----

| At      and For the Year Ended December 31,(Dollars      in thousands, except per share amounts) |   | 2009   |       |   | 2008   |   |       | 2007(1) |   |   | 2006       |   |   | 2005   |       |
|--------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|---------|--------|--------|------------|--------|--------|--------|------------|
|                                                                                             |   |   |       |   |   |   |       |    |   |   |       |   |   |   |       |
| Financial      Condition Data:                                                                   |   |   |       |   |   |   |       |    |   |   |       |   |   |   |       |
| Total      asset                                                                                 |   | $      | 4,673,680  |   |   | $      | 4,002,050  |    |   | $      | 3,557,818  |   |   | $      | 2,300,219  |   |   | $ | 2,392,394 |   |
| Cash      and cash equivalents                                                                   |   |   | 179,701    |   |   |   | 44,389     |    |   |   | 58,327     |   |   |   | 21,074     |   |   |   | 32,927 |   |
| Trading      Securities                                                                          |   |   | 31,825     |   |   |   | -          |    |   |   | -          |   |   |   | -          |   |   |   | - |   |
| Investment      securities available-for-sale                                                    |   |   | 1,315,174  |   |   |   | 1,142,154  |    |   |   | 968,609    |   |   |   | 348,484    |   |   |   | 359,444 |   |
| Investment      securities held-to-maturity                                                      |   |   | 48,009     |   |   |   | 76,014     |    |   |   | 111,986    |   |   |   | 130,357    |   |   |   | 163,320 |   |
| Loans      receivable, net                                                                       |   |   | 2,744,264  |   |   |   | 2,387,677  |    |   |   | 2,097,581  |   |   |   | 1,671,457  |   |   |   | 1,716,057 |   |
| Deposits                                                                                         |   |   | 3,509,247  |   |   |   | 2,741,679  |    |   |   | 2,465,163  |   |   |   | 1,678,054  |   |   |   | 1,665,821 |   |
| Federal      Home Loan Bank Advances                                                             |   |   | 169,750    |   |   |   | 174,750    |    |   |   | 185,750    |   |   |   | 196,550    |   |   |   | 312,797 |   |
| Other      borrowed funds                                                                        |   |   | 263,870    |   |   |   | 405,304    |    |   |   | 221,372    |   |   |   | 98,346     |   |   |   | 95,414 |   |
| Stockholders’      equity                                                                  |   |   | 637,001    |   |   |   | 610,540    |    |   |   | 619,797    |   |   |   | 280,415    |   |   |   | 278,372 |   |
|                                                                                             |   |   |       |   |   |   |       |    |   |   |       |   |   |   |       |   |   |   |   |   |
| Operating      Data:                                                                             |   |   |       |   |   |   |       |    |   |   |       |   |   |   |       |   |   |   |   |   |
| Interest      income                                                                             |   | $      | 192,974    |   |   | $      | 192,926    |    |   | $      | 157,894    |   |   | $      | 127,326    |   |   | $ | 117,091 |   |
| Interest      expense                                                                            |   |   | 65,632     |   |   |   | 78,915     |    |   |   | 73,774     |   |   |   | 62,896     |   |   |   | 51,363 |   |
| Net      interest income                                                                         |   |   | 127,342    |   |   |   | 114,011    |    |   |   | 84,120     |   |   |   | 64,430     |   |   |   | 65,728 |   |
| Provision      for loan losses                                                                   |   |   | 15,697     |   |   |   | 18,901     |    |   |   | 2,470      |   |   |   | 1,575      |   |   |   | 1,703 |   |
| Net      interest income after provision for loan losses                                         |   |   | 111,645    |   |   |   | 95,110     |    |   |   | 81,650     |   |   |   | 62,855     |   |   |   | 64,025 |   |
| Non-interest      income                                                                         |   |   | 26,847     |   |   |   | 23,604     |    |   |   | 13,372     |   |   |   | 10,531     |   |   |   | 10,862 |   |
| Non-interest      expenses                                                                       |   |   | 119,866    |   |   |   | 98,303     |    |   |   | 101,032    |   |   |   | 59,439     |   |   |   | 56,961 |   |
| Income      (Loss)  before income taxes                                                |   |   | 18,626     |   |   |   | 20,411     |    |   |   | (6,010     | )      |   |   | 13,947     |   |   |   | 17,928 |   |
| Income      tax expense (benefit)                                                                |   |   | 1,537      |   |   |   | 3,865      |    |   |   | (4,465     | )      |   |   | 2,322      |   |   |   | 4,728 |   |
| Net      income (loss)                                                                           |   | $      | 17,089     |   |   | $      | 16,546     |    |   | $      | (1,545     | )      |   | $      | 11,625     |   |   | $ | 13,200 |   |
|                                                                                             |   |   |       |   |   |   |       |    |   |   |       |   |   |   |       |   |   |   |   |   |
| Average      common shares outstanding – Basic                                             |   |   | 77,693,082 |   |   |   | 78,702,419 |    |   |   | 61,374,792 |   |   |   | 45,792,775 |   |   |   | 45,792,775 |   |
| Average      common shares outstanding – Diluted                                           |   |   | 77,723,668 |   |   |   | 78,702,419 |    |   |   | 61,374,792 |   |   |   | 45,792,775 |   |   |   | 45,792,775 |   |
| Net      income (loss) earnings per share - Basic                                                |   | $      | 0.22       |   |   | $      | 0.21       |    |   | $      | (0.03      | )      |   | $      | 0.25       |   |   | $ | 0.29 |   |
| Net      income (loss) earnings per share – Diluted                                        |   | $      | 0.22       |   |   | $      | 0.21       |    |   | $      | (0.03      | )      |   | $      | 0.25       |   |   | $ | 0.29 |   |
| Dividends      per share (2)                                                                     |   | $      | 0.00       |   |   | $      | 0.00       |    |   | $      | 0.01       |   |   | $      | 0.00       |   |   | $ | 0.00 |   |

| (1)   | 2007      financial results reflect the acquisition of FMS Financial Corporation and      the Company’s minority stockoffering. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Reflects      dividends paid to Beneficial Savings Bank MHC, in April 2007, prior to      Beneficial Mutual Bancorp’s minority stock offering in July      2007.  See Note 3, “Minority Stock Offering and Mergers and      Acquisitions”, of the Notes to the Consolidated Financial Statements for      further discussion. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| At      and For the Year Ended December 31,                                       |   | 2009   |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|-----------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                                                              |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Performance      Ratios:                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Return      on average assets                                                     |   |   | 0.40    | %      |   |   | 0.44    | %      |   |   | (0.05   | )%     |   |   | 0.49    | % |   |   | 0.56 | % |
| Return      on average equity                                                     |   |   | 2.74    |   |   |   | 2.70    |   |   |   | (0.35   | )      |   |   | 4.04    |   |   |   | 4.83 |   |
| Interest      rate spread (1)                                                     |   |   | 2.99    |   |   |   | 2.86    |   |   |   | 2.59    |   |   |   | 2.45    |   |   |   | 2.57 |   |
| Net      interest margin (2)                                                      |   |   | 3.28    |   |   |   | 3.33    |   |   |   | 3.17    |   |   |   | 2.87    |   |   |   | 2.90 |   |
| Other      expenses to average assets                                             |   |   | 2.80    |   |   |   | 2.60    |   |   |   | 3.48    |   |   |   | 2.51    |   |   |   | 2.40 |   |
| Efficiency      ratio (3)                                                         |   |   | 77.74   |   |   |   | 71.43   |   |   |   | 102.68  |   |   |   | 79.29   |   |   |   | 74.37 |   |
| Average      interest-earning assets to average interest-bearing      liabilities |   |   | 117.00  |   |   |   | 119.98  |   |   |   | 120.96  |   |   |   | 114.86  |   |   |   | 114.80 |   |
| Average      equity to average assets                                             |   |   | 14.57   |   |   |   | 16.26   |   |   |   | 15.06   |   |   |   | 12.20   |   |   |   | 11.52 |   |
|                                                                              |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Capital      Ratios (4):                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Tier      1 capital to average assets                                             |   |   | 9.81    |   |   |   | 11.25   |   |   |   | 12.20   |   |   |   | 11.73   |   |   |   | 11.37 |   |
| Tier      1 capital to risk-weighted assets                                       |   |   | 16.71   |   |   |   | 17.80   |   |   |   | 19.80   |   |   |   | 17.66   |   |   |   | 16.83 |   |
| Total      risk-based capital to risk-weighted assets                             |   |   | 17.98   |   |   |   | 19.05   |   |   |   | 20.92   |   |   |   | 18.78   |   |   |   | 17.91 |   |
|                                                                              |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Asset      Quality Ratios:                                                        |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Allowance      for loan losses as a percent of total loans                        |   |   | 1.64    |   |   |   | 1.52    |   |   |   | 1.10    |   |   |   | 1.03    |   |   |   | 0.99 |   |
| Allowance      for loan losses as a percent of non-performing loans               |   |   | 262.75  |   |   |   | 97.00   |   |   |   | 143.10  |   |   |   | 213.09  |   |   |   | 331.32 |   |
| Net      charge-offs to average outstanding loans during the period               |   |   | 0.25    |   |   |   | 0.24    |   |   |   | 0.08    |   |   |   | 0.07    |   |   |   | 0.10 |   |
| Nonperforming      loans as a percent of total loans (5)                          |   |   | 4.32    |   |   |   | 1.57    |   |   |   | 0.77    |   |   |   | 0.48    |   |   |   | 0.30 |   |
| Nonperforming      assets as a percent of total assets (5)                        |   |   | 3.49    |   |   |   | 1.52    |   |   |   | 0.59    |   |   |   | 0.48    |   |   |   | 0.35 |   |
|                                                                              |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Other      Data:                                                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Number      of offices (6)                                                        |   |   | 68      |   |   |   | 72      |   |   |   | 72      |   |   |   | 39      |   |   |   | 38 |   |
| Number      of deposit accounts                                                   |   |   | 284,531 |   |   |   | 276,377 |   |   |   | 284,742 |   |   |   | 163,140 |   |   |   | 163,740 |   |
| Number      of loans                                                              |   |   | 64,690  |   |   |   | 65,951  |   |   |   | 62,017  |   |   |   | 61,478  |   |   |   | 67,242 |   |

| (1)   | Represents      the difference between the weighted average yield on average      interest-earning assets and the weighted average cost on average      interest-bearing liabilities. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Represents      net interest income as a percent of average interest-earning      assets. |
|-----------------|-------------------------------------------------------------------------------------------|

| (3)   | Represents      other non-interest expenses divided by the sum of net interest income and      non-interest income. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| (4)   | Ratios      are for Beneficial Bank. |
|-----------------|--------------------------------------|

| (5)   | Nonperforming      loans include accruing loans past due 90 days or  more. |
|-----------------|----------------------------------------------------------------------------|

| (6)   | During      2008 one new office was opened, one office was relocated to a new building      and one office was closed. Two additional offices were opened in fiscal      2007 and 31 additional offices were acquired in the FMS Financial      merger. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| ● | Expanding      our franchise through the opening of additional branch offices in our      market area and careful review of acquisition    opportunities; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Pursuing      opportunities to increase commercial lending in our market      area; |
|---------|-------------------------------------------------------------------------------------|

| ● | Continuing      to use consistent, disciplined underwriting practices to maintain the      quality of our loan portfolio; |
|---------|---------------------------------------------------------------------------------------------------------------------------|

| ● | Growing      non-interest income by expanding the products and services we offer our      customers, including the expansion of our insurance services and      investment services; and |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Building      profitable business and consumer relationships by providing superior      customer service with an emphasis on growing transaction deposit accounts      and deposit balances. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                 |   | 2009   |      |   | 2008    |   |   | 2007   |   |   | 2006      |   |   | 2005   |   |
|------------------------------------------------------|--------|--------|-----------|--------|---------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|
| December31,(Dollars      in thousands)               |   | Amount |      |   | Percent |   |   | Amount |   |   | Percent   |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
| Real      estate loans:                              |   |   |      |   |    |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |   |      |   |    |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four      family                              |   | $      | 648,465   |   |    |   | 23.26  | %      |   | $      | 508,097   |   |   |   | 20.99  | % |   | $ | 479,817 |   |   |   | 22.69 | % |   | $ | 278,970 |   |   |   | 16.61 | % |   | $ | 294,960 |   |   |   | 17.12 | % |
| Commercial      real estate (1)                      |   |   | 783,043   |   |    |   | 28.08  |   |   |   | 787,748   |   |   |   | 32.55  |   |   |   | 693,733 |   |   |   | 32.80 |   |   |   | 409,702 |   |   |   | 24.38 |   |   |   | 370,086 |   |   |   | 21.48 |   |
| Residential      construction                        |   |   | 11,938    |   |    |   | 0.43   |   |   |   | 6,055     |   |   |   | 0.25   |   |   |   | 1,958 |   |   |   | 0.09 |   |   |   | 9,967 |   |   |   | 0.59 |   |   |   | 16,529 |   |   |   | 0.96 |   |
| Total      real estate loans                         |   |   | 1,443,446 |   |    |   | 51.77  |   |   |   | 1,301,900 |   |   |   | 53.79  |   |   |   | 1,175,508 |   |   |   | 55.58 |   |   |   | 698,639 |   |   |   | 41.58 |   |   |   | 681,575 |   |   |   | 39.56 |   |
|                                                 |   |   |      |   |    |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      business loans                       |   |   | 524,544   |   |    |   | 18.81  |   |   |   | 320,640   |   |   |   | 13.25  |   |   |   | 136,345 |   |   |   | 6.45 |   |   |   | 98,612 |   |   |   | 5.87 |   |   |   | 66,818 |   |   |   | 3.88 |   |
|                                                 |   |   |      |   |    |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer      loans:                                 |   |   |      |   |    |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Home      equity loans and lines of      credit |   |   | 313,697   |   |    |   | 11.25  |   |   |   | 362,381   |   |   |   | 14.98  |   |   |   | 390,762 |   |   |   | 18.48 |   |   |   | 384,370 |   |   |   | 22.88 |   |   |   | 394,432 |   |   |   | 22.90 |   |
| Automobile      loans                                |   |   | 140,196   |   |    |   | 5.03   |   |   |   | 142,097   |   |   |   | 5.87   |   |   |   | 174,769 |   |   |   | 8.26 |   |   |   | 232,675 |   |   |   | 13.85 |   |   |   | 271,209 |   |   |   | 15.74 |   |
| Other      consumer loans (2)                        |   |   | 366,524   |   |    |   | 13.14  |   |   |   | 293,106   |   |   |   | 12.11  |   |   |   | 237,442 |   |   |   | 11.23 |   |   |   | 265,878 |   |   |   | 15.82 |   |   |   | 308,605 |   |   |   | 17.92 |   |
| Total      consumer loans                            |   |   | 820,417   |   |    |   | 29.42  |   |   |   | 797,584   |   |   |   | 32.96  |   |   |   | 802,973 |   |   |   | 37.97 |   |   |   | 882,923 |   |   |   | 52.55 |   |   |   | 974,246 |   |   |   | 56.56 |   |
| Total      loans                                     |   |   | 2,788,407 |   |    |   | 100.00 | %      |   |   | 2,420,124 |   |   |   | 100.00 | % |   |   | 2,114,826 |   |   |   | 100.00 | % |   |   | 1,680,174 |   |   |   | 100.00 | % |   |   | 1,722,639 |   |   |   | 100.00 | % |
|                                                 |   |   |      |   |    |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      deferred loan costs                         |   |   | 1,712     |   |    |   |   |   |   |   | 4,458     |   |   |   |   |   |   |   | 6,096 |   |   |   |   |   |   |   | 8,651 |   |   |   |   |   |   |   | 10,514 |   |   |   |   |   |
| Allowance      for losses                            |   |   | (45,855   | )      |    |   |   |   |   |   | (36,905   | )      |   |   |   |   |   |   | (23,341 | ) |   |   |   |   |   |   | (17,368 | ) |   |   |   |   |   |   | (17,096 | ) |   |   |   |   |
| Loans,      net                                      |   | $      | 2,744,264 |   |    |   |   |   |   | $      | 2,387,677 |   |   |   |   |   |   | $ | 2,097,581 |   |   |   |   |   |   | $ | 1,671,457 |   |   |   |   |   |   | $ | 1,716,057 |   |   |   |   |   |

| (1) | At      December 31, 2009, we had a total of 135 land acquisition and development      loans totaling $239.6 million, which consist of 73 residential land      acquisition and development loans totaling $96.8 million and 62 commercial      land acquisition and development loans totaling $142.8      million. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | At      December 31, 2008, includes loans totaling $222.3 million for the      acquisition and development of real estate.  We continually      communicate and monitor on a regular basis the progress of these      loans.  These loans are within our local region and are not      spread throughout the country. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | At      December 31, 2009, includes $256.4 million in student loans, which are      primarily government guaranteed, $55.6 million secured by recreational      vehicles, $45.4 million secured by boats, $4.9 million secured by mobile      homes and manufactured housing, and $2.6 million in personal      loans. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | At      December 31, 2008, includes $162.5 million in student loans, which are      primarily government guaranteed, $64.3 million in loans secured by      recreational vehicles, $55.8 million in loans secured by boats, $6.2      million in loans secured by mobile homes and manufactured housing, and      $4.3 million in personal loans. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| December      31, 2009(Dollars      in thousands) |   | One-to-FourFamily |    |   | CommercialReal      Estate |   |    | ResidentialConstruction |   |   | CommercialBusiness |   |   | HomeEquity |    |   | Auto-mobile |   |    | OtherConsumer |   |   | TotalLoans |   |
|---------------------------------------------------|--------|-------------------|---------|--------|----------------------------|--------|---------|-------------------------|--------|--------|--------------------|--------|--------|------------|---------|--------|-------------|--------|---------|---------------|--------|--------|------------|--------|
|                                              |   |              |    |   |                       |   |    |                    |   |   |               |   |   |       |    |   |        |   |    |          |   |   |       |   |
| Amounts      due in:                              |   |              |    |   |                       |   |    |                    |   |   |               |   |   |       |    |   |        |   |    |          |   |   |       |   |
|                                              |   |              |    |   |                       |   |    |                    |   |   |               |   |   |       |    |   |        |   |    |          |   |   |       |   |   |   |   |   |   |   |   |   |
| One      year or less                             |   | $                 | 372     |   |                       | $      | 281,686 |                    |   | $      | 11,861             |   |   | $          | 94,383  |   |        | $      | 45,758  |          |   | $      | 5,254      |   |   | $ | 1,892 |   |   | $ | 441,206 |   |
|                                              |   |              |    |   |                       |   |    |                    |   |   |               |   |   |       |    |   |        |   |    |          |   |   |       |   |   |   |   |   |   |   |   |   |
| More      than one to five years                  |   |              | 15,501  |   |                       |   | 109,556 |                    |   |   | 77                 |   |   |       | 102,532 |   |        |   | 54,044  |          |   |   | 100,436    |   |   |   | 9,416 |   |   |   | 391,562 |   |
|                                              |   |              |    |   |                       |   |    |                    |   |   |               |   |   |       |    |   |        |   |    |          |   |   |       |   |   |   |   |   |   |   |   |   |
| More      than five to ten years                  |   |              | 92,312  |   |                       |   | 32,086  |                    |   |   | -                  |   |   |       | 60,143  |   |        |   | 89,952  |          |   |   | 34,506     |   |   |   | 63,885 |   |   |   | 372,884 |   |
|                                              |   |              |    |   |                       |   |    |                    |   |   |               |   |   |       |    |   |        |   |    |          |   |   |       |   |   |   |   |   |   |   |   |   |
| More      than ten years                          |   |              | 540,280 |   |                       |   | 359,715 |                    |   |   | -                  |   |   |       | 267,486 |   |        |   | 123,966 |          |   |   | -          |   |   |   | 291,331 |   |   |   | 1,582,778 |   |
|                                              |   |              |    |   |                       |   |    |                    |   |   |               |   |   |       |    |   |        |   |    |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Total                                             |   | $                 | 648,465 |   |                       | $      | 783,043 |                    |   | $      | 11,938             |   |   | $          | 524,544 |   |        | $      | 313,720 |          |   | $      | 140,196    |   |   | $ | 366,524 |   |   | $ | 2,788,430 |   |

| (Dollars      in thousands) |   | Fixed      Rates |      |   | Floating      orAdjustable      Rates |   |    | Total  |   |
|-----------------------------|--------|------------------|-----------|--------|---------------------------------------|--------|---------|--------|--------|
|                        |   |             |      |   |                                  |   |    |   |   |
| One-to-four      family     |   | $                | 599,527   |   |                                  | $      | 48,566  |   |   | $ | 648,093 |   |
| Commercial      real estate |   |             | 56,097    |   |                                  |   | 445,260 |   |   |   | 501,357 |   |
| Construction                |   |             | -         |   |                                  |   | 77      |   |   |   | 77 |   |
| Commercial      business    |   |             | 82,651    |   |                                  |   | 347,510 |   |   |   | 430,161 |   |
| Consumer                    |   |             | 700,953   |   |                                  |   | 66,583  |   |   |   | 767,536 |   |
| Total                       |   | $                | 1,439,228 |   |                                  | $      | 907,996 |   |   | $ | 2,347,224 |   |

----

| Year Ended December      31,(Dollars      in thousands)                            |   | 2009   |      |   | 2008   |   |      | 2007   |   |   | 2006      |   |   | 2005   |      |
|------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
|                                                                               |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Total      loans at beginning of period                                            |   | $      | 2,424,582 |   |   | $      | 2,120,922 |   |   | $      | 1,688,825 |   |   | $      | 1,733,153 |   |   | $ | 1,575,300 |   |
| Originations:                                                                      |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Real      estate loans:                                                            |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
|    One-to-four      family                                          |   |   | 183,666   |   |   |   | 100,403   |   |   |   | 33,988    |   |   |   | 27,306    |   |   |   | 43,505 |   |
|    Commercial      real estate                                      |   |   | 183,233   |   |   |   | 258,438   |   |   |   | 273,547   |   |   |   | 185,246   |   |   |   | 176,874 |   |
|    Residential      construction                                    |   |   | 8,940     |   |   |   | 8,462     |   |   |   | 1,959     |   |   |   | 8,978     |   |   |   | 18,048 |   |
|          Total      real estate loans |   |   | 375,839   |   |   |   | 367,303   |   |   |   | 309,494   |   |   |   | 221,530   |   |   |   | 238,427 |   |
|                                                                               |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Commercial      business loans                                                     |   |   | 202,947   |   |   |   | 237,148   |   |   |   | 53,861    |   |   |   | 44,588    |   |   |   | 31,926 |   |
|                                                                               |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Consumer:                                                                          |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
|    Home      equity loans and lines of credit                       |   |   | 83,465    |   |   |   | 88,809    |   |   |   | 71,783    |   |   |   | 87,377    |   |   |   | 153,824 |   |
|    Automobile      loans                                            |   |   | 71,090    |   |   |   | 53,722    |   |   |   | 52,329    |   |   |   | 92,926    |   |   |   | 148,738 |   |
|    Other      consumer loans                                        |   |   | 31,634    |   |   |   | 99,274    |   |   |   | 34,094    |   |   |   | 64,469    |   |   |   | 102,041 |   |
|          Total      consumer loans    |   |   | 186,189   |   |   |   | 241,805   |   |   |   | 158,206   |   |   |   | 244,772   |   |   |   | 404,603 |   |
|          Total      loans originated  |   |   | 764,975   |   |   |   | 846,256   |   |   |   | 521,561   |   |   |   | 510,890   |   |   |   | 674,956 |   |
|                                                                               |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Loans      acquired from FMS Financial                                             |   |   | -         |   |   |   | -         |   |   |   | 443,016   |   |   |   | –   |   |   |   | – |   |
|                                                                               |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Purchases                                                                          |   |   | 201,681   |   |   |   | 38,356    |   |   |   | 91        |   |   |   | 5,064     |   |   |   | 38,283 |   |
|                                                                               |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Less:                                                                              |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
|                                                                               |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
|    Principal      payments and repayments                           |   |   | 560,617   |   |   |   | 580,166   |   |   |   | 529,335   |   |   |   | 551,351   |   |   |   | 545,565 |   |
|    Loan      sales                                                  |   |   | 37,272    |   |   |   | -         |   |   |   | 2,941     |   |   |   | 8,592     |   |   |   | 9,371 |   |
|    Transfers      to foreclosed real estate                         |   |   | 3,230     |   |   |   | 786       |   |   |   | 295       |   |   |   | 339       |   |   |   | 450 |   |
| Total      loans at end of period                                                  |   | $      | 2,790,119 |   |   | $      | 2,424,582 |   |   | $      | 2,120,922 |   |   | $      | 1,688,825 |   |   | $ | 1,733,153 |   |

----

|                                       |   | 2009          |      |   | 2008      |   |      | 2007          |   |
|--------------------------------------------|--------|---------------|-----------|--------|-----------|--------|-----------|---------------|--------|
| December31,(Dollars      in thousands)     |   | AmortizedCost |      |   | FairValue |   |      | AmortizedCost |   |   | FairValue |   |   | AmortizedCost |   |   | FairValue |   |
|                                       |   |          |      |   |      |   |      |          |   |   |   |   |   |   |   |   |   |   |
| Securities      available-for-sale:        |   |          |      |   |      |   |      |          |   |   |   |   |   |   |   |   |   |   |
| GSE      and agency notes                  |   | $             | 209,135   |   |      | $      | 208,334   |          |   | $ | 8,687 |   |   | $ | 8,699 |   |   | $ | 184,756 |   |   | $ | 187,063 |   |
|                                       |   |          |      |   |      |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed      securities:           |   |          |      |   |      |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GNMA      guaranteed mortgage certificates |   |          | 10,214    |   |      |   | 10,394    |          |   |   | 12,796 |   |   |   | 12,505 |   |   |   | 17,299 |   |   |   | 17,388 |   |
| Other      mortgage-backed securities      |   |          | 680,018   |   |      |   | 706,245   |          |   |   | 767,978 |   |   |   | 793,281 |   |   |   | 431,500 |   |   |   | 440,184 |   |
| Collateralized      mortgage obligations   |   |          | 138,857   |   |      |   | 140,308   |          |   |   | 177,300 |   |   |   | 176,373 |   |   |   | 206,842 |   |   |   | 206,007 |   |
| Total      mortgage-backed securities      |   |          | 829,089   |   |      |   | 856,947   |          |   |   | 958,074 |   |   |   | 982,159 |   |   |   | 655,641 |   |   |   | 663,579 |   |
|                                       |   |          |      |   |      |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Municipal      and other bonds             |   |          |      |   |      |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Municipal      bonds                       |   |          | 188,980   |   |      |   | 189,957   |          |   |   | 79,542 |   |   |   | 79,976 |   |   |   | 45,317 |   |   |   | 45,591 |   |
| Pooled      trust preferred securities     |   |          | 21,379    |   |      |   | 18,797    |          |   |   | 25,113 |   |   |   | 19,328 |   |   |   | 28,288 |   |   |   | 27,913 |   |
| Corporate      bonds                       |   |          | -         |   |      |   | -         |          |   |   | 125 |   |   |   | 125 |   |   |   | 225 |   |   |   | 222 |   |
| Foreign      bonds                         |   |          | -         |   |      |   | -         |          |   |   | 500 |   |   |   | 501 |   |   |   | 500 |   |   |   | 500 |   |
| Total      municipal and other bonds       |   |          | 210,359   |   |      |   | 208,754   |          |   |   | 105,280 |   |   |   | 99,930 |   |   |   | 74,330 |   |   |   | 74,226 |   |
|                                       |   |          |      |   |      |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      securities                     |   |          | 5,427     |   |      |   | 6,062     |          |   |   | 7,638 |   |   |   | 7,746 |   |   |   | 9,391 |   |   |   | 9,802 |   |
| Money      market fund                     |   |          | 6,660     |   |      |   | 7,009     |          |   |   | 15,553 |   |   |   | 15,553 |   |   |   | 14,717 |   |   |   | 15,125 |   |
| Total      available–for-sale        |   |          | 1,260,670 |   |      |   | 1,287,106 |          |   |   | 1,095,232 |   |   |   | 1,114,087 |   |   |   | 938,835 |   |   |   | 949,795 |   |
|                                       |   |          |      |   |      |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities      held-to-maturity:          |   |          |      |   |      |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE      and agency notes                  |   |          | -         |   |      |   | -         |          |   |   | 7,500 |   |   |   | 7,547 |   |   |   | 27,498 |   |   |   | 27,487 |   |
|                                       |   |          |      |   |      |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed      securities:           |   |          |      |   |      |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GNMA      guaranteed mortgage certificates |   |          | 685       |   |      |   | 655       |          |   |   | 728 |   |   |   | 699 |   |   |   | 771 |   |   |   | 745 |   |
| Other      mortgage-backed securities      |   |          | 45,359    |   |      |   | 47,284    |          |   |   | 67,786 |   |   |   | 69,123 |   |   |   | 83,717 |   |   |   | 82,895 |   |
| Total      mortgage-backed securities      |   |          | 46,044    |   |      |   | 47,939    |          |   |   | 68,514 |   |   |   | 69,822 |   |   |   | 84,488 |   |   |   | 83,640 |   |
|                                       |   |          |      |   |      |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Municipal      bonds                       |   |          | 1,465     |   |      |   | 1,413     |          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Foreign      bonds                         |   |          | 500       |   |      |   | 501       |          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      municipal and other bonds       |   |          | 1,965     |   |      |   | 1,914     |          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      held–to-maturity          |   |          | 48,009    |   |      |   | 49,853    |          |   |   | 76,014 |   |   |   | 77,369 |   |   |   | 111,986 |   |   |   | 111,127 |   |
|                                       |   |          |      |   |      |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                      |   | $             | 1,308,679 |   |      | $      | 1,336,959 |          |   | $ | 1,171,246 |   |   | $ | 1,191,456 |   |   | $ | 1,050,821 |   |   | $ | 1,060,922 |   |

