**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 September 30, 2007 and December 31, 2006                  (Unaudited)                                            | 2 |
|                                               |                                                                                                                                                             |   |
|                                               | Consolidated                  Statements of Income for the three and nine months ended September                  30,                  2007 and 2006 (Unaudited) | 3 |
|                                               |                                                                                                                                                             |   |
|                                               | Consolidated                  Statements of Stockholders’ Equity for the nine months ended September 30,                  2007 and 2006 (Unaudited)        | 4 |
|                                               |                                                                                                                                                             |   |
|                                               | Consolidated                  Statements of Cash Flows for the nine months ended September 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                                                                                                                         | 18 |
|                                               |                                                                                                                                                             |   |
| **PART                  II. OTHER INFORMATION**    |                                                                                                                                                             |
|                                               |                                                                                                                                                             |   |
| Item                  1.                           | Legal                  Proceedings                                                                                                                               | 19 |
|                                               |                                                                                                                                                             |   |
| Item                  2.                           | Unregistered                  Sales of Equity Securities and Use of Proceeds                                                                                     | 19 |
|                                               |                                                                                                                                                             |   |
| Item                  3.                           | Defaults                  upon Senior Securities                                                                                                                 | 19 |
|                                               |                                                                                                                                                             |   |
| Item                  4.                           | Submission                  of Matters to a Vote of Security Holders                                                                                             | 19 |
|                                               |                                                                                                                                                             |   |
| Item                  5.                           | Other                  Information                                                                                                                               | 19 |
|                                               |                                                                                                                                                             |   |
| Item                  6.                           | Exhibits                                                                                                                                                         | 19 |
|                                               |                                                                                                                                                             |   |
| **Signatures**                                     |                                                                                                                                                             |   |

----

**PART      I. FINANCIAL INFORMATION**

**Item      1. Financial Statements**

***Hometown      Bancorp, Inc.***

**Consolidated      Balance Sheets**

|                                                                                                                                                                                                                               |   | **September                  30,**                                                     |        | **December                  31,** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|-------------|-----------------------------------|--------|
|                                                                                                                                                                                                                               |   | **2007**                                                                               |        | **2006**                          |   |
|                                                                                                                                                                                                                               |   | **(Dollars                  in Thousands,****Except                  Per Share Data)** |        |
| **Assets**                                                                                                                                                                                                                         |   |                                                                                   |        |                              |   |
| Cash                  and due from banks                                                                                                                                                                                           |   | **$**                                                                                  | **2,681**   |                              | $      | 2,726 |   |
| Interest                  bearing demand deposits with banks                                                                                                                                                                       |   |                                                                                   | **3,136**   |                              |   | 539 |   |
| Cash                  and Cash Equivalents                                                                                                                                                                                         |   |                                                                                   | **5,817**   |                              |   | 3,265 |   |
|                                                                                                                                                                                                                               |   |                                                                                   |        |                              |   |   |   |
| Securities                  available for sale                                                                                                                                                                                     |   |                                                                                   | **1,002**   |                              |   | 997 |   |
| Securities                  held to maturity (fair value at September 30, 2007 $1,824; and                  at December                  31, 2006 $11,016)                                                                         |   |                                                                                   | **1,835**   |                              |   | 11,044 |   |
| Loans                  held for sale                                                                                                                                                                                               |   |                                                                                   | **1,175**   |                              |   | 1,168 |   |
