----

----

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

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

| NEFFS BANCORP, INC.                                          |
|--------------------------------------------------------------|
|  (Exact name of registrant as specified in its charter) |

| Pennsylvania                                                         |   | 23-2400383                        |
|----------------------------------------------------------------------|--------|-----------------------------------|
|  (State or other jurisdiction of incorporation or organization) |   | (IRS Employer Identification No.) |

| 5629 PA Route 873, P.O. Box 10, Neffs, PA l8065-0010 |
|------------------------------------------------------|
| (Address of principal executive offices)             |

| (610) 767-3875                    |
|-----------------------------------|
|  (Issuer's telephone number) |

|   | Large Accelerated filer   |  ̈ | Accelerated filer                     |  ̈ |   |
|--------|-------------------------------------|--------|---------------------------------------|--------|--------|
|   | Non-Accelerated filer               |  ̈ | Smaller reporting company   | x      |   |

----

| PART 1.    | FINANCIAL INFORMATION                                                                                                                                                                           |   |
|---------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                      |                                                                                                                                                                                            |   |
| Item 1.                   | Consolidated Financial Statements                                                                                                                                                               |   |
|                      |                                                                                                                                                                                            |   |
|                      | Consolidated Statements of Financial Condition (Unaudited) September 30, 2010 and December 31, 2009                                                                                        | 3      |
|                      |                                                                                                                                                                                            |   |
|                      | Consolidated Statements of Income (Unaudited) Three months ended September 30, 2010 and September 30, 2009 Nine months ended September 30, 2010 and September 30, 2009 | 4      |
|                      |                                                                                                                                                                                            |   |
|                      | Consolidated Statements of Stockholders’ Equity (Unaudited) Nine months ended September 30, 2010 and September 30, 2009                                                    | 5      |
|                      |                                                                                                                                                                                            |   |
|                      | Consolidated Statements of Cash Flows (Unaudited) Nine months ended September 30, 2010 and September 30, 2009                                                                                   | 6      |
|                      |                                                                                                                                                                                            |   |
|                      | Notes to the Interim Consolidated Financial Statements                                                                                                                                          | 7      |
|                      |                                                                                                                                                                                            |   |
| Item 2.                   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                     | 16     |
|                      |                                                                                                                                                                                            |   |
| Item 3.                   | Quantitative and Qualitative Disclosures about Market Risk                                                                                                                                      | 24     |
|                      |                                                                                                                                                                                            |   |
| Item 4T.                  | Controls and Procedures                                                                                                                                                                         | 24     |
|                      |                                                                                                                                                                                            |   |
| PART II.                  | OTHER INFORMATION                                                                                                                                                                               |   |
|                      |                                                                                                                                                                                            |   |
| Item 1.                   | Legal Proceedings                                                                                                                                                                               | 24     |
|                      |                                                                                                                                                                                            |   |
| Item 1A.                  | Risk Factors                                                                                                                                                                                    | 24     |
|                      |                                                                                                                                                                                            |   |
| Item 2.                   | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                     | 25     |
|                      |                                                                                                                                                                                            |   |
| Item 3.                   | Defaults Upon Senior Securities                                                                                                                                                                 | 26     |
|                      |                                                                                                                                                                                            |   |
| Item 4.                   | Reserved                                                                                                                                                                                        | 26     |
|                      |                                                                                                                                                                                            |   |
| Item 5.                   | Other Information                                                                                                                                                                               | 26     |
|                      |                                                                                                                                                                                            |   |
| Item 6.                   | Exhibits                                                                                                                                                                                        | 26     |
|                      |                                                                                                                                                                                            |   |
| SIGNATURES                |                                                                                                                                                                                            | 27     |

----

Index

| PART 1. | FINANCIAL INFORMATION |
|---------|-----------------------|

| Item 1. | Consolidated Financial Statements |
|---------|-----------------------------------|

   

| NEFFS BANCORP, INC AND SUBSIDIARY              |
|------------------------------------------------|
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
| (Unaudited)                                    |

|                                                                                                                         |   | September 30, |    |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|--------------|--------|
| Dollars in thousands, except share data                                                                                      |   | 2010          |    |   | 2009         |   |
| ASSETS                                                                                                                       |   |          |    |   |         |   |
|                                                                                                                         |   |          |    |   |         |   |
| Cash and due from banks                                                                                                      |   | $             | 2,740   |   |         | $      | 2,187 |   |
| Interest bearing deposits with banks                                                                                         |   |          | 100     |   |         |   | 101 |   |
| Federal funds sold                                                                                                           |   |          | -       |   |         |   | 2,933 |   |
| Securities available for sale                                                                                                |   |          | 38,349  |   |         |   | 34,991 |   |
| Securities held to maturity, fair value $107,454 in 2010;$97,538 in 2009                                                     |   |          | 106,223 |   |         |   | 100,976 |   |
|                                                                                                                         |   |          |    |   |         |   |   |   |
| Loans                                                                                                                        |   |          | 118,808 |   |         |   | 111,988 |   |
| Less allowance for loan losses                                                                                               |   |          | (1,031  | )      |         |   | (829 | ) |
| Net loans                                                                                                                    |   |          | 117,777 |   |         |   | 111,159 |   |
|                                                                                                                         |   |          |    |   |         |   |   |   |
| Premises and equipment, net                                                                                                  |   |          | 2,383   |   |         |   | 2,446 |   |
| Other real estate owned                                                                                                      |   |          | 468     |   |         |   | - |   |
| Restricted investments in bank stock                                                                                         |   |          | 848     |   |         |   | 848 |   |
| Other assets                                                                                                                 |   |          | 2,968   |   |         |   | 2,536 |   |
| Total assets                                                                                                                 |   | $             | 271,856 |   |         | $      | 258,177 |   |
|                                                                                                                         |   |          |    |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                         |   |          |    |   |         |   |   |   |
|                                                                                                                         |   |          |    |   |         |   |   |   |
| Liabilities:                                                                                                                 |   |          |    |   |         |   |   |   |
| Deposits                                                                                                                     |   |          |    |   |         |   |   |   |
| Non-interest bearing                                                                                                         |   | $             | 17,855  |   |         | $      | 18,177 |   |
| Interest bearing                                                                                                             |   |          | 205,838 |   |         |   | 193,214 |   |
| Total deposits                                                                                                               |   |          | 223,693 |   |         |   | 211,391 |   |
|     Other liabilities                                                                                    |   |          | 1,521   |   |         |   | 1,158 |   |
| Total liabilities                                                                                                            |   |          | 225,214 |   |         |   | 212,549 |   |
|                                                                                                                         |   |          |    |   |         |   |   |   |
| Stockholders' Equity:                                                                                                        |   |          |    |   |         |   |   |   |
| Common stock, $1 par value, authorized 2,500,000 shares;issued 200,000 shares; outstanding shares 2010 180,845; 2009 183,608 |   |          | 200     |   |         |   | 200 |   |
| Paid-in capital                                                                                                              |   |          | 753     |   |         |   | 753 |   |
| Retained earnings                                                                                                            |   |          | 50,153  |   |         |   | 48,255 |   |
| Accumulated other comprehensive income                                                                                       |   |          | 388     |   |         |   | 556 |   |
| Treasury stock, at cost                                                                                                      |   |          | (4,852  | )      |         |   | (4,136 | ) |
| Total stockholders' equity                                                                                                   |   |          | 46,642  |   |         |   | 45,628 |   |
|                                                                                                                         |   |          |    |   |         |   |   |   |
| Total liabilities and stockholders' equity                                                                                   |   | $             | 271,856 |   |         | $      | 258,177 |   |
|                                                                                                                         |   |          |    |   |         |   |   |   |
| See Notes to Consolidated Financial Statements.                                                                              |   |          |    |   |         |   |   |   |