----

| (Dollars      in thousands)                                        |   | At      December 31, 2009 |    |
|--------------------------------------------------------------------|--------|---------------------------|---------|
|                                                               |   | Less than 12 months       |    |   | 12 months or longer |   |   | Total |   |
|                                                               |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                      |    |   | Unrealized |   |   |   |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
|                                                               |   | Fair      Value           |    |   | Losses |   |   | Fair      Value |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |
| GSE      and Agency Notes                                          |   | $                         | 154,110 |   |   | $ | 932 |   |   | $ | - |   |   | $ | - |   |   | $ | 154,110 |   |   | $ | 932 |   |
| Mortgage-backed      securities                                    |   |                      | 82,220  |   |   |   | 630 |   |   |   | 655 |   |   |   | 30 |   |   |   | 82,875 |   |   |   | 660 |   |
| Municipal      and other bonds                                     |   |                      | 72,166  |   |   |   | 356 |   |   |   | 494 |   |   |   | 6 |   |   |   | 72,660 |   |   |   | 362 |   |
| Pooled      trust preferred securities                             |   |                      | -       |   |   |   | - |   |   |   | 18,797 |   |   |   | 2,582 |   |   |   | 18,797 |   |   |   | 2,582 |   |
| Collateralized      mortgage obligations                           |   |                      | 40,977  |   |   |   | 232 |   |   |   | 8,824 |   |   |   | 53 |   |   |   | 49,801 |   |   |   | 285 |   |
|       Subtotal,      debt securities |   |                      | 349,473 |   |   |   | 2,150 |   |   |   | 28,770 |   |   |   | 2,671 |   |   |   | 378,243 |   |   |   | 4,821 |   |
| Equity      securities                                             |   |                      | 2,264   |   |   |   | 236 |   |   |   | - |   |   |   | - |   |   |   | 2,264 |   |   |   | 236 |   |
| Mutual      Funds                                                  |   |                      | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      temporarily impaired securities                         |   | $                         | 351,737 |   |   | $ | 2,386 |   |   | $ | 28,770 |   |   | $ | 2,671 |   |   | $ | 380,507 |   |   | $ | 5,057 |   |

| (Dollars      in thousands)                                        |   | At      December 31, 2008 |    |
|--------------------------------------------------------------------|--------|---------------------------|---------|
|                                                               |   | Less than 12 months       |    |   | 12 months or longer |   |   | Total |   |
|                                                               |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                      |    |   | Unrealized |   |   |   |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
|                                                               |   | Fair      Value           |    |   | Losses |   |   | Fair      Value |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |
| GSE      and Agency Notes                                          |   | $                         | 522     |   |   | $ | 5 |   |   | $ | - |   |   | $ | - |   |   | $ | 522 |   |   | $ | 5 |   |
| Mortgage-backed      securities                                    |   |                      | 33,551  |   |   |   | 375 |   |   |   | 699 |   |   |   | 29 |   |   |   | 34,250 |   |   |   | 404 |   |
| Municipal      bonds                                               |   |                      | 7,524   |   |   |   | 362 |   |   |   | 330 |   |   |   | 2 |   |   |   | 7,854 |   |   |   | 364 |   |
| Pooled      trust preferred securities                             |   |                      | 15,816  |   |   |   | 5,533 |   |   |   | 3,513 |   |   |   | 251 |   |   |   | 19,329 |   |   |   | 5,784 |   |
| Corporate      bonds                                               |   |                      | 125     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 125 |   |   |   | - |   |
| Collateralized      mortgage obligations                           |   |                      | 78,951  |   |   |   | 1,367 |   |   |   | 55,768 |   |   |   | 782 |   |   |   | 134,719 |   |   |   | 2,149 |   |
|       Subtotal,      debt securities |   |                      | 136,489 |   |   |   | 7,642 |   |   |   | 60,310 |   |   |   | 1,064 |   |   |   | 196,799 |   |   |   | 8,706 |   |
| Total      temporarily impaired securities                         |   | $                         | 136,489 |   |   | $ | 7,642 |   |   | $ | 60,310 |   |   | $ | 1,064 |   |   | $ | 196,799 |   |   | $ | 8,706 |   |

----

----

|                                                              |   | One      Year or Less |   |   | More      than One Yearto      Five Years |   |   | More      than Five Yearsto      Ten Years |   |   | More      than Ten Years |   |   | Total         |   |
|-------------------------------------------------------------------|--------|-----------------------|--------|--------|-------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------------|--------|--------|---------------|--------|
| December      31, 2009(Dollars      in thousands)                 |   | CarryingValue         |   |   | WeightedAverageYield                      |   |   | CarryingValue                              |   |   | WeightedAverageYield     |   |   | CarryingValue |   |   | WeightedAverageYield |   |   | CarryingValue |   |   | WeightedAverageYield |   |   | CarryingValue |   |   | WeightedAverageYield |   |
| Securities      available-for-sale:                               |   |                  |   |   |                                      |   |   |                                       |   |   |                     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    GSE      and agency notes                       |   | $                     | 3,878  |   |                                      |   | 4.03   | %                                          |   | $      | 625                      |   |   |          | 7.31   | % |   | $ | 203,831 |   |   |   | 3.42 | % |   | $ | - |   |   |   | 0.00 | % |   | $ | 208,334 |   |   |   | 3.44 | % |
|                                                              |   |                  |   |   |                                      |   |   |                                       |   |   |                     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Mortgage-backed      securities                 |   |                  | 8,468  |   |                                      |   | 5.02   |                                       |   |   | 13,015                   |   |   |          | 4.24   |   |   |   | 93,614 |   |   |   | 4.98 |   |   |   | 741,850 |   |   |   | 4.78 |   |   |   | 856,947 |   |   |   | 4.80 |   |
|    Municipal      and other bonds                  |   |                  | 76,808 |   |                                      |   | 1.76   |                                       |   |   | 28,043                   |   |   |          | 4.08   |   |   |   | 28,059 |   |   |   | 4.04 |   |   |   | 57,047 |   |   |   | 4.20 |   |   |   | 189,957 |   |   |   | 3.17 |   |
|    Pooled      trust preferred                     |   |                  | -      |   |                                      |   | 0.00   |                                       |   |   | -                        |   |   |          | 0.00   |   |   |   | - |   |   |   | 0.00 |   |   |   | 18,797 |   |   |   | 1.16 |   |   |   | 18,797 |   |   |   | 1.16 |   |
|    Certificates      of Deposit                    |   |                  | 297    |   |                                      |   | 2.51   |                                       |   |   | -                        |   |   |          | 0.00   |   |   |   | - |   |   |   | 0.00 |   |   |   | - |   |   |   | 0.00 |   |   |   | 297 |   |   |   | 2.51 |   |
|       Total      available-for-sale |   |                  | 89,451 |   |                                      |   | 2.17   |                                       |   |   | 41,683                   |   |   |          | 4.18   |   |   |   | 325,504 |   |   |   | 3.92 |   |   |   | 817,694 |   |   |   | 4.66 |   |   |   | 1,274,332 |   |   |   | 4.28 | % |
|                                                              |   |                  |   |   |                                      |   |   |                                       |   |   |                     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities      held to maturity:                                 |   |                  |   |   |                                      |   |   |                                       |   |   |                     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   |                  |   |   |                                      |   |   |                                       |   |   |                     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    GSE      and agency notes                       |   |                  | -      |   |                                      |   | 0.00   |                                       |   |   | -                        |   |   |          | 0.00   |   |   |   | - |   |   |   | 0.00 |   |   |   | - |   |   |   | 0.00 |   |   |   | - |   |   |   | 0.00 |   |
|                                                              |   |                  |   |   |                                      |   |   |                                       |   |   |                     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Mortgage-backed      securities                 |   |                  | 2,964  |   |                                      |   | 3.66   |                                       |   |   | 3,611                    |   |   |          | 4.31   |   |   |   | 18,476 |   |   |   | 4.21 |   |   |   | 20,993 |   |   |   | 5.76 |   |   |   | 46,044 |   |   |   | 4.89 |   |
|    Foreign      bonds                              |   |                  | -      |   |                                      |   | 0.00   |                                       |   |   | 500                      |   |   |          | 1.45   |   |   |   | - |   |   |   | 0.00 |   |   |   | - |   |   |   | 0.00 |   |   |   | 500 |   |   |   | 1.45 |   |
|    Municipal      bonds                            |   |                  | 135    |   |                                      |   | 1.50   |                                       |   |   | 460                      |   |   |          | 2.90   |   |   |   | 615 |   |   |   | 4.93 |   |   |   | 255 |   |   |   | 5.85 |   |   |   | 1,465 |   |   |   | 4.13 |   |
|       Total      held to maturity   |   |                  | 3,099  |   |                                      |   | 3.57   |                                       |   |   | 4,571                    |   |   |          | 3.86   |   |   |   | 19,091 |   |   |   | 4.23 |   |   |   | 21,248 |   |   |   | 5.76 |   |   |   | 48,009 |   |   |   | 4.83 |   |
|           Total |   | $                     | 92,550 |   |                                      |   | 2.22   | %                                          |   | $      | 46,254                   |   |   |          | 4.15   | % |   | $ | 344,595 |   |   |   | 3.94 | % |   | $ | 838,942 |   |   |   | 4.68 | % |   | $ | 1,322,341 |   |   |   | 4.30 | % |

----

|                                            |   | 2009   |      |   | 2008                         |   |   | 2007   |   |
|-------------------------------------------------|--------|--------|-----------|--------|------------------------------|--------|--------|--------|--------|
| At December      31,(Dollars      in thousands) |   | Amount |      |   | Percent      ofTotalDeposits |   |   | Amount |   |   | Percent      ofTotal Deposits |   |   | Amount |   |   | Percent      ofTotalDeposits |   |
|                                            |   |   |      |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      bearing deposits              |   | $      | 242,412   |   |                         |   | 7      | %      |   | $ | 226,382 |   |   |   | 8 | % |   | $ | 242,351 |   |   |   | 10 | % |
| Interest-earning      checking accounts         |   |   | 1,122,515 |   |                         |   | 32     |   |   |   | 546,133 |   |   |   | 20 |   |   |   | 389,812 |   |   |   | 16 |   |
| Money      market accounts                      |   |   | 665,757   |   |                         |   | 19     |   |   |   | 534,012 |   |   |   | 20 |   |   |   | 376,300 |   |   |   | 15 |   |
| Savings      accounts                           |   |   | 532,511   |   |                         |   | 15     |   |   |   | 394,308 |   |   |   | 14 |   |   |   | 414,398 |   |   |   | 17 |   |
| Time      deposits                              |   |   | 946,052   |   |                         |   | 27     |   |   |   | 1,040,844 |   |   |   | 38 |   |   |   | 1,042,302 |   |   |   | 42 |   |
|       Total       |   | $      | 3,509,247 |   |                         |   | 100    | %      |   | $ | 2,741,679 |   |   |   | 100 | % |   | $ | 2,465,163 |   |   |   | 100 | % |

| December 31,      2009(Dollars      in thousands) |   | Certificatesof      Deposit |    |
|---------------------------------------------------|--------|-----------------------------|---------|
|                                              |   |                        |    |
| Maturity      Period:                             |   |                        |    |
| Three      months or less                         |   | $                           | 111,458 |   |
| Over      three through six months                |   |                        | 54,348  |   |
| Over      six through twelve months               |   |                        | 60,396  |   |
| Over      twelve months                           |   |                        | 29,088  |   |
|      Total               |   | $                           | 255,290 |   |

| At December      31,(Dollars      in thousands) |   | 2009   |    |   | 2008   |   |      | 2007   |   |
|-------------------------------------------------|--------|--------|---------|--------|--------|--------|-----------|--------|--------|
|                                            |   |   |    |   |   |   |      |   |   |
| 0.00      - 1.00%                               |   | $      | 126,615 |   |   | $      | 7,395     |   |   | $ | 37 |   |
| 1.01      - 2.00%                               |   |   | 412,660 |   |   |   | 115,616   |   |   |   | 2,376 |   |
| 2.01      - 3.00%                               |   |   | 123,863 |   |   |   | 326,853   |   |   |   | 80,943 |   |
| 3.01      - 4.00%                               |   |   | 243,859 |   |   |   | 490,091   |   |   |   | 363,417 |   |
| 4.01      - 5.00%                               |   |   | 37,479  |   |   |   | 96,494    |   |   |   | 496,178 |   |
| 5.01      - 6.00%                               |   |   | 1,514   |   |   |   | 4,373     |   |   |   | 99,329 |   |
| 6.01      - 7.00%                               |   |   | 62      |   |   |   | 22        |   |   |   | 22 |   |
|      Total             |   | $      | 946,052 |   |   | $      | 1,040,844 |   |   | $ | 1,042,302 |   |

|                                |   | Amount      Due             |    |   |                                        |   |
|-------------------------------------|--------|-----------------------------|---------|--------|---------------------------------------------|--------|
| (Dollars      in thousands)         |   | Less      ThanOne      Year |    |   | More      ThanOne      YeartoTwo      Years |   |   | More      ThanTwo      YearstoThree      Years |   |   | More      ThanThree      Years |   |   | Total |   |
|                                |   |                        |    |   |                                        |   |   |   |   |   |   |   |   |   |   |
| 0.00      - 1.00%                   |   | $                           | 125,787 |   |                                        | $      | 730 |   |   | $ | 7 |   |   | $ | 91 |   |   | $ | 126,615 |   |
| 1.01      - 2.00%                   |   |                        | 338,265 |   |                                        |   | 51,151 |   |   |   | 16,205 |   |   |   | 7,039 |   |   |   | 412,660 |   |
| 2.01      - 3.00%                   |   |                        | 100,013 |   |                                        |   | 13,432 |   |   |   | 9,450 |   |   |   | 968 |   |   |   | 123,863 |   |
| 3.01      - 4.00%                   |   |                        | 192,117 |   |                                        |   | 28,165 |   |   |   | 16,403 |   |   |   | 7,174 |   |   |   | 243,859 |   |
| 4.01      - 5.00%                   |   |                        | 32,177  |   |                                        |   | 4,102 |   |   |   | 1,185 |   |   |   | 15 |   |   |   | 37,479 |   |
| 5.01      - 6.00%                   |   |                        | 1,207   |   |                                        |   | 5 |   |   |   | 301 |   |   |   | 1 |   |   |   | 1,514 |   |
| 6.01      - 7.00%                   |   |                        | 62      |   |                                        |   | - |   |   |   | - |   |   |   | - |   |   |   | 62 |   |
|      Total |   | $                           | 789,628 |   |                                        | $      | 97,585 |   |   | $ | 43,551 |   |   | $ | 15,288 |   |   | $ | 946,052 |   |

----

| Year Ended December      31,(Dollars      in thousands) |   | 2009   |      |   | 2008   |   |      | 2007   |   |
|---------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Beginning      balance                                  |   | $      | 2,741,679 |   |   | $      | 2,465,163 |   |   | $ | 1,678,054 |   |
| Increase      (decrease) before interest credited       |   |   | 719,416   |   |   |   | 216,969   |   |   |   | 730,866 |   |
| Interest      credited                                  |   |   | 48,152    |   |   |   | 59,547    |   |   |   | 56,243 |   |
| Net      increase in deposits                           |   |   | 767,568   |   |   |   | 276,516   |   |   |   | 787,109 |   |
| Ending      balance                                     |   | $      | 3,509,247 |   |   | $      | 2,741,679 |   |   | $ | 2,465,163 |   |

| Year Ended December      31,(Dollars      in thousands)                                |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|----------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Maximum      amount outstanding at any month-end during period:                        |   |   |    |   |   |   |    |   |   |
|     Federal      Home Loan Bank advances                           |   | $      | 174,750 |   |   | $      | 225,750 |   |   | $ | 196,550 |   |
|     Repurchase      agreements                                     |   |   | 240,145 |   |   |   | 240,273 |   |   |   | 205,594 |   |
|     Federal      Home Loan Bank overnight borrowings               |   |   | -       |   |   |   | 151,255 |   |   |   | - |   |
|     Federal      Reserve Bank of Philadelphia overnight borrowings |   |   | 94,650  |   |   |   | 96,250  |   |   |   | - |   |
|     Statutory      Trust Debenture                                 |   |   | 25,299  |   |   |   | 25,282  |   |   |   | 25,264 |   |
|     Other                                                          |   |   | 35,896  |   |   |   | 72,446  |   |   |   | 30,796 |   |
| Average      outstanding balance during period:                                        |   |   |    |   |   |   |    |   |   |   |   |   |
|     Federal      Home Loan Bank advances                           |   | $      | 174,599 |   |   | $      | 190,684 |   |   | $ | 180,557 |   |
|     Repurchase      agreements                                     |   |   | 239,511 |   |   |   | 215,992 |   |   |   | 129,741 |   |
|     Federal      Home Loan Bank overnight borrowings               |   |   | -       |   |   |   | 30,746  |   |   |   | - |   |
|     Federal      Reserve Bank of Philadelphia overnight borrowings |   |   | 9,348   |   |   |   | 4,417   |   |   |   | - |   |
|     Statutory      Trust Debenture                                 |   |   | 25,290  |   |   |   | 25,273  |   |   |   | 12,018 |   |
|     Other                                                          |   |   | 6,249   |   |   |   | 17,987  |   |   |   | 8,702 |   |
| Weighted      average interest rate during period:                                     |   |   |    |   |   |   |    |   |   |   |   |   |
|     Federal      Home Loan Bank advances                           |   |   | 4.22    | %      |   |   | 4.34    | %      |   |   | 4.94 | % |
|     Repurchase      agreements                                     |   |   | 4.38    |   |   |   | 4.38    |   |   |   | 4.87 |   |
|     Federal      Home Loan Bank overnight borrowings               |   |   | -       |   |   |   | 1.04    |   |   |   | - |   |
|     Federal      Reserve Bank of Philadelphia overnight borrowings |   |   | 0.5     |   |   |   | 0.50    |   |   |   | - |   |
|     Statutory      Trust Debenture                                 |   |   | 2.71    |   |   |   | 5.04    |   |   |   | 7.29 |   |
|     Other                                                          |   |   | 3.13    |   |   |   | 2.36    |   |   |   | 4.64 |   |
| Balance      outstanding at end of period:                                             |   |   |    |   |   |   |    |   |   |   |   |   |
|     Federal      Home Loan Bank advances                           |   | $      | 169,750 |   |   | $      | 174,750 |   |   | $ | 185,750 |   |
|     Repurchase      agreements                                     |   |   | 235,000 |   |   |   | 240,177 |   |   |   | 185,562 |   |
|     Federal      Home Loan Bank overnight borrowings               |   |   | -       |   |   |   | -       |   |   |   | - |   |
|     Federal      Reserve Bank of Philadelphia overnight borrowings |   |   | -       |   |   |   | 96,250  |   |   |   | - |   |
|     Statutory      Trust Debenture                                 |   |   | 25,299  |   |   |   | 25,282  |   |   |   | 25,264 |   |
|     Other                                                          |   |   | 3,571   |   |   |   | 43,595  |   |   |   | 10,546 |   |
| Weighted      average interest rate at end of period:                                  |   |   |    |   |   |   |    |   |   |   |   |   |
|     Federal      Home Loan Bank advances                           |   |   | 4.13    | %      |   |   | 4.18    | %      |   |   | 4.81 | % |
|     Repurchase      agreements                                     |   |   | 4.38    |   |   |   | 4.39    |   |   |   | 4.78 |   |
|     Federal      Home Loan Bank overnight borrowings               |   |   | -       |   |   |   | -       |   |   |   | - |   |
|     Federal      Reserve Bank of Philadelphia overnight borrowings |   |   | -       |   |   |   | 0.50    |   |   |   | - |   |
|     Statutory      Trust Debenture                                 |   |   | 1.83    |   |   |   | 3.58    |   |   |   | 6.57 |   |
|     Other                                                          |   |   | 3.97    |   |   |   | 3.57    |   |   |   | 3.57 |   |

----

|                                                    |   |   |    |   | Change      2009/2008 |   |    | Change      2008/2007 |   |
|---------------------------------------------------------|--------|--------|---------|--------|-----------------------|--------|---------|-----------------------|--------|
| Year Ended December      31,(Dollars      in thousands) |   | 2009   |    |   | 2008                  |   |    | 2007                  |   |   |  $ |   |   | % |   |   |  $ |   |   | % |   |
|                                                    |   |   |    |   |                  |   |    |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income                                |   | $      | 127,342 |   |                  | $      | 114,011 |                  |   | $ | 84,120 |   |   | $ | 13,331 |   |   |   | 11.69 | % |   | $ | 29,891 |   |   |   | 35.53 | % |
|                                                    |   |   |    |   |                  |   |    |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for loan losses                          |   |   | 15,697  |   |                  |   | 18,901  |                  |   |   | 2,470 |   |   |   | (3,204 | ) |   |   | -16.95 | % |   |   | 16,431 |   |   |   | 665.22 |   |
|                                                    |   |   |    |   |                  |   |    |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      income                                |   |   | 26,847  |   |                  |   | 23,604  |                  |   |   | 13,372 |   |   |   | 3,243 |   |   |   | 13.74 | % |   |   | 10,232 |   |   |   | 76.52 |   |
|                                                    |   |   |    |   |                  |   |    |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      expenses                              |   |   | 119,866 |   |                  |   | 98,303  |                  |   |   | 101,032 |   |   |   | 21,563 |   |   |   | 21.94 | % |   |   | (2,729 | ) |   |   | (2.70 | ) |
|                                                    |   |   |    |   |                  |   |    |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss) income                                  |   |   | 17,089  |   |                  |   | 16,546  |                  |   |   | (1,545 | ) |   |   | 543 |   |   |   | 3.28 | % |   |   | 18,091 |   |   |   | (1,170.94 | ) |
|                                                    |   |   |    |   |                  |   |    |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on average equity                           |   |   | 2.74    | %      |                  |   | 2.70    | %                     |   |   | (0.35 | )% |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on average assets                           |   |   | 0.40    | %      |                  |   | 0.44    | %                     |   |   | (0.05 | )% |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                      |   |   |      |   | Change      2009/2008 |   |      | Change      2008/2007 |   |
|-----------------------------------------------------------|--------|--------|-----------|--------|-----------------------|--------|-----------|-----------------------|--------|
| December31,(Dollars      in thousands)                    |   | 2009   |      |   | 2008                  |   |      | 2007                  |   |   |  $ |   |   | % |   |   |  $ |   |   | % |   |
|                                                      |   |   |      |   |                  |   |      |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of net interest income                    |   |   |      |   |                  |   |      |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans                                   |   | $      | 140,183   |   |                  | $      | 132,645   |                  |   | $ | 117,334 |   |   | $ | 7,538 |   |   |   | 5.68 | % |   | $ | 15,311 |   |   |   | 13.05 | % |
|    Investment      securities              |   |   | 52,791    |   |                  |   | 59,758    |                  |   |   | 38,933 |   |   |   | (6,967 | ) |   |   | (11.66 | ) |   |   | 20,825 |   |   |   | 53.49 |   |
|    Other      interest-earning asset       |   |   | -         |   |                  |   | 523       |                  |   |   | 1,627 |   |   |   | (523 | ) |   |   | (100.00 | ) |   |   | (1,104 | ) |   |   | (67.85 | ) |
|      Total      interest income  |   |   | 192,974   |   |                  |   | 192,926   |                  |   |   | 157,894 |   |   |   | 48 |   |   |   | 0.02 |   |   |   | 35,032 |   |   |   | 22.19 |   |
|    Deposits                                |   |   | 46,849    |   |                  |   | 59,142    |                  |   |   | 57,254 |   |   |   | (12,293 | ) |   |   | (20.79 | ) |   |   | 1,888 |   |   |   | 3.30 |   |
|    Borrowings                              |   |   | 18,783    |   |                  |   | 19,773    |                  |   |   | 16,520 |   |   |   | (990 | ) |   |   | (5.01 | ) |   |   | 3,253 |   |   |   | 19.69 |   |
|      Total      interest expense |   |   | 65,632    |   |                  |   | 78,915    |                  |   |   | 73,774 |   |   |   | (13,283 | ) |   |   | (16.83 | ) |   |   | 5,141 |   |   |   | 6.97 |   |
|    Net      interest income                |   |   | 127,342   |   |                  |   | 114,011   |                  |   |   | 84,120 |   |   |   | 13,331 |   |   |   | 11.69 |   |   |   | 29,891 |   |   |   | 35.53 |   |
|                                                      |   |   |      |   |                  |   |      |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      yield and rates paid                         |   |   |      |   |                  |   |      |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest-earning      assets            |   |   | 4.97      | %      |                  |   | 5.63      | %                     |   |   | 5.96 | % |   |   | (0.66 | )% |   |   | (11.72 | )% |   |   | (0.33 | )% |   |   | (5.54 | )% |
|    Interest-bearing      liabilities       |   |   | 1.98      |   |                  |   | 2.77      |                  |   |   | 3.36 |   |   |   | (0.79 | ) |   |   | (28.52 | ) |   |   | (0.59 | ) |   |   | (17.56 | ) |
|    Interest      rate spread               |   |   | 2.99      |   |                  |   | 2.86      |                  |   |   | 2.59 |   |   |   | 0.13 |   |   |   | 4.55 |   |   |   | 0.27 |   |   |   | 10.42 |   |
|    Net      interest margin                |   |   | 3.28      |   |                  |   | 3.33      |                  |   |   | 3.17 |   |   |   | (0.05 | ) |   |   | (1.50 | ) |   |   | 0.16 |   |   |   | 5.05 |   |
|                                                      |   |   |      |   |                  |   |      |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      balances                                     |   |   |      |   |                  |   |      |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans                                   |   |   | 2,650,116 |   |                  |   | 2,239,274 |                  |   |   | 1,864,939 |   |   |   | 410,842 |   |   |   | 18.35 | % |   |   | 374,335 |   |   |   | 20.07 | % |
|  Investment      securities                          |   |   | 1,229,149 |   |                  |   | 1,162,256 |                  |   |   | 751,674 |   |   |   | 66,893 |   |   |   | 5.76 |   |   |   | 410,582 |   |   |   | 54.62 |   |
|  Other      interest-earning assets                  |   |   | -         |   |                  |   | 22,766    |                  |   |   | 33,870 |   |   |   | (22,766 | ) |   |   | (100.00 | ) |   |   | (11,104 | ) |   |   | (32.78 | ) |
|  Deposits                                            |   |   | 2,860,627 |   |                  |   | 2,368,911 |                  |   |   | 1,862,617 |   |   |   | 491,716 |   |   |   | 20.76 |   |   |   | 506,294 |   |   |   | 27.18 |   |
|  Borrowings                                          |   |   | 454,997   |   |                  |   | 485,099   |                  |   |   | 331,019 |   |   |   | (30,102 | ) |   |   | (6.21 | ) |   |   | 154,080 |   |   |   | 46.55 |   |

