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, 2006
                               -------------

[_]      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)

300 St. Louis Street, Edwardsville, IL                     62025
---------------------------------------                 -----------
(Address of principal executive office)                 (Zip Code)

Registrant's telephone number, including area code (618) 656-6200
                                                   --------------

First Federal Financial Services, Inc.    Not applicable
--------------------------------------   ----------------
(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 [_].

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [_]. No [X].

Transitional Small Business Disclosure Format (Check one): 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 7, 2006
               -----                                --------------------------
Common Stock, par value $.10 per share                       9,074,118

<PAGE>


                        FIRST CLOVER LEAF FINANCIAL CORP.

                                   FORM 10-QSB

                       FOR THE QUARTER ENDED June 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                    12

     Controls and Procedures                                            18

PART II - Other Information                                             19

Certifications                                                          21



<PAGE>
<TABLE>
<CAPTION>

                               FIRST CLOVER LEAF FINANCIAL CORP.

                                  Consolidated Balance Sheets
                                          (Unaudited)

                                                                    June 30,       December 31,
      Assets                                                          2006             2005
                                                                 -------------    -------------
<S>                                                                    <C>              <C>
Cash and due from banks                                          $  12,756,083    $   1,027,901
Federal funds sold                                                  28,200,000        2,400,000
                                                                 -------------    -------------
   Total cash and cash equivalents                                  40,956,083        3,427,901
Interest-bearing time deposits                                         250,000          250,000
Securities available for sale                                       13,820,169       12,944,395
Securities held to maturity, at amortized cost (fair value
   of $298,564 and $337,659, respectively)                             317,505          353,209
Federal Home Loan Bank stock                                         4,102,479        6,213,940
Loans, net of allowance for loan losses
   of $428,419                                                     119,162,708      115,645,079
Property and equipment                                                 856,811          860,086
Accrued interest receivable                                            505,461          439,632
Other assets                                                         1,044,802           24,104
                                                                 -------------    -------------
      Total assets                                               $ 181,016,018    $ 140,158,346
                                                                 =============    =============

      Liabilities and Stockholders' Equity
Deposits:
    Savings                                                      $  63,108,003    $  23,845,491
    Time, $100,000 and over                                         13,549,352       13,072,182
    Time, less than $100,000                                        66,234,321       65,194,451
                                                                 -------------    -------------
      Total deposits                                               142,891,676      102,112,124
Accrued interest payable                                                 5,516            4,755
Other liabilities                                                      236,200          333,885
                                                                 -------------    -------------
      Total liabilities                                            143,133,392      102,450,764
                                                                 -------------    -------------
Commitments and contingencies
Stockholders' equity:
    Preferred stock, $.10 par value;  1,000,000 shares
      authorized; no shares issued                                          --               --
   Common stock, $.10 par value; 10,000,000 shares authorized;
      3,920,060 shares issued and outstanding                          392,006          392,006
Additional paid-in capital                                          16,555,039       16,538,534
Retained earnings - substantially restricted                        21,980,749       21,759,719
Accumulated other comprehensive loss, net                             (271,166)        (187,842)
Unearned employee stock ownership plan shares                         (774,002)        (794,835)
                                                                 -------------    -------------
      Total stockholders' equity                                    37,882,626       37,707,582
                                                                 -------------    -------------
      Total liabilities and stockholders' equity                 $ 181,016,018    $ 140,158,346
                                                                 =============    =============

See accompanying notes to consolidated financial statements.

</TABLE>
                                               3
<PAGE>
<TABLE>
<CAPTION>

                                 FIRST CLOVER LEAF FINANCIAL CORP.

                                 Consolidated Statements of Income
                                            (Unaudited)

