**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**____________**

**FORM      10-QSB**

| x | QUARTERLY                REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT                OF                1934 |
|---|---------------------------------------------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT |
|--------|--------------------------------------------------------------------------------|

**SUGAR      CREEK FINANCIAL CORP.**

| **United                States**                                                                  |   | **74-3210459**                                      |
|---------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

**28      West Broadway, Trenton, Illinois 62293-1304**

**(618)      224-9228**

**Not      Applicable**

----

**SUGAR      CREEK FINANCIAL CORP.**

**FORM      10-QSB**

**Index**

|                                               |                     |                                                                                                                                                                | ***Page No.*** |
|----------------------------------------------------|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
|                                               |                     |                                                                                                                                                                |                |
| **PART                  I. FINANCIAL INFORMATION** |                     |
|                                               |                     |                                                                                                                                                                |                |
|                                               | Item 1.             | Financial                  Statements                                                                                                                               | **1**               |
|                                               |                     |                                                                                                                                                                |                |
|                                               |                     | Consolidated                  Balance Sheets at December 31, 2007 and March 31, 2007                  (Unaudited)                                                   | 1                   |
|                                               |                     |                                                                                                                                                                |                |
|                                               |                     | Consolidated                  Statements of Operations for the three and nine months ended December                  31,                  2007 and 2006 (Unaudited) | 2                   |
|                                               |                     |                                                                                                                                                                |                |
|                                               |                     | Consolidated                  Statements of Cash Flows for the nine months ended December 31,                  2007 and                  2006 (Unaudited)           | 3                   |
|                                               |                     |                                                                                                                                                                |                |
|                                               |                     | Notes                  to Unaudited Consolidated Financial Statements                                                                                               | 4                   |
|                                               |                     |                                                                                                                                                                |                |
|                                               | Item                  2. | Management’s                  Discussion and Analysis or Plan of Operation                                                                                    | 5                   |
|                                               |                     |                                                                                                                                                                |                |
|                                               | Item 3.             | Controls                  and Procedures                                                                                                                            | 12                  |
|                                               |                     |                                                                                                                                                                |                |
| **PART                  II. OTHER INFORMATION**    |                     |
|                                               |                     |                                                                                                                                                                |                |
|                                               | Item                  1. | Legal                  Proceedings                                                                                                                                  | 13                  |
|                                               |                     |                                                                                                                                                                |                |
|                                               | Item 2.             | Unregistered                  Sales of Equity Securities and Use of Proceeds                                                                                        | 13                  |
|                                               |                     |                                                                                                                                                                |                |
|                                               | Item 3.             | Defaults                  upon Senior Securities                                                                                                                    | 13                  |
|                                               |                     |                                                                                                                                                                |                |
|                                               | Item 4.             | Submission                  of Matters to a Vote of Security Holders                                                                                                | 13                  |
|                                               |                     |                                                                                                                                                                |                |
|                                               | Item 5.             | Other                  Information                                                                                                                                  | 13                  |
|                                               |                     |                                                                                                                                                                |                |
|                                               | Item 6.             | Exhibits                                                                                                                                                            | 14                  |
|                                               |                     |                                                                                                                                                                |                |
| **Signatures**                                     |                     |                                                                                                                                                                |