| Loans                  receivable, net of allowance for loan losses (at September 30,                  2007 $768;                  and at December 31, 2006 $623)                                                                  |   |                                                                                   | **115,546** |                              |   | 96,665 |   |
| Premises                  and equipment, net                                                                                                                                                                                       |   |                                                                                   | **2,770**   |                              |   | 2,527 |   |
| Federal                  Home Loan Bank stock, at cost                                                                                                                                                                             |   |                                                                                   | **142**     |                              |   | 233 |   |
| Accrued                  interest receivable and other assets                                                                                                                                                                      |   |                                                                                   | **1,582**   |                              |   | 1,514 |   |
|                                                                                                                                                                                                                               |   |                                                                                   |        |                              |   |   |   |
| **Total                  Assets**                                                                                                                                                                                                  |   | **$**                                                                                  | **129,869** |                              | $      | 117,413 |   |
| **Liabilities                  and Stockholders’ Equity**                                                                                                                                                                    |   |                                                                                   |        |                              |   |   |   |
| **Liabilities**                                                                                                                                                                                                                    |   |                                                                                   |        |                              |   |   |   |
| Deposits:                                                                                                                                                                                                                          |   |                                                                                   |        |                              |   |   |   |
| Non-interest                  bearing                                                                                                                                                                                              |   | **$**                                                                                  | **18,457**  |                              | $      | 18,692 |   |
| Interest                  bearing                                                                                                                                                                                                  |   |                                                                                   | **91,217**  |                              |   | 85,826 |   |
| Total                  Deposits                                                                                                                                                                                                    |   |                                                                                   | **109,674** |                              |   | 104,518 |   |
|                                                                                                                                                                                                                               |   |                                                                                   |        |                              |   |   |   |
| Federal                  Home Loan Bank advances                                                                                                                                                                                   |   |                                                                                   | **-**       |                              |   | 2,525 |   |
| Advances                  from borrowers for taxes and insurance                                                                                                                                                                   |   |                                                                                   | **200**     |                              |   | 432 |   |
| Accrued                  interest payable                                                                                                                                                                                          |   |                                                                                   | **273**     |                              |   | 384 |   |
| Other                  liabilities                                                                                                                                                                                                 |   |                                                                                   | **1,472**   |                              |   | 1,034 |   |
| **Total                  Liabilities**                                                                                                                                                                                             |   |                                                                                   | **111,619** |                              |   | 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 September 30, 2007 2,380,500 shares; and at December                  31,                  2006 100 shares |   |                                                                                   | **24**      |                              |   | - |   |
| Paid-in                  capital                                                                                                                                                                                                   |   |                                                                                   | **10,132**  |                              |   | 150 |   |
| Retained                  earnings                                                                                                                                                                                                 |   |                                                                                   | **9,005**   |                              |   | 8,372 |   |
| Unearned                  ESOP shares, at cost                                                                                                                                                                                     |   |                                                                                   | **(898**    | **)**                             |   | - |   |
| Accumulated                  other comprehensive loss                                                                                                                                                                              |   |                                                                                   | **(13**     | **)**                             |   | (2 | ) |
| **Total                  Stockholders’ Equity**                                                                                                                                                                              |   |                                                                                   | **18,250**  |                              |   | 8,520 |   |
|                                                                                                                                                                                                                               |   |                                                                                   |        |                              |   |   |   |
| **Total                  Liabilities and Stockholders’ Equity**                                                                                                                                                              |   | **$**                                                                                  | **129,869** |                              | $      | 117,413 |   |