                                                     Three Months Ended         Six Months Ended
                                                          June 30,                  June 30,
                                                  -----------------------   -----------------------
                                                     2006         2005         2006         2005
                                                  ----------   ----------   ----------   ----------
<S>                                                   <C>         <C>           <C>         <C>
Interest income:
Interest and fees on loans                        $1,752,582   $1,672,124   $3,445,986   $3,323,066
Securities:
   Taxable interest income                           164,313      154,513      303,023      313,255
   Dividends                                          47,498      102,966       94,272      209,688
Interest-bearing deposits                             54,089       14,746       89,786       27,766
                                                  ----------   ----------   ----------   ----------
      Total interest income                        2,018,482    1,944,349    3,933,067    3,873,775
                                                  ----------   ----------   ----------   ----------
Interest expense:
   Deposits                                          988,291      693,716    1,860,859    1,345,846
   Advances from Federal Home Loan Bank                   --           --           --       13,939
                                                  ----------   ----------   ----------   ----------
      Total interest expense                         988,291      693,716    1,860,859    1,359,785
                                                  ----------   ----------   ----------   ----------
      Net interest income                          1,030,191    1,250,633    2,072,208    2,513,990
Provision for loan losses                                 --           --           --           --
                                                  ----------   ----------   ----------   ----------
      Net interest income after
          provision for loan losses                1,030,191    1,250,633    2,072,208    2,513,990
                                                  ----------   ----------   ----------   ----------
Noninterest income - other                             1,848        4,476        2,940        8,067
                                                  ----------   ----------   ----------   ----------
Noninterest expense:
   Compensation and employee benefits                231,526      216,834      461,189      438,988
   Occupancy expense                                  28,499       27,120       57,133       53,775
   Data processing services                           82,799       16,204      101,254       34,597
   Advertising                                        56,065       11,094      132,634       17,891
   Director fees                                      54,300       52,500       98,750       84,150
   Professional services                              34,469       64,050       85,555      101,378
   Other                                              74,667       59,118      130,049      127,929
                                                  ----------   ----------   ----------   ----------
      Total noninterest expense                      562,325      446,920    1,066,564      858,708
                                                  ----------   ----------   ----------   ----------
      Income before income taxes                     469,714      808,189    1,008,584    1,663,349
Income taxes                                         178,000      317,700      383,000      632,700
                                                  ----------   ----------   ----------   ----------
      Net income                                  $  291,714   $  490,489   $  625,584   $1,030,649
                                                  ==========   ==========   ==========   ==========

Basic and diluted income per share (see Note 3)   $     0.08   $     0.13   $     0.16   $     0.27
                                                  ==========   ==========   ==========   ==========
Dividends per share                               $     0.13   $     0.09   $     0.24   $     0.16
                                                  ==========   ==========   ==========   ==========

See accompanying notes to consolidated financial statements.

</TABLE>

                                                 4
<PAGE>
<TABLE>
<CAPTION>

                                   FIRST CLOVER LEAF FINANCIAL CORP.

                            Consolidated Statements of Comprehensive Income
                                              (Unaudited)

                                                   Three Months Ended             Six Months Ended
                                                         June 30,                     June 30,
                                                --------------------------   --------------------------
                                                    2006           2005          2006           2005
                                                -----------    -----------   -----------    -----------
<S>                                             <C>            <C>           <C>            <C>

Net income                                      $   291,714        490,489   $   625,584    $ 1,030,649
Other comprehensive income:
   Unrealized gains (losses) on securities
        arising during the period, net of tax       (33,230)        77,212       (83,324)       (43,993)
                                                -----------    -----------   -----------    -----------
Comprehensive income                            $   258,484    $   567,701   $   542,260    $   986,656
                                                ===========    ===========   ===========    ===========

See accompanying notes to consolidated financial statements.

</TABLE>

                                                   5
<PAGE>
<TABLE>
<CAPTION>

                                 FIRST CLOVER LEAF FINANCIAL CORP.

                               Consolidated Statements of Cash Flows
                                            (Unaudited)

                                                                             Six Months Ended
                                                                                June 30,
                                                                       --------------------------
                                                                          2006           2005
                                                                       -----------    -----------
<S>                                                                    <C>            <C>
Cash flows from operating activities:
   Net income                                                          $   625,584    $ 1,030,649
   Adjustments to reconcile net income to net
      cash flows from operating activities:
      Amortization of:
         Deferred loan origination (fees) costs, net                          (695)       (11,699)
         Premiums and discounts on securities                                6,117          3,227
      Provision for loan losses                                                 --             --
      Depreciation and amortization                                         27,834         24,481
      FHLB stock dividends                                                      --       (209,600)
      ESOP expense                                                          37,338         31,070
      Change in assets and liabilities:
        Decrease (increase) in accrued interest receivable                 (65,829)       (29,840)
        Decrease (increase) in other assets                               (965,266)       (50,285)
        Increase (decrease) in accrued interest payable                        761         (3,318)
        Increase (decrease) in other liabilities                           (97,685)        59,655
                                                                       -----------    -----------
           Net cash flows from operating activities                       (431,841)       844,340
                                                                       -----------    -----------
Cash flows from investing activities: Available for sale securities:
      Purchases                                                         (1,769,463)            --
      Proceeds from call and maturities                                    750,000        500,000
  Held to maturity securities - proceeds from paydowns                      34,520         58,556
  Redemption of Federal Home Loan Bank Stock                             2,111,461      1,900,000
  Loan originations, net of principal collected                         (3,516,934)    (1,961,570)
  Purchase of property and equipment                                       (24,559)        (9,878)
                                                                       -----------    -----------
           Net cash flows from investing activities                    $(2,414,975)   $   487,108
                                                                       -----------    -----------
                                                                                      (Continued)
</TABLE>

