----

----

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

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

----

NEFFS

| PART I.                      | FINANCIAL INFORMATION                                                                       |   |
|------------------------------|---------------------------------------------------------------------------------------------|--------|
|                         |                                                                                        |   |
| Item 1.                      | Consolidated Financial Statements                                                           |   |
|                         |                                                                                        |   |
|                         | Consolidated Statements of Financial Condition (Unaudited)                                  |   |
|                         | March 31, 2010 and December 31, 2009                                                        | 3      |
|                         |                                                                                        |   |
|                         | Consolidated Statements of Income (Unaudited)                                               |   |
|                         | Three months ended March 31, 2010 and March 31, 2009                                        | 4      |
|                         |                                                                                        |   |
|                         | Consolidated Statements of Stockholders’ Equity (Unaudited)                           |   |
|                         | Three months ended March 31, 2010 and March 31, 2009                                        | 5      |
|                         |                                                                                        |   |
|                         | Consolidated Statements of Cash Flows (Unaudited)                                           |   |
|                         | Three months ended March 31, 2010 and March 31, 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                                  | 22     |
|                         |                                                                                        |   |
| Item 4T.                     | Controls and Procedures                                                                     | 22     |
|                         |                                                                                        |   |
| PART II.                     | OTHER INFORMATION                                                                           |   |
|                         |                                                                                        |   |
| Item 1.                      | Legal Proceedings                                                                           | 23     |
|                         |                                                                                        |   |
| Item 1A.                     | Risk Factors                                                                                | 23     |
|                         |                                                                                        |   |
| Item 2.                      | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 23     |
|                         |                                                                                        |   |
| Item 3.                      | Defaults Upon Senior Securities                                                             | 24     |
|                         |                                                                                        |   |
| Item 4.                      | Submission of Matters to a Vote of Security Holders                                         | 24     |
|                         |                                                                                        |   |
| Item 5.                      | Other Information                                                                           | 24     |
|                         |                                                                                        |   |
| Item 6.                      | Exhibits                                                                                    | 24     |
|                         |                                                                                        |   |
| SIGNATURES    |                                                                                        | 25     |

----

Index

PART

Item

NEFFS

|                                                           |   | March 31, |    |   | December 31, |   |
|----------------------------------------------------------------|--------|-----------|---------|--------|--------------|--------|
| Dollars in thousands, except share data                        |   | 2010      |    |   | 2009         |   |
| ASSETS                                                         |   |      |    |   |         |   |
|                                                           |   |      |    |   |         |   |
| Cash and due from banks                                        |   | $         | 7,668   |   |         | $      | 2,187 |   |
| Interest bearing deposits with banks                           |   |      | 101     |   |         |   | 101 |   |
| Federal funds sold                                             |   |      | -       |   |         |   | 2,933 |   |
| Securities available for sale                                  |   |      | 32,736  |   |         |   | 34,991 |   |
| Securities held to maturity, fair value                        |   |      |    |   |         |   |   |   |
| $103,327 in 2010;$97,538 in 2009                               |   |      | 104,426 |   |         |   | 100,976 |   |
|                                                           |   |      |    |   |         |   |   |   |
| Loans                                                          |   |      | 113,193 |   |         |   | 111,988 |   |
| Less allowance for loan losses                                 |   |      | (825    | )      |         |   | (829 | ) |
| Net loans                                                      |   |      | 112,368 |   |         |   | 111,159 |   |
|                                                           |   |      |    |   |         |   |   |   |
| Premises and equipment, net                                    |   |      | 2,400   |   |         |   | 2,446 |   |
| Restricted investments in bank stock                           |   |      | 848     |   |         |   | 848 |   |
| Other assets                                                   |   |      | 3,053   |   |         |   | 2,536 |   |
| Total assets                                                   |   | $         | 263,600 |   |         | $      | 258,177 |   |
|                                                           |   |      |    |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                           |   |      |    |   |         |   |   |   |
|                                                           |   |      |    |   |         |   |   |   |
| Liabilities:                                                   |   |      |    |   |         |   |   |   |
| Deposits                                                       |   |      |    |   |         |   |   |   |
| Non-interest bearing                                           |   | $         | 16,034  |   |         | $      | 18,177 |   |
| Interest bearing                                               |   |      | 200,266 |   |         |   | 193,214 |   |
| Total deposits                                                 |   |      | 216,300 |   |         |   | 211,391 |   |
| Other liabilities                                              |   |      | 1,567   |   |         |   | 1,158 |   |
| Total liabilities                                              |   |      | 217,867 |   |         |   | 212,549 |   |
|                                                           |   |      |    |   |         |   |   |   |
| Stockholders' Equity:                                          |   |      |    |   |         |   |   |   |
| Common stock, $1 par value, authorized 2,500,000 shares;       |   |      |    |   |         |   |   |   |
| issued 200,000 shares;                                         |   |      | 200     |   |         |   | 200 |   |
| Paid-in capital                                                |   |      | 753     |   |         |   | 753 |   |
| Retained earnings                                              |   |      | 48,712  |   |         |   | 48,255 |   |
| Accumulated other comprehensive income                         |   |      | 362     |   |         |   | 556 |   |
| Treasury stock, at cost 2010 17,009 shares; 2009 16,392 shares |   |      | (4,294  | )      |         |   | (4,136 | ) |
| Total stockholders' equity                                     |   |      | 45,733  |   |         |   | 45,628 |   |
|                                                           |   |      |    |   |         |   |   |   |
| Total liabilities and stockholders' equity                     |   | $         | 263,600 |   |         | $      | 258,177 |   |
|                                                           |   |      |    |   |         |   |   |   |
| See Notes to Consolidated Financial Statements.                |   |      |    |   |         |   |   |   |