*See        notes to consolidated financial statements.*

----

***Hometown      Bancorp, Inc.***

**Consolidated      Statements of Income**

*(Unaudited)*

|                                                                                                       |   | **Three                Months Ended September 30,**      |      | **Nine                Months Ended September 30,** |   |
|------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|-----------|----------------------------------------------------|--------|
|                                                                                                       |   | **2007**                                                 |      | **2006**                                           |   | **2007** |   | **2006** |   |
|                                                                                                       |   | **(In                Thousands, except per share data)** |      |
| **Interest                Income**                                                                         |   |                                                     |      |                                               |   |    |   |   |   |
| Loans                receivable, including fees                                                            |   | **$**                                                    | **2,123** |                                               | $      | 1,798 |   | **$** | **6,036** |   | $ | 4,917 |   |
| Securities,                taxable                                                                         |   |                                                     | **146**   |                                               |   | 171 |   |   | **440** |   |   | 381 |   |
| Other                                                                                                      |   |                                                     | **48**    |                                               |   | 38 |   |   | **123** |   |   | 148 |   |
| **Total                Interest Income**                                                                   |   |                                                     | **2,317** |                                               |   | 2,007 |   |   | **6,599** |   |   | 5,446 |   |
|                                                                                                       |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| **Interest                Expense**                                                                        |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                   |   |                                                     | **752**   |                                               |   | 589 |   |   | **2,250** |   |   | 1,558 |   |
| Stock                subscription funds                                                                    |   |                                                     | **-**     |                                               |   | - |   |   | **3** |   |   | - |   |
| Federal                Home Loan Bank advances                                                             |   |                                                     | **20**    |                                               |   | 27 |   |   | **88** |   |   | 40 |   |
| **Total                Interest Expense**                                                                  |   |                                                     | **772**   |                                               |   | 616 |   |   | **2,341** |   |   | 1,598 |   |
|                                                                                                       |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| **Net                Interest Income**                                                                     |   |                                                     | **1,545** |                                               |   | 1,391 |   |   | **4,258** |   |   | 3,848 |   |
|                                                                                                       |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| **Provision                for Loan Losses**                                                               |   |                                                     | **66**    |                                               |   | 19 |   |   | **160** |   |   | 63 |   |
|                                                                                                       |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| **Net                Interest Income after Provision for Loan Losses**                                     |   |                                                     | **1,479** |                                               |   | 1,372 |   |   | **4,098** |   |   | 3,785 |   |
|                                                                                                       |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| **Non-interest                Income**                                                                     |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| Banking                fees and service charges                                                            |   |                                                     | **292**   |                                               |   | 219 |   |   | **858** |   |   | 586 |   |
| Mortgage                banking income, net                                                                |   |                                                     | **88**    |                                               |   | 77 |   |   | **311** |   |   | 228 |   |
| Investment                brokerage fees                                                                   |   |                                                     | **20**    |                                               |   | 19 |   |   | **59** |   |   | 56 |   |
| Realized                losses on sales of securities                                                      |   |                                                     | **-**     |                                               |   | - |   |   | **(2** | **)** |   | - |   |
| Foreclosed                assets, net                                                                      |   |                                                     | **-**     |                                               |   | (19 | ) |   | **-** |   |   | (53 | ) |
| Other                                                                                                      |   |                                                     | **18**    |                                               |   | 25 |   |   | **60** |   |   | 45 |   |
| **Total                Non-interest Income**                                                               |   |                                                     | **418**   |                                               |   | 321 |   |   | **1,286** |   |   | 862 |   |
|                                                                                                       |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| **Non-interest                Expenses**                                                                   |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| Salaries                and employee benefits                                                              |   |                                                     | **864**   |                                               |   | 803 |   |   | **2,589** |   |   | 2,367 |   |
| Occupancy                and equipment                                                                     |   |                                                     | **157**   |                                               |   | 146 |   |   | **464** |   |   | 419 |   |
| Professional                fees                                                                           |   |                                                     | **50**    |                                               |   | 31 |   |   | **133** |   |   | 155 |   |
| Advertising                and marketing                                                                   |   |                                                     | **61**    |                                               |   | 95 |   |   | **183** |   |   | 210 |   |
| Data                processing                                                                             |   |                                                     | **141**   |                                               |   | 117 |   |   | **376** |   |   | 323 |   |
| Telephone                and postage                                                                       |   |                                                     | **48**    |                                               |   | 38 |   |   | **145** |   |   | 140 |   |
| Other                                                                                                      |   |                                                     | **177**   |                                               |   | 132 |   |   | **470** |   |   | 371 |   |
| **Total                Non-interest Expenses**                                                             |   |                                                     | **1,498** |                                               |   | 1,362 |   |   | **4,360** |   |   | 3,985 |   |
|                                                                                                       |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| **Income                before Income Taxes**                                                              |   |                                                     | **399**   |                                               |   | 331 |   |   | **1,024** |   |   | 662 |   |
|                                                                                                       |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| **Income                Tax Expense**                                                                      |   |                                                     | **151**   |                                               |   | 122 |   |   | **391** |   |   | 244 |   |
|                                                                                                       |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| **Net                Income**                                                                              |   | **$**                                                    | **248**   |                                               | $      | 209 |   | **$** | **633** |   | $ | 418 |   |
|                                                                                                       |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| **Net                Income per common share- basic and diluted**                                          |   | **$**                                                    | **0.11**  |                                               | **$**  | 0.16 |   | **$** | **0.38** |   | **$** | 0.32 |   |
|                                                                                                       |   |                                                     |      |                                               |   |   |   |   |   |   |   |   |   |
| **Weighted                average number of common shares outstanding - basic and                diluted** |   |                                                     | **2,290** |                                               |   | 1,309 |   |   | **1,650** |   |   | 1,309 |   |