----

Index

   

| NEFFS BANCORP, INC AND SUBSIDIARY |
|-----------------------------------|
| CONSOLIDATED STATEMENTS OF INCOME |
| (Unaudited)                       |

|                                                                                                                                               |   | Three Months EndedSeptember 30, |    |   | Nine Months EndedSeptember 30, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|---------|--------|--------------------------------|--------|
|                                                                                                                                               |   | 2010                            |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Interest income:                                                                                                                                   |   |                            |    |   |                           |   |   |   |   |   |   |   |
|     Interest and fees on loans                                                                                                 |   | $                               | 1,783   |   |                           | $      | 1,717 |   |   | $ | 5,226 |   |   | $ | 5,010 |   |
|     Interest and dividends on investments:                                                                                     |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|            Taxable                                                                          |   |                            | 1,193   |   |                           |   | 1,326 |   |   |   | 3,788 |   |   |   | 3,985 |   |
|            Exempt from federal income taxes                                                 |   |                            | 428     |   |                           |   | 352 |   |   |   | 1,155 |   |   |   | 1,054 |   |
|     Interest on federal funds sold and other                                                                                   |   |                            | 3       |   |                           |   | - |   |   |   | 4 |   |   |   | 4 |   |
|                     Total interest income      |   |                            | 3,407   |   |                           |   | 3,395 |   |   |   | 10,173 |   |   |   | 10,053 |   |
| Interest Expense                                                                                                                                   |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|      Deposits                                                                                                             |   |                            | 1,215   |   |                           |   | 1,373 |   |   |   | 3,700 |   |   |   | 4,174 |   |
|      Borrowings                                                                                                           |   |                            | -       |   |                           |   | 2 |   |   |   | - |   |   |   | 2 |   |
|                     Total interest expense     |   |                            | 1,215   |   |                           |   | 1,375 |   |   |   | 3,700 |   |   |   | 4,176 |   |
|                     Net interest income        |   |                            | 2,192   |   |                           |   | 2,020 |   |   |   | 6,473 |   |   |   | 5,877 |   |
| Provision for loan losses                                                                                                                          |   |                            | 154     |   |                           |   | 60 |   |   |   | 274 |   |   |   | 61 |   |
| Net interest income after Provision for loan losses                                                                                                |   |                            | 2,038   |   |                           |   | 1,960 |   |   |   | 6,199 |   |   |   | 5,816 |   |
| Other income:                                                                                                                                      |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|     Impairment accretion (loss) on securities                                                                                  |   |                            | 8       |   |                           |   | (537 | ) |   |   | (617 | ) |   |   | (537 | ) |
|     Portion of impairment loss (accretion) recognized in other comprehensive income (before tax)                               |   |                            | (8      | )      |                           |   | - |   |   |   | 503 |   |   |   | - |   |
| Net impairment loss                                                                                                                                |   |                            | -       |   |                           |   | (537 | ) |   |   | (114 | ) |   |   | (537 | ) |
|     Service charges on deposit accounts                                                                                        |   |                            | 30      |   |                           |   | 34 |   |   |   | 82 |   |   |   | 88 |   |
|     Other service charges and fees                                                                                             |   |                            | 24      |   |                           |   | 25 |   |   |   | 75 |   |   |   | 70 |   |
| Security gains on called securities                                                                                                                |   |                            | -       |   |                           |   | 10 |   |   |   | 9 |   |   |   | 10 |   |
|     Other income                                                                                                               |   |                            | 10      |   |                           |   | 7 |   |   |   | 32 |   |   |   | 34 |   |
|                     Total other income         |   |                            | 64      |   |                           |   | (461 | ) |   |   | 84 |   |   |   | (335 | ) |
| Other expenses:                                                                                                                                    |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|     Salaries and employee benefits                                                                                             |   |                            | 398     |   |                           |   | 365 |   |   |   | 1,195 |   |   |   | 1,087 |   |
|     Occupancy                                                                                                                  |   |                            | 72      |   |                           |   | 63 |   |   |   | 179 |   |   |   | 167 |   |
|     Furniture and equipment                                                                                                    |   |                            | 65      |   |                           |   | 68 |   |   |   | 198 |   |   |   | 205 |   |
|     Pennsylvania shares tax                                                                                                    |   |                            | 118     |   |                           |   | 118 |   |   |   | 353 |   |   |   | 347 |   |
|     FDIC expense                                                                                                               |   |                            | 53      |   |                           |   | 47 |   |   |   | 153 |   |   |   | 246 |   |
|     Other expenses                                                                                                             |   |                            | 210     |   |                           |   | 173 |   |   |   | 585 |   |   |   | 510 |   |
|                     Total other expenses       |   |                            | 916     |   |                           |   | 834 |   |   |   | 2,663 |   |   |   | 2,562 |   |
|                     Income before income taxes |   |                            | 1,186   |   |                           |   | 665 |   |   |   | 3,620 |   |   |   | 2,919 |   |
| Income tax expense                                                                                                                                 |   |                            | 268     |   |                           |   | 111 |   |   |   | 859 |   |   |   | 648 |   |
|                     Net income                 |   | $                               | 918     |   |                           | $      | 554 |   |   | $ | 2,761 |   |   | $ | 2,271 |   |
| Per share data:                                                                                                                                    |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|     Earnings per share, basic                                                                                                  |   | $                               | 5.07    |   |                           | $      | 2.98 |   |   | $ | 15.15 |   |   | $ | 12.12 |   |
|     Weighted average common shares outstanding                                                                                 |   |                            | 180,999 |   |                           |   | 185,983 |   |   |   | 182,192 |   |   |   | 187,341 |   |
|     Cash dividends declared per share                                                                                          |   | $                               | 2.75    |   |                           | $      | 2.00 |   |   | $ | 4.75 |   |   | $ | 4.00 |   |
|                                                                                                                                               |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.                                                                                                    |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |

----

Index

   

| NEFFS BANCORP, INC AND SUBSIDIARY                           |
|-------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY             |
| Nine months ended September 30, 2010 and September 30, 2009 |
| (Unaudited)                                                 |

|                                                                                                                   |   | CommonStock |   |   | Paid-InCapital |   |   | RetainedEarnings |   |   | AccumulatedOtherComprehensive Income |   |   | TreasuryStock |   |   | TotalStockholders'Equity |   |
|------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|----------------|--------|--------|------------------|--------|--------|--------------------------------------|--------|--------|---------------|--------|--------|--------------------------|--------|
| Balance, December 31, 2008                                                                                             |   | $           | 200    |   |           | $      | 753    |             |   | $      | 45,836                               |   |   | $             | 442    |   |                     | $      | (2,702 | ) |   | $ | 44,529 |   |
|     Comprehensive Income:                                                                          |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   |   |   |
|        Net income                                                                   |   |        | -      |   |           |   | -      |             |   |   | 2,271                                |   |   |          | -      |   |                     |   | - |   |   |   | 2,271 |   |
|        Change in unrealized net gains                                               |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   |   |   |
| on securities available for sale,                                                                                      |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   |   |   |
| net of tax                                                                                                             |   |        | -      |   |           |   | -      |             |   |   | -                                    |   |   |          | 348    |   |                     |   | - |   |   |   | 348 |   |
|           Total comprehensive income                                 |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   | 2,619 |   |
|     Cash dividends declared on common                                                              |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   |   |   |
|           stock, $4.00  per share                          |   |        | -      |   |           |   | -      |             |   |   | (742                                 | )      |   |          | -      |   |                     |   | - |   |   |   | (742 | ) |
|    Purchase of treasury stock          (5,542 shares) |   |        | -      |   |           |   | -      |             |   |   | -                                    |   |   |          | -      |   |                     |   | (1,408 | ) |   |   | (1,408 | ) |
|                                                                                                                   |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   |   |   |
| Balance, September 30, 2009                                                                                            |   | $           | 200    |   |           | $      | 753    |             |   | $      | 47,365                               |   |   | $             | 790    |   |                     | $      | (4,110 | ) |   | $ | 44,998 |   |
|                                                                                                                   |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   |   |   |
|                                                                                                                   |   | CommonStock |   |   | Paid-InCapital |   |   | RetainedEarnings |   |   | AccumulatedOtherComprehensive Income |   |   | TreasuryStock |   |   | TotalStockholders'Equity |   |
| Balance, December 31, 2009                                                                                             |   | $           | 200    |   |           | $      | 753    |             |   | $      | 48,255                               |   |   | $             | 556    |   |                     | $      | (4,136 | ) |   | $ | 45,628 |   |
|     Comprehensive Income:                                                                          |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   |   |   |
|        Net income                                                                   |   |        | -      |   |           |   | -      |             |   |   | 2,761                                |   |   |          | -      |   |                     |   | - |   |   |   | 2,761 |   |
|        Change in unrealized net gain                                                |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   |   |   |
| on securities available for sale,                                                                                      |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   |   |   |
| net of tax                                                                                                             |   |        | -      |   |           |   | -      |             |   |   | -                                    |   |   |          | 163    |   |                     |   | - |   |   |   | 163 |   |
| Unrealized losses on OTTI securities held to maturity, net of tax                                                      |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          | (331   | )      |                     |   |   |   |   |   | (331 | ) |
|           Total comprehensive income                                 |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   | 2,924 |   |
|     Cash dividends declared on common                                                              |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   |   |   |
|           stock, $4.75  per share                          |   |        | -      |   |           |   | -      |             |   |   | (863                                 | )      |   |          | -      |   |                     |   | - |   |   |   | (863 | ) |
|    Purchase of treasury stock          (2,763 shares) |   |        | -      |   |           |   | -      |             |   |   | -                                    |   |   |          | -      |   |                     |   | (716 | ) |   |   | (716 | ) |
|                                                                                                                   |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   |   |   |
| Balance, September 30, 2010                                                                                            |   | $           | 200    |   |           | $      | 753    |             |   | $      | 50,153                               |   |   | $             | 388    |   |                     | $      | (4,852 | ) |   | $ | 46,642 |   |
|                                                                                                                   |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.                                                                        |   |        |   |   |           |   |   |             |   |   |                                 |   |   |          |   |   |                     |   |   |   |   |

