ROEBLING FINANCIAL CORP, INC.
                               2006 ANNUAL REPORT

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                               TABLE OF CONTENTS
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President's Message......................................................... 1

Corporate Profile and Stock Market Information.............................. 2

Selected Financial Information ............................................. 3

Management's Discussion and Analysis of
 Financial Condition and Results of Operations.............................. 4

Report of Independent Registered Public Accounting Firm.................... 16

Consolidated Financial Statements.......................................... 17

Notes to Consolidated Financial Statements................................. 23

Office Locations and Other Corporate Information........................... 47



<PAGE>

[GRAPHIC OMITTED]   ROEBLING FINANCIAL CORP, INC.






To our Shareholders and Customers:

On behalf of our directors, officers and staff, I am pleased to present the 2006
Annual  Report to the  Shareholders.  Your Company  experienced  another year of
exceptional  growth.  Total assets grew to $130.6 million,  an increase of $18.7
million or 17%, total net loans reached $94.0  million,  an increase of 23% over
the prior year and total  deposits grew to $103.7  million,  an increase of 22%.
This would not have been  possible  without  the  support of our  directors  and
staff, and the allegiance of our customers.

During the past year we opened the Delran branch, increasing our banking offices
to five. Additional enhancements in technology were established to our operating
system as well as  introducing  bill pay to our product line. The Bank continues
to focus on  providing  "better than  expected"  service in the  communities  we
service.

We remain  grateful to our customers  for their  business and the support of our
shareholders.

Sincerely,

/s/ Frank J. Travea, III

Frank J. Travea, III
President and Chief Executive Officer


Route 130 South & Delaware Avenue, P O Box 66, Roebling, NJ 08554 (609) 499-9400


<PAGE>
                          ROEBLING FINANCIAL CORP, INC.

CORPORATE PROFILE

     Roebling  Financial Corp, Inc. (the "Company") is a New Jersey  corporation
which was organized in 2004 and became the successor to Roebling Financial Corp,
Inc.,  a  federal   corporation,   after  the  completion  of  the  second  step
mutual-to-stock  conversion of Roebling  Financial  Corp.,  MHC on September 30,
2004.  The  Company  is the  holding  company  parent of  Roebling  Bank and its
principal  asset is its  investment in Roebling  Bank.  In  connection  with the
second step  conversion,  the Company sold 910,764 shares of common stock to the
public, raising $7.8 million in net cash proceeds. Shares of the former Roebling
Financial Corp, Inc. were converted into 3.9636 shares of the new Company.

     We currently  conduct our business  through Roebling Bank (the "Bank") with
five full service offices located in Roebling, New Egypt, Westampton and Delran,
New Jersey and an administrative center also located in Westampton,  New Jersey.
We offer a broad range of deposit and loan products to individuals, families and
small  businesses.  At September 30, 2006, we had consolidated  assets of $130.6
million, deposits of $103.7 million, and stockholders' equity of $16.4 million.

STOCK MARKET INFORMATION

     Our common stock is traded on the  over-the-counter  market with quotations
available on the OTC Bulletin Board under the symbol "RBLG." The following table
reflects high and low bid quotations and dividends declared for each quarter for
the past two fiscal years. The quotations reflect inter-dealer  prices,  without
retail  mark-up,   mark-down,  or  commission,  and  may  not  represent  actual
transactions.
<TABLE>
<CAPTION>

        QUARTER ENDED                                                 HIGH              LOW        DIVIDENDS
        -------------                                                 ----              ---        ---------
       <S>                                                          <C>              <C>                 <C>
       September 30, 2006                                           $13.90           $10.75                -
       June 30, 2006                                                 10.85            10.25                -
       March 31, 2006                                                10.49             9.88                -
       December 31, 2005                                              9.95             9.45             $.10
       September 30, 2005                                             9.95             9.65                -
       June 30, 2005                                                 10.00             9.10                -
       March 31, 2005                                                 9.90             9.41                -
       December 31, 2004                                             10.03             9.20                -
</TABLE>


         As of  September  30,  2006 there were  1,712,259  shares of our common
stock outstanding and approximately 540 holders of record.  This number does not
reflect the number of persons or entities  who held stock in nominee or "street"
name through various  brokerage  firms. The Company declared its second dividend
on November 6, 2006. A cash dividend of $.10 per share was declared,  payable to
stockholders  of record as of November  27,  2006,  with payment on December 18,
2006. The payment of future  dividends will be subject to the periodic review of
the financial  condition,  results of operations and capital requirements of the
Company and Bank.

                                       2
<PAGE>
<TABLE>
<CAPTION>
SELECTED FINANCIAL INFORMATION
                                                                         AT OR FOR THE YEAR ENDED SEPTEMBER 30,
                                                                      ------------------------------------------
                                                                         2006            2005            2004
                                                                      ----------      ----------      ----------
                                                                     (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<S>                                                                   <C>             <C>             <C>
SELECTED BALANCE SHEET DATA:
Assets......................................................          $  130,607      $  111,859      $   97,372
Loans receivable, net.......................................              94,014          76,551          64,376
Securities..................................................              27,602          27,718          25,151
Deposits....................................................             103,682          84,856          79,817
Borrowed funds..............................................               9,300          10,000           1,000
Shareholders' equity........................................              16,410          16,048          15,553
SELECTED RESULTS OF OPERATIONS:
Interest income.............................................          $    6,650      $    5,117      $    4,279
Interest expense............................................               2,212           1,218             892
Net interest income.........................................               4,438           3,899           3,387
Provision for loan losses...................................                 132              89              22
Non-interest income.........................................                 463             475             462
Non-interest expense........................................               3,988           3,208           2,886
Net income..................................................                 430             611             527
PER SHARE DATA: (1)
Earnings per share - basic .................................          $     0.26      $     0.38      $     0.32
Earnings per share - diluted................................                0.26            0.38            0.31
Book value per share........................................                9.58            9.38            9.22
Weighted average basic shares outstanding...................           1,632,681       1,612,531       1,666,313
Weighted average diluted shares outstanding.................           1,641,774       1,624,133       1,688,838
PERFORMANCE RATIOS:
Return on average assets....................................               0.36%           0.59%           0.59%
Return on average equity....................................                2.67            3.87            7.06
Net interest rate spread....................................                3.36            3.53            3.76
Net interest margin.........................................                3.93            3.93            4.00
Efficiency ratio............................................               81.37           73.33           74.98
Dividend payout ratio.......................................                0.39               -               -
Average interest-earning assets to average
   interest-bearing liabilities.............................               1.29x           1.33x           1.22x
ASSET QUALITY RATIOS:
Non-performing loans to total assets........................               0.37%           0.05%           0.17%
Non-performing loans to total loans, net....................                0.51            0.08            0.25
Net charge-offs to average loans............................                0.00            0.01            0.01
Allowance for loan losses to total loans at period end......                0.74            0.74            0.76
Allowance for loan losses to non-
   performing loans at period end...........................               1.45x          10.16x           3.01x
CAPITAL RATIOS:
Average equity to average assets............................              13.59%          15.17%           8.35%
Equity to assets at period end..............................               12.57           14.35           15.97
<FN>

-------
(1)  Per Share Data for 2004 has been  adjusted to reflect  the 3.9636  exchange
     ratio in the second-step conversion
</FN>
</TABLE>

                                       3
<PAGE>
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


FORWARD-LOOKING STATEMENTS

     The Private  Securities  Litigation Reform Act of 1995 contains safe harbor
provisions regarding forward-looking  statements.  When used in this discussion,
the words "intends", "believes", "anticipates",  "contemplates",  "expects", and
similar expressions are intended to identify  forward-looking  statements.  Such
statements  are  subject to certain  risks and  uncertainties  which could cause
actual  results to differ  materially  from  those  projected.  Those  risks and
uncertainties  include changes in interest  rates,  the ability to control costs
and expenses and general  economic  conditions.  We undertake no  obligation  to
publicly  release  the  results  of  any  revisions  to  those   forward-looking
statements which may be made to reflect events or  circumstances  after the date
hereof or to reflect the occurrence of unanticipated events.

     Since we  conduct no  significant  business  other  than  owning all of the
common stock of Roebling Bank,  references in this discussion to "we," "us," and
"our," refer collectively to Roebling Financial Corp, Inc. and Roebling Bank.

GENERAL


     Roebling  Financial  Corp,  Inc. is the  successor  to the former  mid-tier
holding company subsidiary of Roebling  Financial Corp., MHC (the "MHC"),  which
completed  its second step  conversion  to stock form on September  30, 2004. In
connection with the second step  conversion,  the Company sold 910,764 shares to
the public for $10 per share (including 72,861 shares purchased by the Company's
employee stock ownership plan with funds borrowed from the Company). As a result
of the second step  conversion,  each  stockholder in the MHC's former  mid-tier
holding  company  subsidiary  (other than the MHC, whose shares were  cancelled)
received 3.9636 shares of the Company's  common stock in exchange for each share
held and the Company  became the sole  shareholder  in Roebling  Bank. Per share
data for  periods  prior to October  1, 2004 has been  restated  to reflect  the
conversion.

     Our results of  operations  depend  primarily on our net  interest  income,
which is the difference between the interest earned on interest-earning  assets,
primarily  loans and  investments,  and the  interest  paid on  interest-bearing
liabilities,  primarily  deposits and  borrowings.  It is also a function of the
composition   of   assets   and   liabilities   and  the   relative   amount  of
interest-earning  assets  to  interest-bearing   liabilities.   Our  results  of
operations  are also affected by our  provisions  for loan losses,  non-interest
income and  non-interest  expense.  Non-interest  income  consists  primarily of
service  charges  and  fees.   Non-interest   expense   consists   primarily  of
compensation  and benefits,  occupancy and equipment,  data  processing fees and
other  operating  expenses.  Our  results  of  operations  may also be  affected
significantly by economic and competitive conditions, changes in market interest
rates, governmental policies and actions of regulatory authorities.

CRITICAL ACCOUNTING POLICIES, JUDGMENTS AND ESTIMATES

     The  accounting and reporting  policies of Roebling  Financial  Corp,  Inc.
conform with the accounting  principles  generally accepted in the United States
of America and general  practices within the financial  services  industry.  The
preparation of the financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that affect the amounts

                                       4
<PAGE>

reported in the financial  statements and the accompanying notes. Actual results
could differ from those estimates.

     We  consider  accounting  policies  involving   significant  judgments  and
assumptions  by management  that have,  or could have, a material  impact on the
carrying  value  of  certain  assets  or on  income  to be  critical  accounting
policies.  We consider the allowance for loan losses to be a critical accounting
policy.

     ALLOWANCE FOR LOAN LOSSES. Determining the amount of the allowance for loan
losses  necessarily  involves a high degree of judgment.  The allowance for loan
losses is the  estimated  amount  considered  necessary to cover  credit  losses
inherent in the loan  portfolio  at the balance  sheet date.  The  allowance  is
established  through the  provision  for loan losses,  which is charged  against
income.  Management  performs an evaluation of the adequacy of the allowance for
loan  losses on a quarterly  basis,  at a minimum.  Consideration  is given to a
variety  of  factors   including   current  economic   conditions,   delinquency
statistics,  composition of the loan portfolio, loss experience, the adequacy of
the underlying collateral,  the financial strength of the borrowers,  results of
internal loan reviews, geographic and industry concentrations, and other factors
related to the collectibility of the loan portfolio. The valuation is inherently
subjective as it requires material  estimates,  including the amounts and timing
of expected future cash flows expected to be received on impaired  loans,  which
may be susceptible to significant change.

     Our  methodology  for analyzing  the allowance for loan losses  consists of
several components.  Specific allocations are made for loans that are determined
to be  impaired.  A loan is  considered  to be impaired  when,  based on current
information,  it is  probable  that we will be unable to collect all amounts due
according to the  contractual  terms of the loan  agreement.  For such loans,  a
specific allowance is established when the present value of expected future cash
flows or, for  collateral-dependent  loans,  the fair  value of the  collateral,
adjusted for market conditions and selling  expenses,  is less than the carrying
value of the loan.  The general  allocation  is determined  by  segregating  the
remaining  loans into groups by type and purpose of loan and  applying a reserve
percentage to each group.  The reserve  percentage  is based on inherent  losses
associated  with each type of lending,  as well as historical  loss factors.  We
also look at the level of our allowance in proportion to nonperforming loans and
total loans.  We have  established  an overall range that we have  determined is
prudent  based  on  historical  and  industry  data.  An  unallocated  allowance
represents  the  excess  of  the  total  allowance,  determined  to  be  in  the
established range, over the specific and general allocations.

     While we believe that we use the best information  available to perform our
loan loss allowance analysis,  adjustments to the allowance in the future may be
necessary.  Changes in underlying  estimates could result in the requirement for
additional  provisions for loan losses. For example, a rise in delinquency rates
may cause us to  increase  the reserve  percentages  we apply to loan groups for
purposes of calculating general allocations,  or may require additional specific
allocations  for  impaired  loans.  In  addition,  actual  loan  losses  may  be
significantly  more  than  the  reserves  we have  established.  Each  of  these
scenarios  would  require  additional  provisions,  which  could have a material
negative  effect on our financial  results.  The ratio of the allowance for loan
losses to total loans outstanding was .74% at both September 30, 2006, and 2005.
A 25% increase in this ratio would have  increased the allowance by $176,000 and
$143,000 at September 30, 2006 and 2005, respectively.

BUSINESS STRATEGY

     Our business strategy has been to operate as a well-capitalized independent
financial  institution  dedicated  to  providing  convenient  access and quality
service at competitive  prices.  Historically,  we have sought to implement this
strategy by  maintaining  a  substantial  part of our assets in loans secured by
one-to-four  family  residential real estate located in our market area and home
equity and consumer loans. In recent years, we have diversified our portfolio to
include  a  higher  percentage  of  commercial  real  estate,   multifamily  and
construction

                                       5
<PAGE>

loans, which are generally secured by properties in our market area.

     We intend to continue to emphasize a variety of deposit and loan  products,
with the latter  consisting  primarily  of  one-to-four  family and  multifamily
mortgages,  home equity loans, commercial real estate and construction loans. We
are growing our branch network, which is expanding our geographic reach, and may
consider the acquisition of other financial  institutions or branches. In fiscal
2006 we opened our fifth retail banking  office,  located in Delran,  Burlington
County.  In fiscal 2005 we relocated  our loan center from a leased  facility in
Roebling to a leased site in  Westampton  Township,  Burlington  County and also
centralized our back-office  and  administrative  operations and opened a retail
banking  facility at this site.  The  additional  capital that we raised in 2004
will be used to support the growth of these two branches.  We introduced  online
bill payment in 2006 to enhance our internet banking product,  which we launched
in 2005. Online banking has been very well received by our customer base.

MANAGEMENT OF INTEREST RATE RISK AND MARKET RISK

     Because the majority of our assets and liabilities are sensitive to changes
in interest  rates,  our most  significant  form of market risk is interest rate
risk, or changes in interest  rates. We may be more vulnerable to an increase or
decrease  in  interest  rates  depending  upon  1) the  duration  and  repricing
characteristics of our interest-earning assets and interest-bearing  liabilities
at a given  point in time,  2) the time  horizon  and 3) the  level of  interest
rates.

     We have  established  an  asset/liability  committee  that  consists of the
Chairman of our Board of Directors and two outside Directors,  our President and
members of our  management  team. The committee  meets on a semiannual  basis to
review  loan and deposit  pricing and  production  volumes,  interest  rate risk
analyses,  liquidity  and  borrowing  needs,  and a variety  of other  asset and
liability management topics.  General  asset/liability  matters are discussed at
the Board's regular meetings.

     To reduce the effect of interest  rate changes on net interest  income,  we
have  adopted  various  strategies  to  enable us to  improve  the  matching  of
interest-earning asset maturities to interest-bearing  liability maturities. The
principal elements of these strategies include seeking to:

     o    originate  loans with  adjustable  rate features or shorter term fixed
          rates for portfolio and sell longer term fixed rate mortgages;

     o    maintain  a  high  percentage  of  low-cost  transaction  and  savings
          accounts  which tend to be less interest rate  sensitive when interest
          rates rise;

     o    lengthen  the  maturities  of our  liabilities  when it  would be cost
          effective   through  the  pricing   and   promotion   of  longer  term
          certificates of deposit;

     o    maintain an investment portfolio,  with short to intermediate terms to
          maturity or  adjustable  interest  rates,  that provides a stable cash
          flow,  thereby  providing  investable  funds in varying  interest rate
          cycles.

     Although we have historically made a significant  effort to maintain a high
level of lower-cost  deposits as a method of enhancing  profitability,  this has
become increasingly difficult in the current rate environment. As interest rates
have  risen,  the  banking  industry  has  seen a  migration  of  deposits  into
certificate  of deposit  accounts and out of transaction  and savings  accounts.
Likewise, our core deposit ratio decreased to 51% at September 30, 2006 from 63%
at September 30, 2005.

