EXHIBIT 99.1

FOR IMMEDIATE RELEASE                           Contact: Claire M. Chadwick, CFO
                                                          973-669-7366, ext. 267

                    PENNFED FINANCIAL SERVICES, INC. REPORTS
                    ----------------------------------------
                            SECOND QUARTER EARNINGS
                            -----------------------

         WEST ORANGE,  NJ, February 9, 2007 - PennFed Financial  Services,  Inc.
(NASDQ:PFSB), the $2.3 billion holding company for New Jersey-based Penn Federal
Savings  Bank,  announced  a loss of 12 cents per share  for its  second  fiscal
quarter ended December 31, 2006.  The loss was  attributable  to  merger-related
expenses.  Earnings  for the  comparable  prior year  quarter  were 26 cents per
diluted share.

         For the first six months of fiscal 2007, PennFed reported earnings of 6
cents  per  diluted  share,  compared  to 56 cents  per  diluted  share  for the
comparable six months ended December 31, 2005.

         On November 2, 2006, the Company  announced the signing of a definitive
agreement  pursuant to which PennFed will merge with and into New York Community
Bancorp,  Inc.  PennFed  shareholders  will  receive  1.222  shares  of New York
Community  Bancorp common stock in a tax-free exchange for each share of PennFed
common  stock held at the  closing  date.  The  transaction  is  expected  to be
completed  on or about  March  31,  2007,  pending  the  approval  of  PennFed's
stockholders and the approval of state and federal regulatory agencies. Included
in  the  Company's   results  is  $4.6  million  of   merger-related   expenses,
representing  attorney fees,  investment banking fees and compensation  payments
made under the merger agreement.  The merger-related  expenses had the effect of
reducing  earnings  per share by $0.27 and $0.26 per share for the three  months
and six months ended December 31, 2006, respectively, net of related tax.

                                     -more-

<page>

PennFed 2Q-2007
Page 2

         Certain information  provided in this press release excludes income and
expense items which  management  believes should be excluded in order to provide
investors  with a clear  understanding  of the results of the  Company's  normal
business  operations.  These items,  which are included in the financial results
prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP)
but which are excluded from adjusted results,  are described in a reconciliation
table following this press release.

         PennFed's net interest  margin of 1.34% for the quarter ended  December
31, 2006 reflects 4 basis points of compression from the September 2006 quarter.
"We had anticipated some margin pressure, but now feel that stabilization of net
interest  margin has begun," said Joseph L.  LaMonica,  PennFed's  President and
Chief Executive Officer.

         "While  non-performing  assets showed a slight increase in the quarter,
the Company's asset quality remains  stellar,"  LaMonica stated.  Non-performing
assets of $2.5  million  represented  just 0.10% of total assets at December 31,
2006. Actual chargeoffs continue to be minimal.

         The reported non-interest expense ratio was 1.78% for the December 2006
quarter.  However,  excluding  merger-related expenses, the Company continued to
maintain a ratio of non-interest  expenses to average assets of approximately 1%
for the fifth consecutive quarter.

         Total assets at December 31, 2006 of $2.339 billion reflected growth of
just over 1% since June 30, 2006.  Total loan production was $72 million for the
December  2006 quarter.  Demand for one- to  four-family  loans  continued to be
weak.  "Therefore,  the Company  continues to focus on the  origination  of home
equity loans in addition to one-

                                     -more-

<page>

PennFed 2Q-2007
Page 3

to four-family  mortgage loans and commercial real estate loans," said LaMonica.
Although  slightly  below  the  pace of the  previous  few  quarters,  PennFed's
consumer  loan  originations  totaled  $32.1  million - a 15% increase  over the
December 31, 2005 quarter.

