<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

For the quarterly period ended JUNE 30, 2007

                                       OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from _________________ to _________________

                        Commission file number 000-50820


                        FIRST CLOVER LEAF FINANCIAL CORP.
                        ---------------------------------
        (Exact name of small business issuer as specified in its charter)


              Maryland                                   20-4797391
   -------------------------------                   -------------------
   (State or other jurisdiction of                    (I.R.S. Employer
    incorporation or organization)                   Identification No.)


  6814 Goshen Road, Edwardsville, IL                        62025
---------------------------------------                   ----------
(Address of principal executive office)                   (Zip Code)

Registrant's telephone number, including area code (618) 656-6122

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 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 [X] No [ ]

Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]

State by checkmark whether the Registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes [ ] No [X]

Indicate the number of shares outstanding of the issuer's classes of common
stock, as of the latest practicable date.

               Class                             Outstanding August 14, 2007
--------------------------------------           ---------------------------
Common Stock, par value $.10 per share                   8,759,811

<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.


                                   FORM 10-QSB

                       FOR THE QUARTER ENDED June 30, 2007

                                      INDEX

                                                                        PAGE NO.
                                                                        --------


PART I - Financial Information

Item 1.  Financial Statements

         Consolidated Balance Sheets                                          3

         Consolidated Statements of Income                                    4

         Consolidated Statements of Comprehensive Income                      5

         Consolidated Statements of Cash Flows                                6

         Notes to Consolidated Financial Statements                           8

Item 2.  Management's Discussion and Analysis or Plan of Operation           13

Item 3.  Controls and Procedures                                             23

PART II - Other Information                                                  24

Item 1.  Legal Proceedings                                                   24

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds         24

Item 3.  Defaults Upon Senior Securities                                     24

Item 4.  Submission of Matters to a Vote of Security Holders                 24

Item 5.  Other Information                                                   24

Item 6.  Exhibits                                                            24

Signatures                                                                   25

Certifications                                                               26


                                       2
<PAGE>
<TABLE>

                                                FIRST CLOVER LEAF FINANCIAL CORP.

                                                   CONSOLIDATED BALANCE SHEETS
                                                           (Unaudited)


                                                                                    JUNE 30,                 DECEMBER 31,
      Assets                                                                          2007                       2006
                                                                            -------------------------   -----------------------
<S>                                                                        <C>                         <C>
Cash and due from banks                                                    $              12,480,249   $            72,142,452
Federal funds sold                                                                        22,778,880                20,522,501
                                                                            -------------------------   -----------------------
   TOTAL CASH AND CASH EQUIVALENTS                                                        35,259,129                92,664,953
Interest-bearing time deposits                                                               335,662                   285,668
Securities available for sale                                                             54,617,402                45,831,623
Federal Home Loan Bank stock                                                               5,603,773                 5,603,773
Loans, net of allowance for loan losses
   of $1,834,871 and $1,710,247, respectively                                            257,713,373               244,022,905
Loans held for sale                                                                          782,336                 1,002,318
Property and equipment, net                                                                7,985,709                 6,892,679
Accrued interest receivable                                                                1,722,083                 1,555,823
Mortgage servicing rights                                                                    403,681                   412,013
Goodwill                                                                                   9,402,608                 9,402,608
Core deposit intangible                                                                    1,760,001                 2,074,000
Other assets                                                                                 837,189                   543,423
                                                                            -------------------------   -----------------------
      TOTAL ASSETS                                                         $             376,422,946   $           410,291,786
                                                                            =========================   =======================
      LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
  Deposits:
    Non-interest bearing deposits                                          $              13,196,987   $            22,037,287
    Interest bearing deposits                                                            234,280,155               248,792,359
                                                                            -------------------------   -----------------------
      TOTAL DEPOSITS                                                                     247,477,142               270,829,646
Federal Home Loan Bank advances                                                           10,399,919                10,325,920
Securities sold under agreement to repurchase                                             18,879,667                29,437,580
Subordinated debentures                                                                    3,820,048                 3,798,016
Accrued interest payable                                                                     793,694                   685,617
Other liabilities                                                                          1,580,001                 1,886,482
                                                                            -------------------------   -----------------------
      TOTAL LIABILITIES                                                                  282,950,471               316,963,261
                                                                            -------------------------   -----------------------
Commitments, Contingencies and Credit Risk
Stockholders' Equity:
    Preferred stock, $.10 par value; 10,000,000 shares
      authorized; no shares issued                                                                 -                         -
   Common stock, $.10 par value; 20,000,000 shares authorized;
      9,074,031 shares issued and outstanding                                                907,403                   907,403
Additional paid-in capital                                                                71,036,888                71,031,467
Retained earnings                                                                         22,444,494                22,212,827
Accumulated other comprehensive (loss)                                                      (228,514)                  (92,817)
Unearned Employee Stock Ownership Plan shares                                               (687,796)                 (730,355)
                                                                            -------------------------   -----------------------
      TOTAL STOCKHOLDERS' EQUITY                                                          93,472,475                93,328,525
                                                                            -------------------------   -----------------------
      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $             376,422,946   $           410,291,786
                                                                            =========================   =======================

See Accompanying Notes to Consolidated Financial Statements.

                                                                3
<PAGE>

                                               CONSOLIDATED STATEMENTS OF INCOME
                                                          (Unaudited)


