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 September 30, 2006
                               ------------------

                                       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 Identification No.)
incorporation or organization)

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

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

Not applicable                            300 St. Louis St., Edwardsville, IL
--------------------------------------    --------------------------------------
(Former name)                            (Former address and former fiscal year,
                                          if changed since last report)


Check  whether  the issuer  (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 November 14, 2006
--------------------------------------             -----------------------------
Common Stock, par value $.10 per share                         9,074,031


<PAGE>


                        FIRST CLOVER LEAF FINANCIAL CORP.



                                   FORM 10-QSB

                    FOR THE QUARTER ENDED September 30, 2006

                                      INDEX


                                                                        PAGE NO.


PART I - Financial Information

    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

    Management's Discussion and Analysis of
       Financial Condition and Results of Operations                       14

     Controls and Procedures                                               23

PART II - Other Information                                                24

Certifications                                                             27



<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                          Consolidated Balance Sheets
                                  (Unaudited)

<TABLE>
<CAPTION>

                                                                          September 30,     December 31,
      Assets                                                                  2006              2005
                                                                          -------------    -------------
<S>                                                                       <C>              <C>
Cash and due from banks                                                   $  14,081,224    $   1,027,901
Federal funds sold                                                           29,178,529        2,400,000
                                                                          -------------    -------------
   Total cash and cash equivalents                                           43,259,753        3,427,901
Interest-bearing time deposits                                                  250,000          250,000
Securities available for sale                                                32,189,408       12,944,395
Securities held to maturity, at amortized cost (fair value of $337,659)              --          353,209
Federal Home Loan Bank stock                                                  6,807,215        6,213,940
Loans, net of allowance for loan losses
   of $1,407,465 and $428,419, respectively                                 237,471,272      115,645,079
Property and equipment                                                        6,867,863          860,086
Accrued interest receivable                                                   1,295,972          439,632
Goodwill                                                                      9,343,034               --
Core deposit intangible                                                       2,229,500               --
Mortgage servicing rights                                                       359,000               --
Other assets                                                                    674,626           24,104
                                                                          -------------    -------------
      Total assets                                                        $ 340,747,643    $ 140,158,346
                                                                          =============    =============
      Liabilities and Stockholders' Equity
Non-interest bearing deposits                                             $  14,001,591    $          --
Interest bearing deposits                                                   191,310,898       89,039,942
Interest bearing deposits, $100,000 and over                                 19,204,881       13,072,182
                                                                          -------------    -------------
      Total deposits                                                        224,517,370      102,112,124
Accrued interest payable                                                        594,609            4,755
Federal Home Loan Bank advances                                              10,292,420               --
Securities sold under agreement to repurchase                                 6,564,647               --
Subordinated debentures                                                       3,787,000               --
Other liabilities                                                             1,905,811          333,885
                                                                          -------------    -------------
      Total liabilities                                                     247,661,857      102,450,764
                                                                          -------------    -------------
Commitments and contingencies
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 and 3,920,060 shares issued and outstanding                     907,403          392,006
Additional paid-in capital                                                   71,038,404       16,538,534
Retained earnings - substantially restricted                                 21,970,127       21,759,719
Accumulated other comprehensive loss, net                                       (71,266)        (187,842)
Unearned employee stock ownership plan shares                                  (758,882)        (794,835)
                                                                          -------------    -------------
      Total stockholders' equity                                             93,085,786       37,707,582
                                                                          -------------    -------------
      Total liabilities and stockholders' equity                          $ 340,747,643    $ 140,158,346
                                                                          =============    =============
</TABLE>

See accompanying notes to consolidated financial statements.

                                       3
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                        Consolidated Statements of Income
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                   Three Months Ended           Nine Months Ended
                                                                      September 30,               September 30,
                                                               --------------------------   --------------------------
                                                                   2006           2005          2006         2005
                                                               -----------    -----------   -----------    -----------
<S>                                                                <C>            <C>           <C>            <C>
Interest and dividend income:
  Interest and fees on loans                                   $ 3,788,407    $ 1,680,555   $ 7,234,393    $ 5,003,621
   Interest on taxable securities                                  321,517        151,199       624,540        464,454
   Interest on non-taxable securities                               59,722             --        59,722             --
   FHLB dividends                                                   72,988         75,211       167,260        284,899
  Other Interest-bearing deposits                                  589,677         23,422       679,463         51,188
                                                               -----------    -----------   -----------    -----------
      Total interest income                                      4,832,311      1,930,387     8,765,378      5,804,162
                                                               -----------    -----------   -----------    -----------
Interest expense:
   Deposits                                                      2,039,267        781,361     3,900,126      2,127,207
   Federal Home Loan Bank advances                                 138,409             --       138,409         13,939
   Securities sold under agreement to repurchase                    53,327             --        53,327             --
  Subordinated debentures                                           72,151             --        72,151             --
                                                               -----------    -----------   -----------    -----------
      Total interest expense                                     2,303,154        781,361     4,164,013      2,141,146
                                                               -----------    -----------   -----------    -----------
      Net interest income                                        2,529,157      1,149,026     4,601,365      3,663,016
Provision for loan losses                                           66,667             --        66,667             --
                                                               -----------    -----------   -----------    -----------
      Net interest income after provision for loan losses        2,462,490      1,149,026     4,534,698      3,663,016
                                                               -----------    -----------   -----------    -----------
Noninterest income:
    Service fees on deposit accounts                                44,219             --        44,219             --
    Other service charges and fees                                  28,205             --        28,205             --
    Loan servicing fees                                             23,989             --        23,989             --
    Gain on sale of loans                                            5,691             --         5,691             --
    Amortization of mortgage servicing rights                      (26,000)            --       (26,000)            --
    Other                                                           (4,126)         2,315        (1,186)        10,382
                                                               -----------    -----------   -----------    -----------
       Total noninterest income                                     71,978          2,315        74,918         10,382
                                                               -----------    -----------   -----------    -----------
Noninterest expense:
   Compensation and employee benefits                              611,477        227,412     1,072,666        666,400
   Occupancy expense                                               182,609         30,330       239,742         84,105
   Data processing services                                        102,953         16,217       204,207         50,814
   Advertising                                                     142,975         13,558       275,609         31,449
   Director fees                                                   132,000         32,700       230,750        116,850
   Professional services                                            76,215         47,737       161,770        149,115
   Amortization of core deposit intangible                         161,500             --       161,500             --
   Other                                                           255,715         56,133       385,764        184,062
                                                               -----------    -----------   -----------    -----------
      Total noninterest expense                                  1,665,444        424,087     2,732,008      1,282,795
                                                               -----------    -----------   -----------    -----------
      Income before income taxes                                   869,024        727,254     1,877,608      2,390,603
Income taxes                                                       344,900        276,700       727,900        909,400
                                                               -----------    -----------   -----------    -----------
      Net income                                               $   524,124    $   450,554   $ 1,149,708    $ 1,481,203
                                                               ===========    ===========   ===========    ===========
Basic and diluted income per share (see Note 5)                $      0.06    $      0.06   $      0.15    $      0.20
                                                               ===========    ===========   ===========    ===========
Dividends per share                                            $      0.06    $      0.21   $      0.30    $      0.37
                                                               ===========    ===========   ===========    ===========
</TABLE>

