<PAGE>

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

                                    FORM 10-Q

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

                      For the quarter ended March 31, 2003

                                       OR

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

             For the transition period from __________ to __________

                        Commission File  0  -   32605

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

        Pennsylvania                                      23-2400383
-----------------------------------            ---------------------------------
  (State or other jurisdiction of                 (IRS Employer Identification
  incorporation or organization)                             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)

     Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the past 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                       Yes (X)        No ( )

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

         Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Sections 12, 13 or 15 of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.

                       Yes ( )        No ( )

         Indicate by a check mark whether the registrant is an accelerated filer
(as defined in Rule 12b-2 of the Exchange Act.

                       Yes ( )        No (X)

                      APPLICABLE ONLY TO CORPORATE ISSUERS

     Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date:
As of 4/30/03, 196,431 shares of common stock, par value of $1.00, were
outstanding.

                                        1

<PAGE>

                               NEFFS BANCORP, INC.

                                      INDEX

<TABLE>
<S>                                                                                           <C>
PART I.   FINANCIAL INFORMATION

Item 1.   Consolidated Financial Statements

          Consolidated Statements of Financial Condition (Unaudited)
          March 31, 2003 and December 31, 2002............................................     3

          Consolidated Statements of Income (Unaudited)
          Three months ended March 31, 2003 and March 31, 2002............................     4

          Consolidated Statement of Stockholders' Equity  (Unaudited)
          Three months ended March 31, 2003, and March 31, 2002...........................     5

          Consolidated Statements of Cash Flows (Unaudited)
          Three months ended March 31, 2003, and March 31, 2002...........................     6

          Notes to the Interim Consolidated Financial Statements (Unaudited)..............     7

Item 2.   Management's Discussion and Analysis of Financial Condition
          and Results of Operations.......................................................     9

Item 3.   Quantitative and Qualitative Disclosures about Market Risk......................    17

Item 4.   Controls and Procedures.........................................................    18

PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings...............................................................    18

Item 2.   Changes in Securities...........................................................    18

Item 3.   Defaults Upon Senior Securities.................................................    18

Item 4.   Results of Votes of Security Holders............................................    18

Item 5.   Other Information...............................................................    19

Item 6.   Exhibits and Reports on Form 8-K................................................    19

SIGNATURES ...............................................................................    20
</TABLE>

                                        2

<PAGE>

                       NEFFS BANCORP, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                   (Unadited)

<TABLE>
<CAPTION>
                                                                                          March 31       December 31
Dollars in thousands                                                                        2003             2002
                                                                                        ----------------------------
<S>                                                                                     <C>             <C>
                                        ASSETS
Cash and due from banks                                                                 $     3,277     $     2,732
Interest bearing deposits with banks                                                             23              18
Federal funds sold                                                                           10,279          10,475
Securities available for sale                                                                13,065          10,044
Securities held to maturity, market value
   $89,552 in 2003; $85,914 in 2002                                                          88,006          84,353

Loans                                                                                        69,038          69,598
   Less allowance for loan losses                                                              (589)           (564)
                                                                                        ---------------------------
                       Net loans                                                             68,449          69,034
                                                                                        ---------------------------

Premises and equipment, net                                                                   2,374           2,396
Other assets                                                                                  1,536           1,241
                                                                                        ---------------------------
                       Total assets                                                     $   187,009     $   180,293
                                                                                        ===========================

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
    Deposits
          Non-interest bearing                                                          $    13,292     $    11,934
          Interest bearing                                                                  139,242         134,601
                                                                                        ---------------------------
                       Total deposits                                                       152,534         146,535
    Other liabilities                                                                           813             933
                                                                                        ---------------------------
                       Total liabilities                                                    153,347         147,468
                                                                                        ---------------------------

Stockholders' Equity
    Common stock, $1 par value, authorized 2,500,000 shares; issued 200,000
          shares as of 3/31/03; 196,431
          outstanding as of 3/31/03 & 12/31/02                                                  200             200
    Paid-in capital                                                                             609             609
    Retained earnings                                                                        33,380          32,610
    Accumulated other comprehensive income                                                       88              21
    Less treasury stock at cost 3,569 shares in 2003; 3,569 shares in 2003                     (615)           (615)
                                                                                        ---------------------------
                       Total stockholders' equity                                            33,662          32,825
                                                                                        ---------------------------

                       Total liabilities and stockholders' equity                       $   187,009     $   180,293
                                                                                        ===========================
</TABLE>

See Notes to Consolidated Financial Statements.