*See        notes to consolidated financial statements.*

----

***Hometown      Bancorp, Inc.***

**Consolidated      Statements of Stockholders’ Equity**

**Nine      Months Ended September 30, 2007 and 2006**

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

|                                                                                                                                                                       |   | **Common****Stock** |   | **Paid-In****Capital** |   | **Retained****Earnings** |   | **Unearned****ESOP****Shares** |      | **Accumulated****Other****Comprehensive****Loss** |   | **Total** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|------------------------|--------|--------------------------|--------|--------------------------------|-----------|---------------------------------------------------|--------|-----------|--------|
| **Balance                - December 31, 2005**                                                                                                                             |   | $                   | -      |                   | $      | -                        |   | $                              | 7,809     |                                              | $      | -         |   | $ | (45 | ) | $ | 7,764 |   |
|                                                                                                                                                                       |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   |   |   |
| Comprehensive                income:                                                                                                                                       |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   |   |   |
| Net                income                                                                                                                                                  |   |                | -      |                   |   | -                        |   |                           | 418       |                                              |   | -         |   |   | - |   |   | 418 |   |
| Change                in net unrealized losses on                securities available for sale,                net of reclassification adjustment                and taxes |   |                | -      |                   |   | -                        |   |                           | -         |                                              |   |      |   |   | (1 | ) |   | (1 | ) |
|                                                                                                                                                                            |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   |   |   |
| **Total                Comprehensive Income**                                                                                                                              |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   | 417 |   |
|                                                                                                                                                                       |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   |   |   |
| Capitalization                of Hometown Bancorp, Inc.                                                                                                                    |   |                | -      |                   |   | 150                      |   |                           | (150      | )                                                 |   | -         |   |   | - |   |   | - |   |
| Dividend                paid to capitalize Hometown Bancorp MHC                                                                                                            |   |                | -      |                   |   | -                        |   |                           | (150      | )                                                 |   | -         |   |   | - |   |   | (150 | ) |
|                                                                                                                                                                       |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   |   |   |
| **Balance                - September 30, 2006**                                                                                                                            |   | $                   | -      |                   | $      | 150                      |   | $                              | 7,927     |                                              | $      | -         |   | $ | (46 | ) | $ | 8,031 |   |
|                                                                                                                                                                       |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   |   |   |
|                                                                                                                                                                       |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   |   |   |
| **Balance                - December 31, 2006**                                                                                                                             |   | **$**               | **-**  |                   | **$**  | **150**                  |   | **$**                          | **8,372** |                                              | **$**  | **-**     |   | **$** | **(2** | **)** | **$** | **8,520** |   |
|                                                                                                                                                                       |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   |   |   |
| Comprehensive                income:                                                                                                                                       |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   |   |   |
| Net                income                                                                                                                                                  |   |                | **-**  |                   |   | **-**                    |   |                           | **633**   |                                              |   | **-**     |   |   | **-** |   |   | **633** |   |
| Change                in net unrealized losses on                securities available for sale,                net of reclassification adjustment                and taxes |   |                | **-**  |                   |   | **-**                    |   |                           | **-**     |                                              |   | **-**     |   |   | **3** |   |   | **3** |   |
| Unrecognized                losses and past service liability for the Directors’ Retirement Plan, net                of taxes of $9,000                              |   |                | **-**  |                   |   | **-**                    |   |                           | **-**     |                                              |   |      |   |   | **(14** | **)** |   | **(14** | **)** |
|                                                                                                                                                                       |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   |   |   |
| **Total                Comprehensive Income**                                                                                                                              |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   | **622** |   |
|                                                                                                                                                                       |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   |   |   |
| Shares                issued in public offering (2,380,500 shares)                                                                                                         |   |                | **24** |                   |   | **9,984**                |   |                           | **-**     |                                              |   | **-**     |   |   | **-** |   |   | **10,008** |   |
| Shares                purchased by ESOP                                                                                                                                    |   |                | **-**  |                   |   | **-**                    |   |                           | **-**     |                                              |   | **(933**  | **)**  |   | **-** |   |   | **(933** | **)** |
| ESOP                shares committed to be released (3,496 shares)                                                                                                         |   |                | **-**  |                   |   | **(2**                   | **)**  |                           | **-**     |                                              |   | **35**    |   |   | **-** |   |   | **33** |   |
|                                                                                                                                                                       |   |                |   |                   |   |                     |   |                           |      |                                              |   |      |   |   |   |   |   |   |   |
| **Balance                - September 30, 2007**                                                                                                                            |   | **$**               | **24** |                   | **$**  | **10,132**               |   | **$**                          | **9,005** |                                              | **$**  | **(898**  | **)**  | **$** | **(13** | **)** | **$** | **18,250** |   |