----

Index

NEFFS

| Dollars in thousands, except per share data                                      |   |                         |
|----------------------------------------------------------------------------------|--------|------------------------------|
|                                                                             |   | Three Months Ended March 31, |
|                                                                             |   | 2010                         |   |   | 2009 |
| Interest income:                                                                 |   |                         |   |   |   |
| Interest and fees on loans                                                       |   | $                            | 1,682 |   |   | $ | 1,609 |
| Interest and dividends on investments:                                           |   |                         |   |   |   |   |   |
| Taxable                                                                          |   |                         | 1,233 |   |   |   | 1,310 |
| Exempt from federal income taxes                                                 |   |                         | 348 |   |   |   | 354 |
| Interest on federal funds sold and other                                         |   |                         | - |   |   |   | 2 |
| Total interest income                                                            |   |                         | 3,263 |   |   |   | 3,275 |
| Interest Expense                                                                 |   |                         |   |   |   |   |   |
| Deposits                                                                         |   |                         | 1,244 |   |   |   | 1,404 |
| Total interest expense                                                           |   |                         | 1,244 |   |   |   | 1,404 |
| Net interest income                                                              |   |                         | 2,019 |   |   |   | 1,871 |
| Provision for loan losses                                                        |   |                         | 30 |   |   |   | - |
| Net interest income after Provision for loan losses                              |   |                         | 1,989 |   |   |   | 1,871 |
| Other income:                                                                    |   |                         |   |   |   |   |   |
| Impairment loss on securities                                                    |   |                         | (633 | ) |   |   | - |
| Portion of impairment loss recognized in other comprehensive income (before tax) |   |                         | 519 |   |   |   | - |
| Net impairment loss                                                              |   |                         | (114 | ) |   |   | - |
| Service charges on deposit accounts                                              |   |                         | 26 |   |   |   | 27 |
| Other service charges and fees                                                   |   |                         | 25 |   |   |   | 22 |
| Other income                                                                     |   |                         | 11 |   |   |   | 10 |
| Total other income (expense)                                                     |   |                         | (52 | ) |   |   | 59 |
| Other expenses:                                                                  |   |                         |   |   |   |   |   |
| Salaries and employee benefits                                                   |   |                         | 400 |   |   |   | 363 |
| Occupancy                                                                        |   |                         | 48 |   |   |   | 42 |
| Furniture and equipment                                                          |   |                         | 66 |   |   |   | 67 |
| Pennsylvania shares tax                                                          |   |                         | 118 |   |   |   | 111 |
| FDIC expense                                                                     |   |                         | 49 |   |   |   | 80 |
| Other expenses                                                                   |   |                         | 180 |   |   |   | 155 |
| Total other expenses                                                             |   |                         | 861 |   |   |   | 818 |
| Income before income taxes                                                       |   |                         | 1,076 |   |   |   | 1,112 |
| Income tax expense                                                               |   |                         | 253 |   |   |   | 265 |
| Net income                                                                       |   | $                            | 823 |   |   | $ | 847 |
|                                                                             |   |                         |   |   |   |   |   |
| Per share data:                                                                  |   |                         |   |   |   |   |   |
| Earnings per share, basic                                                        |   | $                            | 4.49 |   |   | $ | 4.49 |
| Weighted average common shares outstanding                                       |   |                         | 183,116 |   |   |   | 188,567 |
| Cash dividends declared per share                                                |   | $                            | 2.00 |   |   | $ | 2.00 |
|                                                                             |   |                         |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.                                  |   |                         |   |   |   |   |   |

