**UNITED
        STATES**
 **SECURITIES
        AND EXCHANGE COMMISSION**
 **Washington,
        D.C. 20549**
 
 **FORM
        10-Q**
 
 QUARTERLY
        REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
        1934
  
 For
                the
                quarterly period ended or
              June
                  30, 2006
 
 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)
 Indicate
        by check mark whether the registrant (1) has filed all reports required to
        be
        filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
        the
        preceding 12 months (or for such shorter period that the registrant was required
        to file such reports), and (2) has been subject to such filing
        requirements for the past 90 days.
 Yes þ No  ̈
 
 Indicate
        by check mark whether the registrant is a large accelerated filer, an
        accelerated filer, or a non-accelerated filer. See definition of “accelerated
        filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check
        one):
 
 Large accelerated filer  ̈
              Accelerated
                  filer ̈
              Non-accelerated
                  filer þ
 
 Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Exchange Act).
 Yes  ̈ No þ
 
 
 Indicate
        the number of shares outstanding of each of the issuer's classes of common
        stock, as of the latest practicable date.
  Class
                  Outstanding
                      at July 31, 2006Common Stock, $.01 par value
                  1,423,653
  NORTH
        CENTRAL BANCSHARES, INC.
 
 INDEX
 
 
 
 Part
        I.
        Financial Information
 
 Item
        1.
        Consolidated Condensed
 Financial
        Statements (Unaudited)
 
 Consolidated
        Condensed Statements of
 Financial
        Condition at June 30, 2006
 and
        December 31, 2005
 
 Consolidated
        Condensed Statements of
 Income
        for the Three and Six Months Ended
 June
        30,
        2006 and 2005
 
 Consolidated
        Condensed Statements of
 Cash
        Flows for the Six Months Ended
 June
        30,
        2006 and 2005
 
 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
 
 Exhibits
 
 
  
 **PART
        I. FINANCIAL INFORMATION**
 **ITEM
        1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited)**
 
 **NORTH
        CENTRAL BANCSHARES, INC. AND SUBSIDIARIES**
  **CONSOLIDATED
        CONDENSED STATEMENTS OF FINANCIAL CONDITION**
 (Unaudited)
  **June
                  30,**
              
              **December
                  31,****ASSETS**
              
              **2006**
              
              **2005**Cash
                  and due from banks:
                Interest-bearing
              
              $
              612,448
              
              $
              552,456Noninterest-bearing
              
              
              7,902,066
              
              
              8,087,216Securities
                  available-for-sale
              
              
              15,761,219
              
              
              15,457,942Federal
                  Home Loan Bank stock, at cost
              
              
              5,747,100
              
              
              5,250,100Loans
                  receivable, net
              
              
              439,027,122
              
              
              430,278,191Loans
                  held for sale
              
              
              935,150
              
              
              737,838Accrued
                  interest receivable
              
              
              2,133,644
              
              
              2,146,102Foreclosed
                  real estate
              
              
              1,497,324
              
              
              1,142,901Premises
                  and equipment, net
              
              
              12,181,879
              
              
              10,962,248Rental
                  real estate
              
              
              2,648,717
              
              
              2,684,484Title
                  plant
              
              
              671,704
              
              
              925,256Goodwill
              
              
              4,946,960
              
              
              4,970,800Deferred
                  taxes
              
              
              1,144,966
              
              
              953,676Prepaid
                  expenses and other assets
              
              
              1,030,983
              
              
              1,041,915**Total
                  assets**
              
              $
              496,241,282
              
              $
              485,191,125
 
 **LIABILITIES
        AND STOCKHOLDERS' EQUITY**
 **LIABILITIES**Deposits
              
              $
              335,912,700
              
              $
              334,337,583Borrowed
                  funds
              
              
              113,425,684
              
              
              102,443,743Advances
                  from borrowers for taxes and insurance
              
              
              1,941,931
              
              
              1,897,511Dividends
                  payable
              
              
              470,795
              
              
              438,684Accrued
                  expenses and other liabilities
              
              
              2,077,146
              
              
              1,795,104**Total
                  liabilities**
              
              
              453,828,256
              
              
              440,912,625COMMITMENTS
                  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 2006, 1,426,653; 2005, 1,507,703 shares;
                outstanding
                  2006, 1,423,653; 2005, 1,507,703 shares)
              
              
              14,267
              
              
              15,077Additional
                  paid-in capital
              
              
              17,665,134
              
              
              18,447,059Retained
                  earnings, substantially restricted
              
              
              24,928,795
              
              
              25,847,345Accumulated
                  other comprehensive gain (loss)
              
              
              (76,220
              )
              
              (15,284
              )Treasury
                  stock, at cost (3,000 shares)
              
              
              (118,950
              )
              
              -Unearned
                  shares, employee stock ownership plan
              
              
              -
              
              
              (15,697
              )**Total
                  stockholders' equity**
              
              
              42,413,026
              
              
              44,278,500**Total
                  liabilities and stockholders' equity**
              
              $
              496,241,282
              
              $
              485,191,125
 
 See
        Notes
        to Consolidated Condensed Financial Statements
 
 
 
 **NORTH
        CENTRAL BANCSHARES, INC. AND SUBSIDIARIES**
  **CONSOLIDATED
        CONDENSED STATEMENTS OF INCOME**
 (Unaudited)
 **Three
                    Months Ended**
                
                **Six
                    Months Ended****June
                    30,**
                
                **June
                    30,****2006**
                
                **2005**
                
                **2006**
                
                **2005**Interest
                    income:Loans
                    receivable
                
                $
                6,695,177
                
                $
                6,323,968
                
                $
                13,225,074
                
                $
                12,398,505Securities
                    and cash deposits
                
                
                255,741
                
                
                264,326
                
                
                500,934
                
                
                497,7626,950,918
                
                
                6,588,294
                
                
                13,726,008
                
                
                12,896,267Interest
                    expense:Deposits
                
                
                2,368,459
                
                
                1,928,802
                
                
                4,587,893
                
                
                3,729,836Borrowed
                    funds
                
                
                1,294,084
                
                
                1,153,153
                
                
                2,526,522
                
                
                2,248,6023,662,543
                
                
                3,081,955
                
                
                7,114,415
                
                
                5,978,438Net
                    interest income
                
                
                3,288,375
                
                
                3,506,339
                
                
                6,611,593
                
                
                6,917,829Provision
                    for loan losses
                
                
                60,000
                
                
                70,000
                
                
                120,000
                
                
                120,000Net
                    interest income after provision for
                  loan
                    losses
                
                
                3,228,375
                
                
                3,436,339
                
                
                6,491,593
                
                
                6,797,829Noninterest
                    income:Fees
                    and service charges
                
                
                1,042,051
                
                
                990,435
                
                
                2,301,101
                
                
                1,820,978Abstract
                    fees
                
                
                350,659
                
                
                341,215
                
                
                683,533
                
                
                617,476Provision
                    for impairment on available-for-sale
                  securities
                
                
                -
                
                
                (424,500
                )
                
                -
                
                
                (679,500
                )Mortgage
                    banking income
                
                
                59,696
                
                
                75,723
                
                
                97,311
                
                
                116,411Other
                    income
                
                
                319,738
                
                
                311,788
                
                
                615,744
                
                
                607,799Total
                    noninterest income
                
                
                1,772,144
                
                
                1,294,661
                
                
                3,697,689
                
                
                2,483,164Noninterest
                    expense:Compensation
                    and employee benefits
                
                
                1,757,308
                
                
                1,606,525
                
                
                3,639,467
                
                
                3,185,204Premises
                    and equipment
                
                
                358,505
                
                
                354,369
                
                
                748,465
                
                
                704,348Data
                    processing
                
                
                163,919
                
                
                145,900
                
                
                325,692
                
                
                287,673Other
                    expenses
                
                
                938,866
                
                
                920,429
                
                
                1,881,031
                
                
                1,771,076Total
                    noninterest expense
                
                
                3,218,598
                
                
                3,027,223
                
                
                6,594,655
                
                
                5,948,301Income
                    before income taxes
                
                
                1,781,921
                
                
                1,703,777
                
                
                3,594,627
                
                
                3,332,692Provision
                    for income taxes
                
                
                525,250
                
                
                671,070
                
                
                1,097,000
                
                
                1,224,450Net
                    income
                
                $
                1,256,671
                
                $
                1,032,707
                
                $
                2,497,627
                
                $
                2,108,242Basic
                    earnings per common share
                
                $
                0.88
                
                $
                0.67
                
                $
                1.72
                
                $
                1.38Diluted
                    earnings per common share
                
                $
                0.87
                
                $
                0.65
                
                $
                1.69
                
                $
                1.34Dividends
                    declared per common share
                
                $
                0.33
                
                $
                0.29
                
                $
                0.66
                
                $
                0.58Comprehensive
                    income
                
                $
                1,126,499
                
                $
                1,450,537
                
                $
                2,436,691
                
                $
                2,762,998
  See
        Notes
        to Consolidated Condensed Financial Statements.
 
