<PAGE>

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

                                  FORM 10-QSB

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED
         SEPTEMBER 30, 2002 or

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
                   _________________to__________________

Commission file number:  000-49736

                      FIRST COMMUNITY FINANCIAL CORPORATION
--------------------------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)

         PENNSYLVANIA                                    23-2321079
--------------------------------            ------------------------------------
(State or other jurisdiction of                (I.R.S. Employer
 incorporation or organization)                          Identification No.)

TWO NORTH MAIN STREET, MIFFLINTOWN, PENNSYLVANIA           17059
-------------------------------------------                  -------
 (Address of principal executive offices)                (Zip Code)

                              (717) 436-2144
                  --------------------------------------
              (Issuer's telephone number, including area code)

        APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                        DURING THE PROCEEDING FIVE YEARS

Check whether registrant filed all documents and reports required to be filed by
Section 12, 13, or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes [ ]   No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practical date: COMMON STOCK, Par Value $5.00 per share
                                        ---------------------------------------
700,000 shares outstanding as of October 31, 2002
-------------------------------------------------

Transitional Small Business Disclosure Format (Check one): Yes [ ]  No [X]

<PAGE>

Part I - Financial Information
Item 1. Financial Statements
--------------------------------------------------------------------------------
                   FIRST COMMUNITY FINANCIAL CORPORATION
                         CONSOLIDATED BALANCE SHEETS
               (Dollars In Thousands, Except Per Share Data)

<TABLE>
<CAPTION>
                                                                       (unaudited)
                                                                 September 30, 2002      December 31, 2001
<S>                                                                    <C>                    <C>
ASSETS
Cash & Due from Banks                                                  $      5,903           $      7,268
Interest Bearing Deposits with Banks                                          2,678                    694
Federal Funds Sold                                                            2,338                     34
                                                                 -------------------    -------------------
Cash & Cash Equivalents                                                      10,919                  7,996
Investment Securities                                                        53,726                 47,143
      (fair value of $ 54,366 and $ 47,108)
Loans - Net of Unearned Income                                              126,020                115,835
Allowance for Loan Losses                                                     1,081                  1,038
                                                                 -------------------    -------------------
Net Loans                                                                   124,939                114,797
Premises and Equipment                                                        6,545                  6,620
Other Assets                                                                  6,717                  5,935
                                                                 -------------------    -------------------

TOTAL ASSETS                                                          $     202,846          $     182,491
                                                                 ===================    ===================

LIABILITIES

Deposits
      Non-Interest Bearing                                            $      15,627          $      15,469
      Interest Bearing                                                      159,873                138,553
                                                                 -------------------    -------------------
Total Deposits                                                              175,500                154,022
Short-Term Borrowings                                                         3,707                  6,082
Long-Term Borrowings                                                          8,000                  8,200
Other Liabilities                                                             1,340                  1,128
                                                                 -------------------    -------------------

TOTAL LIABILITIES                                                           188,547                169,432
                                                                 -------------------    -------------------

STOCKHOLDERS EQUITY

Preferred stock, without par value;
     10,000,000 shares authorized;
     no shares issued or outstanding
                                                                                  -                      -
Common stock, $ 5 par value;
     10,000,000 shares authorized;
     700,000 shares issued & outstanding                                      3,500                  3,500
Surplus                                                                         245                    245
Retained Earnings                                                             9,824                  8,822
Accumulated Other Comprehensive Income                                          730                    492
                                                                 -------------------    -------------------
Total Stockholders' Equity                                                   14,299                 13,059
                                                                 -------------------    -------------------

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                              $     202,846          $     182,491
                                                                 ===================    ===================
</TABLE>

                                      2

<PAGE>

Part I - Financial Information, CONTINUED
Item 1. Financial Statements, continued
--------------------------------------------------------------------------------
                     FIRST COMMUNITY FINANCIAL CORPORATION
                       CONSOLIDATED STATEMENTS OF INCOME
                                  (Unaudited)
                  (Dollars In Thousands, Except Per Share Data)

<TABLE>
<CAPTION>
                                                        Three Months Ended                         Nine Months Ended
                                                           September 30,                             September 30,
                                                      2002                2001                   2002               2001
<S>                                                  <C>                 <C>                     <C>                <C>
INTEREST INCOME
Interest & Fees on Loans                             $    2,374          $    2,271              $   7,027          $   6,652
Interest on Taxable Securities                              393                 454                  1,229              1,284
Interest on Non-Taxable Securities                          169                 172                    506                436
Other Interest & Dividends                                   45                  19                     98                179
                                                ----------------    ----------------        ---------------    ---------------
TOTAL INTEREST INCOME                                     2,981               2,916                  8,860              8,551
                                                ----------------    ----------------        ---------------    ---------------

INTEREST EXPENSE
Interest on Deposits                                      1,325               1,562                  3,924              4,576
Interest on Short Term Borrowings                            10                  26                     31                 89
Interest on Long Term Borrowings                            121                 121                    361                356
                                                ----------------    ----------------        ---------------    ---------------
TOTAL INTEREST EXPENSE                                    1,456               1,709                  4,316              5,021
                                                ----------------    ----------------        ---------------    ---------------
NET INTEREST INCOME                                       1,525               1,207                  4,544              3,530
Provision for Loan Losses                                    30                  21                     90                 57
                                                ----------------    ----------------        ---------------    ---------------
NET INTEREST INCOME AFTER
LOAN LOSS PROVISION                                       1,495               1,186                  4,454              3,473