                                                6
<PAGE>
<TABLE>
<CAPTION>

                         FIRST CLOVER LEAF FINANCIAL CORP.

                       Consolidated Statements of Cash Flows
                                    (Unaudited)

(Continued)
                                                             Six Months Ended
                                                                 June 30,
                                                       ----------------------------
                                                           2006            2005
                                                       ------------    ------------
<S>                                                       <C>             <C>
Cash flows from financing activities:
   Net increase (decrease) in savings accounts         $ 39,262,512    $ (2,651,639)
   Net increase (decrease) in time accounts               1,517,040       5,143,722
   Repayment of advances from FHLB                               --      (2,900,000)
   Cash dividends                                          (404,554)       (268,820)
                                                       ------------    ------------
         Net cash flows from financing activities        40,374,998        (676,737)
                                                       ------------    ------------
Net increase (decrease) in cash and cash equivalents     37,528,182         654,711
Cash and cash equivalents at beginning of period          3,427,901       1,636,987
                                                       ------------    ------------
Cash and cash equivalents at end of period             $ 40,956,083    $  2,291,698
                                                       ============    ============


Supplemental disclosures of cash flow information:
Cash paid during the period for:
     Interest                                          $  1,860,098    $  1,363,103
     Income taxes, net of refunds                      $    467,000    $    598,411

See accompanying notes to consolidated financial statements.

</TABLE>


                                         7
<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 the Company for the year ended  December 31, 2005
      contained in the 2005 Annual  Report to  Shareholders  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.  (Company),  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 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  ("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) would
      acquire all of the common stock of Clover Leaf (Acquisition).

      The accompanying  unaudited  consolidated financial statements include the
      accounts of First Federal  Financial  Services,  Inc. and its wholly-owned
      subsidiary First Federal Savings and Loan Association of Edwardsville. See
      information  which  follows  related  to the  Conversion  and  Acquisition
      completed subsequent to June 30, 2006.

      The Conversion and Acquisition  were  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
      $40.0 million  after  deduction of  conversion  costs of $1.7 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. As a result of the Conversion and Acquisition,  First
      Clover Leaf has 9,074,118 shares issued and outstanding.  Clover Leaf Bank
      merged its operations into First Federal  Savings and Loan  Association of
      Edwardsville  and the combined  entity was renamed  First Clover Leaf Bank
      (Bank).

                                       8
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements


      The reorganization was accounted for as a change in corporate form with no
      resulting change in historical basis of the Company's assets,  liabilities
      and  equity.  First  Clover  Leaf'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 First Clover Leaf.  Deposit account holders will continue to be insured
      by the FDIC. A liquidation  account was  established in an amount equal to
      the  percentage of  outstanding  shares of the common stock of the Company
      owned by the MHC multiplied by the Company's stockholders equity as of the
      latest balance sheet date in the final  prospectus used in the Conversion,
      or $20.7 million.  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  Association,  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 the
      Conversion in the related deposit balance.

      The Bank may not  declare,  pay a dividend  on, or  repurchase  any of its
      capital stock,  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.

(2)   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, 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                $ 3,203,523   $    64,595   $ 5,733,108   $   166,892   $ 8,936,631   $   231,487
  Corporate                          474,250        18,184     3,409,288       196,107     3,883,538       214,291
                                 -----------   -----------   -----------   -----------   -----------   -----------
                                 $ 3,677,773   $    82,779   $ 9,142,396   $   362,999   $12,820,169   $   445,778
                                 ===========   ===========   ===========   ===========   ===========   ===========

Securities held to maturity:
  Mortgage-backed securities     $        --   $        --   $   278,413   $    18,941   $   278,413   $    18,941
                                 ===========   ===========   ===========   ===========   ===========   ===========
</TABLE>

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

                                       9
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements


(3)   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.