----

Index

NEFFS

| Dollars in thousands, except per share data |   | Common Stock |   |   | Paid-In Capital |   |   | Retained Earnings |   |   | Accumulated Other Comprehensive Income |   |   | Treasury Stock |   |   | Total Stockholders' Equity |   |
|---------------------------------------------|--------|--------------|--------|--------|-----------------|--------|--------|-------------------|--------|--------|----------------------------------------|--------|--------|----------------|--------|--------|----------------------------|--------|
| Balance, December 31, 2008                  |   | $            | 200    |   |            | $      | 753    |              |   | $      | 45,836                                 |   |   | $              | 442    |   |                       | $      | (2,702 | ) |   | $ | 44,529 |   |
| Comprehensive Income:                       |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| Net income                                  |   |         | -      |   |            |   | -      |              |   |   | 847                                    |   |   |           | -      |   |                       |   | - |   |   |   | 847 |   |
| Change in unrealized net gains              |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| on securities available for sale,           |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| net of tax                                  |   |         | -      |   |            |   | -      |              |   |   | -                                      |   |   |           | 328    |   |                       |   | - |   |   |   | 328 |   |
| Total comprehensive income                  |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   | 1,175 |   |
|                                        |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| Cash dividends declared on common           |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| stock, $2.00  per share           |   |         | -      |   |            |   | -      |              |   |   | (377                                   | )      |   |           | -      |   |                       |   | - |   |   |   | (377 | ) |
| Purchase of treasury stock                  |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| (1,001 shares)                              |   |         | -      |   |            |   | -      |              |   |   | -                                      |   |   |           | -      |   |                       |   | (230 | ) |   |   | (230 | ) |
|                                        |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| Balance, March 31, 2009                     |   | $            | 200    |   |            | $      | 753    |              |   | $      | 46,306                                 |   |   | $              | 770    |   |                       | $      | (2,932 | ) |   | $ | 45,097 |   |

| Dollars in thousands, except per share data                       |   | Common Stock |   |   | Paid-In Capital |   |   | Retained Earnings |   |   | Accumulated Other Comprehensive Income |   |   | Treasury Stock |   |   | Total Stockholders' Equity |   |
|-------------------------------------------------------------------|--------|--------------|--------|--------|-----------------|--------|--------|-------------------|--------|--------|----------------------------------------|--------|--------|----------------|--------|--------|----------------------------|--------|
| Balance, December 31, 2009                                        |   | $            | 200    |   |            | $      | 753    |              |   | $      | 48,255                                 |   |   | $              | 556    |   |                       | $      | (4,136 | ) |   | $ | 45,628 |   |
| Comprehensive Income:                                             |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| Net income                                                        |   |         | -      |   |            |   | -      |              |   |   | 823                                    |   |   |           | -      |   |                       |   | - |   |   |   | 823 |   |
| Change in unrealized net gain                                     |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| on securities available for sale,                                 |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| net of tax                                                        |   |         | -      |   |            |   | -      |              |   |   | -                                      |   |   |           | 148    |   |                       |   | - |   |   |   | 148 |   |
| Unrealized losses on OTTI securities held to maturity, net of tax |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           | (342   | )      |                       |   |   |   |   |   | (342 | ) |
| Total comprehensive income                                        |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   | 629 |   |
|                                                              |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| Cash dividends declared on common                                 |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| stock, $2.00  per share                                 |   |         | -      |   |            |   | -      |              |   |   | (366                                   | )      |   |           | -      |   |                       |   | - |   |   |   | (366 | ) |
| Purchase of treasury stock                                        |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| (617 shares)                                                      |   |         | -      |   |            |   | -      |              |   |   | -                                      |   |   |           | -      |   |                       |   | (158 | ) |   |   | (158 | ) |
|                                                              |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| Balance, March 31, 2010                                           |   | $            | 200    |   |            | $      | 753    |              |   | $      | 48,712                                 |   |   | $              | 362    |   |                       | $      | (4,294 | ) |   | $ | 45,733 |   |
|                                                              |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.                   |   |         |   |   |            |   |   |              |   |   |                                   |   |   |           |   |   |                       |   |   |   |   |