See accompanying notes to consolidated financial statements

                                       4
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                 Consolidated Statements of Comprehensive Income
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                   Three Months Ended           Nine Months Ended
                                                      September 30,                September 30,
                                                -------------------------    -------------------------
                                                    2006          2005           2006          2005
                                                -----------   -----------    -----------   -----------
<S>                                             <C>           <C>            <C>           <C>
Net income                                      $   524,124   $   450,554    $ 1,149,708   $ 1,481,203
Other comprehensive income:
   Unrealized gains (losses) on securities
        arising during the period, net of tax       199,900       (79,999)       116,576      (123,992)
                                                -----------   -----------    -----------   -----------
Comprehensive income                            $   724,024   $   370,555    $ 1,266,284   $ 1,357,211
                                                ===========   ===========    ===========   ===========
</TABLE>

See accompanying notes to consolidated financial statements.

                                       5
<PAGE>

                       FIRST CLOVER LEAF FINANCIAL CORP.

                      Consolidated Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                             Nine Months Ended
                                                                               September 30,
                                                                       ----------------------------
                                                                           2006            2005
                                                                       ------------    ------------
<S>                                                                        <C>               <C>
Cash flows from operating activities:
   Net income                                                          $  1,149,708    $  1,481,203
   Adjustments to reconcile net income to net
      cash provided by operating activities:
      Amortization of:
         Deferred loan origination (fees) costs, net                        (63,240)        (17,851)
         Premiums and discounts on securities                               (50,511)          7,196
         Premiums and discounts on loans                                   (204,000)             --
         Core deposit intangible                                            161,500              --
         Mortgage servicing rights                                           26,000              --
         Premiums and discounts on deposits                                 (12,000)             --
         Premiums and discounts on FHLB advances                             34,500              --
         Premiums and discounts on subordinated debt                         10,000              --
      Provision for loan losses                                              66,667              --
      Depreciation expense                                                  111,632          36,722
      FHLB stock dividends                                                       --        (284,800)
      ESOP expense                                                           58,338          46,071
      Gain on sale of loans                                                  (5,691)             --
      Proceeds from sales of loans held for sale                            904,301              --
      Originations of loans held for sale                                  (898,610)             --
      Change in assets and liabilities:
        Increase in accrued interest receivable                            (223,019)        (23,224)
        Decrease (increase) in other assets                                 254,153        (137,760)
        Increase (decrease) in accrued interest payable                     176,898          (2,738)
        Increase (decrease) in other liabilities                           (552,594)         94,913
                                                                       ------------    ------------
           Net cash flows from operating activities                         944,032       1,199,732
                                                                       ------------    ------------
Cash flows from investing activities: Available for sale securities:
      Purchases                                                          (2,769,463)     (1,004,273)
      Proceeds from calls and maturities                                  1,250,000       1,000,000
      Proceeds from paydowns                                                172,962              --
  Held to maturity securities:
      Proceeds from paydowns                                                 34,520          95,551
  Redemption of Federal Home Loan Bank Stock                              2,111,461       1,900,000
  Loan originations, net of principal collected                         (12,567,180)     (2,424,186)
  Purchase of property and equipment                                       (113,792)        (35,332)
  Cash received in acquisition of Clover Leaf Financial Corp., net       19,857,563              --
                                                                       ------------    ------------
           Net cash flows from investing activities                    $  7,976,071    $   (468,240)
                                                                       ------------    ------------
</TABLE>

See accompanying notes to consolidated financial statements.

                                       6
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                     Consolidated Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>

(Continued)                                                                              Nine Months Ended
                                                                                           September 30,
                                                                                   ----------------------------
                                                                                       2006           2005
                                                                                   ------------    ------------
<S>                                                                                  <C>                <C>
Cash flows from financing activities:
   Net increase (decrease) in deposits                                             $(10,359,818)   $  3,213,527
   Net increase (decrease) in other borrowings                                        5,065,989              --
   Repayment of FHLB advances                                                        (3,000,000)     (2,900,000)
   Issuance of common stock, net                                                     40,144,878              --
   Cash dividends                                                                      (939,300)       (436,833)
                                                                                   ------------    ------------
         Net cash flows from financing activities                                    30,911,749        (123,306)
                                                                                   ------------    ------------
Net increase (decrease) in cash and cash equivalents                                 39,831,852         608,186
Cash and cash equivalents at beginning of period                                      3,427,901       1,636,987
                                                                                   ------------    ------------
Cash and cash equivalents at end of period                                         $ 43,259,753    $  2,245,173
                                                                                   ============    ============


Supplemental schedule of noncash investing and financing activities:
  Dividends declared, not yet paid                                                 $         --    $    199,814
  Transfer of securities from held to maturity to available for sale                    317,505              --
  Common stock issued in acquisition of Clover Leaf Financial Corp.                  14,848,004              --

Supplemental  disclosures of cash flow information:  Cash paid (received) during
  the period for:
     Interest                                                                      $  3,954,615    $  2,143,884
     Income taxes, net of refunds                                                  $    713,000    $    944,411

  Net cash received (paid) in acquisition of Clover Leaf Financial Corp.:
     Cash paid to Clover Leaf Financial Corp. shareholders                         $ (6,363,430)   $         --
     Acquisition costs paid                                                            (275,786)             --
                                                                                   ------------    ------------
       Total cash payments                                                           (6,639,216)             --
     Cash and cash equivalents acquired                                              26,496,779              --
                                                                                   ------------    ------------
     Net cash received in acquisition                                              $ 19,857,563    $         --
                                                                                   ============    ============
</TABLE>

See accompanying notes to consolidated financial statements.