<TABLE>
<CAPTION>
                                                           Three Months Ended            Six Months Ended
                                                                June 30,                     June 30,
                                                      --------------------------    --------------------------
                                                         2006            2005           2006          2005
                                                      -----------    -----------    -----------    -----------
<S>                                                     <C>            <C>            <C>            <C>
Net income available to common stockholders           $   291,714    $   490,489    $   625,584    $ 1,030,649
                                                      ===========    ===========    ===========    ===========

Basic potential common shares:
   Weighted average shares outstanding                  3,920,060      3,920,060      3,920,060      3,920,060
   Weighted average unallocated Employee Stock
      Ownership Plan shares                               (77,499)       (82,241)       (78,020)       (82,794)
                                                      -----------    -----------    -----------    -----------
          Basic weighted average shares outstanding     3,842,561      3,837,819      3,842,040      3,837,266

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

Dilutive weighted average shares outstanding            3,842,561      3,837,819      3,842,040      3,837,266
                                                      ===========    ===========    ===========    ===========

Basic and diluted income per share                    $      0.08    $      0.13    $      0.16    $      0.27
                                                      ===========    ===========    ===========    ===========
</TABLE>

(4)   Subsequent  to June 30, 2006 the Board of  Directors  of First Clover Leaf
      declared  a $.06 per  share  cash  dividend  payable  August  25,  2006 to
      stockholders of record on August 18, 2006. 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.

(5)   In February  2006, the FASB issued SFAS No. 155,  "Accounting  for Certain
      Hybrid Financial Instruments - an amendment of FASB Statements No. 133 and
      140."  SFAS No.  155 amends  FASB  Statements  No.  133,  "Accounting  for
      Derivative  Instruments and Hedging  Activities," and No. 140, "Accounting
      for  Transfers and Servicing of Financial  Assets and  Extinguishments  of
      Liabilities."  SFAS No. 155 resolves  issues  addressed  in Statement  133
      Implementation  Issue No. D1,  "Application of Statement 133 to Beneficial
      Interests in Securitized Financial Assets." The Statement is effective for
      all  financial  instruments  acquired or issued after the  beginning of an
      entity's  first fiscal year that begins  after  September  15,  2006.  The
      Company  does not expect  SFAS No.  155 to have a  material  impact on the
      Company's financial position or results of operation.

                                       10
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

                   Notes to Consolidated Financial Statements


      In March 2006, the FASB issued SFAS No. 156,  "Accounting for Servicing of
      Financial  Assets - an amendment of FASB  Statement No. 140." SFAS No. 156
      amends FASB Statement No. 140,  "Accounting for Transfers and Servicing of
      Financial Assets and  Extinguishments of Liabilities," with respect to the
      accounting  for  separately  recognized  servicing  assets  and  servicing
      liabilities.  Statement  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.

                                       11
<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.

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 one- to four- family,  multi-family,  and nonresidential
real estate 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.

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.

                                       12
<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 (FHLBC) to obtain cash advances, should the Bank need additional
funds for loan originations or other purposes. Commitments to originate mortgage
loans are legally  binding  agreements to lend to the Company's  customers  and,
generally expire in 90 days or less. At June 30, 2006,  commitments to originate
adjustable and fixed-rate  loans for portfolio were  approximately  $632,000 and
$1,504,000, respectively. Commitments on behalf of borrowers for unused lines of
credit for  construction  adjustable  and  fixed-rate  loans were  approximately
$994,000  and  $357,000,  respectively.   Interest  rates  on  these  fixed-rate
commitments generally ranged from 6.00% to 7.25%.

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

Total assets increased to $181.0 million at June 30, 2006 from $140.2 million at
December  31,  2005.  Substantially  all of the  increase  is  related  to  cash
received, through June 30, 2006, for subscription orders related to the offering
of First Clover Leaf common stock of $40.2 million which was invested in federal
funds  sold and FHLB  demand  account.  Federal  funds sold  increased  to $28.2
million at June 30, 2006 from $2.4 million at December  31,  2005.  Cash and due
from banks rose to $12.8  million at June 30, 2006 from $1.0 million at December
31, 2005.  Securities  available for sale increased to $13.8 million at June 30,
2006 from $12.9  million at December  31,  2005.  Purchases of $1.8 million were
partially offset by maturities of $800,000.

