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|   | x      | Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934                                                                                                                                                                        |   |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |   |                                                                                                                                                                                                                                                                       |   |
|   |   | For the fiscal year ended SEPTEMBER 30, 2010                                                                                                                                                                                                                               |   |
|   |   |                                                                                                                                                                                                                                                                       |   |
|   |   | -or-                                                                                                                                                                                                                                                                       |   |
|   |   |                                                                                                                                                                                                                                                                       |   |
|   | o      | Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934                                                                                                                                                                              |   |
|   |   |                                                                                                                                                                                                                                                                       |   |
|   |   | For the transition period from                                       to |   |

| PENNSYLVANIA(State or other jurisdiction of incorporation or organization) | 68-0593604(IRS Employer Identification No.) |
|----------------------------------------------------------------------------|---------------------------------------------|

|   | 1834 OREGON AVENUE             | 19145      |
|--------|------------------------------------------|------------|
|   | PHILADELPHIA, PENNSYLVANIA               | (Zip Code) |
|   | (Address of Principal Executive Offices) |       |

| Title of Each Class                      |   | Name of Each Exchange on Which Registered |
|------------------------------------------|--------|-------------------------------------------|
|                                     |   |                                      |
| Common Stock (par value $0.01 per share) |   | The Nasdaq Stock Market, LLC              |

| Large Accelerated Filer  o                                                  |                                   | Accelerated Filer  o |
|---------------------------------------------------------------------------------------|----------------------------------------|--------------------------------|
| Non-Accelerated Filer  o (Do not check if a smaller reporting company) | Smaller Reporting Company  x |

| 1. | Portions of the Definitive Proxy Statement for the 2011 Annual Meeting of Shareholders are incorporated by reference into Part III, Items 10-14 of this Form 10-K. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|     | Page                                                                                                               |
|----------|--------------------------------------------------------------------------------------------------------------------|
| PART I   |                                                                                                               |
|     |                                                                                                               |
| Item 1.  | Business                                                                                                           | 1 |
|     |                                                                                                               |   |
| Item 1A. | Risk Factors                                                                                                       | 41 |
|     |                                                                                                               |   |
| Item 1B. | Unresolved Staff Comments                                                                                          | 41 |
|     |                                                                                                               |   |
| Item 2.  | Properties                                                                                                         | 42 |
|     |                                                                                                               |   |
| Item 3.  | Legal Proceedings                                                                                                  | 43 |
|     |                                                                                                               |   |
| Item 4.  | (Removed and Reserved)                                                                                             | 43 |
|     |                                                                                                               |   |
| PART II  |                                                                                                               |
|     |                                                                                                               |
| Item 5.  | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 44 |
|     |                                                                                                               |   |
| Item 6.  | Selected Financial Data                                                                                            | 45 |
|     |                                                                                                               |   |
| Item 7.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 47 |
|     |                                                                                                               |   |
| Item 7A. | Quantitative and Qualitative Disclosures About Market Risk                                                         | 60 |
|     |                                                                                                               |   |
| Item 8.  | Financial Statements and Supplementary Data                                                                        | 61 |
|     |                                                                                                               |   |
| Item 9.  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               | 100 |
|     |                                                                                                               |   |
| Item 9A. | Controls and Procedures                                                                                            | 100 |
|     |                                                                                                               |   |
| Item 9B. | Other Information                                                                                                  | 101 |
|     |                                                                                                               |   |
| PART III |                                                                                                               |
|     |                                                                                                               |
| Item 10. | Directors, Executive Officers and Corporate Governance                                                             | 101 |
|     |                                                                                                               |   |
| Item 11. | Executive Compensation                                                                                             | 101 |
|     |                                                                                                               |   |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 101 |
|     |                                                                                                               |   |
| Item 13. | Certain Relationships and Related Transactions and Director Independence                                           | 102 |
|     |                                                                                                               |   |
| Item 14. | Principal Accounting Fees and Services                                                                             | 102 |
|     |                                                                                                               |   |
| PART IV  |                                                                                                               |
|     |                                                                                                               |
| Item 15. | Exhibits and Financial Statement Schedules                                                                         | 102 |
|     |                                                                                                               |   |
|     | Signatures                                                                                                         |   |

