    |                                 |   |   |   |
| Foreclosed                real estate                                                                     |   |                             | — |                                 |   | — |   |
| Other                nonperforming assets                                                                 |   |                             | — |                                 |   | — |   |
| Total                nonperforming assets                                                                 |   |                             | 191     |                                 |   | 439 |   |
| Troubled                debt restructurings                                                               |   |                             | — |                                 |   | — |   |
| Troubled                debt restructurings andtotal                nonperforming assets                  |   | $                                | 191     |                                 | $      | 439 |   |
|                                                                                                      |   |                             |    |                                 |   |   |   |
| Total                nonperforming loans to total loans                                                   |   |                             | 0.18    | %                                    |   | 0.45 | % |
| Total                nonperforming loans to total assets                                                  |   |                             | 0.14    |                                 |   | 0.37 |   |
| Total                nonperforming assets and troubled debt                restructurings to total assets |   |                             | 0.14    |                                 |   | 0.37 |   |

***Securities.***

***Deposits***

***Borrowings***
**.**

----

***Stockholders’      Equity.***
*** ***

**Results      of Operations for the Three Months Ended June 30, 2007 and      2006**

***Financial      Highlights.***

***Net      Interest Income.***

----

|                                                                                                  |   | **Three                Months Ended June 30,** |    |
|-------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|---------|
|                                                                                                  |   | **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)                                                                              |   | $                                              | 107,200 |   | $ | 1,993 |   |   | 7.44 | % | $ | 87,603 |   | $ | 1,610 |   |   | 7.35 | % |
| Investment                securities                                                                  |   |                                           | 11,952  |   |   | 151 |   |   | 5.05 |   |   | 14,630 |   |   | 163 |   |   | 4.46 |   |
| Other                interest-earning assets                                                          |   |                                           | 3,647   |   |   | 45 |   |   | 4.94 |   |   | 4,244 |   |   | 57 |   |   | 5.37 |   |
| Total                interest-earning assets                                                          |   |                                           | 122,799 |   |   | 2,189 |   |   | 7.13 |   |   | 106,477 |   |   | 1,830 |   |   | 6.87 |   |
|                                                                                                  |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning                assets                                                            |   |                                           | 4,762   |   |   |   |   |   |   |   |   | 5,296 |   |   |   |   |   |   |   |
| Total                assets                                                                           |   | $                                              | 127,561 |   |   |   |   |   |   |   | $ | 111,773 |   |   |   |   |   |   |   |
|                                                                                                  |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and stockholders’ equity:**                                        |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                                                          |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                demand deposits                                                       |   | $                                              | 6,457   |   |   | 4 |   |   | 0.25 |   | $ | 6,649 |   |   | 4 |   |   | 0.24 |   |
| Money                market accounts                                                                  |   |                                           | 12,866  |   |   | 74 |   |   | 2.30 |   |   | 20,690 |   |   | 136 |   |   | 2.63 |   |
| Savings                accounts                                                                       |   |                                           | 13,486  |   |   | 17 |   |   | 0.50 |   |   | 15,382 |   |   | 19 |   |   | 0.49 |   |
| Certificates                of deposit                                                                |   |                                           | 63,449  |   |   | 693 |   |   | 4.37 |   |   | 42,946 |   |   | 388 |   |   | 3.61 |   |
| Stock                subscription funds                                                               |   |                                           | 1,596   |   |   | 3 |   |   | 0.75 |   |   | - |   |   | - |   |   | 0.00 |   |
| Borrowings                                                                                            |   |                                           | 1,527   |   |   | 21 |   |   | 5.50 |   |   | 944 |   |   | 12 |   |   | 5.08 |   |
| Total                interest-bearing liabilities                                                     |   |                                           | 99,381  |   |   | 812 |   |   | 3.27 |   |   | 86,611 |   |   | 559 |   |   | 2.58 |   |
|                                                                                                  |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing                demand deposits (1)                                               |   |                                           | 17,295  |   |   |   |   |   |   |   |   | 15,909 |   |   |   |   |   |   |   |
| Other                non-interest-bearing liabilities                                                 |   |                                           | 1,708   |   |   |   |   |   |   |   |   | 1,318 |   |   |   |   |   |   |   |
| Total                liabilities                                                                      |   |                                           | 118,384 |   |   |   |   |   |   |   |   | 103,838 |   |   |   |   |   |   |   |
|                                                                                                  |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’                equity                                                             |   |                                           | 9,177   |   |   |   |   |   |   |   |   | 7,935 |   |   |   |   |   |   |   |
| Total                liabilities and stockholders’ equity                                       |   | $                                              | 127,561 |   |   |   |   |   |   |   | $ | 111,773 |   |   |   |   |   |   |   |
|                                                                                                  |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                                                                    |   |                                           |    |   | $ | 1,377 |   |   |   |   |   |   |   | $ | 1,271 |   |   |   |   |
| Interest                rate spread                                                                   |   |                                           |    |   |   |   |   |   | 3.86 |   |   |   |   |   |   |   |   | 4.29 |   |
| Net                interest margin                                                                    |   |                                           |    |   |   |   |   |   | 4.49 |   |   |   |   |   |   |   |   | 4.77 |   |
| Average                interest-earning assets to average                interest-bearing liabilities |   |                                           | 123.56  | % |   |   |   |   |   |   |   | 122.94 | % |   |   |   |   |   |   |