----

Index

   

| NEFFS BANCORP, INC AND SUBSIDIARY     |
|---------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Unaudited)                           |

|                                                   |   | Nine Months Ended September 30, |    |
|--------------------------------------------------------|--------|---------------------------------|---------|
|                                                   |   | 2010                            |    |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                   |   |                            |    |   |   |   |
| Net income                                             |   | $                               | 2,761   |   |   | $ | 2,271 |   |
| Adjustments to reconcile net income to net cash        |   |                            |    |   |   |   |   |   |
| provided by operating activities:                      |   |                            |    |   |   |   |   |   |
| Depreciation                                           |   |                            | 164     |   |   |   | 166 |   |
| Provision for loan losses                              |   |                            | 274     |   |   |   | 61 |   |
| Net accretion of securities premiums/discounts         |   |                            | (238    | ) |   |   | (530 | ) |
| Impairment loss on securities                          |   |                            | 114     |   |   |   | 537 |   |
| Security gains on called securities                    |   |                            | (9      | ) |   |   | (10 | ) |
| Change in assets and liabilities:                      |   |                            |    |   |   |   |   |   |
| Decrease (increase) in:                                |   |                            |    |   |   |   |   |   |
| Accrued interest receivable                            |   |                            | (219    | ) |   |   | (302 | ) |
| Pennsylvania shares tax                                |   |                            | (118    | ) |   |   | (115 | ) |
| Other assets                                           |   |                            | (7      | ) |   |   | 151 |   |
| Decrease in:                                           |   |                            |    |   |   |   |   |   |
| Accrued interest payable                               |   |                            | (99     | ) |   |   | (153 | ) |
| Other liabilities                                      |   |                            | (35     | ) |   |   | (1 | ) |
| Net cash provided by operating activities              |   |                            | 2,588   |   |   |   | 2,075 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                   |   |                            |    |   |   |   |   |   |
| Net decrease in interest bearing deposits              |   |                            |    |   |   |   |   |   |
|   with banks                                 |   |                            | 1       |   |   |   | 9 |   |
| Net decrease in federal funds sold                     |   |                            | 2,933   |   |   |   | 1,379 |   |
| Purchase of securities available for sale              |   |                            | (11,220 | ) |   |   | (5,352 | ) |
| Proceeds from maturities/calls of securities available |   |                            |    |   |   |   |   |   |
|   for sale                                   |   |                            | 8,026   |   |   |   | 7,547 |   |
| Purchase of securities held to maturity                |   |                            | (54,093 | ) |   |   | (43,700 | ) |
| Proceeds from maturities/calls of securities held to   |   |                            |    |   |   |   |   |   |
|   maturity                                   |   |                            | 48,559  |   |   |   | 32,870 |   |
| Net increase in investment in restricted bank stock    |   |                            | -       |   |   |   | (31 | ) |
| Net increase in loans                                  |   |                            | (7,360  | ) |   |   | (8,767 | ) |
| Purchases of premises and equipment                    |   |                            | (101    | ) |   |   | (275 | ) |
| Net cash used by investing activities                  |   |                            | (13,255 | ) |   |   | (16,320 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES                   |   |                            |    |   |   |   |   |   |
| Net increase in deposits                               |   |                            | 12,302  |   |   |   | 14,350 |   |
| Net increase in short-term borrowings                  |   |                            | -       |   |   |   | 1,725 |   |
| Dividends paid                                         |   |                            | (366    | ) |   |   | (375 | ) |
| Purchase of treasury stock                             |   |                            | (716    | ) |   |   | (1,408 | ) |
| Net cash provided by financing activities              |   |                            | 11,220  |   |   |   | 14,292 |   |
| Increase in cash and cash equivalents                  |   |                            | 553     |   |   |   | 47 |   |
| Cash and cash equivalents:                             |   |                            |    |   |   |   |   |   |
| Beginning                                              |   |                            | 2,187   |   |   |   | 2,489 |   |
| Ending                                                 |   | $                               | 2,740   |   |   | $ | 2,536 |   |
| Supplementary Cash Flows Information                   |   |                            |    |   |   |   |   |   |
| Interest Paid                                          |   | $                               | 3,799   |   |   | $ | 4,329 |   |
| Income Taxes Paid                                      |   | $                               | 1,012   |   |   | $ | 500 |   |
| Supplementary Non-Cash Flow Information                |   |                            |    |   |   |   |   |   |
| Transfer from loans to other real estate owned         |   | $                               | 468     |   |   | $ | - |   |
|                                                   |   |                            |    |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.        |   |                            |    |   |   |   |   |   |

----

Index

NEFFS

|                                                            |   | Three MonthsEndedSeptember 30, |   |   | Nine MonthsEndedSeptember 30, |   |
|-----------------------------------------------------------------|--------|--------------------------------|--------|--------|-------------------------------|--------|
| Dollars in thousands                                            |   | 2010                           |   |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
|                                                            |   |                           |   |
| Change in unrealized net gains on securities available for sale |   | $                              | (336   | )      |                          | $      | 303 |   |   | $ | 247 |   |   | $ | 528 |   |
| Change in unrealized losses on OTTI securities held to maturity |   |                           | 9      |   |                          |   | - |   |   |   | (502 | ) |   |   | - |   |
| Tax effect                                                      |   |                           | 111    |   |                          |   | (103 | ) |   |   | 87 |   |   |   | (180 | ) |
|                                                            |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss), net of tax                   |   | $                              | (216   | )      |                          | $      | 200 |   |   | $ | (168 | ) |   | $ | 348 |   |