----

|                                                    |   |   |   |   | Change      2009/2008 |   |   | Change      2008/2007 |   |
|---------------------------------------------------------|--------|--------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
| Year      Ended December 31,(Dollars      in thousands) |   | 2009   |   |   | 2008                  |   |   | 2007                  |   |   |  $ |   |   | % |   |   |  $ |   |   | % |   |
|                                                    |   |   |   |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Insurance      commission income                        |   | $      | 8,133  |   |                  | $      | 10,090 |                  |   | $ | 5,223 |   |   | $ | (1,957 | ) |   |   | (19.4 | %) |   | $ | 4,867 |   |   |   | 93.18 | % |
| Services      charges and other income                  |   |   | 13,743 |   |                  |   | 15,973 |                  |   |   | 9,053 |   |   |   | (2,230 | ) |   |   | (14.0 | ) |   |   | 6,920 |   |   |   | 76.44 |   |
| Impairment      charge on securities available-for-sale |   |   | (1,587 | )      |                  |   | (3,216 | )                     |   |   | (1,192 | ) |   |   | 1,629 |   |   |   | (50.7 | ) |   |   | (2,024 | ) |   |   | 169.80 |   |
| Gains      on sale of investment securities AFS         |   |   | 6,530  |   |                  |   | 757    |                  |   |   | 288 |   |   |   | 5,773 |   |   |   | 762.6 |   |   |   | 469 |   |   |   | 162.85 |   |
| Trading      securities profits                         |   |   | 28     |   |                  |   | -      |                  |   |   | - |   |   |   | 28 |   |   |   | 100.0 |   |   |   |   |   |   |   |   |   |
|     Total                           |   | $      | 26,847 |   |                  | $      | 23,604 |                  |   | $ | 13,372 |   |   | $ | 3,243 |   |   |   | 13.7 | % |   | $ | 10,232 |   |   |   | 76.52 | % |

| Year Ended December      31,                    |   |   |    |   | Change      2009/2008 |   |   | Change      2008/2007 |   |
|-------------------------------------------------|--------|--------|---------|--------|-----------------------|--------|--------|-----------------------|--------|
| (Dollars      in thousands)                     |   | 2009   |    |   | 2008                  |   |   | 2007                  |   |   |  $ |   |   | % |   |   |  $ |   |   | % |   |
| Salaries      and employee benefits             |   | $      | 58,251  |   |                  | $      | 45,395 |                  |   | $ | 51,118 |   |   | $ | 12,856 |   |   |   | 28.32 | % |   | $ | (5,723 | ) |   |   | (11.20 | %) |
| Contribution      to the Beneficial Foundation  |   |   | -       |   |                  |   | -      |                  |   |   | 9,995 |   |   |   | - |   |   |   | 0.00 | % |   |   | (9,995 | ) |   |   | (100.00 | %) |
| Occupancy      expense                          |   |   | 11,992  |   |                  |   | 11,693 |                  |   |   | 9,367 |   |   |   | 299 |   |   |   | 2.56 | % |   |   | 2,326 |   |   |   | 24.83 | % |
| Depreciation,      amortization and maintenance |   |   | 8,822   |   |                  |   | 8,225  |                  |   |   | 6,970 |   |   |   | 597 |   |   |   | 7.26 | % |   |   | 1,255 |   |   |   | 18.01 | % |
| Amortization      of intangibles                |   |   | 3,555   |   |                  |   | 5,213  |                  |   |   | 3,434 |   |   |   | (1,658 | ) |   |   | (31.81 | %) |   |   | 1,779 |   |   |   | 51.81 | % |
| Advertising                                     |   |   | 5,889   |   |                  |   | 6,300  |                  |   |   | 4,507 |   |   |   | (411 | ) |   |   | (6.52 | %) |   |   | 1,793 |   |   |   | 39.78 | % |
| Insurance      and protection                   |   |   | 1,943   |   |                  |   | 2,235  |                  |   |   | 1,911 |   |   |   | (292 | ) |   |   | (13.06 | %) |   |   | 324 |   |   |   | 16.95 | % |
| Professional      fees                          |   |   | 4,046   |   |                  |   | 4,300  |                  |   |   | 2,674 |   |   |   | (254 | ) |   |   | (5.91 | %) |   |   | 1,626 |   |   |   | 60.81 | % |
| Printing      and supplies                      |   |   | 2,314   |   |                  |   | 2,361  |                  |   |   | 1,883 |   |   |   | (47 | ) |   |   | (1.99 | %) |   |   | 478 |   |   |   | 25.39 | % |
| Correspondent      Bank/ATM charges             |   |   | 2,952   |   |                  |   | 2,780  |                  |   |   | 1,952 |   |   |   | 172 |   |   |   | 6.19 | % |   |   | 828 |   |   |   | 42.42 | % |
| Postage                                         |   |   | 1,241   |   |                  |   | 1,142  |                  |   |   | 882 |   |   |   | 99 |   |   |   | 8.67 | % |   |   | 260 |   |   |   | 29.48 | % |
| Impairment      of goodwill                     |   |   | 976     |   |                  |   | -      |                  |   |   | - |   |   |   | 976 |   |   |   | 100.00 | % |   |   | - |   |   |   | 0.00 | % |
| FDIC      Assessment                            |   |   | 5,633   |   |                  |   | 341    |                  |   |   | 255 |   |   |   | 5,292 |   |   |   | 1,551.91 | % |   |   | 86 |   |   |   | 33.73 | % |
| Other                                           |   |   | 12,252  |   |                  |   | 8,318  |                  |   |   | 6,084 |   |   |   | 3,934 |   |   |   | 47.30 | % |   |   | 2,234 |   |   |   | 36.72 | % |
|    Total                         |   | $      | 119,866 |   |                  | $      | 98,303 |                  |   | $ | 101,032 |   |   | $ | 21,563 |   |   |   | 21.94 | % |   | $ | (2,729 | ) |   |   | -2.70 | % |

----

----

| Year      ended December 31,(Dollars      in thousands)                                                                           |   |         2009     |      |   |         2008  |   |    |         2007 |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|-----------|--------|-------------------------|--------|---------|------------------------|--------|
|                                                                                                                              |   |        AverageBalance |      |   |        InterestAnd |   |    |        Yield/Cost |   |   |        AverageBalance |   |   |        InterestAnd |   |   |        Yield/Cost |   |   |        AverageBalance |   |   |        InterestAnd |   |   |        Yield/Cost |   |
|                                                                                                                              |   |                       |      |   |        Dividends   |   |    |                   |   |   |   |   |   |        Dividends |   |   |   |   |   |   |   |   |        Dividends |   |   |   |   |
| Assets:                                                                                                                           |   |                       |      |   |                    |   |    |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      demand deposits                                                                                        |   | $                          | 0         |   |                    | $      | 0       |                   |   |   | 0.00 | % |   | $ | 2,765 |   |   | $ | 29 |   |   |   | 1.05 | % |   | $ | 2,895 |   |   | $ | 139 |   |   |   | 4.82 | % |
| Loans                                                                                                                             |   |                       | 2,650,116 |   |                    |   | 140,183 |                   |   |   | 5.29 |   |   |   | 2,239,274 |   |   |   | 132,645 |   |   |   | 5.92 |   |   |   | 1,864,939 |   |   |   | 117,334 |   |   |   | 6.29 |   |
| Trading      securities                                                                                                           |   |                       | 139       |   |                    |   | 1       |                   |   |   | 0.72 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Overnight      investments                                                                                                        |   |                       | 47,734    |   |                    |   | 113     |                   |   |   | 0.23 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      securities                                                                                                        |   |                       | 210,254   |   |                    |   | 6,292   |                   |   |   | 2.99 |   |   |   | 219,089 |   |   |   | 9,827 |   |   |   | 4.48 |   |   |   | 261,642 |   |   |   | 12,988 |   |   |   | 4.96 |   |
| Mortgage-backed      securities                                                                                                   |   |                       | 792,130   |   |                    |   | 39,644  |                   |   |   | 5.00 |   |   |   | 755,659 |   |   |   | 40,693 |   |   |   | 5.39 |   |   |   | 331,134 |   |   |   | 17,524 |   |   |   | 5.21 |   |
| CMOs                                                                                                                              |   |                       | 150,824   |   |                    |   | 6,521   |                   |   |   | 4.32 |   |   |   | 187,508 |   |   |   | 9,209 |   |   |   | 4.91 |   |   |   | 160,819 |   |   |   | 8,295 |   |   |   | 5.16 |   |
| Other      interest-earning assets                                                                                                |   |                       | 28,068    |   |                    |   | 220     |                   |   |   | 0.78 |   |   |   | 20,001 |   |   |   | 523 |   |   |   | 2.61 |   |   |   | 31,944 |   |   |   | 1,614 |   |   |   | 5.05 |   |
| Total      interest-earning assets                                                                                                |   |                       | 3,879,265 |   |                    |   | 192,974 |                   |   |   | 4.97 |   |   |   | 3,424,296 |   |   |   | 192,926 |   |   |   | 5.63 |   |   |   | 2,653,372 |   |   |   | 157,894 |   |   |   | 5.96 |   |
|    Non-interest-earning      assets                                                                                |   |                       | 401,583   |   |                    |   |    |                   |   |   |   |   |   |   | 349,990 |   |   |   |   |   |   |   |   |   |   |   | 250,516 |   |   |   |   |   |   |   |   |   |
|                                                                                                                              |   |                       |      |   |                    |   |    |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                Total      Assets                       |   |                       | 4,280,848 |   |                    |   |    |                   |   |   |   |   |   |   | 3,774,286 |   |   |   |   |   |   |   |   |   |   |   | 2,903,888 |   |   |   |   |   |   |   |   |   |
|                                                                                                                              |   |                       |      |   |                    |   |    |                   |   |   |   |   |
| Liabilities      and Stockholders’ Equity:                                                                                  |   |                       |      |   |                    |   |    |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning      checking                                                                                                    |   |                       | 840,578   |   |                    |   | 9,052   |                   |   |   | 1.08 |   |   |   | 441,591 |   |   |   | 5,490 |   |   |   | 1.24 |   |   |   | 265,951 |   |   |   | 4,250 |   |   |   | 1.60 |   |
| Money      market                                                                                                                 |   |                       | 611,930   |   |                    |   | 8,402   |                   |   |   | 1.37 |   |   |   | 491,449 |   |   |   | 12,307 |   |   |   | 2.50 |   |   |   | 332,523 |   |   |   | 10,291 |   |   |   | 3.09 |   |
| Savings                                                                                                                           |   |                       | 427,478   |   |                    |   | 2,671   |                   |   |   | 0.62 |   |   |   | 404,346 |   |   |   | 2,742 |   |   |   | 0.68 |   |   |   | 332,196 |   |   |   | 2,212 |   |   |   | 0.67 |   |
| Time      deposits                                                                                                                |   |                       | 980,641   |   |                    |   | 26,724  |                   |   |   | 2.73 |   |   |   | 1,031,525 |   |   |   | 38,603 |   |   |   | 3.74 |   |   |   | 931,970 |   |   |   | 40,501 |   |   |   | 4.35 |   |
| Total      interest-bearing deposits                                                                                              |   |                       | 2,860,627 |   |                    |   | 46,849  |                   |   |   | 1.64 |   |   |   | 2,368,911 |   |   |   | 59,142 |   |   |   | 2.50 |   |   |   | 1,862,640 |   |   |   | 57,254 |   |   |   | 3.07 |   |
| FHLB      advances                                                                                                                |   |                       | 174,599   |   |                    |   | 7,373   |                   |   |   | 4.22 |   |   |   | 190,684 |   |   |   | 8,276 |   |   |   | 4.34 |   |   |   | 180,557 |   |   |   | 8,925 |   |   |   | 4.94 |   |
| Repurchase      agreements                                                                                                        |   |                       | 239,511   |   |                    |   | 10,481  |                   |   |   | 4.38 |   |   |   | 215,992 |   |   |   | 9,459 |   |   |   | 4.38 |   |   |   | 129,741 |   |   |   | 6,315 |   |   |   | 4.87 |   |
| Federal      Reserve overnight      borrowings                                                      |   |                       | 9,348     |   |                    |   | 47      |                   |   |   | 0.50 |   |   |   | 4,417 |   |   |   | 22 |   |   |   | 0.50 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| FHLB      overnight borrowings                                                                                                    |   |                       | -         |   |                    |   | -       |                   |   |   | 0.00 |   |   |   | 30,746 |   |   |   | 319 |   |   |   | 1.04 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Statutory      Trust Debenture                                                                                                    |   |                       | 25,290    |   |                    |   | 686     |                   |   |   | 2.71 |   |   |   | 25,273 |   |   |   | 1,274 |   |   |   | 5.04 |   |   |   | 12,018 |   |   |   | 876 |   |   |   | 7.29 |   |
| Other      borrowings                                                                                                             |   |                       | 6,249     |   |                    |   | 196     |                   |   |   | 3.14 |   |   |   | 17,987 |   |   |   | 423 |   |   |   | 2.36 |   |   |   | 8,702 |   |   |   | 404 |   |   |   | 4.64 |   |
|                                                                                                                              |   |                       | 3,315,624 |   |                    |   | 65,632  |                   |   |   | 1.98 |   |   |   | 2,854,010 |   |   |   | 78,915 |   |   |   | 2.77 |   |   |   | 2,193,658 |   |   |   | 73,774 |   |   |   | 3.36 |   |
| Non-interest-bearing      deposits                                                                                                |   |                       | 239,871   |   |                    |   |    |                   |   |   |   |   |   |   | 301,052 |   |   |   |   |   |   |   |   |   |   |   | 173,855 |   |   |   |   |   |   |   |   |   |
| Other      non-interest-bearing    liabilities                                                                |   |                       | 101,461   |   |                    |   |    |                   |   |   |   |   |   |   | 5,588 |   |   |   |   |   |   |   |   |   |   |   | 98,974 |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                                                                                            |   |                       | 3,656,956 |   |                    |   | 65,632  |                   |   |   |   |   |   |   | 3,160,650 |   |   |   | 78,915 |   |   |   |   |   |   |   | 2,466,487 |   |   |   | 73,774 |   |   |   |   |   |
|                                                                                                                              |   |                       |      |   |                    |   |    |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Total      Stockholders’ Equity                                                                                       |   |                       | 623,892   |   |                    |   |    |                   |   |   |   |   |   |   | 613,636 |   |   |   |   |   |   |   |   |   |   |   | 437,401 |   |   |   |   |   |   |   |   |   |
|      Total      Liabilities and       Stockholders’      Equity |   | $                          | 4,280,848 |   |                    |   |    |                   |   |   |   |   |   | $ | 3,774,286 |   |   |   |   |   |   |   |   |   |   | $ | 2,903,888 |   |   |   |   |   |   |   |   |   |
| Net      Interest Income                                                                                                          |   |                       |      |   |                    | $      | 127,342 |                   |   |   |   |   |   |   |   |   |   | $ | 114,011 |   |   |   |   |   |   |   |   |   |   | $ | 84,120 |   |   |   |   |   |
| Interest      rate spread                                                                                                         |   |                       |      |   |                    |   |    |                   |   |   | 2.99 | % |   |   |   |   |   |   |   |   |   |   | 2.87 | % |   |   |   |   |   |   |   |   |   |   | 2.59 | % |
| Net      interest margin                                                                                                          |   |                       |      |   |                    |   |    |                   |   |   | 3.28 | % |   |   |   |   |   |   |   |   |   |   | 3.33 | % |   |   |   |   |   |   |   |   |   |   | 3.17 | % |
| Average      interest-earning assets to average interest-bearing liabilities                                            |   |                       |      |   |                    |   |    |                   |   |   | 117.00 | % |   |   |   |   |   |   |   |   |   |   | 119.98 | % |   |   |   |   |   |   |   |   |   |   | 120.96 | % |

----

|                                                                                          |   | Year      Ended December 31, 2009Compared      toYear      Ended December 31, 2008 |   |   | Year      Ended December 31, 2008Compared      toYear      Ended December 31, 2007 |   |
|-----------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------|--------|
| (Dollars      in thousands)                                                                   |   | Increase      (Decrease)Due      to                                                |   |   |                                                                               |   |   | Increase      (Decrease)Due      to |   |   |   |   |
|                                                                                          |   | Volume                                                                             |   |   | Rate                                                                               |   |   | Net |   |   | Volume |   |   | Rate |   |   | Net |   |
| Interest      income:                                                                         |   |                                                                               |   |   |                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest-bearing      deposits                                              |   | $                                                                                  | (29    | )      |                                                                               | $      | - |   |   | $ | (29 | ) |   | $ | (1 | ) |   | $ | (109 | ) |   | $ | (110 | ) |
|    Loans      receivable                                                       |   |                                                                               | 21,732 |   |                                                                               |   | (14,194 | ) |   |   | 7,538 |   |   |   | 22,174 |   |   |   | (6,863 | ) |   |   | 15,311 |   |
|    Trading      securities                                                     |   |                                                                               | 1      |   |                                                                               |   | - |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Overnight      investments                                                  |   |                                                                               | 113    |   |                                                                               |   | - |   |   |   | 113 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Investment      securities                                                  |   |                                                                               | (264   | )      |                                                                               |   | (3,271 | ) |   |   | (3,535 | ) |   |   | (1,909 | ) |   |   | (1,253 | ) |   |   | (3,162 | ) |
|    Mortgage-backed      securities                                             |   |                                                                               | 1,825  |   |                                                                               |   | (2,874 | ) |   |   | (1,049 | ) |   |   | 22,861 |   |   |   | 308 |   |   |   | 23,169 |   |
|    Collateralized      mortgage obligations                                    |   |                                                                               | (1,586 | )      |                                                                               |   | (1,102 | ) |   |   | (2,688 | ) |   |   | 1,311 |   |   |   | (397 | ) |   |   | 914 |   |
|    Other      interest-earning assets                                          |   |                                                                               | 63     |   |                                                                               |   | (366 | ) |   |   | (303 | ) |   |   | (312 | ) |   |   | (778 | ) |   |   | (1,090 | ) |
|          Total      interest-earning assets      |   |                                                                               | 21,855 |   |                                                                               |   | (21,807 | ) |   |   | 48 |   |   |   | 44,124 |   |   |   | (9,092 | ) |   |   | 35,032 |   |
| Interest      expense:                                                                        |   |                                                                               |   |   |                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest-earning      checking accounts                                     |   |                                                                               | 4,297  |   |                                                                               |   | (735 | ) |   |   | 3,562 |   |   |   | 2,184 |   |   |   | (944 | ) |   |   | 1,240 |   |
|    Money      market                                                           |   |                                                                               | 1,654  |   |                                                                               |   | (5,559 | ) |   |   | (3,905 | ) |   |   | 3,980 |   |   |   | (1,964 | ) |   |   | 2,016 |   |
|    Savings      accounts                                                       |   |                                                                               | 145    |   |                                                                               |   | (216 | ) |   |   | (71 | ) |   |   | 489 |   |   |   | 41 |   |   |   | 530 |   |
|    Time      deposits                                                          |   |                                                                               | (1,387 | )      |                                                                               |   | (10,492 | ) |   |   | (11,879 | ) |   |   | 3,726 |   |   |   | (5,624 | ) |   |   | (1,898 | ) |
|          Total      interest-bearing deposits    |   |                                                                               | 4,709  |   |                                                                               |   | (17,002 | ) |   |   | (12,293 | ) |   |   | 10,379 |   |   |   | (8,491 | ) |   |   | 1,888 |   |
|                                                                                          |   |                                                                               |   |   |                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    FHLB      advances                                                          |   |                                                                               | (679   | )      |                                                                               |   | (224 | ) |   |   | (903 | ) |   |   | 440 |   |   |   | (1,089 | ) |   |   | (649 | ) |
|    Repurchase      agreements                                                  |   |                                                                               | 1,029  |   |                                                                               |   | (7 | ) |   |   | 1,022 |   |   |   | 3,777 |   |   |   | (633 | ) |   |   | 3,144 |   |
|    Federal      Reserve overnight borrowings                                   |   |                                                                               | 47     |   |                                                                               |   | - |   |   |   | 47 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    FHLB      overnight borrowings                                              |   |                                                                               | (319   | )      |                                                                               |   | - |   |   |   | (319 | ) |   |   | 319 |   |   |   | - |   |   |   | 319 |   |
|    Statutory      Trust Debenture                                              |   |                                                                               | -      |   |                                                                               |   | (588 | ) |   |   | (588 | ) |   |   | 668 |   |   |   | (270 | ) |   |   | 398 |   |
|    Other      borrowings                                                       |   |                                                                               | (507   | )      |                                                                               |   | 258 |   |   |   | (249 | ) |   |   | 272 |   |   |   | (231 | ) |   |   | 41 |   |
|          Total      interest-bearing liabilities |   |                                                                               | 4,280  |   |                                                                               |   | (17,563 | ) |   |   | (13,283 | ) |   |   | 15,855 |   |   |   | (10,714 | ) |   |   | 5,141 |   |
| Net      change in net interest income                                                        |   | $                                                                                  | 17,575 |   |                                                                               | $      | (4,244 | ) |   | $ | 13,331 |   |   | $ | 28,269 |   |   | $ | 1,622 |   |   | $ | 29,891 |   |

----

| December31,(Dollars      in thousands)                                                                            |   | 2009   |    |   | 2008   |   |   | 2007   |   |   | 2006    |   |   | 2005   |    |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|
| Nonaccrual      loans:                                                                                            |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |
| Real      estate loans:                                                                                           |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |
|    One-to-four      family                                                                         |   | $      | 1,226   |   |   | $      | 13     |   |   | $      | 23      |   |   | $      | – |   |   | $ | – |   |
|    Commercial      real estate                                                                     |   |   | 64,317  |   |   |   | 15,394 |   |   |   | 4,939   |   |   |   | 363     |   |   |   | – |   |
|    Residential      construction                                                                   |   |   | -       |   |   |   | -      |   |   |   | – |   |   |   | – |   |   |   | – |   |
|          Total      real estate loans                                |   |   | 65,543  |   |   |   | 15,407 |   |   |   | 4,962   |   |   |   | 363     |   |   |   | – |   |
|                                                                                                              |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial      business loans                                                                                    |   |   | 6,356   |   |   |   | 1,175  |   |   |   | 2,500   |   |   |   | – |   |   |   | – |   |
|                                                                                                              |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Consumer      loans:                                                                                              |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
|    Home      equity lines of credit                                                                |   |   | -       |   |   |   | 248    |   |   |   | – |   |   |   | – |   |   |   | – |   |
|    Automobile      loans                                                                           |   |   | 274     |   |   |   | 224    |   |   |   | 223     |   |   |   | 171     |   |   |   | 385 |   |
|    Other      consumer loans                                                                       |   |   | 134     |   |   |   | 109    |   |   |   | – |   |   |   | – |   |   |   | – |   |
|          Total      consumer loans                                   |   |   | 408     |   |   |   | 581    |   |   |   | 223     |   |   |   | 171     |   |   |   | 385 |   |
|          Total      nonaccrual loans                                 |   |   | 72,307  |   |   |   | 17,163 |   |   |   | 7,685   |   |   |   | 534     |   |   |   | 385 |   |
|                                                                                                              |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Accruing      loans past due 90 days or more:                                                                     |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Real      estate loans:                                                                                           |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
|    One-to-four      family                                                                         |   |   | 4,405   |   |   |   | 6,192  |   |   |   | 3,700   |   |   |   | 2,425   |   |   |   | 2,540 |   |
|    Commercial      real estate                                                                     |   |   | 5,222   |   |   |   | 4,104  |   |   |   | 1,343   |   |   |   | 2,662   |   |   |   | – |   |
|    Residential      construction                                                                   |   |   | -       |   |   |   | -      |   |   |   | – |   |   |   | – |   |   |   | – |   |
|          Total      real estate loans                                |   |   | 9,627   |   |   |   | 10,296 |   |   |   | 5,043   |   |   |   | 5,087   |   |   |   | 2,540 |   |
|                                                                                                              |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial      business loans                                                                                    |   |   | 1,448   |   |   |   | 2,889  |   |   |   | 64      |   |   |   | 83      |   |   |   | – |   |
|                                                                                                              |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Consumer      loans:                                                                                              |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
|    Home      equity lines of credit                                                                |   |   | 12      |   |   |   | -      |   |   |   | 36      |   |   |   | 54      |   |   |   | 1 |   |
|    Automobile      loans                                                                           |   |   | 176     |   |   |   | 114    |   |   |   | 117     |   |   |   | 130     |   |   |   | 179 |   |
|    Other      consumer loans                                                                       |   |   | 36,912  |   |   |   | 7,584  |   |   |   | 3,366   |   |   |   | 2,263   |   |   |   | 2,055 |   |
|          Total      consumer loans                                   |   |   | 37,100  |   |   |   | 7,698  |   |   |   | 3,519   |   |   |   | 2,447   |   |   |   | 2,235 |   |
|          Total      accruing loans past due 90 days or more          |   |   | 48,175  |   |   |   | 20,883 |   |   |   | 8,626   |   |   |   | 7,617   |   |   |   | 4,775 |   |
|          Total      of nonaccrual and 90 days or more past due loans |   |   | 120,482 |   |   |   | 38,046 |   |   |   | 16,311  |   |   |   | 8,151   |   |   |   | 5,160 |   |
|                                                                                                              |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Troubled      debt restructurings                                                                                 |   |   | 33,337  |   |   |   | 16,442 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Real      estate owned                                                                                            |   |   | 9,061   |   |   |   | 6,297  |   |   |   | 4,797   |   |   |   | 2,809   |   |   |   | 3,146 |   |
|                                                                                                              |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Total      nonperforming assets                                                                                   |   | $      | 162,880 |   |   | $      | 60,785 |   |   | $      | 21,108  |   |   | $      | 10,960  |   |   | $ | 8,306 |   |
|                                                                                                              |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Total      nonperforming loans to total loans (1)                                                                 |   |   | 4.32    | %      |   |   | 1.57   | %      |   |   | 0.77    | %      |   |   | 0.48    | % |   |   | 0.30 | % |
| Total      nonperforming loans to total assets (1)                                                                |   |   | 2.58    | %      |   |   | 0.95   | %      |   |   | 0.46    | %      |   |   | 0.35    | % |   |   | 0.22 | % |
| Total      nonperforming assets to total assets (1)                                                               |   |   | 3.49    | %      |   |   | 1.52   | %      |   |   | 0.59    | %      |   |   | 0.48    | % |   |   | 0.35 | % |
| Total      real estate owned to total assets                                                                      |   |   | 0.19    | %      |   |   | 0.16   | %      |   |   | 0.13    | %      |   |   | 0.12    | % |   |   | 0.13 | % |

----

| At December      31,(Dollars      in thousands) |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|-------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                            |   |   |    |   |   |   |    |   |   |
| Special      mention assets                     |   | $      | 40,809  |   |   | $      | 42,233  |   |   | $ | – |   |
| Substandard      assets                         |   |   | 65,617  |   |   |   | 41,739  |   |   |   | 9,295 |   |
| Doubtful      assets                            |   |   | 51,482  |   |   |   | 13,351  |   |   |   | 370 |   |
| Loss      assets                                |   |   | – |   |   |   | – |   |   |   | – |   |
|    Total      classified assets  |   | $      | 157,908 |   |   | $      | 97,323  |   |   | $ | 9,665 |   |

