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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-K
 þ
    
    Annual Report pursuant to Section 13 or 15 (d) of the Securities and
Exchange Act of 1934
 for the fiscal year ended December 31, 2006.
 o
    
    Transition Report pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
 for the transition period from  to .
 Commission File # 0-32605
 NEFFS BANCORP, INC.
  Pennsylvania
    
    23-2400383(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer Identification
Number)
 5629 Route 873, P.O. Box 10, Neffs, PA 18065-0010
 Registrants telephone number including area code: 610-767-3875
 None
 Common Stock, $1.00 par value
 o þ
 o þ
 þ o
 o
  o o þ
  o þ
 (1)
    (1)
    
    The aggregate dollar amount of the voting stock set forth equals the number of shares of the
registrants Common Stock outstanding, reduced by the amount of Common Stock held by executive
officers, directors, and stockholders owning in excess of 10% of the registrants Common Stock,
multiplied by the last sale price for the registrants Common Stock on June 30, 2006. The
information provided shall in no way be construed as an admission that the officers, directors, or
10% stockholders in the registrant may be deemed an affiliate of the registrant or that such person
is the beneficial owner of the shares reported as being held by him and any such inference is
hereby disclaimed. The information provided herein is included solely for the record keeping
purpose of the Securities and Exchange Commission.




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##### 



PagePart 1.Item 1
    
    Business
    
    
    1Item 1A
    
    Risk Factors
    
    
    6Item 1B
    
    Unresolved Staff Comments
    
    
    9Item 2
    
    Properties
    
    
    9Item 3
    
    Legal Proceedings
    
    
    9Item 4
    
    Submission of Matters to a Vote of Security Holders
    
    
    9Part II.Item 5
    
    Market for Registrants Common Equity and Related Stockholder Matters
    
    
    10Item 6
    
    Selected Financial Data
    
    
    12Item 7
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    12Item 7A
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    12Item 8
    
    Financial Statements and Supplementary Data
    
    
    13Item 9
    
    Changes In and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    13Item 9A
    
    Controls and Procedures
    
    
    13Item 9B
    
    Other Information
    
    
    13Part III.Item 10
    
    Directors and Executive Officers and Corporate Governance
    
    
    13Item 11
    
    Executive Compensation
    
    
    14Item 12
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    
    14Item 13
    
    Certain Relationships and Related Transactions, and Director Independence
    
    
    14Item 14
    
    Principal Accountant Fees and Services
    
    
    14Part IV.Item 15
    
    Exhibits and Financial Statement Schedules
    
    
    14Neffs Bancorp, Inc. Consolidated Financial ReportCertification of John J. RemaleyCertification of Kevin A. SchmidtCertification of John J. Remaley Pursuant to 18 U.S.C. Section 1350Certification of Kevin A. Schmidt Pursuant to 18 U.S.C. Section 1350




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Part I
 
 Item I. Business
 Forward-Looking Statements
    General
    1




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www.neffsnatl.com
 Service Area
  Retail and Commercial Banking Activities
     Competitive Business Conditions/Competitive Position
  2




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Supervision and Regulations
  The Corporation
   3




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The Bank
      4




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Recent Legislation
 USA Patriot Act.
 th
 §
    
    To conduct enhanced scrutiny of account relationships to guard against money laundering
and report any suspicious transactions;§
    
    To ascertain the identity of the nominal and beneficial owners of and the source of
funds deposited into, each account as needed to guard against money laundering and report
any suspicious transactions;§
    
    To ascertain for any foreign bank, the shares of which are not publicly traded, the
identity of the owners of the foreign bank, and the nature and extent of the ownership
interest of each such owners; and§
    
    To ascertain whether any foreign bank provides correspondent accounts to other foreign
banks and it so, the identity of those foreign banks and related due diligence information.
  §
    
    The development of internal policies, procedures, and controls;§
    
    The designation of a compliance officer;§
    
    An ongoing employee training program; and§
    
    An independent audit function to test the programs.
  Sarbanes-Oxley Act of 2002
  5




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National Monetary Policy
   Effect of Inflation
  Environmental Laws
  
 Item 1A. Risk Factors
 The Corporation is Subject to Interest Rate Risk
  6




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The Corporations Profitability Depends Significantly on Economic Conditions in the Commonwealth of
Pennsylvania
  The Corporations Allowance for Possible Loan Losses May be Insufficient
  The Corporation Operates in a Highly Competitive Industry and Market Area
   7