         Deposits grew $132.2 million, or over 9%, to $1.547 billion at December
31,  2006  compared  to $1.415  billion at June 30,  2006.  While the New Jersey
deposit market remains highly  competitive,  checking and money market  balances
increased  $11 million,  or 4%, since June 30,  2006.  The Company  continued to
experience a shift in deposit mix as savings  account  customers  moved funds to
other higher yielding alternatives. Growth in CDs was primarily due to increased
municipal  deposit  relationships  as well as the  shift  of funds  into  higher
interest-bearing   products.   The  Company  continues  to  monitor  alternative
wholesale  funding  sources and remains  committed  to utilize such funding when
appropriate.

         PennFed  stockholders  of record as of  February 9, 2007 will be paid a
cash dividend of 7 cents per share on February 23, 2007.

         Penn Federal Savings Bank maintains 24 New Jersey branch  offices.  The
Bank's deposits are insured by the Federal Deposit Insurance Corporation.

         This  release  contains  words or  phrases,  such as "will,"  "expect,"
"anticipate," "continue" and similar expressions,  that are intended to identify
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation Reform Act of 1995. These statements are subject to certain risks and
uncertainties,   including,   among  other  things,   changes  in  economic  and
competitive  conditions  in the  Company's  market area,  changes in policies by
regulatory agencies, fluctuations in interest rates and

                                     -more-

<page>

PennFed 2Q-2007
Page 4

demand for loans in the Company's  market area, the  relationship  of short-term
interest rates to long-term interest rates,  competition and terrorist acts that
could cause actual results to differ  materially  from  historical  earnings and
those presently anticipated or projected.  The Company wishes to caution readers
not to place undue reliance on any forward-looking statements,  which speak only
as of the date made.  The  Company  wishes to advise  readers  that the  factors
listed above,  as well as other  factors,  could affect the Company's  financial
performance  and could cause the Company's  actual results for future periods to
differ  materially  from any opinions or  statements  expressed  with respect to
future periods in any current statements.

                                       ###
                           NOTE: SEE FINANCIAL TABLES


<page>

<table>
<caption>
                                               PennFed Financial Services, Inc.
                                       (Holding Company for Penn Federal Savings Bank)
                                         Selected Consolidated Financial Information
                                       (dollars in thousands, except per share amounts)

                                                           December 31,     September 30,       June 30,         December 31,
                                                              2006              2006              2006              2005
                                                          -------------     -------------     -------------     -------------

                                                              <c>               <c>               <c>               <c>
Selected Financial Condition Data:
     Cash and cash equivalents                            $      18,252     $      18,645     $      16,614     $      17,988
     Investments, net                                           440,723           445,442           445,296           425,405
     Mortgage-backed securities, net                             57,703            60,293            62,963            68,978
     Loans held for sale                                              0               285               217               242
     Loans receivable:
          One- to four-family mortgage loans                  1,314,723         1,317,415         1,302,230         1,222,023
          Commercial and multi-family real estate loans         170,544           170,807           172,600           170,653
          Consumer loans                                        234,598           219,840           204,446           166,723
          Allowance for loan losses                              (5,859)           (5,865)           (5,888)           (5,913)
          Other, net                                             10,755            10,804            10,619             9,592
                                                          -------------     -------------     -------------     -------------
     Loans receivable, net                                    1,724,761         1,713,001         1,684,007         1,563,078

     FHLB stock                                                  25,971            26,511            27,714            25,028
     Other assets                                                71,137            70,085            69,699            60,546
                                                          -------------     -------------     -------------     -------------
     Total assets                                         $   2,338,547     $   2,334,262     $   2,306,510     $   2,161,265
                                                          =============     =============     =============     =============

     Deposits:
          Checking and money market                       $     323,565     $     315,103     $     312,489     $     266,674
          Savings                                               268,100           280,052           300,247           335,367
          Certificates of deposit and accrued interest          955,091           906,651           801,852           784,334
                                                          -------------     -------------     -------------     -------------
     Total deposits                                           1,546,756         1,501,806         1,414,588         1,386,375