                                       7
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements

(1)   The  information  contained  in the  accompanying  consolidated  financial
      statements, except with respect to the Company's balance sheet at December
      31, 2005, 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  Federal   Financial   Services,   Inc.,
      predecessor to First Clover Leaf Financial Corp.  (Company),  for the year
      ended   December  31,  2005   contained  in  the  2005  Annual  Report  to
      stockholders  that was 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 wholly-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 Mid-tier  Company.  In connection with
      the  offering,  the  Mid-tier  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  Mid-tier  Company  of
      1,764,027  shares of  common  stock at $10 per  share.  In  addition,  the
      Mid-tier Company issued 2,156,033 shares to the MHC,  resulting in the MHC
      retaining a 55% ownership percentage in the Mid-tier 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  Mid-tier  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
      Mid-tier  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 would acquire all
      of the common stock of Clover Leaf (Acquisition).

      The Conversion and Acquisition  were  consummated on July 10, 2006 through
      the sale and issuance by the Company 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 the Company'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 the
      Company's 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,  the Company 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).  The
      Company's  common stock is traded on the NASDAQ  Capital  Market under the
      symbol "FCLF." Voting rights will be held and exercised exclusively by the
      stockholders  of the Company.  Deposit account holders will continue to be
      insured by the FDIC up to legal limits.

                                       8
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements

      As required by current regulations, a liquidation account in the amount of
      $20.7 million was established in conjunction with the Conversion.

      As a result,  each eligible account holder or supplemental  account holder
      will be entitled to a proportionate  share of this account in the unlikely
      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 the Company
      common stock will be  conducted in  accordance  with  applicable  laws and
      regulations.  The Company  expects  that,  subject to  regulatory  capital
      requirements  of the Bank,  financial  condition and results of operations
      for the Company 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 October 24, 2006, 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  September 30, 2006. The dividend will be payable to stockholders of
      record as of November  17, 2006 and is expected to be paid on November 24,
      2006.

(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 $276,000.
      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 will be depreciated or amortized as applicable,  over
      the estimated useful lives of the related assets and liabilities. The core
      deposit intangible of $2.39 million will be amortized over 7.6 years using
      the  sum-of-the-years  digits  method.  The  Company  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 $9.34 million at July 10, 2006. The
      Clover Leaf  Financial  Corp excess  purchase  price has been allocated to
      goodwill and  identifiable  intangible  assets in accordance  with current
      accounting  literature,  to the extent that supportable  documentation was
      available  at  September  30,  2006.  Such  amounts  are  subject to minor
      adjustments  in the near  term as  additional  analysis  is  performed  or
      obtained from third party  sources.  As a result of the  acquisition,  the
      Bank will operate three  full-service  offices  (following  closure of one
      existing office).

                                       9
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements

      The following table summarizes the assets acquired and liabilities assumed
      at July 10, 2006, the date of acquisition:

      Cash and due from banks                         $ 12,630,089
      Federal funds sold                                13,866,690
      Securities available for sale                     17,337,733
      Federal Home Loan Bank stock                       2,704,736
      Loans, net                                       109,058,440
      Property and equipment                             6,005,617
      Accrued interest receivable                          633,321
      Goodwill                                           9,343,034
      Core deposit intangible                            2,391,000
      Mortgage servicing rights                            385,000
      Other assets                                         904,675

                                                      ------------
            Total assets acquired                     $175,260,335
                                                      ------------

      Deposits                                        $132,777,064
      Accrued interest payable                             412,956
      Federal Home Loan Bank advances                   13,257,920
      Securities sold under agreement to repurchase      1,498,658
      Subordinated debt                                  3,777,000
      Other liabilities                                  2,049,517

                                                      ------------
            Total liabilities assumed                 $153,773,115
                                                      ------------

            Purchase price                            $ 21,487,220
                                                      ============

      The  statements  of income  for the three  months  and nine  months  ended
      September  30,  2006  include the results of  operations  of the  acquired
      entity from July 11, 2006 through September 30, 2006.

      The following pro forma information, including the effects of the purchase
      accounting adjustments, summarizes the results of operations for the three
      months and nine  months  ended  September  30, 2006 and 2005 as though the
      Acquisition had been completed as of the beginning of each period.

                                       10
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements

<TABLE>
<CAPTION>
                                       Three Months Ended          Nine Months Ended
                                          September 30,              September 30,
                                   -------------------------   -------------------------
                                       2006          2005          2006          2005
                                   -----------   -----------   -----------   -----------
<S>                                  <C>           <C>           <C>           <C>
Total interest income              $ 5,069,904   $ 3,891,217   $13,357,096   $11,371,485
Total interest expense               2,429,605     1,555,627     6,432,358     4,194,842
                                   -----------   -----------   -----------   -----------
      Net interest income            2,640,299     2,335,590     6,924,738     7,176,643
Provision for loan losses               70,000        15,000       116,500        24,000
Total noninterest income                92,516        97,102       291,549       253,292
Total noninterest expense            1,935,659     1,482,210     5,277,733     4,134,358
                                   -----------   -----------   -----------   -----------
      Income before income taxes       727,156       935,482     1,822,054     3,271,577
Income taxes                           347,865       351,183       761,461     1,225,819
                                   -----------   -----------   -----------   -----------
      Net income                   $   379,291   $   584,299   $ 1,060,593   $ 2,045,758
                                   ===========   ===========   ===========   ===========
</TABLE>

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

      Pro  forma  noninterest  expense  for the  three  and  nine  months  ended
      September 30, 2006 includes merger related expenses of the acquired entity
      of $160,000 and $375,000,  respectively.  The three and nine month periods
      in 2006 also include data processing termination and deconversion costs of
      the acquiring entity of $15,000 and $78,000, respectively.

                                       11
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements

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

                                  September 30,     December 31,
                                      2006              2005
                                 --------------    --------------

      Core deposit intangible    $    2,391,000    $           --
      Accumulated amortization   $     (161,500)               --
                                 --------------    --------------
        Total                    $    2,229,500    $           --
                                 ==============    ==============

      Amortization  expense on core deposit intangible for both the three months
      and nine  months  ended  September  30,  2006 was  $161,500.  There was no
      amortization  expense  of core  deposit  intangible  for the three or nine
      months ended September 30, 2005.