*See        notes to consolidated financial statements.*

----

***Hometown      Bancorp, Inc.***

**Consolidated      Statements of Cash Flows**

*(Unaudited)*

|                                                                                                                       |   | **Nine                  Months Ended September 30,** |        |
|----------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|-------------|
|                                                                                                                       |   | **2007**                                             |        | **2006** |   |
|                                                                                                                       |   | **(In                  Thousands)**                  |        |
| **Cash                  Flows from Operating Activities**                                                                  |   |                                                 |        |   |   |
| Net                  income                                                                                                |   | $                                                    | **633**     |   | $ | 418 |   |
| Adjustments                  to reconcile net income to net cash provided (used) by operating                  activities: |   |                                                 |        |   |   |   |   |
| Depreciation                  and amortization expense                                                                     |   |                                                 | **160**     |   |   | 143 |   |
| Provision                  for loan losses                                                                                 |   |                                                 | **160**     |   |   | 63 |   |
| Amortization                  of mortgage servicing rights                                                                 |   |                                                 | **116**     |   |   | 132 |   |
| Net                  amortization (accretion) of securities premiums and                  discounts                        |   |                                                 | **(26**     | **)** |   | (49 | ) |
| Net                  realized loss on sales of securities                                                                  |   |                                                 | **2**       |   |   | - |   |
| Net                  gain on sale of loans                                                                                 |   |                                                 | **(200**    | ) |   | (106 | ) |
| Loans                  originated for sale                                                                                 |   |                                                 | **(14,472** | **)** |   | (8,446 | ) |
| Proceeds                  from sale of loans                                                                               |   |                                                 | **14,665**  |   |   | 7,461 |   |
| ESOP                  expense                                                                                              |   |                                                 | **33**      |   |   | - |   |
| Increase                  in accrued interest receivable and other assets                                                  |   |                                                 | **(185**    | ) |   | (412 | ) |
| Increase                  in accrued interest payable and other liabilities                                                |   |                                                 | **313**     |   |   | 2,573 |   |
| **Net                  Cash Provided by Operating Activities**                                                             |   |                                                 | **1,199**   |   |   | 1,777 |   |
| **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                                                                |   |                                                 | **9,235**   |   |   | 246 |   |
| Proceeds                  from sales                                                                                       |   |                                                 | **8,997**   |   |   | - |   |
| Net                  increase in loans receivable                                                                          |   |                                                 | **(19,041** | **)** |   | (11,313 | ) |
| Net                  (increase) decrease in Federal Home Loan Bank stock                                                   |   |                                                 | **91**      |   |   | (130 | ) |
| Purchases                  of bank premises and equipment                                                                  |   |                                                 | **(403**    | **)** |   | (335 | ) |
| **Net                  Cash Used by Investing Activities**                                                                 |   |                                                 | **(10,121** | **)** |   | (21,436 | ) |
| **Cash                  Flows from Financing Activities**                                                                  |   |                                                 |        |   |   |   |   |
| Net                  increase in deposits                                                                                  |   |                                                 | **5,156**   |   |   | 15,403 |   |
| Net                  increase (decrease) in Federal Home Loan Bank advances                                                |   |                                                 | **(2,525**  | **)** |   | 2,625 |   |
| Decrease                  in advances from borrowers for taxes and insurance                                               |   |                                                 | **(232**    | **)** |   | (235 | ) |
| Net                  proceeds from common stock offering                                                                   |   |                                                 | **10,008**  |   |   | - |   |
| Purchase                  of shares for ESOP                                                                               |   |                                                 | **(933**    | **)** |   | - |   |
| Dividend                  paid to Hometown Bancorp MHC                                                                     |   |                                                 | **-**       |   |   | (150 | ) |
|                                                                                                                       |   |                                                 |        |   |   |   |   |
| **Net                  Cash Provided by Financing Activities**                                                             |   |                                                 | **11,474**  |   |   | 17,643 |   |
|                                                                                                                       |   |                                                 |        |   |   |   |   |
| **Net                  Increase (Decrease) in Cash and Cash Equivalents**                                                  |   |                                                 | **2,552**   |   |   | (2,016 | ) |
|                                                                                                                       |   |                                                 |        |   |   |   |   |
| **Cash                  and Cash Equivalents - Beginning**                                                                 |   |                                                 | **3,265**   |   |   | 5,802 |   |
| **Cash                  and Cash Equivalents - Ending**                                                                    |   | **$**                                                | **5,817**   |   | $ | 3,786 |   |
| **Supplementary                  Cash Flows Information**                                                                  |   |                                                 |        |   |   |   |   |
| Interest                  paid                                                                                             |   | **$**                                                | **2,452**   |   | $ | 1,265 |   |
|                                                                                                                       |   |                                                 |        |   |   |   |   |
| Income                  taxes paid                                                                                         |   | **$**                                                | **391**     |   | $ | 269 |   |

