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

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): July 18, 2007

RAINIER PACIFIC FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)

Registrant's telephone number, including area code:(253) 926-4000

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Item 2.02 Results of Operations and Financial Condition

        On July 18, 2007, Rainier Pacific Financial Group, Inc. issued its earnings release for the quarter ended June 30, 2007. A copy of the press release is attached as Exhibit 99.1 and incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits

        (c)      Exhibits

       99.1    Press Release of Rainier Pacific Financial Group, Inc. dated July 18, 2007.

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SIGNATURES

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

                                                                            RAINIER PACIFIC FINANCIAL GROUP, INC.

Date: July 18, 2007                                             /s/ John A. Hall                                                  
                                                                            John A. Hall
                                                                            President and Chief Executive Officer
                                                                            (Principal Executive Officer)

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EXHIBIT 99.1

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                                                                                                           For more information, contact:
                                                                                                            John Hall: (253) 926-4007
                                                                                                            jhall@rainierpac.com
**For Immediate Release**                                                                            or
                                                                                                            Vic Toy: (253) 926-4038
                                                                                                           vtoy@rainierpac.com

Rainier Pacific Financial Group, Inc.
Reports Second Quarter Earnings

Tacoma, Washington - July 18, 2007 - Rainier Pacific Financial Group, Inc. (the "Company") (NASDAQ GM: RPFG) announced today its second quarter results for the period ended June 30, 2007. Net income for the quarter ended June 30, 2007 was up 41.7% to $982,000, or $0.16 per diluted share, compared to net income of $693,000, or $0.12 per diluted share, for the same period in 2006. For the six months ended June 30, 2007, the Company's net income was $1.9 million, or $0.31 per diluted share, compared to net income of $1.3 million, or $0.23 per diluted share, for the same six month period in 2006.

The Company's revenue (i.e., net interest income before provisions for loan losses plus non-interest income) for the quarter ended June 30, 2007 was $8.8 million, compared to $8.3 million for the same period a year ago. Net interest income before the provision for loan losses for the quarter was $6.4 million, or 4.9% higher than the $6.1 million during the same period a year ago. For the quarter ended June 30, 2007, the Company's net interest margin improved slightly to 3.01%, compared to 2.96% for the quarter ended March 31, 2007, and 2.87% for the quarter ended June 30, 2006. The yield on the Company's interest-earning assets was 6.71% for the quarter ended June 30, 2007,

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compared to 6.69% and 6.22% for the quarters ended March 31, 2007 and June 30, 2006, respectively. For the quarter ended June 30, 2007, the Company's cost of interest-bearing liabilities was 4.11%, compared to 4.13% and 3.69% for the quarters ended March 31, 2007 and June 30, 2006, respectively.

Non-interest income was up 4.5% to $2.3 million for the quarter ended June 30, 2007, compared to $2.2 million for the same quarter in 2006. An increase of $104,000 in property and casualty insurance service fees during the second quarter of 2007, compared to the same quarter in 2006, accounted for most of the increase in non-interest income.

The Company continued to focus on managing operating expenses effectively. Non-interest expense was $7.1 million for the quarter ended June 30, 2007, and was unchanged compared to the quarters ended March 31, 2007 and June 30, 2006.

At June 30, 2007, the Company's total assets were $904.8 million, slightly higher than the $902.7 million at December 31, 2006. Total shareholders' equity at June 30, 2007 was $89.9 million, compared to $87.8 million at December 31, 2006.

In the second quarter ended June 30, 2007, the Company purchased and retired 10,000 shares of its outstanding shares of common stock at an average price of $20.70 per share. At June 30, 2007, the Company had the authority to purchase an additional 213,920 shares of common stock under its currently approved stock repurchase program.

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The Company's book value and tangible book value per share as of June 30, 2007 were $14.63 and $14.11 per share, respectively, based upon 6,144,259 outstanding shares of common stock. The number of outstanding shares includes 132,482 restricted shares granted to participants under the Company's 2004 Management Recognition Plan that have not yet vested or were not ratably earned, and excludes 424,211 of unallocated shares held by the Rainier Pacific 401(k) Employee Stock Ownership Plan.