     FHLB advances                                              480,000           465,000           465,465           450,465
     Other borrowings                                           124,801           179,164           240,193           141,770
     Junior subordinated debentures                              42,148            42,138            42,126            42,104
     Other liabilities                                           21,452            21,772            20,717            16,379
     Stockholders' equity                                       123,390(a)        124,382           123,421           124,172
                                                          -------------     -------------     -------------     -------------
     Total liabilities and stockholders' equity           $   2,338,547     $   2,334,262     $   2,306,510     $   2,161,265
                                                          =============     =============     =============     =============

     Book value per share                                 $        9.52     $        9.69     $        9.59     $        9.54

     Equity to assets                                              5.28%             5.33%             5.35%             5.75%

Asset Quality Data:
     Non-performing loans                                 $       2,455     $       2,140     $       1,780     $       2,718
     Real estate owned, net                                           0                 0                 0               502
                                                          -------------     -------------     -------------     -------------
     Total non-performing assets                          $       2,455     $       2,140     $       1,780     $       3,220
                                                          =============     =============     =============     =============

     Non-performing loans to total loans                           0.14%             0.12%             0.11%             0.17%
     Non-performing assets to total assets                         0.10%             0.09%             0.08%             0.15%
     Allowance for loan losses to non-performing loans           238.66%           274.07%           330.79%           217.55%
     Allowance for loan losses to total gross loans                0.34%             0.34%             0.35%             0.38%

Regulatory Capital Ratios (of the Bank):
     Tangible capital ratio (requirement - 1.50%)                  7.20%             7.17%             7.33%             7.80%
     Core capital ratio (requirement - 4.00%)                      7.20%             7.17%             7.33%             7.80%
     Risk-based capital ratio (requirement - 8.00%)               13.38%            13.43%            13.81%            14.89%

</table>

(a) Common shares outstanding as of December 31, 2006 totaled 12,963,201 shares.

<page>
<table>
<caption>
                                           PennFed Financial Services, Inc.
                                    (Holding Company for Penn Federal Savings Bank)
                                      Selected Consolidated Financial Information
                                   (dollars in thousands, except per share amounts)

                                                          For the three months ended       For the six months ended
                                                                 December 31,                    December 31,
                                                        -----------------------------    ----------------------------
                                                            2006             2005            2006            2005
                                                        ------------     ------------    ------------    ------------

                                                           <c>              <c>             <c>             <c>
Selected Operating Data:
   Interest and dividend income                         $     31,703     $     28,350    $     62,946    $     56,033
   Interest expense                                           24,337           18,715          48,052          36,206
                                                        ------------     ------------    ------------    ------------
        Net interest and dividend income                       7,366            9,635          14,894          19,827
   Provision for loan losses                                       0                0               0               0
                                                        ------------     ------------    ------------    ------------
   Net interest and dividend income
        after provision for loan losses                        7,366            9,635          14,894          19,827
   Non-interest income:
        Fees and service charges                                 778              704           1,503           4,174
        Net gain (loss) from real estate owned                     0                2              22              (1)
        Net gain on sales of loans                                70               21              79             143
        Income on Bank Owned Life Insurance                      318              219             616             435
        Other                                                    231              153             649             334
                                                        ------------     ------------    ------------    ------------
        Total non-interest income                              1,397            1,099           2,869           5,085
   Non-interest expenses:
        Compensation & employee benefits                       3,365            3,067           6,355           6,326
        Net occupancy expense                                    571              594           1,158           1,179
        Equipment                                                548              538           1,141           1,509
        Advertising                                              143              165             263             299
        Federal deposit insurance premium                         44               45              87              87
        Extinguishment of debt                                     0                0               0           1,351
        Merger-related expense                                 4,576                0           4,576               0
        Other                                                  1,152              979           2,404           2,390
                                                        ------------     ------------    ------------    ------------
        Total non-interest expenses                           10,399            5,388          15,984          13,141
                                                        ------------     ------------    ------------    ------------
   Income (loss) before income taxes                          (1,636)           5,346           1,779          11,771
   Income tax expense (benefit)                                 (144)           1,892           1,007           4,185
                                                        ------------     ------------    ------------    ------------
   Net income (loss)                                    $     (1,492)    $      3,454    $        772    $      7,586
                                                        ============     ============    ============    ============