----

Index

NEFFS

| Dollars in thousands                                            |   | Three Months Ended March 31, |    |
|-----------------------------------------------------------------|--------|------------------------------|---------|
|                                                            |   | 2010                         |    |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                            |   |                         |    |   |   |   |
| Net income                                                      |   | $                            | 823     |   |   | $ | 847 |   |
| Adjustments to reconcile net income to net cash                 |   |                         |    |   |   |   |   |   |
| provided by operating activities:                               |   |                         |    |   |   |   |   |   |
| Provision for loan losses                                       |   |                         | 30      |   |   |   | - |   |
| Depreciation                                                    |   |                         | 55      |   |   |   | 55 |   |
| Net accretion of securities premiums/discounts                  |   |                         | (35     | ) |   |   | (211 | ) |
| Impairment loss on securities                                   |   |                         | 114     |   |   |   | - |   |
| Change in assets and liabilities:                               |   |                         |    |   |   |   |   |   |
| Decrease (increase) in:                                         |   |                         |    |   |   |   |   |   |
| Accrued interest receivable                                     |   |                         | (183    | ) |   |   | (152 | ) |
| PA shares tax                                                   |   |                         | (353    | ) |   |   | (334 | ) |
| Other assets                                                    |   |                         | 111     |   |   |   | 242 |   |
| Increase (decrease) in:                                         |   |                         |    |   |   |   |   |   |
| Accrued interest payable                                        |   |                         | (72     | ) |   |   | (95 | ) |
| Other liabilities                                               |   |                         | 125     |   |   |   | 20 |   |
| Net cash provided by operating activities                       |   |                         | 615     |   |   |   | 372 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                            |   |                         |    |   |   |   |   |   |
| Decrease in interest bearing deposits with banks                |   |                         | -       |   |   |   | 8 |   |
| Net increase (decrease) in federal funds sold                   |   |                         | 2,933   |   |   |   | (3,779 | ) |
| Purchase of securities available for sale                       |   |                         | (488    | ) |   |   | (1,221 | ) |
| Proceeds from maturities/calls of securities available for sale |   |                         | 2,926   |   |   |   | 1,998 |   |
| Purchase of securities held to maturity                         |   |                         | (14,832 | ) |   |   | (14,461 | ) |
| Proceeds from maturities/calls of securities held to maturity   |   |                         | 10,824  |   |   |   | 9,385 |   |
| Net increase in investment in restricted bank stock             |   |                         | -       |   |   |   | (8 | ) |
| Net increase in loans                                           |   |                         | (1,239  | ) |   |   | (808 | ) |
| Purchases of premises and equipment                             |   |                         | (9      | ) |   |   | (217 | ) |
| Net cash provided (used) by investing activities                |   |                         | 115     |   |   |   | (9,103 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES                            |   |                         |    |   |   |   |   |   |
| Net increase in deposits                                        |   |                         | 4,909   |   |   |   | 8,338 |   |
| Purchase of treasury stock                                      |   |                         | (158    | ) |   |   | (230 | ) |
| Net cash provided by financing activities                       |   |                         | 4,751   |   |   |   | 8,108 |   |
| Increase (decrease) in cash and cash equivalents                |   |                         | 5,481   |   |   |   | (623 | ) |
| Cash and cash equivalents:                                      |   |                         |    |   |   |   |   |   |
| Beginning                                                       |   |                         | 2,187   |   |   |   | 2,489 |   |
| Ending                                                          |   | $                            | 7,668   |   |   | $ | 1,866 |   |
|                                                            |   |                         |    |   |   |   |   |   |
| Supplementary Cash Flows Information                            |   |                         |    |   |   |   |   |   |
| Interest Paid                                                   |   | $                            | 1,316   |   |   | $ | 1,499 |   |
| Income Taxes Paid                                               |   | $                            | -       |   |   | $ | - |   |
|                                                            |   |                         |    |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.                 |   |                         |    |   |   |   |   |   |