                                        3

<PAGE>

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

<TABLE>
<CAPTION>
Dollars in thousands
Three months ended March 31,                                                    2003                     2002
                                                                            ------------            -------------
<S>                                                                         <C>                     <C>
Interest income:
    Interest and fees on loans                                                     1,266                    1,382
    Interest and dividends on investments:
           Taxable                                                                   677                      738
           Exempt from federal income taxes                                          542                      383
    Interest on federal funds sold and other                                          31                       20
                                                                            ------------            -------------
                        Total interest income                                      2,516                    2,523
                                                                            ------------            -------------

Interest Expense:
    Interest on deposits                                                           1,116                    1,216
                                                                            ------------            -------------
                      Total interest expense                                       1,116                    1,216
                                                                            ------------            -------------

                      Net interest income                                          1,400                    1,307
                                                                            ------------            -------------

Provision for loan losses                                                             15                       20
                                                                            ------------            -------------

                      Net interest income after provision for loan losses          1,385                    1,287
                                                                            ------------            -------------

Other income:
    Service charges on deposit accounts                                               46                       45
    Other service charges and fees                                                    14                       17
    Other income                                                                      10                        6
    Net security gains                                                                 -                        1
                                                                            ------------            -------------
                      Total other income                                              70                       69
                                                                            ------------            -------------

Other expenses:
    Salaries and employee benefits                                                   267                      245
    Occupancy                                                                         28                       23
    Furniture and equipment                                                           35                       35
    Pennsylvania shares tax                                                           75                       76
    Other Expenses                                                                   144                       99
                                                                            ------------            -------------
                      Total other expenses                                           549                      478
                                                                            ------------            -------------

                      Income before income taxes                                     906                      878
                                                                            ------------            -------------

Income tax expense                                                                   136                      167
                                                                            ------------            -------------

                      Net income                                            $        770            $         711
                                                                            ============            =============

Per share data:
    Earnings per share, basic and diluted                                   $       3.92            $        3.62
                                                                            ============            =============

    Weighted average common shares outstanding                                   196,431                  196,431
                                                                            ============            =============
</TABLE>

See Notes to Consolidated Financial Statements.

                                        4

<PAGE>

                       NEFFS BANCORP, INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                                   (Unadited)

<TABLE>
<CAPTION>
                                                                                       Accumulated
                                                              Additional                  Other                         Total
                                                     Common    Paid-In     Retained   Comprehensive    Treasury      Stockholders'
Dollars in thousands                                  Stock    Capital     Earnings       Loss          Stock           Equity
                                                     -----------------------------------------------------------------------------
<S>                                                  <C>      <C>          <C>        <C>              <C>           <C>
Balance, December 31, 2001                           $  200   $      609   $ 30,404   $        (100)   $   (615)     $      30,498
                                                                                                                     -------------
 Comprehensive Income:
  Net income                                              -            -        711               -           -                711
  Change in unrealized net losses on
    securities available for sale, net of tax             -            -          -             (25)          -                (25)

                                                                                                                     -------------
   Total comprehensive income                                                                                                  686
                                                     -----------------------------------------------------------------------------

Balance, March 31, 2002                              $  200   $      609   $ 31,115   $        (125)   $   (615)     $      31,184
                                                     =============================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                                       Accumulated
                                                              Additional                  Other                         Total
                                                     Common    Paid-In     Retained   Comprehensive    Treasury      Stockholders'
Dollars in thousands                                  Stock    Capital     Earnings       Loss          Stock           Equity
                                                     -----------------------------------------------------------------------------
<S>                                                  <C>      <C>          <C>        <C>              <C>           <C>
Balance, December 31, 2002                           $  200   $      609   $ 32,610   $          21    $   (615)     $      32,825
                                                                                                                     -------------
 Comprehensive Income:
  Net income                                              -            -        770               -           -                770
  Change in unrealized net gains on
    securities available for sale, net of tax             -            -          -              67           -                 67

                                                                                                                     -------------
   Total comprehensive income                                                                                                  837
                                                     -----------------------------------------------------------------------------

Balance, March 31, 2003                              $  200   $      609   $ 33,380   $          88    $   (615)     $      33,662
                                                     =============================================================================
</TABLE>

See Notes to Consolidated Financial Statements.

                                        5

<PAGE>

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

<TABLE>
<CAPTION>
Dollars in thousands
Three months ended March 31,                                         2003                     2002
                                                                 -----------              -----------
<S>                                                              <C>                      <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net income                                                   $       770              $       711
    Adjustments to reconcile net income to net cash
        provided by operating activities:
        Depreciation                                                      27                       23
        Provision for loan losses                                         15                       20
        Net accretion of securities                                      (45)                    (127)
        Net security gains                                                 -                       (1)
        Change in assets and liabilities:
            Increase in:
                    Accrued interest receivable                         (210)                     (10)
                    Income taxes receivable                              (98)                     (40)
                    Other assets                                         (21)                     (18)
            Decrease in:
                    Accrued interest payable                             (80)                     (82)
                    Other liabilities                                    (40)                     (55)
                                                                 -----------              -----------
            Net cash provided by operating activities                    318                      421
                                                                 -----------              -----------