----

|                                                                                |   | December      31,      |   |
|-------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                |   | 2009                   |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|  (Dollars in      thousands)                                                   |   | 30-59DaysPast      Due |   |   | 60-89DaysPast      Due |   |   | 30-59DaysPast      Due |   |   | 60-89DaysPast      Due |   |   | 30-59DaysPast      Due |   |   | 60-89DaysPast      Due |   |   | 30-59DaysPast      Due |   |   | 60-89DaysPast      Due |   |   | 30-59DaysPast      Due |   |   | 60-89DaysPast      Due |   |
| Real      estate loans:                                                             |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    One-to-four      family                                           |   | $                      | 4,862  |   |   | $ | 2,871 |   |   | $ | 5,381 |   |   | $ | 2,157 |   |   | $ | 4,943 |   |   | $ | 2,243 |   |   | $ | 2,712 |   |   | $ | 1,281 |   |   | $ | 2,474 |   |   | $ | 859 |   |
|    Commercial      real estate                                       |   |                   | 6,112  |   |   |   | 6,384 |   |   |   | 6,139 |   |   |   | 2,654 |   |   |   | 6,274 |   |   |   | 1,000 |   |   |   | 673 |   |   |   | 666 |   |   |   | 45 |   |   |   | 3 |   |
|    Residential      construction                                     |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | 822 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|           Total      real estate  |   |                   | 10,974 |   |   |   | 9,255 |   |   |   | 11,520 |   |   |   | 5,633 |   |   |   | 11,217 |   |   |   | 3,243 |   |   |   | 3,385 |   |   |   | 1,947 |   |   |   | 2,519 |   |   |   | 862 |   |
|                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      business                                                            |   |                   | 2,788  |   |   |   | 2,008 |   |   |   | 2,159 |   |   |   | 1,697 |   |   |   | 2,212 |   |   |   | 187 |   |   |   | 5,700 |   |   |   | - |   |   |   | 8 |   |   |   | 1 |   |
|                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer:                                                                           |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Home      equity lines of credit                                  |   |                   | 503    |   |   |   | 284 |   |   |   | 202 |   |   |   | 14 |   |   |   | 320 |   |   |   | 150 |   |   |   | 68 |   |   |   | 7 |   |   |   | 183 |   |   |   | 16 |   |
|    Automobile      loans                                             |   |                   | 1,299  |   |   |   | 271 |   |   |   | 1,354 |   |   |   | 407 |   |   |   | 1,468 |   |   |   | 291 |   |   |   | 1,028 |   |   |   | 217 |   |   |   | 1,014 |   |   |   | 310 |   |
|    Other      consumer loans                                         |   |                   | 19,727 |   |   |   | 10,016 |   |   |   | 6,298 |   |   |   | 2,476 |   |   |   | 2,458 |   |   |   | 998 |   |   |   | 2,756 |   |   |   | 1,147 |   |   |   | 2,728 |   |   |   | 1,148 |   |
|           Total      consumer     |   |                   | 21,529 |   |   |   | 10,571 |   |   |   | 7,854 |   |   |   | 2,897 |   |   |   | 4,246 |   |   |   | 1,439 |   |   |   | 3,852 |   |   |   | 1,371 |   |   |   | 3,925 |   |   |   | 1,474 |   |
|              Total |   | $                      | 35,291 |   |   | $ | 21,834 |   |   | $ | 21,533 |   |   | $ | 10,227 |   |   | $ | 17,675 |   |   | $ | 4,869 |   |   | $ | 12,937 |   |   | $ | 3,318 |   |   | $ | 6,452 |   |   | $ | 2,337 |   |

----

|                                                                            |   | 2009                                                               |    |   | 2008                                                    |   |   | 2007                                                               |   |
|---------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|---------|--------|---------------------------------------------------------|--------|--------|--------------------------------------------------------------------|--------|
| December31,(Dollars      in thousands)                                          |   | Amount      of Allowance      Allocated      to Loan      Category |    |   | Loan      Category      as      a % of Total      Loans |   |   | Amount      of Allowance      Allocated      to Loan      Category |   |   | Loan      Category      as      a % of Total      Loans |   |   | Amount      of Allowance      Allocated      to Loan      Category |   |   | Loan      Category      as      a % of Total      Loans |   |
| Real      estate loans:                                                         |   |                                                               |    |   |                                                    |   |   |                                                               |   |   |   |   |   |   |   |   |   |   |
|    One-to-four      family                                       |   | $                                                                  | 5,460   |   |                                                    |   | 23.26  | %                                                                  |   | $ | 3,152 |   |   |   | 20.99 | % |   | $ | 1,763 |   |   |   | 22.69 | % |
|    Commercial      real estate                                   |   |                                                               | 14,185  |   |                                                    |   | 28.08  |                                                               |   |   | 22,744 |   |   |   | 32.55 |   |   |   | 12,320 |   |   |   | 32.80 |   |
|    Residential      construction                                 |   |                                                               | 97      |   |                                                    |   | 0.43   |                                                               |   |   | 37 |   |   |   | 0.25 |   |   |   | – |   |   |   | 0.09 |   |
|          Total      real estate    |   |                                                               | 19,742  |   |                                                    |   | 51.77  |                                                               |   |   | 25,933 |   |   |   | 53.79 |   |   |   | 14,083 |   |   |   | 55.58 |   |
|                                                                            |   |                                                               |    |   |                                                    |   |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      business                                                        |   |                                                               | 20,515  |   |                                                    |   | 18.81  |                                                               |   |   | 7,185 |   |   |   | 13.25 |   |   |   | 4,837 |   |   |   | 6.45 |   |
|                                                                            |   |                                                               |    |   |                                                    |   |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer:                                                                       |   |                                                               |    |   |                                                    |   |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Home      equity loans and lines of credit                    |   |                                                               | 2,169   |   |                                                    |   | 11.25  |                                                               |   |   | 1,400 |   |   |   | 14.98 |   |   |   | 2,370 |   |   |   | 18.48 |   |
|    Automobile      loans                                         |   |                                                               | 1,484   |   |                                                    |   | 5.03   |                                                               |   |   | 801 |   |   |   | 5.87 |   |   |   | 1,230 |   |   |   | 8.26 |   |
|    Other      consumer loans                                     |   |                                                               | 1,945   |   |                                                    |   | 13.14  |                                                               |   |   | 1,586 |   |   |   | 12.11 |   |   |   | 821 |   |   |   | 11.23 |   |
|           Total      consumer |   |                                                               | 5,598   |   |                                                    |   | 29.42  |                                                               |   |   | 3,787 |   |   |   | 32.96 |   |   |   | 4,421 |   |   |   | 37.97 |   |
|                                                                            |   |                                                               |    |   |                                                    |   |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unallocated                                                                     |   |                                                               | – |   |                                                    |   |   |                                                               |   |   | – |   |   |   |   |   |   |   | – |   |   |   |   |   |
|    Total      allowance for loan losses                          |   | $                                                                  | 45,855  |   |                                                    |   | 100.00 | %                                                                  |   | $ | 36,905 |   |   |   | 100.00 | % |   | $ | 23,341 |   |   |   | 100.00 | % |

|                                                                         |   | 2006                                                               |    |   | 2005                                                   |   |
|------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|---------|--------|--------------------------------------------------------|--------|
| December31,(Dollars      in thousands)                                       |   | Amount      of Allowance Allocated      to Loan      Category |    |   | Loan      Category      asa      % of Total      Loans |   |   | Amount      of Allowance      Allocated      to Loan      Category |   |   | Loan      Category      as a      % of Total      Loans |   |
| Real      estate loans:                                                      |   |                                                               |    |   |                                                   |   |   |   |   |   |   |   |
|    One-to-four      family                                    |   | $                                                                  | 970     |   |                                                   |   | 16.16 | % |   | $ | 942 |   |   |   | 17.12 | % |
|    Commercial      real estate                                |   |                                                               | 8,124   |   |                                                   |   | 24.38 |   |   |   | 7,261 |   |   |   | 21.48 |   |
|    Residential      construction                              |   |                                                               | – |   |                                                   |   | 0.59 |   |   |   | – |   |   |   | 0.96 |   |
|          Total      real estate |   |                                                               | 9,094   |   |                                                   |   | 41.58 |   |   |   | 8,203 |   |   |   | 39.56 |   |
|                                                                         |   |                                                               |    |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      business                                                     |   |                                                               | 1,955   |   |                                                   |   | 5.87 |   |   |   | 1,311 |   |   |   | 3.88 |   |
|                                                                         |   |                                                               |    |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer:                                                                    |   |                                                               |    |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
|    Home      equity loans and lines of credit                 |   |                                                               | 2,326   |   |                                                   |   | 22.88 |   |   |   | 2,623 |   |   |   | 22.90 |   |
|    Automobile      loans                                      |   |                                                               | 2,532   |   |                                                   |   | 13.85 |   |   |   | 3,150 |   |   |   | 15.74 |   |
|    Other      consumer loans                                  |   |                                                               | 1,304   |   |                                                   |   | 15.82 |   |   |   | 1,735 |   |   |   | 17.92 |   |
|          Total      consumer    |   |                                                               | 6,162   |   |                                                   |   | 52.55 |   |   |   | 7,508 |   |   |   | 56.56 |   |
|                                                                         |   |                                                               |    |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Unallocated                                                                  |   |                                                               | 157     |   |                                                   |   |   |   |   |   | 74 |   |   |   |   |   |
|    Total      allowance for loan losses                       |   | $                                                                  | 17,368  |   |                                                   |   | 100.00 | % |   | $ | 17,096 |   |   |   | 100.00 | % |

----

| Year      Ended December 31,(Dollars      in thousands)                                                      |   | 2009   |   |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|--------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                                                                                         |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |
| Allowance      at beginning of period                                                                        |   | $      | 36,905 |   |   | $      | 23,341  |   |   | $      | 17,368  |   |   | $      | 17,096  |   |   | $ | 17,141 |   |
|                                                                                                         |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Provision      for loan losses                                                                               |   |   | 15,697 |   |   |   | 18,901  |   |   |   | 2,470   |   |   |   | 1,575   |   |   |   | 1,703 |   |
| Charge      offs:                                                                                            |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Real      estate loans:                                                                                      |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
|    One-to-four      family                                                                    |   |   | 6      |   |   |   | 35      |   |   |   | 72      |   |   |   | 44      |   |   |   | 76 |   |
|    Commercial      real estate                                                                |   |   | 2,851  |   |   |   | 921     |   |   |   | 477     |   |   |   | – |   |   |   | 47 |   |
|         Total      real estate loans                                 |   |   | 2,857  |   |   |   | 956     |   |   |   | 549     |   |   |   | 44      |   |   |   | 123 |   |
|                                                                                                         |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial      business loans                                                                               |   |   | 1,870  |   |   |   | 2,753   |   |   |   | 188     |   |   |   | 12      |   |   |   | 110 |   |
|                                                                                                         |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Consumer:                                                                                                    |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
|    Home      equity lines of credit                                                           |   |   | 544    |   |   |   | 433     |   |   |   | 241     |   |   |   | 81      |   |   |   | 93 |   |
|    Automobile      loans                                                                      |   |   | 1,340  |   |   |   | 1,282   |   |   |   | 969     |   |   |   | 1,347   |   |   |   | 1,427 |   |
|    Other      consumer loans                                                                  |   |   | 1,092  |   |   |   | 539     |   |   |   | 444     |   |   |   | 813     |   |   |   | 1,157 |   |
|         Total      consumer loans                                    |   |   | 2,976  |   |   |   | 2,254   |   |   |   | 1,654   |   |   |   | 2,241   |   |   |   | 2,677 |   |
|            Total      charge-offs                     |   |   | 7,703  |   |   |   | 5,963   |   |   |   | 2,391   |   |   |   | 2,297   |   |   |   | 2,910 |   |
|                                                                                                         |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Recoveries:                                                                                                  |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Real      estate loans:                                                                                      |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
|    One-to-four      family                                                                    |   |   | 4      |   |   |   | 3       |   |   |   | 1       |   |   |   | 36      |   |   |   | 8 |   |
|    Commercial      real estate                                                                |   |   | -      |   |   |   | -       |   |   |   | – |   |   |   | – |   |   |   | 47 |   |
|         Total      real estate loans                                 |   |   | 4      |   |   |   | 3       |   |   |   | 1       |   |   |   | 36      |   |   |   | 55 |   |
|                                                                                                         |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial      business                                                                                     |   |   | 212    |   |   |   | – |   |   |   | – |   |   |   | 1       |   |   |   | 8 |   |
|                                                                                                         |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Consumer:                                                                                                    |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
|    Home      equity lines of credit                                                           |   |   | 137    |   |   |   | 128     |   |   |   | 137     |   |   |   | 123     |   |   |   | 223 |   |
|    Automobile      loans                                                                      |   |   | 355    |   |   |   | 355     |   |   |   | 504     |   |   |   | 467     |   |   |   | 586 |   |
|    Other      consumer loans                                                                  |   |   | 248    |   |   |   | 140     |   |   |   | 237     |   |   |   | 367     |   |   |   | 290 |   |
|         Total      consumer loans                                    |   |   | 740    |   |   |   | 623     |   |   |   | 878     |   |   |   | 957     |   |   |   | 1,099 |   |
|            Total      recoveries                      |   |   | 956    |   |   |   | 626     |   |   |   | 879     |   |   |   | 994     |   |   |   | 1,162 |   |
| Net      charge-offs                                                                                         |   |   | 6,747  |   |   |   | 5,337   |   |   |   | 1,512   |   |   |   | 1,303   |   |   |   | 1,748 |   |
| Allowance      acquired from merger                                                                          |   |   | -      |   |   |   | -       |   |   |   | 5,015   |   |   |   | – |   |   |   | – |   |
|      Allowance      at end of period                                                |   | $      | 45,855 |   |   | $      | 36,905  |   |   | $      | 23,341  |   |   | $      | 17,368  |   |   | $ | 17,096 |   |
|                                                                                                         |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Allowance      to nonperforming loans                                                                        |   |   | 262.75 | %      |   |   | 97.00   | %      |   |   | 143.10  | %      |   |   | 213.09  | % |   |   | 331.32 | % |
| Allowance      to total loans outstanding                                                                    |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
|    at      the end of the period                                                              |   |   | 1.64   | %      |   |   | 1.52    | %      |   |   | 1.10    | %      |   |   | 1.03    | % |   |   | 0.99 | % |
| Net      charge-offs (recoveries) to average    loans      outstanding during the period |   |   | 0.25   | %      |   |   | 0.24    | %      |   |   | 0.08    | %      |   |   | 0.07    | % |   |   | 0.10 | % |

----

| Basis      point change in rates     |   |   | -200    |   |   | Base      Forecast |    |   |   | +200   |    |
|--------------------------------------|--------|--------|---------|--------|--------|--------------------|---------|--------|--------|--------|---------|
|                                 |   |   |    |   |   |               |    |   |   |   |    |
| Net      Interest Income at Risk:    |   |   |    |   |   |               |    |   |   |   |    |
|   Net      Interest Income |   | $      | 155,463 |   |   | $                  | 158,508 |   |   | $      | 155,032 |   |
|   %      change            |   |   | (1.92   | )%     |   |               |    |   |   |   | (2.19   | )% |
|                                 |   |   |    |   |   |               |    |   |   |   |    |   |
| Net      Income at Risk:             |   |   |    |   |   |               |    |   |   |   |    |   |
|   Net      income          |   | $      | 23,592  |   |   | $                  | 25,637  |   |   | $      | 23,409  |   |
|   %      change            |   |   | (7.98   | )%     |   |               |    |   |   |   | (8.69   | )% |
|                                 |   |   |    |   |   |               |    |   |   |   |    |   |
| Economic      Value at Risk:         |   |   |    |   |   |               |    |   |   |   |    |   |
|   Equity                   |   | $      | 586,859 |   |   | $                  | 593,075 |   |   | $      | 470,299 |   |
|   %      change            |   |   | (1.05   | )%     |   |               |    |   |   |   | (20.70  | )% |
|                                 |   |   |    |   |   |               |    |   |   |   |    |   |

----

| Basis      point change in rates     |   |   | -200    |   |   | Base      Forecast |    |   |   | +200   |    |
|--------------------------------------|--------|--------|---------|--------|--------|--------------------|---------|--------|--------|--------|---------|
|                                 |   |   |    |   |   |               |    |   |   |   |    |
| Net      Interest Income at Risk:    |   |   |    |   |   |               |    |   |   |   |    |
|   Net      Interest Income |   | $      | 122,349 |   |   | $                  | 128,090 |   |   | $      | 131,728 |   |
|   %      change            |   |   | (4.48   | )%     |   |               |    |   |   |   | 2.84    | % |
|                                 |   |   |    |   |   |               |    |   |   |   |    |   |
| Net      Income at Risk:             |   |   |    |   |   |               |    |   |   |   |    |   |
|   Net      income          |   | $      | 28,778  |   |   | $                  | 32,552  |   |   | $      | 34,945  |   |
|   %      change            |   |   | (11.59  | )%     |   |               |    |   |   |   | 7.35    | % |
|                                 |   |   |    |   |   |               |    |   |   |   |    |   |
| Economic      Value at Risk:         |   |   |    |   |   |               |    |   |   |   |    |   |
|   Equity                   |   | $      | 536,852 |   |   | $                  | 645,194 |   |   | $      | 634,628 |   |
|   %      change            |   |   | (16.99  | )%     |   |               |    |   |   |   | (1.64   | )% |

----

|                             |   |   |    |   | Payments      dueby      period   |   |
|----------------------------------|--------|--------|---------|--------|-----------------------------------|--------|
| (Dollars      in thousands)      |   | Total  |    |   | Less      than One      Year |   |   | One      toThree      Years |   |   | Three      toFive      Years |   |   | More      Than Five Years |   |
|                             |   |   |    |   |                              |   |   |   |   |   |   |   |   |   |   |
| Commitments      to fund loans   |   | $      | 72,688  |   |                              | $      | 72,688 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Unused      lines of credit      |   |   | 170,858 |   |                              |   | 111,907 |   |   |   | - |   |   |   | - |   |   |   | 58,951 |   |
| Standby      letters of credit   |   |   | 25,093  |   |                              |   | 25,093 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Operating      lease obligations |   |   | 25,260  |   |                              |   | 5,211 |   |   |   | 4,906 |   |   |   | 3,413 |   |   |   | 11,730 |   |
|    Total          |   | $      | 293,899 |   |                              | $      | 214,899 |   |   | $ | 4,906 |   |   | $ | 3,413 |   |   | $ | 70,681 |   |

| Year Ended December      31,(Dollars      in thousands)                                                                                                |   | 2009   |     |   | 2008   |   |     | 2007   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                                                                                                                   |   |   |     |   |   |   |     |   |   |
| Investing      activities:                                                                                                                             |   |   |     |   |   |   |     |   |   |
|    Loan      purchases                                                                                                                  |   | $      | (201,681 | )      |   | $      | (38,356  | )      |   | $ | (91 | ) |
|    Loan      originations                                                                                                               |   |   | (764,975 | )      |   |   | (846,256 | )      |   |   | (518,897 | ) |
|    Principal      repayments on loans                                                                                                   |   |   | 553,870  |   |   |   | 574,829  |   |   |   | 528,703 |   |
|    Purchases      of investment securities available-for-sale                                                                           |   |   | 653,265  |   |   |   | 518,492  |   |   |   | 2,255,047 |   |
|    Purchases      of investment securities held–to-maturity                                                                       |   |   | 1,965    |   |   |   | -        |   |   |   | - |   |
|    Proceeds      from sales and maturities of investment      securities      available-for-sale          |   |   | 485,625  |   |   |   | 361,605  |   |   |   | 2,189,039 |   |
|    Proceeds      from maturities, calls or repayments of      investment      securities held-to-maturity |   |   | 29,826   |   |   |   | 35,813   |   |   |   | 18,167 |   |
|                                                                                                                                                   |   |   |     |   |   |   |     |   |   |   |   |   |
| Financing      activities:                                                                                                                             |   |   |     |   |   |   |     |   |   |   |   |   |
|    Increase      (decrease) in deposits                                                                                                 |   |   | 767,568  |   |   |   | 276,517  |   |   |   | (123,262 | ) |
|    Decrease      in Federal Home Loan Bank      Advances                                                  |   |   | (5,000   | )      |   |   | (11,000  | )      |   |   | (10,800 | ) |
|    Increase      (Decrease) in repurchase agreements                                                                                    |   |   | -        |   |   |   | 54,615   |   |   |   | (13,777 | ) |
|    (Decrease)      increase in Federal Reserve overnight borrowings                                                                     |   |   | (96,250  | )      |   |   | 96,250   |   |   |   | - |   |
|    Decrease      in Federal Home Loan Bank   overnight      borrowings                                                   |   |   | -        |   |   |   | -        |   |   |   | - |   |
|    (Decrease)      increase in other borrowings                                                                                         |   |   | (7       | )      |   |   | 31,067   |   |   |   | 808 |   |

----

----

----

----

----

| CONSOLIDATED STATEMENTS OF      FINANCIAL CONDITION (Dollars in thousands, except per share      amounts) |
|-----------------------------------------------------------------------------------------------------------|
| As      of December 31, 2009 and 2008                                                                     |   |   |   |   |

| ASSETS                                                                                                                       |   | 2009   |      |   | 2008   |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                                                                         |   |   |      |   |   |   |
| CASH      AND CASH EQUIVALENTS                                                                                               |   |   |      |   |   |   |
| Cash      and due from banks                                                                                                 |   | $      | 39,739    |   |   | $      | 44,380 |   |
| Interest-bearing      deposits                                                                                               |   |   | 139,962   |   |   |   | 9 |   |
| Total      cash and cash equivalents                                                                                         |   |   | 179,701   |   |   |   | 44,389 |   |
|                                                                                                                         |   |   |      |   |   |   |   |   |
| Trading      securities                                                                                                      |   |   | 31,825    |   |   |   | - |   |
|                                                                                                                         |   |   |      |   |   |   |   |   |
| INVESTMENT      SECURITIES:                                                                                                  |   |   |      |   |   |   |   |   |
|                                                                                                                         |   |   |      |   |   |   |   |   |
|  Available-for-sale      (amortized cost of $1,260,670 and $1,095,232 at December 31, 2009 and      2008, respectively) |   |   | 1,287,106 |   |   |   | 1,114,086 |   |
|  Held-to-maturity      (estimated fair value of $49,853 and $77,369 at December 31, 2009 and      2008, respectively)   |   |   | 48,009    |   |   |   | 76,014 |   |
| Federal      Home Loan Bank stock, at cost                                                                                   |   |   | 28,068    |   |   |   | 28,068 |   |
| Total      investment securities                                                                                             |   |   | 1,363,183 |   |   |   | 1,218,168 |   |
|                                                                                                                         |   |   |      |   |   |   |   |   |
| LOANS                                                                                                                        |   |   | 2,790,119 |   |   |   | 2,424,582 |   |
| Allowance      for loan losses                                                                                               |   |   | (45,855   | )      |   |   | (36,905 | ) |
| Net      loans                                                                                                               |   |   | 2,744,264 |   |   |   | 2,387,677 |   |
| ACCRUED      INTEREST RECEIVABLE                                                                                             |   |   | 19,375    |   |   |   | 17,543 |   |
|                                                                                                                         |   |   |      |   |   |   |   |   |
| BANK      PREMISES AND EQUIPMENT, Net                                                                                        |   |   | 81,255    |   |   |   | 78,490 |   |
|                                                                                                                         |   |   |      |   |   |   |   |   |
| OTHER      ASSETS                                                                                                            |   |   |      |   |   |   |   |   |
| Goodwill                                                                                                                     |   |   | 110,486   |   |   |   | 111,462 |   |
| Bank      owned life insurance                                                                                               |   |   | 32,357    |   |   |   | 30,850 |   |
| Other      intangibles                                                                                                       |   |   | 20,430    |   |   |   | 23,985 |   |
| Other      assets                                                                                                            |   |   | 90,804    |   |   |   | 89,486 |   |
| Total      other assets                                                                                                      |   |   | 254,077   |   |   |   | 255,783 |   |
| TOTAL      ASSETS                                                                                                            |   | $      | 4,673,680 |   |   | $      | 4,002,050 |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                              |   |   |      |   |   |   |   |   |
| LIABILITIES:                                                                                                                 |   |   |      |   |   |   |   |   |
| Deposits:                                                                                                                    |   |   |      |   |   |   |   |   |
| Non-interest      bearing deposits                                                                                           |   | $      | 242,412   |   |   | $      | 226,382 |   |
| Interest-bearing      deposits                                                                                               |   |   | 3,266,835 |   |   |   | 2,515,297 |   |
|                                                                                                                         |   |   |      |   |   |   |   |   |
| Total      deposits                                                                                                          |   |   | 3,509,247 |   |   |   | 2,741,679 |   |
|                                                                                                                         |   |   |      |   |   |   |   |   |
| Borrowed      funds                                                                                                          |   |   | 433,620   |   |   |   | 580,054 |   |
| Other      liabilities                                                                                                       |   |   | 93,812    |   |   |   | 69,777 |   |
|                                                                                                                         |   |   |      |   |   |   |   |   |
| Total      liabilities                                                                                                       |   |   | 4,036,679 |   |   |   | 3,391,510 |   |
|                                                                                                                         |   |   |      |   |   |   |   |   |
| COMMITMENTS      AND CONTINGENCIES (Note 20)                                                                                 |   |   |      |   |   |   |   |   |
| STOCKHOLDERS’      EQUITY:                                                                                             |   |   |      |   |   |   |   |   |
| Preferred Stock - $.01 par      value; 100,000,000 shares authorized,                                                        |   |   |      |   |   |   |   |   |
| None      issued or outstanding as of December 31, 2009 and December 31,      2008                                           |   |   | -         |   |   |   | - |   |
| Common Stock - $.01 par value      300,000,000 shares authorized, 82,264,457 and 82,264,457,                                 |   |   |      |   |   |   |   |   |
| Shares      issued and outstanding as of December 31, 2009 and December 31, 2008,      respectively                          |   |   | 823       |   |   |   | 823 |   |
| Additional paid-in      capital                                                                                              |   |   | 345,356   |   |   |   | 342,420 |   |
| Unearned common stock held by      employee stock ownership plan                                                             |   |   | (25,489   | )      |   |   | (28,510 | ) |
| Retained earnings (partially      restricted)                                                                                |   |   | 313,195   |   |   |   | 296,106 |   |
| Accumulated other comprehensive      income (loss)                                                                           |   |   | 6,712     |   |   |   | (299 | ) |
| Treasury      Stock at cost, 410,904 shares and 0 shares at December 31, 2009 and 2008,      respectively.                   |   |   | (3,596    | )      |   |   | - |   |
|  Total      stockholders’ equity                                                                                  |   |   | 637,001   |   |   |   | 610,540 |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                        |   | $      | 4,673,680 |   |   | $      | 4,002,050 |   |
|                                                                                                                         |   |   |      |   |   |   |   |   |
| See      accompanying notes to consolidated financial statements.                                                            |   |   |      |   |   |   |   |   |