 
 
 **NORTH
        CENTRAL BANCSHARES, INC. AND SUBSIDIARIES**
 
 **CONSOLIDATED
        CONDENSED STATEMENTS OF CASH FLOWS**
 (Unaudited)
  **Six
                  Months Ended**
                **June
                  30,********2006**
              
              ******2005****CASH
                  FLOWS FROM OPERATING ACTIVITIES**Net
                  income
              
              $
              2,497,627
              
              $
              2,108,242Adjustments
                  to reconcile net income to net cash provided by operating
                  activities:Provision
                  for loan losses
              
              
              120,000
              
              
              120,000Depreciation
              
              
              361,681
              
              
              403,374Amortization
                  and accretion
              
              
              229,627
              
              
              209,147Stock
                  compensation
              
              
              87,741
              
              
              -Deferred
                  taxes
              
              
              (155,087
              )
              
              (21,983
              )Effect
                  of contribution to employee stock ownership plan
              
              
              59,958
              
              
              132,742(Gain)
                  on sale of foreclosed real estate and loans, net
              
              
              (130,871
              )
              
              (150,225
              )Provision
                  for impairment of available-for-sale securities & REO
              
              
              82,035
              
              
              679,500Loss
                  on disposal of equipment and other assets, net
              
              
              35,348
              
              
              26,796Proceeds
                  from sales of loans held for sale
              
              
              7,300,697
              
              
              8,250,937Originations
                  of loans held for sale
              
              
              (7,400,698
              )
              
              (8,046,078
              )Change
                  in assets and liabilities:Accrued interest receivable
              
              
              12,458
              
              
              (60,368
              )Prepaid expenses and other assets
              
              
              10,932
              
              
              (96,876
              )Accrued expenses and other liabilities
              
              
              282,042
              
              
              226,309Net
                  cash provided by operating activities
              
              
              3,393,490
              
              
              3,781,517**CASH
                  FLOWS FROM INVESTING ACTIVITIES**Net
                  decrease in loans
              
              
              11,426,680
              
              
              535,600Purchase
                  of loans
              
              
              (21,335,304
              )
              
              (16,674,102
              )Proceeds
                  from sales of securities available-for-sale
              
              
              258,600
              
              
              609,200Purchase
                  of securities available-for-sale
              
              
              (2,250,266
              )
              
              (659,300
              )Proceeds
                  from maturities of securities available-for-sale
              
              
              1,084,451
              
              
              1,494,431Purchase
                  of premises and equipment and rental real estate
              
              
              (1,553,499
              )
              
              (1,296,063
              )Proceeds
                  from sale of premises and equipment
              
              
              7,954
              
              
              -Other
              
              
              659,011
              
              
              436,318Net
                  cash (used in) investing activities
              
              
              (11,702,373
              )
              
              (15,553,916
              )**CASH
                  FLOWS FROM FINANCING ACTIVITIES**Net
                  increase in deposits
              
              
              1,575,117
              
              
              15,282,103Net
                  increase (decrease) in advances from borrowers for taxes and
                  insurance
              
              
              44,420
              
              
              (82,709
              )Net
                  change in short-term borrowings
              
              
              -
              
              
              (6,000,000
              )Proceeds
                  from other borrowed funds
              
              
              18,000,000
              
              
              12,000,000Payments
                  on other borrowings
              
              
              (7,018,059
              )
              
              (6,517,502
              )Purchase
                  of common stock for retirement
              
              
              (3,975,164
              )
              
              (295,052
              )Dividends
                  paid
              
              
              (911,747
              )
              
              (819,583
              )Issuance
                  of common stock
              
              
              469,158
              
              
              278,150Net
                  cash provided by financing activities
              
              
              8,183,725
              
              
              13,845,407Net
                  increase (decrease) in cash
              
              
              (125,158
              )
              
              2,073,008**CASH
                  AND DUE FROM BANKS**Beginning
              
              
              8,639,672
              
              
              7,918,179Ending
              
              $
              8,514,514
              
              $
              9,991,187**SUPPLEMENTAL
                  SCHEDULE OF CASH FLOW INFORMATION**Cash
                  payments for:Interest
                  paid to depositors
              
              $
              4,406,550
              
              $
              3,729,382Interest
                  paid on borrowings
              
              
              2,526,564
              
              
              2,248,673Income
                  taxes
              
              
              959,417
              
              
              1,187,672
  See
          Notes
          to Consolidated Condensed Financial Statements.
 
 **NORTH
        CENTRAL BANCSHARES, INC. AND SUBSIDIARIES**
 
 **NOTES
        TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)**
 
 **1.**  **SIGNIFICANT
        ACCOUNTING POLICIES**
 
 The
        consolidated condensed financial statements for the three and six month periods
        ended June 30, 2006 and 2005 are unaudited. In the opinion of the management
        of
        North Central Bancshares, Inc. (the “Company”), these financial statements
        reflect all adjustments, consisting only of normal recurring accruals, necessary
        to present fairly these consolidated financial statements. The results of
        operations for the interim periods are not necessarily indicative of results
        that may be expected for an entire year. Certain information and footnote
        disclosures normally included in complete financial statements prepared in
        accordance with generally accepted accounting principles have been omitted
        in
        accordance with the requirements for interim financial statements. The financial
        statements and notes thereto should be read in conjunction with the Company's
        2005 Annual Report on Form 10-K.
 
 The
        consolidated condensed financial statements include the accounts of the Company
        and its wholly owned subsidiaries. All significant intercompany balances
        and
        transactions have been eliminated in consolidation.
 
 **2.**  **EARNINGS
        PER SHARE**
 
 The
        earnings per share amounts were computed using the weighted average number
        of
        shares outstanding during the periods presented. In accordance with Statement
        of
        Position No. 93-6, *Employers'
        Accounting for Employee Stock Ownership Plans,* issued
        by the American Institute of Certified Public Accountants, shares owned by
        First
        Federal Savings Bank of Iowa’s Employee Stock Ownership Plan that have not been
        committed to be released are not considered to be outstanding for the purpose
        of
        computing earnings per share. For the three-month period ended June 30, 2006,
        the weighted average number of shares outstanding for basic and diluted earnings
        per share computation were 1,428,867 and 1,448,262, respectively. For the
        six-month period ended June 30, 2006, the weighted average number of shares
        outstanding for basic and diluted earnings per share computation were 1,452,255
        and 1,473,693, respectively. For the three-month period ended June 30, 2005,
        the
        weighted average number of shares outstanding for basic and diluted earnings
        per
        share computation were 1,532,123 and 1,577,353, respectively. For the six-month
        period ended June 30, 2005, the weighted average number of shares outstanding
        for the basic and diluted earnings per share computation were 1,529,393 and
        1,577,588, respectively.
 
 **3.**  **DIVIDENDS**
 
 On
        May
        26, 2006, the Company declared a cash dividend on its common stock, payable
        on
        July 6, 2006 to stockholders of record as of June 16, 2006, equal to $0.33
        per
        share.
 
 **4.**  **GOODWILL**
 
 As
        of
        January 1, 2002, the Company adopted Statement of Financial Accounting Standards
        (SFAS) No. 142, *Goodwill
        and Other Intangible Assets* that
        eliminated the amortization and required a goodwill impairment test. The
        Company
        completed the goodwill impairment test during the year ended December 31,
        2005
        and has determined that there has been no impairment of goodwill.
 
 As
        of
        June 30, 2006 and December 31, 2005, the Company had goodwill of $4,946,960
        and
        $4,970,800, respectively. There was no goodwill impairment loss or amortization
        related to goodwill during the three and six months ended June 30, 2006 or
        June
        30, 2005. Goodwill declined $23,840 during the three months ended June 30,
        2006,
        due to the disposition of certain subsidiary assets.
 
 **5.**  **STOCK
        OPTION PLAN**
 
 The
        Company has a share-based compensation plan, which is described below. The
        share-based compensation charged against income for the three and six months
        ended June 30, 2006 were $36,120 and $87,741, respectively. The total income
        tax
        benefit recognized in the income statement for the share-based compensation
        for
        the three and six months ended June 30, 2006 were $13,473 and $32,727,
        respectively.
 