----

Index

NEFFS

|                                                            |   | Three Months Ended |   |
|-----------------------------------------------------------------|--------|--------------------|--------|
|                                                            |   | March 31,          |   |
|                                                            |   | 2010               |   |   | 2009 |   |
|                                                            |   | (In Thousands)     |   |
|                                                            |   |               |   |   |   |   |
| Change in unrealized net gains on securities available for sale |   | $                  | 224    |   |   | $ | 497 |   |
| Change in unrealized losses on OTTI securities held to maturity |   |               | (519   | ) |   |   | - |   |
| Tax effect                                                      |   |               | 101    |   |   |   | (169 | ) |
| Other comprehensive income, net of tax                          |   | $                  | (194   | ) |   | $ | 328 |   |

----

Index

|                                             |   | March 31, 2010 |
|--------------------------------------------------|--------|----------------|
|                                             |   | AmortizedCost  |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | FairValue |
| Securities Available for Sale:                   |   | (In Thousands) |
| U.S. Treasury note                               |   | $              | 100 |   |   | $ | 4 |   |   | $ | - |   |   | $ | 104 |
| Mortgage-backed securities                       |   |           | 31,280 |   |   |   | 1,359 |   |   |   | (7 | ) |   |   | 32,632 |
|                                             |   | $              | 31,380 |   |   | $ | 1,363 |   |   | $ | (7 | ) |   | $ | 32,736 |
| Securities Held to Maturity:                     |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of U.S. Government agencies          |   | $              | 57,975 |   |   | $ | 395 |   |   | $ | (1,040 | ) |   | $ | 57,330 |
| Obligations of states and political subdivisions |   |           | 41,960 |   |   |   | 1,008 |   |   |   | (146 | ) |   |   | 42,822 |
| Corporate securities                             |   |           | 3,690 |   |   |   | 53 |   |   |   | (1,429 | ) |   |   | 2,314 |
| Mortgage-backed securities                       |   |           | 801 |   |   |   | 60 |   |   |   | - |   |   |   | 861 |
|                                             |   | $              | 104,426 |   |   | $ | 1,516 |   |   | $ | (2,615 | ) |   | $ | 103,327 |

|                                             |   | December 31, 2009 |
|--------------------------------------------------|--------|-------------------|
|                                             |   | AmortizedCost     |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | FairValue |
| Securities Available for Sale:                   |   | (In Thousands)    |
| U.S. Treasury note                               |   | $                 | 100 |   |   | $ | 4 |   |   | $ | - |   |   | $ | 104 |
| Mortgage-backed securities                       |   |              | 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                             |   |              | 4,305 |   |   |   | 44 |   |   |   | (2,127 | ) |   |   | 2,222 |
| Mortgage-backed securities                       |   |              | 838 |   |   |   | 45 |   |   |   | - |   |   |   | 883 |
|                                             |   | $                 | 100,976 |   |   | $ | 1,660 |   |   | $ | (5,098 | ) |   | $ | 97,538 |

----

Index

|                                   |   | Available for Sale |   |   | Held to Maturity |
|----------------------------------------|--------|--------------------|--------|--------|------------------|
|                                   |   | AmortizedCost      |   |   | FairValue        |   |   | AmortizedCost |   |   | FairValue |
|                                   |   | (In Thousands)     |
| Due in one year or less                |   | $                  | -      |   |             | $ | - |   |   | $ | 335 |   |   | $ | 345 |
| Due after one year through five years  |   |               | 100    |   |             |   | 104 |   |   |   | 7,799 |   |   |   | 8,094 |
| Due after five years through ten years |   |               | -      |   |             |   | - |   |   |   | 16,530 |   |   |   | 16,978 |
| Due after ten years                    |   |               | -      |   |             |   | - |   |   |   | 78,961 |   |   |   | 77,049 |
|                                   |   |               | 100    |   |             |   | 104 |   |   |   | 103,625 |   |   |   | 102,466 |
| Mortgage-backed securities             |   |               | 31,280 |   |             |   | 32,632 |   |   |   | 801 |   |   |   | 861 |
|                                   |   | $                  | 31,380 |   |             | $ | 32,736 |   |   | $ | 104,426 |   |   | $ | 103,327 |