----

| BENEFICIAL      MUTUAL BANCORP, INC. AND SUBSIDIARIES                                           |   |
|-------------------------------------------------------------------------------------------------|--------|
|                                                                                            |   |
| CONSOLIDATED      STATEMENTS OF OPERATIONS(Dollars      in thousands, except per share amounts) |
| For      the Years Ended December 31, 2009, 2008 and 2007                                       |   |

|                                                               |   | 2009   |       |   | 2008   |   |       | 2007   |   |
|--------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| INTEREST      INCOME                                               |   |   |       |   |   |   |       |   |   |
| Interest      and fees on loans                                    |   | $      | 140,183    |   |   | $      | 132,645    |   |   | $ | 117,334 |   |
| Interest      on overnight investments                             |   |   | 113        |   |   |   | 523        |   |   |   | 1,613 |   |
| Interest      on trading securities                                |   |   | 1          |   |   |   | -          |   |   |   | - |   |
| Interest      and dividends on investment securities:              |   |   |       |   |   |
| Taxable                                                            |   |   | 49,438     |   |   |   | 58,054     |   |   |   | 37,885 |   |
| Tax-exempt                                                         |   |   | 3,239      |   |   |   | 1,704      |   |   |   | 1,062 |   |
| Total      interest income                                         |   |   | 192,974    |   |   |   | 192,926    |   |   |   | 157,894 |   |
| INTEREST      EXPENSE                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Interest      on deposits:                                         |   |   |       |   |   |   |       |   |   |   |   |   |
| Interest      bearing checking accounts                            |   |   | 9,052      |   |   |   | 5,490      |   |   |   | 4,250 |   |
| Money      market and savings deposits                             |   |   | 11,073     |   |   |   | 15,049     |   |   |   | 12,503 |   |
| Time      deposits                                                 |   |   | 26,724     |   |   |   | 38,603     |   |   |   | 40,501 |   |
| Total                                                              |   |   | 46,849     |   |   |   | 59,142     |   |   |   | 57,254 |   |
| Interest      on borrowed funds                                    |   |   | 18,783     |   |   |   | 19,773     |   |   |   | 16,520 |   |
| Total      interest expense                                        |   |   | 65,632     |   |   |   | 78,915     |   |   |   | 73,774 |   |
| Net      interest income                                           |   |   | 127,342    |   |   |   | 114,011    |   |   |   | 84,120 |   |
| PROVISION      FOR LOAN LOSSES                                     |   |   | 15,697     |   |   |   | 18,901     |   |   |   | 2,470 |   |
| Net      interest income after provision for loan losses           |   |   | 111,645    |   |   |   | 95,110     |   |   |   | 81,650 |   |
| NON-INTEREST      INCOME                                           |   |   |       |   |   |   |       |   |   |   |   |   |
| Insurance      commission income                                   |   |   | 8,133      |   |   |   | 10,090     |   |   |   | 5,223 |   |
| Service      charges and other income                              |   |   | 13,743     |   |   |   | 15,973     |   |   |   | 9,053 |   |
| Impairment      charge on securities available-for-sale            |   |   | (1,587     | )      |   |   | (3,216     | )      |   |   | (1,192 | ) |
| Net      gains on sale of investment securities available-for-sale |   |   | 6,530      |   |   |   | 757        |   |   |   | 288 |   |
| Trading      securities profits                                    |   |   | 28         |   |   |   | -          |   |   |   | - |   |
| Total      non-interest income                                     |   |   | 26,847     |   |   |   | 23,604     |   |   |   | 13,372 |   |
| NON-INTEREST      EXPENSE                                          |   |   |       |   |   |   |       |   |   |   |   |   |
| Salaries      and employee benefits                                |   |   | 58,251     |   |   |   | 52,684     |   |   |   | 51,118 |   |
| Pension      curtailment gain                                      |   |   | -          |   |   |   | (7,289     | )      |   |   | - |   |
| Contribution      to the Beneficial Foundation                     |   |   | -          |   |   |   | -          |   |   |   | 9,995 |   |
| Occupancy      expense                                             |   |   | 11,992     |   |   |   | 11,693     |   |   |   | 9,367 |   |
| Depreciation,      amortization and maintenance                    |   |   | 8,822      |   |   |   | 8,225      |   |   |   | 6,970 |   |
| Advertising                                                        |   |   | 5,889      |   |   |   | 6,300      |   |   |   | 4,507 |   |
| Intangible      amortization expense                               |   |   | 3,555      |   |   |   | 5,213      |   |   |   | 3,434 |   |
| Impairment      of goodwill                                        |   |   | 976        |   |   |   | -          |   |   |   | - |   |
| FDIC      Insurance                                                |   |   | 5,633      |   |   |   | 341        |   |   |   | 255 |   |
| Other                                                              |   |   | 24,748     |   |   |   | 21,136     |   |   |   | 15,386 |   |
| Total      non-interest expense                                    |   |   | 119,866    |   |   |   | 98,303     |   |   |   | 101,032 |   |
| Income      (loss) before income taxes                             |   |   | 18,626     |   |   |   | 20,411     |   |   |   | (6,010 | ) |
| INCOME      TAX EXPENSE (BENEFIT)                                  |   |   | 1,537      |   |   |   | 3,865      |   |   |   | (4,465 | ) |
| Net      income (loss)                                             |   | $      | 17,089     |   |   | $      | 16,546     |   |   | $ | (1,545 | ) |
|                                                               |   |   |       |   |   |   |       |   |   |   |   |   |
| NET      EARNINGS (LOSS)  PER SHARE - Basic and Diluted  |   | $      | 0.22       |   |   | $      | 0.21       |   |   | $ | (0.03 | ) |
| Average      common shares outstanding - Basic                     |   |   | 77,693,082 |   |   |   | 78,702,419 |   |   |   | 61,374,792 |   |
| Average      common shares outstanding - Diluted                   |   |   | 77,723,668 |   |   |   | 78,702,419 |   |   |   | 61,374,792 |   |
| Dividends      per share (1)                                       |   | $      | -          |   |   | $      | -          |   |   | $ | 0.01 |   |

| (1)  | Reflects      dividends paid to Beneficial Savings Bank MHC, in April 2007, prior to the      consummation of Beneficial Mutual Bancorp’s minority stock offering      in July 2007. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| BENEFICIAL      MUTUTAL BANCORP, INC. AND SUBSIDIARIES                                                                                                                                     |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|  CONSOLIDATED      STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Dollars      in thousands, except per share amounts)For the Years Ended December      31, 2009, 2008 and 2007 |   |   |   |

|                                                                                                                                       |   | Numberof      Shares |       |   | CommonStock |   |   | AdditionalPaid      inCapital |   |   | CommonStockheld      byESOP |   |   | RetainedEarnings |    |   | TreasuryStock |   |    | AccumulatedOtherComprehensiveIncome      (Loss) |   |   | TotalStockholders’Equity |   |   | ComprehensiveIncome |    |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|------------|--------|-------------|--------|--------|-------------------------------|--------|--------|-----------------------------|--------|--------|------------------|---------|--------|---------------|--------|---------|-------------------------------------------------|--------|--------|--------------------------------|--------|--------|---------------------|---------|
| BEGINNING      BALACE, JANUARY 1, 2007                                                                                                     |   |                 | 100        |   |        | $      | -      |                          |   | $      | -                           |   |   | $                | -       |   |          | $      | 293,157 |                                            |   | $      | -                              |   |   | $                   | (12,742 | ) |   | $ | 280,415 |   |   |   |   |
| Net      loss                                                                                                                              |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   | (1,545  | )                                               |   |   |                           |   |   |                |    |   |   |   | (1,545 | ) |   | $ | (1,545 | ) |
| Stock      dividend of 45,792,675 shares to Beneficial Savings      Bank  MHC                                                    |   |                 | 45,792,675 |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   |   |   |   |   |   |   |
| Sale      of 23,606,625 shares of common stock in initial public offering and      issuance of 950,000 shares to The Beneficial Foundation |   |                 | 24,556,625 |   |        |   | 704    |                          |   |   | 241,166                     |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   | 241,870 |   |   |   |   |   |
| Issuance      of 11,915,200 shares in connection with FMS Financial Corporation      acquisition                                           |   |                 | 11,915,200 |   |        |   | 119    |                          |   |   | 119,033                     |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   | 119,152 |   |   |   |   |   |
| Unallocated      ESOP shares committed to employees                                                                                        |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             | (32,248 | )      |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   | (32,248 | ) |   |   |   |   |
| ESOP      shares committed to be released                                                                                                  |   |                 |       |   |        |   |   |                          |   |   | (73                         | )      |   |             | 1,613   |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   | 1,540 |   |   |   |   |   |
| Net unrealized gain      on available-for-sale (“AFS”) securities arising during the year (net      of deferred tax of $3,161) |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                | 9,032   |   |   |   | 9,032 |   |   |   | 9,032 |   |
| Reclassification      adjustment for net gains AFS securities included in net income (net      of tax of $101)                             |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                | (187    | ) |   |   | (187 | ) |   |   | (187 | ) |
| Reclassification      adjustment for other-than-temporary impairment (net      of tax benefit of $417)                                     |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                | 775     |   |   |   | 775 |   |   |   | 775 |   |
| Pension, other      postretirement benefit plan adjustments (net      of tax of $670)                                                      |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                | 1,245   |   |   |   | 1,245 |   |   |   | 1,245 |   |
| Comprehensive      income                                                                                                                  |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   |   |   |   | $ | 9,320 |   |
| Cash      dividend                                                                                                                         |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   | (252    | )                                               |   |   |                           |   |   |                |    |   |   |   | (252 | ) |   |   |   |   |
| BALANCE,  DECEMBER      31, 2007                                                                                                 |   |                 | 82,264,600 |   |        | $      | 823    |                          |   | $      | 360,126                     |   |   | $                | (30,635 | )      |          | $      | 291,360 |                                            |   | $      | -                              |   |   | $                   | (1,877  | ) |   | $ | 619,797 |   |   |   |   |   |
| Net      Income                                                                                                                            |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   | 16,546  |                                            |   |   |                           |   |   |                |    |   |   |   | 16,546 |   |   |   | 16,546 |   |
| ESOP      shares committed to be released                                                                                                  |   |                 |       |   |        |   |   |                          |   |   | 236                         |   |   |             | 2,125   |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   | 2,361 |   |   |   |   |   |
| Stock      Option Expense                                                                                                                  |   |                 |       |   |        |   |   |                          |   |   | 433                         |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   | 433 |   |   |   |   |   |
| Restricted      Stock Shares                                                                                                               |   |                 |       |   |        |   |   |                          |   |   | 683                         |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   | 683 |   |   |   |   |   |
| Funding      of Restricted Stock Awards                                                                                                    |   |                 |       |   |        |   |   |                          |   |   | (19,074                     | )      |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   | (19,074 | ) |   |   |   |   |
| Other                                                                                                                                      |   |                 | (143       | )      |        |   |   |                          |   |   | 16                          |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   | 16 |   |   |   |   |   |
| Net unrealized gain      on AFS securities arising during the year (net      of deferred tax of $1,902)                                    |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                | 3,533   |   |   |   | 3,533 |   |   |   | 3,533 |   |
| Reclassification      adjustment for net gains AFS securities included in net income (net      of tax of $265)                             |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                | (492    | ) |   |   | (492 | ) |   |   | (492 | ) |
| Reclassification      adjustment for OTTI  (net      of tax benefit of $1,126)                                                   |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                | 2,090   |   |   |   | 2,090 |   |   |   | 2,090 |   |
| Pension and other      postretirement benefit plan adjustments      (net of tax of $6,087)                                                 |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                | (11,306 | ) |   |   | (11,306 | ) |   |   | (11,306 | ) |
| Immediate recognition      of prior service cost and unrealized gain due to curtailment (Net      of deferred tax of $4,175)               |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                | 7,753   |   |   |   | 7,753 |   |   |   | 7,753 |   |
| Comprehensive      income                                                                                                                  |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   |   |   |   | $ | 18,124 |   |
| Split-Dollar      Life Insurance Adjustment                                                                                                |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   | (11,800 | )                                               |   |   |                           |   |   |                |    |   |   |   | (11,800 | ) |   |   |   |   |
| BALANCE,  DECEMBER      31, 2008                                                                                                 |   |                 | 82,264,457 |   |        | $      | 823    |                          |   | $      | 342,420                     |   |   | $                | (28,510 | )      |          | $      | 296,106 |                                            |   | $      | -                              |   |   | $                   | (299    | ) |   | $ | 610,540 |   |   |   |   |   |
| Net      Income                                                                                                                            |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   | 17,089  |                                            |   |   |                           |   |   |                |    |   |   |   | 17,089 |   |   |   | 17,089 |   |
| ESOP      shares committed to be released                                                                                                  |   |                 |       |   |        |   |   |                          |   |   | (91                         | )      |   |             | 3,021   |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   | 2,930 |   |   |   |   |   |
| Stock      Option Expense                                                                                                                  |   |                 |       |   |        |   |   |                          |   |   | 1,266                       |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   | 1,266 |   |   |   |   |   |
| Restricted      Stock Shares                                                                                                               |   |                 |       |   |        |   |   |                          |   |   | 1,761                       |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   | 1,761 |   |   |   |   |   |
| Purchase      of treasury stock                                                                                                            |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   | (3,596                         | )      |   |                |    |   |   |   | (3,596 | ) |   |   |   |   |
| Net      unrealized gain on AFS securities arising during the year (net of deferred      tax of $4,383)                                    |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                | 8,141   |   |   |   | 8,141 |   |   |   | 8,141 |   |
| Reclassification      adjustment for net gains on AFS securities included in net income (net of      tax of $2,285)                        |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                | (4,245  | ) |   |   | (4,245 | ) |   |   | (4,245 | ) |
| Reclassification      adjustment for OTTI  (net of tax of $555)                                                                  |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                | 1,032   |   |   |   | 1,032 |   |   |   | 1,032 |   |
| Pension,      other post retirement and postemployment benefit plan adjustments (net of      tax of $1,326)                                |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                | 2,083   |   |   |   | 2,083 |   |   |   | 2,083 |   |
| Comprehensive      income                                                                                                                  |   |                 |       |   |        |   |   |                          |   |   |                        |   |   |             |    |   |          |   |    |                                            |   |   |                           |   |   |                |    |   |   |   |   |   |   | $ | 24,100 |   |
| BALANCE,      DECEMBER 31, 2009                                                                                                            |   |                 | 82,264,457 |   |        | $      | 823    |                          |   | $      | 345,356                     |   |   | $                | (25,489 | )      |          | $      | 313,195 |                                            |   | $      | (3,596                         | )      |   | $                   | 6,712   |   |   | $ | 637,001 |   |   |   |   |   |

----

| BENEFICIAL      MUTUTAL BANCORP, INC. AND SUBSIDIAIRIES              |
|----------------------------------------------------------------------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS (Dollars in    thousands) |
| For      the Years Ended December 31, 2009, 2008 and2007             |

|                                                                                                                                                 |   | 2009   |     |   | 2008   |   |     | 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
| OPERATING      ACTIVITIES:                                                                                                                           |   |   |     |   |   |   |     |   |   |
|       Net      income (loss)                                                                                           |   | $      | 17,089   |   |   | $      | 16,546   |   |   | $ | (1,545 | ) |
|       Adjustment      to reconcile net income (loss) to net cash provided by operating      activities:                |   |   |     |   |   |   |     |   |   |   |   |   |
|           Contribution      of stock to The Beneficial Foundation                                  |   |   | -        |   |   |   | -        |   |   |   | 9,491 |   |
|           Provision      for loan losses                                                           |   |   | 15,697   |   |   |   | 18,901   |   |   |   | 2,470 |   |
|           Depreciation      and amortization                                                       |   |   | 6,042    |   |   |   | 5,578    |   |   |   | 4,563 |   |
|           Intangible      amortization                                                             |   |   | 3,555    |   |   |   | 5,213    |   |   |   | 3,434 |   |
|           Impairment      on investments                                                           |   |   | 1,587    |   |   |   | 3,216    |   |   |   | 1,192 |   |
|           Impairment      on other real estate owned                                               |   |   | 1,281    |   |   |   | 1,194    |   |   |   | - |   |
|           Impairment      on goodwill                                                              |   |   | 976      |   |   |   | -        |   |   |   | - |   |
|           Pension      Charge                                                                      |   |   | -        |   |   |   | (7,289   | )      |   |   | - |   |
|           Net      gain on sale of investments                                                     |   |   | (6,530   | )      |   |   | (757     | )      |   |   | (288 | ) |
|           Accretion      of discount                                                               |   |   | (2,086   | )      |   |   | (3,842   | )      |   |   | (2,487 | ) |
|           Amortization      of premium                                                             |   |   | 482      |   |   |   | 326      |   |   |   | 326 |   |
|           Origination      of loans held for sale                                                  |   |   | -        |   |   |   | -        |   |   |   | (2,664 | ) |
|           Proceeds      from sales of loans                                                        |   |   | -        |   |   |   | -        |   |   |   | 2,941 |   |
|           Deferred      income taxes                                                               |   |   | (6,275   | )      |   |   | (4,154   | )      |   |   | (10,648 | ) |
|           Net      loss from sales of premises and equipment                                       |   |   | 746      |   |   |   | 27       |   |   |   | 162 |   |
|           Amortization      of ESOP                                                                |   |   | 2,882    |   |   |   | 2,361    |   |   |   | - |   |
|           Stock      options and grants expense                                                    |   |   | 3,027    |   |   |   | -        |   |   |   | - |   |
|           Increase      in stock options and grants                                                |   |   | -        |   |   |   | 1,117    |   |   |   | - |   |
|           Increase      in bank owned life insurance                                               |   |   | (1,507   | )      |   |   | (1,445   | )      |   |   | (1,402 | ) |
|           Changes      in assets and liabilities that provided (used) cash:                        |   |   |     |   |   |   |     |   |   |   |   |   |
|      Purchases      of trading securities                                                                                   |   |   | (139,772 | )      |   |   | -        |   |   |   | - |   |
|            Proceeds      from sale of trading securities                                      |   |   | 107,947  |   |   |   | -        |   |   |   | - |   |
|            Accrued      interest receivable                                                   |   |   | (1,832   | )      |   |   | 546      |   |   |   | (216 | ) |
|            Accrued      interest payable                                                      |   |   | (1,223   | )      |   |   | (399     | )      |   |   | (266 | ) |
|            Income      taxes payable/receivable                                               |   |   | 644      |   |   |   | 943      |   |   |   | (2,912 | ) |
|            Other      liabilities                                                             |   |   | 28,316   |   |   |   | (7,921   | )      |   |   | 11,190 |   |
|            Other      assets                                                                  |   |   | 5,512    |   |   |   | (28,611  | )      |   |   | 1,872 |   |
|                       Net cash provided by operating activities      |   |   | 36,558   |   |   |   | 1,550    |   |   |   | 15,213 |   |
| INVESTING      ACTIVITIES:                                                                                                                           |   |   |     |   |   |   |     |   |   |   |   |   |
|       Net      cash paid in business combination                                                                       |   |   | -        |   |   |   | -        |   |   |   | (32,474 | ) |
|       Loans      originated or acquired                                                                                |   |   | (966,656 | )      |   |   | (884,612 | )      |   |   | (518,988 | ) |
|       Principal      repayment on loans                                                                                |   |   | 553,870  |   |   |   | 574,829  |   |   |   | 528,703 |   |
|       Purchases      of investment securities available for sale                                                       |   |   | (653,265 | )      |   |   | (518,492 | )      |   |   | (2,255,047 | ) |
|       Purchases      of investment securities held to maturity                                                         |   |   | (1,965   | )      |   |   | -        |   |   |   | - |   |
|       Net      sales (purchases) of money market fund                                                                  |   |   | 8,893    |   |   |   | (867     | )      |   |   | 43,798 |   |
|       Proceeds      from sales of loans                                                                                |   |   | 37,272   |   |   |   | -        |   |   |   | - |   |
|       Proceeds      from sales and maturities of investment securities available for      sale                         |   |   | 485,625  |   |   |   | 363,506  |   |   |   | 2,189,039 |   |
|       Proceeds      from maturities, calls or repayments of investment securities      HTM                             |   |   | 29,826   |   |   |   | 35,813   |   |   |   | 18,167 |   |
|       (Purchase)      Redemption of Federal Home Loan Bank stock                                                       |   |   | -        |   |   |   | (9,254   | )      |   |   | 2,707 |   |
|       Proceeds      from other real estate owned                                                                       |   |   | 1,052    |   |   |   | 1,644    |   |   |   | 2,796 |   |
|       Purchases      of premises and equipment                                                                         |   |   | (11,625  | )      |   |   | (8,465   | )      |   |   | (11,473 | ) |
|       Proceeds      from sale of premises and equipment                                                                |   |   | 388      |   |   |   | 35       |   |   |   | 370 |   |
|        (Purchases) proceeds from other investing activities, net                                                                                |   |   | (2,199   | )      |   |   | -        |   |   |   | 53 |   |
|                       Net cash used in investing activities          |   |   | (518,784 | )      |   |   | (445,863 | )      |   |   | (32,349 | ) |
| FINANCING      ACTIVITIES:                                                                                                                           |   |   |     |   |   |   |     |   |   |   |   |   |
|        Net      (decrease) increase in borrowed funds                                                             |   |   | (146,434 | )      |   |   | 172,932  |   |   |   | (23,769 | ) |
|        Net      increase (decrease) in checking, savings and demand    accounts                                   |   |   | 862,360  |   |   |   | 277,975  |   |   |   | (19,340 | ) |
|        Net      decrease in time deposits                                                                         |   |   | (94,792  | )      |   |   | (1,458   | )      |   |   | (103,922 | ) |
|        Purchase      of treasury stock                                                                            |   |   | (3,596   | )      |   |   | -        |   |   |   | - |   |
|        Purchase      of stock for share-based compensation plans                                                  |   |   | -        |   |   |   | (19,074  | )      |   |   | - |   |
|        Cash      dividend to parent company                                                                       |   |   | -        |   |   |   | -        |   |   |   | (252 | ) |
|        Proceeds      from stock issuance                                                                          |   |   | -        |   |   |   | -        |   |   |   | 228,697 |   |
|  Stock      issuance costs                                                                                                                      |   |   | -        |   |   |   | -        |   |   |   | 3,683 |   |
|        Loan      to employee stock ownership plan                                                                 |   |   | -        |   |   |   | -        |   |   |   | (30,708 | ) |
|                  Net      cash provided by financing activities |   |   | 617,538  |   |   |   | 430,375  |   |   |   | 54,389 |   |
| NET      INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                            |   |   | 135,312  |   |   |   | (13,938  | )      |   |   | 37,253 |   |
| CASH      AND CASH EQUIVALENTS, BEGINNING OF YEAR                                                                                                    |   |   | 44,389   |   |   |   | 58,327   |   |   |   | 21,074 |   |
| CASH      AND CASH EQUIVALENTS, END OF YEAR                                                                                                          |   | $      | 179,701  |   |   | $      | 44,389   |   |   | $ | 58,327 |   |
| SUPPLEMENTAL      DISCLOSURES OF CASH FLOW AND NON-CASH INFORMATION:                                                                                 |   |   |     |   |   |   |     |   |   |   |   |   |
| Cash      payments for interest                                                                                                                      |   | $      | 48,054   |   |   | $      | 99,707   |   |   | $ | 187,410 |   |
| Cash      payments of income taxes                                                                                                                   |   |   | 8,271    |   |   |   | 7,733    |   |   |   | 7,239 |   |
| Transfers      of loans to other real estate owned                                                                                                   |   |   | 3,230    |   |   |   | 786      |   |   |   | 295 |   |
| Issuance      of common stock for FMS Financial                                                                                                      |   |   | -        |   |   |   | -        |   |   |   | 119,152 |   |
| Fair      value of tangible assets acquired                                                                                                          |   |   | -        |   |   |   | -        |   |   |   | 1,073,387 |   |
| Goodwill      and identifiable intangible assets acquired                                                                                            |   |   | -        |   |   |   | -        |   |   |   | 134,332 |   |
| Liabilities      assumed and note issued                                                                                                             |   |   | -        |   |   |   | -        |   |   |   | 1,055,870 |   |
| Transfers      of bank branches to OREO                                                                                                              |   |   | 1,668    |   |   |   | -        |   |   |   | - |   |
|                                                                                                                                                 |   |   |     |   |   |   |     |   |   |   |   |
| See      accompanying notes to consolidated financial statements.                                                                                    |   |   |     |   |   |

----

----

| 1. | NATURE      OF OPERATIONS |
|----|---------------------------|

| 2.        | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES |
|----------------------------------------------|-------------------------------------------------|

----

----

----

----

----

----

| 3. | MINORITY      STOCK OFFERING AND MERGERS ANDACQUISITIONS |
|----|----------------------------------------------------------|

----

|   |                                                             |   | 2007   |       |
|--------|------------------------------------------------------------------|--------|--------|------------|
|   |                                                             |   |   |       |
|   | Total      interest income                                       |   | $      | 191,811    |   |
|   | Total      interest expense                                      |   |   | 88,064     |   |
|   | Net      interest income                                         |   |   | 103,747    |   |
|   | Provision      for loan losses                                   |   |   | 2,500      |   |
|   | Net      interest income after provision for loan losses         |   |   | 101,247    |   |
|   | Total      non-interest income                                   |   |   | 16,282     |   |
|   | Total      non-interest expense                                  |   |   | 123,651    |   |
|   |                                                             |   |   |       |   |
|   | (Loss)      Income before income taxes                           |   |   | (6,122     | ) |
|   |                                                             |   |   |       |   |
|   | Income      tax (benefit) expense                                |   |   | (3,934     | ) |
|   | Net      (loss) income                                           |   | $      | (2,188     | ) |
|   | Net      (loss) earnings per share – Basic and Diluted     |   | $      | (0.03      | ) |
|   | Average      common shares outstanding – Basic and Diluted |   |   | 79,113,729 |   |

----

|   |                                                          |   | 2007   |      |
|--------|---------------------------------------------------------------|--------|--------|-----------|
|   | Cash      and due from banks                                  |   | $      | 41,382    |   |
|   | Interest-bearing      deposits                                |   |   | 35        |   |
|   | Investment      securities available for sale                 |   |   | 579,018   |   |
|   | FHLB      stock                                               |   |   | 5,977     |   |
|   | Net      loans                                                |   |   | 438,002   |   |
|   | Premises      and equipment                                   |   |   | 41,512    |   |
|   | Core      deposit intangible                                  |   |   | 23,215    |   |
|   | Goodwill                                                      |   |   | 101,155   |   |
|   | Other      Assets                                             |   |   | 6,476     |   |
|   |      Total      assets acquired      |   |   | 1,236,772 |   |
|   |                                                          |   |   |      |   |
|   | Deposits                                                      |   |   | 910,371   |   |
|   | Repurchase      agreement                                     |   |   | 110,739   |   |
|   | Statutory      debenture                                      |   |   | 25,256    |   |
|   | Other      liabilities                                        |   |   | 7,392     |   |
|   |      Total      liabilities acquired |   |   | 1,053,758 |   |
|   |                                                          |   |   |      |   |
|   | Net      assets acquired                                      |   | $      | 183,014   |   |

| 4.                  EARNINGS PER SHARE |
|----------------------------------------------------------------------------------------------------|

----

|   |                                                            |   |                                 |       |
|--------|-----------------------------------------------------------------|--------|--------------------------------------|------------|
|   | (Dollars      in thousands, except share and per share amounts) |   | For      the Year Ended December 31, |       |
|   |                                                            |   | 2009                                 |       |   | 2008 |   |   | 2007 |   |
|   | Basic      and diluted earnings per share:                 |   |                                 |       |   |   |   |   |   |   |
|   | Net      income (loss)                                          |   | $                                    | 16,808     |   |   | $ | 16,546 |   |   | $ | (1,545 | ) |
|   |                                                            |   |                                 |       |   |   |   |   |   |   |   |   |   |
|   | Basic      weighted average common shares outstanding           |   |                                 | 77,693,082 |   |   |   | 78,702,419 |   |   |   | 61,374,792 |   |
|   |                                                            |   |                                 |       |   |   |   |   |   |   |   |   |   |
|   | Effect      of dilutive securities                              |   |                                 | 30,586     |   |   |   | - |   |   |   | - |   |
|   | Dilutive      weighted average shares outstanding               |   |                                 | 77,723,668 |   |   |   | 78,702,419 |   |   |   | 61,374,792 |   |
|   | Net      earnings (loss) per share                              |   |                                 |       |   |   |   |   |   |   |   |   |   |
|   |                                                            |   |                                 |       |   |   |   |   |   |   |   |   |   |
|   | Basic                                                           |   | $                                    | 0.22       |   |   | $ | 0.21 |   |   | $ | (0.03 | ) |
|   | Diluted                                                         |   | $                                    | 0.22       |   |   | $ | 0.21 |   |   | $ | (0.03 | ) |

| 5. | CASH      AND DUE FROM BANKS |
|----|------------------------------|

----

| 6. | INVESTMENT      SECURITIES |
|----|----------------------------|

|   | (Dollars      are in thousands)                            |   | Investment      Securities Available-for-Sale - 2009 |      |
|--------|------------------------------------------------------------|--------|------------------------------------------------------|-----------|
|   |                                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |
|   |                                                       |   |                                                 |      |   | Gross |   |   | Gross |   |   | Estimated |   |
|   |                                                       |   | Amortized                                            |      |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|   |                                                       |   | Cost                                                 |      |   | Gains |   |   | Losses |   |   | Value |   |
|   |                                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |
|   | Equity      securities                                     |   | $                                                    | 5,427     |   |   | $ | 871 |   |   | $ | 236 |   |   | $ | 6,062 |   |
|   | U.S.      Government Sponsored                             |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |    Enterprise      ("GSE") and Agency Notes |   |                                                 | 209,135   |   |   |   | 131 |   |   |   | 932 |   |   |   | 208,334 |   |
|   | GNMA      guaranteed mortgage certificates                 |   |                                                 | 10,214    |   |   |   | 180 |   |   |   | - |   |   |   | 10,394 |   |
|   | Collateralized      mortgage obligations                   |   |                                                 | 138,857   |   |   |   | 1,736 |   |   |   | 285 |   |   |   | 140,308 |   |
|   | Other      mortgage-backed securities                      |   |                                                 | 680,018   |   |   |   | 26,857 |   |   |   | 630 |   |   |   | 706,245 |   |
|   | Municipal      bonds                                       |   |                                                 | 188,980   |   |   |   | 1,287 |   |   |   | 310 |   |   |   | 189,957 |   |
|   | Pooled      trust preferred securities                     |   |                                                 | 21,379    |   |   |   | - |   |   |   | 2,582 |   |   |   | 18,797 |   |
|   | Money      market fund                                     |   |                                                 | 6,660     |   |   |   | 349 |   |   |   | - |   |   |   | 7,009 |   |
|   |                                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total                                                      |   | $                                                    | 1,260,670 |   |   | $ | 31,411 |   |   | $ | 4,975 |   |   | $ | 1,287,106 |   |
|   |                                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                       |   | Investment      Securities Held-to-Maturity - 2009   |      |
|   |                                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                       |   |                                                 |      |   |   | Gross |   |   | Gross |   |   | Estimated |   |
|   |                                                       |   | Amortized                                            |      |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|   |                                                       |   | Cost                                                 |      |   | Gains |   |   | Losses |   |   | Value |   |
|   |                                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | GNMA      guaranteed mortgage certificates                 |   | $                                                    | 685       |   |   | $ | - |   |   | $ | 30 |   |   | $ | 655 |   |
|   | Other      mortgage-backed securities                      |   |                                                 | 45,359    |   |   |   | 1,925 |   |   |   | - |   |   |   | 47,284 |   |
|   | Municipal      bonds                                       |   |                                                 | 1,465     |   |   |   | - |   |   |   | 52 |   |   |   | 1,413 |   |
|   | Foreign      bonds                                         |   |                                                 | 500       |   |   |   | 1 |   |   |   | - |   |   |   | 501 |   |
|   |                                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total                                                      |   | $                                                    | 48,009    |   |   | $ | 1,926 |   |   | $ | 82 |   |   | $ | 49,853 |   |