                                                                     THREE MONTHS ENDED               SIX MONTHS ENDED
                                                                          JUNE 30,                         JUNE 30,
                                                                -----------------------------   -----------------------------
                                                                     2007            2006            2007            2006
                                                                --------------  -------------   -------------   -------------
Interest and dividend income:
Interest and fees on loans                                     $    4,364,418  $   1,752,582   $   8,543,465   $   3,445,986
Interest on taxable securities                                        645,417        164,313       1,251,387         303,023
Interest on non-taxable securities                                     38,672              -          76,444               -
FHLB dividends                                                         38,689         47,498          90,039          94,272
Interest-bearing deposits and federal funds sold                      450,312         54,089       1,081,789          89,786
                                                                --------------  -------------   -------------   -------------
      TOTAL INTEREST AND DIVIDEND INCOME                            5,537,508      2,018,482      11,043,124       3,933,067
                                                                --------------  -------------   -------------   -------------
Interest on deposits                                                2,441,951        988,291       4,907,452       1,860,859
Interest on Federal Home Loan Bank advances                           134,870              -         281,124               -
Interest on securities sold under agreement to repurchase             237,704              -         424,453               -
Interest on subordinated debentures                                    74,397              -         147,841               -
                                                                --------------  -------------   -------------   -------------
      TOTAL INTEREST EXPENSE                                        2,888,922        988,291       5,760,870       1,860,859
                                                                --------------  -------------   -------------   -------------
      NET INTEREST INCOME                                           2,648,586      1,030,191       5,282,254       2,072,208
Provision for loan losses                                              76,000              -         121,000               -
                                                                                                -------------   -------------
                                                                --------------  -------------
      NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES           2,572,586      1,030,191       5,161,254       2,072,208
                                                                --------------  -------------   -------------   -------------
Noninterest income:
    Service fees on deposit accounts                                   49,155              -          88,371               -
    Other service charges and fees                                     35,717              -          69,470               -
    Loan servicing fees                                                30,163              -          57,946               -
    Gain on sale of loans                                              16,288              -          43,551               -
    Other                                                               1,927          1,848           3,149           2,940
                                                                --------------  -------------   -------------   -------------
       Total noninterest income                                       133,250          1,848         262,487           2,940
                                                                --------------  -------------   -------------   -------------
Noninterest expense:
   Compensation and employee benefits                                 715,319        231,526       1,414,102         461,189
   Occupancy expense                                                  205,797         28,499         411,936          57,133
   Data processing services                                           103,220         82,799         209,810         101,254
   Advertising                                                        104,819         56,065         190,142         132,634
   Director fees                                                       60,300         54,300         118,600          98,750
   Professional fees                                                  124,782         34,469         247,541          85,555
   Amortization of core deposit intangible                            157,000              -          313,999              -
   Amortization of mortgage servicing rights                           20,542              -          41,085               -
   Other                                                              231,004         74,667         418,772         130,049
                                                                --------------  -------------   -------------   -------------
      Total noninterest expense                                     1,722,783        562,325       3,365,987       1,066,564
                                                                --------------  -------------   -------------   -------------
      INCOME BEFORE INCOME TAXES                                      983,053        469,714       2,057,754       1,008,584
Income taxes                                                          367,800        178,000         754,550         383,000
                                                                --------------  -------------   -------------   -------------
      NET INCOME                                               $      615,253  $     291,714   $   1,303,204   $     625,584
                                                                ==============  =============   =============   =============
Basic and diluted income per share (see Note 5)                $         0.07  $        0.04   $        0.15   $        0.08
                                                                ==============  =============   =============   =============
Dividends per share                                            $         0.06  $        0.06   $        0.12   $        0.12
                                                                ==============  =============   =============   =============

See Accompanying Notes to Consolidated Financial Statements.

                                                               4
<PAGE>

                                        CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                                          (Unaudited)


                                                                     THREE MONTHS ENDED               SIX MONTHS ENDED
                                                                          JUNE 30,                         JUNE 30,
                                                                -----------------------------   -----------------------------
                                                                     2007            2006            2007            2006
                                                                --------------  -------------   -------------   -------------

Net income                                                     $      615,253  $     291,714   $   1,303,204   $     625,584
Other comprehensive income:
   Unrealized gains (losses) on securities
        arising during the period, net of tax                        (162,540)       (33,230)       (135,697)        (83,324)
                                                                --------------  -------------   -------------   -------------
Comprehensive income                                           $      452,713  $     258,484   $   1,167,507   $    542,260
                                                                ==============  =============   =============   =============

See Accompanying Notes to Consolidated Financial Statements.

                                       5
<PAGE>

                                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                       (Unaudited)


                                                                                       SIX MONTHS ENDED
                                                                                           JUNE 30,
                                                                      --------------------------------------------------
                                                                              2007                        2006
                                                                      ----------------------      ----------------------
Cash flows from operating activities:
   Net income                                                        $            1,303,204      $              625,584
   Adjustments to reconcile net income to net
      cash provided by operating activities:
      Amortization of:
         Deferred loan origination (fees) costs, net                                (34,489)                       (695)
         Premiums and discounts on securities                                       (22,047)                      6,117
         Premiums and discounts on loans                                           (280,999)                          -
         Core deposit intangible                                                    313,999                           -
         Mortgage servicing rights                                                   41,085                           -
         Premiums and discounts on deposits                                          (3,000)                          -
         Premiums and discounts on FHLB advances                                     73,999                           -
         Premiums and discounts on subordinated debt                                 22,032                           -
      Provision for loan losses                                                     121,000                           -
      Depreciation expense                                                          206,040                      27,834
      ESOP expense                                                                   47,980                      37,338
      Gain on sale of loans                                                         (43,551)                          -
      Proceeds from sales of loans held for sale                                  1,840,342                           -
      Originations of loans held for sale                                        (1,576,809)                          -
      Change in assets and liabilities:
        Decrease (increase) in accrued interest receivable                         (166,260)                    (65,829)
        Decrease (increase) in other assets                                        (326,519)                   (965,266)
        Increase (decrease) in accrued interest payable                             108,077                         761
        Increase (decrease) in other liabilities                                   (226,957)                    (97,685)
                                                                      ----------------------      ----------------------
           NET CASH FLOWS FROM OPERATING ACTIVITIES                               1,397,127                    (431,841)
                                                                      ----------------------      ----------------------
Cash flows from investing activities:
   Purchase of interest-bearing time deposits                                       (49,994)                          -
   Available for sale securities:
      Purchases                                                                 (11,629,559)                 (1,769,463)
      Proceeds from calls and maturities                                          1,800,000                     750,000
      Proceeds from pay-downs                                                       850,606                           -
  Held to maturity securities:
      Proceeds from pay-downs                                                             -                      34,520
  Redemption of Federal Home Loan Bank stock                                              -                   2,111,461
  Loan originations, net of principal collected                                 (13,495,980)                 (3,516,934)
  Purchase of property and equipment                                             (1,299,070)                    (24,559)
                                                                      ----------------------      ----------------------
           NET CASH FLOWS FROM INVESTING ACTIVITIES                  $          (23,823,997)     $           (2,414,975)
                                                                      ----------------------      ----------------------

                                                                                                              (Continued)

                                                            6
<PAGE>

                                            CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                         (Unaudited)


(Continued)
                                                                                         SIX MONTHS ENDED
                                                                                             JUNE 30,
                                                                      ------------------------------------------------------
                                                                               2007                          2006
                                                                      ------------------------      ------------------------

Cash flows from financing activities:
   Net increase (decrease) in deposits                               $            (23,349,504)     $             40,779,552
   Net increase (decrease) in other borrowings                                    (10,557,913)                            -
   Cash dividends                                                                  (1,071,537)                     (404,554)
                                                                      ------------------------      ------------------------
         NET CASH FLOWS FROM FINANCING ACTIVITIES                                 (34,978,954)                   40,374,998
                                                                      ------------------------      ------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                              (57,405,824)                   37,528,182
Cash and cash equivalents at beginning of period                                   92,664,953                     3,427,901
                                                                      ------------------------      ------------------------
Cash and cash equivalents at end of period                           $             35,259,129      $             40,956,083
                                                                      ========================      ========================


Supplemental disclosures of cash flow information:
  Cash paid (received) during the period for:
     Interest                                                        $              5,559,762      $              1,860,098
     Income taxes, net of refunds                                    $              1,267,108      $                467,000

See Accompanying Notes to Consolidated Financial Statements.

                                                              7
</TABLE>
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(1)  The information contained in the accompanying consolidated financial
     statements is unaudited. In the opinion of management, the consolidated
     financial statements contain all adjustments (none of which were other than
     normal recurring entries) necessary for a fair statement of the results of
     operations for the interim periods. The results of operations for the
     interim periods are not necessarily indicative of the results which may be
     expected for the entire fiscal year. These consolidated financial
     statements should be read in conjunction with the consolidated financial
     statements of First Clover Leaf Financial Corp., (Company) for the year
     ended December 31, 2006 contained in the 2006 Annual Report to stockholders
     that is filed as an exhibit to the Company's Annual Report on Form 10-KSB.

     On January 2, 2001, First Federal Savings & Loan Association of
     Edwardsville (Association) reorganized into the two-tier mutual holding
     company structure. As part of the reorganization, the Association became a
     capital stock savings and loan association and a wholly-owned subsidiary of
     First Federal Financial Services, Inc., which became the majority-owned
     subsidiary of First Federal Financial Services, MHC (MHC). On November 20,
     2003, the Board of Directors adopted a plan to complete an initial public
     offering of the common stock of the Company. In connection with the
     offering, the Company offered its common stock to the depositors of the
     Association as of specified dates and to an employee stock ownership plan.
     The initial public offering was consummated on June 28, 2004 through the
     sale and issuance by the Company of 1,764,027 shares of common stock at $10
     per share. In addition, the Company issued 2,156,033 shares to the MHC,
     resulting in the MHC retaining a 55% ownership percentage in the Company.
     Net proceeds from the sale of common stock were $16,011,975 after deduction
     of conversion costs of $746,285, and unearned compensation related to
     shares issued to the ESOP.

     On February 3, 2006, the Company announced that the Board of Directors of
     the MHC adopted a Plan of Conversion and Reorganization to convert the MHC
     to a capital stock corporation and conduct a simultaneous stock offering
     (Conversion). In addition, on February 3, 2006, the Company entered into a
     definitive merger agreement to acquire Clover Leaf Financial Corp., the
     holding company of Clover Leaf Bank, an Illinois state bank headquartered
     in Edwardsville, Illinois (collectively Clover Leaf), pursuant to which,
     upon completion of the Conversion, First Clover Leaf Financial Corp., a new
     Maryland corporation (First Clover Leaf or Company) would acquire all of
     the common stock of Clover Leaf (Acquisition).

     The Conversion and Acquisition was consummated on July 10, 2006 through the
     sale and issuance by First Clover Leaf of 4,174,125 shares of common stock
     at $10 per share. Net proceeds from the sale of common stock were $40.14
     million after deduction of conversion costs of $1.60 million. In addition,
     each outstanding share of the Company was converted into the right to
     receive 1.936 shares of First Clover Leaf's common stock, or 3,415,193
     total shares. Shareholders of Clover Leaf Financial Corp. received total
     merger consideration of $21.2 million, consisting of 1,484,800 shares of
     First Clover Leaf common stock and approximately $6.4 million of cash, or
     $41.56 of merger consideration per share of Clover Leaf Financial Corp. In
     addition, fractional shares in the aggregate, or 87 shares, were redeemed
     for cash. As a result of the Conversion and Acquisition, First Clover Leaf
     has 9,074,031 shares issued and outstanding. Clover Leaf Bank merged its
     operations into First Federal Savings and Loan Association of Edwardsville
     as of July 10, 2006 and was renamed First Clover Leaf Bank (Bank). First
     Clover Leaf's common stock is traded on the NASDAQ Capital Market under the
     symbol "FCLF." As required by current regulations, a liquidation account in
     the amount of $20.7 million was established in conjunction with the
     Conversion.

                                       8
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


     As a result, each eligible account holder or supplemental account holder
     will be entitled to a proportionate share of this account in the event of a
     complete liquidation of the Bank, and only in such event. This share will
     be reduced if the eligible account holder's or supplemental account
     holder's deposit balance falls below the amounts on the date of record and
     will cease to exist if the account is closed. The liquidation account will
     never be increased despite any increase after Conversion in the related
     deposit balance. The Bank may not declare, pay a dividend on, or repurchase
     any of its capital stock of the Bank, if the effect thereof would cause
     retained earnings to be reduced below the liquidation account amount or
     regulatory capital requirements. Any purchase of First Clover Leaf common
     stock will be conducted in accordance with applicable laws and regulations.
     First Clover Leaf expects that, subject to regulatory capital requirements
     of the Bank, financial condition and results of operations for First Clover
     Leaf and the Bank, quarterly dividends will continue to be paid in the
     future. No assurances can be given that dividends will be paid in the
     future.

     On July 10, 2007, the Board of Directors of the Company announced the
     authorization of a stock repurchase program pursuant to which the Company
     intends to repurchase up to 5% of its issued and outstanding shares, or up
     to approximately, 453,700 shares. Since the Board of Directors' decision to
     repurchase stock, the Company has repurchased 314,220 shares of common
     stock at an average price of $10.85 per share.

     On July 24, 2007, the Board of Directors of the Company declared a cash
     dividend on the Company's common stock of $.06 per share for the quarter
     ended June 30, 2007. The dividend will be payable to stockholders of record
     as of August 17, 2007 and is expected to be paid on August 24, 2007.

(2)  On July 10, 2006, the Company acquired Clover Leaf Financial Corp., the
     parent company of Clover Leaf Bank. Shareholders of Clover Leaf Financial
     Corp. received total merger consideration of $21.2 million, consisting of
     1,484,800 shares of First Clover Leaf common stock and approximately $6.4
     million of cash, or $41.56 of merger consideration per share of Clover Leaf
     Financial Corp. The Company incurred acquisition costs of $343,504. The
     acquisition was accounted for using the purchase method under Statement of
     Financial Accounting Standards (SFAS) No. 141, "Business Combinations."
     Fair value adjustments on the assets acquired and liabilities assumed are
     amortized over the estimated useful lives of the related assets and
     liabilities. The core deposit intangible of $2.39 million is amortized over
     7.6 years using the sum-of-the-years digits method. First Clover Leaf
     recorded fair value accounting adjustments of $329,000, net of income taxes
     of $202,000 and core deposit intangibles of $1.48 million, net of income
     taxes of $909,000. Based upon Clover Leaf Financial Corp. stockholders'
     equity of $10.33 million, goodwill amounted to $9.4 million at July 10,
     2006. As a result of the Acquisition, the Bank operates three full-service
     offices (following closure of one existing office), and increases its
     market share and scale of operations.

                                       9
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


     The following pro forma information, including the effects of the purchase
     accounting adjustments, summarizes the results of operations for the three
     and six months ended June 30, 2006 as though the acquisition had been
     completed as of the beginning of the period.

<TABLE>
                                                             THREE            SIX
                                                             MONTHS          MONTHS
                                                             ENDED           ENDED
                                                            JUNE 30,        JUNE 30,
                                                         -------------   -------------
                                                             2006            2006
                                                         -------------   -------------
<S>                                                      <C>             <C>
     Total interest income                               $  4,302,794    $  8,344,792
     Total interest expense                                 2,188,903       3,990,253
                                                         -------------   -------------
           Net interest income                              2,113,891       4,354,539
     Provision for loan losses                                 30,000          46,500
     Total noninterest income                                 101,998         193,033
     Total noninterest expense                              1,695,466       3,355,074
                                                         -------------   -------------
           Income before income taxes                         490,423       1,145,998
     Income taxes                                             188,301         432,503
                                                         -------------   -------------
           Net income                                    $    302,122    $    713,495
                                                         =============   =============
     Pro forma basic and diluted income per share        $       0.04    $       0.10
                                                         =============   =============
     Pro forma weighted-average shares outstanding          7,446,075       7,442,800
                                                         =============   =============
</TABLE>

     The pro forma results of operations do not purport to be indicative of the
     results which would actually have been obtained had the acquisition
     occurred on the date indicated or which may be obtained in the future.

(3)  The gross carrying value and accumulated amortization of the core deposit
     intangible is presented below:


                                            JUNE 30,         DECEMBER 31,
                                              2007               2006
                                       -----------------   -----------------

     Core deposit intangible           $       2,391,000   $      2,391,000
     Accumulated amortization                   (630,999)          (317,000)
                                       -----------------   -----------------
        Total                          $       1,760,001   $      2,074,000
                                       =================   =================

     Amortization expense on core deposit intangible for the three and six
     months ended June 30, 2007 was $157,000 and $313,999, respectively. There
     was no amortization expense of core deposit intangible for the three and
     six months ended June 30, 2006.

                                       10
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


     Estimated amortization expense on core deposit intangible for the six
     months ended December 31, 2007 and each of the five succeeding fiscal years
     is as follows:

                                                        CORE
                                                       DEPOSIT
                                                      INTANGIBLE
                                                    --------------

     Six months ended December 31, 2007             $     232,001
     Year ended December 31, 2008                         403,000
     Year ended December 31, 2009                         297,000
     Year ended December 31, 2010                         224,000
     Year ended December 31, 2011                         196,000
     Year ended December 31, 2012                         196,000

(4)  Unrealized losses and fair value, aggregated by investment category and
     length of time that individual securities have been in a continuous
     unrealized loss position, as of June 30, 2007, are summarized as follows:

<TABLE>
                                                  LESS THAN 12 MONTHS            12 MONTHS OR MORE                  TOTAL
                                                FAIR        UNREALIZED         FAIR       UNREALIZED         FAIR       UNREALIZED
                                                VALUE           LOSS           VALUE         LOSS            VALUE          LOSS
                                            --------------  -----------   --------------  -----------   --------------  -----------
<S>                                         <C>             <C>           <C>             <C>           <C>             <C>
     Securities available for sale:
       U.S. government agency obligations   $  22,252,499   $  169,008    $  8,054,164    $  103,694    $   30,306,663  $  272,702
       Corporate bonds                                  -            -       3,444,108       151,838         3,444,108     151,838
       State and municipal securities             349,725        6,837               -             -           349,725       6,837
       Mortgage-backed securities               2,566,095       28,898         232,889         5,494         2,798,984      34,392
                                            --------------  -----------   --------------  -----------   --------------  -----------
                                            $  25,168,319   $  204,743    $  11,731,161   $  261,026    $   36,899,480  $  465,769
                                            ==============  ===========   ==============  ===========   ==============  ===========
</TABLE>

     For all of the above securities, the unrealized losses are primarily due to
     changes in interest rates and, as such, are considered to be temporary by
     the Company.

     During July, 2006 the Company transferred securities of $317,505 from held
     to maturity to available for sale. The unrealized loss at the transfer date
     was $18,941. The decision to transfer is consistent with management's
     current practice of classifying all securities purchased as available for
     sale. The Company will be unable to classify securities as held to maturity
     until a minimum of one year after the transfer date.

(5)  Basic and diluted income per share (EPS) represents income available to
     common stockholders divided by the weighted average number of common shares
     outstanding. ESOP shares which are committed to be released are considered
     outstanding for basic and diluted income per share. The weighted-average
     share number for the three and six months ended June 30, 2006 has been
     restated to reflect the additional shares issued to First Federal
     shareholders through the Conversion described in Note 1.

                                       11
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

<TABLE>
                                                                   THREE MONTHS ENDED               SIX MONTHS ENDED
                                                                        JUNE 30,                         JUNE 30,
                                                              -----------------------------   -----------------------------
                                                                   2007            2006            2007            2006
                                                              --------------  -------------   -------------   -------------
<S>                                                           <C>             <C>             <C>             <C>
     Net income available to common stockholders              $     615,253   $    291,714    $  1,303,204    $    625,584
                                                              ==============  =============   =============   =============

     Basic potential common shares:
        Weighted average shares outstanding                       9,074,031      7,589,318       9,074,031       7,589,318
        Weighted average unallocated Employee Stock
           Ownership Plan shares                                   (141,374)      (149,878)       (142,437)       (150,941)
                                                              --------------  -------------   -------------   -------------
               Basic weighted average shares outstanding          8,932,657      7,439,439       8,931,594       7,438,376

     Dilutive potential common shares                                     -              -               -               -
                                                              --------------  -------------   -------------   -------------

     Dilutive weighted average shares outstanding             $   8,932,657   $  7,439,439    $  8,931,594    $  7,438,376
                                                              ==============  =============   =============   =============

     Basic and diluted income per share                       $        0.07   $       0.04    $       0.15    $       0.08
                                                              ==============  =============   =============   =============
</TABLE>

(6)  The Company adopted the provisions of Financial Accounting Standards Board
     Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an
     Interpretation of FASB Statement No. 109" ("FIN 48"), effective January 1,
     2007. No adjustment was recognized for uncertain tax positions. The Company
     is subject to U.S. Federal income taxes, as well as State of Illinois
     income taxes. Tax years ending December 31, 2004 through December 31, 2006
     remain open to examination by these jurisdictions. The Company recognizes
     interest and penalties related to tax positions in income tax expense. At
     June 30, 2007, there was no accrual for uncertain tax positions or related
     interest.

                                       12
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

FORWARD-LOOKING STATEMENTS

When used in this Form 10-QSB, the words or phrases "will likely result," "are
expected to," "will continue," "is anticipated," "estimate," "project" or
similar expressions are intended to identify "forward-looking statements" within
the meaning of the Private Securities Litigation Act of 1995. Such statements
are subject to certain risks and uncertainties including changes in economic
conditions in our market area, changes in policies by regulatory agencies,
fluctuations in interest rates, demand for loans in our market area, and
competition that could cause actual results to differ materially from historical
earnings and those presently anticipated or projected. The Company wishes to
caution you not to place undue reliance on any such forward-looking statements,
which only speak as of the date made. The Company wishes to advise you that the
factors listed above could affect the Company's financial performance and could
cause the Company's actual results for future periods to differ materially from
any opinions or statements expressed with respect to future periods in any
current statements.

The Company does not undertake, and specifically disclaims any obligation, to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated
events.

OVERVIEW

Net income increased to $615,000 for the three months ended June 30, 2007 from
$292,000 for the same period last year. Net income increased to $1.3 million for
the six months ended June 30, 2007 from $626,000 for the same period last year.
The increase in net income is due to higher net interest income and noninterest
income, which more than offset higher noninterest expense and higher income
taxes. Basic and diluted income per share was $.07 and $.04 for the three months
ended June 30, 2007 and 2006, respectively, and $.15 and $.08 for the six months
ended June 30, 2007 and 2006, respectively.

CRITICAL ACCOUNTING POLICIES

We consider accounting policies involving significant judgments and assumptions
by management that have, or could have, a material impact on the carrying value
of certain assets or on income to be critical accounting policies. Management
makes significant estimates and has identified the allowance for loan losses as
the most critical.

ALLOWANCE FOR LOAN LOSSES. The allowance for loan losses is established as
losses are estimated to have occurred through a provision for loan losses
charged to earnings. Loan losses are charged against the allowance when
management believes the uncollectibility of a loan balance is confirmed.
Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and
is based upon management's periodic review of the collectibility of the loans in
light of historical experience, the nature and volume of the loan portfolio,
adverse situations that may affect the borrower's ability to repay, estimated
value of any underlying collateral and prevailing economic conditions. This
evaluation is inherently subjective as it requires estimates that are
susceptible to significant revision as more information becomes available.

                                       13
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


The allowance consists of specific, general and unallocated components. The
specific component relates to loans that are classified as either doubtful,
substandard or special mention. For such loans that are also classified as
impaired, an allowance is established when the discounted cash flows (or
collateral value or observable market price) of the impaired loan is lower than
the carrying value of that loan. The general component covers non-classified
loans and is based on historical loss experience adjusted for qualitative
factors. An unallocated component is maintained to cover uncertainties that
could affect management's estimate of probable losses. The unallocated component
of the allowance reflects the margin of imprecision inherent in the underlying
assumptions used in the methodologies for estimating specific and general losses
in the portfolio.

A loan is considered impaired when, based on current information and events, it
is probable that the Company will be unable to collect the scheduled payments of
principal or interest when due according to the contractual terms of the loan
agreement. Factors considered by management in determining impairment include
payment status, collateral value, and the probability of collecting scheduled
principal and interest payments when due. Loans that experience insignificant
payment delays and payment shortfalls generally are not classified as impaired.
Management determines the significance of payment delays and payment shortfalls
on a case-by-case basis, taking into consideration all of the circumstances
surrounding the loan and the borrower, including the length of the delay, the
reasons for the delay, the borrower's prior payment record, and the amount of
the shortfall in relation to the principal and interest owed. Impairment is
measured on a loan by loan basis for commercial and construction loans by either
the present value of expected future cash flows discounted at the loan's
effective interest rate, the loan's obtainable market price, or the fair value
of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for
impairment. Accordingly, the Company does not separately identify individual
consumer and residential loans for impairment disclosures, unless such loans are
the subject of a restructuring agreement.

QUALITATIVE DISCLOSURES OF MARKET RISK

During the relatively low interest rate environment that has existed in recent
years, we have implemented the following strategies to manage interest rate
risk: (i) maintaining a high equity-to-assets ratio; and (ii) offering a variety
of adjustable rate loan products, including adjustable rate one- to four-family,
multifamily and non-residential mortgage loans, and short-term consumer loans,
and through the Clover Leaf acquisition, a variety of adjustable-rate commercial
loans. By maintaining a high equity-to-assets ratio and by investing in
adjustable-rate and short-term assets, we are better positioned to react to
increases in market interest rates. However, maintaining high equity balances
reduces the return-on-equity ratio, and investments in shorter-term assets
generally bear lower yields than longer-term investments.

QUANTITATIVE DISCLOSURES OF MARKET RISK

The majority of First Clover Leaf Bank's assets and liabilities are monetary in
nature. Consequently, the most significant form of market risk is interest rate
risk. First Clover Leaf's assets, consisting primarily of loans, have longer
maturities than its liabilities, consisting primarily of deposits. As a result,
the principal part of First Clover Leaf's business strategy is to manage
interest rate risk and reduce the exposure of our net interest income to changes
in market interest rates. Accordingly, the board of directors has established an
Asset/Liability Management Committee which is responsible for evaluating the
interest rate risk inherent in

                                       14
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


assets and liabilities, for determining the level of risk that is appropriate
given First Clover Leaf's business strategy, operating environment, capital,
liquidity and performance objectives, and for managing this risk consistent with
the guidelines approved by the board of directors. Senior management monitors
the level of interest rate risk on a regular basis and the Asset/Liability
Management Committee meets as needed to review the asset/liability policies and
interest rate risk position.

The Office of Thrift Supervision requires the computation of amounts by which
the net present value of an institution's cash flow from assets, liabilities and
off-balance sheet items (the institution's net portfolio value or "NPV") would
change in the event of a range of assumed changes in market interest rates. The
Office of Thrift Supervision provides all institutions that file a Consolidated
Maturity/Rate Schedule as a part of their quarterly Thrift Financial Report with
an interest rate sensitivity report of net portfolio value. The Office of Thrift
Supervision simulation model uses a discounted cash flow analysis and an
option-based pricing approach to measure the interest rate sensitivity of net
portfolio value. The Office of Thrift Supervision model estimates the economic
value of each type of asset, liability and off-balance-sheet contract under the
assumption that the United States Treasury yield curve increases or decreases
instantaneously by 100 basis points.

LIQUIDITY AND CAPITAL RESOURCES
We maintain liquid assets at levels considered adequate to meet liquidity needs.
We adjust our liquidity levels to fund deposit outflows, pay real estate taxes
on mortgage loans, repay our borrowings and fund loan commitments. We also
adjust liquidity as appropriate to meet asset and liability management
objectives.

Our primary sources of liquidity are deposits, amortization and prepayment of
loans, maturities of investment securities and other short-term investments, and
earnings and funds provided from operations. While scheduled principal
repayments on loans are a relatively predictable source of funds, deposit flows
and loan prepayments are greatly influenced by market interest rates, economic
conditions, and rates offered by our competition. We set the interest rates on
our deposits to maintain a desired level of total deposits. In addition, we
invest excess funds in short-term interest-earning assets, which provide
liquidity to meet lending requirements.

A portion of our liquidity consists of cash and cash equivalents, which are a
product of our operating, investing and financing activities. At June 30, 2007
and December 31, 2006, $35.3 million and $92.7 million, respectively, were
invested in cash and cash equivalents. The primary sources of cash are principal
repayments on loans, proceeds from the calls and maturities of investment
securities, increases in deposit accounts and advances from the Federal Home
Loan Bank of Chicago.

Cash flows are derived from operating activities, investing activities and
financing activities as reported in the Consolidated Statements of Cash Flows
included with the Consolidated Financial Statements.

Our primary investing activities are the origination of loans and the purchase
of investment securities. During the six months ended June 30, 2007 and 2006,
our loan originations, net of collected principal, totaled $13.5 million and
$3.5 million, respectively. We sold $1.8 million of loans during the six months
ended June 30, 2007. No loans were sold during the comparable period in 2006.
Cash received from calls and maturities of available-for-sale investment
securities totaled $1.8 million and $750,000 for the six months ended June 30,
2007 and 2006, respectively. We purchased $11.6 million and $1.8 million in
available-for-sale investment securities during the six months ended June 30,
2007 and 2006, respectively. We received proceeds of $851,000 from the pay-down
of available-for-sale securities during the six months ended June 30, 2007.
There were no proceeds received from pay-downs of available-for-sale securities
during the same period in 2006.

                                       15
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


We redeemed FHLB stock of $2.1 million during the six months ended June 30,
2006. Purchases of premises and equipment, primarily related to renovation of
one of the Bank's branch offices, were $1.3 million during the six months ended
June 30, 2007.

Deposit flows are generally affected by the level of interest rates, the
interest rates and products offered by local competitors, and other factors. Due
to the change in the level of deposits with one significant customer, the net
decrease in total deposits and other borrowings was $23.3 million and $10.6
million, respectively, for the six months ended June 30, 2007. During the
comparable period in 2006 the net increase in deposits was $40.8 million due
primarily to stock subscriptions related to the Conversion. There was no change
in other borrowings for the comparable period in 2006.

Liquidity management is both a daily and long-term function of business
management. If we require funds beyond our ability to generate them internally,
borrowing agreements exist with the Federal Home Loan Bank of Chicago, which
provides an additional source of funds. At June 30, 2007, we had $10.4 million
of advances from the Federal Home Loan Bank of Chicago and an additional
available credit of approximately $58.6 million.

The Bank is required to maintain certain minimum capital requirements under
Office of Thrift Supervision regulations. Failure by a savings institution to
meet minimum capital requirements can result in certain mandatory and possible
discretionary actions by regulators, which, if undertaken, could have a direct
material effect on the Bank's financial statements. The Bank was considered
"well-capitalized" at June 30, 2007. Under the capital adequacy guidelines and
regulatory framework for prompt corrective action, the Bank must meet specific
capital guidelines that involve quantitative measures of the Bank's assets,
liabilities, and certain off-balance sheet items as calculated under regulatory
accounting practices.

The Bank's actual and required capital amounts and ratios at June 30, 2007 were
as follows:

<TABLE>
<S>                                                                             <C>
                                                                            MINIMUM                     REQUIRED
                                                                     --------------------------------------------------
                                                                          FOR CAPITAL                  TO BE "WELL
                                                  ACTUAL                    ADEQUACY                  CAPITALIZED"
                                         ----------------------      ----------------------      ----------------------
                                           AMOUNT        RATIO         AMOUNT        RATIO         AMOUNT        RATIO
                                         ----------    --------      ----------    --------      ----------    --------
                                                                     (DOLLARS IN THOUSANDS)
Stockholders' equity                     $  76,403
Goodwill and core deposit intangible       (11,163)
Disallowed servicing assets                   (404)
Unrealized loss on securities AFS, net         186
                                         ----------
Tangible capital                         $  65,022       18.1%       $   5,383        1.5%           N/A            -
General valuation allowance                  1,835
Deduction for low-level recourse              (777)
                                         ----------
Total capital to risk-weighted assets    $  66,080       25.8%       $  20,511        8.0%       $  25,639       10.0%
                                         ==========

Tier 1 capital to risk-weighted assets   $  65,022       25.4%       $     N/A          -        $  15,383        6.0%

Tier 1 capital to total assets           $  65,022       18.1%       $  14,354        4.0%       $  17,943        5.0%
</TABLE>

                                       16
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


OFF-BALANCE SHEET ARRANGEMENTS

In the ordinary course of business, the Company is a party to credit-related
financial instruments with off-balance sheet risk to meet the financing needs of
our customers. These financial instruments include commitments to extend credit.
The Company follows the same credit policies in making commitments as it does
for on-balance sheet instruments.

Commitments to extend credit are agreements to lend to a customer as long as
there is no violation of any condition established in the contract. Commitments
generally have fixed expiration dates or other termination clauses and may
require payment of a fee. The commitments for equity lines of credit may expire
without being drawn upon. Therefore, the total commitment amounts do not
necessarily represent future cash requirements. The amount of collateral
obtained, if it is deemed necessary by the Company, is based on management's
credit evaluation of the customer. Unfunded commitments under construction lines
of credit for residential and multi-family properties are commitments for
possible future extensions of credit to existing customers. These lines of
credit are uncollateralized and usually do not contain a specified maturity date
and may not be drawn upon to the total extent to which the Company is committed.

Standby letters of credit are conditional commitments issued by the Company to
guarantee the performance of a customer to a third party.

A summary of the notional or contractual amounts of financial instruments, with
off-balance-sheet risk at June 30, 2007 follows:

                                                                     RANGE OF
                              VARIABLE      FIXED                    RATES ON
                                RATE         RATE         TOTAL     FIXED RATE
                             COMMITMENTS  COMMITMENTS  COMMITMENTS  COMMITMENTS
                             -----------  -----------  -----------  -----------
                                             (Dollars in thousands)

Commitments to extend
  credit                     $    20,212  $     4,118  $    24,330  4.99%-18.00%
Standby letters of credit    $       909  $     2,456  $     3,365  6.00%-10.25%

Loans sold to the Federal Home Loan Bank (FHLB) of Chicago under the Mortgage
Partnership Finance program are sold with recourse. The Bank has an agreement to
sell residential loans up to $60.0 million to the FHLB of Chicago. Approximately
$44.9 million has been sold through June 30, 2007. Under the agreement, the Bank
has a maximum credit enhancement of $777,000 at June 30, 2007. Based upon a
favorable payment history, the Bank does not anticipate recognizing any losses
on these residential loans.

                                       17
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


RECENT ACCOUNTING PRONOUNCEMENTS

The following accounting standards were recently issued relating to the
financial services industry:

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements," to
define fair value, establish a framework for measuring fair value and expand
disclosures about fair values. The Statement is effective for financial
statements issued for fiscal years beginning after November 15, 2007, and
interim periods within those fiscal years. The Company does not expect SFAS No.
157 to have a material impact on the Company's financial position or results of
operation.

In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
Financial Assets and Financial Liabilities." SFAS No. 159 permits entities to
choose to measure many financial instruments and certain other items at fair
value. Entities shall report unrealized gains and losses on those items which
the fair value option has been elected in earnings. SFAS No. 159 is effective as
of the beginning of an entity's first fiscal year that begins after November 15,
2007. The Company is currently evaluating the requirements of the Statement and
impact on the Company's financial position and results of operations.

FINANCIAL CONDITION

TOTAL ASSETS. Total assets decreased to $376.4 million at June 30, 2007 from
$410.3 million at December 31, 2006. The decrease was due to the change in cash
levels as we experienced a decline in deposits with one significant customer.
Federal funds sold increased to $22.8 million at June 30, 2007 from $20.5
million at December 31, 2006. Cash and due from banks declined to $12.5 million
at June 30, 2007 from $72.1 million at December 31, 2006. Securities available
for sale increased to $54.6 million at June 30, 2007 from $45.8 million at
December 31, 2006. The increase was due primarily to purchases of $11.6 million,
partially offset by maturities and pay-downs of $1.8 million and $851,000,
respectively. At June 30, 2007, Federal Home Loan Bank of Chicago (FHLBC) stock
amounted to $5.6 million. Loans, net amounted to $257.7 million at June 30,
2007, compared to $244.0 million at December 31, 2006. The increase was due
primarily to new loan originations in excess of loan collections of $13.5
million. Property and equipment increased to $8.0 million at June 30, 2007 from
$6.9 million at December 31, 2006 primarily due to the renovation of one of the
Bank's branch offices.

TOTAL LIABILITIES. Deposits decreased to $247.5 million at June 30, 2007 from
$270.8 million at December 31, 2006 as a result of net withdrawals, primarily
with one significant customer. Due to the nature of this customer's business,
large fluctuations in their deposit accounts are a normal occurrence. Securities
sold under agreement to repurchase dropped to $18.9 million at June 30, 2007
from $29.4 million at December 31, 2006 due to the repayment of such borrowings.
Other liabilities decreased to $1.6 million at June 30, 2007 from $1.9 million
at December 31, 2006 primarily due to the timing of payment of Federal and State
income taxes.

STOCKHOLDERS' EQUITY. Stockholders' equity increased to $93.5 million at June
30, 2007 from $93.3 million at December 31, 2006, principally as a result of net
income of $1.3 million for the first half of 2007, less cash dividends paid of
$1.1 million.

                                       18
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


ASSET QUALITY

The following table sets forth information with respect to the Company's
nonperforming and impaired loans at the dates indicated.

<TABLE>
                                                                      JUNE 30,          DECEMBER 31,
                                                                        2007                2006
                                                                  ----------------    ----------------
<S>                                                              <C>                 <C>
Loans 90 days or more past due and still accruing                 $        10,612     $        16,267
Nonaccrual loans                                                        2,461,559           1,371,289
Other impaired loans                                                    1,105,479           2,533,898
                                                                  ----------------    ----------------
  Total nonperforming and impaired loans                          $     3,577,650     $     3,921,454
                                                                  ================    ================

Allowance for losses on nonperforming and impaired loans          $       370,023     $       396,137
                                                                  ================    ================

Nonperforming and impaired loans with no allowance for losses     $        10,612     $        16,267
                                                                  ================    ================
</TABLE>

At June 30, 2007, the Company had no loans which were not currently classified
as nonaccrual, 90 days past due or restructured but where known information
about possible credit problems of borrowers caused management to have serious
concerns as to the ability of the borrowers to comply with present loan
repayment terms and which may result in disclosure as nonaccrual, 90 days past
due or restructured.

At June 30, 2007, the Company's nonaccrual loans increased $1.1 million from
December 31, 2006, while other impaired loans declined $1.4 million from
December 31, 2006. This shift in balances is primarily due to one loan
relationship whose financial condition caused the Company to reclassify their
loans to a nonaccrual status.

Under the Company's internal review policy, loans classified as substandard
increased to $3.8 million at June 30, 2007 from $3.3 million at December 31,
2006.

Following is a summary of activity in the allowance for loan losses:

                                            SIX MONTHS ENDED
                                       JUNE 30,            JUNE 30,
                                        2007                 2006
                                   ----------------    ----------------
Balance at beginning of period     $     1,710,247     $       428,419
   Charge-offs                                   -                   -
   Recoveries                                3,624                   -
   Provision charged to expense            121,000                   -
                                   ----------------    ----------------
Balance at end of period           $     1,834,871     $       428,419
                                   ================    ================

RESULTS OF OPERATIONS

GENERAL. Net income increased to $615,000 for the three months ended June 30,
2007 from $292,000 for the same period last year. Net income increased to $1.3
million for the six months ended June 30, 2007 from $626,000 for the same period
last year. The increase in net income is due to higher net interest income and
noninterest income, which more than offset higher noninterest expense and higher
income taxes.

                                       19
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


NET INTEREST INCOME. Net interest income increased to $2.6 million for the three
months ended June 30, 2007 from $1.0 million for the comparable period in 2006.
Net interest income increased to $5.3 million for the six months ended June 30,
2007 from $2.1 million for the comparable period in 2006. The increase was due
principally to the Clover Leaf acquisition and a higher interest rate spread.
Net interest-earning assets were $69.4 million for the six months ended June 30,
2007, compared to $36.3 million for the same period in 2006. The ratio of
interest-earning assets to interest-bearing liabilities dropped to 124.9% for
the six months ended June 30, 2007 from 134.6% for the same period in 2006. The
interest rate spread increased to 2.21% for the six months ended June 30, 2007
versus 2.02% for the same period in 2006. The average rate on interest-earning
assets increased by 77 basis points, while the average rate on interest-bearing
liabilities increased by 58 basis points. The increase in the interest rate
spread was attributable to a higher yield earned on the loan portfolio as a
result of the Clover Leaf acquisition, which more than offset the effect of
higher rates paid on customer deposits.

INTEREST INCOME. Interest income on loans increased to $4.4 million for the
three months ended June 30, 2007 from $1.8 million for the comparable period in
2006. Interest income on loans increased to $8.5 million for the six months
ended June 30, 2007 from $3.4 million for the comparable period in 2006.
Interest income on loans increased as a result of primarily a higher average
balance and yield due principally to the Clover Leaf acquisition. The average
balance of loans was $249.1 million and $116.9 million for the six months ended
June 30, 2007 and 2006, respectively. The average yield on loans increased to
6.86% for the six months ended June 30, 2007 from 5.89% for comparable period in
2006.

Interest income on securities increased to $723,000 for the three months ended
June 30, 2007 from $212,000 for the comparable period in 2006. Interest income
on securities increased to $1.4 million for the six months ended June 30, 2007
from $397,000 for the comparable period in 2006. Interest income on securities
increased due primarily to a higher average balance as a result of the Clover
Leaf acquisition. The average balance of securities was $57.1 million and $20.0
million for the six months ended June 30, 2007 and 2006, respectively. Interest
on other interest-bearing deposits increased significantly due to a higher
average balance and yield. The average balance of other interest-bearing
deposits was $42.1 million and $4.3 million for the six months ended June 30,
2007 and 2006, respectively. The higher average balance of other
interest-bearing deposits results primarily from an increase in Fed Funds Sold,
which is related to the overall increase in deposit accounts. The average yield
on other interest-bearing assets increased to 5.14% for the six months ended
June 30, 2007 from 4.14% for the same period last year. The higher yield on
interest-bearing deposits is due to a rising interest rate environment.
Components of interest income vary from time to time based on the availability
and interest rates of loans, securities and other interest-earning assets.

INTEREST EXPENSE. Interest expense on deposits increased to $2.4 million for the
three months ended June 30, 2007 from $988,000 for the comparable period in
2006. Interest expense on deposits increased to $4.9 million for the six months
ended June 30, 2007 from $1.9 million for the comparable period in 2006. Higher
cost of funds resulted from the Clover Leaf acquisition and higher market
interest rates paid on certificates. The average balance of interest-bearing
deposits was $243.3 million and $105.0 million for the six months ended June 30,
2007 and 2006, respectively. The average rate on deposits increased to 4.03% for
the six months ended June 30, 2007 from 3.55% from the same period last year.

Interest on FHLB advances, securities sold under agreement to repurchase and
subordinated debentures resulted from the acquisition of Clover Leaf Financial
Corp.

                                       20
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


PROVISION FOR LOAN LOSSES. Provision for loan losses was $76,000 and $121,000
for the three and six months ended June 30, 2007. There was no provision for
loan losses for the comparable periods in 2006. Provision for loan losses is
based upon management's consideration of current economic conditions, the
Company's loan portfolio composition and historical loss experience used to
estimate probable losses as well as the level of nonperforming assets and
classified assets. Management also reviews individual loans for which full
collectibility may not be reasonably assured and considers, among other matters,
the estimated fair value of the underlying collateral. This evaluation is
ongoing and results in variations in the Company's provision for loan losses.
The Company is subject to periodic examination by the OTS, which may require the
Company to record increases in the allowances based on its evaluation of
available information. There can be no assurance that the OTS will not require
further increases to the allowances.

NONINTEREST INCOME. Noninterest income increased to $133,000 for the three
months ended June 30, 2007 from $2,000 for the comparable period in 2006.
Noninterest income increased to $262,000 for the six months ended June 30, 2007
from $3,000 for the comparable period in 2006. The increase is due to service
charge income on deposit accounts and customer debit and credit cardholders
acquired as a result of the merger. In addition, the Company has recognized
noninterest income from their loan sale and servicing activity since the
Acquisition.

NONINTEREST EXPENSE. Noninterest expense increased to $1.7 million for the three
months ended June 30, 2007 from $562,000 for the comparable period in 2006.
Noninterest expense increased to $3.4 million for the six months ended June 30,
2007 from $1.1 million for the comparable period in 2006. Compensation and
employee benefits, the largest component of noninterest expense, increased by
$483,000 to $715,000 for the three months ended June 30, 2007 from $232,000 for
the comparable period in 2006 and increased by $953,000 to $1.4 million for the
six months ended June 30, 2007 from $461,000 for the comparable period in 2006.
Compensation and employee benefits increased as a result of primarily a higher
number of personnel and salary levels due to the Clover Leaf acquisition. As a
result of the Acquisition, the number of full-time equivalent employees
increased from 9 to 53 at June 30, 2006 and 2007, respectively.

Occupancy expense rose to $206,000 for the three months ended June 30, 2007
compared to $28,000 for the comparable period in 2006. Occupancy expense rose to
$412,000 for the six months ended June 30, 2007 compared to $57,000 for the
comparable period in 2006. Occupancy expense increased due to the Clover Leaf
acquisition and operation of four offices versus one office in the prior period.

Data processing services increased to $103,000 for the three months ended June
30, 2007 from $83,000 for the comparable period in 2006. Data processing
services increased to $210,000 for the six months ended June 30, 2007 from
$101,000 for the comparable period in 2006. Data processing services rose as a
result of the Clover Leaf acquisition of deposits, including retail and
commercial demand deposit accounts.

Director fees increased to $60,000 for the three months ended June 30, 2007 from
$54,000 for the comparable period in 2006 and increased to $119,000 for the six
months ended June 30, 2007 from $99,000 for the comparable period in 2006. The
increase was due to an increased number of directors related to the Clover Leaf
acquisition offset somewhat by fewer meetings held in 2007. During 2006,
additional meetings were held due to the Conversion and Acquisition.

                                       21
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


Professional services increased to $125,000 for the three months ended June 30,
2007 from $34,000 for the comparable period in 2006. Professional services
increased to $248,000 for the six months ended June 30, 2007 from $86,000 for
the comparable period in 2006. Professional services increased as a result of
higher expenses associated with our status as a larger and more complex public
company following completion of the Clover Leaf acquisition.

Other noninterest expenses increased to $231,000 for the three months ended June
30, 2007 from $75,000 for the comparable period in 2006. Other noninterest
expenses increased to $419,000 for the six months ended June 30, 2007 from
$130,000 for the comparable period in 2006. Other noninterest expense increased
due to the Clover Leaf acquisition, including expenses related to demand deposit
accounts and internet banking services.

INCOME TAXES. Income taxes increased to $368,000 for the three months ended June
30, 2007 from $178,000 for the comparable period in 2006. Income taxes increased
to $755,000 for the six months ended June 30, 2007 from $383,000 for the
comparable period in 2006. The primary reason for the change in income taxes was
the level of pre-tax income. The effective tax rate was 37.4% for the three
months ended June 30, 2007 versus 37.9% for the comparable period in 2006. The
effective tax rate was 36.7% for the six months ended June 30, 2007 versus 38.0%
for the comparable period in 2006.

                                       22
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.


ITEM 3.  CONTROLS AND PROCEDURES

As of the end of the period covered by this report, the Company carried out an
evaluation, under the supervision and with the participation of the Company's
principal executive officer and principal financial officer, of the
effectiveness of the design and operation of the Company's disclosure controls
and procedures. Based on this evaluation, the Company's principal executive
officer and principal financial officer concluded that the Company's disclosure
controls and procedures are effective in timely alerting them to material
information required to be included in the Company's periodic SEC reports.

In addition, there have been no changes in the Company's internal control over
financial reporting during the most recent fiscal quarter that has materially
affected, or is reasonably likely to materially affect, the Company's internal
control over financial reporting.

                                       23
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                           PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS.

     There are no material legal proceedings to which the Company is a party or
     of which any of their property is subject. From time to time, the Company
     is a party to various legal proceedings incident to its business.

ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

     No equity securities were sold during the quarter that were not registered
     under the Securities Exchange Act. No repurchases of stock were made during
     the quarter.

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES.

     Not applicable.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     (a)  On May 22, 2007 the Company held its Annual Meeting of Stockholders.

     (b)  At the meeting, Harry Gallatin, Dean Pletcher, and Joseph J. Gugger
          were elected, each to serve a three-year term.

     (c)  Stockholders voted on the following matters:

          (i)  The election of the following directors of the Company:

               DIRECTOR:               FOR          WITHHELD
               ---------               ---          --------

               Harry Gallatin        7,509,938        10,339

               Dean Pletcher         7,512,674         7,603

               Joseph J. Gugger      7,509,860        10,417

          (ii) The ratification of the appointment of McGladrey & Pullen, LLP as
               independent registered public accounting firm for the Company for
               the year ended December 31, 2007:

               VOTES              FOR           AGAINST          ABSTAIN
               -----              ---           -------          -------

               7,520,277       7,451,569         66,803           1,905

ITEM 5 - OTHER INFORMATION.

     None

ITEM 6 - EXHIBITS.

     (a)  Exhibits.

          31.1: Certification of Chief Executive Officer pursuant to Section 302
                of the Sarbanes-Oxley Act of 2002.

          31.2: Certification of Chief Financial Officer pursuant to Section 302
                of the Sarbanes-Oxley Act of 2002.

          32:   Certification pursuant to Section 906 of the Sarbanes-Oxley Act
                of 2002.

                                       24
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                                   SIGNATURES
                                   ----------


Pursuant to the requirements of the Securities Exchange Act of 1934, the small
business issuer has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                        FIRST CLOVER LEAF FINANCIAL CORP.
                        ---------------------------------
                             (Small Business Issuer)


DATE: August 14, 2007                  BY: Dennis M. Terry
                                           ---------------
                                           Dennis M. Terry,
                                           President and Chief Executive Officer


                                       BY: Darlene F. McDonald
                                           --------------------
                                           Darlene F. McDonald,
                                           Senior Vice-President and
                                           Chief Financial Officer


                                       25