CASH FLOWS FROM INVESTING ACTIVITIES
    Net decrease in interest bearing deposits
         with banks                                                       (5)                      (7)
    Net (increase)decrease in federal funds sold                         196                   (2,084)
    Purchase of securities available for sale                         (3,264)                  (3,021)
    Proceeds from maturities/calls of securities available
        for sale                                                         346                      722
    Purchase of securities held to maturity                          (10,777)                  (7,960)
    Proceeds from maturities/calls of securities held to
        maturity                                                       7,167                    4,661
    Net decrease in loans                                                570                    1,041
    Purchases of premises and equipment                                   (5)                     (30)
                                                                 -----------              -----------
         Net cash used in investing activities                        (5,772)                  (6,678)
                                                                 -----------              -----------

CASH FLOWS FROM FINANCING ACTIVITIES
    Net increase in deposits                                           5,999                    5,599
                                                                 -----------              -----------
        Net cash provided by financing activities                      5,999                    5,599
                                                                 -----------              -----------

         Increase (decrease) in cash and cash equivalents                545                     (658)

Cash and cash equivalents:
    Beginning                                                          2,732                    2,909
                                                                 -----------              -----------
    Ending                                                       $     3,277              $     2,251
                                                                 ===========              ===========

Supplementary Cash Flows Information
    Interest Paid                                                $     1,196              $     1,297
                                                                 ===========              ===========

    Income Taxes Paid                                            $       309              $       284
                                                                 ===========              ===========
</TABLE>

See Notes to Consolidated Financial Statements.

                                        6

<PAGE>

                               NEFFS BANCORP, INC.
             NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003
                                   (UNAUDITED)

NOTE 1.  BASIS OF PRESENTATION

The consolidated financial statements include the accounts of Neffs Bancorp,
Inc. (the "Corporation") and its wholly owned subsidiary, The Neffs National
Bank (the "Bank"). All material intercompany accounts and transactions have been
eliminated in consolidation.

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles in the United States
of America for interim financial information. Accordingly, they do not include
all of the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments considered necessary for a fair presentation have been included and
are of a normal, recurring nature. Operating results for the three-month period
ending March 3l, 2003, are not necessarily indicative of the results that may be
expected for the year ending December 3l, 2003. These statements should be read
in conjunction with notes to the financial statements contained in the 2002
Annual Report to Stockholders.

In addition to historical information, this Form 10-Q Report contains
forward-looking statements. The forward-looking statements contained herein are
subject to certain risks and uncertainties that could cause actual results to
differ materially from those projected in the forward-looking statements.
Important factors that might cause such differences include, but are not limited
to, those discussed in the section entitled "Management's Discussion and
Analysis of Financial Condition and Results of Operations". Readers are
cautioned not to place undue reliance on these forward-looking statements, which
reflect management's analysis only as of the date hereof. Readers should
carefully review the risk factors described in other documents the Corporation
files from time to time with the Securities and Exchange Commission.

For further information, refer to the financial statements footnotes thereto
included in The Neffs Bancorp, Inc. Annual Report for the year ended December
31, 2002.

NOTE 2.  COMMITMENTS AND CONTIGENCIES

The Corporation is subject to certain routine legal proceedings and claims
arising in the ordinary course of business. It is management's opinion that the
ultimate resolution of these claims will not have a material adverse effect on
the Corporation's financial position and results of operations.

                                        7

<PAGE>

NOTE 3.  COMPREHENSIVE INCOME

Comprehensive income was $837,000 and $686,000 for the three months ended March
31, 2003 and 2002. The difference between comprehensive income and net income
presented in the Consolidated Statements of Stockholders' Equity is attributed
solely to unrealized gains and losses on available-for-sale securities during
the periods presented.

NOTE 4.  NEW ACCOUNTING STANDARDS

In November 2002, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 45 (FIN 45), "Guarantor's Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of
Others." This Interpretation expands the disclosures to be made by a guarantor
in its financial statements about its obligations under certain guarantees and
requires the guarantor to recognize a liability for the fair value of an
obligation assumed under certain specified guarantees. FIN 45 clarifies the
requirements of FASB Statement No. 5, "Accounting for Contingencies." In
general, FIN 45 applies to contracts or indemnification agreements that
contingently require the guarantor to make payments to the guaranteed party
based on changes in an underlying that is related to an asset, liability or
equity security of the guaranteed party, which would include standby letters of
credit. Certain guarantee contracts are excluded from both the disclosure and
recognition requirements of this Interpretation, including, among others,
guarantees related to commercial letters of credit and loan commitments. The
disclosure requirements of FIN 45 require disclosure of the nature of the
guarantee, the maximum potential amount of future payments that the guarantor
could be required to make under the guarantee and the current amount of the
liability, if any, for the guarantor's obligations under the guarantee. The
accounting recognition requirements of FIN 45 are to be applied prospectively to
guarantees issued or modified after December 31, 2002. Adoption of FIN 45 did
not have a significant impact on the Corporation's financial condition or
results of operations.