Total loans were $647.4 million at June 30, 2007, compared to $638.5 million at March 31, 2007 and $639.4 million at December 31, 2006, respectively. For the quarter ended June 30, 2007, the yield on loans was 7.27%, compared to 7.24% and 6.92% for the quarters ended March 31, 2007 and June 30, 2006, respectively. At June 30, 2007, the loan portfolio consisted of 33.3% commercial real estate loans, 24.6% multi-family real estate loans, 12.2% single-family real estate loans, 11.7% real estate construction loans, 8.6% consumer loans, 6.9% home equity loans, and 2.7% commercial business loans.

Total loan originations increased during the quarter ended June 30, 2007 to $61.1 million, compared to $40.4 million and $58.0 million for the quarters ended March 31, 2007 and June 30, 2006, respectively. Loan originations for the quarter ended June 30, 2007 were primarily comprised of commercial real estate and construction loans and increased business lending.

The Company sold $5.6 million of single-family fixed-rate real estate loans which generated $66,000 in net gains during the quarter ended June 30, 2007, compared to $2.6 million in loan sales and

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$46,000 in net gains during the same period in 2006. The portfolio of loans serviced for others increased to $113.4 million at June 30, 2007, compared to $106.4 million at June 30, 2006.

Loan portfolio credit quality remained good during the second quarter. Net charge-offs were $191,000 for the quarter ended June 30, 2007, compared to $157,000 for the quarter ended March 31, 2007, and $227,000 for the quarter ended June 30, 2006. Loans more than 30 days delinquent as a percentage of total loans were 0.26% at June 30, 2007, unchanged compared to March 31, 2007, and slightly lower than the 0.28% at December 31, 2006. Non-performing loans (i.e., loans 90 days or more past due or non-accrual loans) were $217,000, or 0.03% of total loans, at June 30, 2007, compared to $224,000, or 0.04% of total loans, at March 31, 2007, and $241,000, or 0.04% of total loans, at December 31, 2006. Non-performing assets were $233,000, or 0.03% of total assets, at June 30, 2007, compared to $245,000, or 0.03% of total assets, at March 31, 2007, and $274,000 or 0.03% of total assets, at December 31, 2006. The Company's provision for loan losses was $150,000 for the quarter ended Jun e 30, 2007, unchanged from the provision made for the quarters ended March 31, 2007 and June 30, 2006. The allowance for loan losses of $8.2 million at June 30, 2007, representing an allowance to total loans ratio of 1.27%, was slightly lower than the $8.3 million at both March 31, 2007 and December 31, 2006.

The investment securities portfolio at June 30, 2007 of $190.7 million (excluding $13.7 million in Federal Home Loan Bank of Seattle stock holdings), was less than the $194.5 million at March 31, 2007, and the $226.1 million at June 30, 2006. These declines reflect the Company's decision to gradually reduce the size of its investment portfolio, while increasing the loan portfolio component of its earnings assets.

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Total deposits were $460.3 million at June 30, 2007, compared to $466.7 million at March 31, 2007 and $457.4 million at December 31, 2006. Core deposits (comprised of checking, savings, money market, and individual retirement accounts) increased $22.0 million to $242.4 million, or 52.7% of total deposits, as of June 30, 2007, compared to $220.4 million at of December 31, 2006. Brokered deposit balances were $50.6 million at June 30, 2007, compared to $49.9 million at March 31, 2007 and $50.9 million at December 31, 2006. For the quarter ended June 30, 2007, the average cost of interest-bearing deposits was 3.83%, compared to 3.89% for the quarter ended March 31, 2007 and 3.26% for the quarter ended June 30, 2006. The decrease in the second quarter of 2007 cost of interest-bearing deposits compared to the first quarter resulted from less aggressive pricing tactics, while the increased cost of interest-bearing deposits compared to the prior year was the result of higher short-t erm interest rates and enhanced competition for deposits in our local market.