 In
        1996, the shareholders of the Company ratified the 1996 Incentive Stock Option
        Plan (the “Plan”), which permitted the grant of 441,105 shares of common stock
        to its directors and employees. The Plan was intended to promote stock ownership
        by directors and selected officers of the Company to increase their proprietary
        interest in the success of the Company and to encourage them to remain in
        the
        employment of the Company or its subsidiaries. Awards granted under the Plan
        may
        have included incentive stock options, nonqualified stock options, and limited
        rights which are exercisable only upon change in control of First Federal
        Savings Bank of Iowa (the “Bank”) or the Company. The Plan provided for the
        grant of options at an exercise price equal to the market price of the Company’s
        stock on the date of grant. The option awards have a 10-year contractual
        term.
        Options granted to officers vest in five equal annual installments commencing
        on
        the first anniversary of the grant date and continuing each anniversary date
        thereafter. The options granted to officers expire ten years from the date
        of
        grant unless an earlier expiration date is triggered by death, disability,
        retirement or termination, as described in the Plan. Options granted to
        directors are vested immediately and expire ten years from the date of grant,
        unless an earlier expiration date is triggered by removal for cause. All
        awards
        were nonqualified stock options. Effective April 2006, upon shareholder approval
        of the North Central Bancshares, Inc. 2006 Stock Incentive Plan, no further
        awards under the Plan may be granted.
 
 On
        April 28, 2006, the shareholders of the Company approved the Company’s adoption
        of the North Central Bancshares, Inc. 2006 Stock Incentive Plan (the “2006
        Plan”), which permitted the grant of 125,000 shares of common stock to its
        directors and officers. The 2006 Plan is intended to promote growth and
        profitability, to provide certain key officers and non-employee directors
        of the
        Company with an incentive to achieve corporate objectives, to attract and
        retain
        individuals of outstanding competence, and to provide such individuals with
        an
        equity interest in the Company. Awards granted under the 2006 Plan may include
        stock options, restricted stock options, and stock appreciation rights. The
        2006
        Plan provides for the grant of options at an exercise price no less than
        the
        market price of the Company’s stock on the date of grant. The option awards may
        have a contractual term up to 10 years. The 2006 Plan will be administered
        by
        the Compensation Committee of the board of directors, including determining
        the
        type of awards made and establishing other terms and conditions applicable
        to
        the award.
 
 On
        January 1, 2006, the Company adopted SFAS No. 123(R), *Share-Based
        Payment* .
        This Statement revised SFAS Statement No. 123, *Accounting
        for Stock-Based Compensation* ,
        amends SFAS Statement No. 95, *Statement
        of Cash Flows* ,
        and supersedes Accounting Principles Board (APB) Opinion No. 125, *Accounting
        for Stock Issued to Employees* .
        Upon adoption of SFAS No. 123(R), the Company used the modified prospective
        transition method. The modified prospective method requires that compensation
        expense be recorded for all non-vested options beginning with the first quarter
        after adoption. SFAS No. 123(R) requires that all share-based compensation
        now
        be measured at fair value and recognized as an expense in the income statement.
        The Company estimates the fair value of each option award on the date of
        grant
        using the Black-Scholes method. The Company uses historical data to estimate
        the
        expected term of the options granted, volatilities, and other factors. Expected
        volatilities are based on the historical volatility of the Company’s stock over
        a period of time equal to the expected lives of the options granted. The
        risk-free interest rate for periods within the contractual life of the option
        is
        based on the U.S. Treasury yield curve in effect at the time of grant. The
        dividend rate is equal to the dividend rate in effect on the date of grant.
        The
        Company used the following weighted-average assumptions for grants in 2006
        and
        2005, respectively: dividend rates of 3.3% and 2.9%, price volatility of
        21.7%
        and 15.3%, risk-free interest rates of 4.4% and 4.1%, and expected lives
        of 8
        years for all periods.
 
 A
        summary of option activity under the Plan as of June 30, 2006, and changes
        during the six months ended June 30, 2006, is presented below:
 
 **Options**
              
              **Shares**
              
              **Weighted-Average
                  Exercise**
                **Price**
              
              **Weighted-Average
                  Remaining Contractual****Term**
              
              **Aggregate**
                **Intrinsic**
                **Value**Outstanding
                  at January 1, 2006
              
              
              102,600
              
              $
              25.90Granted
              
              
              23,000
              
              
              38.46Exercised
              
              
              (18,200
              )
              
              18.26Forfeited
                  or expired
              
              
              --
              
              
              --Outstanding
                  at June 30, 2006
              
              
              107,400
              
              $
              29.89
              
              
              6.6
              
              $
              988,755Vested/exercisable
                  at June 30, 2006
              
              
              70,100
              
              $
              26.06
              
              
              5.3
              
              $
              918,717
 The
        weighted-average grant-date fair value of options granted during the six
        months
        ended June 30, 2006 and 2005, was $8.08 and $6.96, respectively. The total
        intrinsic value of options exercised during the six months ended June 30,
        2006
        and 2005, was $366,535 and $298,475, respectively.
 
 A
        summary of the Company’s nonvested shares as of June 30, 2006, and changes
        during the six months ended June 30, 2006, is presented below:
 
 **Nonvested
                  Shares**
              
              **Shares**
              
              **Weighted-Average**
                **Grant-Date**
                **Fair
                  Value**Nonvested
                  at January 1, 2006
              
              
              26,500
              
              $
              5.83Granted
              
              
              23,000
              
              
              8.08Vested
              
              
              (12,200
              )
              
              7.07Forfeited
              
              
              --
              
              
              -Nonvested
                  at June 30, 2006
              
              
              37,300
              
              
              6.81
 
 As
        of June 30, 2006, there was $216,883 of total unrecognized compensation cost
        related to nonvested share-based compensation arrangements granted under
        the
        Plan. That cost is expected to be recognized over a weighted-average period
        of
        4.3 years. The total fair value of shares vested during the six months ended
        June 30, 2006, was $86,242.
 
 The
        pro forma disclosures previously permitted under SFAS No. 123, *Accounting
        for Stock-Based Compensation* ,
        are no longer an alternative to financial statement recognition. SFAS No.
        123
        established a fair value based method for financial accounting and reporting
        for
        stock-based employee compensation plans and for transactions in which an
        entity
        issued its equity instruments to acquire goods and services from nonemployees.
        However, the standard allowed compensation to continue to be measured by
        using
        the intrinsic value based method of accounting prescribed by APB No. 25, *Accounting
        for Stock Issued to Employees* ,
        but required expanded disclosures. The Company had elected to apply the
        intrinsic value based method of accounting for stock options issued to
        employees. Accordingly, prior to January 1, 2006, no compensation cost had
        been
        recognized by the Company in its financial statements. Had compensation cost
        for
        the Plan been determined based on the grant date fair values of awards (the
        method described in SFAS No. 123), the approximate reported net income and
        earnings per common share would have been decreased to the pro forma amounts
        shown below:
 
  **Three
                  Months Ended**
                **June
                  30, 2005**
              
              **Six
                  Months Ended**
                **June
                  30, 2005**Net
                  income, as reported
              
              $
              1,032,707
              
              $
              2,108,242Deduct:
                  Total stock-based employee compensationexpense
                  determined under fair value based
                method
                  for all awards, net of related tax effects
              
              
              (1,264
              )
              
              (33,872
              )**Pro
                  forma net income**
              
              $
              1,031,443
              
              $
              2,074,370Earnings
                  per common share - basic:As
                  reported
              
              $
              0.67
              
              $
              1.38Pro
                  forma
              
              
              0.67
              
              
              1.36Earnings
                  per common share - assuming dilution:As
                  reported
              
              $
              0.65
              
              $
              1.34Pro
                  forma
              
              
              0.65
              
              
              1.31
 
 **6.**  **RECENT
        ACCOUNTING PRONOUNCEMENTS**
 
 In
        February 2006, the Financial Accounting Standards Board (FASB) issued Statement
        of Financial Accounting Standard No. 155 *,
        Accounting for Certain Hybrid Financial Instruments* .
        SFAS
        No. 155 is an amendment of SFAS No. 133, *Accounting*  *for
        Derivative Instruments and Hedging Activities,* and
        SFAS
        No. 140, *Accounting
        for Transfers and Servicing of Financial Assets and Extinguishments of
        Liabilities.* This
        Statement eliminates the exemption from applying Statement 133 to interests
        in
        securitized financial assets so that similar instruments are accounted for
        similarly regardless of the form of the instruments. The Statement also allows
        an entity to elect fair value measurement at acquisition, at issuance, or
        when a
        previously recognized financial instrument is subject to a remeasurement
        event,
        on an instrument-by-instrument basis. This Statement is effective for the
        Company beginning on January 1, 2007. The Company does not expect this Statement
        to have a material effect on its financial condition or results of
        operations.
 
 In
        March
        2006, the FASB issued SFAS No. 156, *Accounting
        for Servicing of Financial Assets.* SFAS No.
        156 is an amendment of SFAS No. 140. SFAS No. 156 requires an entity to
        recognize a servicing asset or liability each time it undertakes an obligation
        to service a financial asset and requires each servicing asset or liability
        to
        be initially measured at fair value. Entities are permitted to choose the
        fair
        value measurement method or the amortization method for subsequent reporting
        periods. This Statement is effective for the Company beginning on January
        1,
        2007. The Company is assessing the impact of this pronouncement.
 