----

| (1)   | The                calculation of yields and costs includes average balances of                $3.1 million and $874,000 in letters of credit categorized as land                loans on which no interest was earned for the three months ended                June 30,                2007 and 2006, respectively. These letters of credit are also included                in                non-interest-bearing demand deposits on which no interest was                paid. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Provision      for Loan Losses.***

***Non-Interest      Income.***

***Non-Interest      Expenses.***

----

***Income      Taxes***
*.      *

**Results      of Operations for the Six Months Ended June 30, 2007 and      2006**

***Financial      Highlights.***

***Net      Interest Income.***

----

|                                                                                                  |   | **Six                Months Ended June 30,** |    |
|-------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|
|                                                                                                  |   | **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)                                                                              |   | $                                            | 104,278 |   | $ | 3,913 |   |   | 7.50 | % | $ | 85,556 |   | $ | 3,119 |   |   | 7.29 | % |
| Investment                securities                                                                  |   |                                         | 11,983  |   |   | 294 |   |   | 4.91 |   |   | 10,019 |   |   | 210 |   |   | 4.19 |   |
| Other                interest-earning assets                                                          |   |                                         | 3,272   |   |   | 75 |   |   | 4.58 |   |   | 4,518 |   |   | 110 |   |   | 4.87 |   |
| Total                interest-earning assets                                                          |   |                                         | 119,533 |   |   | 4,282 |   |   | 7.16 |   |   | 100,093 |   |   | 3,439 |   |   | 6.87 |   |
|                                                                                                  |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning                assets                                                            |   |                                         | 4,763   |   |   |   |   |   |   |   |   | 5,181 |   |   |   |   |   |   |   |
| Total                assets                                                                           |   | $                                            | 124,296 |   |   |   |   |   |   |   | $ | 105,274 |   |   |   |   |   |   |   |
|                                                                                                  |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and stockholders’ equity:**                                        |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                                                          |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                demand deposits                                                       |   | $                                            | 6,337   |   |   | 8 |   |   | 0.25 |   | $ | 6,740 |   |   | 8 |   |   | 0.24 |   |
| Money                market accounts                                                                  |   |                                         | 13,976  |   |   | 169 |   |   | 2.42 |   |   | 19,818 |   |   | 246 |   |   | 2.48 |   |
| Savings                accounts                                                                       |   |                                         | 13,447  |   |   | 33 |   |   | 0.49 |   |   | 15,125 |   |   | 37 |   |   | 0.49 |   |
| Certificates                of deposit                                                                |   |                                         | 59,121  |   |   | 1,288 |   |   | 4.36 |   |   | 38,046 |   |   | 678 |   |   | 3.56 |   |
| Stock                subscription funds                                                               |   |                                         | 803     |   |   | 3 |   |   | 0.75 |   |   | - |   |   | - |   |   | 0.00 |   |
| Borrowings                                                                                            |   |                                         | 2,479   |   |   | 68 |   |   | 5.49 |   |   | 531 |   |   | 13 |   |   | 4.90 |   |
| Total                interest-bearing liabilities                                                     |   |                                         | 96,163  |   |   | 1,569 |   |   | 3.26 |   |   | 80,260 |   |   | 982 |   |   | 2.45 |   |
|                                                                                                  |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing                demand deposits (1)                                               |   |                                         | 17,374  |   |   |   |   |   |   |   |   | 15,862 |   |   |   |   |   |   |   |
| Other                non-interest-bearing liabilities                                                 |   |                                         | 1,837   |   |   |   |   |   |   |   |   | 1,237 |   |   |   |   |   |   |   |
| Total                liabilities                                                                      |   |                                         | 115,374 |   |   |   |   |   |   |   |   | 97,359 |   |   |   |   |   |   |   |
|                                                                                                  |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’                equity                                                             |   |                                         | 8,922   |   |   |   |   |   |   |   |   | 7,915 |   |   |   |   |   |   |   |
| Total                liabilities and stockholders’ equity                                       |   | $                                            | 124,296 |   |   |   |   |   |   |   | $ | 105,274 |   |   |   |   |   |   |   |
|                                                                                                  |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                                                                    |   |                                         |    |   | $ | 2,713 |   |   |   |   |   |   |   | $ | 2,457 |   |   |   |   |
| Interest                rate spread                                                                   |   |                                         |    |   |   |   |   |   | 3.90 |   |   |   |   |   |   |   |   | 4.42 |   |
| Net                interest margin                                                                    |   |                                         |    |   |   |   |   |   | 4.54 |   |   |   |   |   |   |   |   | 4.91 |   |
| Average                interest-earning assets to average                interest-bearing liabilities |   |                                         | 124.30  | % |   |   |   |   |   |   |   | 124.71 | % |   |   |   |   |   |   |