At June 30,  2006,  FHLBC  stock  amounted  to $4.1  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.

Loans,  net  amounted  to $119.2  million  at June 30,  2006.  Accrued  interest
receivable  increased to $505,000 at June 30, 2006 from $440,000 at December 31,
2005 due to a higher  securities  and  loan  portfolio  balance  and  timing  of
interest on loans.  Other assets increased to $1.0 million at June 30, 2006 from
$24,000 at December 31, 2005 due  primarily to costs  incurred  with the plan of
conversion  and  reorganization  from a mutual  holding  company  formation to a
capital  stock  corporation  and  acquisition  of Clover Leaf.  At June 30, 2006
conversion  costs of  $904,000  are  included  in other  assets and will  reduce
additional  paid-in  capital upon  recording of net proceeds from sale of common
stock.

Deposits  increased  to $142.9  million at June 30, 2006 from $102.1  million at
December 31, 2005 as a result of savings  deposits of $40.2 million  received in
connection  with the  subscription  offering.  Other  liabilities  decreased  to
$236,000 at June 30, 2006 from  $334,000 at December 31, 2005 as a result of the
timing of  payment  of  Federal  income  taxes  and  certain  accrued  expenses.
Stockholders'  equity  increased  to $37.9  million at June 30,  2006 from $37.7
million at December 31, 2005,  as a result of net income of $626,000 for the six
months ended June 30, 2006  partially  offset by cash dividends paid of $405,000
and an  increase  in  unrealized  losses  on  securities,  net of tax  effect of
$83,000.

                                       13
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

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


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 June 30, 2006 were
as follows:

<TABLE>
<CAPTION>

                                                                              Minim 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                      $30,245
Unrealized gain on securities AFS, net        183
                                          -------
Tangible capital                          $30,428       17.5%   $  2,616        1.5%        N/A          --
General valuation allowance                   429
                                          -------

Total capital to risk-weighted assets     $30,857       37.9%   $  6,508        8.0%   $  8,135       10.0%
                                          =======

Tier 1 capital to risk-weighted assets    $30,428       37.4%   $    N/A         --    $  4,881        6.0%

Tier 1 capital to total assets            $30,428       17.5%   $  6,976        4.0%   $  8,721        5.0%

</TABLE>

Critical Accounting Estimates
-----------------------------

The  Company  considers  the  allowance  for  loan  losses  to be  its  critical
accounting  estimate,  due to the higher degree of judgment and complexity  than
its other  significant  accounting  estimates.  The allowance for loan losses is
evaluated  quarterly by management and 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.
This  evaluation is  inherently  subjective  as it requires  estimates  that are
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,   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

                                       14
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

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


the Company's financial results.

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

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

<TABLE>
<CAPTION>
                                                           June 30,      December 31,
                                                             2006            2005
                                                        -------------   -------------
<S>                                                     <C>             <C>
Loans 90 days or more past due and still accruing       $          --   $      11,035
Nonaccrual loans                                              432,813           4,453
                                                        -------------   -------------
  Total nonperforming loans                             $     432,813   $      15,488
                                                        =============   =============

Allowance for losses on nonperforming loans             $       1,912   $       4,453
                                                        =============   =============

Nonperforming loans with no allowance for loan losses   $     430,901   $      11,035
                                                        =============   =============
</TABLE>

At June 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 $483,151 at June 30, 2006 from $4,453 at December 31, 2005.

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

Balance at December 31, 2005                              $428,419
   Charge-offs                                                  --
   Recoveries                                                   --
   Provision charged to expense                                 --
                                                          --------
Balance at June 30, 2006                                  $428,419
                                                          ========

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

Net income  decreased  to $292,000 for the three months ended June 30, 2006 from
$490,000  for the three  months  ended June 30,  2005.  Net income  decreased to
$626,000  for the six months  ended June 30, 2006 from $1.0  million for the six
months ended June 30, 2005.  The decrease in net income  resulted from lower net
interest income and higher noninterest expense.