|                                             |   | Less than 12 Months |   |   | 12 Months or More |   |   | Total     |
|--------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|--------|-----------|
|                                             |   | FairValue           |   |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |
| March 31, 2010:                                  |   | (In Thousands)      |
| Securities Available for Sale:                   |   |                |   |   |              |   |   |      |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities                       |   | $                   | 1,427  |   |              | $      | 7      |      |   | $ | - |   |   | $ | - |   |   | $ | 1,427 |   |   | $ | 7 |
| Securities Held to Maturity:                     |   |                |   |   |              |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of U.S. Government agencies          |   |                | 26,945 |   |              |   | 394    |      |   |   | 8,974 |   |   |   | 646 |   |   |   | 35,919 |   |   |   | 1,040 |
| Obligations of states and political subdivisions |   |                | 7,941  |   |              |   | 146    |      |   |   | - |   |   |   | - |   |   |   | 7,941 |   |   |   | 146 |
| Corporate securities                             |   |                | -      |   |              |   | -      |      |   |   | 1,111 |   |   |   | 1,429 |   |   |   | 1,111 |   |   |   | 1,429 |
| Total Temporarily Impaired Securities            |   | $                   | 36,313 |   |              | $      | 547    |      |   | $ | 10,085 |   |   | $ | 2,075 |   |   | $ | 46,398 |   |   | $ | 2,622 |

----

Index

|                                             |   | Less than 12 Months |   |   | 12 Months or More |   |   | Total     |
|--------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|--------|-----------|
|                                             |   | FairValue           |   |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |
| 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                             |   |                | -      |   |              |   | -      |      |   |   | 1,027 |   |   |   | 2,127 |   |   |   | 1,027 |   |   |   | 2,127 |
| 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)                                                |   |   |                                         |   |   |                                     |
| March 31, 2010                                |   |   |   |   |                                                          |   |   |                                         |   |   |                                     |
| U. S. Treasury note available for sale        |   | $      | 104    |   |                                                          | $      | 104    |                                         |   |   | -                                        |   |   |   | - |
| Mortgage-backed securities available for sale |   | $      | 32,632 |   |                                                          |   | -      |                                         |   | $      | 32,632                                   |   |   |   | - |
| 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)                                                |   |   |                                         |   |   |                                     |
| March 31, 2010                                     |   |   |   |   |                                                          |   |   |                                         |   |   |                                     |
| Impaired trust preferred security held to maturity |   | $      | 422    |   |                                                          |   | -      |                                         |   |   | -                                        |   |   | $ | 422 |
| December 31, 2009                                  |   |   |   |   |                                                          |   |   |                                         |   |   |                                     |   |   |   |   |
| Impaired trust preferred security held to maturity |   | $      | 65     |   |                                                          |   | -      |                                         |   |   | -                                        |   |   | $ | 65 |

----

Index

|                                                                                  |   | Impaired trust preferred security 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   | ) |
| Book/fair value of impaired securities at March 31, 2010                              |   | $                                                  | 422    |   |