*See        notes to consolidated financial statements.*

----

***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**

| 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 September 30,** |        | **Nine                Months Ended September 30,** |   |
|-----------------------------------------------------------------------------------|--------|-----------------------------------------------------|-------------|----------------------------------------------------|--------|
|                                                                              |   | **2007**                                            |        | **2006**                                           |   | **2007** |   | **2006** |   |
|                                                                              |   | **(In                Thousands)**                   |        |
| Unrealized                holding gains (losses) on securities available for sale |   | **$**                                               | **5**       |                                               | $      | 19 |   | **$** | **5** |   | $ | (2 | ) |
| Reclassification                adjustment for losses included in net income      |   |                                                | **—** |                                               |   | **—** |   |   | **—** |   |   | **—** |   |
| **Change                in Net Unrealized Gains (Losses)**                        |   |                                                | **5**       |                                               |   | 19 |   |   | **5** |   |   | (2 | ) |
|                                                                              |   |                                                |        |                                               |   |   |   |   |   |   |   |   |   |
| Unrecognized                pension losses and past service liability             |   |                                                | **2**       |                                               |   | **—** |   |   | **(23** | **)** |   | **—** |   |
|                                                                              |   |                                                |        |                                               |   |   |   |   |   |   |   |   |   |
| Income                tax effect                                                  |   |                                                | **(3**      | **)**                                              |   | (8 | ) |   | **7** |   |   | 1 |   |
|                                                                              |   |                                                |        |                                               |   |   |   |   |   |   |   |   |   |
| **Net                of Tax Amount**                                              |   | **$**                                               | **4**       |                                               | $      | 11 |   | **$** | **(11** | **)** | $ | (1 | ) |

**Note      5 - Employee Stock Ownership Plan (“ESOP”)**

----

**Note      6 - Earnings Per Share**

*Earnings      per Share*

**Note      7 - Estimates**

**Note      8 - Recent Accounting Pronouncements **

**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 September 30, 2007 and December 31,      2006**

***Loans***

***Nonperforming      Assets.***

| (Dollars                in thousands)                                                                     |   | **September                30, 2007** |    | **December                31, 2006** |   |
|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|--------------------------------------|--------|
| Nonaccrual                loans:                                                                          |   |                                  |    |                                 |   |
| One-                to four-family residential real estate                                                |   | $                                     | 101     |                                 | $      | 199 |   |
| Construction                                                                                              |   |                                  | — |                                 |   | — |   |
| Multi-family                and commercial real estate                                                    |   |                                  | — |                                 |   | 191 |   |
| Land                                                                                                      |   |                                  | — |                                 |   | — |   |
| Commercial                                                                                                |   |                                  | — |                                 |   | 49 |   |
| Consumer                                                                                                  |   |                                  | — |                                 |   | — |   |
| Total                                                                                                     |   |                                  | 101     |                                 |   | 439 |   |
|                                                                                                      |   |                                  |    |                                 |   |   |   |
| Foreclosed                real estate                                                                     |   |                                  | — |                                 |   | — |   |
| Other                nonperforming assets                                                                 |   |                                  | — |                                 |   | — |   |
| Total                nonperforming assets                                                                 |   |                                  | 101     |                                 |   | 439 |   |
| Troubled                debt restructurings                                                               |   |                                  | — |                                 |   | — |   |
| Troubled                debt restructurings and total                nonperforming assets                 |   | $                                     | 101     |                                 | $      | 439 |   |
|                                                                                                      |   |                                  |    |                                 |   |   |   |
| Total                nonperforming loans to total loans                                                   |   |                                  | 0.09    | %                                    |   | 0.45 | % |
| Total                nonperforming loans to total assets                                                  |   |                                  | 0.08    |                                 |   | 0.37 |   |
| Total                nonperforming assets and troubled debt                restructurings to total assets |   |                                  | 0.08    |                                 |   | 0.37 |   |