Net  interest  income  decreased to $1.0 million for the three months ended June
30,  2006 from $1.3  million  for the three  months  ended  June 30,  2005.  Net
interest income decreased to $2.1 million for the six months ended June 30, 2006
from $2.5 million for the six months  ended June 30, 2005.  The decrease was due
to a lower interest rate spread.

                                       15
<PAGE>


                        FIRST CLOVER LEAF FINANCIAL CORP.

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


The ratio of  interest-earning  assets to  interest-bearing  liabilities dropped
slightly  to 134.6% for the six months  ended June 30,  2006 from 135.7% for the
same period in 2005.  The  interest  rate spread  decreased to 2.02% for the six
months  ended June 30, 2006 versus 2.97% for the six months ended June 30, 2005.
The average rate on interest-earning  assets decreased by 11 basis points, while
the average rate on interest-bearing  liabilities  increased by 84 basis points.
The decline in the interest rate spread was attributable to higher rates paid on
customer deposits and the effect of lower rates earned on FHLBC stock.

Interest  income on loans  increased  to $1.8 million for the three months ended
June 30,  2006 from $1.7  million  for the three  months  ended  June 30,  2005.
Interest income on loans increased to $3.4 million for the six months ended June
30, 2006 from $3.3  million  for the six months  ended June 30,  2005.  Interest
income on loans increased primarily as a result of a higher average balance. The
average  balance of loans was $116.9  million  and  $113.1  million  for the six
months ended June 30, 2006 and 2005,  respectively.  The average  yield on loans
increased  slightly  to 5.89% for the six months  ended June 30, 2006 from 5.88%
for the six months ended June 30, 2005. Interest income on securities  decreased
to  $212,000  for the three  months  ended June 30, 2006 from  $257,000  for the
comparable period in 2005.  Interest income on securities  decreased to $397,000
for the six months ended June 30, 2006 from $523,000 for the  comparable  period
in 2005. Interest income on securities  decreased due primarily to a lower yield
earned on FHLBC  stock and,  to a lesser  extent,  lower  average  balance.  The
dividend yield on FHLBC stock has decreased from 5.00% at June 30, 2005 to 3.10%
at June 30, 2006.  Overall,  the average yield on securities  decreased to 3.97%
for the six months  ended June 30, 2006 from 4.90% for the six months ended June
30, 2005. The average  balance of securities was $20.0 million and $21.3 million
for the six  months  ended June 30,  2006 and 2005,  respectively.  Interest  on
interest-bearing  deposits  increased due to a higher average balance and yield.
The higher average balance of  interest-bearing  deposits results primarily from
cash   received   from  the   subscription   offering.   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 on deposits  increased  to $988,000 for the three months ended
June 30,  2006 from  $694,000  for the three  months  ended June 30,  2005,  and
increased  to $1.9  million  for the six months  ended  June 30,  2006 from $1.3
million for the six months ended June 30, 2005.  Interest expense  increased due
to higher market interest rates paid on certificates and higher average balance,
primarily as a result of deposits from the  subscription  offering.  The average
rate on deposits  increased to 3.55% for the six months ended June 30, 2006 from
2.72% for the six months  ended June 30, 2005.  The average  balance of deposits
was $105.0  million and $98.9 million for the six months ended June 30, 2006 and
2005, respectively.

There was no  provision  for loan losses for the three and six months ended June
30,  2006 and  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.

Other  noninterest  income  declined for the three and six months ended June 30,
2006 due to lower rental income.

                                       16
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.

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


Noninterest  expense  increased  to $562,000 for the three months ended June 30,
2006 from  $447,000 for the three months ended June 30, 2005,  and  increased to
$1.1  million for the six months  ended June 30, 2006 from  $859,000 for the six
months ended June 30, 2005.  Compensation  and  employee  benefits,  the largest
component of noninterest expense, increased by $15,000 to $232,000 for the three
months  ended June 30, 2006 from  $217,000  for the  comparable  period in 2005.
Compensation and employee benefits  increased by $22,000 to $461,000 for the six
months  ended June 30, 2006 from  $439,000  for the  comparable  period in 2005.
Compensation and employee benefits increased as a result of higher salary levels
and higher expenses  related to the Employee Stock  Ownership Plan.  Pursuant to
Statement of Position 93-6,  "Employers' Accounting for Employee Stock Ownership
Plans," the Company  recognizes  compensation  expense  equal to the fair market
value of shares committed to be released during the period. ESOP expense for the
three and six months ended June 30, 2006 was $22,000 and $37,000,  respectively.
ESOP  expense  for the three and six months  ended June 30, 2005 was $15,000 and
$31,000, respectively.