----

**Part      I. Financial Information**

**Item      1. Financial Statements. **

**SUGAR      CREEK FINANCIAL CORP. AND SUBSIDIARY**

**Consolidated      **
**Balance      Sheets **
***(Unaudited)***

|                                                                                                      |   | **December                31,** |       | **March                31,** |   |
|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|------------------------------|--------|
|                                                                                                      |   | **2007**                        |       | **2007**                     |   |
| **Assets**                                                                                                |   |                            |       |                         |   |   |   |
| Cash                and due from banks                                                                    |   | $                               | 528,214    |                         |   | 469,454 |   |
| Federal                funds sold                                                                         |   |                            | 2,157,041  |                         |   | 1,680,880 |   |
| FHLB                daily investment                                                                      |   |                            | 1,767,239  |                         |   | 4,808,373 |   |
| Cash                and cash equivalents                                                                  |   |                            | 4,452,494  |                         |   | 6,958,707 |   |
| Stock                in Federal Home Loan Bank of Chicago                                                 |   |                            | 1,660,145  |                         |   | 1,660,145 |   |
| Loans                receivable, net of allowance for loan losses of $124,000 and                $130,000 |   |                            | 81,158,205 |                         |   | 79,920,973 |   |
| Premises                and equipment, net                                                                |   |                            | 1,027,842  |                         |   | 866,898 |   |
| Real                estate owned                                                                          |   |                            | 385,847    |                         |   | - |   |
| Accrued                interest receivable:                                                               |   |                            |       |                         |   |   |   |
| Securities                                                                                                |   |                            | -          |                         |   | 10,000 |   |
| Loans                                                                                                     |   |                            | 322,527    |                         |   | 307,241 |   |
| Other                assets                                                                               |   |                            | 75,800     |                         |   | 617,405 |   |
| Total                assets                                                                               |   | $                               | 89,082,860 |                         |   | 90,341,369 |   |
|                                                                                                      |   |                            |       |                         |   |   |   |
| **Liabilities                and Stockholders' Equity**                                                   |   |                            |       |                         |   |   |   |
| Deposits                                                                                                  |   | $                               | 57,273,759 |                         |   | 64,170,227 |   |
| Accrued                interest on deposits                                                               |   |                            | 240,067    |                         |   | 244,647 |   |
| Advances                from FHLB of Chicago                                                              |   |                            | 21,500,000 |                         |   | 19,000,000 |   |
| Advances                from borrowers for taxes and insurance                                            |   |                            | 319,079    |                         |   | 275,521 |   |
| Other                liabilities                                                                          |   |                            | 213,050    |                         |   | 161,303 |   |
| Income                taxes                                                                               |   |                            | 418,264    |                         |   | 420,865 |   |
| Total                liabilities                                                                          |   |                            | 79,964,219 |                         |   | 84,272,563 |   |
| Commitments                and contingencies                                                              |   |                            |       |                         |   |   |   |
| Stockholders'                equity:                                                                      |   |                            |       |                         |   |   |   |
| Common                stock, 906,879 shares $.01 par value per share                                      |   |                            | 9,069      |                         |   | - |   |
| Additional                paid-in capital                                                                 |   |                            | 3,345,284  |                         |   | - |   |
| Common                stock acquired by employee stock ownership plan                                     |   |                            | (334,629   | )                            |   | - |   |
| Retained                earnings - substantially restricted                                               |   |                            | 6,098,917  |                         |   | 6,068,806 |   |
| Total                stockholders' equity                                                                 |   |                            | 9,118,641  |                         |   | 6,068,806 |   |
| Total                liabilities and stockholders' equity                                                 |   | $                               | 89,082,860 |                         |   | 90,341,369 |   |

----

**SUGAR      CREEK FINANCIAL CORP. AND SUBSIDIARY**

**Consolidated      Statements of Operations **
***(Unaudited)***

|                                                                                           |   | **Three                Months Ended****December                31,** |      | **Nine                Months Ended****December                31,** |   |
|------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|-----------|---------------------------------------------------------------------|--------|
|                                                                                           |   | **2007**                                                             |      | **2006**                                                            |   | **2007** |   | **2006** |   |
| Interest                income:                                                                |   |                                                                 |      |
| Loans                receivable                                                                |   | $                                                                    | 1,255,443 |                                                                |   | 1,121,058 |   | $ | 3,653,095 |   |   | 3,224,598 |   |
| Securities                                                                                     |   |                                                                 | -         |                                                                |   | 15,753 |   |   | 13,051 |   |   | 48,852 |   |
| Other                interest-earning assets                                                   |   |                                                                 | 32,931    |                                                                |   | 35,167 |   |   | 97,008 |   |   | 115,061 |   |
| Total                interest income                                                           |   |                                                                 | 1,288,374 |                                                                |   | 1,171,978 |   |   | 3,763,154 |   |   | 3,388,511 |   |
|                                                                                           |   |                                                                 |      |                                                                |   |   |   |   |   |   |   |   |   |
| Interest                expense:                                                               |   |                                                                 |      |                                                                |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                       |   |                                                                 | 511,615   |                                                                |   | 529,943 |   |   | 1,524,414 |   |   | 1,492,422 |   |
| Advances                from FHLB                                                              |   |                                                                 | 270,309   |                                                                |   | 183,917 |   |   | 736,005 |   |   | 478,646 |   |
| Total                interest expense                                                          |   |                                                                 | 781,924   |                                                                |   | 713,860 |   |   | 2,260,419 |   |   | 1,971,068 |   |
| Net                interest income                                                             |   |                                                                 | 506,450   |                                                                |   | 458,118 |   |   | 1,502,735 |   |   | 1,417,443 |   |
| Provision                (credit) for loan losses                                              |   |                                                                 | 80,436    |                                                                |   | - |   |   | 80,436 |   |   | (4,452 | ) |
| Net                  interest income after provision (credit) for loan                  losses |   |                                                                 | 426,014   |                                                                |   | 458,118 |   |   | 1,422,299 |   |   | 1,421,895 |   |
|                                                                                           |   |                                                                 |      |                                                                |   |   |   |   |   |   |   |   |   |
| Noninterest                income:                                                             |   |                                                                 |      |                                                                |   |   |   |   |   |   |   |   |   |
| Loan                service charges                                                            |   |                                                                 | 7,479     |                                                                |   | 6,530 |   |   | 18,855 |   |   | 14,572 |   |
| Service                charges on deposit accounts                                             |   |                                                                 | 34,961    |                                                                |   | 22,312 |   |   | 98,267 |   |   | 63,875 |   |
| Gain                on sale of investment in service bureau                                    |   |                                                                 | -         |                                                                |   | - |   |   | - |   |   | 18,491 |   |
| Other                                                                                          |   |                                                                 | 5,475     |                                                                |   | 2,770 |   |   | 12,783 |   |   | 8,146 |   |
| Total                noninterest income                                                        |   |                                                                 | 47,915    |                                                                |   | 31,612 |   |   | 129,905 |   |   | 105,084 |   |
|                                                                                           |   |                                                                 |      |                                                                |   |   |   |   |   |   |   |   |   |
| Noninterest                expense:                                                            |   |                                                                 |      |                                                                |   |   |   |   |   |   |   |   |   |
| Compensation                and benefits                                                       |   |                                                                 | 296,252   |                                                                |   | 280,130 |   |   | 889,075 |   |   | 809,249 |   |
| Occupancy                expense                                                               |   |                                                                 | 23,142    |                                                                |   | 20,826 |   |   | 68,000 |   |   | 63,897 |   |
| Equipment                and data processing                                                   |   |                                                                 | 82,232    |                                                                |   | 81,524 |   |   | 240,629 |   |   | 223,411 |   |
| Federal                deposit insurance premiums                                              |   |                                                                 | 1,671     |                                                                |   | 1,873 |   |   | 5,354 |   |   | 5,505 |   |
| Advertising                                                                                    |   |                                                                 | 12,056    |                                                                |   | 21,357 |   |   | 28,624 |   |   | 49,018 |   |
| Supplies                expense                                                                |   |                                                                 | 11,301    |                                                                |   | 7,348 |   |   | 31,090 |   |   | 29,933 |   |
| Other                                                                                          |   |                                                                 | 87,303    |                                                                |   | 68,982 |   |   | 229,276 |   |   | 180,174 |   |
| Total                noninterest expense                                                       |   |                                                                 | 513,957   |                                                                |   | 482,040 |   |   | 1,492,048 |   |   | 1,361,187 |   |
| Earnings                (loss) before income taxes                                             |   |                                                                 | (40,028   | )                                                                   |   | 7,690 |   |   | 60,156 |   |   | 165,792 |   |
|                                                                                           |   |                                                                 |      |                                                                |   |   |   |   |   |   |   |   |   |
| Income                tax expense (benefit)                                                    |   |                                                                 | (15,290   | )                                                                   |   | 2,147 |   |   | 24,382 |   |   | 64,990 |   |
|                                                                                           |   |                                                                 |           |                                                                |   |  |   |   |  |   |   |  |   |
| Net                earnings (loss)                                                             |   | $                                                                    | (24,738   | )                                                                   |   | 5,543 |   | $ | 35,774 |   |   | 100,802 |   |
|                                                                                           |   |                                                                 |      |                                                                |   |   |   |   |   |   |   |   |   |
| Earnings                (loss) per share                                                       |   | $                                                                    | (0.03     | )                                                                   |   | N/A |   | $ | 0.04 |   |   | N/A |   |
| Dividends                per share                                                             |   | $                                                                    | 0.00      |                                                                |   | N/A |   | $ | 0.00 |   |   | N/A |   |

----

**SUGAR      CREEK FINANCIAL CORP. AND SUBSIDIARY**

**Consolidated      **
**Statements      of Cash Flows **
***(Unaudited)***

|                                                                                                                         |   | **Nine                Months Ended** |        |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|-------------|
|                                                                                                                         |   | **December                31,**      |        |
|                                                                                                                         |   | **2007**                             |        | **2006** |   |
|                                                                                                                         |   |                                 |        |   |   |
| Cash                flows from operating activities:                                                                         |   |                                 |        |   |   |   |   |
| Net                earnings                                                                                                  |   | $                                    | 35,774      |   |   | 100,802 |   |
| Adjustments                to reconcile net earnings to net cash provided by (used for) operating                activities: |   |                                 |             |   |   |   |   |
| Depreciation                                                                                                                 |   |                                 | 59,321      |   |   | 67,452 |   |
| ESOP                expense                                                                                                  |   |                                 | 23,636      |   |   | - |   |
| Amortization                of deferred loan fees, net                                                                       |   |                                 | (18,558     | ) |   | (10,722 | ) |
| Provision                (credit) for loan losses                                                                            |   |                                 | 80,436      |   |   | (4,452 | ) |
| Decrease                (increase) in accrued interest receivable                                                            |   |                                 | (5,286      | ) |   | (13,080 | ) |
| Decrease                (increase) in other assets                                                                           |   |                                 | 541,605     |   |   | (163,608 | ) |
| Increase                (decrease) in:                                                                                       |   |                                 |             |   |   |   |   |
| Accrued                interest on deposits                                                                                  |   |                                 | (4,580      | ) |   | 52,436 |   |
| Other                liabilities                                                                                             |   |                                 | 51,747      |   |   | (47,352 | ) |
| Income                taxes                                                                                                  |   |                                 | (8,264      | ) |   | - |   |
| Net                cash provided by (used for) operating activities                                                          |   |                                 | 755,831     |   |   | (18,524 | ) |
| Cash                flows from investing activities:                                                                         |   |                                 |             |   |   |   |   |
| Net                change in loans receivable                                                                                |   |                                 | (1,684,957  | ) |   | (9,321,858 | ) |
| Redemption                of FHLB stock                                                                                      |   |                                 | -           |   |   | 1,171,310 |   |
| Purchase                of premises and equipment                                                                            |   |                                 | (220,265    | ) |   | (12,284 | ) |
| Net                cash provided by (used for) investing activities                                                          |   |                                 | (1,905,222  | ) |   | (8,162,832 | ) |
| Cash                flows from financing activities:                                                                         |   |                                 |             |   |   |   |   |
| Net                increase (decrease) in deposits                                                                           |   |                                 | (6,896,468  | ) |   | 583,295 |   |
| Increase                  (decrease) in advances from borrowers for taxes and                  insurance                     |   |                                 | 43,558      |   |   | (60,229 | ) |
| Proceeds                from advances from FHLB                                                                              |   |                                 | 21,500,000  |   |   | 6,000,000 |   |
| Repayment                of advances from FHLB                                                                               |   |                                 | (19,000,000 | ) |   | - |   |
| Proceeds                from sale of common stock, net                                                                       |   |                                 | 2,996,088   |   |   | - |   |
| Net                cash provided by (used for) financing activities                                                          |   |                                 | (1,356,822  | ) |   | 6,523,066 |   |
| Net                increase (decrease) in cash and cash equivalents                                                          |   |                                 | (2,506,213  | ) |   | (1,658,290 | ) |
| Cash                and cash equivalents at beginning of period                                                              |   |                                 | 6,958,707   |   |   | 5,110,683 |   |
| Cash                and cash equivalents at end of period                                                                    |   | $                                    | 4,452,494   |   |   | 3,452,393 |   |
| Supplemental                disclosures-cash paid during the period for:                                                     |   |                                 |             |   |   |   |   |
| Interest                on deposits and advances from FHLB                                                                   |   | $                                    | 2,250,455   |   |   | 1,899,209 |   |
| Federal                and state income taxes                                                                                |   | $                                    | 24,382      |   |   | 37,999 |   |
| Real                estate and repossessions acquired in settlement of loans                                                 |   | $                                    | 385,847     |   |   | - |   |

----

**SUGAR      CREEK FINANCIAL CORP. AND SUBSIDIARY**

**Notes      to the Unaudited Consolidated Financial Statements**

**December      31, 2007**

**(1)**
**Basis      of Presentation**

**(2)**
**Mutual      Holding Company Reorganization and Minority Stock Issuance**

** **
**(3)      **
**Earnings      Per Share**

----

**Item      2. Management’s Discussion and Analysis or Plan of      Operation**

**Forward-Looking      Statements**

**General**

**Critical      Accounting Policy**

**Allowance      for Loan Losses. **

----

**Balance      Sheet Analysis**

**Overview.      **

**Loans.**

**Nonperforming      Assets**

|                                                                                                      |   | **December                31,** |    | **March                31,** |   |
|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------|---------|------------------------------|--------|
| (Dollars                in thousands)                                                                     |   | **2007**                        |    | **2007**                     |   |
| Nonaccrual                loans:                                                                     |   |                            |    |                         |   |   |   |
| Residential                real estate                                                                    |   | $                               | 14      |                         | $      | 698 |   |
| Commercial                real estate                                                                     |   |                            | — |                         |   | — |   |
| Commercial                                                                                                |   |                            | — |                         |   | — |   |
| Consumer                                                                                                  |   |                            | 29      |                         |   | 30 |   |
| Total                                                                                                     |   |                            | 43      |                         |   | 728 |   |
| Real                estate owned                                                                          |   |                            | 386     |                         |   | - |   |
| Total                nonperforming assets                                                                 |   |                            | 429     |                         |   | 728 |   |
|                                                                                                      |   |                            |    |                         |   |   |   |
| Total                nonperforming loans to total loans                                                   |   |                            | 0.05    | %                            |   | 0.91 | % |
| Total                nonperforming loans to total assets                                                  |   |                            | 0.05    | %                            |   | 0.83 | % |
| Total                nonperforming assets and troubled debt restructurings to total                assets |   |                            | 0.48    | %                            |   | 0.83 | % |
|                                                                                                      |   |                            |    |                         |   |   |   |

**Investments.**

**Deposits**

----

**Borrowings**
** **

**Results      of Operations for the Three Months Ended December 31, 2007 and      2006.**

**General.**
** **

**Total      Interest Income.**
** **

**Total      Interest Expense**
***.***
*** ***

**Net      Interest Income**
***.***

**Provision      for Loan Losses.**

**Noninterest      Income.**

**Noninterest      Expense**
***.***

----

**Income      Taxes.**

**Results      of Operations for the Nine Months Ended December 31, 2007 and      2006.**

**General. **

|                                                            |   | **Nine                Months Ended December 31,** |   |
|-----------------------------------------------------------------|--------|---------------------------------------------------|--------|
|                                                            |   | **2007**                                          |   | **2006** |   |
| **(Dollars                in thousands)**                       |   | **Average****Balance**                            |   | **Interest****and****Dividends** |   | **Yield/****Cost** |   | **Average****Balance** |   | **Interest****and****Dividends** |   | **Yield/****Cost** |   |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Assets:**                                                     |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning                assets:                         |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                           |   | $                                                 | 81,100 |   | $ | 3,653 |   |   | 6.01 | % | $ | 73,326 |   | $ | 3,225 |   |   | 5.86 | % |
| Stock                in FHLB of Chicago                         |   |                                              | 1,660  |   |   | 13 |   |   | 1.04 |   |   | 2,225 |   |   | 49 |   |   | 2.93 |   |
| Other                interest-earning assets                    |   |                                              | 2,598  |   |   | 97 |   |   | 4.98 |   |   | 2,408 |   |   | 115 |   |   | 6.37 |   |
| Total                interest-earning assets                    |   |                                              | 85,358 |   |   | 3,763 |   |   | 5.88 |   |   | 77,959 |   |   | 3,389 |   |   | 5.80 |   |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning                assets                       |   |                                              | 2,523  |   |   |   |   |   |   |   |   | 2,595 |   |   |   |   |   |   |   |
| Total                assets                                     |   |                                              | 87,881 |   |   |   |   |   |   |   |   | 80,554 |   |   |   |   |   |   |   |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and Stockholders’ Equity**   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                interest-bearing deposits                  |   |                                              | 54,461 |   |   | 1,524 |   |   | 3.73 |   |   | 57,946 |   |   | 1,492 |   |   | 3.43 |   |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB                advances                                    |   |                                              | 20,778 |   |   | 736 |   |   | 4.72 |   |   | 13,300 |   |   | 479 |   |   | 4.80 |   |
| Other                borrowings                                 |   |                                              | -      |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Total                interest-bearing liabilities               |   |                                              | 75,239 |   |   | 2,260 |   |   | 4.01 |   |   | 71,246 |   |   | 1,971 |   |   | 3.69 |   |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing                deposit accounts             |   |                                              | 2,444  |   |   |   |   |   |   |   |   | 2,134 |   |   |   |   |   |   |   |
| Other                noninterest-bearing liabilities            |   |                                              | 1,120  |   |   |   |   |   |   |   |   | 1,174 |   |   |   |   |   |   |   |
| Total                liabilities                                |   |                                              | 78,803 |   |   |   |   |   |   |   |   | 74,554 |   |   |   |   |   |   |   |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’                equity                       |   |                                              | 9,078  |   |   |   |   |   |   |   |   | 6,000 |   |   |   |   |   |   |   |
| Total                liabilities and stockholders’ equity |   | $                                                 | 87,881 |   |   |   |   |   |   |   | $ | 80,554 |   |   |   |   |   |   |   |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                              |   |                                              |   |   | $ | 1,503 |   |   |   |   |   |   |   | $ | 1,418 |   |   |   |   |

**Total      Interest Income. **

**Total      Interest Expense**
***. ***

----

**Net      Interest Income**
***.***

**Provision      for Loan Losses.**

**Analysis      of Loan Loss Experience **

|                                                                                                      |   | **Nine                Months Ended****December                31,** |   |
|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
| (Dollars                in thousands)                                                                     |   | **2007**                                                            |   | **2006** |   |
| Allowance                at beginning of period                                                           |   | $                                                                   | 130    |   | $ | 130 |   |
| Provision                (recovery of) for loan losses                                                    |   |                                                                | 80     |   |   | (4 | ) |
| Charge-offs                                                                                               |   |                                                                | (92    | ) |   | (11 | ) |
| Recoveries                                                                                                |   |                                                                | 6      |   |   | 15 |   |
| Net                recovery (charge-offs)                                                                 |   |                                                                | (86    | ) |   | 4 |   |
| Allowance                at end of period                                                                 |   | $                                                                   | 124    |   | $ | 130 |   |
|                                                                                                      |   |                                                                |   |   |   |   |   |
| Allowance                to nonperforming loans                                                           |   |                                                                | 288.37 | % |   | 18.25 | % |
| Allowance                to total loans outstanding at the end of the period                              |   |                                                                | 0.15   |   |   | 0.17 |   |
| Net                charge-offs (recoveries) to average loans outstanding during                the period |   |                                                                | 0.11   |   |   | (0.01 | ) |
|                                                                                                      |   |                                                                |   |   |   |   |   |

**Noninterest      Income**
***.***

**Noninterest      Expense**
***.***

----

**Income      Taxes**
***.***

**Liquidity      and Capital Management**

**Liquidity      Management**
***.***

**Capital      Management. **
*** ***

----

|                                                  |   |                                  |   |     |   | Minimum                    |   | Required                   |   |
|-------------------------------------------------------|--------|---------------------------------------|--------|----------|--------|----------------------------|--------|----------------------------|--------|
|                                                  |   |                                  |   |     |   | for                Capital |   | to                be "Well |   |
|                                                  |   | Actual                                |   | Adequacy |   | Capitalized"               |   |
|                                                  |   | Amount                                |   | Ratio    |   | Amount                     |   | Ratio                      |   | Amount |   | Ratio |   |
|                                                  |   | (Dollars                in Thousands) |   |
|                                                  |   |                                  |   |     |   |                       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Stockholder's                equity of the Bank       |   | $                                     | 8,712  |     |   | 9.8                        | %      | $                          | 1,336  |   |   | 1.5 | % |   |   |   |   |   |   |
| General                valuation allowance            |   |                                  | 124    |     |   |                       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Total                capital to risk-weighted assets  |   | $                                     | 8,836  |     |   | 18.7                       | %      | $                          | 3,784  |   |   | 8.0 | % | $ | 4,730 |   |   | 10.0 | % |
|                                                  |   |                                  |   |     |   |                       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 capital to risk-weighted assets |   | $                                     | 8,712  |     |   | 18.7                       | %      | $                          | 1,892  |   |   | 4.0 | % | $ | 2,838 |   |   | 6.0 | % |
|                                                  |   |                                  |   |     |   |                       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 capital to total assets         |   | $                                     | 8,712  |     |   | 9.8                        | %      | $                          | 3,563  |   |   | 4.0 | % | $ | 4,454 |   |   | 5.0 | % |

**Equity      Incentive Plan**

**Off-Balance      Sheet Arrangements**

----

**Item      3. Controls and Procedures**

----

**PART      II. OTHER INFORMATION**

**Item      1.**
**      Legal Proceedings**

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

**Item      3.**
**      Defaults upon Senior Securities**

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

|   | (a) | The                election of directors of the                Company: |
|--------|-----|-------------------------------------------------------------------------|

| Director                            |   | For    |    | WITHHELD |   |
|-------------------------------------|--------|--------|---------|----------|--------|
|                                |   |   |    |     |   |   |   |
| Robert                J. Stroh, Jr. |   |   | 810,176 |     |   | 15,650 |   |
|                                |   |   |    |     |   |   |   |
| Francis                J. Eversman  |   |   | 810,176 |     |   | 15,650 |   |

|   | (b) | The                ratification of Sugar Creek Financial Corp. 2007 Equity Incentive                Plan: |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

| Votes                                |   | For    |    | Against |   | Abstain |   |
|--------------------------------------|--------|--------|---------|---------|--------|---------|--------|
|                                 |   |   |    |    |   |    |   |   |   |   |
| Number,                including MHC |   |   | 741,626 |    |   | 14,525  |   |   | 3,650 |   |
|                                 |   |   |    |    |   |    |   |   |   |   |
| Number,                excluding MHC |   |   | 242,842 |    |   | 14,525  |   |   | 3,650 |   |

|   | (c) | The                ratification of the appointment of Michael Trokey & Company, P.C. as                independent auditors of the Company for the fiscal year ended March                31,                2008: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Votes  |   | For    |    | Against |   | Abstain |   |
|--------|--------|--------|---------|---------|--------|---------|--------|
|   |   |   |    |    |   |    |   |   |   |   |
| Number |   |   | 823,501 |    |   | 2,150   |   |   | 175 |   |

**Item      5.**
**      Other Information**

----

**Item      6.**
**      Exhibits**

|   | 3.1  | Charter                of Sugar Creek Financial Corp. (2)                                                                                  |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------|
|   | 3.2  | Bylaws                of Sugar Creek Financial Corp. (2)                                                                                   |
|   | 4.0  | Stock                certificate of Sugar Creek Financial Corp. (1)                                                                        |
|   | 31.1 | Rule                13a-14(a)/15d-14(a) Certification of Chief Executive Officer and                Chief                Financial Officer |
|   | 32.0 | Section                1350 Certification                                                                                                  |

----

|   | (1)    | Incorporated                by reference into this document from the Exhibits filed with the                Securities and Exchange Commission on the Registration Statement                on Form                SB-2, and any amendments thereto, Registration No.                333-139332. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                             |
|   | (2)    | Incorporated                by reference into this document from the exhibits filed with the                Securities and Exchange Commission on the Form 10-KSB, File No.                000-52532.                                                                                            |

----

**SIGNATURES**

|                                    | SUGAR                CREEK FINANCIAL CORP. |
|-----------------------------------------|--------------------------------------------|
|                                    |                                       |   |
| Dated:                February 12, 2008 | By:                                        | /s/                Robert J. Stroh, Jr. |
|                                    |                                       | Robert                J. Stroh, Jr. |
|                                    |                                       | Chairman,                Chief Executive Officer and |
|                                    |                                       | Chief                Financial Officer |
|                                    |                                       | (principal                executive, financial and accounting officer) |
|                                    |                                       |   |
| Dated:                February 12, 2008 | By:                                        | /s/                Francis J. Eversman |
|                                    |                                       | Francis                J. Eversman |
|                                    |                                       | President                and Chief Operating Officer |

----