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<PAGE>

     Exposure to interest rate risk is closely monitored by our management.  Our
objective is to maintain a consistent level of profitability  within  acceptable
risk tolerances across a broad range of potential interest rate environments. In
addition to various analyses,  we use the Office of Thrift  Supervision  ("OTS")
Net Portfolio  Value ("NPV") Model,  which  calculates  changes in net portfolio
value,  to monitor  our  exposure  to  interest  rate risk.  NPV is equal to the
estimated  present value of assets minus the present value of  liabilities  plus
the net present  value of  off-balance-sheet  contracts.  The Interest Rate Risk
Exposure  Report  shows the  degree to which  balance  sheet  line items and net
portfolio value are potentially affected by a 100 to 300 basis point (1/100th of
a percentage  point) upward and downward  parallel shift (shock) in the Treasury
yield curve.

     The following  table  represents our Net Portfolio  Value  calculations  at
September 30, 2006. This data was calculated by the OTS, based upon  information
we provided to them.
<TABLE>
<CAPTION>
                                                                         NPV AS % OF PRESENT
                                    NET PORTFOLIO VALUE                    VALUE OF ASSETS
                                    -------------------                    ----------------
 CHANGE                  ESTIMATED                                      NPV
 IN RATE                  AMOUNT           CHANGE      % CHANGE         RATIO(1)        CHANGE(2)
---------                 ------           ------      --------         --------        ---------
                             ($ in thousands)
<S>                    <C>              <C>             <C>              <C>               <C>
+300 bp                $13,669          $(3,456)       (20%)            10.46%           -219 bp
+200 bp                 14,904           (2,220)       (13%)            11.27%           -138 bp
+100 bp                 16,071           (1,053)       ( 6%)            12.00%            -65 bp
   0 bp                 17,124                                          12.65
-100 bp                 17,865              741          4%             13.08%            +43 bp
-200 bp                 18,326            1,201          7%             13.33%            +68 bp
-300 bp (3)
<FN>
___________
(1)      Calculated as the estimated NPV divided by the present value of assets.
(2)      Calculated  as the increase  (decrease)  in the NPV ratio  assuming the
         indicated  change  in  interest  rates  over the  estimated  NPV  ratio
         assuming no change in interest rates.
(3)      No calculation was available from the OTS.
</FN>
</TABLE>

     The  above  table  indicates  that in the event of a sudden  and  sustained
increase in prevailing  market  interest  rates,  the Bank's net portfolio value
would be expected to decrease.  Conversely,  a decrease in interest  rates would
benefit net portfolio value.

     Computations of prospective  effects of hypothetical  interest rate changes
are based on numerous assumptions,  including relative levels of market interest
rates,  prepayments  and  deposit  run-offs,  and should  not be relied  upon as
indicative  of  actual  results.  Certain  shortcomings  are  inherent  in  such
computations.   Although   certain  assets  and  liabilities  may  have  similar
maturities  or periods of  repricing,  they may react at different  times and in
different degrees to changes in the market interest rates. The interest rates on
certain types of assets and  liabilities  may fluctuate in advance of changes in
market interest rates,  while rates on other types of assets and liabilities may
lag behind changes in market interest rates.  Certain assets, such as adjustable
rate mortgages, generally have features which restrict changes in interest rates
on a short term  basis and over the life of the asset.  In the event of a change
in  interest  rates,  prepayments  and early  withdrawal  levels  could  deviate
significantly  from those  assumed in making the  calculations  set forth above.
Additionally,  an  increased  credit  risk may  result

                                       7
<PAGE>

as the ability of many borrowers to service their debt may decrease in the event
of an interest rate increase.

COMPARISON OF FINANCIAL CONDITION AT SEPTEMBER 30, 2006 AND 2005

     ASSETS.  Total assets increased $18.7 million,  or 16.8%, to $130.6 million
at September 30, 2006,  from $111.9 million at September 30, 2005. This increase
is largely  attributable to a $17.5 million increase in net loans receivable and
a $1.1 million increase in premises and equipment.  The loans  receivable,  net,
portfolio  increased  by 22.8% to $94.014  million at  September  30,  2006 from
$76.551  million at September 30, 2005,  while the loan to asset ratio increased
to 72.0% from 68.4% during the same period.  We have  continued to work with the
goal of increasing the loan to asset ratio, as loans  generally  generate higher
yields than investment securities, thereby contributing to more interest income.
Construction and land loans accounted for $8.4 million of the growth in the loan
portfolio,  while home  equity  loans grew by $5.5  million,  multifamily  loans
increased by $2.2 million and commercial loans increased by $1.2 million.  Loans
secured by one-to-four  family  residences,  including  home equity loans,  have
historically comprised the majority of the loan portfolio. While we expect these
loans to continue to be a significant  part of the loan portfolio,  we intend to
continue to increase commercial lending,  primarily  mortgage-secured  and, as a
result,  anticipate  a  continued  shift  in the  ratio  of  one-to-four  family
mortgages and commercial related loans, including  multifamily,  commercial real
estate and construction  and land loans. The one-to-four  family and home equity
loan portfolios represented 63.0% of loans receivable, net at September 30, 2006
and 69.8% at  September  30,  2005.  Premises  and  equipment  increased by $1.1
million,  to $3.833  million at  September  30,  2006,  from  $2.766  million at
September  30,  2005.  This  increase  resulted  from  expenditures  related  to
construction,  fit-up and  furnishing of our newest retail  banking  facility in
Delran.

     LIABILITIES. Total liabilities increased $18.4 million to $114.2 million at
September 30, 2006 from $95.8 million at September 30, 2005.  Deposits increased
by $18.8 million,  or 22.2%,  to $103.7 million at September 30, 2006 from $84.9
million at September 30, 2005, while borrowed funds decreased by $700,000 during
the same period,  to $9.3 million at September  30, 2006,  from $10.0 million at
September  30, 2005.  We opened our fifth and newest  retail  banking  office in
September, 2006 in Delran, following the opening of our fourth branch in August,
2005 in Westampton, both in Burlington County, New Jersey. Increases in deposits
of $6.6  million  for fiscal 2006 came from these  newest  branch  offices.  The
increase in total deposits of $18.8 million was  attributable  to an increase in
certificate of deposit  accounts,  which increased by $19.6 million,  to $50.610
million at September  30,  2006,  from  $31.050  million at September  30, 2005,
primarily  as a  result  of rate  specials.  Total  non-certificate  of  deposit
accounts  decreased  slightly in the same  period,  to $53.1  million from $53.8
million.  As  interest  rates have risen  over the past two years,  the  deposit
market has become increasingly  competitive.  Depositors have shifted money into
higher-costing  certificate  of deposit  and money  market  accounts  and out of
lower-costing  transaction and savings accounts. The banking industry in general
has seen an increase in certificates of deposit and a decrease in core deposits.
With these changes in our deposit portfolio,  our ratio of core deposit accounts
(non-certificates  of  deposit)  to total  deposits  has  decreased  to 51.2% at
September  30,  2006 from 63.4% at  September  30,  2005.  We expect the deposit
market  to  continue  to be  extremely  competitive  and it will  be an  ongoing
challenge to increase core deposits and market share.  As of June 30, 2006,  the
latest date for which branch deposit data is available from the FDIC, our market
share increased in both the Roebling  marketplace and New Egypt compared to June
30, 2005.

     STOCKHOLDERS'  EQUITY.  Stockholder's equity was $16.4 million at September
30, 2006,  increasing  slightly from $16.0  million at September  30, 2005.  The
largest  components  of the  change in  stockholders'  equity for the year ended
September 30, 2006 include net income of $430,000,  offset by dividends  paid of
$163,000.  The  change  in the  unrealized  gain or  loss on  available-for-sale
securities,  adjusted  for deferred  income  taxes,  added  $29,000 to equity in
fiscal  2006.  During  the same  period,  equity  increased  by $8,000  with the
issuance of 2,214 shares upon the exercise of stock options at an exercise price
of $3.595 per share,  and decreased by $71,000 with

                                       8
<PAGE>

purchases of shares for the restricted stock plan. In addition, the amortization
of ESOP  shares,  the  allocation  of  restricted  stock plan shares and the tax
benefit  associated with stock benefit plans added $98,000,  $24,000 and $6,000,
respectively, to stockholders' equity in the same time period.

AVERAGE BALANCE SHEET, INTEREST RATES AND YIELDS

         The  following  tables set forth  certain  information  relating to our
average  balance sheet and reflects the average yield on assets and average cost
of liabilities for the periods  indicated.  Such yields and costs are derived by
dividing  income or expense  by the  average  balance of assets or  liabilities,
respectively, for the periods presented.
<TABLE>
<CAPTION>
                                           FOR THE YEAR ENDED SEPTEMBER 30,     FOR THE YEAR ENDED SEPTEMBER 30,
                                           --------------------------------    -----------------------------------
                                                        2006                                 2005
                                          ----------------------------------   -----------------------------------
                                           AVERAGE                 AVERAGE      AVERAGE                  AVERAGE
                                           BALANCE    INTEREST    YIELD/COST    BALANCE    INTEREST    YIELD/COST
                                           -------    --------    ----------    -------    --------    ----------
                                                      (ACTUAL)                             (ACTUAL)
                                             (DOLLARS IN THOUSANDS)                 (DOLLARS IN THOUSANDS)
<S>                                         <C>          <C>            <C>      <C>          <C>            <C>
Interest-earning assets:
 Loans receivable (1)                       $ 85,134     $5,629         6.61%    $ 68,318     $4,019         5.88%
 Investment securities                        26,749        974         3.64       29,355      1,025         3.49
 Other interest-earning assets (2)               974         47         4.83        1,535         73         4.76
                                            --------     ------         ----     --------     ------         ----
  Total interest-earning assets              112,857     $6,650         5.89       99,208     $5,117         5.16
                                                         ------                               ------
Non-interest-earning assets                    5,803                                5,014
                                            --------                             --------
  Total assets                              $118,660                             $104,222
                                            ========                             ========

Interest-bearing liabilities:
 Interest-bearing checking                  $ 10,395       $ 22         0.21%    $ 11,779     $   19         0.16%
 Savings accounts                             20,898        119         0.57       22,693        125         0.55
 Money market accounts                         7,706        193         2.51        6,380         73         1.14
 Certificates of deposit                      38,336      1,449         3.78       28,274        789         2.79
 Borrowings                                   10,010        429         4.29        5,598        212         3.79
                                            --------     ------         ----     --------     ------         ----
  Total interest-bearing liabilities          87,345     $2,212         2.53       74,724     $1,218         1.63
                                                         ------                               ------
Non-interest-bearing liabilities (3)          15,191                               13,687
                                            --------                             --------
  Total liabilities                          102,536                               88,411
Stockholders' equity                          16,124                               15,811
                                            --------                             --------
 Total liabilities and stockholders'
   equity                                   $118,660                             $104,222
                                            ========                             ========
Net interest income                                      $4,438                               $3,899
                                                         ======                               ======
Interest rate spread (4)                                                3.36%                                 3.53%
Net interest margin (5)                                                 3.93%                                 3.93%
Ratio of average interest-earning assets
  to average interest-bearing                                         129.21%                               132.77%
liabilities
<FN>
---------------------------------
(1)  Average  balances  include  non-accrual  loans.  Interest  income  includes
     amortization  of net deferred loan fees and (costs) of $63,550 and $119 for
     the fiscal years 2006 and 2005, respectively.
(2)  Includes interest-bearing deposits in other financial institutions and FHLB
     stock. Tax exempt interest is not presented on a taxable equivalent basis.
(3)  Includes   average   non-interest-bearing   deposits  of  $14,359,000   and
     $12,944,000 for the years ended September 30, 2006 and 2005, respectively.
(4)  Interest rate spread represents the difference between the average yield on
     interest-earning   assets  and  the   average   cost  of   interest-bearing
     liabilities.
(5)  Net  interest  margin  represents  net interest  income as a percentage  of
     average interest-earning assets.
</FN>
</TABLE>

                                       9
<PAGE>
     RATE/VOLUME ANALYSIS

     The table below sets forth  certain  information  regarding  changes in our
interest  income  and  interest  expense  for the  periods  indicated.  For each
category of interest-earning assets and interest-bearing  liabilities, the table
distinguishes  between (i) changes  attributable  to volume  (changes in average
volume  multiplied by prior period's  rate);  and (ii) changes  attributable  to
rates (changes in rate multiplied by old average  volume).  For purposes of this
table, the net change attributable to the combined impact of rate and volume has
been allocated proportionally to the absolute dollar amounts of change in each.
<TABLE>
<CAPTION>
                                          YEAR ENDED SEPTEMBER 30,                  YEAR ENDED SEPTEMBER 30,
                                   ----------------------------------            ------------------------------
                                               2006  VS. 2005                           2005  VS. 2004
                                   ----------------------------------            ------------------------------
                                            INCREASE (DECREASE)                           INCREASE (DECREASE)
                                                DUE TO                                         DUE TO
                                                ------                                         ------
                                     VOLUME      RATE        NET                  VOLUME     RATE       NET
                                     ------      ----        ---                  ------     ----       ---
                                                                         (In thousands)
<S>                                  <C>            <C>       <C>                   <C>         <C>       <C>
Interest-earning assets:
 Loans receivable                    $1,071         $539      $1,610                $510       $ 43       $553
 Investment securities                  (94)          43         (51)                235         44        279
 Other interest-earning assets          (27)           1         (26)                (33)        39          6
                                     ------         ----      ------                ----       ----       ----
  Total interest-earning assets      $  950         $583      $1,533                $712       $126       $838
                                     ======         ====      ======                ====       ====       ====

Interest-bearing liabilities:
 Interest-bearing checking           $   (2)        $  5      $    3                $ --       $ (2)      $ (2)
 Savings accounts                       (10)           4          (6)                 (3)       (10)       (13)
 Money market accounts                   18                      120                   1         27         28
 Certificates of deposit                331          329         660                  27         91        118
 Borrowings                             186           31         217                 164         31        195
                                     ------         ----      ------                ----       ----       ----
   Total interest-bearing
    liabilities                      $  523         $471      $  994                $189       $137       $326
                                     ======         ====      ======                ====       ====       ====

Net interest income                  $  427         $112      $  539                $523       $(11)      $512
                                     ======         ====      ======                ====       ====       ====
</TABLE>

COMPARISON OF RESULTS OF OPERATIONS  FOR THE YEARS ENDED  SEPTEMBER 30, 2006 AND
2005

     NET INCOME. For the year ended September 30, 2006, the Company reported net
income of $430,000, or $.26 per diluted share, compared to $611,000, or $.38 per
diluted share,  for the prior year. Net interest income after provision for loan
losses   increased,   primarily   as  a  result  of  an   increase   in  average
interest-earning  assets as we are growing the balance sheet.  However, this was
more  than  offset  by  an  increase  in  non-interest  expense,   substantially
attributable to the costs incurred with our two new branches.

     INTEREST INCOME. The average balance of total  interest-earning  assets for
the year ended  September 30, 2006  increased by $13.6  million  compared to the
year ended  September 30, 2005,  while the average yield increased to 5.89% from
5.16%.  The increase in total interest income of $1.5 million for the year ended
September 30, 2006 is comprised  primarily of an increase in interest  income of
$1.6  million on loans  receivable,  offset by  decreases of $76,000 in interest
income on investment securities and other interest-earning  assets. Average loan
receivable  balances increased by $16.8 million for the year ended September 30,
2006 compared to

                                       10
<PAGE>

the same 2005 period, while the average yield increased to 6.61% from 5.88%. For
the year ended September 30, 2006, the average balance of investment  securities
decreased  by $2.6 million  compared to the same 2005 period,  while the average
yield increased to 3.64% from 3.49%.

     INTEREST  EXPENSE.  Interest  expense  increased  by $1.0  million  to $2.2
million for the year ended  September  30,  2006 from $1.2  million for the same
2005 period.  The increase in interest expense was due to an increase in average
interest-bearing  liability  balances of $12.6 million as well as an increase in
the average cost of  interest-bearing  liabilities to 2.53% from 1.63%.  Average
interest-bearing  deposit balances increased by $8.2 million with an increase in
the average  cost to 2.30% for the year ended  September  30,  2006  compared to
1.46% for the same 2005  period,  while  average  borrowings  increased  by $4.4
million, with an increase in the average cost to 4.29% from 3.79%.