      Estimated  amortization  expense on core deposit  intangible for the three
      months  ended  December  31, 2006 and each of the five  succeeding  fiscal
      years is as follows:

                                                 Core
                                               Deposit
                                              Intangible
                                             ------------

      Three months ended December 31, 2006   $    155,500
      Year ended December 31, 2007                546,000
      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

(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 September 30, 2006,  are  summarized as
      follows:

<TABLE>
<CAPTION>
                                           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                $   763,013   $     1,829   $ 7,775,100   $   123,195   $ 8,538,113   $   125,024
        Mortgage-backed securities          13,769            50       266,280         6,910       280,049         6,960
        Corporate                               --            --     3,953,190       144,187     3,953,190       144,187
                                       -----------   -----------   -----------   -----------   -----------   -----------
                                       $   776,782   $     1,879   $11,994,570   $   274,292   $12,771,352   $   276,171
                                       ===========   ===========   ===========   ===========   ===========   ===========
</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.

                                       12
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements

      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 eleased are
      considered  outstanding  for basic  and  diluted  income  per  share.  The
      weighted  average  share number has been  restated in all periods prior to
      July 10, 2006 to reflect the  additional  shares  issued to First  Federal
      shareholders through the conversion described in Note 1.

<TABLE>
<CAPTION>
                                                                Three Months Ended             Nine Months Ended
                                                                   September 30,                 September 30,
                                                            --------------------------    --------------------------
                                                                2006           2005           2006           2005
                                                            -----------    -----------    -----------    -----------
<S>                                                           <C>            <C>            <C>            <C>
      Net income available to common stockholders           $   524,124    $   450,554    $ 1,149,708    $ 1,481,203
                                                            ===========    ===========    ===========    ===========

      Basic potential common shares:
         Weighted average shares outstanding                  8,912,649      7,589,318      8,035,276      7,589,318
         Weighted average unallocated Employee Stock
            Ownership Plan shares                              (148,026)      (156,261)      (149,034)      (157,325)
                                                            -----------    -----------    -----------    -----------
                Basic weighted average shares outstanding     8,764,625      7,433,058      7,886,241      7,431,994

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

      Dilutive weighted average shares outstanding            8,764,625      7,433,058      7,886,241      7,431,994
                                                            ===========    ===========    ===========    ===========
</TABLE>


                                       13
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations


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
--------

Basic  and  diluted  income  per  share was $.06 and $.15 for the three and nine
months ended September 30, 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,
goodwill  impairment and impairment of mortgage servicing rights policies as the
most critical.

Allowance for Loan Losses. The allowance for loan losses is evaluated  quarterly
by management and is based upon  consideration of current  economic  conditions,
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 reasonable  assured.  This evaluation is inherently  subjective as it
requires material  estimates that may be susceptible to significant  revision as
more information becomes available.

The analysis has two  components:  specific  and general  allocations.  Specific
allocations are made for loans that are determined to be impaired. Impairment is
measured by determining  the present value of expected future cash flows or, for
collateral-dependent loans, the fair value of the collateral adjusted for market
conditions  and  selling  expenses.  The general  allocation  is  determined  by
segregating  the remaining loans by type of loan, risk weighting (if applicable)
and payment  history.  Management  also  analyzes  historical  loss  experience,
delinquency  trends,  general  economic  conditions  and geographic and industry
concentrations.  This analysis  establishes factors that are applied to the loan
groups to determine the amount of the general allowance for loan losses.  Actual
loan losses may be  significantly  more than the  allowances  established  which
could have a material negative effect on the Company's financial results.

                                       14
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations

Goodwill.  Goodwill is tested  annually for  impairment,  or more  frequently if
events or changes in circumstances  indicate there may be an impairment.  If the
carrying amount of reporting unit goodwill exceeds its fair value, an impairment
loss is recognized in an amount equal to that excess. Operations of the Bank are
managed and financial  performance is evaluated on an industry-wide  basis. As a
result,  all of  the  Bank's  operations  are  considered  by  management  to be
aggregated in one reporting unit. Accordingly,  all goodwill will be assigned to
the operations of the Bank as one reporting unit.

Mortgage Servicing Rights.  Mortgage servicing rights on originated or purchased
loans that have been sold are  capitalized  by allocating  the total cost of the
mortgage  loans  between the  mortgage  servicing  rights and the loans based on
their  relative  fair  values.  Capitalized  servicing  rights are  amortized in
proportion to and over the period of estimated servicing revenues. Impairment of
mortgage  servicing  rights is assessed based on the fair value of those rights.
Fair values are estimated using  discounted cash flows based on a current market
interest rate. For purposes of measuring  impairment,  the rights are stratified
based on the  predominant  risk  characteristics  of the underlying  loans.  The
predominant  characteristic  currently used for  stratification is type of loan.
The  amount of  impairment  recognized  is the  amount by which the  capitalized
mortgage servicing rights for a stratum exceeds their fair value.

Qualitative Disclosures of Market Risk
--------------------------------------

The   Company's   principal   financial   objective  is  to  achieve   long-term
profitability  while reducing its exposure to fluctuating  interest  rates.  The
Company has an exposure to interest rate risk. The Company has employed  various
strategies  intended to minimize  the  adverse  effect of interest  rate risk on
future  operations  by  providing  a better  match  between  the  interest  rate
sensitivity  of  its  assets  and  liabilities.  In  particular,  the  Company's
strategies  are intended to stabilize  net interest  income for the long-term by
protecting its interest rate spread against  increases in interest  rates.  Such
strategies  include the  origination for portfolio of  adjustable-rate  mortgage
loans (AMLs)  secured by  multi-family  and commercial  real estate,  commercial
business  loans  and the  origination  of  other  types of  adjustable-rate  and
short-term  loans with  greater  interest  rate  sensitivities  than  long-term,
fixed-rate  residential mortgage loans. In addition,  the Bank sells some of its
fixed-rate, one-to four-family loans in the secondary market.