Outstanding letters of credit written are conditional commitments issued by the
Corporation to guarantee the performance of a customer to a third party. The
Corporation's exposure to credit loss in the event of nonperformance by the
other party to the financial instrument for standby letters of credit is
represented by the contractual amount of those instruments. The corporation had
$698,000 of standby letters of credit as of March 31, 2003. The Bank uses the
same credit policies in making conditional obligations as it does for on-balance
sheet instruments.

The majority of these standby letters of credit expire within the next twelve
months. The credit risk involved in issuing letters of credit is essentially the
same as that involved in extending other loan commitments. The Corporation
requires collateral supporting these letters of credit as deemed necessary.
Management believes that the proceeds obtained through a liquidation of such
collateral would be sufficient to cover the maximum potential amount of future
payments required under the corresponding guarantees. The current amount of the
liability as of March 31, 2003 for guarantees under standby letters of credit
issued after December 31, 2002 is not material.

                                        8

<PAGE>

In April 2003, the Financial Accounting Standards Board issued Statement No.
149, "Amendment of Statement No. 133, Accounting for Derivative Instruments and
Hedging Activities". This statement clarifies the definition of a derivative and
incorporates certain decisions made by the Board as part of the Derivatives
Implementation Group process. This statement is effective for contracts entered
into or modified, and for hedging relationships designated after June 30, 2003
and should be applied prospectively. The provisions of the Statement that relate
to implementation issues addressed by the Derivatives Implementation Group that
have been effective should continue to be applied in accordance with their
respective effective dates. Adoption of this standard is not expected to have a
significant impact on the Corporation's financial condition or results of
operations.

ITEM 2.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

Management's Discussion and Analysis of Financial Condition and Results of
Operations analyzes the major elements of the Corporation's balance sheets and
statements of income. This section should be read in conjunction with the
Corporation's financial statements and accompanying notes.

Management of the Corporation has made forward-looking statements in this Form
10-Q. These forward-looking statements may be subject to risks and
uncertainties. Forward-looking statements include the information concerning
possible or assumed future results of operations of the Corporation and its
subsidiary. When words such as "believes," "expects," "anticipates" or similar
expressions occur in this Form 10-Q, management is making forward-looking
statements.

Readers should note that many factors, some of which are discussed elsewhere in
this report and in the documents that management incorporates by reference,
could affect the future financial results of the Corporation and its subsidiary,
both individually and collectively, and could cause those results to differ
materially from those expressed in the forward-looking statements contained or
incorporated by reference in this Form 10-Q. These factors include the
following:

*        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.

The Corporation undertakes no obligation to publicly revise or update these
forward-looking statements to reflect events or circumstances that arise after
the date of this report. Readers

                                        9

<PAGE>

should carefully review the risk factors described in other documents that the
Corporation files periodically with the Securities and Exchange Commission.

OVERVIEW

Net income for the quarter increased 8.3% to $770,000 as compared to $711,000
for the first quarter of 2002 and total revenues remained the same at $2.6
million for the quarter. Diluted net income per common share increased 8.3% to
$3.92 per share from $3.62 per share in the first quarter a year ago. At March
31, 2003, the Corporation had total assets of $187 million, total loans of $69
million, and total deposits of $152.5 million.

RESULTS OF OPERATIONS

Average Balances and Average Interest Rates

Interest earning assets averaged $176.2 million for the first quarter of 2003 as
compared to $153.2 million for the same period in 2002. The yield on earning
assets for the first quarter of 2003 was 5.7%, a decrease of 88 basis points
over the comparable period in 2002.

The growth in interest earning assets was funded primarily by an increase of $21
million in the average balance of deposits. Interest-bearing liabilities
increased from $115.5 million during the first quarter of 2002 to $136.6 million
during the first quarter of 2003. Growth in average interest bearing liabilities
was the result of increases in interest bearing demand deposits, savings, and
time deposits of $512,000, $17.5 million, and $3 million, respectively. Deposit
account growth was attributed to the banks favorable interest rate structure
combined with the general decline in confidence in the stock market.

The average rate paid on interest-bearing liabilities was 3.3% for the first
quarter of 2003 and 4.2% for the first quarter of 2002, a decrease of 90 basis
points. This was the result of the declining interest rate environment that was
experienced during much of year 2002.