"The operating environment remains challenging with the continuation of a relatively flat yield curve and aggressive local competition for both loans and customer deposits. These factors continue to create pressure on our ability to achieve growth in our loan and deposit portfolios, and to further expand our net interest margin. Despite these challenges, we are pleased with the improvement in our profitability and our ability to continue to restructure our loan portfolio, while maintaining very good loan quality, during the first half of 2007. Looking forward to the second half of the year, we will remain focused on maintaining credit quality, effectively managing operating expenses, and profitably growing our core business," said John A. Hall, President and CEO.

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Rainier Pacific Financial Group, Inc. is the bank holding company for Rainier Pacific Bank, a Tacoma, Washington-based state-chartered savings bank operating 14 full-service locations in the Tacoma-Pierce County and City of Federal Way market areas.

For additional information, visit Rainier Pacific's website atwww.rainierpac.com.

Forward-looking statements:

Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding the Company's mission and vision. These forward-looking statements are based upon current management expectations and may, therefore, involve risks and uncertainties. The Company's actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety or range of factors including, but not limited to, interest rate fluctuations; economic conditions in the Company's primary market area; demand for residential, commercial real estate, consumer, and other types of loans; success of new products; competitive conditions between banks and non-bank financial service providers; regulatory and accounting changes; technological factors affecting operations; pricing of products and services; and other risks detailed in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2006. Accordingly, these factors should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Company undertakes no responsibility to update or revise any forward-looking statement.

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Rainier Pacific Financial Group, Inc. & Subsidiary
Consolidated Statements of Condition
(Dollars in Thousands)

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Rainier Pacific Financial Group, Inc. & Subsidiary
Consolidated Statements of Income
(Dollars in Thousands, except per share data)

(1)   Weighted average shares outstanding - Basic includes 196,818 vested and ratably earned shares of the 329,300 restricted shares granted and issued under the
       2004 Management Recognition Plan ("MRP"), net of forfeited shares.
(2)   Weighted average shares outstanding - Basic includes 133,430 vested and ratably earned shares of the 324,000 restricted shares granted and issued under the
       MRP, net of forfeited shares.

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Rainier Pacific Financial Group, Inc. & Subsidiary
Consolidated Statements of Income
(Dollars in Thousands, except per share data)

(1)   Weighted average shares outstanding - Basic includes 196,818 vested and ratably earned shares of the 329,300 restricted shares granted and issued under the
       MRP, net of forfeited shares.
(2)   Weighted average shares outstanding - Basic includes 180,708 vested and ratably earned shares of the 321,300 restricted shares granted and issued under the
       MRP, net of forfeited shares.
(3)   Weighted average shares outstanding - Basic includes 165,203 vested and ratably earned shares of the 322,800 restricted shares granted and issued under the
       MRP, net of forfeited shares.
(4)   Weighted average shares outstanding - Basic includes 149,313 vested and ratably earned shares of the 322,800 restricted shares granted and issued under the
       MRP, net of forfeited shares.

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Rainier Pacific Financial Group, Inc. & Subsidiary
Selected Information and Ratios
(Dollars in Thousands)

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Rainier Pacific Financial Group, Inc. & Subsidiary
Selected Information and Ratios
(Dollars in Thousands)

(1)  Shares outstanding represent 6,568,470 shares issued (including 132,482 unvested restricted shares granted under the MRP), less 424,211 unallocated
      shares under the ESOP.
(2)  Shares outstanding represent 6,569,670 shares issued (including 140,592 unvested restricted shares granted under the MRP), less 441,185 unallocated
      shares under the ESOP.
(3)  Shares outstanding represent 6,587,670 shares issued (including 157,597 unvested restricted shares granted under the MRP), less 458,159 unallocated
      shares under the ESOP.
(4)  Shares outstanding represent 6,617,670 shares issued (including 173,488 unvested restricted shares granted under the MRP), less 475,133 unallocated
      shares under the ESOP.
(5)  Shares outstanding represent 6,628,870 shares issued (including 190,570 unvested restricted shares granted under the MRP), less 492,107 unallocated
      shares under the ESOP.

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