----

Index

|                                                          |   | September 30, 2010 |    |
|---------------------------------------------------------------|--------|--------------------|---------|
|                                                          |   | AmortizedCost      |    |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | FairValue |   |
| Securities Available for Sale:                                |   | (In Thousands)     |    |
| U.S. Treasury note                                            |   | $                  | 100     |   |   | $ | 7 |   |   | $ | - |   |   | $ | 107 |   |
| Mortgage-backed securities (Government agencies- residential) |   |               | 36,869  |   |   |   | 1,456 |   |   |   | (83 | ) |   |   | 38,242 |   |
|                                                          |   | $                  | 36,969  |   |   | $ | 1,463 |   |   | $ | (83 | ) |   | $ | 38,349 |   |
| Securities Held to Maturity:                                  |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of U.S. Government agencies                       |   | $                  | 40,987  |   |   | $ | 589 |   |   | $ | (162 | ) |   | $ | 41,414 |   |
| Obligations of states and political subdivisions              |   |               | 60,767  |   |   |   | 2,466 |   |   |   | (37 | ) |   |   | 63,196 |   |
| Corporate securities                                          |   |               | 1,350   |   |   |   | 90 |   |   |   | - |   |   |   | 1,440 |   |
| Collateralized debt obligations                               |   |               | 2,385   |   |   |   | - |   |   |   | (1,781 | ) |   |   | 604 |   |
| Mortgage-backed securities (Government agencies- residential) |   |               | 734     |   |   |   | 66 |   |   |   | - |   |   |   | 800 |   |
|                                                          |   | $                  | 106,223 |   |   | $ | 3,211 |   |   | $ | (1,980 | ) |   | $ | 107,454 |   |

----

Index

|                                                          |   | December 31, 2009 |    |
|---------------------------------------------------------------|--------|-------------------|---------|
|                                                          |   | AmortizedCost     |    |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | FairValue |   |
| Securities Available for Sale:                                |   | (In Thousands)    |    |
| U.S. Treasury note                                            |   | $                 | 100     |   |   | $ | 4 |   |   | $ | - |   |   | $ | 104 |   |
| Mortgage-backed securities (Government agencies- residential) |   |              | 33,758  |   |   |   | 1,144 |   |   |   | (15 | ) |   |   | 34,887 |   |
|                                                          |   | $                 | 33,858  |   |   | $ | 1,148 |   |   | $ | (15 | ) |   | $ | 34,991 |   |
| Securities Held to Maturity:                                  |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of U.S. Government agencies                       |   | $                 | 59,576  |   |   | $ | 231 |   |   | $ | (2,832 | ) |   | $ | 56,975 |   |
| Obligations of states and political subdivisions              |   |              | 36,257  |   |   |   | 1,340 |   |   |   | (139 | ) |   |   | 37,458 |   |
| Corporate securities                                          |   |              | 1,350   |   |   |   | 44 |   |   |   | (5 | ) |   |   | 1,389 |   |
| Collateralized debt obligations                               |   |              | 2,955   |   |   |   | - |   |   |   | (2,122 | ) |   |   | 833 |   |
| Mortgage-backed securities (Government agencies- residential) |   |              | 838     |   |   |   | 45 |   |   |   | - |   |   |   | 883 |   |
|                                                          |   | $                 | 100,976 |   |   | $ | 1,660 |   |   | $ | (5,098 | ) |   | $ | 97,538 |   |

|                                   |   | Available for Sale |   |   | Held to Maturity |   |
|----------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                   |   | AmortizedCost      |   |   | FairValue        |   |   | AmortizedCost |   |   | FairValue |   |
|                                   |   | (In Thousands)     |   |
| Due in one year or less                |   | $                  | -      |   |             | $      | - |   |   | $ | 1,255 |   |   | $ | 1,287 |   |
| Due after one year through five years  |   |               | 100    |   |             |   | 107 |   |   |   | 6,951 |   |   |   | 7,249 |   |
| Due after five years through ten years |   |               | -      |   |             |   | - |   |   |   | 12,928 |   |   |   | 13,468 |   |
| Due after ten years                    |   |               | -      |   |             |   | - |   |   |   | 84,355 |   |   |   | 84,650 |   |
|                                   |   |               | 100    |   |             |   | 107 |   |   |   | 105,489 |   |   |   | 106,654 |   |
| Mortgage-backed securities             |   |               | 36,869 |   |             |   | 38,242 |   |   |   | 734 |   |   |   | 800 |   |
|                                   |   | $                  | 36,969 |   |             | $      | 38,349 |   |   | $ | 106,223 |   |   | $ | 107,454 |   |

----

Index

|                                             |   | Less than 12 Months |   |   | 12 Months or More |   |   | Total     |
|--------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|--------|-----------|
|                                             |   | FairValue           |   |   | UnrealizedLosses  |   |   | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |
| September 30, 2010:                              |   | (In Thousands)      |   |
| Securities Available for Sale:                   |   |                |   |   |              |   |   |      |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities                       |   | $                   | 10,614 |   |              | $      | 83     |      |   | $ | - |   |   | $ | - |   |   | $ | 10,614 |   |   | $ | 83 |   |
| Securities Held to Maturity:                     |   |                |   |   |              |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of U.S. Government agencies          |   |                | 5,776  |   |              |   | 56     |      |   |   | 5,256 |   |   |   | 106 |   |   |   | 11,032 |   |   |   | 162 |   |
| Obligations of states and political subdivisions |   |                | 3,127  |   |              |   | 37     |      |   |   | - |   |   |   | - |   |   |   | 3,127 |   |   |   | 37 |   |
| Collateralized debt obligations                  |   |                | -      |   |              |   | -      |      |   |   | 604 |   |   |   | 1,781 |   |   |   | 604 |   |   |   | 1,781 |   |
| Total Temporarily Impaired Securities            |   | $                   | 19,517 |   |              | $      | 176    |      |   | $ | 5,860 |   |   | $ | 1,887 |   |   | $ | 25,377 |   |   | $ | 2,063 |   |

|                                             |   | Less than 12 Months |   |   | 12 Months or More |   |   | Total     |
|--------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|--------|-----------|
|                                             |   | FairValue           |   |   | UnrealizedLosses  |   |   | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |
| December 31, 2009:                               |   | (In Thousands)      |   |
| Securities Available for Sale:                   |   |                |   |   |              |   |   |      |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities                       |   | $                   | 981    |   |              | $      | 15     |      |   | $ | - |   |   | $ | - |   |   | $ | 981 |   |   | $ | 15 |   |
| Securities Held to Maturity:                     |   |                |   |   |              |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of U.S. Government agencies          |   |                | 39,065 |   |              |   | 2,379  |      |   |   | 9,672 |   |   |   | 453 |   |   |   | 48,737 |   |   |   | 2,832 |   |
| Obligations of states and political subdivisions |   |                | 5,422  |   |              |   | 137    |      |   |   | 297 |   |   |   | 2 |   |   |   | 5,719 |   |   |   | 139 |   |
| Corporate securities                             |   |                | -      |   |              |   | -      |      |   |   | 195 |   |   |   | 5 |   |   |   | 195 |   |   |   | 5 |   |
| Collateralized debt obligations                  |   |                | -      |   |              |   | -      |      |   |   | 832 |   |   |   | 2,122 |   |   |   | 832 |   |   |   | 2,122 |   |
| Total Temporarily Impaired Securities            |   | $                   | 45,468 |   |              | $      | 2,531  |      |   | $ | 10,996 |   |   | $ | 2,582 |   |   | $ | 56,464 |   |   | $ | 5,113 |   |

----

Index

| Description                                   |   | Total  |   |   | (Level 1)Quoted Prices in Active Markets for Identical Assets |   |   | (Level 2)Significant Other Observable Inputs |   |   | (Level 3)Significant Unobservable Inputs |   |
|-----------------------------------------------|--------|--------|--------|--------|---------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|------------------------------------------|--------|
|                                          |   |   |   |   | (In Thousands)                                                |   |   |                                         |   |   |                                     |   |
| September 30, 2010                            |   |   |   |   |                                                          |   |   |                                         |   |   |                                     |   |
| U. S. Treasury note available for sale        |   | $      | 107    |   |                                                          | $      | 107    |                                         |   |   | -                                        |   |   |   | - |   |
| Mortgage-backed securities available for sale |   | $      | 38,242 |   |                                                          |   | -      |                                         |   | $      | 38,242                                   |   |   |   | - |   |
| December 31, 2009                             |   |   |   |   |                                                          |   |   |                                         |   |   |                                     |   |   |   |   |   |
| U. S. Treasury note available for sale        |   | $      | 104    |   |                                                          | $      | 104    |                                         |   |   | -                                        |   |   |   | - |   |
| Mortgage-backed securities available for sale |   | $      | 34,887 |   |                                                          |   | -      |                                         |   | $      | 34,887                                   |   |   |   | - |   |

| Description                                          |   | Total  |   |   | (Level 1)Quoted Prices in Active Markets for Identical Assets |   |   | (Level 2)Significant Other Observable Inputs |   |   | (Level 3)Significant Unobservable Inputs |   |
|------------------------------------------------------|--------|--------|--------|--------|---------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|------------------------------------------|--------|
|                                                 |   |   |   |   | (In Thousands)                                                |   |   |                                         |   |   |                                     |   |
| September 30, 2010                                   |   |   |   |   |                                                          |   |   |                                         |   |   |                                     |   |
| Impaired trust preferred securities held to maturity |   | $      | 428    |   |                                                          |   | -      |                                         |   |   | -                                        |   |   | $ | 428 |   |
| Impaired loans                                       |   | $      | 2,429  |   |                                                          |   | -      |                                         |   | $      | 2,249                                    |   |   |   | - |   |
| Other real estate owned                              |   | $      | 468    |   |                                                          |   | -      |                                         |   | $      | 468                                      |   |   |   | - |   |
| December 31, 2009                                    |   |   |   |   |                                                          |   |   |                                         |   |   |                                     |   |   |   |   |   |
| Impaired trust preferred security held to maturity   |   | $      | 65     |   |                                                          |   | -      |                                         |   |   | -                                        |   |   | $ | 65 |   |

----

Index

|                                                                                  |   | Impaired trust preferred securities held to maturity |   |
|---------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|
|                                                                                  |   | (In Thousands)                                       |   |
| Book/fair value of previously impaired held to maturity security at December 31, 2009 |   | $                                                    | 65     |   |
| Book value of currently impaired held to maturity security at December 31, 2009       |   |                                                 | 990    |   |
| Credit related impairment                                                             |   |                                                 | (114   | ) |
| Non-credit related impairment                                                         |   |                                                 | (519   | ) |
| Accretion of impaired securities                                                      |   |                                                 | 16     |   |
| Principal payment on impaired securities                                              |   |                                                 | (10    | ) |
| Book value of impaired securities at September 30, 2010                               |   | $                                                    | 428    |   |

----

Index

|                                               |   | 2010           |    |   | 2009               |   |
|----------------------------------------------------|--------|----------------|---------|--------|--------------------|--------|
|                                               |   | CarryingAmount |    |   | EstimatedFairValue |   |   | CarryingAmount |   |   | EstimatedFairValue |   |
|                                               |   | (In Thousands) |    |
| Financial assets:                                  |   |           |    |   |               |   |   |   |   |   |   |   |
| Cash and short-term investments                    |   | $              | 2,840   |   |               | $      | 2,840 |   |   | $ | 2,288 |   |   | $ | 2,288 |   |
| Federal funds sold                                 |   |           | -       |   |               |   | - |   |   |   | 2,933 |   |   |   | 2,933 |   |
| Securities available for sale                      |   |           | 38,349  |   |               |   | 38,349 |   |   |   | 34,991 |   |   |   | 34,991 |   |
| Securities held to maturity                        |   |           | 106,223 |   |               |   | 107,454 |   |   |   | 100,976 |   |   |   | 97,538 |   |
| Loans, net                                         |   |           | 117,777 |   |               |   | 122,932 |   |   |   | 111,159 |   |   |   | 114,291 |   |
| Accrued interest receivable                        |   |           | 1,830   |   |               |   | 1,830 |   |   |   | 1,611 |   |   |   | 1,611 |   |
|                                               |   |           |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                             |   |           |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                           |   |           | 223,693 |   |               |   | 227,631 |   |   |   | 211,391 |   |   |   | 214,651 |   |
| Accrued interest payable                           |   |           | 948     |   |               |   | 948 |   |   |   | 1,047 |   |   |   | 1,047 |   |
|                                               |   |           |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Off-balance sheet financial instruments:           |   |           |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to extend credit and letters of credit |   |           | -       |   |               |   | - |   |   |   | - |   |   |   | - |   |