     NET INTEREST INCOME. Net interest income increased $539,000 to $4.4 million
for the year ended  September  30,  2006,  compared to $3.9 million for the year
ended September 30, 2005. The Federal Reserve began  tightening  monetary policy
in June, 2004, and increased the Federal Funds rate seventeen times, by 25 basis
points each time, since then, with its most recent tightening in June, 2006. The
yield curve has flattened in that time period,  as  short-term  rates have risen
much more than longer-term rates.  Reflecting the current rate environment,  the
Company's   spread   compressed   slightly,   as  the  average  yield  on  total
interest-earning  assets for the year ended  September 30, 2006  increased by 73
basis points  compared to the year ended  September 30, 2005,  while the overall
cost of funds  increased 90 basis points for the same period.  As a result,  the
interest rate spread  declined by 17 basis  points,  to 3.36% for the year ended
September 30, 2006 compared to 3.53% for the year ended  September 30, 2005. The
net interest margin was unchanged at 3.93% for both periods.

     PROVISION FOR LOSSES ON LOANS.  The provision for loan losses is charged to
operations  to bring  the  total  allowance  for  loan  losses  to a level  that
represents  management's  best estimate of the losses inherent in the portfolio,
based on a review by management of the following factors:

     o    historical experience;
     o    volume;
     o    type of lending conducted by the Bank;
     o    industry standards;
     o    the level and status of past due and non-performing loans;
     o    the general economic conditions in the Bank's lending area; and
     o    other  factors  affecting  the  collectibility  of  the  loans  in its
          portfolio.

     Our methodology for analyzing the allowance for loan losses consists of two
components:  general and specific  allowances.  A general valuation allowance is
determined  by  applying  estimated  loss  factors  to  various  aggregate  loan
categories.  Specific valuation  allowances are created when management believes
that the  collectibility  of a  specific  loan has been  impaired  and a loss is
probable. The allowance level is reviewed on a quarterly basis, at a minimum.

     Determining  the  amount  of the  allowance  for  loan  losses  necessarily
involves a high degree of judgment.  The allowance for loan losses is maintained
at a level that  represents  management's  best  estimate  of losses in the loan
portfolio at the balance sheet date. However, there can be no assurance that the
allowance  for losses will be adequate to cover  losses which may be realized in
the future, and that additional  provisions for losses will not be required.  In
addition,   regulatory   agencies,   as  part  of  their  examination   process,
periodically  review  the  allowance  for  loan  losses  and may  require  us to
recognize  adjustments to the allowance  based on their  judgment  regarding the
adequacy of the allowance for loan losses at the time of their examination.


                                       11
<PAGE>

     The provision for loan losses was $132,000 for the year ended September 30,
2006,  compared  to $89,000 for the same 2005  period.  The  allowance  for loan
losses was $703,000,  or .74% of total loans  outstanding at September 30, 2006,
compared to $573,000,  or .74% of total loans outstanding at September 30, 2005.
The ratio of the allowance for loan losses to non-performing  loans decreased to
1.45 times at September 30, 2006 from 10.16 times at September 30, 2005.

     Non-performing loans,  expressed as a percentage of total loans,  increased
to .37% at September 30, 2006 from .05% at September  30, 2005.  The increase is
primarily  attributable to one $400,000  construction  loan that is more than 90
days delinquent.  Foreclosure proceedings have commenced and we believe the loan
is adequately collateralized.

     NON-INTEREST  INCOME.  Non-interest  income decreased $12,000,  or 2.6%, to
$463,000 for the year ended  September  30, 2006,  compared to $475,000 for same
period in 2005.  The  decrease  in  non-interest  income is  primarily  due to a
decrease in loan fees and late charges, which decreased by $22,000, or 30.5%, to
$52,000 for the year ended  September  30, 2006,  from $74,000 for the same 2005
period.  This decrease is  attributable  to the receipt of a $22,000  prepayment
penalty  in fiscal  2005 upon the payoff of one  commercial  real  estate  loan.
Account  servicing  and other fees  increased by $10,000 or 2.6% to $408,000 for
the year ended September 30, 2006 from $398,000 for the prior year.

     NON-INTEREST EXPENSE. Non-interest expense increased $780,000, or 24.3%, to
$4.0 million for the year ended  September  30, 2006,  from $3.2 million for the
same period in 2005, with the most  significant  increases in  compensation  and
benefits,  occupancy and equipment  expense and other expense.  Compensation and
benefits increased by $539,000 for the year ended September 30, 2006 compared to
the same 2005 period while occupancy and equipment increased by $129,000 for the
year ended September 30, 2006 compared to the same 2005 period.  The majority of
the increase in these  categories is  attributable  to the opening of the Bank's
newest  facilities in Westampton and Delran,  staff additions to accommodate the
continued  growth of the Bank and the cost of new stock benefit plans.  The Bank
relocated  its  former  Loan  Center  office,  as well as  administrative  staff
formerly located in two other offices, to the Westampton facility in the quarter
ended  March  31,  2005,  and also  opened a retail  banking  center in the same
facility in the quarter ended  September  30, 2005.  In addition,  we opened our
fifth retail banking branch in Delran in September, 2006. These are entries into
new  marketplaces  for the Bank,  which we anticipate will enable us to increase
our deposit and lending base. Other expense  increased by $93,000 for year ended
September  30, 2006  compared  to the same 2005  period.  The  increase in other
expense is largely related to costs associated with being a fully public company
as well as the new branch  facilities,  with  increased  marketing and operating
expenditures.  While we expect that the projected growth from these new branches
will  result in  increased  profitability  for the Company  over the  long-term,
expenses will rise in the short-term, with increases in occupancy and equipment,
compensation  and  benefits  and  other  expense.  There  may also be  increased
expenses  in the  future as a result of  additional  awards  that may be granted
under the new stock benefit plans and compliance with the Sarbanes-Oxley Act.

         INCOME  TAXES.  The provision  for income taxes  decreased  $116,000 to
$351,000 for the year ended  September 30, 2006 from $467,000 for the year ended
September 30, 2005. The decrease in tax expense is attributable primarily to the
decrease in pre-tax  earnings.  The effective tax rate  increased to 45% for the
2006 fiscal year from 43% for the 2005 fiscal year.

                                       12
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

     Liquidity is the ability to fund assets and meet  obligations  as they come
due.  Liquidity  risk  is the  risk  of not  being  able to  obtain  funds  at a
reasonable  price  within  a  reasonable   period  of  time  to  meet  financial
commitments  when due. We are required  under federal  regulations to maintain a
sufficient level of liquid assets (including specified short-term securities and
certain  other  investments),  as  determined  by  management  and  reviewed for
adequacy by  regulators  during  examinations.  Roebling Bank is also subject to
federal regulations that impose certain minimum capital  requirements.  See Note
13 to our consolidated financial statements.

     Our  liquidity,  represented  by cash and cash  equivalents  and investment
securities,  is a product of our operating,  investing and financing activities.
Our primary  sources of liquidity are  deposits,  loan and  investment  security
repayments and sales,  and borrowed  funds.  While  scheduled  payments from the
amortization  and  maturity  of  loans,  investment  securities  and  short-term
investments are relatively predictable sources of funds, deposit flows, loan and
mortgage-backed  security  prepayments and investment security calls are greatly
influenced by general interest rates,  economic  conditions and competition.  We
monitor  projected   liquidity  needs  to  ensure  that  adequate  liquidity  is
maintained  on a daily and long-term  basis.  We have the ability to borrow from
the FHLB of New York,  or others,  should the need arise.  As of  September  30,
2006, we had $9.3 million in outstanding borrowings from the FHLB of New York.

     Cash  flows from  financing  activities  increased  by  approximately  $3.9
million during the year ended September 30, 2006 to $17.923 million  compared to
$14.056  million  in the  prior  fiscal  year,  primarily  due to  increases  in
deposits.  The  Company's  primary  use of  cash  was in  investing  activities,
including loan disbursements and purchases of investments securities.  Cash used
in investment  activities  increased  $2.6 million to $18.4 million  compared to
$15.8 million in the prior fiscal year.

OFF-BALANCE SHEET ARRANGEMENTS

     We are a party to financial  instruments with off-balance sheet risk in the
normal  course of business to meet the  financing  needs of our customers and to
reduce  our  exposure  to  fluctuations  in  interest  rates.   These  financial
instruments  include  commitments  to extend  credit  and  involve,  to  varying
degrees,  elements  of credit  and  interest  rate risk in excess of the  amount
recognized in the  statements of financial  condition.  The contract or notional
amounts of those instruments reflect the extent of our involvement in particular
classes of financial instruments.

     Our  exposure  to credit loss in the event of  nonperformance  by the other
party  to  the  financial   instrument  for  commitments  to  extend  credit  is
represented by the contractual notional amounts of those instruments. We use the
same credit policies in making commitments and conditional  obligations as we do
for  on-balance-sheet  instruments.  We generally do not require  collateral  or
other  security to support  financial  instruments  with credit  risk,  with the
exception of letters of credit.

     Commitments  to extend credit are  agreements to lend to a customer as long
as  there  is no  violation  of  any  condition  established  in  the  contract.
Commitments  generally have fixed expiration dates or other termination  clauses
and may require  payment of a fee. Since many of the commitments are expected to
expire  without  being  drawn upon,  the total  commitments  do not  necessarily
represent future cash requirements.  We have approved lines of credit unused but
accessible  to borrowers  totaling  $7.8 million at both  September 30, 2006 and
2005. Our experience has been that  approximately  55% of loan  commitments  are
drawn upon by customers.

                                       13
<PAGE>

     At  September  30, 2006 and 2005,  we had $3.8  million and $8.9 million in
outstanding  commitments  to fund loans and $119,000 and $132,000 in outstanding
commercial   letters  of  credit,   respectively.   There  were  no  outstanding
commitments  to sell loans or purchase  investment  securities  at September 30,
2006.

IMPACT OF INFLATION AND CHANGING PRICES

     The consolidated  financial  statements presented herein have been prepared
in accordance with accounting principles generally accepted in the United States
of America,  which require the  measurement of financial  position and operating
results without considering the change in the relative purchasing power of money
over  time due to  inflation.  The  impact  of  inflation  is  reflected  in the
increased cost of our operations. Unlike industrial companies, nearly all of our
assets and  liabilities are financial in nature.  As a result,  our earnings are
impacted by changes in interest  rates,  which are  influenced  by  inflationary
expectations.  Our  asset/liability  management  strategy  seeks to minimize the
effects of changes in interest rates on our net income.

RECENT ACCOUNTING PRONOUNCEMENTS

     In December 2004, the Financial  Accounting Standards Board ("FASB") issued
Statement  of  Financial   Accounting  Standards  ("SFAS")  No.  123  (revised),
"Share-Based  Payment."  SFAS  No.  123  (revised)  replaces  SFAS  No.  123 and
supersedes  APB  Opinion No. 25. SFAS No. 123  (revised)  requires  compensation
costs  related to  share-based  payment  transactions  to be  recognized  in the
financial  statements  over the  period  that an  employee  provides  service in
exchange for the award.  Public companies are required to adopt the new standard
using a modified prospective method and may elect to restate prior periods using
the  modified  retrospective  method.  Under the  modified  prospective  method,
companies are required to record  compensation  cost for new and modified awards
over  the  related  vesting  period  of such  awards  prospectively  and  record
compensation  cost  prospectively  for  the  unvested  portion  at the  date  of
adoption, of previously issued and outstanding awards over the remaining vesting
period of such awards.  No change to prior periods  presented is permitted under
the  modified  prospective  method.  Under the  modified  retrospective  method,
companies  record  compensation  costs for prior periods  retroactively  through
restatement  of such periods using the exact pro forma amounts  disclosed in the
companies'  footnotes.  Also,  in the period of  adoption  and after,  companies
record compensation cost based on the modified prospective method.

     On April 14,  2005,  the  Securities  and Exchange  Commission  (the "SEC")
adopted a new rule that amends the compliance  dates for SFAS No. 123 (revised).
Under the new rule,  the Company is required to adopt SFAS No. 123  (revised) in
the first annual period beginning after December 15, 2005. Early  application of
SFAS No. 123 (revised) is encouraged, but not required. Accordingly, the Company
is required to record  compensation  expense for all new awards  granted and any
awards modified after October 1, 2006. In addition,  the transition  rules under
SFAS No. 123 (revised) will require that, for all awards  outstanding at October
1, 2006, for which the requisite service has not yet been rendered, compensation
cost will be recorded as such service is rendered after October 1, 2006.

     The pronouncement  related to stock-based payments will not have any effect
on our existing historical  consolidated financial statements and restatement of
previously reported periods will not be required.

     In March 2006, the FASB issued SFAS No. 156,  "Accounting  for Servicing of
Financial  Assets."  SFAS No. 140,  "Accounting  for  Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities,"  establishes,  among other
things,  the  accounting  for all  separately  recognized  servicing  assets and
servicing  liabilities.  SFAS No.  156 amends  SFAS No. 140 to require  that all
separately  recognized  servicing assets and servicing  liabilities be initially
measured at fair  value,  if  practicable.  SFAS No. 156  permits,  but does not

                                       14
<PAGE>

require,  the subsequent  measurement of separately  recognized servicing assets
and servicing  liabilities at fair value. SFAS No. 156 is effective in the first
fiscal year beginning after September 15, 2006 with earlier adoption  permitted.
The  Company  does not  expect the  adoption  of SFAS No. 156 to have a material
impact on its consolidated  financial  condition,  results of operations or cash
flows.

     In  September  2006,  the FASB issued  Statement  of  Financial  Accounting
Standards  SFAS No. 157,  "Fair Value  Measurements,"  which defines fair value,
establishes a framework for measuring  fair value under U.S.  GAAP,  and expands
disclosures  about  fair  value  measurements.  SFAS No.  157  applies  to other
accounting  pronouncements that require or permit fair value  measurements.  The
new  guidance is  effective  for  financial  statements  issued for fiscal years
beginning  after November 15, 2007, and for interim  periods within those fiscal
years. We are currently evaluating the potential impact, if any, of the adoption
of FASB Statement No. 157 on our  consolidated  financial  position,  results of
operations and cash flows.

     In September,  2006, the FASB issued SFAS No. 158,  "Employers'  Accounting
for Defined Benefit Pension and Other  Postretirement  Plans," which amends SFAS
Nos. 87 and 106 to require  recognition of the overfunded or underfunded  status
of pension and other  postretirement  benefit plans on the balance sheet.  Under
SFAS 158, gains and losses,  prior service costs and credits,  and any remaining
transition  amounts under SFAS Nos. 87 and 106 that have not yet been recognized
through net  periodic  benefit  cost will be  recognized  in  accumulated  other
comprehensive  income,  net  of tax  effects,  until  they  are  amortized  as a
component of net periodic  cost.  The  measurement  date - the date at which the
benefit  obligation  and  plan  assets  are  measured  - is  required  to be the
Company's fiscal year end. SFAS 158 is effective for publicly-held companies for
fiscal years ending after  December 15, 2006,  except for the  measurement  date
provisions, which are effective for fiscal years ending after December 15, 2008.
The Company is currently  analyzing  the effects of SFAS 158 but does not expect
its implementation will have a significant impact on the Company's  consolidated
financial conditions or results of operations.

     In September,  2006, the SEC issued Staff Accounting  Bulleting ("SAB") No.
108.  SAB No.  108  provides  interpretive  guidance  on how the  effects of the
carryover  or  reversal  of prior year  misstatements  should be  considered  in
quantifying  a  potential  current  year  misstatement.  Prior  to SAB No.  108,
companies  might evaluate the materiality of  financial-statement  misstatements
using either the income statement or balance approach, with the income statement
approach  focusing  on new  misstatements  added in the  current  year,  and the
balance sheet approach focusing on the cumulative amount of misstatement present
in a company's  balance  sheet.  Misstatements  that would be material under one
approach  could be viewed  as  immaterial  under  another  approach,  and not be
corrected.  SAB No. 108 now requires that  companies  view  financial  statement
misstatements  as material if they are  material  according to either the income
statement  or balance  sheet  approach.  The  Company has  analyzed  SAB 108 and
determined  that  upon  adoption  it  will  have  no  impact  on  the  Company's
consolidated financial conditions or results of operations.

     In July 2006, the FASB issued FASB  Interpretation  No. 48, "Accounting for
Uncertainty in Income Taxes - an  Interpretation of FASB Statement No. 109" (FIN
48),  which  clarifies the accounting  for  uncertainty  in tax positions.  This
Interpretation  requires that companies recognize in their financial  statements
the impact of a tax position,  if that position is more likely than not of being
sustained  on  audit,  based  on  the  technical  merits  of the  position.  The
provisions of FIN 48 are effective for fiscal years beginning after December 15,
2006, with the cumulative effect of the change in accounting  principle recorded
as an adjustment to opening retained earnings.  We are currently  evaluating the
impact of adopting FIN 48 on our consolidated financial statements.