Quantitative Disclosures of Market Risk
---------------------------------------

The  Company  does  not  purchase  derivative  financial  instruments  or  other
financial instruments for trading purposes.  Further, the Company is not subject
to any foreign currency exchange rate risk, commodity price risk or equity price
risk.  The  Company  is  subject to  interest  rate  risk.  The Office of Thrift
Supervision,  the Bank's primary  regulator  ("OTS") provides a net market value
methodology  to measure the interest rate risk exposure of thrift  institutions.
This exposure is a measure of the potential  decline in the net portfolio  value
("NPV") of the  institution  based upon the effect of an assumed 100 basis point
increase or decrease in interest rates. NPV is the present value of the expected
net cash flows from the institution's financial instruments (assets, liabilities
and off-balance sheet contracts).  Loans, deposits, advances and investments are
valued taking into consideration similar maturities,  related discount rates and
applicable prepayment assumptions.

                                       15
<PAGE>
                        FIRST CLOVER LEAF FINANCIAL CORP.

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations

Liquidity and Capital Resources
-------------------------------

The Company's  principal sources of funds are cash receipts from deposits,  loan
repayments by borrowers,  proceeds from maturing  securities,  advances from the
Federal Home Loan Bank (FHLB) and net income. The Bank has an agreement with the
FHLB of Chicago to obtain cash advances,  should the Bank need additional  funds
for loan  originations  or other  purposes.  The Company is a party to financial
instruments with off-balance-sheet risk in the normal course of business to meet
the  financing  needs of its  customers.  These  financial  instruments  include
commitments to extend credit and standby  letters of credit.  These  instruments
involve,  to  varying  degrees,  elements  of credit and  interest  rate risk in
addition  to the  amounts  recognized  in the  balance  sheets.  Commitments  to
originate  loans  are  legally  binding  agreements  to  lend  to the  Company's
customers.  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 September 30, 2006 follows:

<TABLE>
<CAPTION>
                                                                          Range of
                                Variable        Fixed                     Rates on
                                  Rate           Rate         Total      Fixed Rate
                               Commitments   Commitments   Commitments   Commitments
                               -----------   -----------   -----------   -----------
<S>                            <C>           <C>           <C>           <C>
Commitments to extend credit   $12,826,841   $ 5,025,863   $17,852,704   5.50%-18.00%
Stanby letters of credit       $   380,886   $ 2,300,000   $ 2,680,886          9.25%

</TABLE>

Recent Accounting Pronouncements
--------------------------------

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

In March 2006, the Financial  Accounting Standards Board (FASB) issued Statement
of Financial  Accounting  Standards (SFAS) No. 156, "Accounting for Servicing of
Financial  Assets - an amendment of SFAS No. 140,  "Accounting for Transfers and
Servicing of Financial Assets and  Extinguishments  of Liabilities," to simplify
the  accounting  for  separately   recognized  servicing  assets  and  servicing
liabilities.  SFAS No. 156 is effective as of the beginning of an entity's first
fiscal year that begins after  September  15, 2006.  The Company does not expect
SFAS No. 156 to have a material  impact on the Company's  financial  position or
results of operation.

In June 2006,  the FASB  issued  FASB  Interpretation  No. 48,  "Accounting  for
Uncertainty  in  Income  Taxes  - an  interpretation  of  FASB  No.  109."  This
Interpretation  prescribes a recognition threshold and measurement attribute for
financial  statement  recognition  and  measurement  of a tax position  taken or
expected to be taken in a tax return,  and provides  guidance on  derecognition,
classification,   interest  and  penalties,   accounting  in  interim   periods,
disclosure and  transition.  This  Interpretation  is effective for fiscal years
beginning after December 15, 2006. The Company is currently assessing the impact
of the Interpretation on its financial statements.

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.

                                       16
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations

In September  2006,  the FASB issued SFAS No. 158,  "Employers'  Accounting  for
Defined Benefit Pension and Other  Postretirement  Plans." SFAS No. 158 requires
an entity to recognize the overfunded or underfunded status of a defined benefit
pension and other  postretirement  plan (other than a multiemployer  plan) as an
asset or liability in its balance sheet and to recognize  changes in that funded
status in the year in which the changes occur though comprehensive  income. SFAS
No. 158 also requires an entity to measure the funded status of a plan as of the
balance sheet date,  with limited  exceptions.  SFAS No. 158 amends SFAS No. 87,
"Employers'  Accounting for  Settlements  and  Curtailments  of Defined  Benefit
Pension  Plans and for  Termination  Benefits,"  SFAS No. 106,  and SFAS No. 132
(revised 2003),  "Employers  Disclosures about Pensions and Other Postretirement
Benefits,"  and other  accounting  literature.  An entity will continue to apply
SFAS No. 87, 88 and 106 for  measurement of plan assets and benefit  obligations
as of the balance  sheet date and  determination  of net periodic  benefit cost.
Public  entities  are  required to initially  recognize  the funded  status of a
defined  benefit plan and to provide the required  disclosures  as of the end of
the fiscal year ending after December 15, 2006. The Company does not expect SFAS
No. 158 to have any impact on the  Company's  financial  position  or results of
operation, because the Company does not have any defined benefit plans.