----

***Securities.***

***Deposits***

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

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

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

***Financial      Highlights.***

***Net      Interest Income.***

----

|                                                                                                  |   | **Three                Months Ended September 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                                                                                                 |   | $                                                   | 111,822 |   | $ | 2,123 |   |   | 7.59 | % | $ | 90,437 |   | $ | 1,798 |   |   | 7.95 | % |
| Investment                securities                                                                  |   |                                                | 11,577  |   |   | 146 |   |   | 5.04 |   |   | 15,107 |   |   | 171 |   |   | 4.53 |   |
| Other                interest-earning assets                                                          |   |                                                | 2,909   |   |   | 48 |   |   | 6.60 |   |   | 2,750 |   |   | 38 |   |   | 5.53 |   |
| Total                interest-earning assets                                                          |   |                                                | 126,308 |   |   | 2,317 |   |   | 7.34 |   |   | 108,294 |   |   | 2,007 |   |   | 7.41 |   |
|                                                                                                  |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning                assets                                                            |   |                                                | 5,574   |   |   |   |   |   |   |   |   | 5,485 |   |   |   |   |   |   |   |
| Total                assets                                                                           |   | $                                                   | 131,882 |   |   |   |   |   |   |   | $ | 113,779 |   |   |   |   |   |   |   |
|                                                                                                  |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and stockholders’ equity:**                                        |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                                                          |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                demand deposits                                                       |   | $                                                   | 6,200   |   |   | 4 |   |   | 0.26 |   | $ | 6,461 |   |   | 4 |   |   | 0.25 |   |
| Money                market accounts                                                                  |   |                                                | 11,563  |   |   | 65 |   |   | 2.25 |   |   | 18,736 |   |   | 123 |   |   | 2.63 |   |
| Savings                accounts                                                                       |   |                                                | 13,286  |   |   | 17 |   |   | 0.51 |   |   | 14,867 |   |   | 19 |   |   | 0.51 |   |
| Certificates                of deposit                                                                |   |                                                | 61,255  |   |   | 666 |   |   | 4.35 |   |   | 45,627 |   |   | 443 |   |   | 3.88 |   |
| Borrowings                                                                                            |   |                                                | 1,545   |   |   | 20 |   |   | 5.18 |   |   | 2,016 |   |   | 27 |   |   | 5.36 |   |
| Total                interest-bearing liabilities                                                     |   |                                                | 93,849  |   |   | 772 |   |   | 3.29 |   |   | 87,707 |   |   | 616 |   |   | 2.81 |   |
|                                                                                                  |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing                demand deposits                                                   |   |                                                | 17,586  |   |   |   |   |   |   |   |   | 16,005 |   |   |   |   |   |   |   |
| Other                non-interest-bearing liabilities                                                 |   |                                                | 2,272   |   |   |   |   |   |   |   |   | 2,065 |   |   |   |   |   |   |   |
| Total                liabilities                                                                      |   |                                                | 113,707 |   |   |   |   |   |   |   |   | 105,777 |   |   |   |   |   |   |   |
|                                                                                                  |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’                equity                                                             |   |                                                | 18,175  |   |   |   |   |   |   |   |   | 8,002 |   |   |   |   |   |   |   |
| Total                liabilities and stockholders’ equity                                       |   | $                                                   | 131,882 |   |   |   |   |   |   |   | $ | 113,779 |   |   |   |   |   |   |   |
|                                                                                                  |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                                                                    |   |                                                |    |   | $ | 1,545 |   |   |   |   |   |   |   | $ | 1,391 |   |   |   |   |
| Interest                rate spread                                                                   |   |                                                |    |   |   |   |   |   | 4.05 |   |   |   |   |   |   |   |   | 4.60 |   |
| Net                interest margin                                                                    |   |                                                |    |   |   |   |   |   | 4.89 |   |   |   |   |   |   |   |   | 5.14 |   |
| Average                interest-earning assets to average                interest-bearing liabilities |   |                                                | 134.59  | % |   |   |   |   |   |   |   | 123.47 | % |   |   |   |   |   |   |

