**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

| For                the quarterly period ended |     March                31, 2008                         |
|-----------------------------------------------|-------------------------------------------------------------------------------|
|                                          |                                                                          |
| 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  ̈  ( (Do not check                if a smaller reporting company) | Smaller                reporting company þ |

| Class                                       | Outstanding                at May 1, 2008 |
|---------------------------------------------|-------------------------------------------|
| Common                Stock, $.01 par value | 1,339,948                                 |

----

|                                         |                                                                                                                                            | Page   |
|----------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                         |                                                                                                                                            |   |
| Part                I. Financial Information |                                                                                                                                            |
|                                         |                                                                                                                                            |   |
|                                         | Item                1. Financial Statements (Unaudited)                                                                                         | 1      |
|                                         |                                                                                                                                            |   |
|                                         | Consolidated                Condensed Statements of Financial Condition at March 31, 2008and                December                31, 2007    | 1      |
|                                         |                                                                                                                                            |   |
|                                         | Consolidated                Condensed Statements of Income for the Three Months Ended March 31,                2008                and 2007     | 2      |
|                                         |                                                                                                                                            |   |
|                                         | Consolidated                Condensed Statements of Cash Flows for the Three Months Ended March                31,                2008 and 2007 | 3      |
|                                         |                                                                                                                                            |   |
|                                         | Notes                to Consolidated Condensed Financial Statements                                                                             | 5      |
|                                         |                                                                                                                                            |   |
|                                         | Item                2. Management’s Discussion and Analysis of Financial Condition and Results                of Operations               | 10     |
|                                         |                                                                                                                                            |   |
|                                         | Item                3. Quantitative and Qualitative Disclosure About Market                Risk                                                 | 16     |
|                                         |                                                                                                                                            |   |
|                                         | Item                4T. Controls and Procedures                                                                                                 | 16     |
|                                         |                                                                                                                                            |   |
| Part                II. Other Information    |                                                                                                                                            |
|                                         |                                                                                                                                            |   |
|                                         | Item                1.Legal Proceedings                                                                                                         | 16     |
|                                         |                                                                                                                                            |   |
|                                         | Item                6.Exhibits                                                                                                                  | 16     |
|                                         |                                                                                                                                            |   |
|                                         | Signatures                                                                                                                                      | 17     |