Financial Condition
-------------------

Total  Assets.  Total assets  increased to $340.7  million at September 30, 2006
from  $140.2  million  at  December  31,  2005.  The  increase  was  due  to the
acquisition  of Clover Leaf  Financial  Corp.  and the proceeds from the sale of
First Clover Leaf Financial Corp. common stock. Net proceeds from sale of common
stock of $40.2  million were  allocated as follows:  $6.4 million to Clover Leaf
stockholders for the cash portion of the merger consideration; $13.7 million was
retained by First Clover Leaf Financial  Corp; and $20.1 million was invested in
First Clover Leaf Bank.  The  majority of the net  proceeds  from sale of common
stock were temporarily  invested in federal funds sold, and FHLB demand account,
to a lesser  extent.  Federal funds sold increased to $29.2 million at September
30, 2006 from $2.4 million at December 31, 2005. Cash and due from banks rose to
$14.1  million at  September  30, 2006 from $1.0  million at December  31, 2005.
Securities  available for sale  increased to $32.2 million at September 30, 2006
from $12.9  million at December 31, 2005.  The increase was due primarily to the
acquisition  of  securities  of $17.3  million and  purchases  of $2.8  million,
partially offset by maturities of $1.3 million.  At September 30, 2006,  Federal
Home Loan Bank of Chicago  (FHLBC) stock  amounted to $6.8  million.  During the
second  quarter  of 2006,  the  Board of  Directors  of FHLBC  decided  to limit
redemptions of excess or voluntary  stock,  which is stock held in excess of the
amount  required as a condition of membership or for borrowings  from the FHLBC,
to the amount of  proceeds  from the  FHLBC's  recent  subordinated  debt issue.
Dividends will continue to require approval by the Federal Housing Finance Board
(FHFB).  As a result,  the Bank  redeemed its pro-rata  share of excess stock of
$2.1  million  during June 2006.  In  addition,  $2.7 million of FHLBC stock was
acquired from Clover Leaf.  Loans,  net amounted to $237.5  million at September
30, 2006,  compared to $115.6 million at December 31, 2005. The increase was due
primarily  to loans  acquired  of $109.1  million and new loan  originations  in
excess  of  loan  collections  of  $12.6  million.  Loan  originations  included
disbursements  for three  commercial  line of credit loans;  one loan secured by
accounts  receivable;  one loan secured by an automobile floor plan; and another
loan  secured by accounts  receivable,  inventory,  equipment  and real  estate.
Property and  equipment  increased  to $6.9  million at September  30, 2006 from
$860,000 at December 31, 2005 due to the  acquisition  of property and equipment
of $6.0  million.  Accrued  interest  receivable  increased  to $1.3  million at
September  30, 2006 from  $440,000 at December 31, 2005 due  principally  to the
acquisition of accrued interest receivable of $633,000,  and to a lesser extent,
purchases of securities,  new loan originations and timing of interest on loans.
Other  assets  increased  to $675,000  at  September  30,  2006 from  $24,000 at
December 31, 2005 due primarily to the Acquisition.

                                       17
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations

Total  Liabilities.  Deposits  increased to $224.5 million at September 30, 2006
from $102.1  million at  December  31,  2005 as a result of the  acquisition  of
deposits  of  $132.8  million  and net  withdrawals  of $10.4  million.  Accrued
interest  payable rose to $595,000 at September 30, 2006 from $5,000 at December
31, 2005 due  principally to the  acquisition  and timing of interest  payments.
Federal  Home Loan Bank  advances  were $10.3  million at  September  30,  2006,
compared to none at December 31, 2005.  The increase was due to the  acquisition
of FHLB  advances  of  $13.3  million  less  net  repayments  of  $3.0  million.
Securities sold under agreement to repurchase were $6.6 million at September 30,
2006 due to the Acquisition and additional borrowings. Subordinated debt of $3.8
million was assumed as a result of the Acquisition.  Other liabilities increased
to $1.9  million at September  30, 2006 from  $334,000 at December 31, 2005 as a
result of the recognition of deferred taxes on purchase  accounting  adjustments
of $1.1 million and the acquisition of accrued expenses.

Stockholders'  Equity.  Stockholders'  equity  increased  to  $93.1  million  at
September  30, 2006 from $37.7  million at December 31, 2005, as a result of net
proceeds  from sale of common stock in the public  offering of $40.2 million and
1,484,800  shares issued to existing Clover Leaf Financial  Corp.  shareholders,
valued at $14.8  million,  net income of $1.1  million for the nine months ended
September 30, 2006 and a decrease in unrealized losses on securities, net of tax
effect of $117,000, partially offset by cash dividends paid of $939,000.

Regulatory Capital
------------------

The Bank is required to maintain certain minimum capital  requirements under OTS
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.   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 capital amounts and classifications are also subject
to judgments  by the  regulators  about  components,  risk-weightings  and other
factors.  The Bank's actual and required capital amounts and ratios at September
30, 2006 were as follows:

<TABLE>
<CAPTION>
                                                                                  Minimum Required
                                                                   ----------------------------------------------
                                                                       for Capital              to be "Well
                                                 Actual                  Adequacy               Capitalized"
                                         ----------------------    ---------------------    ---------------------
                                           Amount       Ratio        Amount      Ratio       Amount       Ratio
                                         ---------    ---------    ---------   ---------    ---------   ---------
<S>                                      <C>               <C>     <C>               <C>    <C>               <C>
                                                                   (Dollars in Thousands)
Stockholders' equity                     $  74,274
Goodwill and other intangibles             (11,573)
Disallowed servicing assets                   (359)
Unrealized loss on securities AFS, net          22
                                         ---------
Tangible capital                         $  62,364         19.3%   $   4,841         1.5%         N/A          --
General valuation allowance                  1,408
                                         ---------

Total capital to risk-weighted assets    $  63,772         28.2%   $  18,097         8.0%   $  22,621        10.0%
                                         =========

Tier 1 capital to risk-weighted assets   $  62,364         27.6%   $     N/A          --    $  13,572         6.0%

Tier 1 capital to total assets           $  62,364         19.3%   $  12,910         4.0%   $  16,138         5.0%
</TABLE>


                                       18
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations


Asset Quality
-------------

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

<TABLE>
<CAPTION>
                                                         September 30,    December 31,
                                                             2006             2005
                                                        --------------   --------------
<S>                                                     <C>              <C>
Loans 90 days or more past due and still accruing       $      386,637   $       11,035
Nonaccrual loans                                               576,775            4,453
                                                        --------------   --------------
  Total nonperforming loans                             $      963,412   $       15,488
                                                        ==============   ==============

Allowance for losses on nonperforming loans             $       18,452   $        4,453
                                                        ==============   ==============

Nonperforming loans with no allowance for loan losses   $      944,960   $       11,035
                                                        ==============   ==============
</TABLE>

At  September  30,  2006,  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.

Under the Company's  internal  review  policy,  loans  classified as substandard
increased to $804,882 at September 30, 2006 from $4,453 at December 31, 2005. At
September 30, 2006 loans classified doubtful amounted to $3,246 compared to none
at December 31, 2005.