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The Corporation is Subject to Extensive Government Regulation and Supervision
  The Corporation May Not be Able to Attract and Retain Skilled People
  The Corporation is Subject to Environmental Liability Risk Associated with Lending Activities
  The Corporation Continually Encounters Technological Change
  The Corporations ability to pay dividends depends primarily on dividends from its banking
subsidiary, which is subject to regulatory limits.
  8




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Item 1B. Unresolved Staff Comments
  
 Item 2. Properties
 Main Office
  1 2)
 
 Item 3. Legal Proceedings
  
 Item 4. Submission of Matters to a Vote of Security Holders
  9




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Part II.
 
 Item 5. Market For Registrants Common Equity and Related Stockholder Matters
   Sales PricesHigh
    
    LowQuarter Ended:March 31, 2006
    
    $
    245.00
    
    
    $
    245.00June 30, 2006
    
    
    253.00
    
    
    
    253.00September 30, 2006
    
    
    253.00
    
    
    
    253.00December 31, 2006
    
    
    256.00
    
    
    
    256.00March 31, 2005
    
    $
    230.00
    
    
    $
    230.00June 30, 2005
    
    
    235.00
    
    
    
    230.00September 30, 2005
    
    
    236.00
    
    
    
    235.00December 31, 2005
    
    
    243.00
    
    
    
    240.00
  Dividends and Dividend History
 th th
     10




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Shareholder Return Performance Graph
  Neffs
Bancorp, Inc.
 
 Period
EndingIndex
    
    
    12/31/01
    
    
    12/31/02
    
    
    12/31/03
    
    
    12/31/04
    
    
    12/31/05
    
    
    12/31/06Neffs Bancrop, Inc.
    
    
    
    100.00
    
    
    
    
    106.13
    
    
    
    
    121.87
    
    
    
    
    129.29
    
    
    
    
    137.82
    
    
    
    
    143.75NASDAQ Composite
    
    
    
    100.00
    
    
    
    
    68.76
    
    
    
    
    103.67
    
    
    
    
    113.16
    
    
    
    
    115.57
    
    
    
    
    127.58Neffs Bancorp 2005 Per Group*
    
    
    
    100.00
    
    
    
    
    116.55
    
    
    
    
    183.57
    
    
    
    
    199.28
    
    
    
    
    195.84
    
    
    
    
    208.30Neffs Bancorp 2006 Peer Group**
    
    
    
    100.00
    
    
    
    
    108.55
    
    
    
    
    133.03
    
    
    
    
    136.44
    
    
    
    
    143.93
    
    
    
    
    140.48
 *
    
    The Neffs Bancorp 2005 Peer Group Index conisists of Codorus Valley Bvancorp, Inc. Fidelity D&D
Bancorp, Inc., First Chester County Corporation, Norwood Financial Corporation, Penseco Financial
Services Corp., Peoples, First Inc., *acquired 6/14/04), and Premier Bancorp, Inc. (acquired
8/1/03).**
    
    The Neffs Bancorp 2006 Peer Group Index consists of American Bank Inc., First Star Bancorp Inc.,
East Penn Financial Corp., Mauch Chunk Financial Corp., MNB corp., New Tripoli Bancorp, Inc., JINB
Bancorp, Inc.
 Source: SNL Financial LC, Charlottesville, VA
    
    (434) 977-1600© 2007
    
    www.snl.com
 11




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Item 6. Selected Financial Data
  
 Item 7.
    
    Managements Discussion and Analysis of Financial Condition and
Results of Operations
  
 Item 7A. Quantitative and Qualitative Disclosures about Market Risk
     12




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2006
    
    2005Change in
    
    
    
    
    
    Change inNet Interest
    
    Percentage
    
    Net Interest
    
    Percentage(dollars in thousands)
    
    Income
    
    Change
    
    Income
    
    ChangePolicy Limit
    
    
    
    
    
    
    ±5.0
    %
    
    
    
    
    
    
    ±5.0
    %Down 200 basis points
    
    
    ($6
    )
    
    
    (0.1
    %)
    
    
    ($114
    )
    
    
    (1.7
    %)Down 100 basis points
    
    
    19
    
    
    
    0.3
    %
    
    
    (36
    )
    
    
    (0.5
    %)Up 100 basis points
    
    
    2
    
    
    
    0.0
    %
    
    
    44
    
    
    
    0.6
    %Up 200 basis points
    
    
    (7
    )
    
    
    (0.1
    %)
    
    
    78
    
    
    
    1.1
    %
 
 Item 8. Financial Statements and Supplementary Data
  
 Item 9.
    