----

Index

|                                               |   | 2010           |    |   | 2009               |
|----------------------------------------------------|--------|----------------|---------|--------|--------------------|
|                                               |   | CarryingAmount |    |   | EstimatedFairValue |   |   | CarryingAmount |   |   | EstimatedFairValue |
|                                               |   | (In Thousands) |
| Financial assets:                                  |   |           |    |   |               |   |   |   |   |   |   |
| Cash and short-term investments                    |   | $              | 7,769   |   |               | $ | 7,769 |   |   | $ | 2,288 |   |   | $ | 2,288 |
| Federal funds sold                                 |   |           | -       |   |               |   | - |   |   |   | 2,933 |   |   |   | 2,933 |
| Securities available for sale                      |   |           | 32,736  |   |               |   | 32,736 |   |   |   | 34,991 |   |   |   | 34,991 |
| Securities held to maturity                        |   |           | 104,426 |   |               |   | 103,327 |   |   |   | 100,976 |   |   |   | 97,538 |
| Loans, net                                         |   |           | 112,368 |   |               |   | 116,553 |   |   |   | 111,159 |   |   |   | 114,291 |
| Accrued interest receivable                        |   |           | 1,794   |   |               |   | 1,794 |   |   |   | 1,611 |   |   |   | 1,611 |
|                                               |   |           |    |   |               |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                             |   |           |    |   |               |   |   |   |   |   |   |   |   |   |   |
| Deposits                                           |   |           | 216,300 |   |               |   | 219,357 |   |   |   | 211,391 |   |   |   | 214,651 |
| Accrued interest payable                           |   |           | 975     |   |               |   | 975 |   |   |   | 1,047 |   |   |   | 1,047 |
|                                               |   |           |    |   |               |   |   |   |   |   |   |   |   |   |   |
| Off-balance sheet financial instruments:           |   |           |    |   |               |   |   |   |   |   |   |   |   |   |   |
| Commitments to extend credit and letters of credit |   |           | -       |   |               |   | - |   |   |   | - |   |   |   | - |

----

Index

|                                                                                          |   | Other-Than-Temporary Impairment Credit Losses Recorded in Earnings |
|-----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|
|                                                                                          |   | (In Thousands)                                                     |
| Beginning Balance January 1, 2010                                                             |   | $                                                                  | - |
| Additions for OTTI not previously recognized                                                  |   |                                                               | 114 |
| Total other-than-temporary losses recognized during the period, ending balance March 31, 2010 |   | $                                                                  | 114 |

|   | § | the few observable transactions and market quotations that are available are not reliable for purposes of determining fair value at March 31, 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 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 March 31, 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. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | § | 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. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item

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

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

|   | § | 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

|                                 |   | March 31,2010 |   |   | December 31,2009 |   |
|--------------------------------------|--------|---------------|--------|--------|------------------|--------|
| Nonaccrual loans:                    |   | $             | -      |   |             | $      | - |   |
| Commercial                           |   |          | 401    |   |             |   | - |   |
| Consumer                             |   |          | -      |   |             |   | - |   |
| Real Estate:                         |   |          |   |   |             |   |   |   |
| Construction                         |   |          | -      |   |             |   | - |   |
| Mortgage                             |   |          | 24     |   |             |   | - |   |
| Total nonaccrual                     |   |          | 425    |   |             |   | - |   |
| Loans past due 90 days or more       |   |          | 8      |   |             |   | 202 |   |
| Restructured loans                   |   |          | -      |   |             |   | - |   |
| Total nonperforming loans            |   |          | 433    |   |             |   | 202 |   |
| Foreclosed real estate               |   |          | -      |   |             |   | - |   |
| Total nonperforming assets           |   | $             | 433    |   |             | $      | 202 |   |
|                                 |   |          |   |   |             |   |   |   |
| Nonperforming loans to total loans   |   |          | 0.38   | %      |             |   | 0.18 | % |
| Nonperforming assets to total assets |   |          | 0.16   | %      |             |   | 0.08 | % |

----

Index

|                                                          |   | Three Months Ended March 31, |   |
|---------------------------------------------------------------|--------|------------------------------|--------|
|                                                          |   | 2010                         |   |   | 2009 |   |
| Balance at beginning of period                                |   | $                            | 829    |   |   | $ | 761 |   |
| Provisions charged to operating expenses                      |   |                         | 30     |   |   |   | - |   |
| Recoveries of loans previously charged-off                    |   |                         |   |   |   |   |   |   |
| Commercial                                                    |   |                         | -      |   |   |   | - |   |
| Consumer                                                      |   |                         | 5      |   |   |   | - |   |
| Real Estate                                                   |   |                         | -      |   |   |   | - |   |
| Total recoveries                                              |   |                         | 5      |   |   |   | - |   |
| Loans charged-off:                                            |   |                         |   |   |   |   |   |   |
| Commercial                                                    |   |                         | -      |   |   |   | - |   |
| Consumer                                                      |   |                         | 16     |   |   |   | 4 |   |
| Real Estate                                                   |   |                         | 23     |   |   |   | - |   |
| Total charged-off                                             |   |                         | 39     |   |   |   | 4 |   |
| Net charge-offs                                               |   |                         | 34     |   |   |   | 4 |   |
| Balance at end of period                                      |   | $                            | 825    |   |   | $ | 757 |   |
|                                                          |   |                         |   |   |   |   |   |   |
| Net charge-offs as a percentage of average loans outstanding  |   |                         | 0.03   | % |   |   | 0.00 | % |
| Allowance for loan losses as a percentage of period-end loans |   |                         | 0.73   | % |   |   | 0.74 | % |