                                       15
<PAGE>
FONTANELLA AND BABITTS
CERTIFIED PUBLIC ACCOUNTANTS

                                                   534 Union Boulevard
                                                   Totowa Boro, New Jersey 07512
                                                   Tel: (973) 595-5300
                                                   Fax: (973) 595-5890


             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
             -------------------------------------------------------



To the Board of Directors
Roebling Financial Corp, Inc. and Subsidiary



We have audited the accompanying  consolidated statements of financial condition
of Roebling  Financial Corp,  Inc. and Subsidiary,  as of September 30, 2006 and
2005, and the related consolidated  statements of income,  comprehensive income,
stockholders' equity and cash flows for the years then ended. These consolidated
financial  statements are the  responsibility of the Company's  management.  Our
responsibility  is  to  express  an  opinion  on  these  consolidated  financial
statements based on our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and  perform  the  audit  to  obtain  reasonable  assurance  about  whether  the
consolidated  financial statements are free of material  misstatement.  An audit
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the  consolidated  financial  statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly, in all material  respects,  the financial position of Roebling Financial
Corp,  Inc. and  Subsidiary,  at September 30, 2006 and 2005, and the results of
their operations and cash flows for the years then ended in conformity with U.S.
generally accepted accounting principles.


                                          /s/ Fontanella and Babitts



December 15, 2006


                                       16
<PAGE>
                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                 ----------------------------------------------
<TABLE>
<CAPTION>
                                                                          September 30,
                                                                ------------------------------
                                                                     2006             2005
                                                                -------------    -------------
<S>                                                             <C>              <C>         <C>
Assets
------

Cash and due from banks                                         $   2,777,702    $   2,427,721
Interest-bearing deposits                                             602,543          647,361
                                                                -------------    -------------
              Total cash and cash equivalents                       3,380,245        3,075,082

Certificates of deposit                                                    --          300,000
Securities available for sale                                      27,206,912       27,160,135
Securities held to maturity; approximate fair value of
  $397,000 (2006) and $565,000 (2005) respectively                    395,448          557,503
Loans receivable, net                                              94,013,947       76,550,816
Accrued interest receivable                                           646,733          476,741
Federal Home Loan Bank of New York stock, at cost                     575,400          601,600
Premises and equipment                                              3,832,656        2,765,730
Other assets                                                          555,193          371,602
                                                                -------------    -------------
              Total assets                                      $ 130,606,534    $ 111,859,209
                                                                =============    =============
Liabilities and stockholders' equity
------------------------------------

Liabilities
-----------

Deposits                                                        $ 103,682,361    $  84,855,624
Borrowed funds                                                      9,300,000       10,000,000
Advances from borrowers for taxes and insurance                       417,781          395,766
Other liabilities                                                     796,180          559,767
                                                                -------------    -------------
              Total liabilities                                   114,196,322       95,811,157
                                                                -------------    -------------

Commitments and contingencies                                              --               --

Stockholders' equity
--------------------

Serial preferred stock, par value $.10, authorized 5,000,000
 shares, no shares issued                                                  --               --
Common stock; par value $.10; shares authorized and shares
 issued of 20,000,000 and 1,712,259 at September 30, 2006;
 20,000,000 and 1,710,045 at September 30, 2005; respectively         171,226          171,004
Additional paid-in-capital                                         10,354,309       10,326,722
Unallocated employee stock ownership plan shares                     (620,520)        (698,085)
Unallocated restricted stock plan shares                              (54,331)         (14,067)
Retained earnings - substantially restricted                        6,814,613        6,546,979
Accumulated other comprehensive loss - unrealized loss
 on securities available for sale, net of tax                        (255,085)        (284,501)
                                                                -------------    -------------
              Total stockholders' equity                           16,410,212       16,048,052
                                                                -------------    -------------
              Total liabilities and stockholders' equity        $ 130,606,534    $ 111,859,209
                                                                =============    =============
</TABLE>

See accompanying notes to consolidated financial statements.

                                       17
<PAGE>
                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                        ---------------------------------
<TABLE>
<CAPTION>
                                                              Year Ended
                                                             September 30,
                                                       -------------------------
                                                          2006           2005
                                                       ----------     ----------
<S>                                                    <C>            <C>
Interest income:
   Loans receivable                                    $5,628,526     $4,019,378
   Securities                                             974,144      1,024,675
   Other interest-earning assets                           47,487         73,180
                                                       ----------     ----------
              Total interest income                     6,650,157      5,117,233
                                                       ----------     ----------

Interest expense:
   Deposits                                             1,783,601      1,006,388
   Borrowed funds                                         428,797        211,530
                                                       ----------     ----------
              Total interest expense                    2,212,398      1,217,918
                                                       ----------     ----------

Net interest income                                     4,437,759      3,899,315
Provision for loan losses                                 132,000         89,000
                                                       ----------     ----------
              Net interest income after
                provision for loan losses               4,305,759      3,810,315
                                                       ----------     ----------

Non-interest income:
   Loan fees                                               51,537         74,115
   Account servicing and other                            408,340        398,008
   Gain on sale of loans                                    3,051          3,087
                                                       ----------     ----------
              Total non-interest income                   462,928        475,210
                                                       ----------     ----------

Non-interest expense:
   Compensation and benefits                            2,254,220      1,715,093
   Occupancy and equipment                                560,936        431,901
   Service bureau and data processing                     420,902        401,958
   Federal insurance premiums                              11,303         11,328
   Other                                                  740,323        647,378
                                                       ----------     ----------
              Total non-interest expense                3,987,684      3,207,658
                                                       ----------     ----------

Income before income taxes                                781,003      1,077,867
Income taxes                                              350,600        466,764
                                                       ----------     ----------
              Net income                               $  430,403     $  611,103
                                                       ==========     ==========

Basic earnings per share                               $     0.26     $     0.38
                                                       ==========     ==========

Diluted earnings per share                             $     0.26     $     0.38
                                                       ==========     ==========

Weighted average shares
  outstanding - basic                                   1,632,681      1,612,531
                                                       ==========     ==========
Weighted average shares
  outstanding - diluted                                 1,641,774      1,624,133
                                                       ==========     ==========
</TABLE>

See accompanying notes to consolidated financial statements.

                                       18
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                 -----------------------------------------------
<TABLE>
<CAPTION>
                                                              Year Ended
                                                             September 30,
                                                       -------------------------
                                                          2006           2005
                                                       ----------     ----------
<S>                                                    <C>            <C>
Net income                                              $ 430,403     $ 611,103

Other comprehensive income,
  net of income taxes:
      Unrealized holding gains (losses) on
         securities available for sale, net of
         income taxes (benefit) of $19,562
         and $(238,011), respectively                      29,416      (357,910)
                                                        ---------     ---------
Comprehensive income                                    $ 459,819     $ 253,193
                                                        =========     =========
</TABLE>

See accompanying notes to consolidated financial statements.


                                       19
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                 -----------------------------------------------
<TABLE>
<CAPTION>
                                                                                                        Accumulated
                                                   Additional     Unallocated  Unallocated                  Other
                                      Common        Paid-in         ESOP         RSP       Retained    Comprehensive
                                       Stock        Capital        Shares       Shares     Earnings    Income (Loss)     Total
                                       -----        -------        ------       ------     --------    -------------     -----
<S>                                  <C>        <C>            <C>          <C>        <C>           <C>            <C>
Balance - September 30, 2004         $168,740   $10,151,118    $(775,650)   $      -   $5,935,876    $  73,409      $15,553,493

Net income                                  -             -            -           -      611,103            -          611,103

Amortization of ESOP shares                 -        11,211       77,565           -            -            -           88,776

Change in unrealized gain
 (loss) on securities available
 for sale, net of tax                       -             -            -           -            -     (357,910)        (357,910)

Exercise of stock options               2,264        79,133            -           -            -            -           81,397

Common stock acquired by RSP                -          (660)           -     (20,498)           -            -          (21,158)

Allocation of RSP shares                    -            -             -       6,431            -            -            6,431

Tax benefit of stock benefit plans          -       85,920             -           -            -            -           85,920
                                     --------   -----------    ---------    --------   ----------    ---------      -----------
Balance - September 30, 2005          171,004    10,326,722     (698,085)    (14,066)   6,546,979     (284,501)      16,048,052

Dividends paid on common stock              -             -            -           -     (162,769)           -         (162,769)

Net income                                  -             -            -           -      430,403            -          430,403

Amortization of ESOP shares                 -        20,167       77,565           -            -            -           97,732

Change in unrealized gain
 (loss) on securities available
 for sale, net of tax                       -             -            -           -            -       29,416           29,416

Exercise of stock options                 222         7,738            -           -            -            -            7,960

Common stock acquired by RSP                -        (6,645)           -     (64,226)           -            -          (70,871)

Allocation of RSP shares                    -             -            -      23,962            -            -           23,962

Tax benefit of stock benefit plans          -         6,327            -           -            -            -            6,327
                                     --------   -----------    ---------    --------   ----------    ---------      -----------
Balance - September 30, 2006         $171,226   $10,354,309    $(620,520)   $(54,331)  $6,814,613    $(255,085)     $16,410,212
                                     ========   ===========    =========    ========   ==========    =========      ===========
</TABLE>

See accompanying notes to consolidated financial statements.

                                       20
<PAGE>
                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
<TABLE>
<CAPTION>
                                                                                          Year Ended
                                                                                         September 30,
                                                                                -------------------------------
                                                                                    2006                2005
                                                                                ------------       ------------
<S>                                                                                <C>                <C>
Cash flows from operating activities:
   Net income                                                                   $    430,403       $    611,103
   Adjustments to reconcile net income to
    net cash provided by operating activities:
       Depreciation                                                                  279,232            192,229
       Amortization of premiums and discounts, net                                     9,514             13,459
       Amortization of deferred loan fees and costs, net                             (63,550)              (119)
       Provision for loan losses                                                     132,000             89,000
       Origination of loans held for sale, net of repayments                      (1,806,289)          (839,294)
       Gain on sale of loans                                                          (3,251)            (3,087)
       Proceeds from sale of loans held for sale                                   1,809,540            990,381
       Increase in other assets                                                     (198,641)           (33,301)
       Increase in accrued interest receivable                                      (169,992)           (88,328)
       Increase in other liabilities                                                 238,228            109,561
       Amortization/allocation of ESOP and RSP                                       121,694             95,207
                                                                                ------------       ------------
              Net cash provided by operating activities                              778,888          1,136,811
                                                                                ------------       ------------

Cash flows from investing activities:
   Proceeds from maturities of certificates of deposit                               300,000            900,000
   Purchase of securities available for sale                                      (2,969,147)        (8,756,318)
   Proceeds from payments and maturities of
    securities available for sale                                                  2,962,085          5,158,896
   Proceeds from payments and maturities
    of securities held to maturity                                                   161,804            421,826
   Loan disbursements, net of principal repayments                               (17,531,581)       (12,263,436)
   Redemption (purchase) of Federal Home Loan Bank Stock                              26,200            (43,700)
   Purchase of premises and equipment                                             (1,346,158)        (1,231,584)
                                                                                ------------       ------------
              Net cash used in investing activities                              (18,396,797)       (15,814,316)
                                                                                ------------       ------------

</TABLE>

See accompanying notes to consolidated financial statements.

                                       21
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT'D)
                 ----------------------------------------------
<TABLE>
<CAPTION>
                                                                                          Year Ended
                                                                                         September 30,
                                                                                -------------------------------
                                                                                    2006                2005
                                                                                ------------       ------------
<S>                                                                                <C>                <C>
Cash flows from financing activities:
    Net increase in deposits                                                      18,826,737          5,038,486
    Net (decrease) increase in short-term borrowed funds                            (700,000)         2,000,000
    Proceeds from long-term borrowed funds                                                 -          7,000,000
    Increase (decrease) in advance payments by borrowers
      for taxes and insurance                                                         22,015            (42,860)
    Dividends paid                                                                  (162,769)                 -
    Purchase of common shares by RSP                                                 (70,871)           (21,158)
    Proceeds from exercise of stock options                                            7,960             81,397
                                                                                 -----------        -----------
              Net cash provided by financing activities                           17,923,072         14,055,865
                                                                                 -----------        -----------


Net increase (decrease) in cash and cash equivalents                                 305,163           (621,640)

Cash and cash equivalents - beginning                                              3,075,082          3,696,722
                                                                                 -----------        -----------
Cash and cash equivalents - ending                                               $ 3,380,245        $ 3,075,082
                                                                                 ===========        ===========
Supplemental Disclosures of Cash Flow Information

Cash paid for:
    Interest on deposits and borrowed funds                                      $ 2,217,341        $ 1,215,291
                                                                                 ===========        ===========

    Income taxes                                                                 $   442,157        $   360,892
                                                                                 ===========        ===========
</TABLE>

See accompanying notes to consolidated financial statements.


                                       22
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------



1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------

The following is a description of the more significant  accounting policies used
in preparation of the accompanying consolidated financial statements of Roebling
Financial Corp, Inc. and Subsidiary (the "Company").

Principles of Consolidation
---------------------------

The consolidated  financial statements are comprised of the accounts of Roebling
Financial  Corp,  Inc.  and its  wholly-owned  subsidiary,  Roebling  Bank  (the
"Bank").  All  significant  intercompany  accounts  and  transactions  have been
eliminated in consolidation.

Basis of Consolidated Financial Statement Presentation
------------------------------------------------------

The  consolidated  financial  statements  have been prepared in conformity  with
accounting  principles  generally  accepted in the United States of America.  In
preparing the consolidated financial statements,  management is required to make
estimates  and  assumptions  that  affect  the  reported  amount of  assets  and
liabilities as of the date of the statement of financial  condition and revenues
and  expenses  for  the  period  then  ended.   Actual   results   could  differ
significantly  from those  estimates.  Material  estimates that are particularly
susceptible to significant  changes in the near term relate to the determination
of the  allowance for loan losses,  the valuation of foreclosed  real estate and
the assessment of prepayment risks associated with  mortgage-backed  securities.
Management  believes that the allowance for loan losses  considers all known and
inherent losses,  foreclosed real estate is appropriately  valued and prepayment
risks associated with mortgage-backed securities are properly recognized.  While
management  uses  available   information  to  recognize  losses  on  loans  and
foreclosed  real estate,  future  additions to the  allowance for loan losses or
further  writedowns of foreclosed  real estate may be necessary based on changes
in economic conditions in the Company's market area.  Additionally,  assessments
of prepayment risks related to mortgage-backed securities are based upon current
market conditions, which are subject to frequent change.

In  addition,  various  regulatory  agencies,  as  an  integral  part  of  their
examination process, periodically review the Company's allowance for loan losses
and foreclosed  real estate.  Such agencies may require the Company to recognize
additions  to  the  allowance  for  loan  losses  or  additional  writedowns  on
foreclosed real estate based on their judgments about  information  available to
them at the time of their examination.

Concentration of Risk
---------------------

The Company's  lending  activity is concentrated in loans secured by real estate
located in the State of New Jersey.

The  Company's  loan  portfolio  is  predominantly  made  up  of  1-to-4  family
residential mortgage and home equity loans, the majority of which are secured by
properties  located  in  Burlington  County.  These  loans are  secured  by lien
positions  on the  respective  real  estate  properties  and are  subject to the
Company's loan underwriting  policies.  In general, the Company's loan portfolio
performance is dependent upon the local economic conditions.

Interest-Rate Risk
------------------

The Company is principally  engaged in the business of attracting  deposits from
the general public and using these deposits to make loans secured by real estate
and,  to a  lesser  extent,  consumer  and  commercial  loans  and  to  purchase
mortgage-backed and investment securities.  The potential for interest-rate risk
exists as a result of the shorter  duration of the Company's  interest-sensitive
liabilities  compared to the  generally  longer  duration of  interest-sensitive
assets.

In a rising interest rate environment, liabilities will generally reprice faster
than  assets,  and there may be a  reduction  in the market  value of  long-term
assets and net interest income. For this reason,  management  regularly monitors
the maturity and interest-rate structure of the Company's assets and liabilities
in order to  control  its  level of  interest-rate  risk and to plan for  future
volatility.


                                       23
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------



1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
--------------------------------------------

Cash and Cash Equivalents
-------------------------

Cash  and  cash  equivalents  include  cash  and  amounts  due  from  depository
institutions,  interest-bearing accounts and federal funds sold. For the purpose
of the  statements of cash flows,  the Company  considers all highly liquid debt
instruments  with  original  maturities  of  three  months  or  less  to be cash
equivalents.