NON-INTEREST INCOME
Service Charges                                             109                 103                    286                275
Fiduciary Income                                             36                  36                    108                108
Realized Gain on Sale of Securities                           -                   -                      -                 77
Earnings on Life Insurance                                   56                  47                    173                136
Other Income                                                104                  96                    295                292
                                                ----------------    ----------------        ---------------    ---------------
TOTAL OTHER INCOME                                          305                 282                    862                888
                                                ----------------    ----------------        ---------------    ---------------

NON-INTEREST EXPENSES
Salaries & Benefits                                         659                 514                  1,908              1,685
Occupancy Expense                                           108                  78                    312                237
Furniture & Equipment Expense                                92                 113                    313                340
Professional Fees                                            27                  29                    105                 56
Pennsylvania Bank Shares Tax                                 26                  49                     84                 81
Other Non-Interest Expense                                  319                 262                    952                843
                                                ----------------    ----------------        ---------------    ---------------
TOTAL NON-INTEREST EXPENSES                               1,231               1,045                  3,674              3,242
                                                ----------------    ----------------        ---------------    ---------------

Income Before Income Taxes                                  569                 423                  1,642              1,119
Applicable income taxes                                     119                  78                    347                209
                                                ----------------    ----------------        ---------------    ---------------

NET INCOME                                           $      450          $      345              $   1,295          $     910
                                                ================    ================        ===============    ===============

Basic and Diluted Earnings Per Share                 $     0.64          $     0.49              $    1.85          $    1.30
                                                ================    ================        ===============    ===============
Dividends Per Share                                  $     0.15          $     0.13              $    0.42          $    0.38
                                                ================    ================        ===============    ===============
</TABLE>

                                      3

<PAGE>

Part I - Financial Information, CONTINUED
Item 1. Financial Statements, continued
--------------------------------------------------------------------------------
                    FIRST COMMUNITY FINANCIAL CORPORATION
               CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                 For the Nine Months Ended September 30, 2001
                                 (Unaudited)
                 (Dollars In Thousands, Except Per Share Data)

<TABLE>
<CAPTION>
                                                                                            Accumulated Other
                                                  Common                      Retained         Comprehensive
                                                   Stock        Surplus       Earnings            Income               Total
                                              --------------  -----------  --------------  ---------------------  ------------
<S>                                                 <C>            <C>           <C>                      <C>        <C>
Balance December 31, 2000                           $ 3,500        $ 245         $ 7,878                  $ 307      $ 11,930
Comprehensive income:
Net Income                                                                           910                                  910
Net change in unrealized gains
    on securities available for
    sale, net of taxes ($215)                                                                               357           357
                                                                                                                  ------------
Total comprehensive income                                                                                              1,267

Cash dividends, $.38 per share                                                     (266)                                (266)
                                              --------------  -----------  --------------  ---------------------  ------------
Balance September 30, 2001                          $ 3,500        $ 245         $ 8,522                  $ 664      $ 12,931
                                              ==============  ===========  ==============  =====================  ============
</TABLE>

                    FIRST COMMUNITY FINANCIAL CORPORATION
               CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                 For the Nine Months Ended September 30, 2002
                                  (Unaudited)
                 (Dollars In Thousands, Except Per Share Data)

<TABLE>
<CAPTION>
                                                                                             Accumulated
                                                                                                Other
                                                    Common                    Retained      Comprehensive
                                                     Stock      Surplus       Earnings          Income          Total
                                                  ----------  -----------  --------------  ----------------  ------------

<S>                                                 <C>            <C>           <C>                 <C>        <C>
Balance December 31, 2001                           $ 3,500        $ 245         $ 8,822             $ 492      $ 13,059
Comprehensive income:
Net Income                                                                         1,295
                                                                                                                   1,295
Net change in unrealized gains
    on securities available for
    sale, net of taxes ($122)                                                                          238           238
                                                                                                             ------------
Total comprehensive income                                                                                         1,533
Cash dividends, $.42 per share                                                     (293)                            (293)
                                                  ----------  -----------  --------------  ----------------  ------------
Balance September 30, 2002                          $ 3,500        $ 245         $ 9,824             $ 730      $ 14,299
                                                  ==========  ===========  ==============  ================  ============
</TABLE>

                                      4

<PAGE>

Part I - Financial Information, CONTINUED
Item 1. Financial Statements, continued
--------------------------------------------------------------------------------
                     FIRST COMMUNITY FINANCIAL CORPORATION
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)
                            (Dollars In Thousands)

<TABLE>
<CAPTION>
                                                                          Nine Months Ended
                                                                            September 30,
                                                                       2002             2001
                                                                   ------------     -------------
<S>                                                                 <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                                          $    1,295         $     910
Adjustments to reconcile net income to net cash provided by
Operating activities:
    Provision for loan losses                                               90                57
    Depreciation and amortization                                          373               351
    Net amortization of securities premium                                 170                 5
    Net realized gain on sale of securities                                  -              (77)
    Earnings on life insurance                                           (173)             (136)
    Increase in other assets                                             (662)             (282)
    Decrease in other liabilities                                           84               (6)
    Other, net                                                              28                19
                                                                   ------------     -------------
         Net cash provided by operating activities                       1,205               841

CASH FLOWS FROM INVESTING ACTIVITIES
Securities held to maturity:
     Maturities, calls and principal repayments                          1,887             3,655
     Purchases                                                         (1,808)           (6,467)
Securities available for sale:
     Maturities, calls and principal repayments                          9,490             9,912
     Purchases                                                        (15,962)          (21,338)
     Proceeds from sales                                                     -               685
Net increase in loans receivable                                      (10,270)          (12,650)
Proceeds from sales of foreclosed real estate                               69                16
Purchases of premises and equipment                                      (298)             (331)
                                                                   ------------     -------------
         Net cash used in investing activities                        (16,892)          (26,518)

CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in non-interest bearing demand and
savings deposits                                                         4,251             3,268
Net increase in time deposits                                           17,227            18,410
Net decrease in short-term borrowings                                  (2,375)               524
Proceeds from long-term borrowings                                           -             2,000
Repayment of long-term borrowings                                        (200)           (1,000)
Dividends paid                                                           (293)             (266)
                                                                   ------------     -------------
         Net cash provided by financing activities                      18,610            22,936

Net increase (decrease) in cash and cash equivalents                     2,923           (2,741)

Cash and due from banks:
Beginning of year                                                        7,996             9,124
                                                                   ------------     -------------
End of period                                                           10,919         $   6,383
                                                                   ============     =============

SUPPLEMENTAL DISCLOSURES:
Cash payments for interest                                          $    4,884         $   5,102
                                                                   ============     =============
Cash payments for taxes                                             $      376         $     214
                                                                   ============     =============
</TABLE>

                                      5

<PAGE>

Part I - Financial Information, CONTINUED
Item 1. Financial Statements, continued
--------------------------------------------------------------------------------

                      FIRST COMMUNITY FINANCIAL CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

September 30, 2002

Note A - Basis of Presentation
The consolidated financial statements include the accounts of First Community
Financial Corporation (the "Corporation") and its wholly-owned subsidiary, The
First National Bank of Mifflintown (the "Bank"). All material inter-company
transactions have been eliminated. First Community Financial Corporation was
organized on November 13, 1984 and is subject to regulation by the Board of
Governors of the Federal Reserve System.

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and are presented in accordance with the instructions to
Form 10-QSB and Rule 10-01 of the Securities and Exchange Commission Regulation
S-X. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Operating results for the nine months ended September 30, 2002, are
not necessarily indicative of the results that may be expected for the year
ending December 31, 2002.

The consolidated financial statements presented in this report should be read in
conjunction with the audited financial statements and the accompanying notes for
the year ended December 31, 2001, included in the Registration Statement on Form
10-SB of First Community Financial Corporation filed with the Securities and
Exchange Commission on April 17, 2002, as amended.

Note B - Accounting Policies
The accounting policies of the Corporation as applied in the interim financial
statements presented, are substantially the same as those followed on an annual
basis as presented in the Registration Statement on Form 10-SB of First
Community Financial Corporation filed April 17, 2002, as amended.

                                      6

<PAGE>

Note C - Comprehensive Income
The only comprehensive income item that the Corporation presently has is
unrealized gains (losses) on securities available for sale. The components of
the change in unrealized gains (losses) are as follows:

<TABLE>
<CAPTION>
                                                                  Three Months Ended        Nine Months Ended
                                                                    September 30,             September 30,
                                                                  2002          2001        2002         2001
                                                               ------------------------  ------------------------
                                                                    (In Thousands)            (In Thousands)

<S>                                                               <C>          <C>         <C>          <C>
Unrealized holding gains arising during the period                $256          $358        $360         $649
Reclassification adjustment                                          -             -           -         (77)
                                                               ------------------------  ------------------------
                                                                   256           358         360          572
Tax effect                                                        (88)         (142)       (122)        (215)
                                                               ------------------------  ------------------------
Net change in unrealized gains during the period                  $168          $216        $238         $357
                                                               ========================  ========================
</TABLE>

Note D - Earnings Per Share
The Corporation has a simple capital structure. Earnings Per Share for the
quarters ended September 30, 2002 and 2001 was calculated as follows:

<TABLE>
<CAPTION>
                                                                  Three Months Ended        Nine Months Ended
                                                                    September 30,             September 30,
                                                                  2002          2001        2002         2001
                                                               ------------------------  ------------------------
                                                                    (In Thousands)            (In Thousands)

<S>                                                              <C>           <C>         <C>          <C>
Net Income                                                        $450          $345       $1,295        $910
Weighted Avg. Shares Outstanding                                   700           700          700         700
                                                               ------------------------  ------------------------

Earnings Per Share                                               $0.64         $0.49        $1.85       $1.30
                                                               ========================  ========================
</TABLE>

Note E - New Accounting Standards
In July 2001, the FASB issued Statement 143, "Accounting for Asset Retirement
Obligations," which addresses the financial accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and the
associated asset retirement costs. This Statement requires that the fair value
of a liability for an asset retirement obligation be recognized in the period in
which it is incurred if a reasonable estimate of fair value can be made. The
associated asset retirement costs are capitalized as part of the carrying amount
of the long-lived asset. This Statement will become effective for the
Corporation on January 1, 2003 and is not expected to have any impact on the
Corporation's financial condition or results of operations.

In April 2002, the Financial Accounting Standards Board issued Statement No.
145, "Rescission of Statements No. 4, 44 and 64, Amendment of Statement No. 13".
This statement requires that debt extinguishment no longer be classified as an
extraordinary item since debt extinguishment has become a risk management
strategy for many companies. It also eliminates the inconsistent accounting
treatment

                                      7

<PAGE>

for sale-leaseback transactions and certain lease modifications that have
economic effects similar to sale-lease back transactions. This statement became
effective May 15, 2002 and did not have any impact on the Corporation's
financial condition or results of operations.

In June 2002, the Financial Accounting Standards Board issued Statement No. 146,
"Accounting for Costs Associated with Exit or Disposal Activities", which
nullifies EITF Issue 94-3, "Liability Recognition for Certain Employee
Termination Benefits and other Costs to Exit and Activity (including certain
costs incurred in a restructuring)." This statement delays recognition of these
costs until liabilities are incurred and requires fair value measurement. It
does not impact the recognition of liabilities incurred in connection with a
business combination or the disposal of long-lived assets. The provisions of
this statement are effective for exit or disposal activities initiated after
December 31, 2002 and are not expected to have any impact on the Corporation's
financial condition or results of operations.

In October 2002, the Financial Accounting Standards Board issued Statement No.
147, "Acquisitions of Certain Financial Institutions." This statement provides
guidance on accounting for the acquisition of a financial institution, including
the acquisition of part of a financial institution. The statement defines
criteria for determining whether the acquired financial institution meets the
conditions for a "business combination". If the acquisition meets the conditions
of a "business combination", the specialized accounting guidance under Statement
No. 72, "Accounting for Certain Acquisitions of Banking or Thrift Institutions"
will not apply after September 30, 2002 and the amount of the unidentifiable
intangible asset will be reclassified to goodwill upon adoption of Statement No.
147. Additionally, Statement No. 147 will require restatement of the financial
statements to present the balance sheet and income statement as if the amount
accounted for under Statement 72 as an unidentifiable intangible asset had been
reclassified to goodwill as of the effective date of Statement No. 142,
"Goodwill and Other Intangible Assets". The transition provisions were effective
on October 1, 2002 and did not have a significant impact on the Corporation's
financial condition or results of operations. At September 30, 2002, the
Corporation had intangible assets with a net book value of $ 170,000, which will
continue to be amortized rules pursuant to the requirements of Statement No. 72.
Amortization expense related to these assets was $21,000 and
$21,000 for the nine months ended September 30, 2002 and 2001, respectively.

Item 2- Management's Discussion and Analysis of Financial Condition and Results
        of Operations

                                      8

<PAGE>

Forward-Looking Statements
Except for historical information, this report may be deemed to contain
"forward-looking" statements regarding the Corporation. Examples of
forward-looking statements include, but are not limited to, (a) projections or
statements regarding future earnings, expenses, net interest income, other
income, earnings or loss per share, asset mix and quality, growth prospects,
capital structure and other financial terms, (b) statements of plans and
objectives of management or the board of directors, and (c) statements of
assumptions, such as economic conditions in the Corporation's market areas. Such
forward-looking statements can be identified by the use of forward-looking
terminology such as "believes", "expects", "may", "intends", "will", "should",
"anticipates", or the negative of any of the foregoing or other variations
thereon or comparable terminology, or by discussion of strategy.

No assurance can be given that the future results covered by forward-looking
statements will be achieved. Such statements are subject to risks,
uncertainties, and other factors that could cause actual results to differ
materially from future results expressed or implied by such forward-looking
statements. Important factors that could impact the Corporation's operating
results include, but are not limited to, (i) the effects of changing economic
conditions in the Corporation's market areas and nationally, (ii) credit risks
of commercial, real estate, consumer and other lending activities, (iii)
significant changes in interest rates, (iv) changes in federal and state banking
laws and regulations which could impact the Corporation's operations, (v)
funding costs, and (iv) other external developments which could materially
affect the Corporation's business and operations.

Critical Accounting Policies
Note 1 to the consolidated financial statements of First Community Financial
Corporation for the year ended December 31, 2001 (included in Part F/S of the
First Community Financial Corporation Registration Statement on Form 10-SB,
filed with the Securities and Exchange Commission on April 17, 2002, as amended)
lists significant accounting policies used in the development and presentation
of its financial statements. This discussion and analysis, the significant
accounting policies, and other financial statement disclosures identify and
address key variables and other qualitative and quantitative factors that are
necessary for an understanding and evaluation of the Corporation and its results
of operations.

Significant estimates are made by management in determining the allowance for
loan losses. Consideration is given to a variety of factors in establishing this
estimate. In estimating the allowance for loan losses, management considers
current economic conditions, diversification of the loan portfolio, delinquency
statistics, results of internal loan reviews, borrowers' perceived financial and
managerial strengths, the adequacy of the underlying collateral, if collateral
dependent, or present value of future cash flows and other relevant factors.

Financial Condition
Total assets of the Corporation increased $20,355,000 or 11.2% during the first
nine months of 2002. Since December 31, 2001 loans increased $10,185,000 or
8.8%, investment securities increased $6,583,000 or 14.0%, and cash and cash
equivalents increased $2,923,000 or 36.5%. The increase in loans was primarily
in residential and commercial mortgages.

                                      9

<PAGE>

The increase in assets was funded by deposits, which increased by $21,478,000
since year-end 2001. Short term borrowings declined by $2,375,000 during the
same time period. The current economic environment contributed to the growth in
deposits, along with the Corporation's expansion and business development. The
February 2002 opening of the branch in Shermans Dale, Pennsylvania also
contributed to the increase in deposits.

Results of Operations
Net income for the nine month period ending September 30, 2002 was $1,295,000 or
$1.85 per share compared to $910,000 or $1.30 per share for the same period in
2001. This reflects a 42.3% increase in net income for the first nine months of
this year compared to last year. Annualized return on average equity was 12.62%
for the first nine months of 2002 and 9.78% for the same period in 2001.
Annualized return on average assets was 0.92% for the first nine months of 2002
and 0.74% for the same period in 2001.

Net income for the quarter ending September 30, 2002 was $450,000 or $0.64 per
share compared to $345,000 or $0.49 per share for the same period in 2001.
Annualized return on average equity was 12.79% for the third quarter 2002 and
10.84% for the same period in 2001. Annualized return on average assets for the
third quarter 2002 was 0.92% compared to 0.81% during the third quarter 2001.

Net interest income for the first nine months of 2002 increased by $1,014,000 or
28.7% compared to the same period in 2001. This increase is a result of
increased volume of interest earning assets and an improved net interest margin.
For the first nine months of 2002, the net interest margin on a fully tax
equivalent (FTE) basis was 3.77% compared to 3.39% for the same period in 2001.
The FTE basis is calculated by grossing up the yield on tax-exempt securities
and loans by the federal tax rate of 34%, in order that the yield on tax-exempt
assets may be comparable to interest earned on taxable assets. The primary
driver of the increase in the net interest margin was the decline in cost of
funds of 1.14% from 4.51% to 3.37%. This decline was primarily in deposits and
was a result of the Federal Reserve decreasing rates several times during 2001.
The yield on interest earning assets was 7.14% during the first nine months of
2002 compared to 7.90% a year ago. As anticipated, margin compression began in
the third quarter of 2002 and we expect that compression to continue in the near
term.

Net interest income for the quarter ending September 30, 2002 increased by
$318,000 compared to the same period last year. Net interest margin for the
quarter was 3.65% compared to 3.34% during the same

                                      10

<PAGE>

period in 2001. The decrease in the cost of funds from 4.39% to 3.26% more than
offset the decrease in the yield on earning assets from 7.73% to 6.91%.

The Corporation recorded a $90,000 provision for loan losses for the first nine
months of 2002, as compared to a provision of $57,000 for the first nine months
of 2001. The provision for the third quarter 2002 was $30,000 compared to
$21,000 during the same period in 2001. As a percentage of loans, the allowance
for loan losses was 0.86% at September 30, 2002, compared to 0.90% at year-end
2001 and 0.90% at September 30, 2001. Provisions for loan losses are charged to
income to bring the allowance for loan losses to a level deemed appropriate by
management. Management determines the adequacy of the allowance based on
on-going quarterly assessments of the loan portfolio, including such factors as:
changes in the nature and volume of the portfolio, effects of concentrations of
credit, current and projected economic and business conditions, regulatory and
consultant recommendations, repayment patterns on loans, borrower's financial
condition, current charge-offs, trends in volume and severity of past due loans
and classified loans, potential problem loans and supporting collateral.
Management believes the allowance is presently adequate to cover the inherent
risks associated with the Corporation's loan portfolio.

Excluding the $77,000 securities gain in the first nine months of 2001,
non-interest income in the first nine months of 2002 increased by $51,000 or
6.3% compared to the same period in 2001. Service charges on deposit accounts as
well as income from fiduciary activities did not change by material amounts,
while earnings from bank-owned life insurance increased $37,000.

Non-interest income for the quarter ending September 30, 2002 was $305,000
compared to $282,000 for the same time period in 2001.

Total non-interest expense increased in the first nine months of 2002 by
$432,000 compared to the first nine months of 2001. Salaries and employee
benefits, increased by $223,000 or 13.2% compared to the same period in 2001.
Several factors contributed to this increase including payroll increases as a
result of normal merit increases, additions to staff, increases in medical
insurance, and the decrease in costs deferred in accordance with Statement of
Financial Accounting Standards No. 91. Increases in salary and benefits are
anticipated as the Corporation continues to grow in size and number of
locations. Also, occupancy expense increased $75,000, professional fees
increased $49,000 and other non-interest expense increased $109,000. The
increase in other non-interest expense was primarily related to increases in
directors' deferred compensation, ATM expenses and advertising and promotion.

                                      11

<PAGE>

During the quarter ending September 30, 2002, total non-interest expense
increased $186,000 compared to the third quarter of 2001. Salaries and employee
benefits increased by $145,000 and occupancy expense increased by $30,000 during
the third quarter as compared to the same period in 2001.

A portion of the increases in operating expenses noted in both the nine months
and the quarter ended September 30, 2002 were related to the addition of the
Shermans Dale Branch in February 2002. As the Corporation continues to add new
offices and services, additional operating costs will be generated. Over time it
is anticipated these costs will be offset by the additional income generated
through the expansion of services to our customers and community and new
business development.

Income tax expense was $347,000 for the nine month time period ending September
30, 2002 compared to $209,000 for the same time period in 2001. Income tax
expense as a percentage of income before income taxes was 21.1% for the period
compared to 18.7% for 2001. Income tax expense for the quarter ending September
30, 2002 was $119,000, an effective rate of 20.9%, compared to $78,000, an
effective rate of 18.4%, during the same period in 2001. The reason for the
increase in the effective tax rate for the periods in 2002 compared to 2001 is
due primarily to the tax exempt income representing a smaller portion of income
before taxes in 2002 compared to 2001.

The decrease in the Corporation's effective tax rate away from the statutory
rate of 34.0% is a result of tax-exempt income on loans, securities and
bank-owned life insurance.

Liquidity
Liquidity represents the Corporation's ability to efficiently manage cash flows
to support customers' loan demand, withdrawals by depositors, the payment of
operating expenses, as well as the ability to take advantage of business and
investment opportunities as they arise. One of the Corporation's sources of
liquidity is $138,900,000 in core deposits at September 30, 2002. Other sources
of liquidity at September 30, 2002 are available from the following: (1)
investments in interest-bearing deposits with banks and federal funds sold,
which totaled $5,016,000, (2) securities maturing in one year or less, which
totaled $985,000, and (3) investments in mortgage-backed securities, which
supply income and principal cash flow streams on an ongoing basis. In addition,
the Corporation has established federal funds lines of credit with Atlantic
Central Bankers Bank and with the Federal Home Loan Bank of Pittsburgh, which
can be drawn upon if needed as a source of liquidity. Management is of the
opinion that the Corporation's liquidity is sufficient to meet its anticipated
needs.

                                      12

<PAGE>

Capital Resources
Total stockholders' equity was $14,299,000 as of September 30, 2002,
representing a $1,240,000 increase from December 31, 2001. The growth in capital
was primarily a result of net earnings retention of $1,002,000, and an increase
in accumulated other comprehensive income of $238,000.

At September 30, 2002, the Corporation had a leverage ratio of 7.05%, a Tier I
capital to risk-based assets ratio of 12.58% and a total capital to risk-based
assets ratio of 13.59%. The Bank's ratios did not differ materially from those
of the Corporation. These ratios indicate the Corporation and the Bank exceed
the federal regulatory minimum requirements to be "well capitalized ".

Quantitative and Qualitative Disclosure about Market
There are no material changes in the Corporation's interest rate risk exposure
since December 31, 2001. Please refer to the Registration Statement on Form
10-SB of First Community Financial Corporation, filed with the Securities and
Exchange Commission on April 17, 2002, as amended.

Item 3. Controls and Procedures
We maintain a system of controls and procedures designed to provide reasonable
assurance as to the reliability of the financial statements and other
disclosures included in this report, as well as to safeguard assets from
unauthorized use or disposition. We evaluated the effectiveness of our
disclosure controls and procedures (as defined in Rule 13a-14(c) and Rule
15a-14(c) under the Securities Exchange Act of 1934) under the supervision and
with the participation of management, including our Chief Executive Officer and
Chief Financial Officer, within 90 days prior to the filing date of this report.
Based upon that evaluation, our Chief Executive Officer and Chief Financial
Officer concluded that our disclosure controls and procedures are effective in
timely alerting them to information required to be included in our periodic
Securities and Exchange Commission filings. There were no significant changes in
our internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation.

PART II - OTHER INFORMATION
Item 1.  Legal Proceedings
         Not Applicable
Item 2.  Changes in Securities
         Not Applicable
Item 3.  Defaults Upon Senior Securities
         Not Applicable

                                      13

<PAGE>

Item 4.  Submission of Matters to a Vote of Security Holders
         Not Applicable
Item 5.  Other Information
         Not Applicable
Item 6.  Exhibits and Reports on Form 8-K
(a) Exhibits

Exhibit           Title

3.1               Articles of Incorporation of the Corporation. (Incorporated by
                  reference to Exhibit 2(a) to the Corporation's December 31,
                  2001 Registration Statement on Form 10-SB, as filed with the
                  Securities and Exchange Commission on April 17, 2002.)

3.2               Bylaws of the Corporation. (Incorporated by reference to
                  Exhibit 2(b) to the Corporation's Registration Statement on
                  Form 10-SB, as filed with the Securities and Exchange
                  Commission on April 17, 2002.)

10.1              Lease Agreement - Delaware Branch Office (Incorporated by
                  reference to Exhibit 6(b)(1) to the Corporation's Registration
                  Statement on Form 10-SB, as filed with the Securities and
                  Exchange Commission on April 17, 2002.)

10.2              Lease Agreement - East Waterford Branch Office (Incorporated
                  by reference to Exhibit 6(b)(2) to the Corporation's
                  Registration Statement on Form 10-SB, as filed with the
                  Securities and Exchange Commission on April 17, 2002.)

10.3              Lease Agreement - Shermans Dale Branch Office (Incorporated by
                  reference to Exhibit 6(b)(3) to the Corporation's Registration
                  Statement on Form 10-SB, as filed with the Securities and
                  Exchange Commission on April 17, 2002.)

10.4              Salary Continuation Agreement dated August 19,1997 between
                  James McLaughlin and The First National Bank of Mifflintown
                  (Incorporated by reference to Exhibit 6(c) (1) to the
                  Corporation's Registration Statement on Form 10-SB, as filed
                  with the Securities and Exchange Commission on April 17,
                  2002.)

10.5              Salary Continuation Agreement dated September 22,1997 between
                  Leona Shellenberger and The First National Bank of Mifflintown
                  (Incorporated by reference to Exhibit 6(c) (2) to the
                  Corporation's Registration Statement on Form 10-SB, as filed
                  with the Securities and Exchange Commission on April 17,
                  2002.)

10.6              Salary Continuation Agreement dated August 28,1997 between
                  Jody Graybill and The First National Bank of Mifflintown
                  (Incorporated by reference to Exhibit 6(c) (3) to the
                  Corporation's Registration Statement on Form 10-SB, as filed
                  with the Securities and Exchange Commission on April 17,
                  2002.)

10.7              Salary Continuation Agreement dated September 18,1997 between
                  Timothy Stayer and The First National Bank of Mifflintown
                  (Incorporated by reference to Exhibit 6(c) (4) to the
                  Corporation's Registration Statement on Form 10-SB, as filed
                  with the Securities and Exchange Commission on April 17,
                  2002.)

                                      14

<PAGE>

10.8              Salary Continuation Agreement dated April 10,2000 between
                  Marcie A. Barber and The First National Bank of Mifflintown
                  (Incorporated by reference to Exhibit 6(c) (5) to the
                  Corporation's Registration Statement on Form 10-SB, as filed
                  with the Securities and Exchange Commission on April 17,
                  2002.)

10.9              Salary Continuation Agreement dated November 5,2001 between
                  Richard R. Leitzel and The First National Bank of Mifflintown
                  (Incorporated by reference to Exhibit 6(c) (6) to the
                  Corporation's Registration Statement on Form 10-SB, as filed
                  with the Securities and Exchange Commission on April 17,
                  2002.)

10.10             Officer Group Term Replacement Plan (Incorporated by reference
                  to Exhibit 6(c) (7) to the Corporation's Registration
                  Statement on Form 10-SB, as filed with the Securities and
                  Exchange Commission on April 17, 2002.)

10.11             Director Deferred Fee Agreement dated September 29,1997
                  between James McLaughlin and The First National Bank of
                  Mifflintown (Incorporated by reference to Exhibit 6(c) (8) to
                  the Corporation's Registration Statement on Form 10-SB, as
                  filed with the Securities and Exchange Commission on April 17,
                  2002.)

10.12             Director Deferred Fee Agreement dated September 29,1997
                  between Joseph Barnes and The First National Bank of
                  Mifflintown (Incorporated by reference to Exhibit 6(c) (9) to
                  the Corporation's Registration Statement on Form 10-SB, as
                  filed with the Securities and Exchange Commission on April 17,
                  2002.)

10.13             Director Deferred Fee Agreement dated September 30,1997
                  between Roger Shallenberger and The First National Bank of
                  Mifflintown (Incorporated by reference to Exhibit 6(c) (10) to
                  the Corporation's Registration Statement on Form 10-SB, as
                  filed with the Securities and Exchange Commission on April 17,
                  2002.)

10.14             Director Deferred Fee Agreement dated April 9,2002 between
                  Nancy S. Bratton and The First National Bank of Mifflintown
                  (Incorporated by reference to Exhibit 6(c) (11) to the
                  Corporation's Registration Statement on Form 10-SB, as filed
                  with the Securities and Exchange Commission on April 17,
                  2002.)

10.15             Director Deferred Fee Agreement dated April 9,2002 between
                  John P. Henry and The First National Bank of Mifflintown
                  (Incorporated by reference to Exhibit 6(c) (12) to the
                  Corporation's Registration Statement on Form 10-SB, as filed
                  with the Securities and Exchange Commission on April 17,
                  2002.)

10.16             Director Deferred Fee Agreement dated April 9,2002 between
                  Samuel G. Kint and The First National Bank of Mifflintown
                  (Incorporated by reference to Exhibit 6(c) (13) to the
                  Corporation's Registration Statement on Form 10-SB, as filed
                  with the Securities and Exchange Commission on April 17,
                  2002.)

10.17             Director Revenue Neutral Retirement Agreement dated September
                  29,1997 between James McLaughlin and The First National Bank
                  of Mifflintown (Incorporated by reference to Exhibit 6(c) (14)
                  to the Corporation's Registration Statement on Form 10-SB, as
                  filed with the Securities and Exchange Commission on April 17,
                  2002.)

10.18             Director Revenue Neutral Retirement Agreement dated September
                  30,1997 between John H. Sheaffer and The First National Bank
                  of Mifflintown (Incorporated by reference to

                                      15

<PAGE>

                  Exhibit 6(c) (15) to the Corporation's Registration Statement
                  on Form 10-SB, as filed with the Securities and Exchange
                  Commission on April 17, 2002.)

10.19             Director Revenue Neutral Retirement Agreement dated September
                  29,1997 between Donald Adams and The First National Bank of
                  Mifflintown (Incorporated by reference to Exhibit 6(c) (16) to
                  the Corporation's Registration Statement on Form 10-SB, as
                  filed with the Securities and Exchange Commission on April 17,
                  2002.)

10.20             Director Revenue Neutral Retirement Agreement dated September
                  29,1997 between Joseph Barnes and The First National Bank of
                  Mifflintown (Incorporated by reference to Exhibit 6(c) (17) to
                  the Corporation's Registration Statement on Form 10-SB, as
                  filed with the Securities and Exchange Commission on April 17,
                  2002.)

10.21             Director Revenue Neutral Retirement Agreement dated September
                  29,1997 between Samuel F. Metz and The First National Bank of
                  Mifflintown (Incorporated by reference to Exhibit 6(c) (18) to
                  the Corporation's Registration Statement on Form 10-SB, as
                  filed with the Securities and Exchange Commission on April 17,
                  2002.)

10.22             Director Revenue Neutral Retirement Agreement dated September
                  30,1997 between Clair E. McMillen and The First National Bank
                  of Mifflintown (Incorporated by reference to Exhibit 6(c) (19)
                  to the Corporation's Registration Statement on Form 10-SB, as
                  filed with the Securities and Exchange Commission on April 17,
                  2002.)

10.23             Director Revenue Neutral Retirement Agreement dated September
                  29,1997 between Roger Shallenberger and The First National
                  Bank of Mifflintown (Incorporated by reference to Exhibit 6(c)
                  (20) to the Corporation's Registration Statement on Form
                  10-SB, as filed with the Securities and Exchange Commission on
                  April 17, 2002.)

10.24             Director Revenue Neutral Retirement Agreement dated September
                  29,1997 between John Tetweiler and The First National Bank of
                  Mifflintown (Incorporated by reference to Exhibit 6(c) (21) to
                  the Corporation's Registration Statement on Form 10-SB, as
                  filed with the Securities and Exchange Commission on April 17,
                  2002.)

10.25             Director Revenue Neutral Retirement Agreement dated September
                  29,1997 between Richard Weible and The First National Bank of
                  Mifflintown (Incorporated by reference to Exhibit 6(c) (22) to
                  the Corporation's Registration Statement on Form 10-SB, as
                  filed with the Securities and Exchange Commission on April 17,
                  2002.)

10.26             Director Revenue Neutral Retirement Agreement dated March
                  31,1998 between Lowell M. Shearer and The First National Bank
                  of Mifflintown (Incorporated by reference to Exhibit 6(c) (23)
                  to the Corporation's Registration Statement on Form 10-SB, as
                  filed with the Securities and Exchange Commission on April 17,
                  2002.)

10.27             Director Revenue Neutral Retirement Agreement dated March
                  24,1998 between Charles C. Saner and The First National Bank
                  of Mifflintown (Incorporated by reference to Exhibit 6(c) (24)
                  to the Corporation's Registration Statement on Form 10-SB, as
                  filed with the Securities and Exchange Commission on April 17,
                  2002.)

99.1              Certification of Chief Executive Officer of First Community
                  Financial Corporation  Pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002

99.2              Certification of Chief Financial Officer of First Community
                  Financial Corporation

                                      16

<PAGE>

                  Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

(b) Form 8-K
         There were no reports filed on Form 8-K during the quarter ending
September 30, 2002.

                                      17

<PAGE>

                                  SIGNATURES

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

                         FIRST COMMUNITY FINANCIAL CORPORATION
                         -------------------------------------
                                               (Registrant)

Date: November 12, 2002                              BY: /s/ James R.McLaughlin
      ---------------------                             ------------------------
                                                     James R. McLaughlin
                                                     President and
                                                     Chief Executive Officer

Date: November 12, 2002                              BY: /s/ Richard R. Leitzel
      -----------------                                 -----------------------
                                                     Richard R. Leitzel
                                                     Vice President and
                                                     Chief Financial Officer

                                CERTIFICATIONS

I, James R. McLaughlin, President & CEO of First Community Financial
Corporation, certify,  that:

      1.    I have reviewed this quarterly report on Form 10-QSB of First
Community Financial Corporation.

      2.    Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report.

      3.    Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report.

      4.    The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

            (a)    designed such disclosure controls and procedures to ensure
      that material information relating to the registrant, including its
      consolidated subsidiaries, is made known to us by others within those
      entities, particularly during the period in which this quarterly report
      is being prepared;

                                      18

<PAGE>

            (b)    evaluated the effectiveness of the registrant's disclosure
      controls and procedures as of a date within 90 days prior to the filing
      date of this quarterly report (the "Evaluation Date"); and

            (c)    presented in this quarterly report our conclusions about the
      effectiveness of the disclosure controls and procedures based on our
      evaluation as of the Evaluation Date.

      5.    The registrant's other certifying officer and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):

            (a)    all significant deficiencies in the design or operation of
      the internal controls which could adversely affect the registrant's
      ability to record, process, summarize and report financial data and
      have identified for the registrant's auditors any material weaknesses
      in internal controls; and

            (b)    any fraud, whether or not material, that involves management
      or other employees who have a significant role in the registrant's
      internal controls.

      6.    The registrant's other certifying officer and I have indicated in
this quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect the internal
controls subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.

Date: November 12, 2002                By: /s/ James R. McLaughlin
      -----------------                    -------------------------
                                           James R. McLaughlin, President & CEO

I, Richard R. Leitzel, Chief Financial Officer of First Community Financial
Corporation, certify,  that:

      1.    I have reviewed this quarterly report on Form 10-QSB of First
Community Financial Corporation.

      2.    Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report.

      3.    Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report.

      4.    The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

                                      19

<PAGE>

            (a)    designed such disclosure controls and procedures to ensure
      that material information relating to the registrant, including its
      consolidated subsidiaries, is made known to us by others within those
      entities, particularly during the period in which this quarterly report
      is being prepared;

            (b)    evaluated the effectiveness of the registrant's disclosure
      controls and procedures as of a date within 90 days prior to the filing
      date of this quarterly report (the "Evaluation Date"); and

            (c)    presented in this quarterly report our conclusions about the
     effectiveness of the disclosure controls and procedures based on our
     evaluation as of the Evaluation Date.

      5.    The registrant's other certifying officer and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):

            (a)    all significant deficiencies in the design or operation of
      the internal controls which could adversely affect the registrant's
      ability to record, process, summarize and report financial data and have
      identified for the registrant's auditors any material weaknesses in
      internal controls; and

            (b)    any fraud, whether or not material, that involves management
      or other employees who have a significant role in the registrant's
      internal controls.

      6.    The registrant's other certifying officer and I have indicated in
this quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect the internal
controls subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.

Date: November 12, 2002          By: /s/ Richard R. Leitzel
      -----------------              -----------------------
                                     Richard R. Leitzel, Chief Financial Officer

                                      20