----

***Provision      for Loan Losses.***

***Non-Interest      Income.***

***Non-Interest      Expenses.***

----

***Income      Taxes***
*.      *

**Results      of Operations for the Nine Months Ended September 30, 2007 and      2006**

***Financial      Highlights.***

***Net      Interest Income.***

----

|                                                                                                      |   | **Nine                  Months Ended September 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                                                                                                     |   | $                                                    | 106,393 |   | $ | 6,036 |   |   | 7.56 | % | $ | 87,201 |   | $ | 4,917 |   |   | 7.52 | % |
| Investment                  securities                                                                    |   |                                                 | 11,846  |   |   | 440 |   |   | 4.95 |   |   | 11,734 |   |   | 381 |   |   | 4.33 |   |
| Other                  interest-earning assets                                                            |   |                                                 | 3,167   |   |   | 123 |   |   | 5.18 |   |   | 4,013 |   |   | 148 |   |   | 4.92 |   |
| Total                  interest-earning assets                                                            |   |                                                 | 121,406 |   |   | 6,599 |   |   | 7.25 |   |   | 102,948 |   |   | 5,446 |   |   | 7.05 |   |
|                                                                                                      |   |                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning                  assets                                                              |   |                                                 | 5,463   |   |   |   |   |   |   |   |   | 5,192 |   |   |   |   |   |   |   |
| Total                  assets                                                                             |   | $                                                    | 126,869 |   |   |   |   |   |   |   | $ | 108,140 |   |   |   |   |   |   |   |
|                                                                                                      |   |                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                  and stockholders’ equity:**                                          |   |                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                  liabilities:                                                            |   |                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                  demand deposits                                                         |   | $                                                    | 6,291   |   |   | 12 |   |   | 0.25 |   | $ | 6,646 |   |   | 12 |   |   | 0.24 |   |
| Money                  market accounts                                                                    |   |                                                 | 13,163  |   |   | 233 |   |   | 2.36 |   |   | 19,453 |   |   | 369 |   |   | 2.53 |   |
| Savings                  accounts                                                                         |   |                                                 | 13,393  |   |   | 50 |   |   | 0.50 |   |   | 15,038 |   |   | 56 |   |   | 0.50 |   |
| Certificates                  of deposit                                                                  |   |                                                 | 59,840  |   |   | 1,955 |   |   | 4.36 |   |   | 40,601 |   |   | 1,121 |   |   | 3.68 |   |
| Stock                  subscription funds                                                                 |   |                                                 | 532     |   |   | 3 |   |   | 0.75 |   |   | - |   |   | - |   |   | 0.00 |   |
| Borrowings                                                                                                |   |                                                 | 2,164   |   |   | 88 |   |   | 5.42 |   |   | 1,031 |   |   | 40 |   |   | 5.17 |   |
| Total                  interest-bearing liabilities                                                       |   |                                                 | 95,383  |   |   | 2,341 |   |   | 3.27 |   |   | 82,769 |   |   | 1,598 |   |   | 2.57 |   |
|                                                                                                      |   |                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing                  demand deposits                                                     |   |                                                 | 17,463  |   |   |   |   |   |   |   |   | 15,910 |   |   |   |   |   |   |   |
| Other                  non-interest-bearing liabilities                                                   |   |                                                 | 2,027   |   |   |   |   |   |   |   |   | 1,517 |   |   |   |   |   |   |   |
| Total                  liabilities                                                                        |   |                                                 | 114,873 |   |   |   |   |   |   |   |   | 100,196 |   |   |   |   |   |   |   |
|                                                                                                      |   |                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’                  equity                                                               |   |                                                 | 11,996  |   |   |   |   |   |   |   |   | 7,944 |   |   |   |   |   |   |   |
| Total                  liabilities and stockholders’ equity                                         |   | $                                                    | 126,869 |   |   |   |   |   |   |   | $ | 108,140 |   |   |   |   |   |   |   |
|                                                                                                      |   |                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  interest income                                                                      |   |                                                 |    |   | $ | 4,258 |   |   |   |   |   |   |   | $ | 3,848 |   |   |   |   |
| Interest                  rate spread                                                                     |   |                                                 |    |   |   |   |   |   | 3.98 |   |   |   |   |   |   |   |   | 4.48 |   |
| Net                  interest margin                                                                      |   |                                                 |    |   |   |   |   |   | 4.68 |   |   |   |   |   |   |   |   | 4.98 |   |
| Average                  interest-earning assets to average                  interest-bearing liabilities |   |                                                 | 127.28  | % |   |   |   |   |   |   |   | 124.38 | % |   |   |   |   |   |   |

***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) |
|--------|-----|-------------------------------------------------------------------------------|

|   | 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 |
|--------|------|-------------------------------------------|

----

----

**SIGNATURES**

|                                        |                                                                                             |                              |
|---------------------------------------------|--------------------------------------------------------------------------------------------------|-----------------------------------|
|                                        | HOMETOWN              BANCORP,              INC.                                                 |
|                                   |                                                                                        |                         |
| Dated:              November 13, 2007  | By:                                                                                    | /s/              Thomas F. Gibney |
|                                        | Thomas                F. Gibney                                                                  |
|                                        | President                and Chief Executive Officer(principal                executive officer) |
|                                        |                                                                                                                              |                                 |
|---------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
|                                        |                                                                                                                              |
| Dated:              November 13, 2007  | By:                                                                                                                     | /s/              Stephen W. Dederick |
|                                        | Stephen                W. Dederick                                                                                                |
|                                        | Vice              President and Chief                Financial Officer(principal                financial and accounting officer) |

----