----

Index

|   | § | the few observable transactions and market quotations that are available are not reliable for purposes of determining fair value at September 30, 2010, |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | an income valuation approach technique (present value technique) that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs will be equally or more representative of fair value than the market approach valuation technique used at prior measurement dates, and; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | our Trust Preferred Collateralized Debt Obligations (TRUP CDOs) are classified within Level 3 of the fair value hierarchy because we determined that significant adjustments are required to determine fair value at the measurement date. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | 1. | There were a number of assumptions used and the results of the modeling were highly dependent upon the assumptions. |
|--------|----|---------------------------------------------------------------------------------------------------------------------|

|   | 2. | Credit and prepayment assumptions were used for each quarter. |
|--------|----|---------------------------------------------------------------|

|   | 3. | Forward interest rates were used to project future principal and interest payments.  This allowed the analysts to model the impact of over- or under-collateralization for each transaction.  (Higher interest rates generally increase the credit stress on under-collateralized transactions by reducing excess interest, which is the difference between the interest received from the underlying collateral and the interest paid on the rated bonds.) |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Original face purchased, current book value (as of September 30, 2010), purchase date, and purchase price were used to produce the calculations. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | The basic methodology of ASC 325 was to compare the present value of the cash flows from quarter to quarter.  A decline in the present value versus that for the previous quarter was considered to be an “adverse change.” |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | ASC 325 prescribes using a discount rate “equal to the current yield used to accrete the beneficial interest.”  Original discount margin calculated as of the purchase date passed on purchase price was used to calculate the discount rate.  The original discount margin is then added to the appropriate forward 3-month LIBOR rate to determine the discount rate.  For fixed/floating securities, the original coupon is used as the discount rate for the remaining fixed-rate portion of the security’s estimated life. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | The discount rate was then used to calculate the present value for the current quarter’s projected cash flows. |
|--------|----|----------------------------------------------------------------------------------------------------------------------|

|   | 8. | The result calculated for the current quarter was then compared to the previous quarter’s book value to determine if the change is “adverse.” |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9. | The credit component of any impairment should be the difference between book value and the projected present value for the current quarter. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | A reporting entity to disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In the reconciliation for fair value measurements using significant unobservable inputs, a reporting entity should present separately information about purchases, sales, issuances, and settlements. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | For purposes of reporting fair value measurement for each class of assets and liabilities, a reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | A reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

   

| Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

----

Index

|   | v | operating, legal and regulatory risks; |
|--------|---|----------------------------------------|

|   | v | economic, political, and competitive forces affecting banking, securities, asset management and credit services businesses; and |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------|

|   | v | the risk that management’s analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

----

Index

|                                      |   | September 30,2010 |   |   | December 31,2009 |   |
|-------------------------------------------|--------|-------------------|--------|--------|------------------|--------|
| Non-accruing loans                        |   | $                 | 2,452  |   |             | $      | - |   |
| Accruing loans past 90 days or more       |   |              | 437    |   |             |   | 202 |   |
| Total nonperforming loans                 |   |              | 2,889  |   |             |   | 202 |   |
| Foreclosed real estate/repossessed assets |   |              | 468    |   |             |   | - |   |
| Total nonperforming assets                |   | $                 | 3,357  |   |             | $      | 202 |   |
|                                      |   |              |   |   |             |   |   |   |
| Nonperforming loans to total loans        |   |              | 2.43   | %      |             |   | 0.18 | % |
| Nonperforming assets to total assets      |   |              | 1.23   | %      |             |   | 0.08 | % |

|                                                                            |   | Nine Months Ended September 30, |   |
|---------------------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                                            |   | 2010                            |   |   | 2009 |   |
| Balance at beginning of period                                                  |   | $                               | 829    |   |   | $ | 761 |   |
| Provisions charged to operating expenses                                        |   |                            | 274    |   |   |   | 61 |   |
| Recoveries of loans previously charged-off                                      |   |                            |   |   |   |   |   |   |
|      Commercial real estate                            |   |                            | -      |   |   |   | - |   |
|      Commercial non-real estate                        |   |                            | -      |   |   |   | - |   |
|      Residential real estate                           |   |                            | -      |   |   |   | - |   |
|      Other consumer                                    |   |                            | 5      |   |   |   | - |   |
| Total recoveries                                                                |   |                            | 5      |   |   |   | - |   |
| Loans charged-off:                                                              |   |                            |   |   |   |   |   |   |
|      Commercial real estate                            |   |                            | (23    | ) |   |   | - |   |
|      Commercial non-real estate                        |   |                            | -      |   |   |   | - |   |
|      Residential real estate                           |   |                            | (39    | ) |   |   | - |   |
|      Other consumer                                    |   |                            | (15    | ) |   |   | (14 | ) |
| Total charged-off                                                               |   |                            | (77    | ) |   |   | (14 | ) |
| Net charge-offs                                                                 |   |                            | (72    | ) |   |   | (14 | ) |
| Balance at end of period                                                        |   | $                               | 1,031  |   |   | $ | 808 |   |
| Net charge-offs as a percentage of average                                      |   |                            |   |   |   |   |   |   |
|           loans outstanding   |   |                            | 0.06   | % |   |   | 0.01 | % |
| Allowance for loan losses as a percentage of                                    |   |                            |   |   |   |   |   |   |
|           period-end loans    |   |                            | 0.87   | % |   |   | 0.74 | % |
| Allowance for loan losses as a percentage of                                    |   |                            |   |   |   |   |   |   |
|           nonperforming loans |   |                            | 35.69  | % |   |   | 132.46 | % |

