**UNITED      STATES**

**SECURITIES      AND EXCHANGE      COMMISSION**

**Washington,D.C. 20549**

**FORM      10-Q**

| For                  the quarterly period ended                                       | June                  30, 2007                                              |
|---------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
|                                                                                  |                                                                        |   |   |   |
| Commission                  File Number:                                              | 0-27672                                                                     |
|                                                                                  |                                                                        |   |   |   |
|                                                                                  | NORTH                  CENTRAL BANCSHARES, INC.                             |   |
|                                                                                  | (Exact                  name of registrant as specified in its charter)     |   |
|                                                                                  |                                                                        |   |   |   |
| Iowa                                                                             |                                                                        | 42-1449849  |
| (State                  or other jurisdiction of incorporation or organization)  |                                                                        | (I.R.S.                  Employer Identification No.)  |
|                                                                                  |                                                                        |   |   |   |
| 825                  Central Avenue,   Fort Dodge, Iowa           |                                                                        |     50501  |
| (Address                  of principal executive offices)                        |                                                                        | (Zip                  Code)  |
|                                                                                  |                                                                        |   |   |   |
|                                                                                  | 515-576-7531                                                                |   |
|                                                                                  | (Registrant’s                  telephone number, including area code) |   |

| Large                accelerated filer  ̈ | Accelerated                filer   ̈ | Non-accelerated                filer þ |
|-----------------------------------------------|----------------------------------------------------|---------------------------------------------|

| Class                                       | Outstanding                at July 31, 2007 |
|---------------------------------------------|---------------------------------------------|
| Common                Stock, $.01 par value | 1,353,748                                   |

----

| Part                  I.  Financial Information |
|-----------------------------------------------------------|
|                                                      |   |
|                                                      | Item                  1.  Consolidated Condensed  Financial Statements                  (Unaudited) |
|                                                      |   |
|                                                      | Consolidated                  Condensed Statements of Financial Condition at June 30, 2007 and                  December                  31, 2006 |
|                                                      |   |
|                                                      | Consolidated                  Condensed Statements of Income for the Three and Six Months Ended                  June 30,                  2007 and 2006 |
|                                                      |   |
|                                                      | Consolidated                  Condensed Statements of Cash Flows for the Six Months Ended June                  30, 2007                  and 2006 |
|                                                      |   |
|                                                      | Notes                  to Consolidated Condensed Financial Statements |
|                                                      |   |
|                                                      | Item                  2.  Management's Discussion and Analysis of Financial Condition                  and Results of Operations |
|                                                      |   |
|                                                      | Item                  3.  Quantitative and Qualitative Disclosures About Market                  Risk |
|                                                      |   |
|                                                      | Item                  4.  Controls and Procedures |
|                                                      |   |
| Part                  II.  Other Information    |
|                                                      |   |
|                                                      | Item                  1.    Legal Proceedings |
|                                                      |   |
|                                                      | Item                  1A. Risk Factors |
|                                                      |   |
|                                                      | 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 |
|                                                      |   |
|                                                      | Signatures |

----

**PART      I.  FINANCIAL INFORMATION**

**ITEM      1.  CONSOLIDATED CONDENSED FINANCIAL STATEMENTS      (Unaudited)**

**NORTH      CENTRAL BANCSHARES, INC. AND SUBSIDIARIES**

**CONSOLIDATED      CONDENSED STATEMENTS OF FINANCIAL CONDITION**

|                                                    |   | **June                30,** |        |   | **December                31,** |   |
|---------------------------------------------------------|--------|-----------------------------|-------------|--------|---------------------------------|--------|
| **ASSETS**                                              |   | **2007**                    |        |   | **2006**                        |   |
|                                                    |   |                        |        |   |                            |   |
| Cash                and due from banks:Interest-bearing |   | $                           | 8,627,431   |   |                            | $      | 12,430,709 |   |
| Noninterest-bearing                                     |   |                        | 7,046,493   |   |                            |   | 7,591,567 |   |
| Securities                available-for-sale            |   |                        | 13,684,062  |   |                            |   | 14,554,052 |   |
| Federal                Home Loan Bank stock, at cost    |   |                        | 5,689,500   |   |                            |   | 5,476,000 |   |
| Loans                receivable, net                    |   |                        | 468,506,629 |   |                            |   | 449,043,259 |   |
| Loans                held for sale                      |   |                        | 1,817,500   |   |                            |   | 583,700 |   |
| Accrued                interest receivable              |   |                        | 2,353,104   |   |                            |   | 2,262,273 |   |
| Foreclosed                real estate                   |   |                        | 547,898     |   |                            |   | 468,117 |   |
| Premises                and equipment, net              |   |                        | 12,552,143  |   |                            |   | 12,633,711 |   |
| Rental                real estate                       |   |                        | 2,535,815   |   |                            |   | 2,583,492 |   |
| Title                plant                              |   |                        | 671,704     |   |                            |   | 671,704 |   |
| Goodwill                                                |   |                        | 4,946,960   |   |                            |   | 4,946,960 |   |
| Deferred                taxes                           |   |                        | 1,010,190   |   |                            |   | 1,027,680 |   |
| Prepaid                expenses and other assets        |   |                        | 950,547     |   |                            |   | 1,241,504 |   |
|  **Total                assets**                   |   | $                           | 530,939,976 |   |                            | $      | 515,514,728 |   |

**LIABILITIES      AND STOCKHOLDERS' EQUITY**

| **LIABILITIES**                                                                                                                                                                                                                                                                                          |   |   |        |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Deposits                                                                                                                                                                                                                                                                                                 |   | $      | 371,204,707 |   |   | $      | 360,329,810 |   |
| Borrowed                funds                                                                                                                                                                                                                                                                            |   |   | 112,393,319 |   |   |   | 107,907,563 |   |
| Advances                from borrowers for                taxes and insurance                                                                                                                                                                                                                            |   |   | 2,103,754   |   |   |   | 2,050,991 |   |
| Dividends                payable                                                                                                                                                                                                                                                                         |   |   | 476,963     |   |   |   | 455,616 |   |
| Accrued                expenses and other                liabilities                                                                                                                                                                                                                                     |   |   | 3,036,953   |   |   |   | 2,578,799 |   |
|                                                                                                                                                                                                                                                                                                     |   |   |        |   |   |   |   |   |
|    **Total                liabilities**                                                                                                                                                                                                                                                   |   |   | 489,215,696 |   |   |   | 473,322,779 |   |
|                                                                                                                                                                                                                                                                                                     |   |   |        |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                     |   |   |        |   |   |   |   |   |
| COMMITMENTS                AND CONTINGENCIES                                                                                                                                                                                                                                                             |   |   |        |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                     |   |   |        |   |   |   |   |   |
| **STOCKHOLDERS'                EQUITY**                                                                                                                                                                                                                                                                  |   |   |        |   |   |   |   |   |
| Preferred                stock ($.01 par                value, authorized    3,000,000                shares; none issued and outstanding)                                                                                                                                           |   |   | -           |   |   |   | - |   |
| Common                stock ($.01 par value,                authorized 15,500,000          shares;                issued and outstanding at June 30, 2007,  1,364,653;                at                December 31, 2006, 1,380,653 shares) |   |   | 13,675      |   |   |   | 13,807 |   |
| Additional                paid-in                capital                                                                                                                                                                                                                                                 |   |   | 17,841,712  |   |   |   | 17,723,697 |   |
| Retained                earnings,                substantially restricted                                                                                                                                                                                                                                |   |   | 24,485,870  |   |   |   | 24,358,445 |   |
| Accumulated                other                comprehensive gain                                                                                                                                                                                                                                       |   |   | 109,023     |   |   |   | 96,000 |   |
|         Treasury                stock, at cost                                                                                                                                                                                                                   |   |   | (726,000    | )      |   |   | - |   |
| **Total                stockholders'                equity**                                                                                                                                                                                                                                             |   |   | 41,724,280  |   |   |   | 42,191,949 |   |
|                                                                                                                                                                                                                                                                                                     |   |   |        |   |   |   |   |   |
| **Total                liabilities and stockholders' equity**                                                                                                                                                                                                                                            |   | $      | 530,939,976 |   |   | $      | 515,514,728 |   |
|                                                                                                                                                                                                                                                                                                     |   |

----

**NORTH      CENTRAL BANCSHARES, INC. AND SUBSIDIARIES**

**CONSOLIDATED      CONDENSED STATEMENTS OF INCOME**

|                                                                              |   | **Three                Months Ended** |      |   | **Six                Months Ended** |   |
|-----------------------------------------------------------------------------------|--------|---------------------------------------|-----------|--------|-------------------------------------|--------|
|                                                                              |   | **June                30,**           |      |   | **June                30,**         |   |
|                                                                              |   | **2007**                              |      |   | **2006**                            |   |   | **2007** |   |   | **2006** |   |
| Interest                income:                                                   |   |                                  |      |   |                                |   |   |   |   |   |   |   |
| Loans                receivable                                                   |   | $                                     | 7,542,094 |   |                                | $      | 6,695,177 |   |   | $ | 14,677,723 |   |   | $ | 13,225,074 |   |
| Securities                and cash                deposits                        |   |                                  | 339,591   |   |                                |   | 255,741 |   |   |   | 756,933 |   |   |   | 500,934 |   |
|                                                                              |   |                                  | 7,881,685 |   |                                |   | 6,950,918 |   |   |   | 15,434,656 |   |   |   | 13,726,008 |   |
| Interest                expense:                                                  |   |                                  |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                          |   |                                  | 3,195,558 |   |                                |   | 2,368,459 |   |   |   | 6,219,966 |   |   |   | 4,587,893 |   |
| Borrowed                funds                                                     |   |                                  | 1,361,041 |   |                                |   | 1,294,084 |   |   |   | 2,614,346 |   |   |   | 2,526,522 |   |
|                                                                              |   |                                  | 4,556,599 |   |                                |   | 3,662,543 |   |   |   | 8,834,312 |   |   |   | 7,114,415 |   |
|  Net                interest income                                          |   |                                  | 3,325,086 |   |                                |   | 3,288,375 |   |   |   | 6,600,344 |   |   |   | 6,611,593 |   |
|  Provision                for loan losses                                    |   |                                  | 60,000    |   |                                |   | 60,000 |   |   |   | 90,000 |   |   |   | 120,000 |   |
| Net                interest income after provision for loan                losses |   |                                  | 3,265,086 |   |                                |   | 3,228,375 |   |   |   | 6,510,344 |   |   |   | 6,491,593 |   |
|  Noninterest                income:                                          |   |                                  |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Fees                and service                charges                            |   |                                  | 1,077,402 |   |                                |   | 1,042,051 |   |   |   | 2,084,525 |   |   |   | 2,301,101 |   |
| Abstract                fees                                                      |   |                                  | 266,420   |   |                                |   | 350,659 |   |   |   | 504,257 |   |   |   | 683,533 |   |
| Mortgage                banking                income                             |   |                                  | 112,233   |   |                                |   | 59,696 |   |   |   | 169,298 |   |   |   | 97,311 |   |
| Other                income                                                       |   |                                  | 300,031   |   |                                |   | 319,738 |   |   |   | 639,551 |   |   |   | 615,744 |   |
|     Total                noninterest income                   |   |                                  | 1,756,086 |   |                                |   | 1,772,144 |   |   |   | 3,397,631 |   |   |   | 3,697,689 |   |
|                                                                              |   |                                  |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest                expense:                                               |   |                                  |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Compensation                and employee                benefits                  |   |                                  | 1,956,151 |   |                                |   | 1,757,308 |   |   |   | 3,911,091 |   |   |   | 3,639,467 |   |
| Premises                and                equipment                              |   |                                  | 389,027   |   |                                |   | 358,505 |   |   |   | 776,027 |   |   |   | 748,465 |   |
| Data                processing                                                    |   |                                  | 181,172   |   |                                |   | 163,919 |   |   |   | 348,247 |   |   |   | 325,692 |   |
| Other                expenses                                                     |   |                                  | 1,015,831 |   |                                |   | 938,866 |   |   |   | 1,938,054 |   |   |   | 1,881,031 |   |
|     Total                noninterest expense                  |   |                                  | 3,542,181 |   |                                |   | 3,218,598 |   |   |   | 6,973,419 |   |   |   | 6,594,655 |   |
|                                                                              |   |                                  |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Income                before income taxes                                         |   |                                  | 1,478,991 |   |                                |   | 1,781,921 |   |   |   | 2,934,556 |   |   |   | 3,594,627 |   |
|                                                                              |   |                                  |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Provision                for income taxes                                         |   |                                  | 443,500   |   |                                |   | 525,250 |   |   |   | 864,800 |   |   |   | 1,097,000 |   |
|                                                                              |   |                                  |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                         |   | $                                     | 1,035,491 |   |                                | $      | 1,256,671 |   |   | $ | 2,069,756 |   |   | $ | 2,497,627 |   |
|                                                                              |   |                                  |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Basic                earnings per common share                                    |   | $                                     | 0.76      |   |                                | $      | 0.88 |   |   | $ | 1.51 |   |   | $ | 1.72 |   |
|                                                                              |   |                                  |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                earnings per common share                                  |   | $                                     | 0.75      |   |                                | $      | 0.87 |   |   | $ | 1.50 |   |   | $ | 1.69 |   |
|                                                                              |   |                                  |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Dividends                declared per common share                                |   | $                                     | 0.35      |   |                                | $      | 0.33 |   |   | $ | 0.70 |   |   | $ | 0.66 |   |
|                                                                              |   |                                  |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                income                                               |   | $                                     | 953,620   |   |                                | $      | 1,126,499 |   |   | $ | 2,082,779 |   |   | $ | 2,436,691 |   |
|                                                                              |   |                                  |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |

----

**NORTH      CENTRAL BANCSHARES, INC. AND SUBSIDIARIES**

**CONSOLIDATED      CONDENSED STATEMENTS OF CASH FLOWS**

|                                                                                                                                                   |   | **Six                Months Ended****June                30,** |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|-------------|
|                                                                                                                                                   |   | **2007**                                                       |        |   | **2006** |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                                                                                                |   |                                                           |        |   |   |   |
| Net                income                                                                                                                              |   | $                                                              | 2,069,756   |   |   | $ | 2,497,627 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities:                                        |   |                                                           |        |   |   |   |   |   |
| Provision                for loan                losses                                                                                                |   |                                                           | 90,000      |   |   |   | 120,000 |   |
| Depreciation                                                                                                                                           |   |                                                           | 406,388     |   |   |   | 361,681 |   |
| Amortization                and                accretion                                                                                               |   |                                                           | 136,396     |   |   |   | 229,627 |   |
| Deferred                taxes                                                                                                                          |   |                                                           | 9,664       |   |   |   | (155,087 | ) |
| Effect                of contribution to                employee stock ownership plan                                                                  |   |                                                           | -           |   |   |   | 59,958 |   |
| Stock-based                compensation                                                                                                                |   |                                                           | 40,747      |   |   |   | 87,741 |   |
| Net                tax benefit related to                stock-based compensation                                                                      |   |                                                           | (89,126     | ) |   |   | (136,718 | ) |
| (Gain)                on sale of foreclosed                real estate and loans, net                                                                  |   |                                                           | (174,068    | ) |   |   | (130,871 | ) |
| Write-down                of other real estate                owned                                                                                    |   |                                                           | 22,000      |   |   |   | 82,035 |   |
| Loss                on sale or disposal of                equipment and other assets, net                                                              |   |                                                           | 632         |   |   |   | 35,348 |   |
| Proceeds                from sales of loans                held-for-sale                                                                               |   |                                                           | 13,794,103  |   |   |   | 7,300,697 |   |
| Originations                of loans                held-for-sale                                                                                      |   |                                                           | (14,858,605 | ) |   |   | (7,400,698 | ) |
| Change                in assets and                liabilities:                                                                                        |   |                                                           |        |   |   |   |   |   |
|     Accrued                interest receivable                                                                                     |   |                                                           | (90,831     | ) |   |   | 12,458 |   |
|     Prepaid                expenses and other assets                                                                               |   |                                                           | 272,700     |   |   |   | 10,932 |   |
|     Accrued                expenses and other liabilities                                                                          |   |                                                           | 365,537     |   |   |   | 418,760 |   |
|       Net                cash provided by operating activities                                                           |   |                                                           | 1,995,293   |   |   |   | 3,393,490 |   |
|                                                                                                                                                   |   |                                                           |        |   |   |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES**                                                                                                |   |                                                           |        |   |   |   |   |   |
| Net                change in                loans                                                                                                      |   |                                                           | 11,432,449  |   |   |   | 11,426,680 |   |
| Purchase                of                loans                                                                                                        |   |                                                           | (31,269,271 | ) |   |   | (21,335,304 | ) |
| Purchase                of securities                available-for-sale                                                                                |   |                                                           | -           |   |   |   | (1,494,666 | ) |
| Proceeds                from maturities and                calls of securities available-for-sale                                                      |   |                                                           | 886,658     |   |   |   | 1,084,451 |   |
| Proceeds                from redemption of                Federal Home Loan Bank stock                                                                 |   |                                                           | 367,800     |   |   |   | 258,600 |   |
| Purchase                of Federal Home Loan                Bank stock                                                                                 |   |                                                           | (581,300    | ) |   |   | (755,600 | ) |
| Purchase                of premises, equipment                and rental real estate                                                                   |   |                                                           | (278,080    | ) |   |   | (1,553,499 | ) |
|        Proceeds                from sale of premises and equipment                                                  |   |                                                           | 305         |   |   |   | 7,954 |   |
| Net                proceeds from sale of                foreclosed real estate                                                                         |   |                                                           | 54,226      |   |   |   | 416,968 |   |
| Other                                                                                                                                                  |   |                                                           | -           |   |   |   | 242,043 |   |
|                 Net                cash (used in) investing activities |   |                                                           | (19,387,213 | ) |   |   | (11,702,373 | ) |
|                                                                                                                                                   |   |                                                           |        |   |   |   |   |   |
|                                                                                                                                                   |   |                                                           |        |   |   |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES**                                                                                                |   |                                                           |        |   |   |   |   |   |
| Net                increase (decrease) in                deposits                                                                                      |   |                                                           | 10,874,897  |   |   |   | 1,575,117 |   |
| Net                increase (decrease) in                advances from borrowers for taxes and insurance                                               |   |                                                           | 52,763      |   |   |   | 44,420 |   |
|       Proceeds                from other borrowed funds                                                                  |   |                                                           | 17,000,000  |   |   |   | 18,000,000 |   |
| Payments                of other borrowed                funds                                                                                         |   |                                                           | (12,514,244 | ) |   |   | (7,018,059 | ) |
| Purchase                of common stock for                retirement                                                                                  |   |                                                           | (1,776,740  | ) |   |   | (3,975,164 | ) |
| Proceeds                from issuance of                common stock                                                                                   |   |                                                           | 251,010     |   |   |   | 332,440 |   |
| Net                tax benefit related to                stock-based compensation                                                                      |   |                                                           | 89,126      |   |   |   | 136,718 |   |
| Dividends                paid                                                                                                                          |   |                                                           | (933,244    | ) |   |   | (911,747 | ) |
| Net                cash provided by financing activities                                                                                               |   |                                                           | 13,043,568  |   |   |   | 8,183,725 |   |
| Net                (decrease) in                cash                                                                                                   |   |                                                           | (4,348,352  | ) |   |   | (125,158 | ) |
|                                                                                                                                                   |   |                                                           |        |   |   |   |   |   |
| **CASH                AND DUE FROM BANKS**                                                                                                             |   |                                                           |        |   |   |   |   |   |
| Beginning                                                                                                                                              |   |                                                           | 20,022,276  |   |   |   | 8,639,672 |   |
| Ending                                                                                                                                                 |   | $                                                              | 15,673,924  |   |   | $ | 8,514,514 |   |
|                                                                                                                                                   |   |                                                           |        |   |   |   |   |   |

----

**CONSOLIDATED            CONDENSED STATEMENTS OF CASH FLOWS-**

**SUPPLEMENTAL          DISCLOSURES OF CASH FLOW INFORMATION**

| Interest                paid to                depositors                                                                               | $      | 5,947,776 |   |   | $                   4,406,550           |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------------------------------------------------------|--------|
| Interest                paid on                borrowings                                                                               |   | 2,614,346 |   |   | 2,526,564                                              |   |
| Income                taxes                                                                                                             |   | 655,064   |   |   | 959,417                                                |   |
|                                                                                                                                    |   |      |   |   |                                                   |   |
| **SUPPLEMENTAL                DISCLOSURE OF NONCASH OPERATING,****   INVESTING                AND FINANCING ACTIVITIES** |   |      |   |   |                                                   |   |
| Transfers                from loans to other real estate owned                                                                          | $      | 151,237   |   |   | $                     819,866 |   |
| Cumulative                effect of adoption of FIN 48                                                                                  |   | 200,000   |   |   | -                                                      |   |
|                                                                                                                                    |   |      |   |   |                                                   |   |
| See                Notes to Consolidated Condensed Financial Statements.                                                                |   |      |   |   |                                                   |   |
|                                                                                                                                    |   |      |   |   |                                                   |   |

----

**NORTH      CENTRAL BANCSHARES, INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)**

**1.           SIGNIFICANT      ACCOUNTING POLICIES**

**2.           EARNINGS      PER SHARE**

*Employers' Accounting for Employee Stock      Ownership Plans,*

**3.           DIVIDENDS**

**4.           GOODWILL**

*Goodwill and Other Intangible Assets*

**5.           OPERATING      SEGMENTS**

|                                                                                         |   | **Three                  Months Ended June 30, 2007** |        |   | **Six                  Months Ended June 30, 2007** |   |
|----------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|-------------|--------|-----------------------------------------------------|--------|
|                                                                                         |   | **Traditional**                                       |        |   |                                                |   |   |   |   |   | **Traditional** |   |   |   |   |   |   |   |
|                                                                                         |   | **Banking**                                           |        |   | **All                  Others**                     |   |   | **Total** |   |   | **Banking** |   |   | **All                  Others** |   |   | **Total** |   |
|                                                                                         |   |                                                  |        |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  income                                                             |   | $                                                     | 7,881,685   |   |                                                | $      | - |   |   | $ | 7,881,685 |   |   | $ | 15,434,656 |   |   | $ | - |   |   | $ | 15,434,656 |   |
| Interest                  expense                                                            |   |                                                  | 4,556,599   |   |                                                |   | - |   |   |   | 4,556,599 |   |   |   | 8,834,312 |   |   |   | - |   |   |   | 8,834,312 |   |
| **Net                  interest income**                                                     |   |                                                  | 3,325,086   |   |                                                |   | - |   |   |   | 3,325,086 |   |   |   | 6,600,344 |   |   |   | - |   |   |   | 6,600,344 |   |
| Provision                  for loan losses                                                   |   |                                                  | 60,000      |   |                                                |   | - |   |   |   | 60,000 |   |   |   | 90,000 |   |   |   | - |   |   |   | 90,000 |   |
| **Net                  interest income after****Provision                  for loan losses** |   |                                                  | 3,265,086   |   |                                                |   | - |   |   |   | 3,265,086 |   |   |   | 6,510,344 |   |   |   | - |   |   |   | 6,510,344 |   |
| Noninterest                  income                                                          |   |                                                  | 1,232,774   |   |                                                |   | 523,312 |   |   |   | 1,756,086 |   |   |   | 2,348,136 |   |   |   | 1,049,495 |   |   |   | 3,397,631 |   |
| Noninterest                  expense                                                         |   |                                                  | 3,248,449   |   |                                                |   | 293,732 |   |   |   | 3,542,181 |   |   |   | 6,343,558 |   |   |   | 629,861 |   |   |   | 6,973,419 |   |
| **Income                  before income taxes**                                              |   |                                                  | 1,249,411   |   |                                                |   | 229,580 |   |   |   | 1,478,991 |   |   |   | 2,514,922 |   |   |   | 419,634 |   |   |   | 2,934,556 |   |
| Provision                  for income taxes                                                  |   |                                                  | 426,300     |   |                                                |   | 17,200 |   |   |   | 443,500 |   |   |   | 845,900 |   |   |   | 18,900 |   |   |   | 864,800 |   |
| **Net                  income**                                                              |   | $                                                     | 823,111     |   |                                                | $      | 212,380 |   |   | $ | 1,035,491 |   |   | $ | 1,669,022 |   |   | $ | 400,734 |   |   | $ | 2,069,756 |   |
| Inter-segment                  revenue (expense)                                             |   | $                                                     | 227,064     |   |                                                | $      | (227,064 | ) |   | $ | - |   |   | $ | 458,428 |   |   | $ | (458,428 | ) |   | $ | - |   |
| Total                  assets                                                                |   | $                                                     | 527,332,387 |   |                                                | $      | 3,607,589 |   |   | $ | 530,939,976 |   |   | $ | 527,332,387 |   |   | $ | 3,607,589 |   |   | $ | 530,939,976 |   |
| Total                  deposits                                                              |   | $                                                     | 371,204,707 |   |                                                | $      | - |   |   | $ | 371,204,707 |   |   | $ | 371,204,707 |   |   | $ | - |   |   | $ | 371,204,707 |   |

|                                                                                                   |   | **Three                  Months Ended June 30, 2006** |        |   | **Six                  Months Ended June 30, 2006** |   |
|--------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|-------------|--------|-----------------------------------------------------|--------|
|                                                                                                   |   | **Traditional**                                       |        |   |                                                |   |   |   |   |   | **Traditional** |   |   |   |   |   |   |   |
|                                                                                                   |   | **Banking**                                           |        |   | **All                  Others**                     |   |   | **Total** |   |   | **Banking** |   |   | **All                  Others** |   |   | **Total** |   |
|                                                                                                   |   |                                                  |        |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  income                                                                       |   | $                                                     | 6,950,918   |   |                                                | $      | - |   |   | $ | 6,950,918 |   |   | $ | 13,726,008 |   |   | $ | - |   |   | $ | 13,726,008 |   |
| Interest                  expense                                                                      |   |                                                  | 3,662,523   |   |                                                |   | 20 |   |   |   | 3,662,543 |   |   |   | 7,114.374 |   |   |   | 41 |   |   |   | 7,114,415 |   |
| **Net                  interest income (loss)**                                                        |   |                                                  | 3,288,395   |   |                                                |   | (20 | ) |   |   | 3,288,375 |   |   |   | 6,611,634 |   |   |   | (41 | ) |   |   | 6,611,593 |   |
| Provision                  for loan losses                                                             |   |                                                  | 60,000      |   |                                                |   | - |   |   |   | 60,000 |   |   |   | 120,000 |   |   |   | - |   |   |   | 120,000 |   |
| **Net                  interest income (loss)****after                  provision for loan****losses** |   |                                                  | 3,228,395   |   |                                                |   | (20 | ) |   |   | 3,228,375 |   |   |   | 6,491,634 |   |   |   | (41 | ) |   |   | 6,491,593 |   |
| Noninterest                  income                                                                    |   |                                                  | 1,162,332   |   |                                                |   | 609,812 |   |   |   | 1,772,144 |   |   |   | 2,498,768 |   |   |   | 1,198,921 |   |   |   | 3,697,689 |   |
| Noninterest                  expense                                                                   |   |                                                  | 2,822,171   |   |                                                |   | 396,427 |   |   |   | 3,218,598 |   |   |   | 5,825,690 |   |   |   | 768,965 |   |   |   | 6,594,655 |   |
| **Income                  before income taxes**                                                        |   |                                                  | 1,568,556   |   |                                                |   | 213,365 |   |   |   | 1,781,921 |   |   |   | 3,164,712 |   |   |   | 429,915 |   |   |   | 3,594,627 |   |
| Provision                  for income taxes                                                            |   |                                                  | 519,900     |   |                                                |   | 5,350 |   |   |   | 525,250 |   |   |   | 1,071,800 |   |   |   | 25,200 |   |   |   | 1,097,000 |   |
| **Net                  income**                                                                        |   | $                                                     | 1,048,656   |   |                                                | $      | 208,015 |   |   | $ | 1,256,671 |   |   | $ | 2,092,912 |   |   | $ | 404,715 |   |   | $ | 2,497,627 |   |
| Inter-segment                  revenue (expense)                                                       |   | $                                                     | 258,584     |   |                                                | $      | (258,584 | ) |   | $ | - |   |   | $ | 526,306 |   |   | $ | (526,306 | ) |   | $ | - |   |
| Total                  assets                                                                          |   | $                                                     | 492,452,555 |   |                                                | $      | 3,788,727 |   |   | $ | 496,241,282 |   |   | $ | 492,452,555 |   |   | $ | 3,788,727 |   |   | $ | 496,241,282 |   |
| Total                  deposits                                                                        |   | $                                                     | 335,912,700 |   |                                                | $      | - |   |   | $ | 335,912,700 |   |   | $ | 335,912,700 |   |   | $ | - |   |   | $ | 335,912,700 |   |

**6.           RECENT      ACCOUNTING PRONOUNCEMENTS**

*Accounting for Certain Hybrid Financial Instruments*
*Accounting for Derivative      Instruments and Hedging Activities*

*Accounting for Servicing of Financial      Assets, an amendment of FASB Statement No. 140*

*Accounting for      Uncertainty in Income Taxes*
*Accounting for      Income Taxes*

*Fair Value      Measurements*

*Employers’ Accounting for      Defined Benefit Pension and Other *
*Postretirement Plans - an amendment      of FASB Statements No. 87, 88, 106 and 132(R)*

*The Fair Value Option for      Financial Assets and Financial Liabilities - Including an amendment of FASB      Statement No. 115*

----

**7.           INCOME      TAXES**

*Accounting for Uncertainty in Income Taxes*

**8.           RECLASSIFICATIONS**

----

**ITEM      2.**

**MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS**

**EXPLANATORY      NOTE**

**Executive      Overview**

|   | • | The                Company has effectively managed its capital since the Company’s inception                in 1996.  Annual dividends per share have increased from $0.25                per share in 1997 to $1.32 per share in 2006.  In 2007, the                Company increased its quarterly dividend 6.1%, to $0.35 per                share.  An active stock repurchase program has also been                consistently used by the Company to manage capital and increase earnings                per share.  The Company repurchased 18,000 and 44,300 shares                during the three and six months ended June 30, 2007.  As of June                30, 2007, the Company has repurchased 2,981,104 shares at a cost                of $61.8                million, since its inception. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | In                recent years the Bank has opened new offices in the Des Moines                metropolitan area, where population growth trends are                positive.  In August 2006, the Bank opened a new branch office                in West Des Moines, Iowa near Jordan Town Center Mall.  The                Company will continue to analyze de novo branch opportunities in                the Des                Moines metropolitan area.  We believe that this strategy will                result in long-term loan and deposit growth for the Company, but                will                negatively impact short-term earnings until each de novo branch achieves                profitability. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Consistent                with the Bank’s emphasis on attracting and retaining core deposits, growth                in deposit fees, including overdraft fees, continued a strong positive                trend. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | The                Company continues to be liability sensitive. The growth of                interest-bearing liabilities primarily reflects the growth of higher                cost                certificates of deposit, including brokered certificates of                deposit.  Also contributing to the liability sensitivity of the                Company is the continuing shift of lower cost non-maturing deposits                into                higher cost short-term certificates of                deposit. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | The                Company began utilizing brokered certificates of deposits in 2005                as an                alternative funding source.  At June 30, 2007, the Company had                brokered certificates of deposit of $30.4 million, compared to $9.6                million at June 30, 2006. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Management                believes that the allowance for loan losses is adequate.  The                allowance for loan losses to nonaccrual loans was 312% at June 30,                2007.  Net annualized chargeoffs as of June 30, 2007 were 0.01%                of total loans and have averaged 0.04% of total loans for the past                five                years.  During the six months ended June 30, 2007, the Company’s                net loan portfolio increased $19.5 million, or 4.3%.  The                increase was due to increases in commercial real estate and consumer                loans, offset in part by decreases in multifamily and one-to four-family                real estate loans.  The Company’s provision for loan losses for                the three and six months ended June 30, 2007 was $60,000 and $90,000                respectively. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Purchases                of out-of-state real estate loans remain an integral part of the                Company’s                business plan.  The Company has continued to purchase                out-of-state real estate loans to supplement local mortgage loan                originations and to diversify its mortgage loan portfolio                geographically. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**FINANCIAL      CONDITION**

*Accounting for Uncertainty      in Income Taxes*

----

|                               |   | **Amount**                            |   |   | **Percentage                of Assets** |   |
|------------------------------------|--------|---------------------------------------|--------|--------|-----------------------------------------|--------|
|                               |   | (Dollars                in thousands) |   |
| Tangible                capital:   |   |                                  |   |   |                                    |   |
| Capital                level       |   | $                                     | 36,173 |   |                                    |   | 6.86 | % |
| Less                Requirement    |   |                                  | 7,906  |   |                                    |   | 1.50 | % |
| Excess                             |   | $                                     | 28,267 |   |                                    |   | 5.36 | % |
|                               |   |                                  |   |   |                                    |   |   |   |
| Core                capital:       |   |                                  |   |   |                                    |   |   |   |
| Capital                level       |   | $                                     | 36,173 |   |                                    |   | 6.86 | % |
| Less                Requirement    |   |                                  | 21,083 |   |                                    |   | 4.00 | % |
| Excess                             |   | $                                     | 15,090 |   |                                    |   | 2.86 | % |
|                               |   |                                  |   |   |                                    |   |   |   |
| Risk-based                capital: |   |                                  |   |   |                                    |   |   |   |
| Capital                level       |   | $                                     | 39,893 |   |                                    |   | 10.65 | % |
| Less                Requirement    |   |                                  | 29,975 |   |                                    |   | 8.00 | % |
| Excess                             |   | $                                     | 9,918  |   |                                    |   | 2.65 | % |

**LIQUIDITY      AND CAPITAL RESOURCES**

----

**RESULTS      OF OPERATIONS**

***Net      Income***
*.*

***Net      Interest Income***

***Interest      Income***

***Interest      Expense***

----

|                                                                                                                |   | **For                the Three Months Ended June 30,** |    |
|---------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|---------|
|                                                                                                                |   | **2007**                                               |    |   | **2006** |   |
|                                                                                                                |   | **Average****Balance**                                 |    |   | **Interest** |   |   | **Average****Yield/Cost** |   |   | **Average****Balance** |   |   | **Interest** |   |   | **Average****Yield/Cost** |   |
|                                                                                                                |   | (Dollars                in thousands)                  |    |
| Assets:                                                                                                             |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning                assets:                                                                             |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Loans                                                                                                   |   | $                                                      | 464,859 |   |   | $ | 7,542 |   |   |   | 6.49 | % |   | $ | 439,701 |   |   | $ | 6,695 |   |   |   | 6.09 | % |
|   Securities                available-for-sale                                                            |   |                                                   | 19,487  |   |   |   | 234 |   |   |   | 4.79 |   |   |   | 21,919 |   |   |   | 249 |   |   |   | 4.55 |   |
|   Interest-bearing                cash                                                                    |   |                                                   | 8,490   |   |   |   | 106 |   |   |   | 5.01 |   |   |   | 679 |   |   |   | 7 |   |   |   | 3.88 |   |
|     Total                interest-earning assets                                                |   |                                                   | 492,836 |   |   | $ | 7,882 |   |   |   | 6.40 | % |   |   | 462,299 |   |   |   | 6,951 |   |   |   | 6.02 | % |
| Noninterest-earning                assets                                                                           |   |                                                   | 29,263  |   |   |   |   |   |   |   |   |   |   |   | 28,871 |   |   |   |   |   |   |   |   |   |
|     Total                assets                                                                 |   | $                                                      | 522,099 |   |   |   |   |   |   |   |   |   |   | $ | 491,170 |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                and Equity:                                                                              |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                                                                        |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   NOW                and money                market savings                                              |   | $                                                      | 83,705  |   |   | $ | 268 |   |   |   | 1.28 | % |   | $ | 85,889 |   |   | $ | 264 |   |   |   | 1.23 | % |
|   Passbook                savings                                                                         |   |                                                   | 26,474  |   |   |   | 36 |   |   |   | 0.55 |   |   |   | 27,095 |   |   |   | 22 |   |   |   | 0.32 |   |
|   Certificates                of                deposit                                                   |   |                                                   | 240,014 |   |   |   | 2,890 |   |   |   | 4.83 |   |   |   | 208,665 |   |   |   | 2,083 |   |   |   | 4.00 |   |
|   Borrowed                funds                                                                           |   |                                                   | 111,203 |   |   |   | 1,363 |   |   |   | 4.92 |   |   |   | 110,373 |   |   |   | 1,294 |   |   |   | 4.70 |   |
| Total                interest-bearing                liabilities                                                    |   |                                                   | 461,396 |   |   | $ | 4,557 |   |   |   | 3.96 | % |   |   | 432,022 |   |   | $ | 3,663 |   |   |   | 3.40 | % |
| Noninterest-bearing                liabilities                                                                      |   |                                                   | 18,613  |   |   |   |   |   |   |   |   |   |   |   | 16,679 |   |   |   |   |   |   |   |   |   |
|     Total                liabilities                                                            |   |                                                   | 480,009 |   |   |   |   |   |   |   |   |   |   |   | 448,701 |   |   |   |   |   |   |   |   |   |
| Equity                                                                                                              |   |                                                   | 42,090  |   |   |   |   |   |   |   |   |   |   |   | 42,469 |   |   |   |   |   |   |   |   |   |
|     Total                liabilities and equity                                                 |   | $                                                      | 522,099 |   |   |   |   |   |   |   |   |   |   | $ | 491,170 |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest                income                                                                   |   |                                                   |    |   |   | $ | 3,325 |   |   |   |   |   |   |   |   |   |   | $ | 3,288 |   |   |   |   |   |
| Net                interest rate                spread                                                              |   |                                                   |    |   |   |   |   |   |   |   | 2.44 | % |   |   |   |   |   |   |   |   |   |   | 2.62 | % |
| Net                interest                margin                                                                   |   |                                                   |    |   |   |   |   |   |   |   | 2.69 | % |   |   |   |   |   |   |   |   |   |   | 2.85 | % |
| Ratio                of average interest-earning assets to average interest-bearing                liabilities |   |                                                   |    |   |   |   |   |   |   |   | 106.81 | % |   |   |   |   |   |   |   |   |   |   | 107.01 | % |
|                                                                                                                |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   | **For                the Six Months Ended June 30,**   |    |
|                                                                                                                |   | **2007**                                               |    |   | **2006** |   |
|                                                                                                                |   | **Average****Balance**                                 |    |   | **Interest** |   |   | **Average****Yield/Cost** |   |   | **Average****Balance** |   |   | **Interest** |   |   | **Average****Yield/Cost** |   |
|                                                                                                                |   | (Dollars                in thousands)                  |    |
| Assets:                                                                                                             |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning                assets:                                                                             |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Loans                                                                                                   |   | $                                                      | 456,778 |   |   | $ | 14,678 |   |   |   | 6.43 | % |   | $ | 439,304 |   |   | $ | 13,225 |   |   |   | 6.03 | % |
|   Securities                available-for-sale                                                            |   |                                                   | 19,542  |   |   |   | 469 |   |   |   | 4.80 |   |   |   | 21,542 |   |   |   | 476 |   |   |   | 4.42 |   |
|   Interest-bearing                cash                                                                    |   |                                                   | 11,582  |   |   |   | 288 |   |   |   | 5.02 |   |   |   | 1,239 |   |   |   | 25 |   |   |   | 4.11 |   |
|     Total                interest-earning assets                                                |   |                                                   | 487,902 |   |   | $ | 15,435 |   |   |   | 6.34 | % |   |   | 462,085 |   |   |   | 13,726 |   |   |   | 5.95 | % |
| Noninterest-earning                assets                                                                           |   |                                                   | 29,195  |   |   |   |   |   |   |   |   |   |   |   | 28,772 |   |   |   |   |   |   |   |   |   |
|     Total                assets                                                                 |   | $                                                      | 517,097 |   |   |   |   |   |   |   |   |   |   | $ | 490,857 |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                and Equity:                                                                              |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                                                                        |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   NOW                and money                market savings                                              |   | $                                                      | 83,395  |   |   | $ | 525 |   |   |   | 1.27 | % |   | $ | 87,590 |   |   | $ | 514 |   |   |   | 1.18 | % |
|   Passbook                savings                                                                         |   |                                                   | 26,335  |   |   |   | 62 |   |   |   | 0.47 |   |   |   | 27,132 |   |   |   | 43 |   |   |   | 0.32 |   |
|   Certificates                of                deposit                                                   |   |                                                   | 238,329 |   |   |   | 5,631 |   |   |   | 4.76 |   |   |   | 207,309 |   |   |   | 4,031 |   |   |   | 3.92 |   |
|   Borrowed                funds                                                                           |   |                                                   | 107,973 |   |   |   | 2,617 |   |   |   | 4.89 |   |   |   | 108,464 |   |   |   | 2,526 |   |   |   | 4.70 |   |
| Total                interest-bearing                liabilities                                                    |   |                                                   | 456,032 |   |   | $ | 8,835 |   |   |   | 3.91 | % |   |   | 430,495 |   |   | $ | 7,114 |   |   |   | 3.33 | % |
| Noninterest-bearing                liabilities                                                                      |   |                                                   | 19,073  |   |   |   |   |   |   |   |   |   |   |   | 17,324 |   |   |   |   |   |   |   |   |   |
|     Total                liabilities                                                            |   |                                                   | 475,105 |   |   |   |   |   |   |   |   |   |   |   | 447,819 |   |   |   |   |   |   |   |   |   |
| Equity                                                                                                              |   |                                                   | 41,992  |   |   |   |   |   |   |   |   |   |   |   | 43,038 |   |   |   |   |   |   |   |   |   |
|     Total                liabilities and equity                                                 |   | $                                                      | 517,097 |   |   |   |   |   |   |   |   |   |   | $ | 490,857 |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest                income                                                                   |   |                                                   |    |   |   | $ | 6,600 |   |   |   |   |   |   |   |   |   |   | $ | 6,612 |   |   |   |   |   |
| Net                interest rate                spread                                                              |   |                                                   |    |   |   |   |   |   |   |   | 2.44 | % |   |   |   |   |   |   |   |   |   |   | 2.62 | % |
| Net                interest                margin                                                                   |   |                                                   |    |   |   |   |   |   |   |   | 2.69 | % |   |   |   |   |   |   |   |   |   |   | 2.86 | % |
| Ratio                of average interest-earning assets to average interest-bearing                liabilities |   |                                                   |    |   |   |   |   |   |   |   | 107.17 | % |   |   |   |   |   |   |   |   |   |   | 107.34 | % |

----

***Provision      for Loan Losses***
**.  **

***Noninterest      Income***
*.*

***Noninterest      Expense***
*.*

***Income      Taxes***
*.  *

**OFF-BALANCE      SHEET ARRANGEMENTS**

**CRITICAL      ACCOUNTING POLICIES**

**ITEM      3.**

**QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**ITEM      4.**

**CONTROLS      AND PROCEDURES**

----

**PART      II.  OTHER INFORMATION**

**Item      1.  Legal Proceedings**

**Item      1A.  Risk Factors**

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

| Period                                                        |   | Total                Number ofShares                Purchased |   |   | Average                Price PaidPer                Share |   |   | Total                Number ofShares                Purchased asPart                of PubliclyAnnounced                Plans |   |   | Maximum                Number ofShares                that May YetBe                Purchased UnderThe                Plan |   |
|---------------------------------------------------------------|--------|---------------------------------------------------------------|--------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------|--------|
|                                                          |   |                                                          |   |   |                                                      |   |   |                                                                                                                          |   |   |                                                                                                                       |   |
| April                1, 2007 to April                30, 2007 |   |                                                          | -      |   |                                                      |   | -      |                                                                                                                          |   |   | -                                                                                                                          |   |   |   | 22,450 |   |
|                                                          |   |                                                          |   |   |                                                      |   |   |                                                                                                                          |   |   |                                                                                                                       |   |   |   |   |   |
| May                1, 2007 to May                31, 2007     |   |                                                          | 6,500  |   |                                                      | $      | 40.49  |                                                                                                                          |   |   | 6,500                                                                                                                      |   |   |   | 15,950 |   |
|                                                          |   |                                                          |   |   |                                                      |   |   |                                                                                                                          |   |   |                                                                                                                       |   |   |   |   |   |
| June                1, 2007 to June                30, 2007   |   |                                                          | 11,500 |   |                                                      | $      | 40.24  |                                                                                                                          |   |   | 11,500                                                                                                                     |   |   |   | 4,450 |   |
| Total                                                         |   |                                                          | 18,000 |   |                                                      |   |   |                                                                                                                          |   |   | 18,000                                                                                                                     |   |   |   |   |   |

**Item      3.  Defaults Upon Senior Securities**

----

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

|                                     |  FOR |  WITHELD |
|------------------------------------------|-----------|---------------|
|  C.                Thomas Chalstrom | 1,237,011 | 22,570        |
|  Randall                L. Minear   | 1,248,947 | 10,634        |
|  Melvin                R. Schroeder | 1,249,529 | 10,052        |

**Item      5.  Other Information**

----

**Item      6.  Exhibits**

|  **Exhibit                No.** |  **Description**                                                                                                                                                                                                                                          |  **Reference                No.** |
|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|
| 3.1                                  | Articles                of Incorporation of North Central Bancshares, Inc.                                                                                                                                                                                | (1)                                    |
| 3.2                                  | Bylaws                of North Central Bancshares, Inc.                                                                                                                                                                                                   | (1)                                    |
| 3.3                                  | Bylaws                of North Central Bancshares, Inc., as amended                                                                                                                                                                                       | (2)                                    |
| 4.1                                  | Federal                Stock Charter of First Federal Savings Bank of Iowa (formerly known                as                First Federal Savings Bank of Fort Dodge)                                                                                     | (1)                                    |
| 4.2                                  | Bylaws                of First Federal Savings Bank of Iowa (formerly known as First Federal                Savings Bank of Fort Dodge).                                                                                                                  | (1)                                    |
| 4.3                                  | Specimen                Stock Certificate of North Central Bancshares, Inc.                                                                                                                                                                               | (1)                                    |
| 4.4                                  | Bylaws                of First Federal Savings Bank of Iowa, as amended                                                                                                                                                                                   | (2)                                    |
| 10.1                                 | Employee                Stock Ownership Plan of First Federal Savings Bank of Iowa (formerly                known                as First Federal Savings Bank of Fort Dodge) and ESOP Trust Agreement                (incorporating Amendments 1 and 2)  | (6)                                    |
| 10.1A                                | Amendment                #1 to Employee Stock Ownership Plan of First Federal Savings Bank                of Iowa                (formerly known as First Federal Savings Bank of Fort Dodge) and                ESOP                Trust Agreement      | (7)                                    |
| 10.1B                                | Amendment                #2 to Employee Stock Ownership Plan of First Federal Savings Bank                of Iowa                (formerly known as First Federal Savings Bank of Fort Dodge) and                ESOP                Trust Agreement      | (7)                                    |
| 10.2                                 | ESOP                Loan Documents, dated September 3, 1996                                                                                                                                                                                               | (5)                                    |
| 10.3                                 | Amended                and Restated Employee Retention Agreements between First Federal                Savings                Bank of Fort Dodge and certain executive officers                                                                           | (3)                                    |
| 10.4                                 | Employment                Agreement between First Federal Savings Bank of Iowa (formerly known                as                First Federal Savings Bank of Fort Dodge) and David M. Bradley, effective                as of August 31, 1994            | (1)                                    |
| 10.6                                 | Form                of Employment Agreement between North Central Bancshares, Inc. and                David                M. Bradley                                                                                                                     | (1)                                    |
| 10.8                                 | North                Central Bancshares, Inc. 1996 Stock Option Plan                                                                                                                                                                                      | (4)                                    |
| 10.9                                 | Amendment                No. 1 to the North Central Bancshares, Inc. 1996 Stock Option                Plan                                                                                                                                                | (6)                                    |
| 10.10                                | Supplemental                Retirement and Deferred Compensation Plan of First Federal Savings                Bank of                Iowa                                                                                                                 | (7)                                    |
| 10.11                                | Form                of Employment Agreement between First Federal Savings Bank of Iowa                and C.                Thomas Chalstrom                                                                                                              | (8)                                    |
| 10.12                                | Tax                Allocation Agreement between North Central Bancshares, Inc. and                Subsidiaries                                                                                                                                            | (2)                                    |
| 10.13                                | Form                of Employment Agreement North Central Bancshares, Inc. and C. Thomas                Chalstrom                                                                                                                                    | (8)                                    |
| 10.14                                | North                Central Bancshares, Inc. 2006 Stock Incentive Plan                                                                                                                                                                                   | (9)                                    |
| 10.15                                | North                Central Bancshares, Inc. 2006 Incentive Award Plan                                                                                                                                                                                   | (10)                                   |
| 10.16                                | Form                of Restricted Stock Award Notice                                                                                                                                                                                                      | (11)                                   |
| 14.1                                 | Code                of Ethics for Senior Financial Officers of North Central Bancshares,                Inc.                                                                                                                                              | (2)                                    |
| 21.1                                 | Subsidiaries                of the Registrant                                                                                                                                                                                                             | (1)                                    |
| 31                                   | Rule                13a-14(a)/15d-14(a) Certifications                                                                                                                                                                                                    |                                   |
| 32                                   | Section                1350 Certifications                                                                                                                                                                                                                     |                                   |

----

| (1) | Incorporated                herein by reference to Registration Statement No. 33-80493 on Form                S-1                filed with the SEC on December 18, 1995, as                amended. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated                herein by reference to the Annual Report on Form 10-K filed with                the SEC                on March 29, 2004. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated                herein by reference to the Quarterly Report on Form 10-Q filed with                the                SEC on August 13, 1998. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated                herein by reference to the Amended Schedule 14A filed with the SEC                on                August 14, 1996. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Incorporated                herein by reference to the Annual Report on Form 10-K filed with                the SEC                on March 31, 1997. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Incorporated                herein by reference to the Annual Report on Form 10-K filed with                the SEC                on March 31, 1998. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Incorporated                herein by reference to the Annual Report on Form 10-K filed with                the SEC                on March 29, 2002. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Incorporated                herein by reference to the Annual Report on Form 10-K filed with                the SEC                on March 31, 2006. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Incorporated                herein by reference to the Schedule 14A filed with the SEC on March                20,                2006. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Incorporated                herein by reference to the Quarterly Report on Form 10-Q filed with                the                SEC on August 11, 2006. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Incorporated                herein by reference to the Current Report on Form 8-K filed with                the SEC                on May 3, 2007. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  |   | NORTH                CENTRAL BANCSHARES,                INC.  |   |
|---------------------------------------|--------|---------------------------------------------------------------|--------|
|                                  |   |                                                          |   |
| DATE                  August 10, 2007 | BY:    | /s/ Paul              F. Bognanno                        |   |
|                                  |   | Paul              F. Bognanno, President and              CEO |   |
|                                  |   |                                                          |   |

| DATE                    August 10, 2007 | BY:    | /s/ Kyle                C. Cook                                |   |
|-----------------------------------------|--------|---------------------------------------------------------------------|--------|
|                                    |   | Kyle                C. Cook, Chief Financial                Officer |   |
|                                    |   |                                                                |   |