----

|   | (Dollars      are in thousands)            |   | Investment      Securities Available-for-Sale - 2008 |      |
|--------|--------------------------------------------|--------|------------------------------------------------------|-----------|
|   |                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |
|   |                                       |   |                                                 |      |   | Gross |   |   | Gross |   |   | Estimated |   |
|   |                                       |   | Amortized                                            |      |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|   |                                       |   | Cost                                                 |      |   | Gains |   |   | Losses |   |   | Value |   |
|   |                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |
|   | Equity      securities                     |   | $                                                    | 7,638     |   |   | $ | 108 |   |   | $ | - |   |   | $ | 7,746 |   |
|   | GSE      and Agency Notes                  |   |                                                 | 8,687     |   |   |   | 17 |   |   |   | 5 |   |   |   | 8,699 |   |
|   | GNMA      guaranteed mortgage certificates |   |                                                 | 12,796    |   |   |   | 3 |   |   |   | 294 |   |   |   | 12,505 |   |
|   | Collateralized      mortgage obligations   |   |                                                 | 177,300   |   |   |   | 1,222 |   |   |   | 2,149 |   |   |   | 176,373 |   |
|   | Other      mortgage-backed securities      |   |                                                 | 767,978   |   |   |   | 25,342 |   |   |   | 40 |   |   |   | 793,280 |   |
|   | Municipal      bonds                       |   |                                                 | 79,542    |   |   |   | 797 |   |   |   | 363 |   |   |   | 79,976 |   |
|   | Pooled      trust preferred securities     |   |                                                 | 25,113    |   |   |   | - |   |   |   | 5,785 |   |   |   | 19,328 |   |
|   | Corporate      bonds                       |   |                                                 | 125       |   |   |   | - |   |   |   |   |   |   |   | 125 |   |
|   | Foreign      bonds                         |   |                                                 | 500       |   |   |   | 1 |   |   |   |   |   |   |   | 501 |   |
|   | Money      market fund                     |   |                                                 | 15,553    |   |   |   | - |   |   |   | - |   |   |   | 15,553 |   |
|   |                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total                                      |   | $                                                    | 1,095,232 |   |   | $ | 27,490 |   |   | $ | 8,636 |   |   | $ | 1,114,086 |   |
|   |                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                       |   | Investment      Securities Held-to-Maturity - 2008   |      |
|   |                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                       |   |                                                 |      |   |   | Gross |   |   | Gross |   |   | Estimated |   |
|   |                                       |   | Amortized                                            |      |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|   |                                       |   | Cost                                                 |      |   | Gains |   |   | Losses |   |   | Value |   |
|   |                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | GSE      and Agency Notes                  |   | $                                                    | 7,500     |   |   | $ | 47 |   |   | $ | - |   |   | $ | 7,547 |   |
|   | GNMA      guaranteed mortgage certificates |   |                                                 | 728       |   |   |   | - |   |   |   | 29 |   |   |   | 699 |   |
|   | Other      mortgage-backed securities      |   |                                                 | 67,786    |   |   |   | 1,378 |   |   |   | 41 |   |   |   | 69,123 |   |
|   |                                       |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total                                      |   | $                                                    | 76,014    |   |   | $ | 1,425 |   |   | $ | 70 |   |   | $ | 77,369 |   |

----

| (Dollars      in thousands)                                        |   | At      December 31, 2009 |    |
|--------------------------------------------------------------------|--------|---------------------------|---------|
|                                                               |   | Less than 12 months       |    |   | 12 months or longer |   |   | Total |   |
|                                                               |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                      |    |   | Unrealized |   |   |   |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
|                                                               |   | Fair      Value           |    |   | Losses |   |   | Fair      Value |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |
| GSE      and Agency Notes                                          |   | $                         | 154,110 |   |   | $ | 932 |   |   | $ | - |   |   | $ | - |   |   | $ | 154,110 |   |   | $ | 932 |   |
| Other      mortgage-backed securities                              |   |                      | 82,220  |   |   |   | 630 |   |   |   | 655 |   |   |   | 30 |   |   |   | 82,875 |   |   |   | 660 |   |
| Municipal      and other bonds                                     |   |                      | 72,166  |   |   |   | 356 |   |   |   | 494 |   |   |   | 6 |   |   |   | 72,660 |   |   |   | 362 |   |
| Pooled      trust preferred securities                             |   |                      | -       |   |   |   | - |   |   |   | 18,797 |   |   |   | 2,582 |   |   |   | 18,797 |   |   |   | 2,582 |   |
| Collateralized      mortgage obligations                           |   |                      | 40,977  |   |   |   | 232 |   |   |   | 8,824 |   |   |   | 53 |   |   |   | 49,801 |   |   |   | 285 |   |
|       Subtotal,      debt securities |   |                      | 349,473 |   |   |   | 2,150 |   |   |   | 28,770 |   |   |   | 2,671 |   |   |   | 378,243 |   |   |   | 4,821 |   |
| Equity      securities                                             |   |                      | 2,264   |   |   |   | 236 |   |   |   | - |   |   |   | - |   |   |   | 2,264 |   |   |   | 236 |   |
| Mutual      Funds                                                  |   |                      | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      temporarily                                             |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    impaired      securities                         |   | $                         | 351,737 |   |   | $ | 2,386 |   |   | $ | 28,770 |   |   | $ | 2,671 |   |   | $ | 380,507 |   |   | $ | 5,057 |   |

| (Dollars      in thousands)                                        |   | At      December 31, 2008 |    |
|--------------------------------------------------------------------|--------|---------------------------|---------|
|                                                               |   | Less than 12 months       |    |   | 12 months or longer |   |   | Total |   |
|                                                               |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                      |    |   | Unrealized |   |   |   |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
|                                                               |   | Fair      Value           |    |   | Losses |   |   | Fair      Value |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |
| GSE      and Agency Notes                                          |   | $                         | 522     |   |   | $ | 5 |   |   | $ | - |   |   | $ | - |   |   | $ | 522 |   |   | $ | 5 |   |
| Other      mortgage-backed securities                              |   |                      | 33,551  |   |   |   | 375 |   |   |   | 699 |   |   |   | 29 |   |   |   | 34,250 |   |   |   | 404 |   |
| Municipal      bonds                                               |   |                      | 7,524   |   |   |   | 362 |   |   |   | 330 |   |   |   | 2 |   |   |   | 7,854 |   |   |   | 364 |   |
| Pooled      trust preferred securities                             |   |                      | 15,816  |   |   |   | 5,533 |   |   |   | 3,513 |   |   |   | 251 |   |   |   | 19,329 |   |   |   | 5,784 |   |
| Corporate      bonds                                               |   |                      | 125     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 125 |   |   |   | - |   |
| Collateralized      mortgage obligations                           |   |                      | 78,951  |   |   |   | 1,367 |   |   |   | 55,768 |   |   |   | 782 |   |   |   | 134,719 |   |   |   | 2,149 |   |
|       Subtotal,      debt securities |   |                      | 136,489 |   |   |   | 7,642 |   |   |   | 60,310 |   |   |   | 1,064 |   |   |   | 196,799 |   |   |   | 8,706 |   |
| Total      temporarily                                             |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    impaired      securities                         |   | $                         | 136,489 |   |   | $ | 7,642 |   |   | $ | 60,310 |   |   | $ | 1,064 |   |   | $ | 196,799 |   |   | $ | 8,706 |   |

----

----

| (Dollars      are in thousands)                               |   | 2009      |      |   | 2008            |   |
|---------------------------------------------------------------|--------|-----------|-----------|--------|-----------------|--------|
|                                                          |   | Amortized |      |   | Estimated       |   |   | Amortized |   |   | Estimated |   |
|                                                          |   | Cost      |      |   | Fair      Value |   |   | Cost |   |   | Fair      Value |   |
|                                                          |   |      |      |   |            |   |   |   |   |   |   |   |
| Available-for-sale:                                           |   |      |      |   |            |   |   |   |   |   |   |   |
|    Due      in one year or less                |   | $         | 80,560    |   |            | $      | 80,685 |   |   | $ | 52,143 |   |   | $ | 52,345 |   |
|    Due      after one year through five years  |   |      | 28,684    |   |            |   | 29,029 |   |   |   | 13,605 |   |   |   | 13,739 |   |
|    Due      after five years through ten years |   |      | 295,932   |   |            |   | 296,355 |   |   |   | 93,668 |   |   |   | 93,888 |   |
|    Due      after ten years                    |   |      | 153,175   |   |            |   | 151,326 |   |   |   | 131,851 |   |   |   | 125,030 |   |
|    Mortgage-backed      securities             |   |      | 690,232   |   |            |   | 716,640 |   |   |   | 780,774 |   |   |   | 805,785 |   |
|                                                          |   |      |      |   |            |   |   |   |   |   |   |   |   |   |   |   |
|    Total                                       |   | $         | 1,248,583 |   |            | $      | 1,274,035 |   |   | $ | 1,072,041 |   |   | $ | 1,090,787 |   |
|                                                          |   |      |      |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Held-to-maturity:                                             |   |      |      |   |            |   |   |   |   |   |   |   |   |   |   |   |
|    Due      in one year or less                |   | $         | 135       |   |            | $      | 134 |   |   | $ | 7,500 |   |   | $ | 7,547 |   |
|    Due      after one year through five years  |   |      | 960       |   |            |   | 945 |   |   |   | - |   |   |   | - |   |
|    Due      after five years through ten years |   |      | 615       |   |            |   | 591 |   |   |   | - |   |   |   | - |   |
|    Due      after ten years                    |   |      | 255       |   |            |   | 244 |   |   |   | - |   |   |   | - |   |
|    Mortgage-backed      securities             |   |      | 46,044    |   |            |   | 47,939 |   |   |   | 68,514 |   |   |   | 69,822 |   |
|                                                          |   |      |      |   |            |   |   |   |   |   |   |   |   |   |   |   |
|    Total                                       |   | $         | 48,009    |   |            | $      | 49,853 |   |   | $ | 76,014 |   |   | $ | 77,369 |   |

----

| 7. | LOANS |
|----|-------|

----

|   | (Dollars      are in thousands)                                                 |   |   |      |   |   |   |
|--------|---------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|   |                                                                            |   | 2009   |      |   | 2008   |   |
|   | Real      estate loans:                                                         |   |   |      |   |   |   |
|   |    One-to-four      family                                       |   | $      | 648,465   |   |   | $      | 508,097 |   |
|   |    Commercial      real estate                                   |   |   | 783,043   |   |   |   | 787,748 |   |
|   |    Residential      construction                                 |   |   | 11,938    |   |   |   | 6,055 |   |
|   |         Total      real estate loans    |   |   | 1,443,446 |   |   |   | 1,301,900 |   |
|   |                                                                            |   |   |      |   |   |   |   |   |
|   | Commercial      business loans                                                  |   |   | 524,544   |   |   |   | 320,640 |   |
|   |                                                                            |   |   |      |   |   |   |   |   |
|   | Consumer      loans:                                                            |   |   |      |   |   |   |   |   |
|   |    Home      equity loans and lines                              |   |   |      |   |   |   |   |   |
|   |      of      credit                                    |   |   | 313,697   |   |   |   | 362,381 |   |
|   |    Auto      loans                                               |   |   | 140,196   |   |   |   | 142,097 |   |
|   |    Other      consumer loans                                     |   |   | 366,524   |   |   |   | 293,106 |   |
|   |          Total      consumer loans |   |   | 820,417   |   |   |   | 797,584 |   |
|   |          Total      loans          |   |   | 2,788,407 |   |   |   | 2,420,124 |   |
|   |                                                                            |   |   |      |   |   |   |   |   |
|   | Net      deferred loan costs                                                    |   |   | 1,712     |   |   |   | 4,458 |   |
|   | Allowance      for loan losses                                                  |   |   | (45,855   | )      |   |   | (36,905 | ) |
|   |          Loans,      net           |   | $      | 2,744,264 |   |   | $      | 2,387,677 |   |

|   | (Dollars      are in thousands) |   |   |   |   |   |   |   |   |   |
|--------|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                            |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|   |                            |   |   |   |   |   |   |   |   |   |
|   | Balance,      beginning of year |   | $      | 36,905 |   |   | $      | 23,341 |   |   | $ | 17,368 |   |
|   | Provision      for loan losses  |   |   | 15,697 |   |   |   | 18,901 |   |   |   | 2,470 |   |
|   | Allowance      purchased        |   |   | -      |   |   |   | -      |   |   |   | 5,015 |   |
|   | Charge-offs                     |   |   | (7,703 | )      |   |   | (5,963 | )      |   |   | (2,391 | ) |
|   | Recoveries                      |   |   | 956    |   |   |   | 626    |   |   |   | 879 |   |
|   |                            |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance,      end of year       |   | $      | 45,855 |   |   | $      | 36,905 |   |   | $ | 23,341 |   |

----

|   |                                                                                                   |   | December      31,2009 |         |   | December      31,2008 |   |
|--------|--------------------------------------------------------------------------------------------------------|--------|-----------------------|--------------|--------|-----------------------|--------|
|   | Impaired      loans with related allowance for loan losses calculated under FASB ASC      Topic 310    |   | $                     | 30,473       |   |                  | $      | 14,079 |   |
|   | Impaired      loans with no related allowance for loan losses calculated under FASB ASC      Topic 310 |   |                  |  41,414 |   |                  |   |  5,138 |   |
|   |           Total      impaired loans                  |   | $                     | 71,887       |   |                  | $      | 19,217 |   |
|   |                                                                                                   |   |                  |         |   |                  |   |   |   |
|   | Valuation      allowance related to impaired loans                                                     |   | $                     | 15,878       |   |                  | $      | 8,707 |   |
|   |                                                                                                   |   |                  |         |   |                  |   |   |   |

|   |                                                         |   | Year      Ended December 31, |   |
|--------|--------------------------------------------------------------|--------|------------------------------|--------|
|   |                                                         |   | 2009                         |   |   | 2008 |   |
|   | Average      impaired loans                                  |   | $                            | 55,326 |   |   | $ | 9,877 |   |
|   | Interest      income recognized on impaired loans            |   |                         | 166    |   |   |   | 134 |   |
|   | Cash      basis interest income recognized on impaired loans |   |                         | 64     |   |   |   | 353 |   |
|   |                                                         |   |                         |   |   |   |   |   |   |

| 8. | ACCRUED      INTEREST RECEIVABLE |
|----|----------------------------------|

| (Dollars      in thousands)            |   | 2009   |   |   | 2008            |   |
|----------------------------------------|--------|--------|--------|--------|-----------------|--------|
|                                   |   | Amount |   |   | %      of Total |   |   | Amount |   |   | %      of Total |   |
|                                   |   |   |   |   |            |   |   |   |   |   |   |   |
| Interest-Bearing      Deposits         |   | $      | 24     |   |            |   | 0.12 | % |   | $ | - |   |   |   | 0.00 | % |
|                                   |   |   |   |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Investment      Securities             |   |   | 6,144  |   |            |   | 31.71 | % |   |   | 5,350 |   |   |   | 30.50 | % |
|                                   |   |   |   |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                  |   |   | 13,207 |   |            |   | 68.17 | % |   |   | 12,193 |   |   |   | 69.50 | % |
|                                   |   |   |   |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Total      Accrued Interest Receivable |   | $      | 19,375 |   |            |   | 100.00 | % |   | $ | 17,543 |   |   |   | 100.00 | % |

----

| 9. | PREMISES      AND EQUIPMENT |
|----|-----------------------------|

| (Dollars      in thousands)                    |   | 2009   |    |   | 2008   |   |
|------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                           |   |   |    |   |   |   |
| Land                                           |   | $      | 15,533  |   |   | $      | 16,030 |   |
| Bank      premises                             |   |   | 53,042  |   |   |   | 51,854 |   |
| Furniture,      fixtures and equipment         |   |   | 23,999  |   |   |   | 24,125 |   |
| Leasehold      improvements                    |   |   | 9,397   |   |   |   | 10,629 |   |
| Construction      in progress                  |   |   | 6,804   |   |   |   | 2,022 |   |
|                                           |   |   |    |   |   |   |   |   |
| Total                                          |   |   | 108,775 |   |   |   | 104,660 |   |
| Accumulated      depreciation and amortization |   |   | (27,520 | )      |   |   | (26,170 | ) |
|                                           |   |   |    |   |   |   |   |   |
| Total                                          |   | $      | 81,255  |   |   | $      | 78,490 |   |

| 10. | GOODWILL      AND OTHER INTANGIBLES |
|-----|-------------------------------------|

----

|   |   |
|--------|--------|

|   | (Dollars      in thousands)                                                          |   | Goodwill |    |   | Core      Deposit Intangible |   |   | Customer      Relationshipsand      other |   |
|--------|--------------------------------------------------------------------------------------|--------|----------|---------|--------|------------------------------|--------|--------|-------------------------------------------|--------|
|   | Balances      at December 31, 2007                                                   |   | $        | 110,335 |   |                         | $      | 20,294 |                                      |   | $ | 8,905 |   |
|   | Adjustments                                                                          |   |     |    |   |                         |   |   |                                      |   |   |   |   |
|   |        FMS      Financial Corporation acquisition |   |     | 1,106   |   |                         |   | -      |                                      |   |   | - |   |
|   |        CLA      acquisition                       |   |     | 21      |   |                         |   | -      |                                      |   |   | - |   |
|   |        Amortization                               |   |     | -       |   |                         |   | (4,137 | )                                         |   |   | (1,077 | ) |
|   | Balance      at December 31, 2008                                                    |   | $        | 111,462 |   |                         | $      | 16,157 |                                      |   | $ | 7,828 |   |
|   | Adjustments                                                                          |   |     |    |   |                         |   |   |                                      |   |   |   |   |
|   |        Impairment                                 |   |     | (976    | )      |                         |   | -      |                                      |   |   | - |   |
|   |        Amortization                               |   |     | -       |   |                         |   | (2,580 | )                                         |   |   | (975 | ) |
|   | Balance      at December 31, 2009                                                    |   | $        | 110,486 |   |                         | $      | 13,577 |                                      |   | $ | 6,853 |   |

|   |                                                  |   | 2009   |   |   | 2008                    |   |
|--------|-------------------------------------------------------|--------|--------|--------|--------|-------------------------|--------|
|   | (Dollars      in thousands)                           |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                  |   | Gross  |   |   | AccumulatedAmortization |   | Net |   |   | Gross |   |   | AccumulatedAmortization |   | Net |   |
|   | Amortizing      Intangibles:                          |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Core      Deposits                                    |   | $      | 23,215 |   |                    | $      | (9,638 | ) |   | $ | 13,577 |   |   | $ | 23,215 |   |   | $ | (7,058 | ) |   | $ | 16,157 |   |
|   | Customer      Relationships  and      Other |   |   | 10,251 |   |                    |   | (3,398 | ) |   |   | 6,853 |   |   |   | 10,251 |   |   |   | (2,423 | ) |   |   | 7,828 |   |
|   |      Total      Amortizing   |   | $      | 33,466 |   |                    | $      | (13,036 | ) |   | $ | 20,430 |   |   | $ | 33,466 |   |   | $ | (9,481 | ) |   | $ | 23,985 |   |

| Year                     |   | Expense |   |
|--------------------------|--------|---------|--------|
| 2010                     |   | $       | 3,511  |   |
| 2011                     |   |    | 3,449  |   |
| 2012                     |   |    | 2,830  |   |
| 2013                     |   |    | 2,198  |   |
| 2014                     |   |    | 1,966  |   |
| 2015      and thereafter |   |    | 6,476  |   |

----

| 11. | OTHER      ASSETS |
|-----|-------------------|

| (Dollars      in thousands)                                                             |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                    |   | 2009   |   |   | 2008   |   |
| Unconsolidated      investments in affordable housing and other  partnerships |   | $      | 5,659  |   |   | $      | 6,444 |   |
| Cash      surrender value of life insurance                                             |   |   | 17,107 |   |   |   | 15,046 |   |
| Prepaid      assets                                                                     |   |   | 20,698 |   |   |   | 2,000 |   |
| Net      deferred tax asset                                                             |   |   | 20,609 |   |   |   | 18,496 |   |
| Other      real estate                                                                  |   |   | 9,061  |   |   |   | 6,267 |   |
| All      other assets                                                                   |   |   | 17,670 |   |   |   | 41,233 |   |
| Total      other assets                                                                 |   | $      | 90,804 |   |   | $      | 89,486 |   |

| 12. | DEPOSITS |
|-----|----------|

|   | (Dollars      in thousands) |   |   |    |   |   |   |
|--------|-----------------------------|--------|--------|---------|--------|--------|--------|
|   |                        |   | 2009   |    |   | 2008   |   |
|   |                        |   |   |    |   |   |   |
|   | 0      to 6 months          |   | $      | 545,261 |   |   | $      | 493,514 |   |
|   | 7      to 12 months         |   |   | 244,367 |   |   |   | 209,164 |   |
|   | 13      to 24 months        |   |   | 97,585  |   |   |   | 274,880 |   |
|   | Over      25 months         |   |   | 58,839  |   |   |   | 63,286 |   |
|   |                        |   |   |    |   |   |   |   |   |
|   |                        |   | $      | 946,052 |   |   | $      | 1,040,844 |   |

|   | (Dollars      in thousands)                             |   |   |      |   |            |   |   |   |   |   |            |   |
|--------|---------------------------------------------------------|--------|--------|-----------|--------|-----------------|--------|--------|--------|--------|--------|-----------------|--------|
|   |                                                    |   |   |      |   | %      of total |   |   |   |   |   | %      of total |   |
|   |                                                    |   | 2009   |      |   | assets          |   |   | 2008   |   |   | assets          |   |
|   |                                                    |   |   |      |   |            |   |   |   |   |   |            |   |
|   | Non-interest      bearing deposits                      |   | $      | 242,412   |   |            |   | 5.19   | %      |   | $      | 226,382         |   |   |   | 5.66 | % |
|   | Interest-earning      checking accounts                 |   |   | 1,122,515 |   |            |   | 24.02  | %      |   |   | 546,133         |   |   |   | 13.65 | % |
|   | Money      market accounts                              |   |   | 665,757   |   |            |   | 14.25  | %      |   |   | 534,012         |   |   |   | 13.34 | % |
|   | Savings      accounts                                   |   |   | 532,511   |   |            |   | 11.39  | %      |   |   | 394,308         |   |   |   | 9.85 | % |
|   | Time      deposits                                      |   |   | 946,052   |   |            |   | 20.24  | %      |   |   | 1,040,844       |   |   |   | 26.01 | % |
|   |                                                    |   |   |      |   |            |   |   |   |   |   |            |   |   |   |   |   |
|   |       Total      deposits |   | $      | 3,509,247 |   |            |   | 75.09  | %      |   | $      | 2,741,679       |   |   |   | 68.51 | % |

----

| 13. | BORROWED      FUNDS |
|-----|---------------------|

| (Dollars      in thousands)                                                                                                      |   |              |    |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|--------|--------|
|                                                                                                                             |   | December      31, |    |
|                                                                                                                             |   | 2009              |    |   | 2008   |   |
|                                                                                                                             |   |              |    |   |   |   |
| Federal      Funds purchased                                                                                                     |   | $                 | -       |   |   | $      | 40,000 |   |
| FHLB      advances                                                                                                               |   |              | 169,750 |   |   |   | 174,750 |   |
| Repurchase      agreements                                                                                                       |   |              | 235,000 |   |   |   | 240,177 |   |
| Federal      Reserve overnight borrowings                                                                                        |   |              | -       |   |   |   | 96,250 |   |
| Statutory      trust debenture                                                                                                   |   |              | 25,299  |   |   |   | 25,282 |   |
| Other                                                                                                                            |   |              | 3,571   |   |   |   | 3,595 |   |
|   Total      borrowings                                                                                                |   | $                 | 433,620 |   |   | $      | 580,054 |   |
|                                                                                                                             |   |              |    |   |   |   |   |   |
| Advances      from the FHLB bear fixed interest rates with remaining periods until      maturity are summarized      as follows: |   |
|                                                                                                                             |   |              |    |   |   |   |   |   |
|                                                                                                                             |   | December      31, |    |
|                                                                                                                             |   |              | 2009    |   |   |   | 2008 |   |
|                                                                                                                             |   |              |    |   |   |   |   |   |
| Due      in one year or less                                                                                                     |   | $                 | 56,750  |   |   | $      | 5,000 |   |
| Due      after one year through five years                                                                                       |   |              | 93,000  |   |   |   | 119,750 |   |
| Due      after five years through ten years                                                                                      |   |              | 20,000  |   |   |   | 50,000 |   |
|   Total                                                                                                                |   | $                 | 169,750 |   |   | $      | 174,750 |   |
|                                                                                                                             |   |              |    |   |   |   |   |   |
| Repurchase agreements      that bear fixed interest rates with remaining periods until maturity are      summarized as follows:  |   |
|                                                                                                                             |   |              |    |   |   |   |   |   |

|                                        |   | December      31, |    |
|---------------------------------------------|--------|-------------------|---------|
|                                        |   | 2009              |    |   | 2008 |   |
|                                        |   |              |    |   |   |   |
| Due      in one year or less                |   | $                 | 100,000 |   |   | $ | 5,177 |   |
| Due      after one year through five years  |   |              | 135,000 |   |   |   | 205,000 |   |
| Due      after five years through ten years |   |              | -       |   |   |   | 30,000 |   |
|   Total                           |   | $                 | 235,000 |   |   | $ | 240,177 |   |

|                                                                                   |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Weighted      average interest rate during period:                                     |   |   |   |   |   |   |
|     Federal      Home Loan Bank advances                           |   |   | 4.13   | %      |   |   | 4.34 | % |
|     Repurchase      agreements                                     |   |   | 4.38   |   |   |   | 4.38 |   |
|     Federal      Home Loan Bank overnight borrowings               |   |   | -      |   |   |   | 1.04 |   |
|     Federal      Reserve Bank of Philadelphia overnight borrowings |   |   | 0.50   |   |   |   | 0.50 |   |
|     Statutory      Trust Debenture                                 |   |   | 2.71   |   |   |   | 5.04 |   |
|     Other                                                          |   |   | 3.14   |   |   |   | 2.36 |   |