    Changes In and Disagreements with Accountants on Accounting and
Financial Disclosure
  
 Item 9A. Controls and Procedures
 Disclosure Controls and Procedures
  Internal Controls Over Financial Reporting
  
 Item 9B. Other Information
  
 Part III.
 
 Item 10. Directors and Executive Officers and Corporate Governance
  13




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Item 11. Executive Compensation
  
 Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management
and related Stockholder Matters.
   
 Item 13. Certain Relationships and Related Transactions, and Director Independence
  
 Item 14. Principal Accountant Fees and Services
  
 Part IV
 
 Item 15. Exhibits and Financial Statement Schedules
 (a)
    (1)
    Financial Statements are incorporated by reference from the 2006 Annual
Report.
 Report of Independent Registered Public Accounting Firm

Consolidated Statements of Financial Condition

Consolidated Statements of IncomeConsolidated Statements of Stockholders EquityConsolidated Statements of Cash Flows
Notes to Consolidated Financial Statements(2)
    
    Financial Statements Schedules (This item is omitted since
information required is either not applicable or is included in the footnotes to
the Annual Financial Statements.)(3)
    
    The following exhibits are filed as part of this Form 10-K, and
this list includes the Exhibits Index.
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No.
    
    Description3 (i)
    
    Amended and Restated Articles of Incorporation of Neffs Bancorp, Inc.
(Incorporated by reference to Exhibit 3(i) of the Registration Statement on Form
10 dated and as filed with Commission on April 27, 2001.)3 (ii)
    
    Amended and Restated Bylaws of Neffs Bancorp, Inc. (Incorporated by reference to
Exhibit 99.1 of the Current Report on Form 8-K dated and as filed with the
Commission on February 27, 2002.)11
    
    Statement re:  computation of per share earnings.  See Consolidated Statements
of Income and Note 1 to the Consolidated Financial Statements included in the
Annual Report set forth as Exhibit 13 hereto.13
    
    Excerpts from Neffs Bancorp, Inc. Annual Report to Stockholders.14
    
    Code of Ethics (incorporated by reference to Exhibit 14 to the Form 10-K of the
registrant , filed on April 1, 2002.)21
    
    Subsidiary of the Registrant (incorporated by reference to Exhibit 21 to the
Form 10-K of the registrant filed on April 1, 2002.)31.1
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)31.2
    
    Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)32.1
    
    Certification of Chief Executive Officer pursuant to Section 1350 of the
Sarbanes-Oxley Act of 2002.32.2
    
    Certification of Principal Financial Officer pursuant to Section 1350 of the
Sarbanes-Oxley Act of 2002.
 (b)
    
    Exhibits required by item 601 of Regulation SK.See Item 15(a) (3) above.
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Signatures
  Neffs Bancorp, Inc.Date:  March 26, 2007
    By:
    /s/ John J. RemaleyJohn J. RemaleyPresident and
Chief Executive Officer  Signatures
    
    Title
    
    Date/s/ John J. Remaley

John J. Remaley
    
    President, Chief Executive Officer
and Director
    
    March 26, 2007/s/Herman P. Snyder
    
    Vice President and Director
    
    March 26, 2007Herman P. Snyder/s/Robert B. Heintzelman
    
    Director
    
    March 26, 2007Robert B. Heintzelman/s/Mary Ann Wagner
    
    Director
    
    March 26, 2007Mary Ann Wagner/s/John F. Simock
    
    Director
    
    March 26, 2007John F. Simock/s/Kevin A. Schmidt
    
    Treasurer and Director
    
    March 26, 2007Kevin A. Schmidt/s/John F. Sharkey, Jr.
    
    Director
    
    March 26, 2007John F. Sharkey, Jr./s/Duane A. Schleicher
    
    Director
    
    March 26, 2007Duane A. Schleicher
 16