   Weighted avg. no. of basic common shares               12,878,599       13,086,856      12,870,294      13,175,181
   Weighted avg. no. of diluted common shares             12,878,599       13,509,140      13,185,641      13,604,862
   Basic earnings (loss) per common share               $      (0.12)    $       0.26    $       0.06    $       0.58
   Diluted earnings (loss) per common share             $      (0.12)    $       0.26    $       0.06    $       0.56

   Return on average common equity (a)                        -4.81%            11.09%           1.25%          12.11%

   Return on average assets (a)                               -0.26%             0.65%           0.07%           0.72%

   Average total assets                                 $  2,330,958     $  2,137,449    $  2,323,633    $  2,112,355

   Average earning assets                               $  2,249,829     $  2,066,915    $  2,243,732    $  2,042,199

   Yield on average interest-earning assets                     5.61%            5.46%           5.59%           5.47%
   Cost of average deposits and borrowings                      4.40%            3.70%           4.36%           3.63%
                                                        ------------     ------------    ------------    ------------
   Net interest rate spread                                     1.21%            1.76%           1.23%           1.84%
                                                        ============     ============    ============    ============

   Net interest margin                                          1.34%            1.89%           1.36%           1.97%

   Non-interest exp. as a % of avg. assets (a)                  1.78%            1.01%           1.38%           1.24%
   Efficiency ratio                                           118.67%           50.20%          90.10%          52.75%

   Loan originations and purchases:
        One- to four-family mortgage loans              $     34,004     $     73,061    $     87,632    $    191,290
        Commercial and multi-family real estate loans          5,434           14,387           8,622          22,702
        Consumer loans                                        32,074           27,996          65,345          58,466
                                                        ------------     ------------    ------------    ------------
        Total loan originations and purchases           $     71,512     $    115,444    $    161,599    $    272,458
                                                        ============     ============    ============    ============
</table>

(a) - Annualized.

<page>
<table>
<caption>
                                      PennFed Financial Services, Inc.
                               (Holding Company for Penn Federal Savings Bank)
                                 Selected Consolidated Financial Information
                              (dollars in thousands, except per share amounts)

                                     CALCULATION OF ADJUSTED NET INCOME
                                     ----------------------------------

                                                For the three months ended       For the six months ended
                                                       December 31,                    December 31,
                                              -----------------------------    -----------------------------
                                                  2006             2005            2006             2005
                                              ------------     ------------    ------------     ------------

                                             <c>              <c>             <c>              <c>
Reported net income (loss)                    $     (1,492)    $      3,454    $        772     $      7,586

Adjustments:
     Merger-related expense                          4,576                0           4,576                0
     Commercial loan prepayment
       premium                                           0                0               0           (2,688)
     Prepayment penalty on FHLB
       advances                                          0                0               0            1,351
     Acceleration of depreciation on branch
       automation system software                        0                0               0              372
     Increase in obligation under certain
       long-term benefit plans                           0                0               0              259
     Net tax effect                                 (1,130)               0          (1,130)             247
                                              ------------     ------------    ------------     ------------
     Adjustments, net of taxes                       3,446                0           3,446             (459)

                                              ------------     ------------    ------------     ------------
"Adjusted" net income                         $      1,954     $      3,454    $      4,218     $      7,127
                                              ============     ============    ============     ============

Weighted avg. no. of basic common shares        12,878,599       13,086,856      12,870,294       13,175,181
Weighted avg. no. of diluted common shares      13,192,798       13,509,140      13,185,641       13,604,862
Basic earnings per common share               $       0.15     $       0.26    $       0.33     $       0.54
Diluted earnings per common share             $       0.15     $       0.26    $       0.32     $       0.52

Return on average common equity (a)                   6.30%           11.09%           6.81%           11.38%

Return on average assets (a)                          0.34%            0.65%           0.36%            0.67%

Non-interest exp. as a % of avg. assets (a)           1.00%            1.01%           0.98%            1.06%
Efficiency ratio                                     66.45%           50.20%          64.30%           50.21%

</table>

(a) - Annualized.