Net Interest Income and Net Interest Margin

Net interest income is the difference between interest income earned on assets
and interest expense incurred on liabilities used to fund those assets. Interest
earning assets primarily include loans and securities and Federal Funds Sold.
Liabilities used to fund such assets include deposits and borrowed funds.
Changes in net interest income and margin result from the interaction between
the volume and composition of earning assets, related yields and associated
funding costs.

Interest income decreased by $7,000, or .3% over the first quarter of 2002.
Interest expense for the first quarter of 2003 decreased by $100,000, or 8.2%,
compared to the first quarter of 2002. The decrease was due to the general
decline in rates being paid on interest bearing deposits, mainly certificates of
deposit.

                                       10

<PAGE>

Net interest income increased by $93,000, to $1.4 million, or 7.1% over the
first quarter of 2002. The increase was due to the decrease in rates being paid
on interest bearing deposit accounts during the first quarter of 2002. As rates
continued to decrease during the second and third quarters of 2002, the
Corporation reduced rates being offered on interest bearing deposit accounts,
mainly certificates of deposit. Net income for the first quarter of 2003
continued to be affected by those downward rate adjustments.

Net interest margin represents the difference between interest income, including
net loan fees earned, and interest expense, reflected as a percentage of average
earning assets. Net interest margin for the first quarter of 2003 was 3.8%
compared to 3.4% for the first quarter of 2002. During the first quarter of
2003, yields on earning assets decreased to 5.7%, yields on interest bearing
deposits decreased to 3.3%, as compared to 6.6% and 4.2%, respectively, for the
first quarter of 2002.

Provision for Loan Losses

The provision for loan losses decreased by $5,000 or 25.0% during the first
quarter of 2003. This decrease was made to keep pace with the decrease in the
loan portfolio.

Non-interest Income

Non-interest income for the first quarter of 2003 increased by $1,000, or 1.5%
from the same period in 2002. The increase was attributable to growth in deposit
accounts, related service charges, and fee income derived from the sale of loan
related insurance.

Non-interest Expense

For the first quarter of 2003, non-interest expenses increased by $71,000, or
14.9%, to $549,000, compared to $478,000 over the same period in 2002. Increases
in employee costs and a nominal increase in operational expenses attributed to
the rise in non-interest expense while being offset by decreases in other
miscellaneous expenses.

Salary expenses and employee benefits, which represent the largest component of
non-interest expenses, increased by $22,000, or 9.0%, for the first quarter of
2003. This increase is consistent with general wage and benefit increases as
well as increases in staff levels necessary to handle the Corporation's growth
from the first quarter of 2002 to the first quarter of 2003.

The total of other non-interest expenses increased by $37,000, or 15.1%, for the
three-month period ending March 3l, 2003, as compared to the same period in
2002. There was a general increase in expenses for the first quarter, such as
stationary and supplies, travel and convention, advertising and loan and
collection expenses.

One key measure used to monitor progress in controlling overhead expenses is the
ratio of net non-interest expenses to average assets. Net non-interest expenses
equal non-interest

                                       11

<PAGE>

expenses (excluding foreclosed real estate expenses) less non-interest income
(exclusive of non-recurring gains), divided by average assets. This ratio
equaled .3% for the three months ended March 3l, 2003, unchanged from March 3l,
2002. Another productivity measure is the operating efficiency ratio. This ratio
expresses the relationship of non-interest expenses (excluding foreclosed real
estate expenses) to net interest income plus non-interest income (excluding
non-recurring gains). For the quarter ended March 31, 2003, the operating
efficiency ratio was 37.4% compared to 34.7% for the similar period in 2002.

Provision for Federal Income Taxes

The provision for federal income taxes was $136,000 for the first quarter of
2003 compared to $167,000 for the same period in 2002. The effective tax rate,
which is the ratio of income tax expense to income before income taxes was 15.0%
for the first three months of 2003 and 19.0% for the same period in 2002, due to
increases in tax-exempt securities.

Net Income

Net income for the first quarter of 2003 was $770,000, an increase of $59,000,
or 8.3%, over the $711,000 recorded in the first quarter of 2002. The increase
was a result of an increase in net interest income, a reduction in income tax
expense and provision for loan losses, and was offset by an increase in
non-interest expense.

Return on Average Assets

Return on average assets (ROA) measures the Corporation's net income in relation
to its total average assets. The Corporation's annualized ROA for the first
quarter of 2003 was 1.7% a decrease of 1 basis point from the first quarter of
2002. For purposes of calculating ROA, average assets have been adjusted to
exclude gross unrealized appreciation or depreciation on securities available
for sale.