Investments and Mortgage-backed Securities
------------------------------------------

Debt  securities  over which there exists positive intent and ability to hold to
maturity are classified as held-to-maturity securities and reported at amortized
cost. Debt and equity  securities  that are bought and held  principally for the
purpose of selling them in the near term are  classified  as trading  securities
and reported at fair value, with unrealized holding gains and losses included in
earnings.  Debt and equity securities not classified as trading securities,  nor
as held-to-maturity securities, are classified as available-for-sale  securities
and reported at fair value,  with  unrealized  holding  gains or losses,  net of
deferred income taxes, reported in a separate component of stockholders' equity.

Premiums  and  discounts  on all  securities  are  amortized/accreted  using the
interest  method.  Interest and dividend  income on  securities,  which includes
amortization  of premiums  and  accretion of  discounts,  is  recognized  in the
financial  statements  when  earned.  The adjusted  cost basis of an  identified
security  sold or  called is used for  determining  security  gains  and  losses
recognized in the statements of income.

In December 2003, the Emerging  Issues Task Force issued EITF 03-1, "The Meaning
of Other-Than-Temporary  Impairment and Its Application to Certain Investments."
This  statement  from  the  EITF  addresses  disclosure  requirements  regarding
information  about  temporarily  impaired  investments.   The  requirements  are
effective for fiscal years ending after December 15, 2003, for all entities that
have debt or marketable  equity  securities  with market  values below  carrying
values.  The  requirements  apply to investments  in debt and marketable  equity
securities  that are  accounted  for under  Statement  of  Financial  Accounting
Standards  ("SFAS") No. 115,  "Accounting  for Certain  Investments  in Debt and
Equity Securities."

Loans and Allowance for Loan Losses
-----------------------------------

Loans receivable are stated at unpaid principal balances, less the allowance for
loan losses and net deferred loan origination fees and discounts.

Loan fees and certain direct loan  origination  costs are deferred,  and the net
fee or cost is recognized as an adjustment to interest income using the interest
method over the contractual life of the loans, adjusted for prepayments.

An allowance for loan losses is maintained  at a level  considered  necessary to
provide for loan losses based upon the  evaluation of known and inherent  losses
in the loan portfolio.  Management of the Company,  in determining the allowance
for loan losses,  considers the credit risks  inherent in its loan portfolio and
changes in the nature and volume of its loan activities,  along with the general
economic  and real estate  market  conditions.  The Company  utilizes a two tier
approach: (1) identification of problem loans and establishment of specific loss
allowances on such loans; and (2) establishment of general valuation  allowances
on the  remainder  of its loan  portfolio.  The Company  maintains a loan review
system which allows for a periodic  review of its loan  portfolio  and the early
identification of impaired problem loans. Such system takes into  consideration,
among other things,  delinquency  status,  size of loans, type of collateral and
financial  condition  of the  borrowers.  A loan is deemed to be impaired  when,
based on current information and events, it is probable that the Company will be
unable to collect all amounts due according to the contractual terms of the loan
agreement.  All loans  identified as impaired are evaluated  independently.  The
Company does not aggregate such loans for evaluation  purposes.  Loan impairment
is measured based on the present value of expected future cash flows  discounted
at the loan's  effective  interest  rate or, as a  practical  expedient,  at the
loan's  observable  market price or the fair value of the collateral if the loan
is collateral  dependent.  General loan losses are based upon a  combination  of
factors including, but not limited to, actual loan loss experience,  composition
of the loan portfolio, current economic conditions and management's judgment.

                                       24
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------



1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
---------------------------------------------

Loans and Allowance for Loan Losses (Cont'd)
-----------------------------------

Regardless  of the extent of the  analysis  of customer  performance,  portfolio
evaluations, trends or risk management processes established,  certain inherent,
but undetected  losses are probable  within the loan  portfolio.  This is due to
several factors including inherent delays in obtaining  information  regarding a
customer's  financial  condition or changes in their conditions,  the judgmental
nature  of  individual  loan   evaluations,   collateral   assessments  and  the
interpretation of economic trends,  and the sensitivity of assumptions  utilized
to establish  allocated  allowances for homogeneous groups of loans, among other
factors.  An  unallocated  allowance is maintained to recognize the existence of
these  exposures.  These other  credit risk factors are  regularly  reviewed and
revised by management  where  conditions  indicate that the estimates  initially
applied are different from actual results.

The Company  accounts for its  transfers  and  servicing of financial  assets in
accordance  with SFAS No.  140,  "Accounting  for  Transfers  and  Servicing  of
Financial Assets and  Extinguishments  of Liabilities." SFAS No. 140 revises the
standards  for  accounting  for  the  securitizations  and  other  transfers  of
financial  assets and  collateral.  Transfers of financial  assets for which the
Company has  surrendered  control of the  financial  assets are accounted for as
sales to the extent that  consideration  other than beneficial  interests in the
transferred  assets is received in  exchange.  Retained  interests  in a sale or
securitization  of  financial  assets are  measured  at the date of  transfer by
allocating the previous carrying amount between the assets transferred and based
on their relative  estimated fair values.  The fair values of retained servicing
rights and any other  retained  interests  are  determined  based on the present
value of  expected  future cash flows  associated  with those  interests  and by
reference  to market  prices for  similar  assets.  There were no  transfers  of
financial assets to related or affiliated  parties. As of September 30, 2006 and
2005,  the  Company  has  not  recorded  mortgage  servicing  assets  due to the
immateriality  of the amount  that would  have been  capitalized  based upon the
limited amount of assets secured by the Company.

Uncollected interest on loans that are contractually past due is charged off, or
an allowance is  established  based on  management's  periodic  evaluation.  The
allowance  is  established  by  a  charge  to  interest  income  and  income  is
subsequently  recognized  only to the extent  that cash  payments  are  received
until,  in  management's  judgment,  the  borrower's  ability  to make  periodic
interest  and  principal  payments is  reestablished,  in which case the loan is
returned to accrual status. At a minimum, an allowance is generally  established
for all interest payments that are more than 90 days delinquent.

Premises and Equipment
----------------------

Land is  carried  at cost.  Premises  and  equipment  are  carried  at cost less
accumulated depreciation and amortization. Significant renovations and additions
are capitalized.  When assets are retired or otherwise disposed of, the cost and
related accumulated depreciation are removed from the accounts and any resulting
gain or loss is reflected in income for the period.  The cost of maintenance and
repairs is charged to expense as incurred.  The Company computes depreciation on
a straight-line basis over the estimated useful lives of the assets.

Real Estate Owned
-----------------

Real estate  properties  acquired  through,  or in lieu of, loan foreclosure are
initially  recorded  at  the  lower  of  cost  or  fair  value  at the  date  of
foreclosure.  Costs  relating to  development  and  improvement  of property are
capitalized,  whereas  costs  relating to the holding of property are  expensed.
Subsequent valuations are periodically performed by management, and an allowance
for losses is  established  by a charge to operations if the carrying value of a
property  exceeds its fair value less estimated  selling cost.  Gains and losses
from  sale of  these  properties  are  recognized  as they  occur.  Income  from
operating properties is recorded in operations as earned.

Income Taxes
------------

Federal income taxes and state taxes have been provided on the basis of reported
income.  Deferred  income  taxes are  provided  for certain  items in income and
expense which enter into the  determination  of income for  financial  reporting
purposes in different periods than for income tax purposes.

                                       25
<PAGE>
                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------



1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
---------------------------------------------

Accounting for Stock-Based Compensation
---------------------------------------

SFAS No. 123, "Accounting for Stock-Based Compensation," issued by the Financial
Accounting  Standards  Board  ("FASB"),  establishes  financial  accounting  and
reporting  standards for  stock-based  employee  compensation  plans.  While all
entities are encouraged to adopt the "fair value based method" of accounting for
employee  stock  compensation  plans,  SFAS No.  123 also  allows  an  entity to
continue  to measure  compensation  cost under such plans  using the  "intrinsic
value based method" specified in Accounting Principles Board Opinion ("APB") No.
25.  The  Company  has  elected  to apply  the  intrinsic  value  based  method.
Accordingly,  no  compensation  expense has been recognized for the Stock Option
Plan.

In December  2002,  the FASB issued SFAS No. 148,  "Accounting  for  Stock-Based
Compensation-Transition and Disclosure," which amends SFAS No. 123. SFAS No. 148
amends the disclosure requirements in SFAS No. 123 for stock-based  compensation
for annual  periods  ending  after  December  15, 2002 and for  interim  periods
beginning after December 15, 2002.  These disclosure  requirements  apply to all
companies,  including those that continue to recognize stock-based  compensation
under APB opinion No. 25.

Included  in Note  14 to  consolidated  financial  statements  are the  required
proforma disclosures.

Earnings Per Share
------------------

Basic  earnings per share is computed by dividing net income for the year by the
weighted  average  number of shares of common  stock  outstanding,  adjusted for
unearned shares of the Employee Stock Ownership Plan ("ESOP").  Diluted earnings
per share is computed by  adjusting  the  weighted  average  number of shares of
common stock  outstanding to include the effect of outstanding stock options and
compensation grants, if dilutive, using the treasury stock method.

The following is a summary of the Company's earnings per share calculations:
<TABLE>
<CAPTION>
                                                              Year Ended
                                                             September 30,
                                                      --------------------------
                                                          2006             2005
                                                      ----------      ----------
<S>                                                   <C>             <C>
Net income                                            $  430,403      $  611,103
                                                      ==========      ==========

Weighted average common shares
  outstanding for computation of
  basic EPS (1)                                        1,632,681       1,612,531

Common-equivalent shares due to
  the dilutive effect of stock options
  and RSP awards                                           9,093          11,602
                                                      ----------      ----------
Weighted-average common shares
  for computation of diluted EPS                       1,641,774       1,624,133
                                                      ==========      ==========
Earnings per common share:
   Basic                                              $     0.26      $     0.38
   Diluted                                            $     0.26      $     0.38

<FN>
(1) Excludes unallocated ESOP shares
</FN>
</TABLE>

                                       26
<PAGE>
                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

2.  CERTIFICATES OF DEPOSIT
---------------------------
<TABLE>
<CAPTION>
                                                          September 30,
                                                     ---------------------
                                                      2006           2005
                                                     ------         ------

Maturity
--------
<S>                                                  <C>           <C>
Due within one year                                  $   --        $300,000
                                                     ------        --------
                                                     $   --        $300,000
                                                     ======        ========
</TABLE>

There are no uninsured certificates of deposit included above.

3.  SECURITIES AVAILABLE FOR SALE
---------------------------------
<TABLE>
<CAPTION>
                                                                          September 30, 2006
                                                     -------------------------------------------------------------
                                                                            Gross Unrealized
                                                      Amortized         ------------------------        Estimated
                                                         Cost             Gains          Losses         Fair Value
                                                         ----             -----          ------         ----------
<S>                                                  <C>                 <C>           <C>             <C>
Investment Securities
   U.S. Government and Agency Securities:
      Due within one year                            $ 8,250,000         $    --       $106,597        $ 8,143,403
      Due after one year through five years           11,747,572           1,410        255,781         11,493,201
      Due after five years through ten years           2,250,000          15,705         18,398          2,247,307
   Marketable Equity Securities                            2,888          19,476              -             22,364

Mortgage-backed Securities
   GNMA                                                1,119,535           4,293            320          1,123,508
   FHLMC                                               2,086,704           7,732         29,616          2,064,820
   FNMA                                                2,174,931           2,484         65,106          2,112,309
                                                     -----------         -------       --------        -----------
                                                     $27,631,630         $51,100       $475,818        $27,206,912
                                                     ===========         =======       ========        ===========
<CAPTION>
                                                                          September 30, 2005
                                                     -------------------------------------------------------------
                                                                            Gross Unrealized
                                                      Amortized         ------------------------        Estimated
                                                         Cost             Gains          Losses         Fair Value
                                                         ----             -----          ------         ----------
<S>                                                  <C>                 <C>           <C>             <C>
Investment Securities
   U.S. Government and Agency Securities:
      Due within one year                            $ 1,500,000         $    --       $ 24,870        $ 1,475,130
      Due after one year through five years           19,246,185              --        410,837         18,835,348
      Due after five years through ten years             750,000              --         13,027            736,973
   Marketable Equity Securities                            2,888          14,880             --             17,768

Mortgage-backed Securities
   GNMA                                                1,731,908          10,256            957          1,741,207
   FHLMC                                               1,774,597           5,617         20,645          1,759,569
   FNMA                                                2,628,253           9,303         43,416          2,594,140
                                                     -----------         -------       --------        -----------
                                                     $27,633,831         $40,056       $513,752        $27,160,135
                                                     ===========         =======       ========        ===========
</TABLE>

                                       27
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------


3.  SECURITIES AVAILABLE FOR SALE (CONT'D)
---------------------------------

Securities  available for sale with a carrying value of  approximately  $494,000
and $492,000,  as of September 30, 2006 and 2005,  respectively,  are pledged as
security for  deposits of  governmental  entities  under the  provisions  of the
Governmental  Unit Deposit  Protection Act (GUDPA).  Securities  with a carrying
value of approximately $17,069,000 and $13,707,000 are pledged as collateral for
Federal Home Loan Bank advances as of September 30, 2006 and 2005, respectively.
In addition,  securities  with a carrying  value of  approximately  $483,000 and
$495,000 are pledged as collateral  to the Federal  Reserve Bank as of September
30, 2006 and 2005, respectively.

There  were no sales of  investment  securities  or  mortgage-backed  securities
during the years ended September 30, 2006 and 2005.

Provided  below is a summary of  securities  available for sale which were in an
unrealized loss position at September 30, 2006 and 2005.  Approximately $462,000
or 97% and $111,000 or 22% of the unrealized  loss, as of September 30, 2006 and
2005,  respectively,  was comprised of securities in a continuous  loss position
for twelve months or more.  The Company has the ability and intent to hold these
securities  until  such time as the value  recovers  or the  securities  mature.
Further,  the Company  believes the  deterioration  in value is  attributable to
changes in the market interest rates and not credit quality of the issuer.
<TABLE>
<CAPTION>
                                                                        September 30, 2006
                                               --------------------------------------------------------------
                                                      Under One Year                      One Year or More
                                               ----------------------------     -----------------------------
                                                                   Gross                             Gross
                                               Estimated         Unrealized      Estimated        Unrealized
                                               Fair Value           Loss         Fair Value           Loss
                                               ----------           ----         ----------           ----
<S>                                             <C>               <C>           <C>                 <C>
U.S. Government and Agency Securities           $       --        $    --       $19,616,796         $380,776

Mortgage-backed Securities
    GNMA                                                --             --           391,478              320
    FHLMC                                          300,267          1,801           980,766           27,815
    FNMA                                           722,786         12,492         1,225,794           52,614
                                                ----------        -------       -----------         --------
        Total available for sale                $1,023,053        $14,293       $22,214,834         $461,525
                                                ==========        =======       ===========         ========
<CAPTION>
                                                                        September 30, 2005
                                               --------------------------------------------------------------
                                                      Under One Year                      One Year or More
                                               ----------------------------     -----------------------------
                                                                   Gross                             Gross
                                               Estimated         Unrealized      Estimated        Unrealized
                                               Fair Value           Loss         Fair Value           Loss
                                               ----------           ----         ----------           ----
<S>                                             <C>               <C>           <C>                 <C>
U.S. Government and Agency Securities          $17,143,381         $352,804     $3,904,070          $95,930

Mortgage-backed Securities
    GNMA                                           609,242              957             --               --
    FHLMC                                        1,188,968           20,645             --               --
    FNMA                                         1,255,555           28,303        625,575           15,113
                                               -----------         --------     ----------         --------
        Total available for sale               $20,197,146         $402,709     $4,529,645         $111,043
                                               ===========         ========     ==========         ========
</TABLE>

                                       28
<PAGE>


                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------


4.  SECURITIES HELD TO MATURITY
-------------------------------
<TABLE>
<CAPTION>
                                                                          September 30, 2006
                                                     -----------------------------------------------------------
                                                                            Gross Unrealized
                                                      Amortized      ------------------------        Estimated
                                                         Cost         Gains          Losses         Fair Value
                                                         ----         -----          ------         ----------
<S>                                                  <C>               <C>           <C>             <C>
Investment Securities
   U.S. Government and Agency Securities:
      Due after five through ten years             $ 54,855          $  387          $   --          $ 55,242

Mortgage-backed Securities
   CMO (FNMA)                                        25,432              74              41            25,465
   GNMA                                              58,619             582              --            59,201
   FHLMC                                            103,829             781              --           104,610
   FNMA                                             152,713             899           1,219           152,393
                                                   --------          ------          ------          --------
                                                   $395,448          $2,723          $1,260          $396,911
                                                   ========          ======          ======          ========
<CAPTION>
                                                                          September 30, 2005
                                                     -----------------------------------------------------------
                                                                          Gross Unrealized
                                                      Amortized      ------------------------        Estimated
                                                         Cost         Gains          Losses         Fair Value
                                                         ----         -----          ------         ----------
<S>                                                <C>                 <C>              <C>          <C>
Investment Securities
   U.S. Government and Agency Securities:
      Due after five through ten years             $ 103,964           $ 945            $ --         $ 104,909

Mortgage-backed Securities
   CMO (FNMA)                                         53,175             696              99            53,772
   GNMA                                               96,479           1,323              --            97,802
   FHLMC                                             113,317           1,776              --           115,093
   FNMA                                              190,568           2,951              --           193,519
                                                   ---------         -------            ----         ---------
                                                   $ 557,503         $ 7,691            $ 99         $ 565,095
                                                   =========         =======            ====         =========
</TABLE>


Securities held to maturity with a carrying value of  approximately  $51,000 and
$86,000 are pledged as  collateral  for  Federal  Home Loan Bank  advances as of
September 30, 2006 and 2005, respectively.

                                       29
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

5. LOANS RECEIVABLE, NET
------------------------
<TABLE>
<CAPTION>
                                                                                        September 30,
                                                                                -------------------------------
                                                                                   2006                2005
                                                                                ------------       ------------
<S>                                                                             <C>                <C>
 Mortgage loans:
    One-to-four family residential                                              $ 37,200,342       $ 36,955,559
    Multi-family residential                                                       4,315,504          2,141,296
    Commercial real estate                                                        15,550,275         15,479,371
    Construction and land                                                         18,986,784          8,226,123
                                                                                ------------       ------------
                                                                                  76,052,905         62,802,349
                                                                                ------------       ------------

 Consumer and other loans:
    Home equity                                                                   21,994,906         16,469,391
    Automobile                                                                        25,848             33,846
    Secured by deposits                                                               44,221             38,744
    Unsecured                                                                         68,794             76,237
    Mobile home                                                                       35,876             70,664
    Commercial                                                                     2,756,549          1,578,290
                                                                                ------------       ------------
                                                                                  24,926,194         18,267,172
                                                                                ------------       ------------
               Total loans                                                       100,979,099         81,069,521
                                                                                ------------       ------------

 Less:
    Loans in process                                                               6,256,783          3,919,342
    Net deferred loan origination fees (costs)                                         5,133             26,164
    Allowance for loan losses                                                        703,236            573,199
                                                                                ------------       ------------
                                                                                   6,965,152          4,518,705
                                                                                ------------       ------------
                                                                                $ 94,013,947       $ 76,550,816
                                                                                ============       ============
</TABLE>

At September 30, 2006 and 2005,  non-accrual  loans for which  interest had been
discontinued totaled approximately $434,000 and $58,000, respectively.  Interest
income actually recognized on non-accrual loans totaled approximately $5,100 and
$6,800 for the years ended September 30, 2006 and 2005,  respectively.  Interest
income  that  would  have  been  recognized,  had the  loans  been  current  and
performing in accordance  with the original  terms of their  contracts,  totaled
approximately  $13,100  and $2,700 for the years  ended  September  30, 2006 and
2005, respectively.

Activity in the allowance for loan losses is summarized as follows:
<TABLE>
<CAPTION>
                                                             Year Ended
                                                            September 30,
                                                   ----------------------------
                                                      2006              2005
                                                   ---------          ---------
<S>                                                <C>                <C>
Balance - beginning                                $ 573,199          $ 490,646
Provision charged to income                          132,000             89,000
Charge offs                                           (1,963)            (6,447)
                                                   ---------          ---------
Balance - ending                                   $ 703,236          $ 573,199
                                                   =========          =========
</TABLE>

                                       30
<PAGE>
                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

5. LOANS RECEIVABLE, NET (CONT'D)
------------------------

The activity with respect to loans to directors, officers and associates of such
persons is as follows:
<TABLE>
<CAPTION>
                                                          Year Ended
                                                         September 30,
                                               --------------------------------
                                                  2006                  2005
                                               -----------          -----------
<S>                                            <C>                  <C>
Balance - beginning                            $ 1,017,502          $   762,762
Loan disbursements                                 154,700              366,243
Collection of principal                           (195,902)            (111,503)
Other changes                                      (60,976)                  --
                                               -----------          -----------
Balance - ending                               $   915,324          $ 1,017,502
                                               ===========          ===========
</TABLE>

6. ACCRUED INTEREST RECEIVABLE
------------------------------
<TABLE>
<CAPTION>
                                                         September 30,
                                               --------------------------------
                                                  2006                  2005
                                               -----------          -----------
<S>                                            <C>                  <C>
Loans receivable                                $423,759             $258,069
Mortgage-backed securities                        22,140               23,665
Investment securities                            200,834              195,007
                                                --------             --------
                                                $646,733             $476,741
                                                ========             ========
</TABLE>

7. PREMISES AND EQUIPMENT
-------------------------
<TABLE>
<CAPTION>
                                                         September 30,
                                               --------------------------------
                                                  2006                  2005
                                               -----------          -----------
<S>                                            <C>                  <C>
Land                                            $1,383,450           $1,329,793
Buildings and improvements                       2,586,375            1,516,514
Furniture, fixtures and equipment                1,009,693              949,711
                                                ----------           ----------
                                                 4,979,518            3,796,018

Less accumulated depreciation                    1,146,862            1,030,288
                                                ----------           ----------
                                                $3,832,656           $2,765,730
                                                ==========           ==========
</TABLE>


Useful lives used in the calculation of depreciation are as follows:

         Buildings                                       25 to 50 years
         Paving and other building related  additions     5 to 10 years
         Furniture and equipment                          5 to 10 years

                                       31
<PAGE>
                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

8. LOAN SERVICING
-----------------

Mortgage  loans  serviced  for  others  are  not  included  in the  accompanying
consolidated statements of financial condition. The unpaid principal balances of
these loans are summarized as follows:
<TABLE>
<CAPTION>
                                                         September 30,
                                               ---------------------------------
                                                  2006                   2005
                                               ----------             ----------
<S>                                            <C>                    <C>
 Mortgage loan portfolios
   serviced for:
     FNMA                                      $7,393,563             $7,522,711
     Other                                      1,023,181                188,571
                                               ----------             ----------
                                               $8,416,744             $7,711,282
                                               ==========             ==========
</TABLE>

Custodial escrow balances  maintained in connection with loan servicing  totaled
approximately   $100,000  and   $101,000,   at  September  30,  2006  and  2005,
respectively.

9. DEPOSITS
-----------
<TABLE>
<CAPTION>
                                                                        September 30,
                                                    -------------------------------------------------------
                                                              2006                          2005
                                                    -------------------------    --------------------------
                                                    Weighted                     Weighted
                                                    Average                      Average
                                                      Rate          Amount         Rate            Amount
                                                      ----          ------         ----            ------
<S>                                                  <C>         <C>               <C>          <C>
Non-interest-bearing deposits                        0.00%       $ 16,232,014      0.00%        $13,792,528
Interest-bearing checking accounts                   0.21%          9,340,174      0.21%         11,190,051
Money market accounts                                3.35%          8,746,526      1.82%          6,870,648
Savings accounts                                     0.58%         18,753,895      0.56%         21,952,183
Certificates of deposits                             4.49%         50,609,752      3.26%         31,050,214
                                                                 ------------                   -----------
Total deposits                                       2.60%       $103,682,361      1.51%        $84,855,624
                                                                 ============                   ===========
</TABLE>


Deposit  accounts  with  balances  of  $100,000  or more  totaled  approximately
$23,348,000  and  $18,854,000  at  September  30,  2006 and 2005,  respectively.
Deposit  balances  in excess of $100,000  are not  federally  insured,  with the
exception of IRA's, which are insured to $250,000.

Scheduled maturities of certificates of deposit are as follows (in thousands):
<TABLE>
<CAPTION>
                                                             September 30,
                                                       -------------------------
                                                         2006             2005
                                                       -------           -------
<S>                                                    <C>               <C>
1 year or less                                         $43,064           $15,814
Over 1 year to 3 years                                   4,923            11,013
Over 3 years                                             2,623             4,223
                                                       -------           -------
                                                       $50,610           $31,050
                                                       =======           =======
</TABLE>

                                       32
<PAGE>
                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------



9. DEPOSITS (CONT'D)
-----------

Interest expense on deposits is summarized as follows:
<TABLE>
<CAPTION>
                                                              Year Ended
                                                            September 30,
                                                     ---------------------------
                                                        2006             2005
                                                     ----------       ----------
<S>                                                  <C>              <C>
Interest-bearing checking accounts                   $   22,215       $   18,609
Money market accounts                                   193,496           73,104
Savings accounts                                        118,605          125,052
Certificates of deposit                               1,449,285          789,623
                                                     ----------       ----------
      Total                                          $1,783,601       $1,006,388
                                                     ==========       ==========
</TABLE>

10. BORROWED FUNDS
------------------

The Company has available  overnight  lines of credit and a one-month  overnight
repricing  line of credit with the Federal Home Loan Bank of New York  ("FHLB"),
totaling  $18.6  million  and $21.1  million  at  September  30,  2006 and 2005,
respectively,  subject to the terms and  conditions  of the  lender's  overnight
advance  program.  As of  September  30,  2006 and 2005,  the Company had a $1.3
million and a $2.0  million  balance,  respectively,  in the  overnight  line of
credit at a rate of 5.55% and 4.11%, respectively.

At September 30, 2006 and 2005, fixed rate advances have contractual  maturities
as follows:
<TABLE>
<CAPTION>
                                            September 30, 2006                  September 30, 2005
                                    ------------------------------        -------------------------------
                                                          Weighted                              Weighted
                                                          Average                               Average
                                        Amount             Rate              Amount              Rate
                                        ------             ----              ------              ----
<S>                                 <C>                     <C>          <C>                      <C>
  Due By September 30,
--------------------------

          2007                      $ 1,000,000             3.09%        $ 1,000,000              3.09%
          2008                        2,000,000             3.98%          2,000,000              3.98%
          2009                        1,000,000             4.41%          1,000,000              4.41%
          2010                        4,000,000             4.43%          4,000,000              4.43%
                                    -----------                          -----------
                                    $ 8,000,000             4.15%        $ 8,000,000              4.15%
                                    ===========                          ===========
</TABLE>

At September 30, 2006 and 2005, the FHLB  borrowings  were secured by pledges of
the Company's  investment in the capital stock of the FHLB totaling $575,400 and
$601,600  and  mortgage-backed  and other  securities  with a carrying  value of
approximately $17.1 million and $13.8 million, respectively.

                                       33
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

11. INCOME TAXES
----------------

The Bank qualifies as a savings institution under the provisions of the Internal
Revenue Code and was therefore, prior to September 30, 1996, permitted to deduct
from  taxable  income an  allowance  for bad debts  based upon eight  percent of
taxable  income  before  such  deduction,  less  certain  adjustments.  Retained
earnings, at September 30, 2006 and 2005, include approximately $306,000 of such
bad debt,  which,  in accordance  with FASB Statement No. 109,  "Accounting  for
Income Taxes," is considered a permanent  difference between the book and income
tax  basis  of  loans  receivable,  and for  which  income  taxes  have not been
provided.  If such amount is used for  purposes  other than for bad debt losses,
including distributions in liquidation,  it will be subject to income tax at the
then current rate.

The components of income taxes are summarized as follows:
<TABLE>
<CAPTION>
                                                              Year Ended
                                                            September 30,
                                                     ---------------------------
                                                        2006             2005
                                                     ---------         ---------
<S>                                                  <C>               <C>
 Current tax expense:
   Federal                                           $ 314,253         $ 347,006
   State                                                90,311            98,063
                                                     ---------         ---------
                                                       404,564           445,069
                                                     ---------         ---------

Deferred tax expense (benefit):
   Federal                                             (42,498)           13,255
   State                                               (11,466)            8,440
                                                     ---------         ---------

                                                       (53,964)           21,695
                                                     ---------         ---------
                                                     $ 350,600         $ 466,764
                                                     =========         =========
</TABLE>

The  provision  for income  taxes  differs  from that  computed  at the  federal
statutory rate of 34% as follows:
<TABLE>
<CAPTION>

                                                              Year Ended
                                                             September 30,
                                                        -----------------------
                                                          2006           2005
                                                        --------       --------
<S>                                                     <C>            <C>
Tax at federal statutory rates                          $265,541       $366,475

Increase in tax resulting from:
   State taxes, net of federal tax effect                 52,038         70,292
   Other items                                            33,021         29,997
                                                        --------       --------
                                                        $350,600       $466,764
                                                        ========       ========

Effective rate                                             45%            43%
                                                        ========       ========
</TABLE>

                                       34
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------


11. INCOME TAXES (CONT'D)
----------------

The  following  temporary  differences  gave rise to  deferred  tax  assets  and
liabilities:
<TABLE>
<CAPTION>
                                                                                       September 30,
                                                                                --------------------------
                                                                                  2006             2005
                                                                                ---------        ---------
<S>                                                                             <C>              <C>
 Deferred tax assets:
    Allowance for loan losses                                                   $ 280,872        $ 228,214
    Depreciation of securities available for sale                                 169,632          189,194
                                                                                ---------        ---------
               Total deferred tax assets                                          450,504          417,408
                                                                                ---------        ---------

 Deferred tax liabilities:
    Depreciation                                                                   32,969           26,343
    Accrual to cash adjustments                                                    33,397           37,634
    Deferred loan origination fees and costs, net                                  82,889           87,138
    Discounts on investments                                                        7,798            7,244
                                                                                ---------        ---------
               Total deferred tax liabilities                                     157,053          158,359
                                                                                ---------        ---------
    Net deferred tax asset included in other assets                             $ 293,451        $ 259,049
                                                                                =========        =========
</TABLE>

12. COMMITMENTS AND CONTINGENCIES
---------------------------------

The Company is a party to financial instruments with  off-balance-sheet  risk in
the normal course of business to meet the  financing  needs of its customers and
to reduce its own exposure to fluctuations  in interest  rates.  These financial
instruments include commitments to extend credit.  Those instruments involve, to
varying  degrees,  elements  of credit and  interest-rate  risk in excess of the
amount  recognized  in the  statements of financial  condition.  The contract or
notional  amounts  of those  instruments  reflect  the  extent of the  Company's
involvement in particular classes of financial instruments.

The  Company's  exposure  to credit loss in the event of  nonperformance  by the
other party to the  financial  instrument  for  commitments  to extend credit is
represented by the contractual notional amount of those instruments. The Company
uses the same credit policies in making commitments and conditional  obligations
as it does for on-balance-sheet instruments.

With the exception of letters of credit, the Company does not require collateral
or other  security to support  financial  instruments  with credit risk,  unless
noted otherwise.

Commitments  to extend  credit are  agreements  to lend to a customer as long as
there is no violation of any condition established in the contract.  Commitments
generally  have fixed  expiration  dates or other  termination  clauses  and may
require  payment of a fee. Since many of the  commitments are expected to expire
without  being  drawn  upon,  the total  commitment  amounts do not  necessarily
represent  future cash  requirements.  The Company has approved  lines of credit
unused but  accessible to borrowers  totaling $7.8 million and $7.8 million,  at
September 30, 2006 and 2005,  respectively.  The Company's  experience  has been
that approximately 55 percent of loan commitments are drawn upon by customers.

At September 30, 2006 and 2005, the Company had $3.8 million and $8.9 million in
outstanding  commitments  to fund loans and $119,000 and $132,000 in outstanding
commercial   letters  of  credit,   respectively.   There  were  no  outstanding
commitments to sell loans or to purchase investment  securities at September 30,
2006 or 2005.

                                       35
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------


13. REGULATORY CAPITAL
----------------------

The Bank is subject to various regulatory capital  requirements  administered by
the federal banking agencies.  Failure to meet minimum capital  requirements can
initiate certain mandatory,  and possible additional  discretionary  actions, by
regulators,  that if  undertaken,  could  have a direct  material  effect on the
Bank's  financial   statements.   Under  capital  adequacy  guidelines  and  the
regulatory  framework for prompt corrective  action, the Bank must meet specific
capital  guidelines  that involve  quantitative  measures of the Bank's  assets,
liabilities, and certain off-balance-sheet items, as calculated under regulatory
accounting  practices.  The Bank's capital amounts and  classification  are also
subject to  qualitative  judgments  by the  regulators  about  components,  risk
weightings and other factors.

Quantitative  measures  established  by  regulation to ensure  capital  adequacy
require  the Bank to  maintain  minimum  amounts  and  ratios  (set forth in the
following table) of tangible and core capital (as defined in the regulations) to
total  assets and of total  risk-based  capital (as  defined)  to  risk-weighted
assets (as defined).  Management  believes,  as of September 30, 2006,  that the
Bank meets all capital adequacy requirements to which it is subject.

As of  February  2006,  the most recent  notification  from the Office of Thrift
Supervision  (OTS)  categorized  the  Bank  as  "well   capitalized"  under  the
regulatory  framework for prompt  corrective  action. To be categorized as "well
capitalized,"  the Bank must maintain  minimum total risk-based and core ratios,
as set forth in the accompanying  table. There are no conditions or events since
that  notification  that  management  believes  have  changed the  institution's
category.

The following table presents a reconciliation of capital per GAAP and regulatory
capital at the dates indicated (in thousands):
<TABLE>
<CAPTION>
                                                                                     September 30,
                                                                                ------------------------
                                                                                  2006            2005
                                                                                --------        --------
<S>                                                                             <C>             <C>
GAAP capital                                                                    $ 12,016        $ 11,530
Add (subtract): unrealized (gain) loss
                          on securities available for sale                           255             285
                                                                                --------        --------

Core and tangible capital                                                         12,271          11,815
Add: general allowance for loan losses                                               703             571
         Unrealized gains on equity securities
          available for sale                                                           9               7
                                                                                --------        --------
Total risk-based capital                                                        $ 12,983        $ 12,393
                                                                                ========        ========
</TABLE>

                                       36

<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

13. REGULATORY CAPITAL (CONT'D)
----------------------

The Bank's  actual  capital  amounts and ratios are  presented in the  following
table:
<TABLE>
<CAPTION>
                                                                                                 To be Well-
                                                                                              Capitalized Under
                                                                      For Capital             Prompt Corrective
                                            Actual                Adequacy Purposes           Action Provisions
                                    --------------------        ---------------------       --------------------
                                    Amount         Ratio        Amount         Ratio        Amount         Ratio
                                    ------         -----        ------         -----        ------         -----
                                                               (Dollars in thousands)
<S>                               <C>              <C>         <C>             <C>         <C>             <C>
As of September 30, 2006
    Tangible capital              $ 12,271         9.37%       $ 1,965         1.50%          N/A              -
    Tier 1 (core) capital           12,271         9.37%         5,241         4.00%       $ 6,551         5.00%
    Risk-based capital:
        Tier 1                      12,271        14.15%         3,469         4.00%         5,203         6.00%
        Total                       12,983        14.97%         6,938         8.00%         8,672        10.00%

As of September 30, 2005
    Tangible capital              $ 11,815        10.52%       $ 1,685         1.50%          N/A              -
    Tier 1 (core) capital           11,815        10.52%         4,494         4.00%       $ 5,618         5.00%
    Risk-based capital:
        Tier 1                      11,815        17.13%         2,759         4.00%         4,139         6.00%
        Total                       12,393        17.97%         5,518         8.00%         6,898        10.00%
</TABLE>


14. BENEFIT PLANS
-----------------

Deferred Compensation Plan
--------------------------

The Company  maintains a deferred  compensation  plan for both the directors and
employees.

The  directors'  arrangement is an individual  contract  between the Company and
each  participating  director and can be terminated  at any time.  Directors may
participate at their own discretion.  The Company secures each separate deferred
compensation agreement by purchasing an investment grade life insurance contract
on each participating director. The Company is the owner and beneficiary of each
contract.  The use of the investment  grade  insurance  contracts as the funding
source of the program allows the Company to take advantage of  preferential  tax
treatment provided to insurance  contracts  qualified under IRS Sections 101 and
7702.

The employees'  arrangement meets the requirements of Sections 401(a) and 401(k)
of the Internal Revenue Code. Employees generally become eligible when they have
attained age 21 and have one year of service. Each participant may elect to have
his  compensation  reduced  by up to the  maximum  amount  allowed  by law.  The
reduction is contributed to the plan. During 2006, the Company  contributed 100%
of the first 3% of  participants'  contributions  and 50% of the next 2%,  for a
maximum match of 4%. All participants become 100% vested upon entering the plan.
Contributions  to the plan by the  Company  totaled  approximately  $38,000  and
$32,600 for the years ended September 30, 2006 and 2005, respectively.

Directors Consultation and Retirement Plan
------------------------------------------

The Company  maintains a Directors  Consultation  and Retirement Plan ("DRP") to
provide retirement  benefits to directors of the Company who are not officers or
employees  ("Outside  Directors").  Any  director  who has  served as an Outside
Director  shall be a participant in the DRP, and payments under the DRP commence
once the Outside Director retires as a director of the Company. The DRP provides
a retirement benefit based on the number of years

                                       37
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------


14. BENEFIT PLANS (CONT'D)
-----------------

Directors Consultation and Retirement Plan (Cont'd)
------------------------------------------

of service to the Company. Outside Directors who have completed not less than 12
years of  service  shall  receive  a benefit  equal to (50%) + 2.889%  times the
number of years of service in excess of 12,  multiplied  by the average  monthly
board fee in effect at the time of retirement.  The maximum benefit shall be 85%
of such monthly board fee.  Benefits shall be paid for a maximum of 84 months to
the retired directors,  a surviving spouse, or the director's estate. The DRP is
an unfunded  nonqualified  pension plan,  which is not  anticipated to ever hold
assets  for  investment.  Any  contributions  made  to the  DRP  will be used to
immediately  pay DRP  benefits as they come due.  The Company does not expect to
make any contributions to the DRP in fiscal 2007.

The  following  table  summarizes   changes  in  the  DRP's  projected   benefit
obligations  and the fair value of the DRP  assets.  The table  also  provides a
reconciliation  of the funded status to the accrued plan cost  recognized in the
consolidated  balance sheets.  The Company uses a measurement date of July 1 for
accounting and disclosure purposes.
<TABLE>
<CAPTION>

                                                       At or for the Year Ending
                                                            September 30,
                                                       -------------------------
                                                          2006           2005
                                                       ---------      ---------
<S>                                                    <C>            <C>
Change in Benefit Obligation:

Benefit obligation at beginning of year                $ 348,054      $ 258,624
    Service cost                                          15,660         11,928
    Interest cost                                         19,940         16,796
    Actuarial (gain) loss                                (27,323)        70,906
    Annuity payments                                      (2,550)       (10,200)
                                                       ---------      ---------
Benefit obligation at end of year                        353,781        348,054
                                                       ---------      ---------

Change in plan assets:

Market value of assets - beginning                            --             --
Employer contributions                                     2,550         10,200
Annuity payments                                          (2,550)       (10,200)
                                                       ---------      ---------
Market value of assets - ending                               --             --
                                                       ---------      ---------

Funded status                                           (353,781)      (348,054)
Amount contributed during fourth quarter                    --            2,550
Unrecognized loss                                         58,729         92,256
Unrecognized past service liability                       42,380         53,188
                                                       ---------      ---------
Accrued plan cost included in
  other liabilities                                    $(252,672)     $(200,060)
                                                       =========      =========
</TABLE>

                                       38
<PAGE>
                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------



14. BENEFIT PLANS (CONT'D)
-----------------

Pension  benefits  expected to be paid for the fiscal years ending  September 30
are $0 in 2007,  $9,000 in 2008,  $11,000 in 2009,  $14,000 in 2010,  $31,000 in
2011 and a total of $244,000 in  2012-2016.  These amounts are based on the same
assumptions  used to measure the benefit  obligation  at September  30, 2006 and
include  estimated future service.  The components of the net periodic plan cost
are as follows:
<TABLE>
<CAPTION>
                                                                  Year Ended
                                                                 September 30,
                                                              ------------------
                                                                2006       2005
                                                              -------    -------
<S>                                                           <C>        <C>
 Net periodic plan cost included
  the following components:
   Service cost                                               $15,660    $11,928
   Interest cost                                               19,940     16,796
   Unrecognized loss                                            6,204         --
   Amortization of unrecognized past service liability         10,808     10,808
                                                              -------    -------
Net periodic plan cost included in
  compensation and benefits                                   $52,612    $39,532
                                                              =======    =======
</TABLE>

A  discount  rate  of  6.625%  and  5.75%  and a  rate  of  increase  in  future
compensation  levels of 5.00% and 4.25% were assumed in the plan  valuation  for
the years ended September 30, 2006 and 2005, respectively.

Stock Option Plan
-----------------

On January 25, 1999,  the  stockholders  of the Company  approved a stock option
plan (the "1999 Plan"),  while on January 30, 2006, the stockholders  ratified a
2006 Stock Option Plan (the "2006 Plan"),  collectively,  the "Plans". The Plans
authorize  the  issuance  of up to  an  additional  77,670  and  91,076  shares,
respectively,  of common stock by the Company upon the exercise of stock options
that may be awarded to officers,  directors,  key  employees,  and other persons
providing services to the Company.  Shares issued on the exercise of options may
be authorized but unissued  shares,  treasury  shares or shares  acquired on the
open market.  The options granted under the Plans  constitute  either  Incentive
Stock Options or Non-Incentive Stock Options. On January 30, 2006, and September
6, 2006,  options to  purchase  54,642 and  58,800  shares,  respectively,  were
granted pursuant to the 2006 Plan. The options were granted at an exercise price
equal to the fair  market  value of the  Company's  common  stock on the date of
grant, expire not more than 10 years after the date of grant and are immediately
exercisable.

The  following  table  summarizes  activity  under the Plans for the years ended
September 30, 2006 and 2005:
<TABLE>
<CAPTION>
                                                                   Year Ended September 30,
                                                     --------------------------------------------------------
                                                           2006                           2005
                                                     ------------------------       -------------------------
                                                                     Weighted                       Weighted
                                                                      Average                        Average
                                                       Number        Exercise         Number        Exercise
                                                     of Shares         Price        of Shares         Price
                                                     ---------         -----        ---------         -----
<S>                                                    <C>            <C>             <C>            <C>
Outstanding at beginning of period                     14,642         $ 3.595         37,284         $ 3.595
Granted                                               113,442          11.412             --              --
Exercised                                              (2,214)          3.595        (22,642)          3.595
Forfeited                                                  --              --             --              --
                                                      -------         -------        -------         -------
Outstanding at end of period                          125,870         $10.641         14,642         $ 3.595
                                                      =======         =======        =======         =======
Options exercisable at period end                     125,870                        14,642
                                                      =======                        ======
</TABLE>

                                       39
<PAGE>
                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------


14. BENEFIT PLANS (CONT'D)
-----------------

Stock Option Plan (Cont'd)
-----------------

The following table summarizes all stock options outstanding as of September 30,
2006, all of which are exercisable:

                                            Weighted Average
      Exercise            Number               Remaining
       Price             of Shares          Contractual Life
       -----             ---------          ----------------

      $ 3.595              12,428             2.4 years
       10.000              54,642             9.3 years
       12.725              58,800             9.9 years

     $ 10.641             125,870             8.9 years



The  Company  accounts  for these Plans under the  recognition  and  measurement
principles of Accounting  Principles Board Opinion No. 25,  Accounting for Stock
Issued to Employees, and related  interpretations.  No compensation cost related
to these Plans is  reflected  in net income,  as all options  granted  under the
Plans had an exercise price equal to the market value of the  underlying  common
stock on the grant  date.  The  following  table  illustrates  the effect on net
income  and  earnings  per  share if the  Company  had  applied  the fair  value
recognition provisions of Financial Accounting Standards Board Statement No. 123
("SFAS No. 123"), Accounting for Stock-Based Compensation, to the option grants:
<TABLE>
<CAPTION>
                                                        Year Ended September 30,
                                                           2006         2005
                                                       -----------   -----------
<S>                                                    <C>           <C>
Net income, as reported                                $   430,403   $   611,103

Deduct: Total stock-based compensation expense
determined under fair value based method for stock
options, net of related tax effects                        296,644            --
                                                       -----------   -----------
Pro forma net income                                   $   133,759   $   611,103
                                                       ===========   ===========
Earnings per common share:
    Basic - as reported                                $      0.26   $      0.38
    Basic - pro forma                                  $      0.08   $      0.38
    Diluted - as reported                              $      0.26   $      0.38
    Diluted  - pro forma                               $      0.08   $      0.38
</TABLE>


The  weighted-average  fair  value of each  option  granted  in 2006  using  the
Black-Scholes  options  pricing model was $4.35.  Significant  weighted  average
assumptions  used in the model  included  a  dividend  yield of 1.00%;  expected
volatility of 39.64%;  risk-free  interest rate of 4.53%, and expected life of 5
years.

Restricted Stock Plan
---------------------

On January 25, 1999, the stockholders of the Company approved a restricted stock
plan (the "1999 Plan"),  while on January 30, 2006, the stockholders  ratified a
2006 Restricted  Stock Plan (the "2006 Plan"),  collectively,  the "Plans".  The
Plans provide for the award of shares of restricted stock to directors, officers
and employees. The 1999 Plan

                                       40
<PAGE>
                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

14. BENEFIT PLANS (CONT'D)
-----------------

Restricted Stock Plan (Cont'd)
---------------------

and the 2006 Plan provide for the purchase of 31,066 and 36,430 shares of common
stock,  respectively,  in the open market to fund such awards. All of the Common
Stock to be  purchased by the Plan will be purchased at the fair market value on
the date of purchase.  Awards under the Plan are made in recognition of expected
future  services to the Company by its  directors,  officers,  and key employees
responsible for implementation of the policies adopted by the Company's Board of
Directors and as a means of providing a further retention  incentive.  Under the
1999 Plan,  18,017  shares  were  awarded in fiscal  1999 while  2,101 and 2,626
shares  were  awarded  in fiscal  2005 and  fiscal  2006,  respectively,  with a
grant-date  fair  value of $9.75 and $9.70 per share,  respectively.  The awards
vest 20% on the date of grant and 20% each of the next four  years.  On  January
30, 2006,  13,110 shares were awarded pursuant to the 2006 Plan. The awards vest
1/3 on the date of grant and 1/3 as of each of the next two years.  Compensation
expense on Plan  shares is  recognized  over the  vesting  periods  based on the
market  value of the stock on the date of grant.  Recipients  of awards  receive
compensation  payments  equal to  dividends  paid  prior to the date of  vesting
within 30 days of each  dividend  payment date.  Plan expense was  approximately
$84,100  and  $6,400  for  the  years  ended   September   30,  2006  and  2005,
respectively.

Employee Stock Ownership Plan
-----------------------------

Effective  upon the  consummation  of the  Bank's  initial  stock  offering,  an
Employee  Stock  Ownership  Plan  ("ESOP")  was  established  for  all  eligible
employees who had completed a  twelve-month  period of employment  with the Bank
and at least 1,000 hours of service,  and had  attained  the age of 21. The ESOP
used  $156,800 in proceeds  from a term loan to purchase  62,149  shares of Bank
common  stock during the stock  offering.  In fiscal  2004,  the ESOP  purchased
72,861 shares of common stock in the second-step conversion with the proceeds of
a $776,000 loan from the Company,  which has a 10-year term and an interest rate
of 4.75%.  $47,000 of the  proceeds  were used to payoff  the prior  outstanding
debt.

Shares purchased with the loan proceeds were initially pledged as collateral for
the  loans  and are held in a  suspense  account  for  future  allocation  among
participants.  Contributions  to the ESOP and shares  released from the suspense
account  are  in an  amount  proportional  to the  loan  repayment.  Shares  are
allocated among the participants on the basis of  compensation,  as described by
the Plan, in the year of allocation.

The ESOP is  accounted  for in  accordance  with  Statement  of  Position  93-6,
"Accounting  for  Employee  Stock  Ownership  Plans,"  which  was  issued by the
American   Institute  of  Certified   Public   Accountants   in  November  1993.
Accordingly,  the ESOP shares  pledged as collateral are reported as unallocated
ESOP shares in the statements of financial condition. As shares are committed to
be released from collateral,  the Bank reports compensation expense equal to the
current market price of the shares,  and the shares become outstanding for basic
net  income  per  common  share  computations.  ESOP  compensation  expense  was
approximately  $98,000 and $89,000  for the years ended  September  30, 2006 and
2005, respectively.

The ESOP shares were as follows, as adjusted for the exchange:
<TABLE>
<CAPTION>
                                                               Year Ended
                                                              September 30,
                                                       -------------------------
                                                         2006            2005
                                                       --------         --------
<S>                                                      <C>              <C>
Allocated shares                                         59,565           50,415
Shares committed to be released                              --               --
Unreleased shares                                        73,204           82,354
                                                       --------         --------
Total ESOP shares                                       132,769          132,769
                                                       ========         ========
Fair value of unreleased shares                        $922,370         $815,310
                                                       ========         ========
</TABLE>

                                       41
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------



15. CHARTER CONVERSION, STOCK OFFERING, AND REORGANIZATION
----------------------------------------------------------

On April 8, 2004, the Boards of Directors of Roebling  Financial Corp., MHC (the
"MHC"),  Roebling  Financial  Corp,  Inc.,  and Roebling  Bank adopted a plan to
convert from the mutual holding  company form of  organization to a fully public
holding company  structure (the  "Conversion").  The former  Roebling  Financial
Corp,  Inc.  was a federally  chartered  mid-tier  mutual  holding  company with
approximately 54% of its stock being held by the MHC and the remaining 46% being
held by public shareholders. The Conversion was completed on September 30, 2004.
At that  time,  the MHC merged  into the Bank,  and no longer  exists.  Roebling
Financial  Corp,  Inc. was  succeeded by a new New Jersey  corporation  known as
Roebling Financial Corp, Inc. Common shares  representing the ownership interest
of the MHC were sold in a subscription offering and a community offering. Common
shares  owned by  public  shareholders  (shareholders  other  than the MHC) were
converted into the right to receive new shares of Roebling  Financial Corp, Inc.
common  stock  determined  pursuant to an exchange  ratio.  The  exchange  ratio
ensured that  immediately  after the Conversion and exchange of existing  shares
for new shares, the public  shareholders owned the same aggregate  percentage of
Roebling  Financial Corp, Inc. common stock that they owned immediately prior to
the Conversion, excluding any shares purchased in the offering.

Roebling  Financial Corp, Inc. sold 910,764 shares of common stock at $10.00 per
share in the offering  completed on September 30, 2004,  including 72,861 shares
purchased by the ESOP.  In addition,  each of the  outstanding  shares of common
stock of Roebling  Financial Corp, Inc. (195,960 shares,  excluding the MHC) was
converted into 3.9636 shares of the new Roebling  Financial Corp, Inc. resulting
in 776,639 outstanding shares. A total of 1,687,403 shares were outstanding as a
result of the offering and share  exchange.  Net cash proceeds from the offering
were as follows (in thousands):


Total cash proceeds (910,764 shares)                             $ 9,108
Offering costs                                                      (648)
                                                                 -------

Net offering proceeds                                              8,460
Assets received from the MHC                                          95
                                                                 -------

Increase in common stock and additional paid-in capital            8,555
Shares purchased by the ESOP (72,861 shares)                        (729)
                                                                 -------
Net cash proceeds                                                $ 7,826
                                                                 =======

The Conversion and related  transactions  were accounted for at historical cost,
with no  resulting  change in the  historical  carrying  amounts  of assets  and
liabilities.  Consolidated  stockholders'  equity  increased  by  the  net  cash
proceeds from the  offering.  Share and per share data for all periods have been
adjusted  to  reflect  the  additional  shares  outstanding  as a result  of the
offering and share exchange.

16. FAIR VALUES OF FINANCIAL INSTRUMENTS
----------------------------------------

The  following  methods and  assumptions  were used by the Company in estimating
fair values of financial instruments as disclosed herein:

Cash and Cash Equivalents and Certificates of Deposit
-----------------------------------------------------

The carrying amounts of cash and short-term  instruments  approximate their fair
value.

Investment and Mortgage-Backed Securities
-----------------------------------------

Fair values for securities, excluding restricted equity securities, are based on
quoted  market  prices.  The carrying  values of  restricted  equity  securities
approximate fair values.

                                       42
<PAGE>
                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------


16. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONT'D)
----------------------------------------

Loans Receivable
----------------

For variable-rate  loans that reprice  frequently and have no significant change
in credit  risk,  fair  values are based on  carrying  values.  Fair  values for
certain  mortgage  loans and  other  consumer  loans are based on quoted  market
prices of similar loans sold in conjunction  with  securitization  transactions,
adjusted for  differences  in loan  characteristics.  Fair values for commercial
real  estate and  commercial  loans are  estimated  using  discounted  cash flow
analyses,  using interest rates  currently  being offered for loans with similar
terms to borrowers of similar credit quality. Fair values for impaired loans are
estimated using discounted cash flow analyses or underlying  collateral  values,
where applicable.

Deposit Liabilities
-------------------

The fair value of demand  deposits,  savings  deposits and money market accounts
were the amounts  payable on demand.  The fair values of certificates of deposit
were based on the discounted  value of contractual cash flows. The discount rate
was estimated using the rate currently offered for deposits of similar remaining
maturities.

Short-Term Borrowings
---------------------

The carrying amounts of federal funds purchased, and other short-term borrowings
maturing  within 90 days  approximate  their fair  values.  Fair values of other
short-term borrowings are estimated using discounted cash flow analyses based on
the Company's current incremental borrowing rates for similar types of borrowing
arrangements.

Long-Term Debt
--------------

The fair  value of  long-term  debt is  estimated  using  discounted  cash  flow
analysis based on the current  incremental  borrowing rates for similar types of
borrowing arrangements.

Accrued Interest Receivable
---------------------------

The carrying amounts of accrued interest approximate their fair values.

Federal Home Loan Bank of New York Stock
----------------------------------------

Federal Home Loan Bank of New York stock is valued at cost.

Off-Balance-Sheet Instruments
-----------------------------

In  the   ordinary   course  of  business   the   Company   has   entered   into
off-balance-sheet  financial  instruments  consisting of  commitments  to extend
credit. Such financial instruments are recorded in the financial statements when
they are funded.  Their fair value would  approximate fees currently  charged to
enter into similar agreements.


                                       43
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------


16. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONT'D)
----------------------------------------


The carrying  values and estimated fair values of financial  instruments  are as
follows (in thousands):
<TABLE>
<CAPTION>
                                                       September 30, 2006         September 30, 2005
                                                  ------------------------      ------------------------
                                                   Carrying         Fair         Carrying         Fair
                                                    Amount         Value          Amount         Value
                                                    ------         -----          ------         -----
<S>                                                <C>            <C>            <C>            <C>
Financial Assets
----------------

Cash and cash equivalents                          $ 3,380        $ 3,380        $ 3,075        $ 3,075
Certificates of deposit                                 --             --            300            300
Securities available for sale                       27,207         27,207         27,160         27,160
Securities held to maturity                            395            397            558            565
Loans receivable                                    94,014         92,536         76,551         75,702
Accrued interest receivable                            647            647            477            477
FHLB stock                                             575            575            602            602

Financial Liabilities
---------------------

Deposits                                           103,682        103,528         84,856          84,601
Borrowed funds                                       9,300          9,143         10,000           9,902
</TABLE>

The fair value  estimates are made at a discrete point in time based on relevant
market information and information about the financial  instruments.  Fair value
estimates are based on judgments  regarding  future  expected  loss  experience,
current  economic   conditions,   risk   characteristics  of  various  financial
instruments,  and other  factors.  These  estimates are subjective in nature and
involve uncertainties and matters of significant judgment and, therefore, cannot
be determined with precision.  Changes in assumptions could significantly affect
the  estimates.  Further,  the  foregoing  estimates  may not reflect the actual
amount  that could be  realized  if all or  substantially  all of the  financial
instruments were offered for sale.

In addition,  the fair value estimates were based on existing on-and-off balance
sheet financial  instruments  without attempting to value the anticipated future
business  and the  value of  assets  and  liabilities  that  are not  considered
financial  instruments.  Other  significant  assets and liabilities that are not
considered financial assets and liabilities include real estate owned,  premises
and equipment, and advances from borrowers for taxes and insurance. In addition,
the tax  ramifications  related to the  realization of the unrealized  gains and
losses  have a  significant  effect on fair  value  estimates  and have not been
considered in any of the estimates.

Finally,  reasonable  comparability  between  financial  institutions may not be
likely due to the wide range of  permitted  valuation  techniques  and  numerous
estimates which must be made given the absence of active  secondary  markets for
many of the financial instruments.  The lack of uniform valuation  methodologies
introduces a greater degree of subjectivity to these estimated fair values.

17. RECENT ACCOUNTING PRONOUNCEMENTS
------------------------------------

In December  2004, the Financial  Accounting  Standards  Board  ("FASB")  issued
Statement  of  Financial   Accounting  Standards  ("SFAS")  No.  123  (revised),
"Share-Based  Payment."  SFAS  No.  123  (revised)  replaces  SFAS  No.  123 and
supersedes  APB  Opinion No. 25. SFAS No. 123  (revised)  requires  compensation
costs  related to  share-based  payment  transactions  to be  recognized  in the
financial  statements  over the  period  that an  employee  provides  service in
exchange for the award.  Public companies are required to adopt the new standard
using a modified prospective method and may elect to restate prior periods using
the  modified  retrospective  method.  Under the  modified  prospective  method,
companies are required to record  compensation  cost for new and modified awards
over  the  related  vesting  period  of such  awards  prospectively  and  record
compensation cost prospectively for the unvested

                                       44
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

17.  RECENT ACCOUNTING PRONOUNCEMENTS (CONT'D)
-------------------------------------

portion at the date of adoption,  of previously  issued and  outstanding  awards
over the  remaining  vesting  period of such awards.  No change to prior periods
presented is permitted under the modified prospective method. Under the modified
retrospective  method,  companies  record  compensation  costs for prior periods
retroactively  through  restatement  of such  periods  using the exact pro forma
amounts disclosed in the companies'  footnotes.  Also, in the period of adoption
and after,  companies record compensation cost based on the modified prospective
method.

On April 14, 2005, the Securities and Exchange  Commission (the "SEC") adopted a
new rule that amends the compliance dates for SFAS No. 123 (revised).  Under the
new rule,  the Company is required to adopt SFAS No. 123  (revised) in the first
annual period beginning after December 15, 2005.  Early  application of SFAS No.
123  (revised) is  encouraged,  but not  required.  Accordingly,  the Company is
required  to record  compensation  expense  for all new awards  granted  and any
awards modified after October 1, 2006. In addition,  the transition  rules under
SFAS No. 123 (revised) will require that, for all awards  outstanding at October
1, 2006, for which the requisite service has not yet been rendered, compensation
cost will be recorded as such service is rendered after October 1, 2006.

The  pronouncement  related to stock-based  payments will not have any effect on
our existing  historical  consolidated  financial  statements and restatement of
previously reported periods will not be required.

In March  2006,  the FASB  issued SFAS No. 156,  "Accounting  for  Servicing  of
Financial  Assets."  SFAS No. 140,  "Accounting  for  Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities,"  establishes,  among other
things,  the  accounting  for all  separately  recognized  servicing  assets and
servicing  liabilities.  SFAS No.  156 amends  SFAS No. 140 to require  that all
separately  recognized  servicing assets and servicing  liabilities be initially
measured at fair  value,  if  practicable.  SFAS No. 156  permits,  but does not
require,  the subsequent  measurement of separately  recognized servicing assets
and servicing  liabilities at fair value. SFAS No. 156 is effective in the first
fiscal year beginning after September 15, 2006 with earlier adoption  permitted.
The  Company  does not  expect the  adoption  of SFAS No. 156 to have a material
impact on its consolidated  financial  condition,  results of operations or cash
flows.

In September 2006, the FASB issued Statement of Financial  Accounting  Standards
SFAS No. 157, "Fair Value Measurements," which defines fair value, establishes a
framework  for measuring  fair value under U.S.  GAAP,  and expands  disclosures
about  fair  value  measurements.  SFAS No.  157  applies  to  other  accounting
pronouncements that require or permit fair value measurements.  The new guidance
is effective for financial  statements  issued for fiscal years  beginning after
November 15, 2007,  and for interim  periods  within those fiscal years.  We are
currently  evaluating  the  potential  impact,  if any, of the  adoption of FASB
Statement No. 157 on our consolidated financial position,  results of operations
and cash flows.

In September,  2006,  the FASB issued SFAS No. 158,  "Employers'  Accounting for
Defined Benefit Pension and Other Postretirement  Plans," which amends SFAS Nos.
87 and 106 to require  recognition of the  overfunded or  underfunded  status of
pension and other postretirement  benefit plans on the balance sheet. Under SFAS
158,  gains and losses,  prior  service  costs and  credits,  and any  remaining
transition  amounts under SFAS Nos. 87 and 106 that have not yet been recognized
through net  periodic  benefit  cost will be  recognized  in  accumulated  other
comprehensive  income,  net  of tax  effects,  until  they  are  amortized  as a
component of net periodic  cost.  The  measurement  date - the date at which the
benefit  obligation  and  plan  assets  are  measured  - is  required  to be the
Company's fiscal year end. SFAS 158 is effective for publicly-held companies for
fiscal years ending after  December 15, 2006,  except for the  measurement  date
provisions, which are effective for fiscal years ending after December 15, 2008.
The Company is currently  analyzing  the effects of SFAS 158 but does not expect
its implementation will have a significant impact on the Company's  consolidated
financial conditions or results of operations.

In September,  2006, the SEC issued Staff Accounting  Bulleting ("SAB") No. 108.
SAB No. 108 provides  interpretive  guidance on how the effects of the carryover
or reversal of prior year  misstatements  should be considered in  quantifying a
potential  current  year  misstatement.  Prior to SAB No. 108,  companies  might
evaluate the materiality of  financial-statement  misstatements using either the
income  statement  or  balance  approach,  with the  income  statement  approach
focusing on new misstatements added in the current year, and the balance sheet


                                       45
<PAGE>

                  ROEBLING FINANCIAL CORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------



17. RECENT ACCOUNTING PRONOUNCEMENTS (CONT'D)
------------------------------------

approach  focusing  on  the  cumulative  amount  of  misstatement  present  in a
company's balance sheet. Misstatements that would be material under one approach
could be viewed as immaterial under another approach, and not be corrected.  SAB
No. 108 now requires that companies view financial  statement  misstatements  as
material  if they are  material  according  to either  the income  statement  or
balance sheet  approach.  The Company has analyzed SAB 108 and  determined  that
upon  adoption it will have no impact on the  Company's  consolidated  financial
conditions or results of operations.

In July 2006,  the FASB  issued  FASB  Interpretation  No. 48,  "Accounting  for
Uncertainty in Income Taxes - an  Interpretation of FASB Statement No. 109" (FIN
48),  which  clarifies the accounting  for  uncertainty  in tax positions.  This
Interpretation  requires that companies recognize in their financial  statements
the impact of a tax position,  if that position is more likely than not of being
sustained  on  audit,  based  on  the  technical  merits  of the  position.  The
provisions of FIN 48 are effective for fiscal years beginning after December 15,
2006, with the cumulative effect of the change in accounting  principle recorded
as an adjustment to opening retained earnings.  We are currently  evaluating the
impact of adopting FIN 48 on our consolidated financial statements.


                                       46
<PAGE>

                          ROEBLING FINANCIAL CORP, INC.

                    BOARD OF DIRECTORS AND EXECUTIVE OFFICERS

                John J. Ferry, Chairman of the Board of Directors
                          President, Ferry Construction
                  John A. LaVecchia, Director and Vice Chairman
                        Sales Manager, Brandow Auto Group
           Frank J. Travea, III, President and Chief Executive Officer
      Janice A. Summers, Senior Vice President, Chief Operating Officer and
                             Chief Financial Officer
                             Mark V. Dimon, Director
                        Sole Proprietor, Dimon Oil Corp.
                             Joan K. Geary, Director
                            President, Keating Realty
                           George N. Nyikita, Director
             Executive Director, Burlington County Bridge Commission
                     Robert R. Semptimphelter, Sr., Director
                   Principal, Farnsworth & Semptimphelter, LLC

                             ROEBLING BANK OFFICERS

                     Frank J. Travea, III, President and CEO
              Janice A. Summers, Senior Vice President, COO and CFO
               John W. Clawges, Vice President, Commercial Lending
               Bonnie L. Horner, Vice President, Consumer Lending

                              ROEBLING BANK OFFICES

            Route 130 South and Delaware Avenue, Roebling, New Jersey
                      34 Main Street, Roebling, New Jersey
                    8 Jacobstown Road, New Egypt, New Jersey
                    3104 Bridgeboro Road, Delran, New Jersey
   1934 Route 541, Westampton, New Jersey (Banking and Administrative Center)
<TABLE>
<CAPTION>

<S>                                                              <C>
CORPORATE OFFICE                                                 TRANSFER AGENT
Route 130 South and Delaware Avenue                              Registrar and Transfer Company
Roebling, New Jersey 08554                                       10 Commerce Drive
                                                                 Cranford, New Jersey 07016

INDEPENDENT AUDITORS                                             SPECIAL COUNSEL
Fontanella and Babitts                                           Malizia Spidi & Fisch, PC
534 Union Boulevard                                              901 New York Avenue, N.W., Suite 210 East
Totowa, New Jersey 07512                                         Washington, D.C.  20001
</TABLE>

Our  Annual  Report  for the year  ended  September  30,  2006 as filed with the
Securities  &  Exchange  Commission  on  Form  10-KSB,  including  exhibits,  is
available  without charge upon written  request.  For a copy of the Form 10-KSB,
please contact Frank J. Travea,  III at our Corporate Office. The Annual Meeting
of Stockholders  will be held on January 29, 2007 at 3:00 p.m. at Bung's Tavern,
2031 Route 130 South, Burlington, New Jersey.

                                       47