<page>
<table>
<caption>
                                                 PennFed Financial Services, Inc.
                                          (Holding Company for Penn Federal Savings Bank)
                                            Selected Consolidated Financial Information
                                         (dollars in thousands, except per share amounts)

                                                                               For the three months ended
                                                        --------------------------------------------------------------------------
                                                         Dec. 31,         Sep. 30,       Jun. 30,         Mar. 31,        Dec. 31,
                                                           2006             2006           2006             2006           2005
                                                        -----------     -----------    ------------     -----------     ----------

                                                          <c>             <c>             <c>             <c>            <c>
Selected Operating Data:
   Interest and dividend income                         $    31,703     $    31,243    $     30,270     $    28,973     $   28,350
   Interest expense                                          24,337          23,715          21,814          19,762         18,715
                                                        -----------     -----------    ------------     -----------     ----------
        Net interest and dividend income                      7,366           7,528           8,456           9,211          9,635
   Provision for loan losses                                      0               0               0               0              0
                                                        -----------     -----------    ------------     -----------     ----------
   Net interest and dividend income
        after provision for loan losses                       7,366           7,528           8,456           9,211          9,635
   Non-interest income:
        Fees and service charges                                778             725             718             778            704
        Net gain (loss) from real estate owned                    0              22              (2)             (3)             2
        Net gain on sales of loans                               70               9               0               0             21
        Income on Bank Owned Life Insurance                     318             298             293             239            219
        Other                                                   231             418             204             201            153
                                                        -----------     -----------    ------------     -----------     ----------
        Total non-interest income                             1,397           1,472           1,213           1,215          1,099
   Non-interest expenses:
        Compensation & employee benefits                      3,365           2,990           2,742           3,134          3,067
        Net occupancy expense                                   571             587             583             664            594
        Equipment                                               548             593             534             530            538
        Advertising                                             143             120             170             168            165
        Federal deposit insurance premium                        44              43              43              45             45
        Extinguishment of debt                                    0               0               0               0              0
        Merger-related expense                                4,576               0               0               0              0
        Other                                                 1,152           1,252           1,325           1,119            979
                                                        -----------     -----------    ------------     -----------     ----------
        Total non-interest expenses                          10,399           5,585           5,397           5,660          5,388
                                                        -----------     -----------    ------------     -----------     ----------
   Income (loss) before income taxes                         (1,636)          3,415           4,272           4,766          5,346
   Income tax expense (benefit)                                (144)          1,151           1,509           1,717          1,892
                                                        -----------     -----------    ------------     -----------     ----------
   Net income (loss)                                    $    (1,492)    $     2,264    $      2,763     $     3,049     $    3,454
                                                        ===========     ===========    ============     ===========     ==========

   Weighted avg. no. of basic common shares              12,878,599      12,861,988      12,894,870      12,966,518     13,086,856
   Weighted avg. no. of diluted common shares            12,878,599      13,177,415      13,241,182      13,349,234     13,509,140
   Basic earnings (loss) per common share               $     (0.12)    $      0.18    $       0.21     $      0.24     $     0.26
   Diluted earnings (loss) per common share             $     (0.12)    $      0.17    $       0.21     $      0.23     $     0.26

   Return on average common equity (a)                       -4.81%            7.32%           8.97%           9.87%         11.09%

   Return on average assets (a)                              -0.26%            0.39%           0.49%           0.56%          0.65%