Return on Average Equity

Return on average equity (ROE) indicates how effectively the Corporation can
generate net income on the capital invested by its stockholders. ROE is
calculated by dividing net income by average stockholders' equity. For purposes
of calculating ROE, average stockholders' equity includes the effect of
unrealized appreciation or depreciation, net of income taxes, on securities
available for sale. The annualized ROE for the first quarter of 2003 remained
unchanged at 9.3% from the first quarter of 2002.

FINANCIAL CONDITION

                                       12

<PAGE>

Securities

Securities available for sale increased $3 million to $13.1 million as of March
3l, 2003, from $10 million on December 3l, 2002. The increase was due to the
purchase of mortgage back securities.

The securities available-for-sale portfolio had an unrealized net gain of
$88,000, at the end of the first quarter of 2003, due to declining interest
rates during the first quarter of 2003.

During the first three months of 2003, the securities held to maturity portfolio
increased $3.7 million to $88 million. The increase was the result of purchases
of mortgage-backed securities, U. S. Government agency securities and
state/municipal securities.

Federal funds sold on an over-night basis as of March 31, 2003 totaled $10.3
million, a decrease of $196,000, or 1.9% from December 3l, 2002.

The weighted average life of the combined securities portfolio was approximately
12 years at March 3l, 2003 with a weighted yield of 6.88%.

NET LOANS RECEIVABLE

During the first three months of 2003, net loans receivable decreased by
$585,000 from $69 million at December 31, 2002, to $68.4 million on March 31,
2003. Net loans receivable represented 44.9% of total deposits and 36.6% of
total assets at March 31, 2003, as compared to 47.1% and 38.3%, respectively, at
December 31, 2002.

LOAN AND ASSET QUALITY AND ALLOWANCE FOR LOAN LOSSES

As of March 3l, 2002, total loans receivable reached $69 million, a decrease of
$560,000, or 0.8%, as compared to December 3l, 2002.

Total non-performing assets (non-performing loans and foreclosed real estate,
excluding loans past due 90 days or more and still accruing interest) at March
3l, 2003, were $224,000, or .12%, of total assets as compared to $227,000, or
..13%, of total assets at December 3l, 2002. There was no foreclosed real estate
held by the Corporation as of March 3l, 2003 or as of December 3l, 2002.

The following summary table presents information regarding non-performing loans
and assets as of March 3l, 2003 and 2002, and December 3l, 2002.

                                       13

<PAGE>

                         NONPERFORMING LOANS AND ASSETS
                                 (in Thousands)

<TABLE>
<CAPTION>
                                                        March 31,             December 31,             March 31,
                                                          2003                   2002                    2002
<S>                                                    <C>                  <C>                      <C>
Nonaccrual Loans:
Commercial                                             $         -          $              -         $          2
Consumer                                                         -                         -                    -
Real Estate:
        Construction                                             -                         -                    -
        Mortgage                                               224                       227                  291
                                                       -----------          ----------------         ------------
            Total nonaccrual                                   224                       227                  293
Restructured loans                                               -                         -                    -
                                                       -----------          ----------------         ------------
            Total nonperforming loans                          224                       227                  293
Foreclosed real estate                                           -                         -                    -
                                                       -----------          ----------------         ------------
            Total nonperforming assets                         224                       227                  293
Loans past due 90 days or more                                 268                       203                    9
                                                       -----------          ----------------         ------------
            Total nonperforming assets and
                loans past due 90 days or more         $       492          $            430         $        302
Nonperforming loans to total loans                            0.33%                     0.32%                0.41%
Nonperforming assets to total assets                          0.12%                     0.13%                0.18%
</TABLE>

The following table sets forth the corporation's provision and allowance for
loan losses.

                            ALLOWANCE FOR LOAN LOSSES

<TABLE>
<CAPTION>
                                                        3 months                3 months
                                                         Ending                  Ending
                                                         March 31,               March 31,
                                                           2003                    2002
<S>                                                    <C>                  <C>
Balance at beginning of period                         $       564          $            446
Provisions charged to operating expenses                        15                        20
Recoveries of loans previously charged-off
      Commercial                                                 9                         -
      Consumer                                                   1                         -
      Real Estate                                                -                         -
                                                       -----------          ----------------
Total Recoveries                                                10                         -
Loans Charged Off:
      Commercial                                                 -                         -
      Consumer                                                   -                         6
      Real Estate                                                -                         -
                                                       -----------          ----------------
Total Charged-off                                                -                         6
Net Charge-offs (recoveries)                                   (10)                        6
Balance at end of period                               $       589          $            460
Net charge-offs as a percentage of                            0.00%                     0.01%
   average loans outstanding
Allowance for loan losses as a percentage of                  0.85%                     0.64%
   period-end loans
</TABLE>

                                       14

<PAGE>

DEPOSITS

Total deposits at March 3l, 2003, were $152.5 million, up $6 million, or 4.1%,
over total deposits of $146.5 million at December 3l, 2002. The average balances
for the first three months of 2003 and 2002 are presented in the following
table:

<TABLE>
<CAPTION>
                                                                          Three Months Ended March 31,

                                                                    2003                               2002
                                                         Average          Average         Average         Average
                                                         Balance           Rate           Balance          Rate
                                                         -------           ----           -------          ----
<S>                                                    <C>                <C>            <C>              <C>
Demand Deposits:
   Noninterest-bearing                                 $    11,900                       $  11,232
   Interest-bearing                                          8,004         1.95%             7,492         1.44%
Savings                                                     54,608         1.93%            37,132         2.89%
Time deposits                                               73,942         4.51%            70,901         5.20%
                                                       -----------                       ---------

Total Deposits                                         $   148,454                       $ 126,757
                                                       ===========                       =========
</TABLE>

Interest Rate Sensitivity

The management of interest rate sensitivity seeks to avoid fluctuating net
interest margins and to provide consistent net interest income through periods
of changing interest rates.

The Corporation's risk of loss arising from adverse changes in the fair value of
financial instruments, or market risk, is composed primarily of interest rate
risk. The primary objective of the Corporation's asset/liability management
activities is to maximize net interest income while maintaining acceptable
levels of interest rate risk. The Bank's Asset/Liability Committee (ALCO) is
responsible for establishing policies to limit exposure to interest rate risk,
and to ensure procedures are established to monitor compliance with those
policies. The Corporation's Board of Directors approves the guidelines
established by ALCO.

An interest rate sensitive asset or liability is one that, within a defined
period, either matures or experiences an interest rate change in line with
general market interest rates. Historically, the most common method of
estimating interest rate risk was to measure the maturity and repricing
relationships between interest-earning assets and interest-bearing liabilities
at specific points in time (GAP), typically one year. Under this method, a
company is considered liability sensitive when the amount of its
interest-bearing liabilities exceeds the amount of its interest-earning assets
within the one-year horizon. However, assets and liabilities with similar
repricing characteristics may not reprice at the same time or to the

                                       15

<PAGE>

same degree. As a result, the Corporation's GAP does not necessarily predict the
impact of changes in general levels of interest rates on net interest income.

Management believes the simulation of net interest income in different interest
rate environments provides a more meaningful measure of interest rate risk.
Income simulation analysis captures not only the potential of all assets and
liabilities to mature or reprice, but also the probability that they will do so.
Income simulation also attends to the relative interest rate sensitivities of
these items, and projects their behavior over an extended period of time.
Finally, income simulation permits management to assess the probable effects on
the balance sheet not only of changes in interest rates, but also of proposed
strategies for responding to them.

The Corporation's income simulation model analyzes interest rate sensitivity by
projecting net interest income over the next 12 months in a flat rate scenario
versus net income in alternative interest rate scenarios. Management continually
reviews and refines its interest rate risk management process in response to the
changing economic climate. Currently, the Corporation's model projects a
proportionate 200 basis point change during the next year.

The Corporation's ALCO policy has established that income sensitivity will be
considered acceptable if overall net income volatility in a plus or minus 200
basis point scenario is within 5% of net interest income in a flat rate
scenario. At March 3l, 2003, the Corporation's simulation model indicates net
interest income would increase 3.0% within the first year if rates increased as
described above. The model projects that net income would decrease by 3.5% in
the first year if rates decreased as described above. All of these forecasts are
within an acceptable level of interest rate risk per the policies established by
ALCO.

LIQUIDITY

Liquidity management involves the ability to generate cash or otherwise obtain
funds at reasonable rates to support asset growth and reduce assets to meet
deposit withdrawals, to maintain reserve requirements, and to otherwise operate
the Corporation on an ongoing basis. Liquidity needs are generally met by
converting assets into cash or obtaining sources of additional funds, mainly
deposits. Primarily cash and federal funds sold, and the cash flow from the
amortizing securities and loan portfolios provide liquidity sources from asset
categories. The primary source of liquidity from liability categories is the
generation of additional core deposit balances.

Additionally, the Corporation has established secondary sources of liquidity
consisting of federal funds lines of credit and borrowing capacity at the
Federal Home Loan Bank, which can be drawn upon if needed. In view of the
primary and secondary sources as previously mentioned, management believes that
the Corporation is capable of meeting its anticipated liquidity needs.

                                       16

<PAGE>

CAPITAL ADEQUACY

At March 31, 2003, stockholders' equity totaled $33.7 million, up 2.7% over
stockholders' equity of $32.8 million at December 31, 2002. Stockholders' equity
at March 31, 2003 included $67,000 unrealized gain, net of income taxes, on
securities available for sale. Excluding this unrealized gain, gross
stockholders' equity changed by an increase of $770,000 in retained net income.