 In
        June
        2006, the FASB issued Interpretation No. 48 (“FIN 48”), *Accounting for
        Uncertainty in Income Taxes*-an interpretation of FASB Statement No. 109, to
        clarify certain aspects of accounting for uncertain tax positions, including
        issues related to the recognition and measurement of those tax positions.
        This
        interpretation is effective for fiscal years beginning after December 15,
        2006.
        The Company is in the process of evaluating the impact of this interpretation
        and believes that any entry will not have a material effect on the Company’s
        consolidated financial position or results of operations.
 
 **7.**  **RECLASSIFICATIONS**
 
 Certain
        amounts in the prior period financial statements have been reclassified,
        with no
        effect on net income or stockholders’ equity, to be consistent with the current
        period classification.
 
 
 
 **ITEM
        2.**
 
 **MANAGEMENT'S
        DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
        OPERATIONS**
  **EXPLANATORY
        NOTE**
 
 This
        Quarterly Report on Form 10-Q contains forward-looking statements consisting
        of
        estimates with respect to the consolidated financial condition, results of
        operations and business of the Company and its subsidiaries, including the
        Bank,
        that are subject to various factors which could cause actual results to differ
        materially from these estimates. These factors include changes in general,
        economic, market, legislative and regulatory conditions, and the development
        of
        an interest rate environment that adversely affects the interest rate spread
        or
        other income anticipated from the Company's operations and investments. The
        Company's actual results may differ from the results discussed in the
        forward-looking statements. The Company disclaims any obligation to publicly
        announce future events or developments that may affect the forward-looking
        financial statements contained herein.
 
 **Executive
        Overview**
 
 The
        Company’s business strategy is to operate the Bank as a well-capitalized,
        profitable and independent community-oriented savings bank. Specifically,
        the
        Company’s business strategy incorporates the following elements: (1) increasing
        loan and deposit balances in existing branch offices as well as by establishing
        de novo branch offices in markets where population growth trends are positive,
        such as the Des Moines, Iowa metropolitan area; (2) maintaining high asset
        quality by emphasizing investment in residential mortgage, multifamily and
        commercial real estate loans and consumer loans; (3) emphasizing growth in
        core
        deposits, which includes demand deposit, NOW, money market and savings accounts;
        (4) maintaining capital in excess of regulatory requirements; (5) controlling
        noninterest expense; (6) managing interest rate risk exposure; and (7)
        increasing noninterest income through increases in fees, service charges
        and
        sales of noninsured products.
 
 The
        purpose of this summary is to provide an overview of the items that management
        focuses on when evaluating the condition of the Company and our success in
        implementing our stockholder value strategy. Our stockholder value strategy
        has
        three major themes: (1) enhancing our shareholders’ value; (2) making our retail
        banking franchise more valuable; and (3) efficiently utilizing our capital.
 
 Management
        believes the following points were the most important to that analysis this
        quarter:
 
 •
              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 $1.16 per share in 2005. In 2006, the Company increased
                  its
                  quarterly dividend 13.8%, to $0.33 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 16,400
                  and
                  102,250 shares during the three and six months ended June 30, 2006.
                  As of
                  June 30, 2006, the Company has repurchased 2,887,804 shares at
                  a cost of
                  $58.1 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
                  its Jordan
                  Creek Town Center office in West Des Moines, Iowa. With the opening
                  of the
                  West Des Moines office, the Bank has eleven full service locations,
                  including three in the Des Moines metro area, which is Iowa’s largest
                  metropolitan area. The Company will continue to analyze de novo
                  branch
                  opportunities in the Des Moines metropolitan area. Noninterest
                  expenses
                  have increased during the three and six months ended June 30, 2006
                  and the
                  years ended December 31, 2005, 2004 and 2003 in part due to the
                  Company’s
                  strategy of opening de novo branch offices. We believe that this
                  strategy
                  will result in loan and deposit growth for the Company, but will
                  negatively impact net earnings until each de novo branch achieves
                  profitability.
 
 •
              On
                  January 1, 2006, the Company adoptedStatement
                  of Financial Accounting StandardsNo. 123(R),*Share-Based
                  Payment*.
                  SFAS No. 123(R) requires that all share-based compensation now
                  be measured
                  at fair value and recognized as expense in the income statement.
                  Upon
                  adoption of SFAS No. 123(R), the Company used the modified prospective
                  transition method. The modified prospective method requires that
                  compensation expense be recorded for all non-vested options beginning
                  with
                  the first quarter after adoption. Share-based compensation for
                  the three
                  and six months ended June 30, 2006 was $36,120 and $87,741,
                  respectively.
 
 •
              The
                  Company’s exposure to interest rate risk has increased from the prior
                  year. This is primarily due to the growth of interest-bearing liabilities
                  in higher cost certificates of deposit and borrowed funds. Also
                  contributing to the increase of the cost of funds is the shift
                  of lower
                  cost non-maturing deposits into higher cost short-term certificates
                  of
                  deposit.
 
 •
              Noninterest
                  income for the quarter ended June 30, 2006, increased primarily
                  due to a
                  $424,500 provision for impairment of available-for-sale securities
                  recorded in the second quarter of
                  2005.
 
 •
              Management
                  believes that the allowance for loan losses is adequate. The allowance
                  for
                  loan losses to nonaccrual loans was 542% at June 30, 2006. Net
                  annualized
                  chargeoffs as of June 30, 2006 were 0.03% of total loans and have
                  averaged
                  0.05% of total loans for the past five years. During the six months
                  ended
                  June 30, 2006, the Company’s net loan portfolio increased $8.7 million, or
                  2.0%. A significant portion of this increase consisted of increases
                  in
                  commercial real estate, multi-family real estate and consumer loans.
                  The
                  Company’s provision for loan losses for the three and six months ended
                  June 30, 2006 was $60,000 and $120,000,
                  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**
 
 Total
        assets increased $11.0 million, or 2.3%, to $496.2 million at June 30, 2006,
        from $485.2 million at December 31, 2005. The increase in assets was primarily
        due to the increase in net loans receivable and premises and equipment,
        net.
 
 Loans
        receivable, net, increased by $8.7 million, or 2.0%, to $439.0 million at
        June
        30, 2006, from $430.3 million at December 31, 2005, primarily due to the
        origination of $28.6 million of first mortgage loans primarily secured by
        one-to-four family residences and commercial real estate; the purchase of
        $21.3
        million of first mortgage loans secured by multifamily, commercial real estate,
        and one-to-four family residences; and the origination of $15.4 million of
        second mortgage loans during the six months ended June 30, 2006. These purchases
        and originations were offset in part by payments and prepayments of $57.7
        million and loan sales of $7.2 million during the six months ended June 30,
        2006. The Company sells substantially all fixed-rate loans with maturities
        in
        excess of 15 years in the secondary mortgage market in order to reduce interest
        rate risk.
 
 Deposits
        increased $1.6 million, or 0.5%, to $335.9 million at June 30, 2006, from
        $334.3
        million at December 31, 2005, primarily reflecting an increase in certificates
        of deposit, offset in part by decreases in checking, NOW, savings and money
        market account balances. The increase in certificates of deposit is primarily
        due to the utilization of brokered certificates of deposit, which increased
        $5.6
        million for the six months ended June 30, 2006. Borrowings, primarily Federal
        Home Loan Bank (the “FHLB”) advances, increased $11.0 million, or 10.7%, to
        $113.4 million at June 30, 2006, from $102.4 million at December 31, 2005.
        The
        Company utilized the increase in deposits and borrowed funds to fund loan
        growth.
 
 Total
        stockholders' equity decreased $1.9 million, or 4.2%, to $42.4 million at
        June
        30, 2006, from $44.3 million at December 31, 2005, primarily due to stock
        repurchases, declared dividends, and an increase in the unrealized loss on
        securities available-for-sale, offset in part by earnings and the exercise
        of
        stock options. During the six months ended June 30, 2006, the Company
        repurchased $4.0 million, or 102,250 shares, of common stock at prevailing
        market prices averaging $38.88 per share.
 
 
 
 
 The
        Office of Thrift Supervision (the "OTS") requires that the Bank meet minimum
        tangible, leverage (core) and risk-based capital requirements. As of June
        30,
        2006, the Bank exceeded all of its regulatory capital requirements. The Bank's
        required, actual and excess capital levels as of June 30, 2006 were as
        follows:
 
 **Amount**
              
              **Percentage
                  of Assets**(Dollars
                  in thousands)Tangible
                  capital:Capital
                  level
              
              $
              35,882
              
              
              7.28
              %Less
                  Requirement
              
              
              7,393
              
              
              1.50
              %Excess
              
              $
              28,489
              
              
              5.78
              %Core
                  capital:Capital
                  level
              
              $
              35,882
              
              
              7.28
              %Less
                  Requirement
              
              
              19,712
              
              
              4.00
              %Excess
              
              $
              16,170
              
              
              3.28
              %Risk-based
                  capital:Capital
                  level
              
              $
              39,232
              
              
              11.61
              %Less
                  Requirement
              
              
              27,076
              
              
              8.00
              %Excess
              
              $
              12,156
              
              
              3.61
              %
 
  **LIQUIDITY
        AND CAPITAL RESOURCES**
  The
        Company's primary sources of funds are cash provided by operating activities
        (including net income), certain financing activities (including increases
        in
        deposits and proceeds from borrowings) and certain investing activities
        (including principal payments on loans and maturities, calls and proceeds
        from
        the sale of securities). During the first six months of 2006 and 2005, principal
        payments, prepayments, and proceeds from sale of loans totaled $64.9 million
        and
        $58.0, respectively. The net increase in deposits during the first six months
        of
        2006 and 2005 totaled $1.6 million and $15.3 million, respectively. The proceeds
        from borrowed funds during the six months ended June 30, 2006 and 2005 totaled
        $18.0 million and $12.0 million, respectively. The net (decrease) increase
        in
        short term borrowings during the six months ended June 30, 2006 and 2005
        totaled
        $0.0 million and ($6.0) million, respectively. During the first six months
        of
        2006 and 2005, the proceeds from the maturities, calls and sales of securities
        totaled $1.3 million and $2.1 million, respectively. Cash provided from
        operating activities during the first six months of 2006 and 2005 totaled
        $3.3
        million and $3.8 million, respectively. The Company's primary use of funds
        is to
        originate and purchase loans, purchase securities available-for-sale, repay
        borrowed funds and other financing activities. During the first six months
        of
        2006 and 2005, the Company's gross purchases and origination of loans totaled
        $71.2 million and $73.0 million, respectively. The purchase of securities
        available-for-sale for the six months ended June 30, 2006 and 2005 totaled
        $2.3
        million and $659,000 respectively. The repayment of borrowed funds during
        the
        first six months of 2006 and 2005 totaled $7.0 million and $6.5 million,
        respectively. For additional information about cash flows from the Company's
        operating, financing and investing activities, see the Consolidated Condensed
        Statements of Cash Flows in the Company’s financial statements included as Item
        1 of this report.
 
 OTS
        regulations require the Company to maintain sufficient liquidity to ensure
        its
        safe and sound operation.
 
 The
        Company has a line of credit agreement in the amount of $3.0 million with
        an
        unaffiliated bank. As of June 30, 2006, there were no borrowings outstanding
        on
        this line of credit. The Company may use this line of credit to fund stock
        repurchases in the future and for general corporate purposes.
 
 On
        April
        6, 2006, the Company paid a quarterly cash dividend of $0.33 per share on
        common
        stock outstanding as of the close of business on March 17, 2006, aggregating
        $473,000. On May 26, 2006, the Company declared a quarterly cash dividend
        of
        $0.33 per share payable on July 6, 2006 to shareholders of record as of the
        close of business on June 16, 2006, aggregating $471,000.
 
 
 
 **RESULTS
        OF OPERATIONS**
 
 ***Net
        Income*** *.* Net
        income increased by $224,000 to $1.26 million for the quarter ended June
        30,
        2006, compared to $1.03 million for the quarter ended June 30, 2005. Net
        income
        is an aggregate of net interest income, noninterest income, noninterest expense
        and income tax expense. The increase in net income was primarily due to an
        increase in noninterest income and a decrease in income tax expense, offset
        in
        part by a decrease in net interest income and an increase in noninterest
        expense.
 
 Net
        income increased by $389,000 to $2.50 million for the six months ended June
        30,
        2006, compared to $2.11 million for the six months ended June 30, 2005. The
        increase in net income was primarily due to an increase in noninterest income
        and a decrease in income tax expense, offset in part by an increase in
        noninterest expense and a decrease in net interest income.
 
 ***Net
        Interest Income*** .
        Net
        interest income before provision for loan losses decreased by $218,000 to
        $3.29
        million for the quarter ended June 30, 2006, from $3.51 million for the quarter
        ended June 30, 2005. The decrease is primarily due to an increase in the
        average
        balance of interest-bearing liabilities and an increase in the average cost
        of
        funds, offset in part by an increase in the average balance of interest-earning
        assets and an increase in the yield on interest-earning assets. The interest
        rate spread (i.e., the difference in the average yield on assets and average
        cost of liabilities) decreased to 2.62% for the quarter ended June 30, 2006,
        from 2.93% for the quarter ended June 30, 2005. The decrease in interest
        rate
        spread primarily reflects the increase in the overall cost of interest-bearing
        liabilities, offset in part by an increase in the yield on interest-earning
        assets. The increase in the cost of interest-bearing liabilities primarily
        reflects the repricing of interest-bearing liabilities at higher current
        market
        interest rates and the growth of interest-bearing liabilities in higher cost
        certificates of deposit and borrowed funds. Also contributing to the increase
        of
        the cost of funds is the continuing shift of lower cost non-maturing deposits
        into higher cost short-term certificates of deposit.
 
 Net
        interest income before provision for loan losses decreased by $306,000 to
        $6.61
        million for the six months ended June 30, 2006, from $6.92 million for the
        six
        months ended June 30, 2005. The decrease is primarily due to an increase
        in the
        average balance of interest-bearing liabilities and an increase in the average
        cost of funds, offset in part by an increase in the average balance of
        interest-earning assets and an increase in the yield on interest-earning
        assets.
        The interest rate spread (i.e., the difference in the average yield on assets
        and average cost of liabilities) decreased to 2.62% for the six months ended
        June 30, 2006, from 2.92% for the six months ended June 30, 2005. The decrease
        in interest rate spread primarily reflects the increase in the overall cost
        of
        interest-bearing liabilities, offset in part by an increase in the yield
        on
        interest-earning assets. The increase in the cost of interest-bearing
        liabilities primarily reflects the repricing of interest-bearing liabilities
        at
        higher current market interest rates and the growth of interest-bearing
        liabilities in higher cost certificates of deposit and borrowed funds. Also
        contributing to the increase of the cost of funds is the shift of lower cost
        non-maturing deposits into higher cost short-term certificates of
        deposit.
 
 ***Interest
        Income*** .
        Interest income increased by $363,000 to $6.95 million for the quarter ended
        June 30, 2006, compared to $6.59 million for the quarter ended June 30, 2005.
        The increase in interest income was primarily due to an increase in the average
        balance of interest-earning assets and an increase in the yield on
        interest-earning assets. The average balance of interest-earning assets
        increased $15.3 million to $462.3 million for the quarter ended June 30,
        2006,
        from $447.0 million for the quarter ended June 30, 2005. The average yield
        on
        interest-earning assets increased to 6.02% for the quarter ended June 30,
        2006,
        from 5.90% for the quarter ended June 30, 2005, primarily due to an increase
        in
        market interest rates on consumer loans and adjustable rate mortgage loans.
        The
        increase in the average balance of interest-earning assets primarily reflects
        increases in the average balances of first mortgage loans and consumer loans,
        offset in part by a decrease in securities available-for-sale. The increase
        in
        the average balance of first mortgage loans was primarily derived from
        originations of first mortgage loans secured by one-to-four family and
        commercial real estate, purchases of first mortgage loans secured primarily
        by
        commercial real estate and multifamily residences, which originations and
        purchases were offset in part by payments, prepayments and sales of loans
        during
        the twelve months ended June 30, 2006. This reflects the Company's continued
        emphasis on real estate lending. The decrease in the average balance of
        securities available-for-sale was derived from payments and calls of securities,
        offset in part by purchases during the twelve months ended June 30, 2006.
        See
“Financial Condition” above.
 
 Interest
        income increased by $830,000 to $13.73 million for the six months ended June
        30,
        2006, compared to $12.90 million for the six months ended June 30, 2005.
        The
        increase in interest income is due to an increase in the average balance
        of
        interest-earning assets and an increase in the average yield on interest-earning
        assets. The average balance of interest-earning assets increased $21.1 million
        to $462.1 million for the six months ended June 30, 2006, from $441.0 million
        for 2005. The average yield on interest-earning assets increased to 5.95%
        for
        the six months ended June 30, 2006, from 5.86% for the six months ended June
        30,
        2005, primarily due to the repricing of interest-earning assets at generally
        higher current market interest rates. The increase in the average balance
        of
        interest-earning assets primarily reflects increases in the average balances
        of
        first mortgage loans and consumer loans, offset in part by a decrease in
        securities available-for-sale. The increase in the average balance of first
        mortgage loans was primarily derived from originations of first mortgage
        loans
        secured by one-to-four family residences and commercial real estate, purchases
        of first mortgage loans secured primarily by commercial real estate and
        multifamily residences, which originations and purchases were offset in part
        by
        payments, prepayments and sales of loans during the twelve months ended June
        30,
        2006. This reflects the Company's continued emphasis on residential lending.
        The
        decrease in the average balance of securities available-for-sale was derived
        from payments and calls of securities, offset in part by purchases during
        the
        twelve months ended June 30, 2006. See “Financial Condition.”
 
 ***Interest
        Expense*** .
        Interest expense increased by $581,000 to $3.66 million for the quarter ended
        June 30, 2006, compared to $3.08 million for the quarter ended June 30, 2005.
        The increase in interest expense was due to an increase in the average balance
        of interest-bearing liabilities and an increase in the average cost of funds.
        The average balance of interest-bearing liabilities increased $16.2 million
        to
        $432.0 million for the quarter ended June 30, 2006, from $415.8 million for
        the
        quarter ended June 30, 2005. The increase in the average balance of
        interest-bearing liabilities primarily reflects an increase in the average
        balances of certificates of deposit and borrowed funds, offset in part by
        decreases in NOW, money market, and savings balances. The increase in average
        interest-bearing liabilities was due in part to the Company’s utilization of
        brokered certificates of deposit, which increased $1.8 million for the three
        months ended June 30, 2006. The average cost of funds increased to 3.40%
        for the
        quarter ended June 30, 2006, from 2.97% for the quarter ended June 30, 2005,
        due
        to an increase in the current market interest rates, a shift of core deposits
        into higher cost certificates of deposits, and an increase in certificates
        of
        deposit and borrowed funds.
 
 Interest
        expense increased by $1.13 million to $7.11 million for the six months ended
        June 30, 2006, compared to $5.98 million for the six months ended June 30,
        2005.
        The increase in interest expense was due to an increase in the average balance
        of interest-bearing liabilities and an increase in the average cost of funds.
        The average balance of interest-bearing liabilities increased $20.2 million
        to
        $430.5 million for the six months ended June 30, 2006, from $410.3 million
        for
        the six months ended June 30, 2005. The increase in the average balance of
        interest-bearing liabilities primarily reflects an increase in the average
        balances of certificates of deposit and borrowed funds, offset in part by
        decreases in NOW, money market and savings balances. The increase in average
        interest-bearing liabilities was due in part to the Company’s utilization of
        brokered certificates of deposit, which increased $5.6 million for the six
        months ended June 30, 2006. The average cost of funds increased to 3.33%
        for the
        six months ended June 30, 2006, from 2.94% for the six months ended June
        30,
        2005, due to an increase in the current market rates, a shift of core deposits
        into higher cost certificates of deposit, and an increase in certificates
        of
        deposit and borrowed funds.
 
 
 
 The
        following table sets forth certain information relating to the Company's
        average
        balance sheets and reflects the average yield on assets and average cost
        of
        liabilities for the three months and six months ended June 30, 2006 and 2005,
        respectively.
  **For
                  the Three Months Ended June 30,****2006**
              
              **2005****Average**
                **Balance**
              
              **Interest**
              
              **Average**
                **Yield/Cost**
              
              **Average**
                **Balance**
              
              **Interest**
              
              **Average**
                **Yield/Cost**(Dollars
                  in thousands)Assets:Interest-earning
                  assets:Loans
              
              $
              439,701
              
              $
              6,695
              
              
              6.09
              %
              $
              422,318
              
              $
              6,324
              
              
              5.99
              %Securities
                  available-for-sale
              
              
              21,919
              
              
              249
              
              
              4.55
              
              
              22,878
              
              
              252
              
              
              4.41Interest-bearing
                  cash
              
              
              679
              
              
              7
              
              
              3.88
              
              
              1,792
              
              
              12
              
              
              2.70Total
                  interest-earning assets
              
              
              462,299
              
              
              6,951
              
              
              6.02
              %
              
              446,988
              
              
              6,588
              
              
              5.90
              %Noninterest-earning
                  assets
              
              
              28,871
              
              
              
              
              
              
              
              
              28,480Total
                  assets
              
              $
              491,170
              
              
              
              
              
              
              
              $
              475,468Liabilities
                  and Equity:Interest-bearing
                  liabilities:NOW
                  and money market savings
              
              $
              85,889
              
              $
              264
              
              
              1.23
              %
              $
              98,072
              
              $
              268
              
              
              1.09
              %Passbook
                  savings
              
              
              27,095
              
              
              22
              
              
              0.32
              
              
              29,716
              
              
              23
              
              
              0.31Certificates
                  of deposit
              
              
              208,665
              
              
              2,083
              
              
              4.00
              
              
              186,782
              
              
              1,638
              
              
              3.52Borrowed
                  funds
              
              
              110,373
              
              
              1,294
              
              
              4.70
              
              
              101,215
              
              
              1,153
              
              
              4.57Total
                  interest-bearing liabilities
              
              
              432,022
              
              $
              3,663
              
              
              3.40
              %
              
              415,785
              
              $
              3,082
              
              
              2.97
              %Noninterest-bearing
                  liabilities
              
              
              16,679
              
              
              
              
              
              
              
              
              16,560Total
                  liabilities
              
              
              448,701
              
              
              
              
              
              
              
              
              432,345Equity
              
              
              42,469
              
              
              
              
              
              
              
              
              43,123Total
                  liabilities and equity
              
              $
              491,170
              
              
              
              
              
              
              
              $
              475,468Net
                  interest income
              
              
              
              
              $
              3,288
              
              
              
              
              
              
              
              $
              3,506Net
                  interest rate spread
              
              
              
              
              
              
              
              
              2.62
              %
              
              
              
              
              
              
              
              2.93
              %Net
                  interest margin
              
              
              
              
              
              
              
              
              2.85
              %
              
              
              
              
              
              
              
              3.14
              %Ratio
                  of average interest-earning assetsto average
                  interest-bearing liabilities
              
              
              
              
              
              
              
              
              107.01
              %
              
              
              
              
              
              
              
              107.50
              %
   **For
                  the Six Months Ended June 30,****2006**
              
              **2005****Average**
                **Balance**
              
              **Interest**
              
              **Average**
                **Yield/Cost**
              
              **Average**
                **Balance**
              
              **Interest**
              
              **Average**
                **Yield/Cost**(Dollars
                  in thousands)Assets:Interest-earning
                  assets:Loans
              
              $
              439,304
              
              $
              13,225
              
              
              6.03
              %
              $
              416,389
              
              $
              12,398
              
              
              5.96
              %Securities
                  available-for-sale
              
              
              21,542
              
              
              476
              
              
              4.42
              
              
              23,243
              
              
              481
              
              
              4.14Interest-bearing
                  cash
              
              
              1,239
              
              
              25
              
              
              4.11
              
              
              1,362
              
              
              17
              
              
              2.54Total
                  interest-earning assets
              
              
              462,085
              
              
              13,726
              
              
              5.95
              %
              
              440,994
              
              
              12,896
              
              
              5.86
              %Noninterest-earning
                  assets
              
              
              28,772
              
              
              
              
              
              
              
              
              28,753Total
                  assets
              
              $
              490,857
              
              
              
              
              
              
              
              $
              469,747Liabilities
                  and Equity:Interest-bearing
                  liabilities:NOW
                  and money market savings
              
              $
              87,590
              
              $
              514
              
              
              1.18
              %
              $
              97,395
              
              $
              507
              
              
              1.05
              %Passbook
                  savings
              
              
              27,132
              
              
              43
              
              
              0.32
              
              
              29,367
              
              
              46
              
              
              0.31Certificates
                  of deposit
              
              
              207,309
              
              
              4,031
              
              
              3.92
              
              
              184,307
              
              
              3,177
              
              
              3.48Borrowed
                  funds
              
              
              108,464
              
              
              2,526
              
              
              4.70
              
              
              99,215
              
              
              2,249
              
              
              4.57Total
                  interest-bearing liabilities
              
              
              430,495
              
              $
              7,114
              
              
              3.33
              %
              
              410,284
              
              $
              5,979
              
              
              2.94
              %Noninterest-bearing
                  liabilities
              
              
              17,324
              
              
              
              
              
              
              
              
              16,850Total
                  liabilities
              
              
              447,819
              
              
              
              
              
              
              
              
              427,134Equity
              
              
              43,038
              
              
              
              
              
              
              
              
              42,613Total
                  liabilities and equity
              
              $
              490,857
              
              
              
              
              
              
              
              $
              469,747Net
                  interest income
              
              
              
              
              $
              6,612
              
              
              
              
              
              
              
              $$
              6,917Net
                  interest rate spread
              
              
              
              
              
              
              
              
              2.62
              %
              
              
              
              
              
              
              
              2.92
              %Net
                  interest margin
              
              
              
              
              
              
              
              
              2.86
              %
              
              
              
              
              
              
              
              3.14
              %Ratio
                  of average interest-earning assetsto
                  average interest-bearing liabilities
              
              
              
              
              
              
              
              
              107.34
              %
              
              
              
              
              
              
              
              107.49
              %
 
 ***Provision
        for Loan Losses*** .
        The
        Company's provision for loan losses was $60,000 and $70,000 for the quarters
        ended June 30, 2006 and 2005, respectively. The Company’s provision for loan
        losses was $120,000 for each of the six months ended June 30, 2006 and 2005.
        The
        Company establishes provisions for loan losses, which are charged to operations,
        in order to maintain the allowance for loan losses at a level which is deemed
        to
        be appropriate based upon an assessment of prior loss experience, industry
        standards, past due loans, economic conditions, the volume and type of loans
        in
        the Company's portfolio, and other factors related to the collectibility
        of the
        Company's loan portfolio. The Company’s total loan portfolio increased $10.5
        million, or 2.4%, from June 30, 2005 to June 30, 2006. This increase primarily
        consisted of increases in the one-to-four family real estate loans. The
        Company’s out-of-state loans decreased $13.3 million, or 8.6%, from June 30,
        2005 to June 30, 2006. The properties securing the loans purchased are primarily
        out of state and constitute a higher rate of risk than originated loans due
        to
        the size, locations and type of collateral securing such loans. The economic
        conditions in the Bank’s primary market areas remain stable. The net charge-offs
        were $59,000 for the six months ended June 30, 2006, compared to $88,000
        for the
        six months ended June 30, 2005 **.** The
        resulting allowance for loan loss was $3.4 million and $3.3 million at June
        30,
        2006 and June 30, 2005, respectively.
 
 The
        allowance for loan losses as a percentage of total loans receivable increased
        to
        0.76% at June 30, 2006 from 0.75% at June 30, 2005. The level of nonperforming
        loans was $2.12 million at June 30, 2006 and $551,000 at June 30,
        2005.
 
 Management
        believes that the allowance for loan losses is adequate as of June 30, 2006.
        While management estimates loan losses using the best available information,
        such as independent appraisals for significant collateral properties, no
        assurance can be made that future adjustments to the allowance will not be
        necessary based on changes in economic and real estate market conditions,
        further information obtained regarding problem loans, identification of
        additional problem loans, and other factors, both within and outside of
        management's control.
 
 ***Noninterest
        Income*** *.* Total
        noninterest income increased by $477,000, or 36.9%, to $1.77 million for
        the
        quarter ended June 30, 2006, from $1.29 million for the quarter ended June
        30,
        2005. The increase in noninterest income was due to an increase in fees
        associated with checking accounts, including overdraft fees. The increase
        in
        noninterest income was also due to an impairment of securities
        available-for-sale recognized during the quarter ended June 30, 2005. During
        the
        quarter ended June 30, 2005, the Company recorded an other-than-temporary
        impairment of $424,500 related to two Freddie Mac adjustable rate, perpetual
        preferred stocks with a face value of $2,499,000, due to the facts and
        circumstances surrounding these securities at the time, including the duration
        and amount of the unrealized loss in the securities, as well as the prospect
        for
        a change in market value within a reasonable period of time. These perpetual
        preferred stock issues are investment grade securities that are held in the
        Company’s available-for-sale securities portfolio.
 
 Total
        noninterest income increased by $1.2 million, or 48.9%, to $3.70 million
        for the
        six months ended June 30, 2006, from $2.48 million for the six months ended
        June
        30, 2005. The increase was due to increases in fees and service charges,
        loan
        prepayment fees, and abstract fees. Fees and service charges increased $253,000
        due primarily to an increase in fees associated with checking accounts,
        including overdraft fees. During the six months ended June 30, 2006, the
        Company
        recorded $444,000 in loan prepayment fees, compared to $217,000 for the six
        months ended June 30, 2005. Abstract fees increased $66,000 due to an increase
        in real estate activity. The increase in noninterest income was also due
        to an
        impairment of securities available-for-sale recognized during the six months
        ended June 30, 2005. During the six months ended June 30, 2005, the Company
        recorded an other-than-temporary impairment of $679,500 related to three
        Freddie
        Mac adjustable rate, perpetual preferred stocks with a face value of $3,499,000,
        due to the facts and circumstances surrounding these securities at the time,
        including the duration and amount of the unrealized loss in the securities,
        as
        well as the prospect for a change in market value within a reasonable period
        of
        time. These perpetual preferred stock issues are investment grade securities
        that are held in the Company’s available-for-sale securities
        portfolio.
 
 ***Noninterest
        Expense*** *.* Total
        noninterest expense increased by $191,000, or 6.3%, to $3.22 million for
        the
        quarter ended June 30, 2006, from $3.03 million for the quarter ended June
        30,
        2005. The increase is due primarily to increases in employee salaries and
        benefits expenses and data processing expenses. The Company's efficiency
        ratio
        for the quarter ended June 30, 2006 and 2005 was 63.60% and 63.05%,
        respectively. The Company's ratio of noninterest expense to average assets
        for
        the quarters ended June 30, 2006 and 2005 were 2.62% and 2.55%,
        respectively.
 
 Total
        noninterest expense increased by $646,000, or 10.9%, to $6.59 million for
        the
        six months ended June 30, 2006, from $5.95 million for the six months ended
        June
        30, 2005. The increase is primarily due to an increase in compensation, other
        operating expenses, and data processing expenses. The Company's efficiency
        ratio
        for the six months ended June 30, 2006 and 2005 was 63.97% and 63.27%,
        respectively. The Company's ratio of noninterest expense to average assets
        for
        the six months ended June 30, 2006 and 2005 were 2.69% and 2.53%,
        respectively.
 
 ***Income
        Taxes*** *.* Income
        taxes decreased by $146,000 to $525,000 for the quarter ended June 30, 2006,
        compared to $671,000 for the quarter ended June 30, 2005. The decrease was
        primarily due to the lack of deductibility of the other-than-temporary
        impairment of securities available-for-sale in 2005.
 
 Income
        taxes decreased by $127,000 to $1.10 million for the six months ended June
        30,
        2006, compared to $1.22 million for the six months ended June 30, 2005. The
        decrease was primarily due to the limited deductibility of the
        other-than-temporary impairment of securities available-for-sale in 2005,
        offset
        in part by an increase in pre-tax earnings.
 
 **OFF
        BALANCE SHEET ARRANGEMENTS**
 
 The
        Company is a party to off balance sheet arrangements in the normal course
        of
        business to meet the financing needs of its customers. These financial
        instruments consist primarily of commitments to extend credit. Those instruments
        involve, to varying degrees, elements of credit and interest rate risk in
        excess
        of the amount recognized in the statement of financial condition. The Company
        uses the same credit policies in making commitments and conditional obligations
        as it does for on-statement of financial condition instruments. The Company
        does
        require collateral or other security to support financial instruments with
        credit risks. No material changes in the Company's off-statement of financial
        condition arrangements have occurred since December 31, 2005.
 
  **CRITICAL
        ACCOUNTING POLICIES**
  The
        section of this report titled “Management’s Discussion and Analysis of Financial
        Condition and Results of Operations,” and the disclosures included within this
        report, are based on the Company’s consolidated financial statements. These
        statements have been prepared in accordance with accounting principles generally
        accepted in the United States of America. The financial information contained
        in
        these statements is, for the most part, based on approximate measures of
        the
        financial effects of transactions and events that have already occurred.
        However, the preparation of these statements requires management to make
        certain
        estimates and judgments that affect the reported amounts of assets, liabilities,
        revenues and expenses.
 
 The
        Company’s critical accounting policies are described in the Company’s 2005
        Annual Report on Form 10-K in the “Notes to Consolidated Financial Statements.”
Management, based on its consideration of accounting policies that involve
        the
        most complex and subjective estimates and judgments, has identified the
        Company’s most critical accounting policies to be that related to the allowance
        for loan losses and asset impairment judgments, including the recoverability
        of
        goodwill.
 
 The
        allowance for loan losses is established through a provision for loan losses
        charged to expense. Loans are charged against the allowance for loan losses
        when
        management believes that collectibility of the principal is unlikely. The
        Company has policies and procedures for evaluating the overall credit quality
        of
        its loan portfolio, including timely identification of potential problem
        credits. On a quarterly basis, management reviews the appropriate level for
        the
        allowance for loan losses, incorporating a variety of risk considerations,
        both
        quantitative and qualitative. Quantitative factors include the Company’s
        historical loss experience, delinquency and charge-off trends, collateral
        values, known information about individual loans and other factors. Qualitative
        factors include the general economic environment in the Company’s market area
        and the expected trend of those economic conditions. To the extent that actual
        results differ from forecasts and management’s judgment, the allowance for loan
        losses may be greater or less than future charge-offs.
 
 Asset
        impairment judgments include evaluating the decline in fair value of
        held-to-maturity and available-for-sale securities below their cost. Declines
        in
        fair value of held-to-maturity and available-for-sale securities below their
        cost that are deemed to be other-than-temporary are reflected in earnings
        as
        realized losses. In estimating other-than-temporary impairment losses,
        management considers (1) the length of time and the extent to which the fair
        value has been less than cost, (2) the financial condition and near-term
        prospects of the issuer, and (3) the intent and ability of the Company to
        retain
        its investment in the issuer for a period of time sufficient to allow for
        any
        anticipated recovery in fair value.
 
 Goodwill
        represents the excess of the acquisition cost over the fair value of the
        net
        assets acquired in a purchase acquisition. Goodwill is tested for impairment
        at
        least annually.
 
 **ITEM
        3.**
 
 **QUANTITATIVE
        AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**
 
 In
        management's opinion, there has not been a material change in the Company’s
        market risk profile since December 31, 2005. Please see the Company’s 2005
        Annual Report Form 10-K for a more detailed discussion of the Company’s interest
        rate sensitivity analysis.
 
 **ITEM
        4.**
 
 **CONTROLS
        AND PROCEDURES**
 
 Management,
        including the Company’s President and Chief Executive Officer and the
        Company’s Chief Financial Officer and Treasurer, has evaluated the effectiveness
        of the Company’s disclosure controls and procedures (as defined in Exchange Act
        Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this
        report. Based upon that evaluation, the President and Chief Executive
        Officer and the Chief Financial Officer and Treasurer concluded that the
        disclosure controls and procedures were effective to ensure that information
        required to be disclosed in the reports the Company files and submits under
        the
        Exchange Act is (i) recorded, processed, summarized and reported as and when
        required and (ii) accumulated and communicated to the Company’s management,
        including the Company’s President and Chief Executive Officer and the Company’s
        Chief Financial Officer and Treasurer, as appropriate to allow timely decisions
        regarding required disclosure.
 
 There
        have been no changes in the Company’s internal control over financial reporting
        identified in connection with the evaluation that occurred during the Company’s
        last fiscal quarter that has materially affected, or that is reasonably likely
        to materially affect, the Company’s internal control over financial
        reporting.
 
 
 
 
 **PART
        II. OTHER INFORMATION**
 
 **Item
        1. Legal Proceedings**
 
 The
        Company is not involved in any pending legal proceedings other than routine
        legal proceedings occurring in the ordinary course of business. The Company
        believes that these routine legal proceedings, in the aggregate, are immaterial
        to its financial condition and results of operations.
 
 **Item
        1A. Risk Factors**
 
 There
        have been no material changes to the risk factors disclosed on the Company’s
        2005 Annual Report Form 10-K.
 
 **Item
        2. Unregistered Sales of Equity Securities and Use of
        Proceeds**
 
 In
        January 2006, the Company approved a Stock Repurchase Plan (the “January 2006
        Repurchase Plan”), which provided for the repurchase of up to 100,000 shares of
        the Company’s common stock. At June 30, 2006, there were no shares remaining to
        be purchased under the plan. On March 30, 2006, the Company approved a new
        Repurchase Plan (the “March 2006 Repurchase Plan”), which provides for the
        repurchase of up to 100,000 shares of the Company’s common stock. This plan
        began upon the completion of the January 2006 Repurchase Plan. At June 30,
        2006,
        there were 97,750 shares which could be purchased under the March 2006
        Repurchase Plan.
 
 The
        following table provides information with respect to purchases made by or
        on
        behalf of the Company or any “affiliated purchases” (as defined in rule
        10b-18(a)(3) under the Securities Exchange Act of 1934), of the Company’s common
        stock during the three months ended June 30, 2006.
 
 Period
              
              Total
                  Number of
                Shares
                  Purchased
              
              Average
                  Price Paid
                Per
                  Share
              
              Total
                  Number of
                Shares
                  Purchased as
                Part
                  of Publicly
                Announced
                  Plans
              
              Maximum
                  Number of
                Shares
                  that May Yet
                Be
                  Purchased Under
                The
                  PlanApril
                  1, 2006 to
                April
                  30, 2006
              
              
              -
              
              
              -
              
              
              -
              
              
              114,150May
                  1, 2006 to
                May
                  31, 2006
              
              
              10,300
              
              $
              39.11
              
              
              10,300
              
              
              103,850June
                  1, 2006 to
                June
                  30, 2006
              
              
              6,100
              
              $
              39.60
              
              
              6,100
              
              
              97,750Total
              
              
              16,400
              
              
              
              
              
              16,400
 
 **Item
        3. Defaults Upon Senior Securities**
 
 Not
        applicable.
 
 
 
 
 **Item
        4. Submission of Matters to a Vote of Security Holders**
 
 The
        Company held its 2006 Annual Meeting of Stockholders on April 28, 2006. All
        proposals submitted to stockholders at the meeting were approved. At the
        meeting, the stockholders of the Company considered and voted upon the following
        matters:
 
 1.
        The
        election of the following individuals as directors for a three-year
        term:
  David
        M.
        Bradley
 Robert
        H.
        Singer, Jr.
 
 The
        results of the election of directors are as follows:
 
 FOR
              WITHELDDavid
                  M. Bradley
              1,258,841
              71,961Robert
                  H. Singer, Jr.
              1,313,759
              17,042
 
 There
        were no broker non-votes or abstentions on this proposal.
 
 The
        following directors’ terms of office continued after the meeting:
 
 Melvin
        R.
        Schroeder
 Randall
        L. Minear
 C.
        Thomas
        Chalstrom
 Mark
        M.
        Thompson
 Paul
        F.
        Bognanno
 
 2.  The
        approval of the North Central Bancshares, Inc. 2006 Stock Incentive Plan.
        The
        results of the election were as follows:
 
 FOR
              AGAINST
              ABSTAIN
              BROKER-NON
                  VOTES938,181
              102,526
              55,084
              235,011
 
 3.  The
        ratification of the engagement of McGladrey & Pullen LLP, as the Company’s
        independent registered public accounting firm for the 2006 fiscal year. The
        results of the election were as follows:
 
 FOR
              AGAINST
              ABSTAIN
              BROKER-NON
                  VOTES1,263,972
              66,043
              787
              0
 
 
 **Item
        5. Other Information**
 
 None.
 
 
 
 **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
              (8)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
              (8)10.2
              ESOP
                  Loan Documents, dated September 3, 1996
              (5)10.3
              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
              (8)10.11
              Form
                  of Employment Agreement between First Federal Savings Bank of Iowa
                  and C.
                  Thomas Chalstrom
              (7)10.12
              Form
                  of Employment Agreement between First Federal Savings Bank of Iowa
                  and
                  Kirk A. Yung
              (7)10.13
              Tax
                  Allocation Agreement between North Central Bancshares, Inc. and
                  Subsidiaries
              (2)10.14
              North
                  Central Bancshares, Inc. 2006 Stock Incentive Plan
              (9)10.15
              North
                  Central Bancshares, Inc. 2006 Incentive Award Plan
              (16)31
              Rule
                  13a-14(a)/15d-14(a) Certifications32
              Section
                  1350 Certifications
 
 (1)
              Incorporated
                  herein by reference to Registration Statement No. 33-80493 on Form
                  S-1 of
                  North Central Bancshares, Inc. (the "Registrant") filed with the
                  Securities and Exchange Commission, (the "Commission") on December
                  18,
                  1995, as amended.
 
 (2)
              Incorporated
                  herein by reference to the Exhibits to the Annual Report on Form
                  10-K of
                  the Registrant filed with the Commission on March 22,
                  2004.
 
 (3)
              Incorporated
                  herein by reference to the Exhibits to the Annual Report on Form
                  10-K of
                  the Registrant for fiscal year 1995, filed with the Commission
                  on March
                  29, 1996.
 
 (4)
              Incorporated
                  herein by reference to the Amended Schedule 14A of the Registrant
                  filed
                  with the Commission on August 19,
                  1996.
 
 (5)
              Incorporated
                  herein by reference to the Annual Report on Form 10-K of the Registrant
                  filed with the Commission on March 31,
                  1997.
 
 (6)
              Incorporated
                  herein by reference to the Annual Report on Form 10-K of the Registrant
                  filed with the Commission on March 31,
                  1998.
 
 (7)
              Incorporated
                  herein by reference to the Annual Report on Form 10-K of the Registrant
                  filed with the Commission on March 31,
                  2006.
 
 (8)
              Incorporated
                  herein by reference to the Annual Report on Form 10-K of the Registrant
                  filed with the Commission on March 29,
                  2002.
 
 (9)
              Incorporated
                  herein by reference to the Proxy Statement on Schedule 14A of the
                  Registrant filed with the Commission on March 20,
                  2006.
 
 (10)
              Incorporated
                  herein by reference to the Exhibits to the Form 10-Q of the Registrant
                  filed with the Commission on August 11,
                  2006.
  
  SIGNATURES
 
 Pursuant
        to the requirements of the Securities Exchange Act of 1934, the registrant
        has
        duly caused this report to be signed on its behalf by the undersigned thereunto
        duly authorized.
   NORTH
                CENTRAL
                BANCSHARES, INC.DATE:
                August 11, 2006
              BY:
              /s/
                David M. BradleyDavid
                  M. Bradley, Chairman, President and
                Chief
                  Executive Officer
 DATE:
                  August 11, 2006
                BY:
                /s/
                  David W. EdgeDavid
                      W. Edge, Chief Financial Officer and
                    Treasurer