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|                                    |   | September 30,          |    |
|-----------------------------------------|--------|------------------------|---------|
|                                    |   | 2010                   |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                    |   | Amount                 |    |   | % |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |
|                                    |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                    |   | (Dollars in thousands) |    |
| Real estate loans:                      |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family residential(1)      |   | $                      | 197,164 |   |   |   | 74.96 | % |   | $ | 201,396 |   |   |   | 75.98 | % |   | $ | 191,344 |   |   |   | 74.02 | % |   | $ | 159,945 |   |   |   | 67.85 | % |   | $ | 155,454 |   |   |   | 60.69 | % |
| Multi-family residential                |   |                   | 4,006   |   |   |   | 1.52 | % |   |   | 4,178 |   |   |   | 1.58 | % |   |   | 2,801 |   |   |   | 1.08 | % |   |   | 4,362 |   |   |   | 1.85 | % |   |   | 5,074 |   |   |   | 1.98 | % |
| Commercial real estate                  |   |                   | 19,710  |   |   |   | 7.49 | % |   |   | 19,907 |   |   |   | 7.51 | % |   |   | 20,518 |   |   |   | 7.94 | % |   |   | 18,019 |   |   |   | 7.64 | % |   |   | 11,339 |   |   |   | 4.42 | % |
| Construction and land development       |   |                   | 40,650  |   |   |   | 15.46 | % |   |   | 36,764 |   |   |   | 13.87 | % |   |   | 42,634 |   |   |   | 16.49 | % |   |   | 52,429 |   |   |   | 22.24 | % |   |   | 82,800 |   |   |   | 32.33 | % |
| Total real estate loans                 |   |                   | 261,530 |   |   |   | 99.43 | % |   |   | 262,245 |   |   |   | 98.94 | % |   |   | 257,297 |   |   |   | 99.53 | % |   |   | 234,755 |   |   |   | 99.58 | % |   |   | 254,667 |   |   |   | 99.42 | % |
| Commercial business                     |   |                   | 893     |   |   |   | 0.34 | % |   |   | 2,232 |   |   |   | 0.84 | % |   |   | 465 |   |   |   | 0.18 | % |   |   | 155 |   |   |   | 0.07 | % |   |   | 234 |   |   |   | 0.09 | % |
| Consumer                                |   |                   | 595     |   |   |   | 0.23 | % |   |   | 586 |   |   |   | 0.22 | % |   |   | 739 |   |   |   | 0.29 | % |   |   | 832 |   |   |   | 0.35 | % |   |   | 1,239 |   |   |   | 0.49 | % |
| Total loans                             |   |                   | 263,018 |   |   |   | 100.00 | % |   |   | 265,063 |   |   |   | 100.00 | % |   |   | 258,501 |   |   |   | 100.00 | % |   |   | 235,742 |   |   |   | 100.00 | % |   |   | 256,140 |   |   |   | 100.00 | % |
| Less:                                   |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Undisbursed portion of loans in process |   |                   | 5,366   |   |   |   |   |   |   |   | 6,281 |   |   |   |   |   |   |   | 13,515 |   |   |   |   |   |   |   | 15,897 |   |   |   |   |   |   |   | 36,257 |   |   |   |   |   |
| Deferred loan costs                     |   |                   | (590    | ) |   |   |   |   |   |   | (644 | ) |   |   |   |   |   |   | (574 | ) |   |   |   |   |   |   | (315 | ) |   |   |   |   |   |   | (153 | ) |   |   |   |   |
| Allowance for loan losses               |   |                   | 3,151   |   |   |   |   |   |   |   | 2,732 |   |   |   |   |   |   |   | 1,591 |   |   |   |   |   |   |   | 1,011 |   |   |   |   |   |   |   | 618 |   |   |   |   |   |
| Net loans                               |   | $                      | 255,091 |   |   |   |   |   |   | $ | 256,694 |   |   |   |   |   |   | $ | 243,969 |   |   |   |   |   |   | $ | 219,149 |   |   |   |   |   |   | $ | 219,418 |   |   |   |   |   |