Risk-based capital provides the basis for which all banks are evaluated in terms
of capital adequacy. The risk-based capital standards require all banks to have
Tier 1 capital of at least 4% and total capital, including Tier 1 capital, of at
least 8% of risk-adjusted assets. Tier 1 capital includes common stockholders'
equity together with related surpluses and retained earnings. Total capital may
be comprised of total Tier 1 capital plus qualifying debt instruments, and the
allowance for loan losses.

The following table provides a comparison of the Corporation's risk-based
capital ratios and leverage ratios to the minimum regulatory requirements for
the periods indicated:

<TABLE>
<CAPTION>
                                                                                       To Be Well
                                                                                      Capitalized
                                                                   For Capital        Under Prompt
                                 March 31,      December 31,        Adequacy        Corrective Action
                                  2003             2002             Purposes           Provisions
                                  ----             ----             --------           ----------
<S>                              <C>            <C>                <C>              <C>
Risk-Based Capital Ratios:

         Tier 1 Capital            40.31%          40.20%             4.00%               6.00%

         Total Capital             41.00           40.90              8.00               10.00

         Leveraged Capital         18.40           18.50              4.00                5.00
</TABLE>

At March 3l, 2002, the consolidated capital levels of the Corporation and of the
bank met the definition of a "well capitalized" institution.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Corporation's exposure to market risk has not changed significantly since
December 3l, 2002. The market risk principally includes interest rate risk,
which is discussed in the Management's Discussion and Analysis above.

                                       17

<PAGE>

ITEM 4.

CONTROLS AND PROCEDURES

The Corporation maintains controls and procedures designed to ensure that
information required to be disclosed in the reports that the Corporation files
or submits under the Securities and Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in the rules and forms
of the Securities and Exchange Commission. Based upon their evaluation of those
controls and procedures performed within 90 days of the filing date of this
report, the chief executive officer and principal financial officer of the
Corporation concluded that the Corporation's disclosure controls and procedures
were adequate.

The Corporation made no significant changes in its internal controls or in other
factors that could significantly affect these controls subsequent to the date of
the evaluation of the controls by the chief executive officer and the principal
financial officer.

PART II.

OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the opinion of the management of the Corporation, there are no proceedings
pending to which the Corporation or its subsidiary are a party or to which their
property is subject, which, if determined adversely to the Corporation or its
subsidiary, would be material in relation to the Corporation's or its
subsidiary's financial condition. There are no proceedings pending other than
ordinary routine litigation incident to the business of the Corporation or its
subsidiary. In addition, no material proceedings are pending or are known to be
threatened or contemplated against the Corporation or its subsidiary by
government authorities.

ITEM 2.  CHANGES IN SECURITIES

      Not applicable

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

      Not applicable

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

                                       18

<PAGE>

         Not applicable

ITEM 5.  OTHER INFORMATION

         Not applicable

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
    a)       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 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.)

                  4        Instruments Defining the Right of Security Holders
                           (See Exhibit 3(i) and 3 (ii), above).

                  11       Statement Re: Computation of Per Share Earnings (See
                           Management Discussion and Analysis, above).

                  99.1     Certification of Chief Executive Officer of Neffs
                           Bancorp, Inc., Pursuant to section 906 of the
                           Sarbanes-Oxley Act of 2002.

                  99.2     Certification of Principal Financial Officer of Neffs
                           Bancorp, Inc., Pursuant to section 906 of the
                           Sarbanes-Oxley Act of 2002.

    b)       Reports on Form 8-K

                   None.

                                       19

<PAGE>

                                   SIGNATURES

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

                                          NEFFS BANCORP, INC.

Date: 05/12/03                           /s/ John J. Remaley
                                         --------------------------
                                          John J. Remaley, President

Date: 05/12/03                           /s/ Duane J. Costenbader
                                         -------------------------------------
                                          Duane J. Costenbader, Asst. Secretary

                                       20

<PAGE>

          CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADDED BY
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John J. Remaley, Chief Executive Officer, certify that:

1)       I have reviewed this quarterly report on Form 10-Q of Neffs Bancorp,
         Inc.

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

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

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

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

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

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

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

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

                                       21

<PAGE>

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

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

Date: May 12, 2003                          By: /s/ John J. Remaley
                                                    John J. Remaley
                                                    Chief Executive Officer

                                       22

<PAGE>

          CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADDED BY
                 SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Duane J. Costenbader, Principal Financial Officer, certify that:

         1)       I have reviewed this quarterly report on Form 10-Q of Neffs
                  Bancorp, Inc.

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

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

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

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

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

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

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

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

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

                                       23

<PAGE>

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

Date: May 12, 2003                    By: /s/ Duane J. Costenbader
                                              Duane J. Costenbader
                                              Principal Financial Officer

                                       24