----

Index

|                                  |   | At September 30,       |    |
|---------------------------------------|--------|------------------------|---------|
|                                  |   | (Dollars in thousands) |    |
|                                  |   | 2010                   |    |   | 2009 |   |
|                                  |   | Balance                |    |   | AverageYield |   |   | Balance |   |   | AverageYield |   |
| Demand deposits:                      |   |                   |    |   |   |   |   |   |   |   |   |   |
|    Noninterest-bearing |   | $                      | 17,855  |   |   |   |   |   | $ | 17,326 |   |   |   |   |
|    Interest-bearing    |   |                   | 7,217   |   |   |   | 0.34 | % |   |   | 6,960 |   |   |   | 0.44 | % |
| Savings                               |   |                   | 64,760  |   |   |   | 0.95 | % |   |   | 56,608 |   |   |   | 1.33 | % |
| Time deposits:                        |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    <$100,000        |   |                   | 86,147  |   |   |   | 2.86 | % |   |   | 81,194 |   |   |   | 3.57 | % |
|    >$100,000        |   |                   | 47,714  |   |   |   | 3.70 | % |   |   | 45,200 |   |   |   | 3.96 | % |
| Total deposits                        |   | $                      | 223,693 |   |   |   |   |   |   | $ | 207,288 |   |   |   |   |   |

----

Index

|                                            |   | September 30,2010 |   |   | December 31,2009 |   |   | For CapitalAdequacyPurposes |   |   | To be WellCapitalizedUnder PromptCorrective ActionProvision |   |
|-------------------------------------------------|--------|-------------------|--------|--------|------------------|--------|--------|-----------------------------|--------|--------|-------------------------------------------------------------|--------|
| Risk-based capital ratios:                      |   |              |   |   |             |   |   |                        |   |   |                                                        |   |
|      Tier 1 Capital    |   |              | 31.0   | %      |             |   | 32.1   | %                           |   |   | 4.0                                                         | %      |   |   | 6.0 | % |
|      Total Capital     |   |              | 31.7   | %      |             |   | 32.7   | %                           |   |   | 8.0                                                         | %      |   |   | 10.0 | % |
|      Leveraged Capital |   |              | 16.8   | %      |             |   | 17.5   | %                           |   |   | 4.0                                                         | %      |   |   | 5.0 | % |

----

Index

   

| Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
|---------|------------------------------------------------------------|

   

| Item 4T. | Controls and Procedures |
|----------|-------------------------|

   

| PART II. | OTHER INFORMATION |
|----------|-------------------|

   

| Item 1. | Legal Proceedings |
|---------|-------------------|

   

| Item 1A. | Risk Factors |
|----------|--------------|

----

Index

   

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
|---------|-------------------------------------------------------------|

----

Index

|                                   |   | Total Number ofShares Purchased |   |   | Average PricePaid per Share |   |   | Total Numberof Shares Purchased as Part of PubliclyAnnounced Plansor Programs |   | Maximum Numberof  Shares that mayyet be PurchasedUnder thePlans or Programs |
|----------------------------------------|--------|---------------------------------|--------|--------|-----------------------------|--------|--------|-------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|
| July 1 through July 31, 2010           |   |                            | 25     |   |                        | $      | 270    |                                                                          |   |                                                                                  | - |   | NA |
| August 1 through August 31, 2010       |   |                            | 175    |   |                        |   | 270    |                                                                          |   |                                                                                  | - |   | NA |
| September 1 through September 30, 2010 |   |                            | 50     |   |                        |   | 270    |                                                                          |   |                                                                                  | - |   | NA |
| Total                                  |   |                            | 250    |   |                        | $      | 270    |                                                                          |   |                                                                                  | - |   | NA |

   

| Item 3. | Defaults Upon Senior Securities |
|---------|---------------------------------|

   

| Item 4. | Removed and Reserved |
|---------|----------------------|

   

| Item 5. | Other Information |
|---------|-------------------|

   

| Item 6. | Exhibits |
|---------|----------|

|   | 3(i)   | Amended and Restated Articles of Incorporation for Neffs Bancorp, Inc. (Incorporated by reference to Exhibit 3(i) to the Form 10 filed with the Commission on April 27, 2001, as amended on September 29, 2001 and July 20, 2001.) |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                               |
|   | 3(ii)  | Amended and Restated By-laws of Neffs Bancorp, Inc. (Incorporated by reference to Exhibit 99.1 to the Form 8K filed with the Commission on February 27, 2002.)                                                                     |
|   |   |                                                                                                                                                                                                                               |
|   | 31.1   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002.                                                                                                                                |
|   |   |                                                                                                                                                                                                                               |
|   | 31.2   | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002.                                                                                                                            |
|   |   |                                                                                                                                                                                                                               |
|   | 32.1   | Certification of Chief Executive Officer pursuant to Section 1350 of the Sarbanes Oxley Act of 2002.                                                                                                                               |
|   |   |                                                                                                                                                                                                                               |
|   | 32.2   | Certification of Principal Financial Officer pursuant to Section 1350 of the Sarbanes Oxley Act of 2002.                                                                                                                           |

----

Index

SIGNATURES

|                                | NEFFS BANCORP, INC.              |   |
|-------------------------------------|----------------------------------|--------|
|                                |                             |   |   |
| Date:  November 15, 2010  |  /s/ John J. Remaley   |   |
|                                |  John J. Remaley, President |   |
|                                |                             |
|                                |                             |   |