----

| 14. | REGULATORY      CAPITAL REQUIREMENTS |
|-----|--------------------------------------|

----

|   | (Dollars      in thousands)                   |   |                |    |   |                   |   |   |                         |   |   |    |   |   | To      Be Well Capitalized |   |
|--------|-----------------------------------------------|--------|---------------------|---------|--------|------------------------|--------|--------|------------------------------|--------|--------|---------|--------|--------|-----------------------------|--------|
|   |                                          |   |                |    |   | For      Capital       |   |   | Under      Prompt Corrective |   |
|   |                                          |   | Actual              |    |   | Adequacy      Purposes |   |   | Action      Provisions       |   |
|   |                                          |   | Capital      Amount |    |   | Ratio                  |   |   | Capital      Amount          |   |   | Ratio   |   |   | Capital      Amount         |   |   | Ratio |   |
|   |                                          |   |                |    |   |                   |   |   |                         |   |   |    |   |   |                        |   |   |
|   | As      of December 31, 2009:                 |   |                |    |   |                   |   |   |                         |   |   |    |   |   |                        |   |   |
|   | Tier      1 Capital (to average assets)       |   | $                   | 439,865 |   |                   |   | 9.81   | %                            |   | $      | 134,500 |   |   |                        | 3.00   | % |   | $ | 224,200 |   |   |   | 5.00 | % |
|   | Tier      1 Capital (to risk weighted assets) |   |                | 439,865 |   |                   |   | 16.71  | %                            |   |   | 105,300 |   |   |                        | 4.00   | % |   |   | 157,900 |   |   |   | 6.00 | % |
|   | Total      Capital (to risk weighted assets)  |   |                | 473,090 |   |                   |   | 17.98  | %                            |   |   | 210,500 |   |   |                        | 8.00   | % |   |   | 263,200 |   |   |   | 10.00 | % |
|   |                                          |   |                |    |   |                   |   |   |                         |   |   |    |   |   |                        |   |   |   |   |   |   |   |   |   |   |
|   | As      of December 31, 2008:                 |   |                |    |   |                   |   |   |                         |   |   |    |   |   |                        |   |   |   |   |   |   |   |
|   | Tier      1 Capital (to average assets)       |   | $                   | 421,665 |   |                   |   | 11.24  | %                            |   | $      | 112,523 |   |   |                        | 3.00   | % |   | $ | 187,538 |   |   |   | 5.00 | % |
|   | Tier      1 Capital (to risk weighted assets) |   |                | 421,665 |   |                   |   | 17.78  | %                            |   |   | 94,866  |   |   |                        | 4.00   | % |   |   | 142,300 |   |   |   | 6.00 | % |
|   | Total      Capital (to risk weighted assets)  |   |                | 451,413 |   |                   |   | 19.03  | %                            |   |   | 189,733 |   |   |                        | 8.00   | % |   |   | 237,166 |   |   |   | 10.00 | % |

| 15. | INCOME      TAXES |
|-----|-------------------|

| (Dollars      in thousands)                   |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                          |   |   |   |   |   |   |   |   |   |
| Current      federal taxes                    |   | $      | 6,347  |   |   | $      | 7,550  |   |   | $ | 5,765 |   |
| Current      state and local taxes            |   |   | 1,465  |   |   |   | 469    |   |   |   | 418 |   |
| Deferred      federal and state taxes benefit |   |   | (6,275 | )      |   |   | (4,154 | )      |   |   | (10,648 | ) |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   | $      | 1,537  |   |   | $      | 3,865  |   |   | $ | (4,465 | ) |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (Dollars      in thousands)                        |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax      at statutory rate                         |   | $      | 6,519  |   |   |   | 35.00  | %      |   | $ | 7,144 |   |   |   | 35.00 | % |   | $ | (2,104 | ) |   |   | (35.00 | )% |
| Increase      (reduction) in taxes resulting from: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Tax-exempt      income                 |   |   | (1,773 | )      |   |   | (9.52  | )      |   |   | (1,281 | ) |   |   | (6.30 | ) |   |   | (1,003 | ) |   |   | (16.70 | ) |
|   State      and local income tax        |   |   | 453    |   |   |   | 2.43   |   |   |   | (431 | ) |   |   | (2.10 | ) |   |   | 272 |   |   |   | 4.50 |   |
|   Employee      benefit programs         |   |   | (166   | )      |   |   | (0.89  | )      |   |   | (616 | ) |   |   | (3.00 | ) |   |   | 38 |   |   |   | 0.70 |   |
|   Federal      income tax credits        |   |   | (2,441 | )      |   |   | (13.11 | )      |   |   | (1,879 | ) |   |   | (9.20 | ) |   |   | (1,681 | ) |   |   | (28.00 | ) |
|   Valuation      allowances:             |   |   | (591   | )      |   |   | (3.17  | )      |   |   | 1,094 |   |   |   | 5.40 |   |   |   | - |   |   |   | - |   |
|   Other                                  |   |   | (464   | )      |   |   | 2.49   |   |   |   | (166 | ) |   |   | (0.80 | ) |   |   | 13 |   |   |   | 0.20 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                              |   | $      | 1,537  |   |   |   | 8.25   | %      |   | $ | 3,865 |   |   |   | 19.00 | % |   | $ | (4,465 | ) |   |   | (74.30 | )% |

| (Dollars      in thousands)                  |   | 2009   |   |   | 2008   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                         |   |   |   |   |   |   |
| Deferred      tax assets:                    |   |   |   |   |   |   |
| Reserve      for bad debts                   |   | $      | 16,888 |   |   | $      | 13,318 |   |
| Pension      liabilities                     |   |   | 7,183  |   |   |   | 7,470 |   |
| Postretirement      benefits                 |   |   | 4,197  |   |   |   | 4,292 |   |
| Contribution      carryforward               |   |   | 924    |   |   |   | 1,949 |   |
| Purchase      accounting                     |   |   | 6,627  |   |   |   | 6,404 |   |
| Deferred      compensation                   |   |   | 2,343  |   |   |   | 1,293 |   |
| Lease      accounting                        |   |   | 561    |   |   |   | 593 |   |
| Impairment      of securities                |   |   | 1,097  |   |   |   | 1,667 |   |
| State      net operating loss carryover      |   |   | 894    |   |   |   | 789 |   |
| Other                                        |   |   | 376    |   |   |   | 463 |   |
|                                         |   |   | 41,090 |   |   |   | 38,238 |   |
| Less:      Valuation Allowance               |   |   | (1,373 | )      |   |   | (1,964 | ) |
| Total                                        |   |   | 39,717 |   |   |   | 36,274 |   |
| Deferred      tax liabilities:               |   |   |   |   |   |   |   |   |
| Available-for-sale      securities           |   |   | 9,252  |   |   |   | 6,599 |   |
| Property                                     |   |   | 3,110  |   |   |   | 3,292 |   |
| Intangibles                                  |   |   | 5,149  |   |   |   | 6,004 |   |
| Prepaid      expenses and deferred loan fees |   |   | 1,012  |   |   |   | 1,284 |   |
| Mortgage      servicing rights               |   |   | 109    |   |   |   | 140 |   |
| Other                                        |   |   | 476    |   |   |   | 459 |   |
|                                         |   |   |   |   |   |   |   |   |
| Total                                        |   |   | 19,108 |   |   |   | 17,778 |   |
|                                         |   |   |   |   |   |   |   |   |
| Net      deferred tax asset                  |   | $      | 20,609 |   |   | $      | 18,496 |   |

----

|   | (Dollars      in thousands)                                                |   | 2009   |   |   | 2008   |   |
|--------|----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|   |                                                                       |   |   |   |   |   |   |
|   | Unrecognized      tax liabilities January 1                                |   | $      | -      |   |   | $      | - |   |
|   | Increase/(Decrease)      as a result of tax position taken in prior year   |   |   | 50     |   |   |   | - |   |
|   | Increase/(Decrease)      as a result of tax position taken during the year |   |   | -      |   |   |   | - |   |
|   | Decreases      realting to settlemtents with taxing authorities            |   |   | -      |   |   |   | - |   |
|   | Reductions      as a result of a lapse of applicable statute of limitation |   |   | -      |   |   |   | - |   |
|   |                                                                       |   |   |   |   |   |   |   |   |
|   | Unrecognized      tax liabilities at December 31                           |   | $      | 50     |   |   | $      | - |   |

| 16. | PENSION      AND POSTRETIREMENT BENEFIT PLANS |
|-----|-----------------------------------------------|

----

|   | (Dollars      in thousands)                                                                                                         |   |                  |   |   |       |   |    | Postretirement |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|------------|--------|---------|----------------|--------|
|   |                                                                                                                                |   | Pension      Benefits |   |   | Benefits   |   |
|   | Change      in Benefit Obligation                                                                                                   |   | 2009                  |   |   | 2008       |   |    | 2009           |   |   | 2008 |   |
|   | Benefit      obligation at beginning of year                                                                                        |   | $                     | 58,180 |   |       | $      | 77,795  |           |   | $ | 22,648 |   |   | $ | 11,950 |   |
|   | Adoption      of EITF 06-4 for Split Dollar Life Insurance                                                                          |   |                  | -      |   |       |   | -       |           |   |   | - |   |   |   | 11,806 |   |
|   | Service      cost                                                                                                                   |   |                  | -      |   |       |   | 1,194   |           |   |   | 171 |   |   |   | 173 |   |
|   | Interest      cost                                                                                                                  |   |                  | 3,784  |   |       |   | 4,228   |           |   |   | 1,495 |   |   |   | 1,454 |   |
|   | Curtailment                                                                                                                         |   |                  | -      |   |       |   | (19,218 | )              |   |   | - |   |   |   | - |   |
|   | Participants’      contributions                                                                                              |   |                  | -      |   |       |   | -       |           |   |   | 84 |   |   |   | 51 |   |
|   | Plan      Amendment                                                                                                                 |   |                  | -      |   |       |   | -       |           |   |   | - |   |   |   | (321 | ) |
|   | Actuarial      (gain)/loss                                                                                                          |   |                  | 6,327  |   |       |   | (2,783  | )              |   |   | 1,440 |   |   |   | (554 | ) |
|   | Benefits      paid                                                                                                                  |   |                  | (2,865 | )      |       |   | (3,036  | )              |   |   | (1,904 | ) |   |   | (1,911 | ) |
|   | Benefit      obligation at end of year                                                                                              |   | $                     | 65,426 |   |       | $      | 58,180  |           |   | $ | 23,934 |   |   | $ | 22,648 |   |
|   |                                                                                                                                |   |                  |   |   |       |   |    |           |   |   |   |   |   |   |   |   |
|   | Change      in Assets                                                                                                               |   |                  |   |   |       |   |    |           |   |   |   |   |   |   |   |   |
|   | Fair      value of assets at beginning of year                                                                                      |   | $                     | 39,566 |   |       | $      | 57,326  |           |   | $ | - |   |   | $ | - |   |
|   | Actual      return on assets                                                                                                        |   |                  | 8,815  |   |       |   | (14,916 | )              |   |   | - |   |   |   | - |   |
|   | Employer      contribution                                                                                                          |   |                  | 1,828  |   |       |   | 564     |           |   |   | 1,821 |   |   |   | 1,860 |   |
|   | Participants’      contributions                                                                                              |   |                  | -      |   |       |   | -       |           |   |   | 83 |   |   |   | 51 |   |
|   | Expense                                                                                                                             |   |                  | (302   | )      |       |   | (372    | )              |   |   | - |   |   |   | - |   |
|   | Benefits      paid                                                                                                                  |   |                  | (2,865 | )      |       |   | (3,036  | )              |   |   | (1,904 | ) |   |   | (1,911 | ) |
|   | Fair      value of assets at end of year                                                                                            |   | $                     | 47,042 |   |       | $      | 39,566  |           |   | $ | - |   |   | $ | - |   |
|   |                                                                                                                                |   |                  |   |   |       |   |    |           |   |   |   |   |   |   |   |   |
|   | The      following table presents a reconciliation of the funded status of the      pension benefits at December 31, 2009 and 2008. |   |
|   |                                                                                                                                |   |                  |   |   |       |   |    |           |   |   |   |   |   |   |   |   |
|   |                                                                                                                                |   |  2009            |   |   |  2008 |   |    |           |   |   |   |   |   |   |
|   | Projected      benefit obligation                                                                                                   |   | $                     | 65,426 |   |       | $      | 58,180  |           |   |   |   |   |   |   |   |   |
|   | Fair      value of plan assets                                                                                                      |   |                  | 47,042 |   |       |   | 39,566  |           |   |   |   |   |   |   |   |   |
|   | Accrued      pension cost                                                                                                           |   | $                     | 18,384 |   |       | $      | 18,614  |           |   |   |   |   |   |   |   |   |

|   | Amounts      recognized in accumulated other comprehensive income at December 31,      2009: |   |
|--------|----------------------------------------------------------------------------------------------|--------|
|   |                                                                                         |   |   |   |   |   |   |
|   |                                                                                         |   | Pension |   |   | Postretirement |   |
|   | (Dollars      in thousands)                                                                  |   | Benefits |   |   | Benefits |   |
|   |                                                                                         |   |   |   |   |   |   |
|   | Net      loss                                                                                |   | $ | 10,998 |   |   | $ | 1,617 |   |
|   | Prior      service cost                                                                      |   |   | - |   |   |   | 137 |   |
|   | Transition      obligation                                                                   |   |   | - |   |   |   | 532 |   |
|   |                                                                                         |   |   |   |   |   |   |   |   |

----

|   |                                                    |   | Pension      Benefits |   |   | Postretirement      Benefits |   |
|--------|---------------------------------------------------------|--------|-----------------------|--------|--------|------------------------------|--------|
|   | Beneficial      Bank Plans                              |   | 2009                  |   |   | 2008                         |   |   | 2007 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|   | Discount      rate for periodic pension cost            |   |                  | 6.50   | %      |                         |   | 6.50 | % |   |   | 6.00 | % |   |   | 6.90 | % |   |   | 6.50 | % |   |   | 6.00 | % |
|   | Discount      rate for benefit obligation               |   |                  | 6.05   | %      |                         |   | 6.50 | % |   |   | 6.50 | % |   |   | 6.05 | % |   |   | 6.90 | % |   |   | 6.50 | % |
|   | Rate      of increase in compensation levels            |   |                  |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |   and      social security wage base          |   |                  |   |   |                         |   | 5.50 | % |   |   | 5.50 | % |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Expected      long-term rate of return on               |   |                  |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |    plan      assets                      |   |                  | 8.00   | %      |                         |   | 8.00 | % |   |   | 8.00 | % |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                    |   |                  |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | FMS      Pension Plan                                   |   |                  |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Discount      rate for periodic pension cost            |   |                  | 6.90   | %      |                         |   | 6.50 | % |   |   | 6.00 | % |   |   | 6.90 | % |   |   | 6.50 | % |   |   | 6.00 | % |
|   | Discount      rate for benefit obligation               |   |                  | 6.05   | %      |                         |   | 6.90 | % |   |   | 6.50 | % |   |   | 6.05 | % |   |   | 6.90 | % |   |   | 6.50 | % |
|   | Rate      of increase in compensation levels            |   |                  |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |   and      social security wage base          |   |                  |   |   |                         |   | 5.50 | % |   |   | 5.50 | % |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Expected      long-term rate of return on               |   |                  |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |    plan      assets                      |   |                  | 8.00   | %      |                         |   | 8.00 | % |   |   | 8.00 | % |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                    |   |                  |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                    |   |                  |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | The      components of net pension cost are as follows: |   |                  |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | (Dollars      in thousands)                             |   | Pension      Benefits |   |   | Postretirement      Benefits |   |
|   | Component      of Net Periodic Benefit Cost             |   |  2009            |   |   |  2008                   |   |   |  2007 |   |   |  2009 |   |   |  2008 |   |   |  2007 |   |
|   | Service      cost                                       |   | $                     | -      |   |                         | $      | 1,194 |   |   | $ | 2,435 |   |   | $ | 171 |   |   | $ | 173 |   |   | $ | 260 |   |
|   | Interest      cost                                      |   |                  | 3,784  |   |                         |   | 4,228 |   |   |   | 4,128 |   |   |   | 1,495 |   |   |   | 1,454 |   |   |   | 647 |   |
|   | Expected      return on assets                          |   |                  | (3,093 | )      |                         |   | (4,430 | ) |   |   | (3,998 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|   | Amortization      of transition obligation              |   |                  | -      |   |                         |   | - |   |   |   | - |   |   |   | 164 |   |   |   | 164 |   |   |   | 164 |   |
|   | Amortization      of prior service cost                 |   |                  |   |   |                         |   | 14 |   |   |   | 36 |   |   |   | 147 |   |   |   | 146 |   |   |   | 187 |   |
|   | Pension      curtailments                               |   |                  |   |   |                         |   | (7,289 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   | Recognized      net actuarial loss                      |   |                  | 799    |   |                         |   | 73 |   |   |   | 425 |   |   |   | 14 |   |   |   | 18 |   |   |   | 68 |   |
|   | Net      periodic pension cost                          |   | $                     | 1,490  |   |                         | $      | (6,210 | ) |   | $ | 3,026 |   |   | $ | 1,991 |   |   | $ | 1,955 |   |   | $ | 1,326 |   |

|   | (Dollars      in thousands)                        |   | 1.0%Increase |   |   | 1.0% Decrease |   |
|--------|----------------------------------------------------|--------|--------------|--------|--------|--------------------|--------|
|   | Accumulated      postretirement benefit obligation |   | $            | 271    |   |               | $      | (264 | ) |
|   | Service      and interest cost                     |   |         | 21     |   |               |   | (21 | ) |
|   |                                               |   |         |   |   |               |   |   |   |

----

| (Dollars      in thousands) |   |   |                         |   |   |   |      |
|-----------------------------|--------|--------|------------------------------|--------|--------|--------|-----------|
|                        |   |   |                         |   |   |   |      |   |   |
| Pension      Benefits       |   |   | Postretirement      Benefits |   |
| 2010                        |   | $      | 2,844                        |   |   |   | 2010      |   |   | $ | 1,990 |   |
| 2011                        |   |   | 3,245                        |   |   |   | 2011      |   |   |   | 1,903 |   |
| 2012                        |   |   | 3,158                        |   |   |   | 2012      |   |   |   | 1,943 |   |
| 2013                        |   |   | 3,292                        |   |   |   | 2013      |   |   |   | 1,937 |   |
| 2014                        |   |   | 3,615                        |   |   |   | 2014      |   |   |   | 1,888 |   |
| 2015-2019                   |   |   | 20,297                       |   |   |   | 2015-2019 |   |   |   | 9,411 |   |

|                                 |   | Category      Used for Fair Value Measurement |   |
|--------------------------------------|--------|-----------------------------------------------|--------|
|                                 |   | December      31, 2009                        |   |   | December      31, 2008 |   |
| (Dollars      in thousands)          |   | Level      1                                  |   |   | Level      2 |   |   | Level      3 |   |   | Total |   |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |   | Total |   |
| Assets:                              |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                 |   | $                                             | 4,358  |   |   | $ | - |   |   | $ | - |   |   | $ | 4,358 |   |   | $ | 2,285 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,285 |   |
| Money      Market Funds              |   |                                          | 652    |   |   |   | - |   |   |   | - |   |   |   | 652 |   |   |   | 1,293 |   |   |   | - |   |   |   | - |   |   |   | 1,290 |   |
| Equity      securities/mutual funds: |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Large      cap                       |   |                                          | 11,929 |   |   |   | - |   |   |   | - |   |   |   | 11,929 |   |   |   | 8,978 |   |   |   | - |   |   |   | - |   |   |   | 8,978 |   |
| Multi      and mid cap               |   |                                          | 10,236 |   |   |   | - |   |   |   | - |   |   |   | 10,236 |   |   |   | 8,927 |   |   |   | - |   |   |   | - |   |   |   | 8,930 |   |
| Small      cap                       |   |                                          | 9,201  |   |   |   | - |   |   |   | - |   |   |   | 9,201 |   |   |   | 6,836 |   |   |   | - |   |   |   | - |   |   |   | 6,836 |   |
| International                        |   |                                          | 4,026  |   |   |   | - |   |   |   | - |   |   |   | 4,026 |   |   |   | 2,044 |   |   |   | - |   |   |   | - |   |   |   | 2,044 |   |
| Corporate      bonds                 |   |                                          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 466 |   |   |   | - |   |   |   | 466 |   |
| Mortgage-backed      securities      |   |                                          | -      |   |   |   | 6,611 |   |   |   | - |   |   |   | 6,611 |   |   |   | - |   |   |   | 8,708 |   |   |   | - |   |   |   | 8,708 |   |
| Other      assets                    |   |                                          | 29     |   |   |   | - |   |   |   | - |   |   |   | 29 |   |   |   | 29 |   |   |   | - |   |   |   | - |   |   |   | 29 |   |
| Total                                |   |                                          |   |   |   |   |   |   |   |   |   |   |   | $ | 47,042 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 39,566 |   |

| 17. | EMPLOYEE      SAVINGS AND STOCK OWNERSHIP PLAN |
|-----|------------------------------------------------|

----

| 18. | STOCK BASED      COMPENSATION |
|-----|-------------------------------|

----

|                                                                       |   |                 |    |   |                            |   |
|----------------------------------------------------------------------------|--------|----------------------|---------|--------|---------------------------------|--------|
| Summary      of Non-vested Stock Award Activity(Dollars      in thousands) |   | Number      ofShares |    |   | WeightedAverageGrant      Price |   |
|                                                                       |   |                 |    |   |                            |   |
| Non-vested      Stock Awards outstanding, January 1, 2009                  |   |                 | 761,000 |   |                            | $      | 11.86 |   |
|    Issued                                                   |   |                 | 137,500 |   |                            |   | 8.35 |   |
|    Vested                                                   |   |                 | (62,000 | )      |                            |   | 11.86 |   |
| Non-vested      Stock Awards outstanding, December 31, 2009                |   |                 | 836,500 |   |                            | $      | 11.28 |   |
|                                                                       |   |                 |    |   |                            |   |   |   |

| Summary      of Non-vested Stock Award Activity(Dollars      in thousands) |   | Number      ofShares |    |   | WeightedAverageGrant      Price |   |
|----------------------------------------------------------------------------|--------|----------------------|---------|--------|---------------------------------|--------|
|                                                                       |   |                 |    |   |                            |   |
| Non-vested      Stock Awards outstanding, January 1, 2008                  |   |                 | -       |   |                            |   | - |   |
|    Issued                                                   |   |                 | 761,000 |   |                            | $      | 11.86 |   |
|    Vested                                                   |   |                 | -       |   |                            |   | - |   |
| Non-vested      Stock Awards outstanding, December 31, 2008                |   |                 | 761,000 |   |                            | $      | 11.86 |   |
|                                                                       |   |                 |    |   |                            |   |   |   |

|                                    |   | Number      of Options |      |   | Weighted AverageExercise      Price perShares |                                                                                              |   |
|-----------------------------------------|--------|------------------------|-----------|--------|----------------------------------------------------|---------------------------------------------------------------------------------------------------|--------|
|                                    |   |                   |      |   |                                               |                                                                                              |   |
| January      1, 2009                    |   |                   | 1,697,500 |   |                                               |             $11.86                                                  |   |   |
|                                    |   |                   |      |   |                                               |                                                                                              |   |   |
|      Granted   |   |                   | 230,250   |   |                                               |                 8.36                            |   |   |
|      Exercised |   |                   | -         |   |                                               |                      - |   |   |
|      Forfeited |   |                   | (5,500    | )      |                                               |                11.54                                 |   |   |
|      Expired   |   |                   | -         |   |                                               |                      - |   |   |
| December      31, 2009                  |   |                   | 1,922,250 |   |                                               |         $11.44                                            |   |   |
|                                    |   |                   |      |   |                                               |                                                                                              |   |   |

----

|                                                 |   | For      the Year EndedDecember      31, |   |
|------------------------------------------------------|--------|------------------------------------------|--------|
|                                                 |   | 2009                                     |   |   | 2008 |   |
| Weighted      average fair value of options granted  |   | $                                        | 2.95   |   |   | $ | 3.37 |   |
| Weighted      average risk-free rate of return       |   |                                     | 2.39   | % |   |   | 3.62 | % |
| Weighted      average expected option life in months |   |                                     | 78     |   |   |   | 78 |   |
| Weighted      average expected volatility            |   |                                     | 29.80  | % |   |   | 17.56 | % |
| Expected      dividends                              |   | $                                        | -      |   |   | $ | - |   |

| 19. | REDUCTION      IN FORCE |
|-----|-------------------------|

| 20. | COMMITMENTS      AND CONTINGENCIES |
|-----|------------------------------------|

| 2010       |   | $      | 5,211  |   |
|------------|--------|--------|--------|--------|
| 2011       |   |   | 2,923  |   |
| 2012       |   |   | 1,983  |   |
| 2013       |   |   | 1,737  |   |
| 2014       |   |   | 1,676  |   |
| Thereafter |   |   | 11,730 |   |
|       |   | $      | 25,260 |   |

----

| 21. | INTEREST      RATE RISK |
|-----|-------------------------|

| 22. | DERIVATIVE      FINANCIAL INSTRUMENTS |
|-----|---------------------------------------|

----

| Level 1 | Quoted      prices in active markets for identical assets or      liabilities.  Level 1 assets and liabilities include debt,      equity securities and derivative contracts that are traded in an active      exchange market as well as certain U.S. Treasury securities that are      highly liquid and actively traded in over-the-counter    markets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Level 2 | Observable      inputs other than Level 1 prices, such as quoted prices for similar assets      or liabilities; quoted prices in markets that are not active; or other      inputs that are observable or can be corroborated by observable market      data for substantially the full term of the assets or      liabilities.  Level 2 assets and liabilities include debt      securities with quoted market prices that are traded less frequently than      exchange traded assets and liabilities.  The values of these      items are determined using pricing models with inputs observable in the      market or can be corroborated from observable market data.  This      category generally includes U.S. Government and agency mortgage-backed      debt securities, corporate debt securities and derivative      contracts. |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Level 3 | Unobservable      inputs that are supported by little or no market activity and that are      significant to the fair value of the assets or liabilities. Level 3 assets      and liabilities include financial instruments whose value is determined      using pricing models, discounted cash flow methodologies, or similar      techniques, as well as instruments for which the determination of fair      value requires significant management judgment or      estimation.                                                                                                                                                                                                                                                                                                                                                                                  |