----

**PART      I. FINANCIAL INFORMATION**

**Item      1. Financial Statements (Unaudited) **

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

**CONSOLIDATED      CONDENSED STATEMENTS OF FINANCIAL CONDITION**

|                                                                                                                                                                                                                                                                   |   | **March                    31,** |        | **December                    31,** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|-------------|-------------------------------------|--------|
|                                                                                                                                                                                                                                                                   |   | **2008**                         |        | **2007**                            |   |
|                                                                                                                                                                                                                                                                   |   |                             |        |                                |   |
| **ASSETS**                                                                                                                                                                                                                                                             |   |                             |        |                                |   |
| Cash                    and due from banks:                                                                                                                                                                                                                            |   |                             |        |                                |   |   |   |
| Interest-bearing                                                                                                                                                                                                                                                       |   | $                                | 5,828,825   |                                | $      | 3,132,298 |   |
| Noninterest-bearing                                                                                                                                                                                                                                                    |   |                             | 9,020,014   |                                |   | 9,394,409 |   |
| Securities                    available-for-sale                                                                                                                                                                                                                       |   |                             | 14,213,230  |                                |   | 11,534,942 |   |
| Federal                    Home Loan Bank stock, at cost                                                                                                                                                                                                               |   |                             | 4,818,300   |                                |   | 5,064,200 |   |
| Loans                    receivable, net                                                                                                                                                                                                                               |   |                             | 440,106,872 |                                |   | 446,857,436 |   |
| Loans                    held for sale                                                                                                                                                                                                                                 |   |                             | 1,567,464   |                                |   | 1,402,488 |   |
| Accrued                    interest receivable                                                                                                                                                                                                                         |   |                             | 2,248,596   |                                |   | 2,278,635 |   |
| Foreclosed                    real estate                                                                                                                                                                                                                              |   |                             | 2,955,793   |                                |   | 2,569,314 |   |
| Premises                    and equipment, net                                                                                                                                                                                                                         |   |                             | 12,367,264  |                                |   | 12,466,305 |   |
| Rental                    real estate                                                                                                                                                                                                                                  |   |                             | 2,442,613   |                                |   | 2,473,633 |   |
| Title                    plant                                                                                                                                                                                                                                         |   |                             | 671,704     |                                |   | 671,704 |   |
| Goodwill                                                                                                                                                                                                                                                               |   |                             | 4,946,960   |                                |   | 4,946,960 |   |
| Deferred                    taxes                                                                                                                                                                                                                                      |   |                             | 1,106,386   |                                |   | 1,110,306 |   |
| Bank-owned                    life insurance                                                                                                                                                                                                                           |   |                             | 5,105,591   |                                |   | 5,044,601 |   |
| Prepaid                    expenses and other assets                                                                                                                                                                                                                   |   |                             | 1,117,069   |                                |   | 1,245,733 |   |
| **Total                    assets**                                                                                                                                                                                                                                    |   | $                                | 508,516,681 |                                | $      | 510,192,964 |   |
|                                                                                                                                                                                                                                                                   |   |                             |        |                                |   |   |   |
| **LIABILITIES                    AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                            |   |                             |        |                                |   |   |   |
|                                                                                                                                                                                                                                                                   |   |                             |        |                                |   |   |   |
| **LIABILITIES**                                                                                                                                                                                                                                                        |   |                             |        |                                |   |   |   |
| Deposits                                                                                                                                                                                                                                                               |   | $                                | 368,040,989 |                                | $      | 365,947,856 |   |
| Borrowed                    funds                                                                                                                                                                                                                                      |   |                             | 93,871,435  |                                |   | 97,378,800 |   |
| Advances                    from borrowers for taxes and insurance                                                                                                                                                                                                     |   |                             | 1,161,606   |                                |   | 2,016,809 |   |
| Dividends                    payable                                                                                                                                                                                                                                   |   |                             | 469,331     |                                |   | 468,981 |   |
| Accrued                    expenses and other liabilities                                                                                                                                                                                                              |   |                             | 3,777,489   |                                |   | 3,403,808 |   |
|                                                                                                                                                                                                                                                                   |   |                             |        |                                |   |   |   |
|  **Total                    liabilities**                                                                                                                                                                                                                         |   |                             | 467,320,850 |                                |   | 469,216,254 |   |
|                                                                                                                                                                                                                                                                   |   |                             |        |                                |   |   |   |
| **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;                    at March 31, 2008 1,339,948 shares issued and outstanding;                    at December 31, 2007, 1,340,948 shares issued                    and outstanding) |   |                             | 13,397      |                                |   | 13,392 |   |
| Additional                    paid-in capital                                                                                                                                                                                                                          |   |                             | 17,727,984  |                                |   | 17,686,444 |   |
| Retained                    earnings, substantially                    restricted                                                                                                                                                                                      |   |                             | 24,817,201  |                                |   | 24,483,022 |   |
| Accumulated                    other comprehensive                    income/(loss)                                                                                                                                                                                    |   |                             | (1,362,751  | )                                   |   | (1,206,148 | ) |
| **Total                    stockholders'                    equity**                                                                                                                                                                                                   |   |                             | 41,195,831  |                                |   | 40,976,710 |   |
|                                                                                                                                                                                                                                                                   |   |                             |        |                                |   |   |   |
| **Total                    liabilities and stockholders' equity**                                                                                                                                                                                                      |   | $                                | 508,516,681 |                                | $      | 510,192,964 |   |

----

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

**CONSOLIDATED      CONDENSED STATEMENTS OF INCOME**

|                                                               |   | **Three                Months Ended** |      |
|--------------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                               |   | **March                31,**          |      |
|                                                               |   | ** 2008**                        |      |  **2007** |   |
| Interest                income:                                    |   |                                  |      |   |   |   |   |
| Loans                receivable                                    |   | $                                     | 7,171,375 |   | $ | 7,135,629 |   |
| Securities                and cash deposits                        |   |                                  | 317,011   |   |   | 417,342 |   |
|                                                               |   |                                  | 7,488,386 |   |   | 7,552,971 |   |
| Interest                expense:                                   |   |                                  |      |   |   |   |   |
| Deposits                                                           |   |                                  | 3,091,651 |   |   | 3,024,408 |   |
| Borrowed                funds                                      |   |                                  | 1,201,985 |   |   | 1,253,305 |   |
|                                                               |   |                                  | 4,293,636 |   |   | 4,277,713 |   |
|                                                               |   |                                  |      |   |   |   |   |
| Net                interest income                                 |   |                                  | 3,194,750 |   |   | 3,275,258 |   |
|                                                               |   |                                  |      |   |   |   |   |
| Provision                for loan losses                           |   |                                  | 60,000    |   |   | 30,000 |   |
| Net                interest income after provision for loan losses |   |                                  | 3,134,750 |   |   | 3,245,258 |   |
|                                                               |   |                                  |      |   |   |   |   |
| Noninterest                income:                                 |   |                                  |      |   |   |   |   |
| Fees                and service charges                            |   |                                  | 1,015,134 |   |   | 1,007,123 |   |
| Abstract                fees                                       |   |                                  | 264,257   |   |   | 237,837 |   |
| Mortgage                banking income                             |   |                                  | 160,899   |   |   | 57,065 |   |
| Other                income                                        |   |                                  | 263,648   |   |   | 339,520 |   |
| Total                noninterest income                            |   |                                  | 1,703,938 |   |   | 1,641,545 |   |
|                                                               |   |                                  |      |   |   |   |   |
| Noninterest                expense:                                |   |                                  |      |   |   |   |   |
| Compensation                and employee benefits                  |   |                                  | 1,974,124 |   |   | 1,954,940 |   |
| Premises                and equipment                              |   |                                  | 441,614   |   |   | 387,000 |   |
| Data                processing                                     |   |                                  | 242,882   |   |   | 167,075 |   |
| Other                expenses                                      |   |                                  | 1,084,958 |   |   | 922,223 |   |
| Total                noninterest expense                           |   |                                  | 3,743,578 |   |   | 3,431,238 |   |
|                                                               |   |                                  |      |   |   |   |   |
| Income                before income taxes                          |   |                                  | 1,095,110 |   |   | 1,455,565 |   |
|                                                               |   |                                  |      |   |   |   |   |
| Provision                for income taxes                          |   |                                  | 291,600   |   |   | 421,300 |   |
|                                                               |   |                                  |      |   |   |   |   |
| Net                income                                          |   | $                                     | 803,510   |   | $ | 1,034,265 |   |
|                                                               |   |                                  |      |   |   |   |   |
| Basic                earnings per common share                     |   | $                                     | 0.60      |   | $ | 0.75 |   |
|                                                               |   |                                  |      |   |   |   |   |
| Diluted                earnings per common share                   |   | $                                     | 0.60      |   | $ | 0.75 |   |
|                                                               |   |                                  |      |   |   |   |   |
| Dividends                declared per common share                 |   | $                                     | 0.35      |   | $ | 0.35 |   |
|                                                               |   |                                  |      |   |   |   |   |
| Comprehensive                income                                |   | $                                     | 646,907   |   | $ | 1,129,159 |   |

----

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

**CONSOLIDATED      CONDENSED STATEMENTS OF CASH FLOWS**

|                                                                                                            |   | **Three                Months Ended****March                31,** |        |
|-----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|-------------|
|                                                                                                            |   | ** ** **2008**                                     |        | ** ** **2007**  |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                                                         |   |                                                              |        |   |   |   |   |
| Net                income                                                                                       |   | $                                                                 | 803,510     |   | $ | 1,034,265 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |                                                              |        |   |   |   |   |
| Provision                for loan                losses                                                         |   |                                                              | 60,000      |   |   | 30,000 |   |
| Depreciation                                                                                                    |   |                                                              | 215,364     |   |   | 200,853 |   |
| Amortization                and                accretion                                                        |   |                                                              | 6,649       |   |   | 93,241 |   |
| Deferred                taxes                                                                                   |   |                                                              | (5,717      | ) |   | (12,449 | ) |
| Stock-based                compensation                                                                         |   |                                                              | 29,848      |   |   | 12,704 |   |
| Excess                benefit related to                stock-based compensation                                |   |                                                              | (10,587     | ) |   | (77,683 | ) |
| (Gain)                on sale of foreclosed real                estate and loans, net                           |   |                                                              | (154,756    | ) |   | (61,835 | ) |
| Write-down                of other real estate                owned                                   |   |                                                              | 158,203     |   |   | - |   |
| Loss                on sale or disposal of                equipment and other assets, net                       |   |                                                              | -           |   |   | 535 |   |
| Proceeds                from sales of loans                held-for-sale                                        |   |                                                              | 13,264,446  |   |   | 4,672,267 |   |
| Originations                of loans                held-for-sale                                               |   |                                                              | (13,268,523 | ) |   | (4,707,138 | ) |
| Change                in assets and                liabilities:                                                 |   |                                                              |        |   |   |   |   |
| Accrued                interest receivable                                                                      |   |                                                              | 30,039      |   |   | 28,233 |   |
| Prepaid                expenses and other assets                                                                |   |                                                              | 56,484      |   |   | 64,286 |   |
| Accrued                expenses and other                liabilities                                            |   |                                                              | 386,718     |   |   | 35,653 |   |
| Net                cash provided by operating activities                                                        |   |                                                              | 1,571,678   |   |   | 1,312,932 |   |
|                                                                                                            |   |                                                              |        |   |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES**                                                         |   |                                                              |        |   |   |   |   |
| Net                change in                loans                                                               |   |                                                              | 17,673,791  |   |   | 8,961,168 |   |
| Purchase                of loans                                                                                |   |                                                              | (11,585,821 | ) |   | (12,456,752 | ) |
| Purchase                of securities                available-for-sale                                         |   |                                                              | (3,085,496  | ) |   | - |   |
| Proceeds                from maturities and                calls of securities available-for-sale               |   |                                                              | 270,050     |   |   | 311,719 |   |
| Proceeds                from redemption of                Federal Home Loan Bank stock                          |   |                                                              | 245,900     |   |   | 289,600 |   |
| Purchase                of Federal Home Loan                Bank stock                                          |   |                                                              | -           |   |   | - |   |
| Purchase                of premises, equipment                and rental real estate                            |   |                                                              | (85,303     | ) |   | (140,446 | ) |
| Net                proceeds from sale of                foreclosed real estate                                  |   |                                                              | 45,162      |   |   | 34,226 |   |
| Net                cash (used in) investing activities                                                          |   |                                                              | 3,478,283   |   |   | (3,000,485 | ) |
|                                                                                                            |   |                                                              |        |   |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES**                                                         |   |                                                              |        |   |   |   |   |
| Net                increase in                deposits                                                          |   |                                                              | 2,093,133   |   |   | 2,254,401 |   |
| Net                decrease in advances from                borrowers for taxes and insurance                   |   |                                                              | (855,203    | ) |   | (825,542 | ) |
| Net                increase in short-term borrowings                                                            |   |                                                              | 2,000,000   |   |   | - |   |
| Payments                of other borrowed                funds                                                  |   |                                                              | (5,507,365  | ) |   | (6,007,088 | ) |
| Purchase                of common stock for                retirement                                           |   |                                                              | -           |   |   | (1,050,740 | ) |
| Proceeds                from issuance of common                stock                                            |   |                                                              | -           |   |   | 199,615 |   |
| Excess                benefit related to                stock-based compensation                                |   |                                                              | 10,587      |   |   | 77,683 |   |
| Dividends                paid                                                                                   |   |                                                              | (468,981    | ) |   | (455,615 | ) |
| Net                cash provided by (used in) financing activities                                              |   |                                                              | (2,727,829  | ) |   | 5,807,286 |   |
| Net                increase (decrease) in                cash                                                   |   |                                                              | 2,322,132   |   |   | (7,494,839 | ) |
|                                                                                                            |   |                                                              |        |   |   |   |   |
| **CASH                AND DUE FROM BANKS**                                                                      |   |                                                              |        |   |   |   |   |
| Beginning                                                                                                       |   |                                                              | 12,526,707  |   |   | 20,022,276 |   |
| Ending                                                                                                          |   | $                                                                 | 14,848,839  |   | $ | 12,527,437 |   |

----

**CONSOLIDATED      CONDENSED STATEMENTS OF CASH FLOWS-**

|                                                                                                                  |   | **Three                Months Ended****March                31,** |      |
|-----------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|-----------|
|                                                                                                                  |   | ** ** **2008**                                     |      | ** ** **2007**  |   |
|                                                                                                                  |   |                                                              |      |   |   |
| **SUPPLEMENTAL                DISCLOSURES OF CASH FLOW INFORMATION**                                                  |   |                                                              |      |   |   |   |   |
| Cash                payments for:                                                                                     |   |                                                              |      |   |   |   |   |
| Interest                paid to                depositors                                                             |   | $                                                                 | 3,199,765 |   | $ | 3,064,299 |   |
| Interest                paid on                borrowings                                                             |   |                                                              | 1,201,985 |   |   | 1,253,305 |   |
| Income                taxes                                                                                           |   |                                                              | -         |   |   | 5,029 |   |
|                                                                                                                  |   |                                                              |      |   |   |   |   |
| **SUPPLEMENTAL                DISCLOSURE OF NONCASH OPERATING,****INVESTING                AND FINANCING ACTIVITIES** |   |                                                              |      |   |   |   |   |
| Transfers                from loans to other real estate owned                                                        |   | $                                                                 | 595,987   |   | $ | 241,394 |   |
| Cumulative                effect of adoption of FIN 48                                                                |   |                                                              | -         |   |   | 200,000 |   |

----

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

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

**1.**
**BASIS      OF PRESENTATION **

**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 March 31, 2008** |        |
|------------------------------------------------------------------------------------------|--------|------------------------------------------------------|-------------|
|                                                                                     |   | **Traditional**                                      |        |   |   |   |   |
|                                                                                     |   | **Banking**                                          |        | **All                Others** |   | **Total** |   |
|                                                                                     |   |                                                 |        |   |   |   |   |
| Interest                income                                                           |   | $                                                    | 7,488,386   |   | $ | - |   | $ | 7,488,386 |   |
| Interest                expense                                                          |   |                                                 | 4,293,636   |   |   | - |   |   | 4,293,636 |   |
| **Net                interest income**                                                   |   |                                                 | 3,194,750   |   |   | - |   |   | 3,194,750 |   |
| Provision                for loan losses                                                 |   |                                                 | 60,000      |   |   | - |   |   | 60,000 |   |
| **Net                interest income after****provision                for loan losses** |   |                                                 | 3,134,750   |   |   | - |   |   | 3,134,750 |   |
| Noninterest                income                                                        |   |                                                 | 1,182,731   |   |   | 521,207 |   |   | 1,703,938 |   |
| Noninterest                expense                                                       |   |                                                 | 3,428,881   |   |   | 314,697 |   |   | 3,743,578 |   |
| **Income                before income taxes**                                            |   |                                                 | 888,600     |   |   | 206,510 |   |   | 1,095,110 |   |
| Provision                for income taxes                                                |   |                                                 | 264,000     |   |   | 27,600 |   |   | 291,600 |   |
| **Net                income**                                                            |   | $                                                    | 624,600     |   | $ | 178,910 |   | $ | 803,510 |   |
| Inter-segment                revenue (expense)                                           |   | $                                                    | 193,885     |   | $ | (193,885 | ) | $ | - |   |
| Total                assets                                                              |   | $                                                    | 505,031,310 |   | $ | 3,485,371 |   | $ | 508,516,681 |   |
| Total                deposits                                                            |   | $                                                    | 368,040,989 |   | $ | - |   | $ | 368,040,989 |   |

|                                                                                            |   | **Three                Months Ended March 31, 2007** |        |
|-------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|-------------|
|                                                                                            |   | **Traditional**                                      |        |   |   |   |   |
|                                                                                            |   | **Banking**                                          |        | **All                Others** |   | **Total** |   |
|                                                                                            |   |                                                 |        |   |   |   |   |
| Interest                income                                                                  |   | $                                                    | 7,552,971   |   | $ | - |   | $ | 7,552,971 |   |
| Interest                expense                                                                 |   |                                                 | 4,277,713   |   |   | - |   |   | 4,277,713 |   |
| **Net                interest income (loss)**                                                   |   |                                                 | 3,275,258   |   |   | - |   |   | 3,275,258 |   |
| Provision                for loan losses                                                        |   |                                                 | 30,000      |   |   | - |   |   | 30,000 |   |
| **Net                interest income (loss) after****provision                for loan losses** |   |                                                 | 3,245,258   |   |   | - |   |   | 3,245,258 |   |
| Noninterest                income                                                               |   |                                                 | 1,115,362   |   |   | 526,183 |   |   | 1,641,545 |   |
| Noninterest                expense                                                              |   |                                                 | 3,095,109   |   |   | 336,129 |   |   | 3,431,238 |   |
| **Income                before income taxes**                                                   |   |                                                 | 1,265,511   |   |   | 190,054 |   |   | 1,455,565 |   |
| Provision                for income taxes                                                       |   |                                                 | 419,600     |   |   | 1,700 |   |   | 421,300 |   |
| **Net                income**                                                                   |   | $                                                    | 845,911     |   | $ | 188,354 |   | $ | 1,034,265 |   |
| Inter-segment                revenue (expense)                                                  |   | $                                                    | 231,364     |   | $ | (231,364 | ) | $ | - |   |
| Total                assets                                                                     |   | $                                                    | 507,154,320 |   | $ | 3,652,954 |   | $ | 510,807,274 |   |
| Total                deposits                                                                   |   | $                                                    | 362,584,211 |   | $ | - |   | $ | 362,584,211 |   |

**6.**
**RECENT      ACCOUNTING PRONOUNCEMENTS**

*Fair      Value*
*Measurements*

*The      Fair Value Option for Financial Assets and Financial      Liabilities*

----

*Business      Combinations*

*Noncontrolling      Interests in Consolidated Financial Statements*

*Disclosures      about Derivative Instruments and Hedging Activities. SFAS No. *

----

**7.          **
**FAIR          VALUE**

*Fair      Value Measurements*

|   | 1.                  | Level                1 – Inputs to the valuation methodology are quoted prices                (unadjusted) for identical assets or liabilities in                markets;                                                                                                                                                                                 |
|--------|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                     |                                                                                                                                                                                                                                                                                                                                                                 |
|   | 2.                  | Level                2 – Inputs to the valuation methodology include quoted prices for similar                assets and liabilities in active markets and inputs that are observable                for the asset or liability, either directly or indirectly, for                substantially the full term of the financial instrument;                and |
|   |                     |                                                                                                                                                                                                                                                                                                                                                                 |
|   | 3.                  | Level                3 – Inputs to the valuation methodology are unobservable and significant                to the fair value measurement                                                                                                                                                                                                                     |

| **($                  in 000s)**                                             |   | **Fair                  Value Measurements at Reporting Date Using**                                          |   |                                                                         |   |
|------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|
|                                                                         |   | **Quoted Prices in Active Markets****for Identical Assets (Level 1)** |   | **Significant Other ****Observable Inputs****(Level 2)** |   | **Significant ****Unobservable Inputs****(Level 3)** |   | **Total****03/31/08** |   |
| **Description**                                                              |   |                                                                                                          |   |                                                                         |   |   |   |   |   |
|                                                                         |   |                                                                                                          |   |                                                                         |   |   |   |   |   |
| Securities                  available-for-sale (Excluding equity securities) |   |                                                                                                          | _      |                                                                         |   | 7,833 |   |   | _ |   |   | 7,833 |   |
|                                                                         |   |                                                                                                          |   |                                                                         |   |   |   |   |   |   |   |   |   |
| Securities                  available-for-sale (Equity securities)           |   |                                                                                                          | 6,380  |                                                                         |   | _ |   |   | _ |   |   | 6,380 |   |
|                                                                         |   |                                                                                                          |   |                                                                         |   |   |   |   |   |   |   |   |   |
| Total                  Securities available-for-sale                         |   |                                                                                                          | 6,380  |                                                                         |   | 7,833 |   |   | _ |   |   | 14,213 |   |

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**8.**
**INCOME      TAXES**

*Accounting      for Uncertainty in Income Taxes*

**9.**
**RECLASSIFICATIONS**

**10.**
**SUBSEQUENT        EVENTS**

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**Item      2. Management's Discussion and Analysis Of Financial Condition and Results      Of      Operations**

**Executive      Overview **

|   | • | The                Company has effectively managed its capital since the Company’s inception                in 1996. Annual dividends per share have increased from $.25 per                share in                1997 to $1.40 per share in 2007. In addition, an active stock repurchase                program has been used by the Company to manage capital and increase                earnings per share. During the first quarter 2008 no repurchases                have                taken place, however as of March 31, 2008, the Company has repurchased                2,996,304 shares of its common stock at a cost of $62.4 million,                since its                inception.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | • | The                Bank has opened new offices in market areas where population growth                trends                are positive. New offices were opened in Ankeny, Iowa in February                2003 and                in Clive, Iowa in March, 2004. In August, 2006, the Bank opened a                new                branch office in West Des Moines, Iowa near Jordan Town Center Mall.                These                locations are in suburbs of Des Moines, Iowa, which is Iowa’s largest                metropolitan area. The Company will continue to focus on and emphasize                the                growth and profitability potential of the de novo branches within                the Des                Moines metropolitan area. Noninterest expenses have increased each                year                since 2003 due in part to the Company’s past strategy of opening de novo                branch offices. 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | • | Consistent                with the Company’s focus on attracting and retaining talented employees,                the Board of Directors has approved changes in the employee benefits                program including a freeze to the defined benefit pension plan and                enhancements to the 401(k) plan to be effective July 1,                2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | • | The                Company is actively managing the nonperforming assets evidenced by                the                April 18, 2008 sale of other real estate owned by the Company totaling                $1.41 million at March 31, 2008 improving the nonperforming asset                ratio.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | • | Purchases                and originations of out of state real estate loans remain an integral                part                of the Company’s business plan. The Company has purchased and originated                out of state real estate loans to supplement local mortgage loan                originations and to geographically diversify its mortgage loan                portfolio.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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**CRITICAL      ACCOUNTING POLICIES **

**FINANCIAL      CONDITION**

----

|                               |   | **Amount**                            |   | **Percentage of Assets** |   |
|------------------------------------|--------|---------------------------------------|--------|------------------------------------|--------|
|                               |   | (Dollars                in thousands) |   |
| Tangible                capital:   |   |                                  |   |                               |   |   |   |
| Capital                level  |   | $                                     | 35,391 |                               |   | 7.03 | % |
| Less                Requirement    |   |                                  | 7,551  |                               |   | 1.50 | % |
| Excess                             |   | $                                     | 27,840 |                               |   | 5.53 | % |
|                               |   |                                  |   |                               |   |   |   |
| Core                capital:       |   |                                  |   |                               |   |   |   |
| Capital                level       |   | $                                     | 35,391 |                               |   | 7.03 | % |
| Less                Requirement    |   |                                  | 20,137 |                               |   | 4.00 | % |
| Excess                             |   | $                                     | 15,254 |                               |   | 3.03 | % |
|                               |   |                                  |   |                               |   |   |   |
| Risk-based                capital: |   |                                  |   |                               |   |   |   |
| Capital                level       |   | $                                     | 38,809 |                               |   | 10.50 | % |
| Less                Requirement    |   |                                  | 29,569 |                               |   | 8.00 | % |
| Excess                             |   | $                                     | 9,240  |                               |   | 2.50 | % |

**RESULTS      OF OPERATIONS**

**Three      months ended March 31, 2008 compared to the three months ended March 31,      2007**

***Net      Income***
*.*

***Net      Interest Income***

----

***Interest      Income***

***Interest      Expense***

|                                                                                                                        |   | **For                the Three Months Ended March 31,** |    |
|-----------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|---------|
|                                                                                                                        |   | **2008**                                                |    | **2007** |   |
|                                                                                                                        |   | **Average****Balance**                                  |    | **Interest** |   | **Average****Yield/Cost** |   | **Average****Balance** |   | **Interest** |   | **Average****Yield/Cost** |   |
|                                                                                                                        |   | (Dollars                in thousands)                   |    |
| Assets:                                                                                                                     |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning                assets:                                                                                     |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                                                                  |   | $                                                       | 443,627 |   | $ | 7,171 |   |   | 6.47 | % | $ | 448,697 |   | $ | 7,136 |   |   | 6.39 | % |
| Securities                available-for-sale                                                                           |   |                                                    | 18,090  |   |   | 228 |   |   | 5.03 |   |   | 19,597 |   |   | 235 |   |   | 4.80 |   |
| Interest-bearing                cash                                                                                   |   |                                                    | 13,328  |   |   | 89 |   |   | 2.69 |   |   | 14,674 |   |   | 182 |   |   | 5.04 |   |
| Total                interest-earning                assets                                                            |   |                                                    | 475,045 |   | $ | 7,488 |   |   | 6.31 | % |   | 482,968 |   | $ | 7,553 |   |   | 6.29 | % |
| Noninterest-earning                assets                                                                              |   |                                                    | 35,930  |   |   |   |   |   |   |   |   | 29,127 |   |   |   |   |   |   |   |
| Total                assets                                                                                            |   | $                                                       | 510,975 |   |   |   |   |   |   |   | $ | 512,095 |   |   |   |   |   |   |   |
|                                                                                                                        |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                and Equity:                                                                                      |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                                                                                |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW                and money market                savings                                                                  |   | $                                                       | 91,499  |   | $ | 274 |   |   | 1.20 | % | $ | 83,085 |   | $ | 25,7 |   |   | 1.26 | % |
| Passbook                savings                                                                                        |   |                                                    | 24,905  |   |   | 22 |   |   | 0.35 |   |   | 26,197 |   |   | 26 |   |   | 0.39 |   |
| Certificates                of                deposit                                                                  |   |                                                    | 236,129 |   |   | 2,795 |   |   | 4.75 |   |   | 236,645 |   |   | 2,742 |   |   | 4.70 |   |
| Borrowed                funds                                                                                          |   |                                                    | 95,332  |   |   | 1,202 |   |   | 5.06 |   |   | 104,743 |   |   | 1,253 |   |   | 4.85 |   |
| Total                interest-bearing                liabilities                                                       |   |                                                    | 447,865 |   | $ | 4,293 |   |   | 3.85 | % |   | 450,670 |   | $ | 4,278 |   |   | 3.85 | % |
| Noninterest-bearing                liabilities                                                                         |   |                                                    | 21,826  |   |   |   |   |   |   |   |   | 19,532 |   |   |   |   |   |   |   |
| Total                liabilities                                                                                       |   |                                                    | 469,691 |   |   |   |   |   |   |   |   | 470,202 |   |   |   |   |   |   |   |
| Equity                                                                                                                 |   |                                                    | 41,284  |   |   |   |   |   |   |   |   | 41,893 |   |   |   |   |   |   |   |
| Total                liabilities and equity                                                                            |   | $                                                       | 510,975 |   |   |   |   |   |   |   | $ | 512,095 |   |   |   |   |   |   |   |
|                                                                                                                        |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest                income                                                                      |   |                                                    |    |   | $ | 3,195 |   |   |   |   |   |   |   | $ | 3,275 |   |   |   |   |
| Net                interest rate                spread                                                                 |   |                                                    |    |   |   |   |   |   | 2.46 | % |   |   |   |   |   |   |   | 2.44 | % |
| Net                interest                margin                                                                      |   |                                                    |    |   |   |   |   |   | 2.68 | % |   |   |   |   |   |   |   | 2.69 | % |
| Ratio                of average interest-earning assets   to average interest-bearing                liabilities  |   |                                                    |    |   |   |   |   |   | 106.07 | % |   |   |   |   |   |   |   | 107.17 | % |
|                                                                                                                        |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

----

***Noninterest      Income***
*.*

----

***Noninterest      Expense***
*.*

***Income      Taxes***
*.      *

**LIQUIDITY      AND CAPITAL RESOURCES**

**OFF-BALANCE      SHEET ARRANGEMENTS**

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**Item      3. Quantitative and Qualitative Disclosures About Market Risk**

**Item      4T. Controls and Procedures **

**PART      II. OTHER INFORMATION**

**Item      1. Legal Proceedings**

**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., as amended                             |   | (2)                                    |
| 31.1                                 |   | Rule                13a-14(a)/15d-14(a) Certification of Chief Executive                Officer |   | *                                      |
| 31.2                                 |   | Rule                13a-14(a)/15d-14(a) Certification of Chief Financial                Officer |   | *                                      |
| 32                                   |   | Section                1350 Certification of Chief Executive Officer                            |   | *                                      |
| 32.2                                 |   | Section                1350 Certificate of Chief Financial Officer                              |   | *                                      |

| * | Filed                herewith |
|---|-------------------------------|

| (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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                              |   | NORTH                CENTRAL BANCSHARES, INC.                                     |
|-----------------------------------|--------|-----------------------------------------------------------------------------------|
|                              |   |                                                                              |
| Date:                May 14, 2008 | BY:    | /s/                David M. Bradley                                               |
|                              |   | David                M. Bradley, Chairman, President & CEO                    |
|                              |   |                                                                              |
|                              |   |                                                                              |
| Date:                May 14, 2008 | BY:    | /s/                Kyle C. Cook                                                   |
|                              |   | Kyle                C. Cook, Chief Financial Officer and                Treasurer |

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