----

| (1) | Includes home equity loans and lines of credit totaling $10.3 million and $13.0 million, respectively, as of September 30, 2010. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

|                                     |   | One-to-Four    |    |   |         |   |   |        |   |   | Construction |   |   |       |   |   |     |   |   |   |   |
|------------------------------------------|--------|----------------|---------|--------|--------------|--------|--------|-------------|--------|--------|--------------|--------|--------|------------|--------|--------|----------|--------|--------|--------|--------|
|                                     |   | Family         |    |   | Multi-family |   |   | Commercial  |   |   | and Land     |   |   | Commercial |   |   |     |   |   |   |   |
|                                     |   | Residential    |    |   | Residential  |   |   | Real Estate |   |   | Development  |   |   | Business   |   |   | Consumer |   |   | Total  |   |
|                                     |   | (In Thousands) |    |
| Amounts due after September 30, 2010 in: |   |           |    |
| One year or less                         |   | $              | 2,676   |   |         | $      | -      |        |   | $      | 1,655        |   |   | $          | 29,338 |   |     | $      | 212    |   |   | $ | 68 |   |   | $ | 33,949 |   |
| After one year through two years         |   |           | 1,583   |   |         |   | 9      |        |   |   | 486          |   |   |       | 3,323  |   |     |   | -      |   |   |   | 29 |   |   |   | 5,430 |   |
| After two years through three years      |   |           | 8,991   |   |         |   | 221    |        |   |   | 981          |   |   |       | 5,149  |   |     |   | 4      |   |   |   | 53 |   |   |   | 15,399 |   |
| After three years through five years     |   |           | 6,722   |   |         |   | 180    |        |   |   | 4,400        |   |   |       | 2,840  |   |     |   | 18     |   |   |   | 291 |   |   |   | 14,451 |   |
| After five years through ten years       |   |           | 49,141  |   |         |   | 2,448  |        |   |   | 10,430       |   |   |       | -      |   |     |   | 147    |   |   |   | 154 |   |   |   | 62,320 |   |
| After ten years through fifteen years    |   |           | 76,898  |   |         |   | 1,066  |        |   |   | 1,317        |   |   |       | -      |   |     |   | 368    |   |   |   | - |   |   |   | 79,649 |   |
| After fifteen years                      |   |           | 51,153  |   |         |   | 82     |        |   |   | 441          |   |   |       | -      |   |     |   | 144    |   |   |   | - |   |   |   | 51,820 |   |
| Total                                    |   | $              | 197,164 |   |         | $      | 4,006  |        |   | $      | 19,710       |   |   | $          | 40,650 |   |     | $      | 893    |   |   | $ | 595 |   |   | $ | 263,018 |   |

----

|                                |   |           |    |   |            |   |   |   |   |
|-------------------------------------|--------|----------------|---------|--------|-----------------|--------|--------|--------|--------|
|                                |   |           |    |   | Floating or     |   |   |   |   |
|                                |   | Fixed-Rate     |    |   | Adjustable-Rate |   |   | Total  |   |
|                                |   | (In Thousands) |    |
|                                |   |           |    |   |            |   |   |   |   |
| One- to four-family residential (1) |   | $              | 184,762 |   |            | $      | 9,726  |   |   | $ | 194,488 |   |
| Multi-family residential            |   |           | 4,006   |   |            |   | -      |   |   |   | 4,006 |   |
| Commercial real estate              |   |           | 17,912  |   |            |   | 143    |   |   |   | 18,055 |   |
| Construction and land development   |   |           | 13      |   |            |   | 11,299 |   |   |   | 11,312 |   |
| Commercial business                 |   |           | 681     |   |            |   | -      |   |   |   | 681 |   |
| Consumer                            |   |           | 527     |   |            |   | -      |   |   |   | 527 |   |
| Total                               |   | $              | 207,901 |   |            | $      | 21,168 |   |   | $ | 229,069 |   |

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|                                      |   | Year Ended September 30, |   |
|-------------------------------------------|--------|--------------------------|--------|
|                                      |   |                     |   |   |   |   |   |   |   |
|                                      |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                      |   | (In Thousands)           |   |
| Loan originations (1)                     |   |                     |   |   |   |   |
| One- to four-family residential           |   | $                        | 28,120 |   |   | $ | 46,296 |   |   | $ | 51,289 |   |
| Multi-family residential                  |   |                     | 300    |   |   |   | 459 |   |   |   | - |   |
| Commercial real estate                    |   |                     | 915    |   |   |   | 1,855 |   |   |   | 3,124 |   |
| Construction and land development         |   |                     | 20,929 |   |   |   | 15,399 |   |   |   | 15,933 |   |
| Commercial business                       |   |                     | 2,941  |   |   |   | 4,551 |   |   |   | 5,464 |   |
| Consumer                                  |   |                     | 302    |   |   |   | 493 |   |   |   | 773 |   |
| Total loan originations                   |   |                     | 53,507 |   |   |   | 69,053 |   |   |   | 76,583 |   |
| Loans purchased                           |   |                     | -      |   |   |   | - |   |   |   | - |   |
| Total loans originated and acquired       |   |                     | 53,507 |   |   |   | 69,053 |   |   |   | 76,583 |   |
| Loans sold                                |   |                     | -      |   |   |   | - |   |   |   | - |   |
| Loans transferred to real estate owned    |   |                     | 1,692  |   |   |   | 3,142 |   |   |   | 1,651 |   |
| Loan principal repayments                 |   |                     | 52,456 |   |   |   | 51,868 |   |   |   | 49,281 |   |
| Total loans sold and principal repayments |   |                     | 54,148 |   |   |   | 55,010 |   |   |   | 50,932 |   |
| Decrease due to other items, net (2)      |   |                     | (962   | ) |   |   | (1,318 | ) |   |   | (831 | ) |
| Net (decrease) increase in loan portfolio |   | $                        | (1,603 | ) |   | $ | 12,725 |   |   | $ | 24,820 |   |