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

                                               Nine Months Ended
                                        September 30,    September 30,
                                            2006             2005
                                       --------------   --------------
Balance at beginning of period         $      428,419   $      428,419
   Allowance acquired by acquisition          911,021               --
   Charge-offs                                     --               --
   Recoveries                                   1,358               --
   Provision charged to expense                66,667               --
                                       --------------   --------------
Balance at end of period               $    1,407,465   $      428,419
                                       ==============   ==============

                                       19
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations

Results of Operations
---------------------

General.  Net income  increased to $524,000 for the three months ended September
30, 2006 from  $451,000  for the three  months ended  September  30,  2005.  The
increase  in net income was due to higher net  interest  income and  noninterest
income,  which more than offset higher noninterest expense and higher taxes. Net
income  decreased to $1.1 million for the nine months ended  September  30, 2006
from $1.5 million for the nine months ended  September 30, 2005. The decrease in
net income  resulted  from higher  noninterest  expense,  which more than offset
higher net interest income and lower income taxes.

Net interest income. Net interest income increased to $2.5 million for the three
months  ended  September  30, 2006 from $1.1  million for the three months ended
September 30, 2005. Net interest  income  increased to $4.6 million for the nine
months  ended  September  30, 2006 from $3.7  million for the nine months  ended
September  30,  2005.  The  increase  was due  principally  to the  Acquisition,
partially offset by a lower interest rate spread.  Net average  interest-earning
assets were $43.1 million for the nine months ended September 30, 2006, compared
to $36.0  million  for the same  period in 2005.  The ratio of  interest-earning
assets to  interest-bearing  liabilities  dropped to 128.9% for the nine  months
ended  September 30, 2006 from 135.8% for the same period in 2005.  The interest
rate spread  decreased  to 2.36% for the nine months  ended  September  30, 2006
versus 2.82% for the nine months ended  September 30, 2005.  The average rate on
interest-earning  assets increased by 42 basis points, while the average rate on
interest-bearing  liabilities  increased by 88 basis points.  The decline in the
interest rate spread was attributable to higher rates paid on customer deposits,
which more than offset the effect of a higher yield earned on the loan portfolio
as a result of the  Acquisition  and  amortization  of the  purchase  accounting
adjustments on loans.

Interest  income.  Interest  income on loans  increased  to $3.8 million for the
three  months  ended  September  30, 2006 from $1.7 million for the three months
ended September 30, 2005. Interest income on loans increased to $7.2 million for
the nine months ended  September  30, 2006 from $5.0 million for the nine months
ended  September 30, 2005.  Interest  income on loans  increased  primarily as a
result of a higher  average  balance due  principally  to the  Acquisition.  The
average  balance of loans was $149.9  million  and $113.5  million  for the nine
months ended  September  30, 2006 and 2005,  respectively.  The average yield on
loans increased to 6.43% for the nine months ended September 30, 2006 from 5.88%
for the nine months ended  September 30, 2005.  Interest income on loans for the
three and nine months ended  September  30, 2006  included  amortization  of the
purchase  accounting  adjustment  for  loans of  $204,000.  Without  this  yield
adjustment, the average yield on loans would have been 6.25%.

Interest  income on securities  increased to $454,000 for the three months ended
September 30, 2006 from  $226,000 for the  comparable  period in 2005.  Interest
income on securities  increased to $852,000 for the nine months ended  September
30, 2006 from $749,000 for the  comparable  period in 2005.  Interest  income on
securities  increased due primarily to a higher  average  balance as a result of
the  Acquisition.  The average balance of securities was $25.5 million and $21.1
million for the nine months ended September 30, 2006 and 2005, 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 $16.8 million and $2.0 million for the nine months ended  September
30,  2006  and  2005,   respectively.   The  higher  average  balance  of  other
interest-bearing  deposits resulted  primarily from the  subscriptions  received
during the  Company's  Conversion  stock  offering.  The average  yield on other
interest-bearing  assets  increased to 5.39% for the nine months ended September
30, 2006 from

                                       20
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations

3.38%  for the nine  months  ended  September  30,  2005.  The  higher  yield on
interest-bearing  deposits  was  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 $2.0 million for the
three months ended  September  30, 2006 from $781,000 for the three months ended
September 30, 2005.  Interest expense on deposits  increased to $3.9 million for
the nine months ended  September  30, 2006 from $2.1 million for the nine months
ended September 30, 2005.  Higher cost of funds resulted from the acquisition of
deposits  of  $132.8   million  and  higher  market   interest   rates  paid  on
certificates.  The  average  balance of  deposits  was $142.5  million and $99.5
million for the nine months ended September 30, 2006 and 2005, respectively. The
average rate on deposits  increased to 3.65% for the nine months ended September
30, 2006 from 2.85% for the nine months ended September 30, 2005.

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

Provision  for loan losses.  Provision for loan losses was $67,000 for the three
and nine months ended September 30, 2006. There was no provision for loan losses
for the three and nine months  ended  September  30,  2005.  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 $72,000 for the three months
ended  September  30, 2006 from $2,000 for the three months ended  September 30,
2005.  Noninterest  income  increased  to  $75,000  for the  nine  months  ended
September  30, 2006 from $10,000 for the nine months ended  September  30, 2005.
The increase was due to service  charge income on deposit  accounts and customer
debit and credit cardholders acquired as a result of the Acquisition.

Noninterest expense. Noninterest expense increased to $1.7 million for the three
months  ended  September  30,  2006 from  $424,000  for the three  months  ended
September 30, 2005.  Noninterest  expense increased to $2.7 million for the nine
months  ended  September  30, 2006 from $1.3  million for the nine months  ended
September 30, 2005.

Compensation  and  employee  benefits,  the  largest  component  of  noninterest
expense,  increased by $384,000 to $611,000 for the three months ended September
30, 2006 from  $227,000  for the  comparable  period in 2005.  Compensation  and
employee  benefits  increased  by $406,000  to $1.1  million for the nine months
ended  September  30,  2006 from  $666,000  for the  comparable  period in 2005.
Compensation and employee benefits  increased  primarily as a result of a higher
number of personnel and salary levels due to the Acquisition. As a result of the
Acquisition,  the number of full-time  equivalent  employees increased from 9 to
44.

                                       21
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations

Occupancy expense rose to $183,000 for the three months ended September 30, 2006
compared  to  $30,000  for the  comparable  period  in 2005.  Occupancy  expense
increased to $240,000 for the nine months ended

September  30, 2006 from $84,000 for the  comparable  period in 2005.  Occupancy
expense  increased  due to the  Acquisition  in July 2006 and  operation of four
offices versus one office in the prior period.

Data  processing  services  increased  to $103,000  for the three  months  ended
September  30, 2006 from $16,000 for the three months ended  September 30, 2005.
Data  processing  services  increased  to  $204,000  for the nine  months  ended
September  30, 2006 from $51,000 for the nine months ended  September  30, 2005.
Data  processing  services  rose as a result  of the  acquisition  of  deposits,
including  retail  and  commercial   demand  deposit   accounts,   and  contract
termination  costs with the Company's  service bureau and deconversion  expenses
incurred  in  the  process  of the  Conversion  to the  acquired  entity's  data
processing system. These costs for the three and nine months ended September 30,
2006 were $15,000 and $78,000, respectively.

Advertising  increased to $143,000 for the three months ended September 30, 2006
from  $14,000  for the  three  months  ended  September  30,  2005.  Advertising
increased to $276,000 for the nine months ended  September 30, 2006 from $31,000
for the nine months ended  September  30,  2005.  Advertising  increased  due to
marketing expenses associated with the Acquisition.

Director  fees  increased to $132,000 for the three months ended  September  30,
2006 from $33,000 for the comparable period in 2005.  Director fees increased to
$231,000  for the nine months  ended  September  30, 2006 from  $117,000 for the
comparable  period in 2005. The increase was due to a higher number of directors
and additional meetings held related to the Acquisition.

Professional  services increased to $76,000 for the three months ended September
30, 2006 from $48,000 for the comparable period in 2005.  Professional  services
increased to $162,000 for the nine months ended September 30, 2006 from $149,000
for the  comparable  period in 2005.  Professional  services for the nine months
ended  September 30, 2006  increased as a result of higher  expenses  associated
with public reporting requirements.

Other  noninterest  expenses  increased  to $256,000  for the three months ended
September  30,  2006 from  $56,000  for the  comparable  period  in 2005.  Other
noninterest  expenses  increased to $386,000 for the nine months ended September
30, 2006 from  $184,000 for the  comparable  period in 2005.  Other  noninterest
expense increased due to the Acquisition,  including  expenses related to demand
deposit accounts and internet banking services.

Income  taxes.  Income  taxes  increased  to $345,000 for the three months ended
September 30, 2006 from $277,000 for the comparable period in 2005. Income taxes
decreased to $728,000 for the nine months ended September 30, 2006 from $909,000
for the  comparable  period in 2005. The primary reason for the change in income
taxes was the level of pre-tax income.  The effective tax rate was 39.7% for the
three months ended September 30, 2006 versus 38.0% for the comparable  period in
2005.  The effective tax rate was 38.8% for the nine months ended  September 30,
2006 versus 38.0% for the comparable period in 2005.

                                       22
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                             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.  It
should be noted that the design of any system of  controls is based in part upon
certain  assumptions about the likelihood of future events,  and there can be no
assurance  that any design will succeed in achieving  its stated goals under all
potential future conditions, regardless of how remote.

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.

         On  July  10,  2006,  the  Company  completed  its  stock  offering  in
connection with the second-step  conversion of First Federal Financial Services,
MHC  (the  "Conversion").  As part of the  Conversion,  the  Company  registered
5,091,625  shares  of  its  common  stock,  par  value  $0.10  per  share,  on a
Registration  Statement  on  Form  SB-2,  declared  effective  on May  15,  2006
(Commission File No. 333-132423).

         In the  Conversion,  the Company  sold  4,174,125  shares of its common
stock at $10.00 per share.  In addition,  each  currently  outstanding  share of
common  stock  of  First  Federal  Financial   Services,   Inc.,  the  Company's
predecessor,  was  converted  into the  right to  receive  1.936  shares  of the
Company's common stock.

         Also on July 10,  2006,  the  Company  completed  the  Acquisition.  In
connection with the Acquisition,  the Company registered 5,702,122 shares of its
common stock on a Registration Statement of Form S-4, declared effective May 15,
2006  (Commission  File No.  333-132424).  Shareholders of Clover Leaf Financial
Corp.  as of the  close of  business  on July 10,  2006  received  total  merger
consideration of approximately $21.2 million,  consisting of 1,484,800 shares of
Company common stock and approximately $6.4 million in cash, or $41.56 of merger
consideration  per share of Clover Leaf Financial  Corp. Cash was issued in lieu
of fractional shares at a rate of $10.00 per share.

         Keefe, Bruyette & Woods, Inc. was engaged to assist in the marketing of
the common stock in the Conversion. For these services, Keefe, Bruyette & Woods,
Inc.  received a management fee of $25,000 and a marketing fee equal to 1.35% of
the  dollar  amount  of  shares of common  stock  sold in the  subscription  and
community  offerings,  other than shares  purchased by officers,  directors  and
employees  or  their  immediate  families,  and  any  shares  purchased  by  the
tax-qualified and non-qualified  employee benefit plans of First Federal Savings
and Loan  Association of Edwardsville.  No fee was payable to Keefe,  Bruyette &
Woods, Inc. with respect to shares issued to stockholders of Clover Leaf. Keefe,
Bruyette & Woods, Inc. was also reimbursed for reasonable out-of-pocket expenses
and for attorney's fees.

         The Conversion  stock  offering,  which was completed on July 10, 2006,
resulted in gross  proceeds  of $41.7  million,  through  the sale of  4,174,125
shares at a price of $10.00 per share.  Expenses  related to the  offering  were
approximately  $1.6 million,  including  the expenses paid to Keefe,  Bruyette &
Woods, Inc. Net proceeds of the offering were approximately $40.1 million.

                                       24
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

         The Company used approximately $6.4 million of the proceeds to fund the
cash  portion of the merger  consideration  for the  Acquisition.  Approximately
$13.7  million of the net proceeds of the offering were retained by the Company,
and the remainder of the $20.1 million of net proceeds were contributed to First
Clover Leaf Bank.  All of such  proceeds were  temporarily  invested in cash and
cash  equivalents,  consisting  primarily of federal funds sold, and to a lesser
extent,  the FHLB demand account.  Management of the Company intends to reinvest
these funds  primarily in government  agency  obligations  and loans in the near
term.


Item 3 - Defaults upon Senior Securities.

      Not applicable.

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

      Not applicable.

 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.


                                       25
<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: November 14, 2006        BY:  /s/ Dennis M. Terry
      -----------------             -------------------
                                    Dennis M. Terry, President
                                    and Chief Executive Officer

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




                                       26