----

|   |                                           |   | Category      Used for Fair Value Measurement |   |
|--------|------------------------------------------------|--------|-----------------------------------------------|--------|
|   | (Dollars      in thousands)                    |   | Level      1                                  |   |   | Level      2 |   |   | Level      3 |   |   | Total |   |
|   | Assets:                                        |   |                                          |   |   |   |   |   |   |   |   |   |   |
|   | Trading      securities                        |   | $                                             | -      |   |   | $ | 39,739 |   |   | $ | - |   |   | $ | - |   |
|   | Investment      securities available for sale: |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | GSE      and agency notes                      |   |                                          | -      |   |   | $ | 208,334 |   |   |   | - |   |   |   | 208,334 |   |
|   | GNMA      guaranteed mortgage certificates     |   |                                          | -      |   |   |   | 10,394 |   |   |   | - |   |   |   | 10,394 |   |
|   | Collateralized      mortgage obligations       |   |                                          | -      |   |   |   | 140,308 |   |   |   | - |   |   |   | 140,308 |   |
|   | Other      mortgage-backed securities          |   |                                          |   |   |   |   | 706,245 |   |   |   | - |   |   |   | 706,245 |   |
|   | Municipal      bonds                           |   |                                          | -      |   |   |   | 189,957 |   |   |   | - |   |   |   | 189,957 |   |
|   | Pooled      trust preferred securities         |   |                                          | -      |   |   |   | - |   |   |   | 18,797 |   |   |   | 18,797 |   |
|   | Equity      securities                         |   |                                          | 6,062  |   |   |   | - |   |   |   | - |   |   |   | 6,062 |   |
|   | Money      market funds                        |   |                                          | 5,085  |   |   |   | - |   |   |   | - |   |   |   | 5,085 |   |
|   | Mutual      funds                              |   |                                          | -      |   |   |   | 1,627 |   |   |   | - |   |   |   | 1,627 |   |
|   | Certificates      of deposits                  |   |                                          | 297    |   |   |   | - |   |   |   | - |   |   |   | 297 |   |
|   |                                           |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   |                                                |   | Category      Used for Fair Value Measurement |   |
|--------|-----------------------------------------------------|--------|-----------------------------------------------|--------|
|   |     (Dollars      in thousands) |   | Level      1                                  |   |   | Level      2 |   |   | Level      3 |   |   | Total |   |
|   | Assets:                                             |   |                                          |   |   |   |   |   |   |   |   |   |   |
|   | Investment      securities available for sale:      |   |                                          |   |   |   |   |   |   |   |   |   |   |
|   | GSE      and agency notes                           |   | $                                             | -      |   |   | $ | 8,700 |   |   | $ | - |   |   | $ | 8,700 |   |
|   | GNMA      guaranteed mortgage certificates          |   |                                          | -      |   |   |   | 12,505 |   |   |   | - |   |   |   | 12,505 |   |
|   | Collateralized      mortgage obligations            |   |                                          | -      |   |   |   | 176,373 |   |   |   | - |   |   |   | 176,373 |   |
|   | Municipal      and other bonds                      |   |                                          | -      |   |   |   | 80,601 |   |   |   | 19,329 |   |   |   | 99,930 |   |
|   | Other      mortgage-backed securities               |   |                                          | -      |   |   |   | 793,280 |   |   |   | - |   |   |   | 793,280 |   |
|   | Equity      securities                              |   |                                          | 7,746  |   |   |   |   |   |   |   | - |   |   |   | 7,746 |   |
|   | Money      market funds                             |   |                                          | -      |   |   |   | 14,012 |   |   |   | - |   |   |   | 14,012 |   |
|   | Mutual      funds                                   |   |                                          | -      |   |   |   | 1,541 |   |   |   | - |   |   |   | 1,541 |   |

| Level      3 Investments Only(Dollars      in thousands) |   | Year      EndedDecember      31, 2009 |   |
|----------------------------------------------------------|--------|---------------------------------------|--------|
|                                                     |   | Available-for-Sale      Securities    |   |
| Balance,      January 1, 2009                            |   | $                                     | 19,329 |   |
| Total      gains or losses realized/(unrealized):        |   |                                  |   |   |
| Included      in earnings                                |   |                                  | -      |   |
| Included      in other comprehensive income              |   |                                  | 3,343  |   |
| Purchases,      issuances and settlements                |   |                                  | (3,875 | ) |
| Transfers      in and/or out of Level 3                  |   |                                  | -      |   |
| Balance,      December 31, 2009                          |   | $                                     | 18,797 |   |
|                                                     |   |                                  |   |   |
|                                                     |   |                                  |   |   |

| Level      3 Investments Only(Dollars      in thousands) |   | Year      EndedDecember      31, 2008 |   |
|----------------------------------------------------------|--------|---------------------------------------|--------|
|                                                     |   | Available-for-Sale      Securities    |   |
| Balance,      January 1, 2008                            |   | $                                     | -      |   |
| Total      gains or losses realized/(unrealized):        |   |                                  |   |   |
| Included      in earnings                                |   |                                  |   |   |
| Included      in other comprehensive income              |   |                                  | 844    |   |
| Purchases,      issuances and settlements                |   |                                  | (5,437 | ) |
| Transfers      in and/or out of Level 3                  |   |                                  | 23,922 |   |
| Balance,      December 31, 2008                          |   | $                                     | 19,329 |   |
|                                                     |   |                                  |   |   |

----

|   | (Dollars      in thousands) |   |                                       |        Category      Used for Fair Value Measurement |
|--------|-----------------------------|--------|--------------------------------------------|-----------------------------------------------------------|
|   |                        |   | Balance      atDecember      31, 2009 |                                                      | Level      1 |   | Level      2 |   | Level      3 |
|   |                        |   |                                       |                                                      |   |   |   |   |   |   |
|   | Impaired      loans         |   | $                                          | 71,887                                                    |   |   |   |   |   |   | $ | 71,887 |

|   |                |   |                                  |   |        Category      Used for Fair Value Measurement |         |
|--------|---------------------|--------|---------------------------------------|--------|-----------------------------------------------------------|--------------|
|   |                |   | Balance      atDecember      31, 2008 |   | Level      1                | Level      2 |   | Level      3 |   |
|   |                |   |                                  |   |                                                      |         |   |   |   |
|   | Impaired      loans |   | $                                     | 10,511 |                                                      |         |   |   | $ | 10,511 |   |

|   | (Dollars in thousands)                                                |   | 2009     |      |   | 2008      |   |
|--------|-----------------------------------------------------------------------|--------|----------|-----------|--------|-----------|--------|
|   |                                                                  |   |     |      |   | Estimated |   |   |   |   |   | Estimated |   |
|   |                                                                  |   | Carrying |      |   | Fair      |   |   | Carrying |   |   | Fair |   |
|   |                                                                  |   | Amount   |      |   | Value     |   |   | Amount |   |   | Value |   |
|   | Assets:                                                               |   |     |      |   |      |   |   |   |   |   |   |   |
|   | Cash      and cash equivalents                                        |   | $        | 179,701   |   |      | $      | 179,701 |   |   | $ | 44,389 |   |   | $ | 44,389 |   |
|   | Trading      securities                                               |   |     | 31,825    |   |      |   | 31,825 |   |   |   | - |   |   |   | - |   |
|   | Investment      securities                                            |   |     | 1,363,183 |   |      |   | 1,365,026 |   |   |   | 1,218,168 |   |   |   | 1,219,523 |   |
|   | Loans      - net                                                      |   |     | 2,744,264 |   |      |   | 2,663,740 |   |   |   | 2,387,677 |   |   |   | 2,399,200 |   |
|   | Liabilities:                                                          |   |     |      |   |      |   |   |   |   |   |   |   |   |   |   |   |
|   | Checking      deposits                                                |   |     | 1,363,516 |   |      |   | 1,363,516 |   |   |   | 772,515 |   |   |   | 722,515 |   |
|   |            Money market and savings accounts |   |     | 1,199,679 |   |      |   | 1,199,679 |   |   |   | 928,320 |   |   |   | 928,320 |   |
|   | Time      deposits                                                    |   |     | 946,052   |   |      |   | 954,835 |   |   |   | 1,040,844 |   |   |   | 1,060,599 |   |
|   | Borrowed      funds                                                   |   |     | 433,620   |   |      |   | 438,769 |   |   |   | 580,054 |   |   |   | 590,980 |   |

----

| 24. | VARIABLE      INTEREST ENTITIES |
|-----|---------------------------------|

|   | (Dollars      in thousands)      |   | Aggregate      Assets |   |   | Aggregate      Liabilities |   |
|--------|----------------------------------|--------|-----------------------|--------|--------|----------------------------|--------|
|   | December      31, 2009           |   |                  |   |   |                       |   |
|   |                             |   |                  |   |   |                       |   |
|   | Affordable      housing projects |   | $                     | 14,793 |   |                       | $      | 4,968 |   |
|   |                             |   |                  |   |   |                       |   |   |   |
|   | December      31, 2008           |   |                  |   |   |                       |   |   |   |
|   |                             |   |                  |   |   |                       |   |   |   |
|   | Affordable      housing projects |   | $                     | 15,410 |   |                       | $      | 4,967 |   |

----

| 25. | RELATED      PARTY TRANSACTIONS |
|-----|---------------------------------|

----

| 26. | PARENT      COMPANY FINANCIAL INFORMATION |
|-----|-------------------------------------------|

| Beneficial      Mutual Bancorp, Inc.                                                                                                                  |   |              |    |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|--------|--------|
| CONDENSED      STATEMENTS OF FINANCIAL CONDITION - PARENT COMPANY ONLY                                                                                |   |
|                                                                                                                                                  |   |              |    |   |   |   |
| (Dollars      in thousands)                                                                                                                           |   | December      31, |    |
|                                                                                                                                                  |   | 2009              |    |   | 2008   |   |
| ASSETS                                                                                                                                                |   |              |    |   |   |   |
| Cash      on deposit at the Bank                                                                                                                      |   | $                 | 675     |   |   | $      | 1,500 |   |
| Interest-bearing      deposit at the Bank                                                                                                             |   |              | 34,586  |   |   |   | 30,614 |   |
| Investment      in the Bank                                                                                                                           |   |              | 596,739 |   |   |   | 571,355 |   |
| Investment      in Statutory Trust                                                                                                                    |   |              | 774     |   |   |   | 774 |   |
| Investment      securities available-for-sale                                                                                                         |   |              | 6,457   |   |   |   | 8,866 |   |
| Loan      Receivable from the Bank (interest earning)                                                                                                 |   |              | 15,500  |   |   |   | 15,500 |   |
| Receivable      from the Bank                                                                                                                         |   |              | 3,703   |   |   |   | 1,030 |   |
| Accrued      Interest from the Bank                                                                                                                   |   |              | 13      |   |   |   | 225 |   |
| Deferred      Income Taxes                                                                                                                            |   |              | 947     |   |   |   | 2,550 |   |
| Other      assets                                                                                                                                     |   |              | 2,929   |   |   |   | 3,483 |   |
|         TOTAL      ASSETS                                                                                     |   | $                 | 662,323 |   |   | $      | 635,897 |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                                       |   |              |    |   |   |   |   |   |
| LIABILITIES:                                                                                                                                          |   |              |    |   |   |   |   |   |
|     Accrued  and      other liabilities                                                                                 |   |              | -       |   |   |   | 31 |   |
|     Accrued      Interest Payable                                                                                                 |   |              | 22      |   |   |   | 44 |   |
|     Statutory      Trust Debenture                                                                                                |   |              | 25,300  |   |   |   | 25,282 |   |
|                                                                                                                                                  |   |              |    |   |   |   |   |   |
|         Total      liabilities                                                                                |   |              | 25,322  |   |   |   | 25,357 |   |
| COMMIITMENTS      AND CONTINGENCIES                                                                                                                   |   |              |    |   |   |   |   |   |
| STOCKHOLDERS’      EQUITY                                                                                                                       |   |              |    |   |   |   |   |   |
| Preferred Stock -      $.01      par value; 100,000,000 shares authorized, none issued      or outstanding as of December 31, 2009 and 2008           |   |              | -       |   |   |   | - |   |
| Common Stock - $.01      par value 300,000,000 shares authorized, 82,264,600      shares issued and outstanding as of December 31, 2009      and 2008 |   |              | 823     |   |   |   | 823 |   |
| Additional      paid-in capital                                                                                                                       |   |              | 345,356 |   |   |   | 342,420 |   |
| Unearned      common stock held by employee stock ownership plan                                                                                      |   |              | (25,489 | )      |   |   | (28,510 | ) |
|     Retained      earnings                                                                                                        |   |              | 313,195 |   |   |   | 296,106 |   |
|                                                                                                                                                  |   |              |    |   |   |   |   |   |
|     Accumulated      other comprehensive loss                                                                                     |   |              | 6,712   |   |   |   | (299 | ) |
|                                                                                                                                                  |   |              |    |   |   |   |   |   |
|     Treasury      stock, at cost, 410,904 shares, at December 31, 2009 and      0 shares      at December 31, 2008           |   |              | (3,596  | )      |   |   | - |   |
|          Total      stockholders’ equity                                                           |   |              | 637,001 |   |   |   | 610,540 |   |
|          TOTAL      LIABILITIES AND STOCKHOLDERS’ EQUITY                                           |   | $                 | 662,323 |   |   | $      | 635,897 |   |

----

| Beneficial      Mutual Bancorp, Inc.                                                                                               |   |              |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|--------|--------|--------|--------|--------|
| CONDENSED      STATEMENTS OF OPERATIONS- PARENT COMPANY ONLY                                                                       |   |              |   |   |
| (Dollars      in thousands)                                                                                                        |   |              |   |   |   |   |   |   |   |
|                                                                                                                               |   | December      31, |   |
|                                                                                                                               |   | 2009              |   |   | 2008   |   |   | 2007   |   |
| INCOME                                                                                                                             |   |              |   |   |   |   |   |   |   |
| Interest      on interest-bearing deposits with the Bank                                                                           |   | $                 | 406    |   |   | $      | 797    |   |   | $ | 271 |   |
| Interest      from non-affiliated banks                                                                                            |   |              | -      |   |   |   | 4      |   |   |   | 4 |   |
| Interest      and dividends on investment securities                                                                               |   |              | 175    |   |   |   | 282    |   |   |   | 245 |   |
| Interest      on loan to the Bank                                                                                                  |   |              | 402    |   |   |   | 758    |   |   |   | 186 |   |
| Realized      gain (loss) on securities available-for-sale                                                                         |   |              | 116    |   |   |   | (2,265 | )      |   |   | (915 | ) |
| Other      (loss) income                                                                                                           |   |              | (114   | )      |   |   | (337   | )      |   |   | 26 |   |
|          Total      (loss) income                                                     |   |              | 985    |   |   |   | (761   | )      |   |   | (183 | ) |
|                                                                                                                               |   |              |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                                                                                           |   |              |   |   |   |   |   |   |   |   |   |   |
| Expenses      paid to the Bank                                                                                                     |   |              | 150    |   |   |   | 150    |   |   |   | 4 |   |
| Interest      expense                                                                                                              |   |              | 686    |   |   |   | 1,274  |   |   |   | 876 |   |
| Charitable      contributions                                                                                                      |   |              | 55     |   |   |   | 70     |   |   |   | 10,000 |   |
| Other      expenses                                                                                                                |   |              | 733    |   |   |   | 535    |   |   |   | 546 |   |
|          Total      expenses                                                          |   |              | 1,624  |   |   |   | 2,029  |   |   |   | 11,426 |   |
| Loss      before income tax expense (benefit) and equity in undistributed net      income of affiliates                            |   |              | (639   | )      |   |   | (2,790 | )      |   |   | (11,609 | ) |
| Income      tax (expense ) benefit                                                                                                 |   |              | (989   | )      |   |   | 525    |   |   |   | 3,695 |   |
|                                                                                                                               |   |              |   |   |   |   |   |   |   |   |   |   |
| Equity      in undistributed net income of the Bank                                                                           |   |              | 18,717 |   |   |   | 18,811 |   |   |   | 6,369 |   |
|                                                                                                                               |   |              |   |   |   |   |   |   |   |   |   |   |
|                   Net      income (loss) |   |              | 17,089 |   |   |   | 16,546 |   |   |   | (1,545 | ) |

----

| Beneficial      Mutual Bancorp, Inc.                                                               |   |              |    |   |   |   |    |   |   |
|----------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|--------|--------|---------|--------|--------|
| CONDENSED      STATEMENTS OF CASH FLOW- PARENT COMPANY ONLY                                        |   |
| (Dollars      in thousands)                                                                        |   | December      31, |    |
|                                                                                               |   | 2009              |    |   | 2008   |   |    | 2007   |   |
| OPERATING      ACTIVITIES:                                                                         |   |              |    |   |   |   |    |   |   |
| Net      income (loss)                                                                             |   | $                 | 17,089  |   |   | $      | 16,546  |   |   | $ | (1,545 | ) |
| Adjustments      to reconcile net income/(loss) to net cash provided by operating      activities: |   |              |    |   |   |   |    |   |   |   |   |   |
| Contribution      of stock to The Beneficial  Foundation                                 |   |              | -       |   |   |   | -       |   |   |   | 9,491 |   |
| Equity      in undistributed net earnings of subsidiaries                                          |   |              | (18,717 | )      |   |   | (18,811 | )      |   |   | (6,369 | ) |
| Investment      securities gain                                                                    |   |              | (1,702  | )      |   |   | (394    | )      |   |   | (277 | ) |
| Impairment      on equity securities                                                               |   |              | 1,587   |   |   |   | 2,658   |   |   |   | 1,192 |   |
| Accrued      interest receivable                                                                   |   |              | 212     |   |   |   | (77     | )      |   |   | 1,496 |   |
| Accrued      interest payable                                                                      |   |              | (22     | )      |   |   | (27     | )      |   |   | (74 | ) |
| Net      intercompany transactions                                                                 |   |              | 3,236   |   |   |   | 2,104   |   |   |   | 968 |   |
| Amortization      of debt premium on debenture                                                     |   |              | 18      |   |   |   | 18      |   |   |   | 8 |   |
| Deferred      income taxes                                                                         |   |              | 1,467   |   |   |   | 703     |   |   |   | (2,948 | ) |
| Changes      in assets and liabilities that provided (used) cash:                                  |   |              |    |   |   |   |    |   |   |   |   |   |
| Other      liabilities                                                                             |   |              | (31     | )      |   |   | (1,266  | )      |   |   | 68 |   |
| Other      assets                                                                                  |   |              | 554     |   |   |   | 886     |   |   |   | (426 | ) |
| Net      cash provided by operating activities                                                     |   |              | 3,691   |   |   |   | 2,340   |   |   |   | 1,584 |   |
|                                                                                               |   |              |    |   |   |   |    |   |   |   |   |   |
| INVESTING      ACTIVITIES:                                                                         |   |              |    |   |   |   |    |   |   |   |   |   |
| Purchases      of investment securities available-for-sale                                         |   |              | (3,028  | )      |   |   | (5,997  | )      |   |   | (9,431 | ) |
| Proceeds      from sales and maturities of investment securities      available-for-sale           |   |              | 5,354   |   |   |   | 4,286   |   |   |   | 5,577 |   |
| Net      change in money market securities                                                         |   |              | 726     |   |   |   | 1,000   |   |   |   | (1,896 | ) |
| Cash      paid in business combination                                                             |   |              | -       |   |   |   | -       |   |   |   | (62,913 | ) |
| Investment      in the Bank                                                                        |   |              | -       |   |   |   | -       |   |   |   | (77,888 | ) |
| Advance      to the Bank                                                                           |   |              | -       |   |   |   | -       |   |   |   | (10,000 | ) |
| Net      cash provided by investing activities                                                     |   |              | 3,052   |   |   |   | (711    | )      |   |   | (156,551 | ) |
|                                                                                               |   |              |    |   |   |   |    |   |   |   |   |   |
| FINANCING      ACTIVITIES:                                                                         |   |              |    |   |   |   |    |   |   |   |   |   |
| Cash      proceeds from stock offering                                                             |   |              | -       |   |   |   | -       |   |   |   | 232,379 |   |
| Cash      dividends                                                                                |   |              | -       |   |   |   | -       |   |   |   | (252 | ) |
| Purchase      of treasury stock                                                                    |   |              | (3,596  | )      |   |   | -       |   |   |   | - |   |
| Purchase      of stock for share-based compensation plans                                          |   |              | -       |   |   |   | (19,074 | )      |   |   | - |   |
| Loan      to employee stock ownership plan                                                         |   |              | -       |   |   |   | -       |   |   |   | (32,248 | ) |
| Net      cash used in financing activities                                                         |   |              | (3,596  | )      |   |   | (19,074 | )      |   |   | 199,879 |   |
|                                                                                               |   |              |    |   |   |   |    |   |   |   |   |   |
| NET      (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                                          |   |              | 3,147   |   |   |   | (17,445 | )      |   |   | 44,912 |   |
|                                                                                               |   |              |    |   |   |   |    |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS, BEGINNING OF YEAR                                                  |   |              | 32,114  |   |   |   | 49,559  |   |   |   | 4,647 |   |
|                                                                                               |   |              |    |   |   |   |    |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS, END OF YEAR                                                        |   | $                 | 35,261  |   |   | $      | 32,114  |   |   | $ | 49,559 |   |
|                                                                                               |   |              |    |   |   |   |    |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES OF CASH FLOW AND NON-CASH INFORMATION:                               |   |              |    |   |   |   |    |   |   |   |   |   |
| Cash      payments for interest                                                                    |   | $                 | 690     |   |   | $      | 1,266   |   |   | $ | 941 |   |
| Cash      payments of income taxes                                                                 |   |              | 3       |   |   |   | -       |   |   |   | 57 |   |

----

| 27. | CONSOLIDATED      SUMMARY OF QUARTERLY EARNINGS(UNAUDITED) |
|-----|------------------------------------------------------------|

| (Dollars      in thousands, except per share amounts)                               |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |
|-------------------------------------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|
| The      following table presents summarized quarterly data for 2009 and      2008: |   |    |   |   |    |   |   |    |   |   |
|                                                                                |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |
|                                                                                |   | 1st     |   |   | 2nd     |   |   | 3rd     |   |   | 4th     |   |   | Total  |   |
| 2009                                                                                |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Year   |   |
|                                                                                |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |
| Total      interest income                                                          |   | $       | 47,528 |   |    | $      | 46,960 |    |   | $      | 48,439  |   |   | $      | 50,047 |   |   | $ | 192,974 |   |
| Total      interest expense                                                         |   |    | 18,049 |   |    |   | 16,544 |    |   |   | 15,759  |   |   |   | 15,280 |   |   |   | 65,632 |   |
| Net      interest income                                                            |   |    | 29,479 |   |    |   | 30,416 |    |   |   | 32,680  |   |   |   | 34,767 |   |   |   | 127,342 |   |
| Provision      for loan losses                                                      |   |    | 3,000  | (2)    |    |   | 7,100  |    |   |   | 2,000   |   |   |   | 3,597  |   |   |   | 15,697 |   |
| Net      interest income after provision for      loan losses                  |   |    | 26,479 |   |    |   | 23,316 |    |   |   | 30,680  |   |   |   | 31,170 |   |   |   | 111,645 |   |
| Total      non-interest income                                                      |   |    | 8,018  |   |    |   | 6,142  |    |   |   | 6,462   |   |   |   | 6,226  |   |   |   | 26,847 |   |
| Total      non-interest expense                                                     |   |    | 28,438 |   |    |   | 29,752 |    |   |   | 30,522  |   |   |   | 31,156 |   |   |   | 119,866 |   |
| (Loss)      income before income taxes                                              |   |    | 6,059  |   |    |   | (294   | )       |   |   | 6,620   |   |   |   | 6,240  |   |   |   | 18,626 |   |
| Income      tax (benefit) expense                                                   |   |    | 931    |   |    |   | (244   | )       |   |   | 800     |   |   |   | 49     |   |   |   | 1,537 |   |
|                                                                                |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Net      (loss) income                                                              |   | $       | 5,128  |   |    | $      | (50    | )       |   | $      | 5,820   |   |   | $      | 6,191  |   |   | $ | 17,089 |   |
|                                                                                |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Basic      and diluted earnings per      common share (1)                      |   | $       | 0.07   |   |    | $      | -      |    |   | $      | 0.07    |   |   | $      | 0.08   |   |   | $ | 0.22 |   |
|                                                                                |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                                                |   | 1st     |   |   | 2nd     |   |   | 3rd     |   |   | 4th     |   |   | Total  |   |
| 2008                                                                                |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Year   |   |
|                                                                                |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Total      interest income                                                          |   | $       | 48,242 |   |    | $      | 47,870 |    |   | $      | 48,080  |   |   | $      | 48,734 |   |   | $ | 192,926 |   |
| Total      interest expense                                                         |   |    | 21,124 |   |    |   | 19,813 |    |   |   | 18,989  |   |   |   | 18,989 |   |   |   | 78,915 |   |
| Net      interest income                                                            |   |    | 27,118 |   |    |   | 28,057 |    |   |   | 29,091  |   |   |   | 29,745 |   |   |   | 114,011 |   |
| Provision      for loan losses                                                      |   |    | 300    |   |    |   | 2,300  |    |   |   | 3,191   | (2)    |   |   | 13,110 |   |   |   | 18,899 |   |
| Net      interest income after provision for      loan losses                  |   |    | 26,818 |   |    |   | 25,757 |    |   |   | 25,900  |   |   |   | 16,635 |   |   |   | 95,112 |   |
| Total      non-interest income                                                      |   |    | 7,335  |   |    |   | 5,934  |    |   |   | 6,460   | (3)    |   |   | 3,875  |   |   |   | 23,601 |   |
| Total      non-interest expense                                                     |   |    | 25,892 |   |    |   | 18,640 |    |   |   | 26,639  |   |   |   | 27,132 |   |   |   | 98,303 |   |
| (Loss)      income before income taxes                                              |   |    | 8,261  |   |    |   | 13,051 |    |   |   | 5,721   |   |   |   | (6,622 | ) |   |   | 20,411 |   |
| Income      tax (benefit) expense                                                   |   |    | 2,200  |   |    |   | 3,950  |    |   |   | 1,400   |   |   |   | (3,685 | ) |   |   | 3,865 |   |
|                                                                                |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Net      (loss) income                                                              |   | $       | 6,061  |   |    | $      | 9,101  |    |   | $      | 4,321   |   |   | $      | (2,937 | ) |   | $ | 16,546 |   |
|                                                                                |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Basic      and diluted earnings per      common share (1)                      |   | $       | 0.08   |   |    | $      | 0.11   |    |   | $      | 0.05    |   |   | $      | (0.04  | ) |   | $ | 0.21 |   |

| (1) | EPS      is computed independently for each period.  The sum of the      individual quarters may not be equal to the annual  EPS. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | As      a result of the weakening economy, the increase in commercial loans      outstanding and an increase in non-performing loans and charge offs, our      provision for loan losses increased to $7.1 million during the second      quarter 2009 and $13.1 million during the fourth quarter      2008. Changes in the provision were based on management’s analysis of      various factors such as: estimated fair value of underlying collateral,      recent loss experience in particular segments of the portfolio, levels and      trends in delinquent loans, and changes in general economic and business      conditions. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | In      the fourth quarter 2008, the Company recorded an other-than-temporary      impairment charge on available-for-sale securities of $2.5 million in      non-interest income. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                |   | High   |   |   | Low    |   |
|---------------------|--------|--------|--------|--------|--------|--------|
| 2009:               |   |   |   |   |   |   |
|                |   |   |   |   |   |   |
| First      Quarter  |   | $      | 11.25  |   |   | $      | 8.35 |   |
| Second      Quarter |   | $      | 10.88  |   |   | $      | 8.69 |   |
| Third      Quarter  |   | $      | 9.94   |   |   | $      | 8.74 |   |
| Fourth      Quarter |   | $      | 9.92   |   |   | $      | 9.00 |   |
|                |   |   |   |   |   |   |   |   |
| 2008:               |   |   |   |   |   |   |   |   |
|                |   |   |   |   |   |   |   |   |
| First      Quarter  |   | $      | 9.94   |   |   | $      | 8.92 |   |
| Second      Quarter |   | $      | 11.99  |   |   | $      | 9.77 |   |
| Third      Quarter  |   | $      | 12.65  |   |   | $      | 10.75 |   |
| Fourth      Quarter |   | $      | 12.35  |   |   | $      | 9.68 |   |
|                |   |   |   |   |   |   |   |   |
| 2007:               |   |   |   |   |   |   |   |   |
|                |   |   |   |   |   |   |   |   |
| First      Quarter  |   |   | N/A    |   |   |   | N/A |   |
| Second      Quarter |   |   | N/A    |   |   |   | N/A |   |
| Third      Quarter  |   | $      | 9.75   |   |   | $      | 8.70 |   |
| Fourth      Quarter |   | $      | 10.02  |   |   | $      | 9.29 |   |

----

|                                 |   | Period      Ending |   |
|--------------------------------------|--------|--------------------|--------|
| Index                                |   | 12/31/09           |   |   | 09/30/09 |   |   | 06/30/09 |   |   | 03/31/09 |   |   | 12/31/08 |   |   | 09/30/08 |   |   | 06/30/08 |   |   | 03/31/08 |   |
| Beneficial      Mutual Bancorp, Inc. |   |               | 98.40  |   |   |   | 91.20 |   |   |   | 96.00 |   |   |   | 98.50 |   |   |   | 122.15 |   |   |   | 137.35 |   |   |   | 120.20 |   |   |   | 107.38 |   |
| NASDAQ      Composite                |   |               | 83.83  |   |   |   | 78.40 |   |   |   | 67.79 |   |   |   | 56.47 |   |   |   | 58.47 |   |   |   | 77.55 |   |   |   | 85.01 |   |   |   | 84.49 |   |
| SNL      Mid-Atlantic Thrift Index   |   |               | 65.43  |   |   |   | 60.29 |   |   |   | 57.61 |   |   |   | 55.30 |   |   |   | 75.24 |   |   |   | 88.23 |   |   |   | 87.40 |   |   |   | 95.10 |   |
|                                 |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   | 12/31/07           |   |   | 09/30/07 |   |   | 07/16/07 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beneficial      Mutual Bancorp, Inc. |   |               | 105.54 |   |   |   | 105.86 |   |   |   | 100.00 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NASDAQ      Composite                |   |               | 98.33  |   |   |   | 100.15 |   |   |   | 100.00 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SNL      Mid-Atlantic Thrift Index   |   |               | 90.79  |   |   |   | 102.71 |   |   |   | 100.00 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |