*Table        of Contents*

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**____________**

**FORM      10-Q**

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

| o | TRANSITION                REPORT PURSUANT                TO                SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------|

**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**

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*Table        of Contents*

**SUGAR      CREEK FINANCIAL CORP.**

**FORM      10-Q**

**Index**

|                                             |                                                                                                                                     | ***Page                No.*** |
|--------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|
|                                             |                                                                                                                                     |                          |
| **PART                I. FINANCIAL INFORMATION** |                                                                                                                                     |
|                                             |                                                                                                                                     |                          |
| Item                1.                           | Financial              Statements                                                                                                        | 1                             |
|                                             |                                                                                                                                     |                          |
|                                                  | Consolidated              Balance Sheets at September 30, 2008 and March 31,              2008 (Unaudited)                               | 1                             |
|                                             |                                                                                                                                     |                          |
|                                                  | Consolidated              Statements of Earnings for the three and six              months ended September 30, 2008 and 2007 (Unaudited) | 2                             |
|                                             |                                                                                                                                     |                          |
|                                                  | Consolidated              Statements of Cash Flows for the six months ended              September 30, 2008 and 2007 (Unaudited)         | 3                             |
|                                             |                                                                                                                                     |                          |
|                                                  | Notes              to Unaudited Consolidated Financial              Statements                                                           | 4                             |
|                                             |                                                                                                                                     |                          |
| Item                2.                           | Management’s              Discussion and Analysis of Financial Condition              and Results of Operations                    | 5                             |
|                                             |                                                                                                                                     |                          |
| Item                3.                           | Quantitative              and Qualitative Disclosure About Market              Risk                                                      | 13                            |
|                                             |                                                                                                                                     |                          |
| Item                4.                           | Controls              and Procedures                                                                                                     | 13                            |
|                                             |                                                                                                                                     |                          |
| **PART                II. OTHER INFORMATION**    |                                                                                                                                     |
|                                             |                                                                                                                                     |                          |
| Item                1.                           | Legal              Proceedings                                                                                                           | 14                            |
|                                             |                                                                                                                                     |                          |
| Item                1A.                          | Risk              Factors                                                                                                                | 14                            |
|                                             |                                                                                                                                     |                          |
| Item                2.                           | Unregistered              Sales of Equity Securities and Use of              Proceeds                                                    | 14                            |
|                                             |                                                                                                                                     |                          |
| Item                3.                           | Defaults              upon Senior Securities                                                                                             | 14                            |
|                                             |                                                                                                                                     |                          |
| Item                4.                           | Submission              of Matters to a Vote of Security              Holders                                                            | 14                            |
|                                             |                                                                                                                                     |                          |
| Item                5.                           | Other              Information                                                                                                           | 14                            |
|                                             |                                                                                                                                     |                          |
| Item                6.                           | Exhibits                                                                                                                                 | 15                            |
|                                             |                                                                                                                                     |                          |
| **Signatures**                                   | 16                                                                                                                                       |

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*Table          of Contents*

**Part      I. Financial Information**

**Item      1. Financial Statements. **

**SUGAR      CREEK FINANCIAL CORP. AND SUBSIDIARY**

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

|                                                                    |   | **September                  30,** |       | **March                  31,** |   |
|-------------------------------------------------------------------------|--------|------------------------------------|------------|--------------------------------|--------|
| **Assets**                                                              |   | **2008**                           |       | **2008**                       |   |
|                                                                    |   |                               |       |                           |   |
| Cash                  and due from banks                                |   | $                                  | 746,217    |                           |   | 607,687 |   |
| Federal                  funds sold                                     |   |                               | 2,021,065  |                           |   | 929,733 |   |
| FHLB                  daily investment                                  |   |                               | 1,669,833  |                           |   | 1,629,805 |   |
| Cash                  and cash equivalents                              |   |                               | 4,437,115  |                           |   | 3,167,225 |   |
| Stock                  in Federal Home Loan Bank of Chicago             |   |                               | 1,660,145  |                           |   | 1,660,145 |   |
| Loans                  receivable, net of allowance for loan losses     |   |                               |       |                           |   |   |   |
| of                  $130,287 and $124,287                               |   |                               | 84,519,442 |                           |   | 79,803,742 |   |
| Premises                  and equipment, net                            |   |                               | 1,182,192  |                           |   | 1,036,555 |   |
| Foreclosed                  real estate                                 |   |                               | 385,847    |                           |   | 385,847 |   |
| Accrued                  interest receivable:                           |   |                               |       |                           |   |   |   |
| Securities                                                              |   |                               | —    |                           |   | — |   |
| Loans                                                                   |   |                               | 356,318    |                           |   | 329,079 |   |
| Other                  assets                                           |   |                               | 153,653    |                           |   | 223,594 |   |
| Total                  assets                                           |   | $                                  | 92,694,712 |                           |   | 86,606,187 |   |
|                                                                    |   |                               |       |                           |   |   |   |
| **Liabilities                  and Stockholders' Equity**               |   |                               |       |                           |   |   |   |
| Deposits                                                                |   | $                                  | 59,199,772 |                           |   | 59,181,449 |   |
| Accrued                  interest on deposits                           |   |                               | 188,016    |                           |   | 233,399 |   |
| Advances                  from FHLB of Chicago                          |   |                               | 23,000,000 |                           |   | 17,000,000 |   |
| Advances                  from borrowers for taxes and insurance        |   |                               | 234,000    |                           |   | 342,017 |   |
| Other                  liabilities                                      |   |                               | 235,477    |                           |   | 247,438 |   |
| Income                  taxes                                           |   |                               | 552,775    |                           |   | 436,865 |   |
| Total                  liabilities                                      |   |                               | 83,410,040 |                           |   | 77,441,168 |   |
| Commitments                  and contingencies                          |   |                               |       |                           |   |   |   |
| Stockholders'                  equity:                                  |   |                               |       |                           |   |   |   |
| Preferred                  stock, $.01 par value, 1,000,000 shares      |   |                               |       |                           |   |   |   |
| authorized;                  none issued or outstanding                 |   |                               | —    |                           |   | — |   |
| Common                  stock, $.01 par value, 14,000,000 shares        |   |                               |       |                           |   |   |   |
| authorized;                  906,879 shares issued                      |   |                               | 9,069      |                           |   | 9,069 |   |
| Additional                  paid-in capital                             |   |                               | 3,344,782  |                           |   | 3,341,901 |   |
| Treasury                  stock, at cost, 8,500 shares                  |   |                               | (69,855    | )                              |   | — |   |
| Common                  stock acquired by employee stock ownership plan |   |                               | (314,016   | )                              |   | (325,866 | ) |
| Retained                  earnings - substantially restricted           |   |                               | 6,314,692  |                           |   | 6,139,915 |   |
| Total                  stockholders' equity                             |   |                               | 9,284,672  |                           |   | 9,165,019 |   |
| Total                  liabilities and stockholders' equity             |   | $                                  | 92,694,712 |                           |   | 86,606,187 |   |
|                                                                    |   |                               |       |                           |   |   |   |
|                                                                    |   |                               |       |                           |   |   |   |

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*Table          of Contents*

**SUGAR      CREEK FINANCIAL CORP. AND SUBSIDIARY**

**Consolidated      Statements of Earnings**

|                                                  |   | **Three                  Months Ended****September                  30,** |      | **Six                  Months Ended****September                  30,** |   |
|-------------------------------------------------------|--------|---------------------------------------------------------------------------|-----------|-------------------------------------------------------------------------|--------|
|                                                  |   | **2008**                                                                  |      | **2007**                                                                |   | **2008** |   | **2007** |   |
| Interest                  income:                     |   | *(Unaudited)*                                                             |      | *(Unaudited)*                                                           |   |
| Loans                  receivable                     |   | $                                                                         | 1,268,723 |                                                                    |   | 1,205,816 |   | $ | 2,486,600 |   |   | 2,397,652 |   |
| Securities                                            |   |                                                                      | —   |                                                                    |   | 4,551 |   |   | — |   |   | 13,051 |   |
| Other                  interest-earning assets        |   |                                                                      | 12,266    |                                                                    |   | 27,216 |   |   | 21,457 |   |   | 64,077 |   |
| Total                  interest income                |   |                                                                      | 1,280,989 |                                                                    |   | 1,237,583 |   |   | 2,508,057 |   |   | 2,474,780 |   |
|                                                  |   |                                                                      |      |                                                                    |   |   |   |   |   |   |   |   |   |
| Interest                  expense:                    |   |                                                                      |      |                                                                    |   |   |   |   |   |   |   |   |   |
| Deposits                                              |   |                                                                      | 444,056   |                                                                    |   | 496,674 |   |   | 934,758 |   |   | 1,012,799 |   |
| Advances                  from FHLB                   |   |                                                                      | 231,118   |                                                                    |   | 248,651 |   |   | 437,611 |   |   | 465,695 |   |
| Total                  interest expense               |   |                                                                      | 675,174   |                                                                    |   | 745,325 |   |   | 1,372,369 |   |   | 1,478,494 |   |
| Net                  interest income                  |   |                                                                      | 605,815   |                                                                    |   | 492,258 |   |   | 1,135,688 |   |   | 996,286 |   |
| Provision                  for loan losses            |   |                                                                      | 11,830    |                                                                    |   | — |   |   | 11,830 |   |   | — |   |
| Net                  interest income after provision  |   |                                                                      |      |                                                                    |   |   |   |   |   |   |   |   |   |
| for                  loan losses                      |   |                                                                      | 593,985   |                                                                    |   | 492,258 |   |   | 1,123,858 |   |   | 996,286 |   |
|                                                  |   |                                                                      |      |                                                                    |   |   |   |   |   |   |   |   |   |
| Noninterest                  income:                  |   |                                                                      |      |                                                                    |   |   |   |   |   |   |   |   |   |
| Loan                  service charges                 |   |                                                                      | 5,386     |                                                                    |   | 7,243 |   |   | 9,942 |   |   | 11,376 |   |
| Service                  charges on deposit accounts  |   |                                                                      | 44,488    |                                                                    |   | 33,411 |   |   | 79,604 |   |   | 63,306 |   |
| Other                                                 |   |                                                                      | 5,224     |                                                                    |   | 3,953 |   |   | 10,122 |   |   | 7,309 |   |
| Total                  noninterest income             |   |                                                                      | 55,098    |                                                                    |   | 44,607 |   |   | 99,668 |   |   | 81,991 |   |
|                                                  |   |                                                                      |      |                                                                    |   |   |   |   |   |   |   |   |   |
| Noninterest                  expense:                 |   |                                                                      |      |                                                                    |   |   |   |   |   |   |   |   |   |
| Compensation                  and benefits            |   |                                                                      | 236,038   |                                                                    |   | 274,834 |   |   | 499,605 |   |   | 592,824 |   |
| Occupancy                  expense                    |   |                                                                      | 28,290    |                                                                    |   | 25,467 |   |   | 50,493 |   |   | 44,857 |   |
| Equipment                  and data processing        |   |                                                                      | 90,190    |                                                                    |   | 82,096 |   |   | 185,241 |   |   | 158,397 |   |
| FDIC                  premium expense                 |   |                                                                      | 2,621     |                                                                    |   | 1,851 |   |   | 4,249 |   |   | 3,684 |   |
| Advertising                                           |   |                                                                      | 7,407     |                                                                    |   | 9,498 |   |   | 16,404 |   |   | 16,569 |   |
| Supplies                  expense                     |   |                                                                      | 3,773     |                                                                    |   | 5,958 |   |   | 17,212 |   |   | 19,789 |   |
| Other                                                 |   |                                                                      | 90,763    |                                                                    |   | 70,019 |   |   | 167,704 |   |   | 141,973 |   |
| Total                  noninterest expense            |   |                                                                      | 459,082   |                                                                    |   | 469,723 |   |   | 940,908 |   |   | 978,093 |   |
| Earnings                  before income taxes         |   |                                                                      | 190,001   |                                                                    |   | 67,142 |   |   | 282,618 |   |   | 100,184 |   |
|                                                  |   |                                                                      |      |                                                                    |   |   |   |   |   |   |   |   |   |
| Income                  taxes                         |   |                                                                      | 75,005    |                                                                    |   | 26,479 |   |   | 107,841 |   |   | 39,672 |   |
|                                                  |   |                                                                      |      |                                                                    |   |   |   |   |   |   |   |   |   |
| Net                  earnings                         |   | $                                                                         | 114,996   |                                                                    |   | 40,663 |   | $ | 174,777 |   |   | 60,512 |   |
|                                                  |   |                                                                      |      |                                                                    |   |   |   |   |   |   |   |   |   |
| Basic                  and diluted earnings per share |   | $                                                                         | 0.13      |                                                                    |   | 0.05 |   | $ | 0.20 |   |   | 0.07 |   |
| Dividends                  per share                  |   | $                                                                         | 0.00      |                                                                    |   | 0.00 |   | $ | 0.00 |   |   | 0.00 |   |
|                                                  |   |                                                                      |      |                                                                    |   |   |   |   |   |   |   |   |   |
|                                                  |   |                                                                      |      |                                                                    |   |   |   |   |   |   |   |   |   |

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*Table          of Contents*

**SUGAR      CREEK FINANCIAL CORP. AND SUBSIDIARY**

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

|                                                                           |   | **Six                  Months Ended** |       |
|--------------------------------------------------------------------------------|--------|---------------------------------------|------------|
|                                                                           |   | **September                  30,**    |       |
|                                                                           |   | **2008**                              |       | **2007** |   |
|                                                                           |   |                                  |       |   |   |
| Cash                  flows from operating activities:                         |   |                                  |       |   |   |
| Net                  earnings                                                  |   | $                                     | 174,777    |   |   | 60,512 |   |
| Adjustments                  to reconcile net earnings to net                  |   |                                  |       |   |   |   |   |
| cash                  provided by (used for) operating activities:             |   |                                  |       |   |   |   |   |
| Depreciation                                                                   |   |                                  | 26,498     |   |   | 38,063 |   |
| ESOP                  expense                                                  |   |                                  | 10,051     |   |   | 16,095 |   |
| Incentive                  plan expense                                        |   |                                  | 4,680      |   |   | — |   |
| Amortization                  of deferred loan fees, net                       |   |                                  | (9,146     | ) |   | (10,849 | ) |
| Provision                  for loan losses                                     |   |                                  | 11,830     |   |   | — |   |
| Increase                  in accrued interest receivable                       |   |                                  | (27,239    | ) |   | (7,640 | ) |
| Decrease                  in other assets                                      |   |                                  | 69,941     |   |   | 527,142 |   |
| Increase                  (decrease) in:                                       |   |                                  |       |   |   |   |   |
| Accrued                  interest on deposits                                  |   |                                  | (45,383    | ) |   | (24,097 | ) |
| Other                  liabilities                                             |   |                                  | (11,961    | ) |   | 34,265 |   |
| Income                  taxes                                                  |   |                                  | 115,910    |   |   | 21,900 |   |
| Net                  cash provided by (used for) operating activities          |   |                                  | 319,958    |   |   | 655,391 |   |
| Cash                  flows from investing activities:                         |   |                                  |       |   |   |   |   |
| Net                  change in loans receivable                                |   |                                  | (4,718,384 | ) |   | (1,221,699 | ) |
| Purchase                  of premises and equipment                            |   |                                  | (172,135   | ) |   | (142,949 | ) |
| Net                  cash provided by (used for) investing activities          |   |                                  | (4,890,519 | ) |   | (1,364,648 | ) |
| Cash                  flows from financing activities:                         |   |                                  |       |   |   |   |   |
| Net                  increase (decrease) in deposits                           |   |                                  | 18,323     |   |   | (8,350,446 | ) |
| Increase                  (decrease) in advances from                          |   |                                  |       |   |   |   |   |
| borrowers                  for taxes and insurance                             |   |                                  | (108,017   | ) |   | (152,963 | ) |
| Proceeds                  from advances from FHLB                              |   |                                  | 13,500,000 |   |   | 19,000,000 |   |
| Repayment                  of advances from FHLB                               |   |                                  | (7,500,000 | ) |   | (16,000,000 | ) |
| Proceeds                  from sale of common stock, net                       |   |                                  | —    |   |   | 2,996,088 |   |
| Repurchase                  of common stock                                    |   |                                  | (69,855    | ) |   | — |   |
| Net                  cash provided by (used for) financing activities          |   |                                  | 5,840,451  |   |   | (2,507,321 | ) |
| Net                  increase (decrease) in cash and cash equivalents          |   |                                  | 1,269,890  |   |   | (3,216,578 | ) |
| Cash                  and cash equivalents at beginning of period              |   |                                  | 3,167,225  |   |   | 6,958,707 |   |
| Cash                  and cash equivalents at end of period                    |   | $                                     | 4,437,115  |   |   | 3,742,129 |   |
| Supplemental                  disclosures-cash paid during the period for:     |   |                                  |       |   |   |   |   |
| Interest                  on deposits and advances from FHLB                   |   | $                                     | 1,410,688  |   |   | 1,478,495 |   |
| Federal                  and state income taxes                                |   |                                  | 107,841    |   |   | 39,672 |   |
| Real                  estate and repossessions acquired in settlement of loans |   | $                                     | —    |   |   | — |   |
|                                                                           |   |                                  |       |   |   |   |   |
|                                                                                |   |                                  |       |   |   |   |   |

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*Table          of Contents*

**SUGAR      CREEK FINANCIAL CORP. AND SUBSIDIARY**

**Notes      to the Unaudited Consolidated Financial      Statements**

**September      30, 2008**

| **(1)** | **Basis                of Presentation** |
|---------|------------------------------------------|

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

| **(3)** | **Earnings                Per Share** |
|---------|---------------------------------------|

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*Table          of Contents*

|                                                   |   | **Three                  Months Ended** |    | **Six                  Months Ended** |   |
|--------------------------------------------------------|--------|-----------------------------------------|---------|---------------------------------------|--------|
|                                                   |   | **September                  30,**      |    | **September                  30,**    |   |
|                                                   |   | **2008**                                |    | **2007**                              |   | **2008** |   | **2007** |   |
|                                                   |   |                                    |    |                                  |   |   |   |   |   |
| Net                  earnings                          |   | $                                       | 114,996 |                                  |   | 40,663 |   | $ | 174,777 |   |   | 60,512 |   |
|                                                   |   |                                    |    |                                  |   |   |   |   |   |   |   |   |   |
| Weighted-average                  shares - Basic EPS   |   |                                    | 873,546 |                                  |   | 872,515 |   |   | 874,064 |   |   | 872,120 |   |
| Effect                  of dilutive stock awards       |   |                                    | — |                                  |   | — |   |   | — |   |   | — |   |
| Weighted-average                  shares - Diluted EPS |   |                                    | 873,546 |                                  |   | 872,515 |   |   | 874,064 |   |   | 872,120 |   |
|                                                   |   |                                    |    |                                  |   |   |   |   |   |   |   |   |   |
| Basic                  earnings per common share       |   | $                                       | 0.13    |                                  |   | 0.05 |   | $ | 0.20 |   |   | 0.07 |   |
| Diluted                  earnings per common share     |   | $                                       | 0.13    |                                  |   | 0.05 |   | $ | 0.20 |   |   | 0.07 |   |
| Anti-dilutive                  shares                  |   |                                    | 6,093   |                                  |   | — |   |   | 2,518 |   |   | — |   |

**Item      2. Management’s Discussion and Analysis of Financial Condition      and Results of Operation**

**Forward-Looking      Statements**

**General**

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*Table          of Contents*

**Critical      Accounting Policy**

**Allowance      for Loan Losses. **

**Balance      Sheet Analysis**

**Overview.      **

**Loans      Receivable, Net.**

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*Table          of Contents*

| **Nonperforming                Assets**                                |   |
|------------------------------------------------------------------------|--------|
|                                                                   |   | **September                30,** |   | **March                31,** |   |
| (Dollars                in thousands)                                  |   | **2008** |   | **2008** |   |
| Nonaccrual                loans:                                       |   |   |   |   |   |
| Residential                real estate                                 |   | $ | 285 |   | $ | — |   |
| Commercial                real estate                                  |   |   | — |   |   | — |   |
| Commercial                                                             |   |   | — |   |   | — |   |
| Consumer                                                               |   |   | 109 |   |   | 64 |   |
| Total                                                                  |   |   | 394 |   |   | 64 |   |
| Foreclosed                real estate and other repossessed assets (1) |   |   | 392 |   |   | 386 |   |
| Total              nonperforming assets                                |   | $ | 786 |   | $ | 450 |   |
|                                                                   |   |   |   |   |   |   |   |
| Total                nonperforming loans to total loans                |   |   | 0.47 | % |   | 0.08 | % |
| Total                nonperforming loans to total assets               |   |   | 0.43 | % |   | 0.07 | % |
| Total                nonperforming assets to total assets              |   |   | 0.85 | % |   | 0.52 | % |
|                                                                   |   |   |   |   |   |   |   |

----

| (1) | Foreclosed                real estate and other repossessed assets consist of one single-family                residence located in O’Fallon, Illinois and one                automobile. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Investments.**

**Premises      and Equipment, Net. **

**Other      Assets. **

**Deposits**

**Borrowings**

**Other      Liabilities. **

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*Table          of Contents*

**Results      of Operations for the Three Months Ended September 30, 2008 and      2007.**

**General.      **

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

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

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

**Provision      for Loan Losses.**

**Noninterest      Income.**

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

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*Table          of Contents*

**Income      Taxes.**

**Results      of Operations for the Six Months Ended September 30, 2008 and      2007.**

**General.      **

|                                                            |   | **Six                Months Ended September 30,** |   |
|-----------------------------------------------------------------|--------|---------------------------------------------------|--------|
|                                                            |   | **2008**                                          |   | **2007** |   |
| **(Dollars                in thousands)**                       |   | **Average****Balance**                            |   | **Interest****and****Dividends** |   | **Yield/****Cost** |   | **Average****Balance** |   | **Interest****and****Dividends** |   | **Yield/****Cost** |   |
| **Assets:**                                                     |   |                                              |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning                assets:                         |   |                                              |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                           |   | $                                                 | 82,310 |   | $ | 2,487 |   |   | 6.04 | % | $ | 80,830 |   | $ | 2,398 |   |   | 5.93 | % |
| Stock                in FHLB of Chicago                         |   |                                              | 1,660  |   |   | — |   |   | 0.00 |   |   | 1,660 |   |   | 13 |   |   | 1.57 |   |
| Other                interest-earning assets                    |   |                                              | 3,110  |   |   | 21 |   |   | 1.35 |   |   | 2,536 |   |   | 64 |   |   | 5.05 |   |
| Total                interest-earning assets                    |   |                                              | 87,080 |   |   | 2,508 |   |   | 5.76 |   |   | 85,026 |   |   | 2,475 |   |   | 5.82 |   |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning                assets                       |   |                                              | 2,525  |   |   |   |   |   |   |   |   | 2,259 |   |   |   |   |   |   |   |
| Total                assets                                     |   |                                              | 89,605 |   |   |   |   |   |   |   |   | 87,285 |   |   |   |   |   |   |   |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and Stockholders’ Equity**   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                interest-bearing deposits                  |   |                                              | 56,467 |   |   | 935 |   |   | 3.31 |   |   | 54,657 |   |   | 1,013 |   |   | 3.71 |   |
| FHLB                advances                                    |   |                                              | 20,250 |   |   | 437 |   |   | 4.32 |   |   | 20,167 |   |   | 466 |   |   | 4.62 |   |
| Total                interest-bearing liabilities               |   |                                              | 76,717 |   |   | 1,372 |   |   | 3.58 |   |   | 74,824 |   |   | 1,479 |   |   | 3.95 |   |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing                deposit accounts             |   |                                              | 2,753  |   |   |   |   |   |   |   |   | 2,326 |   |   |   |   |   |   |   |
| Other                noninterest-bearing liabilities            |   |                                              | 893    |   |   |   |   |   |   |   |   | 1,039 |   |   |   |   |   |   |   |
| Total                liabilities                                |   |                                              | 80,363 |   |   |   |   |   |   |   |   | 78,189 |   |   |   |   |   |   |   |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’                equity                       |   |                                              | 9,242  |   |   |   |   |   |   |   |   | 9,096 |   |   |   |   |   |   |   |
| Total                liabilities and stockholders’ equity |   | $                                                 | 89,605 |   |   |   |   |   |   |   | $ | 87,285 |   |   |   |   |   |   |   |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                              |   |                                              |   |   | $ | 1,136 |   |   |   |   |   |   |   | $ | 996 |   |   |   |   |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                rate spread                             |   |                                              |   |   |   |   |   |   | 2.18 | % |   |   |   |   |   |   |   | 1.87 | % |
|                                                            |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest margin                              |   |                                              |   |   |   |   |   |   | 2.61 | % |   |   |   |   |   |   |   | 2.34 | % |

**Total      Interest Income.**

**Total      Interest Expense. **

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*Table          of Contents*

**Net      Interest Income.**

**Provision      for Loan Losses.**

**Analysis      of Loan Loss Experience.**

|                                                                                               |   | **Six                Months Ended****September                30,** |    |
|----------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|---------|
| **(Dollars                in thousands)**                                                          |   | **2008**                                                            |    | **2007** |   |
| Allowance                at beginning of period                                                    |   | $                                                                   | 124     |   | $ | 130 |   |
|                                                                                               |   |                                                                |    |   |   |   |   |
| Provision                for (recovery of) loan losses                                             |   |                                                                | 12      |   |   | — |   |
|                                                                                               |   |                                                                |    |   |   |   |   |
| Charge-offs:                                                                                       |   |                                                                |    |   |   |   |   |
| One-                to four- family                                                                |   |                                                                | — |   |   | — |   |
| Consumer                loans                                                                      |   |                                                                | (6      | ) |   | — |   |
| Total                charge-offs                                                                   |   |                                                                | (6      | ) |   | — |   |
|                                                                                               |   |                                                                |    |   |   |   |   |
| Recoveries:                                                                                        |   |                                                                |    |   |   |   |   |
| One-                to four- family                                                                |   |                                                                | — |   |   | — |   |
| Consumer                loans                                                                      |   |                                                                | — |   |   | — |   |
| Total                recoveries                                                                    |   |                                                                | — |   |   | — |   |
| Net                recoveries (charge-offs)                                                        |   |                                                                | (6      | ) |   | — |   |
|                                                                                               |   |                                                                |    |   |   |   |   |
| Allowance                at end of period                                                          |   | $                                                                   | 130     |   | $ | 130 |   |
|                                                                                                    |   |                                                                |    |   |   |   |   |
| Allowance                to nonperforming loans                                                    |   |                                                                | 33.00   | % |   | 12.33 | % |
| Allowance                to total loans outstanding at                end of six month period      |   |                                                                | 0.15    | % |   | 0.16 | % |
| Annualized                net charge-offs (recoveries) to average loans                outstanding |   |                                                                | 0.01    | % |   | — |   |

**Noninterest      Income. **

**Noninterest      Expense. **

**Income      Taxes. **

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*Table          of Contents*

**Liquidity      and Capital Management**

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

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*Table          of Contents*

**Equity      Incentive Plan. **

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

|                                                    |   |                                    |   |     |   | Minimum                  Required |   |
|---------------------------------------------------------|--------|-----------------------------------------|--------|----------|--------|-----------------------------------|--------|
|                                                    |   |                                    |   |     |   | for                  Capital      |   | to                  be "Well |   |
|                                                    |   | Actual                                  |   | Adequacy |   | Capitalized"                      |   |
|                                                    |   | Amount                                  |   | Ratio    |   | Amount                            |   | Ratio |   | Amount |   | Ratio |   |
|                                                    |   | (Dollars                  in Thousands) |   |
|                                                    |   |                                    |   |     |   |                              |   |   |   |   |   |   |   |
| Stockholders'                  equity of the Bank       |   | $                                       | 8,778  |     |   | 9.47                              | %      | $ | 1,390 |   |   | 1.50 | % |   |   |   |   |   |   |
| General                  valuation allowance            |   |                                    | 130    |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  capital to risk-weighted assets  |   | $                                       | 8,908  |     |   | 17.80                             | %      | $ | 4,002 |   |   | 8.00 | % | $ | 5,003 |   |   | 10.00 | % |
|                                                    |   |                                    |   |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                  1 capital to risk-weighted assets |   | $                                       | 8,778  |     |   | 17.55                             | %      | $ | 2,001 |   |   | 4.00 | % | $ | 3,002 |   |   | 6.00 | % |
|                                                    |   |                                    |   |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                  1 capital to total assets         |   | $                                       | 8,778  |     |   | 9.47                              | %      | $ | 3,707 |   |   | 4.00 | % | $ | 4,634 |   |   | 5.00 | % |
|                                                    |   |                                    |   |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |

**Off-Balance      Sheet Arrangements**

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*Table          of Contents*

**Item      3. Quantitative and Qualitative Disclosure About Market      Risk**

**Item      4. Controls and Procedures**

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*Table          of Contents*

**PART      II. OTHER INFORMATION**

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

**Item      1A. Risk Factors**

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

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

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

|   | (a) | On                August 18, 2008 the Company held its Annual Meeting of                Shareholders. |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (b) | At                the meeting, Timothy P. Fleming and Daniel S. Reilly were elected,                each to                serve a three-year term. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Stockholders                voted on the following matters: |
|--------|-----|-------------------------------------------------------------|

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

| DIRECTOR                            | FOR     | ABSTAIN |
|-------------------------------------|---------|---------|
|                                |    |    |
| Timothy                  P. Fleming | 762,456 | 11,600  |
|                                |    |    |
| Daniel                  S. Reilly   | 762,456 | 11,600  |

|  | (ii) | The                ratification of the appointment of Michael Trokey & Company, P.C. as                independent registered public accounting firm for the Company for                the                fiscal year ended March 31, 2009: |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| FOR     | AGAINST | ABSTAIN |
|---------|---------|---------|
|    |    |    |
| 772,356 | 1,600   | 100     |

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

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*Table          of Contents*

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

|   | 3.1 | Charter                of Sugar Creek Financial (1) |
|--------|-----|-----------------------------------------------------|

|   | 3.2 | Bylaws                of Sugar Creek Financial (1) |
|--------|-----|----------------------------------------------------|

|  | 4.0 | Stock                certificate of Sugar Creek Financial                (2) |
|--|-----|------------------------------------------------------------------------------|

|   | 31.0 | 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 Annual Report on Form 10-KSB                (File No. 000-52532), filed on June 27,                2007. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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*Table          of Contents*

**SIGNATURES**

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