   Average total assets                                 $ 2,330,958     $ 2,316,308    $  2,267,507     $ 2,184,365     $2,137,449

   Average earning assets                               $ 2,249,829     $ 2,237,635    $  2,188,499     $ 2,111,183     $2,066,915

   Yield on average interest-earning assets                    5.61%           5.56%           5.53%           5.51%          5.46%
   Cost of average deposits and borrowings                     4.40%           4.31%           4.09%           3.90%          3.70%
                                                        -----------     -----------    ------------     -----------     ----------
   Net interest rate spread                                    1.21%           1.25%           1.44%           1.61%          1.76%
                                                        ===========     ===========    ============     ===========     ==========

   Net interest margin                                         1.34%           1.38%           1.56%           1.74%          1.89%

   Non-interest exp. as a % of avg. assets (a)                 1.78%           0.96%           0.95%           1.04%          1.01%
   Efficiency ratio                                          118.67%          62.21%          55.81%          54.27%         50.20%

   Loan originations and purchases:
        One- to four-family mortgage loans              $    34,004     $    53,628    $     84,925     $    64,637     $   73,061
        Commercial and multi-family real estate loans         5,434           3,188          12,353           7,005         14,387
        Consumer loans                                       32,074          33,271          36,472          36,791         27,996
                                                        -----------     -----------    ------------     -----------     ----------
        Total loan originations and purchases           $    71,512     $    90,087    $    133,750     $   108,433     $  115,444
                                                        ===========     ===========    ============     ===========     ==========
</table>

(a) - Annualized.

<page>
<table>
<caption>
                                              PennFed Financial Services, Inc.
                                       (Holding Company for Penn Federal Savings Bank)
                                         Selected Consolidated Financial Information
                                      (dollars in thousands, except per share amounts)


                                             CALCULATION OF ADJUSTED NET INCOME
                                             ----------------------------------

                                                                         For the three months ended
                                              -----------------------------------------------------------------------------
                                                Dec. 31,         Sep. 30,       Jun. 30,         Mar. 31,        Dec. 31,
                                                  2006             2006           2006             2006           2005
                                              ------------     ------------    ------------    ------------    ------------

                                           <c>              <c>             <c>             <c>             <c>
Reported net income (loss)                    $     (1,492)    $      2,264    $      2,763    $      3,049    $      3,454

Adjustments:
     Merger-related expense                          4,576                0               0               0               0
     Commercial loan prepayment
       premium                                           0                0               0               0               0
     Prepayment penalty on FHLB
       advances                                          0                0               0               0               0
     Acceleration of depreciation on branch
       automation system software                        0                0               0               0               0
     Increase in obligation under certain
       long-term benefit plans                           0                0               0               0               0
     Net tax effect                                 (1,130)               0               0               0               0
                                              ------------     ------------    ------------    ------------    ------------
     Adjustments, net of taxes                       3,446                0               0               0               0

                                              ------------     ------------    ------------    ------------    ------------
"Adjusted" net income                         $      1,954     $      2,264    $      2,763    $      3,049    $      3,454
                                              ============     ============    ============    ============    ============

Weighted avg. no. of basic common shares        12,878,599       12,861,988      12,894,870      12,966,518      13,086,856
Weighted avg. no. of diluted common shares      13,192,798       13,177,415      13,241,182      13,349,234      13,509,140
Basic earnings per common share               $       0.15     $       0.18    $       0.21    $       0.24    $       0.26
Diluted earnings per common share             $       0.15     $       0.17    $       0.21    $       0.23    $       0.26

Return on average common equity (a)                   6.30%            7.32%           8.97%           9.87%          11.09%

Return on average assets (a)                          0.34%            0.39%           0.49%           0.56%           0.65%

Non-interest exp. as a % of avg. assets (a)           1.00%            0.96%           0.95%           1.04%           1.01%
Efficiency ratio                                     66.45%           62.21%          55.81%          54.27%          50.20%

</table>

(a) - Annualized.