|                |   | At March 31,           |    |
|---------------------|--------|------------------------|---------|
|                |   | (Dollars in thousands) |    |
|                |   | 2010                   |    |   | 2009 |   |
|                |   | Balance                |    |   | AverageYield |   |   | Balance |   |   | AverageYield |   |
| Demand deposits:    |   |                   |    |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing |   | $                      | 16,034  |   |   |   |   |   | $ | 19,479 |   |   |   |   |
| Interest-bearing    |   |                   | 8,005   |   |   |   | 0.38 | % |   |   | 6,074 |   |   |   | 0.46 | % |
| Savings             |   |                   | 64,196  |   |   |   | 1.18 | % |   |   | 51,142 |   |   |   | 1.39 | % |
| Time deposits:      |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| <$100,000        |   |                   | 81,341  |   |   |   | 3.14 | % |   |   | 80,172 |   |   |   | 3.81 | % |
| >$100,000        |   |                   | 46,724  |   |   |   | 3.64 | % |   |   | 44,409 |   |   |   | 4.25 | % |
| Total deposits      |   | $                      | 216,300 |   |   |   |   |   |   | $ | 201,276 |   |   |   |   |   |

----

Index

----

Index

|                       |   | March 31,2010 |   |   | December 31,2009 |   |   | For CapitalAdequacyPurposes |   |   | To be WellCapitalizedUnder PromptCorrective ActionProvision |   |
|----------------------------|--------|---------------|--------|--------|------------------|--------|--------|-----------------------------|--------|--------|-------------------------------------------------------------|--------|
| Risk-based capital ratios: |   |          |   |   |             |   |   |                        |   |   |                                                        |   |
| Tier 1 Capital             |   |          | 32.2   | %      |             |   | 32.1   | %                           |   |   | 4.0                                                         | %      |   |   | 6.0 | % |
| Total Capital              |   |          | 32.6   | %      |             |   | 32.7   | %                           |   |   | 8.0                                                         | %      |   |   | 10.0 | % |
| Leveraged Capital          |   |          | 17.3   | %      |             |   | 17.5   | %                           |   |   | 4.0                                                         | %      |   |   | 5.0 | % |

Item

Item

----

Index

PART

Item

Item

Item

|                                 |   | Total Number ofShares Purchased |   |   | Average PricePaid per Share |   |   | Total Numberof Shares Purchased as Part of PubliclyAnnounced Plansor Programs |   | Maximum Number of Shares that mayyet be Purchased Under thePlans or Programs |
|--------------------------------------|--------|---------------------------------|--------|--------|-----------------------------|--------|--------|-------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|
| January 1 through January 31, 2010   |   |                            | 592    |   |                        | $      | 256    |                                                                          |   |                                                                              | - |   | NA |
| February 1 through February 28, 2010 |   |                            | -      |   |                        |   | -      |                                                                          |   |                                                                              | - |   | NA |
| March 1 through March 31, 2010       |   |                            | 25     |   |                        |   | 260    |                                                                          |   |                                                                              | - |   | NA |
| Total                                |   |                            | 617    |   |                        | $      | 256    |                                                                          |   |                                                                              | - |   | NA |

----

Index

Item

Item

Item

Item

|   | 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 June 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:  May 11, 2010 |   | By:                     | /s/ John J. Remaley |
|                          |   | Name:    | John J. Remaley |
|                          |   | Title:                  | President |