Data  processing  services  increased to $83,000 for the three months ended June
30, 2006 from $16,000 for the three months ended June 30, 2005, and increased to
$101,000  for the six months ended June 30, 2006 from $35,000 for the six months
ended June 30,  2005.  Data  processing  services  rose as a result of  contract
termination costs with the Bank's service bureau.

Advertising  increased  to $56,000 for the three months ended June 30, 2006 from
$11,000 for the three  months  ended June 30,  2005.  Advertising  increased  to
$133,000  for the six months ended June 30, 2006 from $18,000 for the six months
ended June 30, 2005.  Advertising increased due to marketing expenses associated
with the merger with Clover Leaf.

Director  fees  increased to $99,000 for the six months ended June 30, 2006 from
$84,000 for the comparable  period in 2005 as a result of an additional board of
directors meeting held due to the acquisition of Clover Leaf.
Professional  services  decreased to $34,000 for the three months ended June 30,
2006 from  $64,000  for the  comparable  period in 2005.  Professional  services
decreased  to $86,000 for the six months  ended June 30, 2006 from  $101,000 for
the comparable period in 2005.  Professional  services  decreased as a result of
lower legal expenses.

Other noninterest  expense for the three months ended June 30, 2006 increased to
$75,000 from  $59,000 for the three months ended June 30, 2005 due  primarily to
higher discretionary  charitable contributions and other miscellaneous corporate
expenses.

Income taxes decreased to $178,000 for the three months ended June 30, 2006 from
$318,000 for the comparable  period in 2005.  Income taxes decreased to $383,000
for the six months ended June 30, 2006 from $633,000 for the  comparable  period
in 2005.  The primary reason for the decrease in income taxes was lower earnings
before income taxes. The effective tax rate was 37.9% for the three months ended
June 30, 2006 versus 39.3% for the comparable  period in 2005. The effective tax
rate was 38.0% for both the six months ended June 30, 2006 and comparable period
in 2005.

                                       17
<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.



                                       18
<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.

I     (a)   On  April 20, 2006 the Company held its Annual Meeting of
            Stockholders.

      (b)   At the meeting,  Larry W. Mosby, Joseph Stevens, and Robert Richards
            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
                    --------                   ---            --------

                    Larry W. Mosby          3,531,019          12,900

                    Joseph Stevens          3,531,019          12,900

                    Robert Richards         3,531,019          12,900

            (ii)  The ratification of the appointment of McGladrey & Pullen, LLP
                  as  independent  auditor  for the  Company  for the year ended
                  December 31, 2006:

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

                   3,543,919        3,538,719          200          5,000

II    (a)   On  June  27, 2006, First Federal Financial  Services,  Inc.  held a
            special meeting of stockholders.

      (b)   Not applicable.

      (c)   At the  meeting,  stockholders  were asked to consider and vote on a
            proposal to adopt that certain Plan of Conversion and Reorganization
            of First Federal  Financial  Services MHC dated January 31, 2006, as
            amended  ("Proposal  1"),  and to consider and vote on a proposal to
            adopt  that  certain  Agreement  and Plan of  Reorganization  by and
            between  First  Federal  Financial  Services,   MHC,  First  Federal
            Financial  Services,  Inc., First Clover Leaf Financial Corp., First
            Federal Savings and Loan Association of Edwardsville and Clover Leaf
            Financial  Corp. and Clover Leaf Bank,  dated as of February 3, 2006
            ("Proposal 2").

                                       19
<PAGE>

                        FIRST CLOVER LEAF FINANCIAL CORP.


            The votes cast were as follows:

                                     For            Against      Abstain
                                  ---------          -------      -------

            Proposal 1            3,305,039         10,805       26,300

            Proposal 2            3,304,039         36,805       1,300

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.

                                       20
<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 9, 2006          BY:    Larry W. Mosby
      --------------                 --------------
                                       Larry W. Mosby, President and Chief
                                         Executive Officer

                              BY:    Donald Engelke
                                     --------------
                                       Donald Engelke, Senior Vice President and
                                         Chief Financial Officer



                                       21