----

| (2)   | The                calculation of yields and costs includes average balances of                $3.0 million and $791,000 in letters of credit categorized as land                loans on which no interest was earned for the six months ended June                30,                2007 and 2006, respectively. These letters of credit are also included                in                non-interest-bearing demand deposits on which no interest was                paid. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Provision      for Loan Losses.***

***Non-Interest      Income.***

***Non-Interest      Expenses.***

----

***Income      Taxes***
*.      *

**Liquidity      and Capital Management**

***Liquidity      Management.***

***Capital      Management.***

----

**Off-Balance      Sheet Arrangements**

**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 Hometown Bancorp, Inc. (1) |
|--|-----|------------------------------------------------------|

|  | 3.2 | Bylaws                of Hometown Bancorp, Inc. (1) |
|--|-----|-----------------------------------------------------|

|  | 4.0 | Stock                Certificate of Hometown Bancorp, Inc.                (1) |
|--|-----|-------------------------------------------------------------------------------|

|  | 10.1 | Change                    in Control Agreement between Walden Federal Savings and Loan                    Association,                    Hometown Bancorp, Inc. and Thomas F.                    Gibney. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.2 | Change                in Control Agreement between Walden Federal Savings and Loan Association,                 Hometown                Bancorp, Inc. and Stephen W.                Dederick |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.3 | Change                in Control Agreement between Walden Federal Savings and Loan Association,                 Hometown                Bancorp, Inc. and L. Bruce Lott |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.4 | Change                in Control Agreement between Walden Federal Savings and Loan Association,                 Hometown                Bancorp, Inc. and Judith B. Weyant |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 Registration Statement                on Form                SB-2, and any amendments thereto, Registration No.                333-141351. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|                                  |                                                                                               |                                           |
|---------------------------------------|----------------------------------------------------------------------------------------------------|------------------------------------------------|
|                                  |    HOMETOWN                BANCORP, INC.                                            |
|                             |                                                                                          |                                      |
| Dated:                August 13, 2007 | By:                                                                                      | /s/              Thomas F.              Gibney |
|                                  | Thomas                F. Gibney                                                                    |
|                                  | President                and Chief Executive Officer(principal                  executive officer) |

|                                  |                                                                                                                                                   |                                              |
|---------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|
| Dated:                August 13, 2007 | By:                                                                                                                                          | /s/              Stephen W.              Dederick |
|                                  | Stephen                W. Dederick                                                                                                                     |
|                                  | Vice                President and Chief                Financial Officer(principal                  financial and accounting                  officer) |

----