|   | (1) | Includes loan participations with other lenders. |
|--------|-----|--------------------------------------------------|

|   | (2) | Other items consist of loans in process, deferred fees and the allowance for loan losses.  The 2010 balance consisted primarily of the $1.1 million loan loss provision expense offset by an $148,000 accretion of deferred loan fee income.  The 2009 balance consisted primarily of the $1.4 million loan loss provision offset by an $85,000 accretion of deferred loan fee income.  The 2008 balance consisted primarily of  $1.1 million loan loss provision expense offset by a $253,000 accretion of deferred loan fee income. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                |   |                   |   |   |                   |   |   |              |   |   |                   |   |   |           |   |   |             |   |   |           |   |   |             |   |
|-------------------------------------|--------|------------------------|--------|--------|------------------------|--------|--------|-------------------|--------|--------|------------------------|--------|--------|----------------|--------|--------|------------------|--------|--------|----------------|--------|--------|------------------|--------|
|                                |   | September 30, 2010     |   |   | September 30, 2009     |   |
|                                |   | 30-89Days Overdue      |   |   | 90 or More DaysOverdue |   |   | 30-89Days Overdue |   |   | 90 or More DaysOverdue |   |
|                                |   | Numberof Loans         |   |   | PrincipalBalance       |   |   | Numberof Loans    |   |   | PrincipalBalance       |   |   | Numberof Loans |   |   | PrincipalBalance |   |   | Numberof Loans |   |   | PrincipalBalance |   |
|                                |   | (Dollars in thousands) |   |
|                                |   |                   |   |   |                   |   |   |              |   |   |                   |   |   |           |   |   |             |   |   |           |   |   |             |   |
| One- to four-family residential     |   |                   | 16     |   |                   | $      | 1,421  |              |   |   | 18                     |   |   | $              | 1,811  |   |             |   | 18     |           |   | $      | 2,257            |   |   |   | 10 |   |   | $ | 851 |   |
| Multi-family residential            |   |                   | -      |   |                   |   | -      |              |   |   | -                      |   |   |           | -      |   |             |   | -      |           |   |   | -                |   |   |   | - |   |   |   | - |   |
| Commercial real estate              |   |                   | -      |   |                   |   | -      |              |   |   | 5                      |   |   |           | 1,462  |   |             |   | 5      |           |   |   | 852              |   |   |   | 2 |   |   |   | 491 |   |
| Construction and land development   |   |                   | -      |   |                   |   | -      |              |   |   | 1                      |   |   |           | 206    |   |             |   | 1      |           |   |   | 273              |   |   |   | 1 |   |   |   | 640 |   |
| Commercial business                 |   |                   | -      |   |                   |   | -      |              |   |   | -                      |   |   |           | -      |   |             |   | -      |           |   |   | -                |   |   |   | - |   |   |   | - |   |
| Consumer                            |   |                   | -      |   |                   |   | -      |              |   |   | -                      |   |   |           | -      |   |             |   | 2      |           |   |   | 52               |   |   |   | - |   |   |   | - |   |
| Total delinquent loans              |   |                   | 16     |   |                   | $      | 1,421  |              |   |   | 24                     |   |   | $              | 3,479  |   |             |   | 26     |           |   | $      | 3,434            |   |   |   | 13 |   |   | $ | 1,982 |   |
| Delinquent loans to total net loans |   |                   | 0.56   | %      |                   |   |   |              |   |   | 1.36                   | %      |   |           |   |   |             |   | 1.34   | %              |   |   |             |   |   |   | 0.77 | % |   |   |   |   |
| Delinquent loans to total loans     |   |                   | 0.54   | %      |                   |   |   |              |   |   | 1.32                   | %      |   |           |   |   |             |   | 1.30   | %              |   |   |             |   |   |   | 0.75 | % |   |   |   |   |

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|                                                                   |   | September 30,          |       |
|------------------------------------------------------------------------|--------|------------------------|------------|
|                                                                   |   | 2010                   |       |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                   |   | (Dollars in thousands) |       |
| Non-accruing loans:                                                    |   |                   |       |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family residential                                        |   | $                      | -          |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Multi-family residential                                               |   |                   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial real estate                                                 |   |                   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Construction and land development                                      |   |                   | -          |   |   |   | 640 |   |   |   | 3,640 |   |   |   | 2,022 |   |   |   | - |   |
| Commercial business                                                    |   |                   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Consumer                                                               |   |                   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total non-accruing loans                                               |   |                   | -          |   |   |   | 640 |   |   |   | 3,640 |   |   |   | 2,022 |   |   |   | - |   |
| Accruing loans 90 days or more past due:                               |   |                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family residential                                        |   |                   | 1,811      |   |   |   | 851 |   |   |   | 152 |   |   |   | 502 |   |   |   | 151 |   |
| Multi-family residential                                               |   |                   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial real estate                                                 |   |                   | 1,462      |   |   |   | 491 |   |   |   | 244 |   |   |   | - |   |   |   | - |   |
| Construction                                                           |   |                   | 206        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial business                                                    |   |                   | -          |   |   |   | - |   |   |   | - |   |   |   | 69 |   |   |   | - |   |
| Consumer                                                               |   |                   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total accruing loans 90 days or more past due                          |   |                   | 3,479      |   |   |   | 1,342 |   |   |   | 396 |   |   |   | 571 |   |   |   | 151 |   |
| Total non-performing loans(1)                                          |   |                   | 3,479      |   |   |   | 1,982 |   |   |   | 4,036 |   |   |   | 2,593 |   |   |   | 151 |   |
| Real estate owned, net(2)                                              |   |                   | 3,197      |   |   |   | 3,622 |   |   |   | 1,488 |   |   |   | - |   |   |   | - |   |
| Total non-performing assets                                            |   | $                      | 6,676      |   |   | $ | 5,604 |   |   | $ | 5,524 |   |   | $ | 2,593 |   |   | $ | 151 |   |
| Total non-performing loans as a percentage of loans, net               |   |                   | 1.36       | %  |   |   |  0.77 | %  |   |   |  1.65 | %  |   |   |  1.18 | %  |   |   |  0.07 | %  |
| Total non-performing loans as a  percentage of total assets  |   |                   |  0.66 | %  |   |   |  0.39 | %  |   |   |  0.82 | %  |   |   |  0.55 | %  |   |   |  0.03 | %  |
| Total non-performing assets as a  percentage of total assets |   |                   |  1.26 | %  |   |   |  1.09 | %  |   |   |  1.13 | %  |   |   |  0.55 | %  |   |   |  0.03 | %  |

|   | (1) | Non-performing loans consist of non-accruing loans plus accruing loans 90 days or more past due. |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (2) | Real estate owned balances are shown net of related loss allowances and consist solely of real property. |
|--------|-----|----------------------------------------------------------------------------------------------------------|

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|                                                                                      |   | At or For the Year Ended September 30, |        |
|-------------------------------------------------------------------------------------------|--------|----------------------------------------|-------------|
|                                                                                      |   |                                   |        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                      |   | 2010                                   |        |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                                      |   | (Dollars in thousands)                 |        |
| Total loans outstanding at end of period                                                  |   | $                                      | 263,018     |   |   | $ | 265,063 |   |   | $ | 258,501 |   |   | $ | 235,742 |   |   | $ | 256,140 |   |
| Average loans outstanding                                                                 |   |                                   | 254,781     |   |   |   | 253,278 |   |   |   | 227,662 |   |   |   | 221,262 |   |   |   | 197,913 |   |
| Allowance for loan losses, beginning of period                                            |   |                                   | 2,732       |   |   |   | 1,591 |   |   |   | 1,011 |   |   |   | 618 |   |   |   | 558 |   |
| Provision for loan losses                                                                 |   |                                   | 1,110       |   |   |   | 1,403 |   |   |   | 1,084 |   |   |   | 395 |   |   |   | 60 |   |
| Charge-offs:                                                                              |   |                                   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family residential                                                           |   |                                   | 51          |   |   |   | 45 |   |   |   | - |   |   |   | 2 |   |   |   | - |   |
| Multi-family residential and commercial real estate                                       |   |                                   | -           |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Construction                                                                              |   |                                   | 640         |   |   |   | 217 |   |   |   | 504 |   |   |   | - |   |   |   | - |   |
| Commercial business                                                                       |   |                                   |        |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   | - |   |
| Consumer                                                                                  |   |                                   | -           |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total charge-offs                                                                         |   |                                   | 691         |   |   |   | 262 |   |   |   | 504 |   |   |   | 2 |   |   |   | - |   |
| Recoveries on loans previously charged off                                                |   |                                   | -           |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Allowance for loan losses, end of period                                                  |   | $                                      | 3,151       |   |   | $ | 2,732 |   |   | $ | 1,591 |   |   | $ | 1,011 |   |   | $ | 618 |   |
|                                                                                      |   |                                   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses as a percent of total loans                                     |   |                                   |  1.20  | %  |   |   |  1.03 | %  |   |   |  0.62 | %  |   |   |  0.43 | %  |   |   |  0.24 | %  |
| Allowance for loan losses as a percent of non-performing loans                            |   |                                   |  90.57 | %  |   |   |  137.77 | %  |   |   |  39.42 | %  |   |   |  38.97 | %  |   |   |  409.66 | %  |
| Ratio of net charge-offs during the period to average loans outstanding during the period |   |                                   |  0.27  | %  |   |   |  0.10 | %  |   |   |  0.22 | %  |   |   |   | *  |   |   |   | *  |

----

----

|                              |      |                   |   |     |   |   |      |   |   |     |   |   |      |   |   |     |   |   |      |   |   |     |   |   |      |   |   |     |   |   |
|-----------------------------------|-----------|------------------------|--------|----------|--------|--------|-----------|--------|--------|----------|--------|--------|-----------|--------|--------|----------|--------|--------|-----------|--------|--------|----------|--------|--------|-----------|--------|--------|----------|--------|--------|
|                              |      | September 30,          |   |
|                              |      | 2010                   |   |     | 2009   |   |      | 2008   |   |     | 2007   |   |      | 2006   |   |
|                              |      |                   |   |     | Loan   |   |      |   |   |     | Loan   |   |      |   |   |     | Loan   |   |      |   |   |     | Loan   |   |      |   |   |     | Loan   |   |
|                              |      |                   |   | Category |   |   |      |   |   | Category |   |   |      |   |   | Category |   |   |      |   |   | Category |   |   |      |   |   | Category |   |
|                              | Amount    |                   |   | as a %   |   |   | Amount    |   |   | as a %   |   |   | Amount    |   |   | as a %   |   |   | Amount    |   |   | as a %   |   |   | Amount    |   |   | as a %   |   |
|                              | of        |                   |   | of Total |   |   | of        |   |   | of Total |   |   | of        |   |   | of Total |   |   | of        |   |   | of Total |   |   | of        |   |   | of Total |   |
|                              | Allowance |                   |   | Loans    |   |   | Allowance |   |   | Loans    |   |   | Allowance |   |   | Loans    |   |   | Allowance |   |   | Loans    |   |   | Allowance |   |   | Loans    |   |
|                              |      |                   |   |     |   |   |      |   |   |     |   |   |      |   |   |     |   |   |      |   |   |     |   |   |      |   |   |     |   |
|                              |      | (Dollars in thousands) |   |
| One- to four-family residential   |      | $                      | 672    |     |   |   | 74.96     | %      |   | $        | 403    |   |      |   | 75.98  | %        |   | $      | 155       |   |   |     | 74.02  | %      |      | $      | 186    |     |   |   | 67.85 | % |   | $ | 148 |   |   |   | 60.69 | % |
| Multi-family residential          |      |                   | 4      |     |   |   | 1.52      | %      |   |     | 7      |   |      |   | 1.58   | %        |   |   | 4         |   |   |     | 1.08   | %      |      |   | 22     |     |   |   | 1.85 | % |   |   | 23 |   |   |   | 1.98 | % |
| Commercial real estate            |      |                   | 560    |     |   |   | 7.49      | %      |   |     | 193    |   |      |   | 7.51   | %        |   |   | 106       |   |   |     | 7.94   | %      |      |   | 179    |     |   |   | 7.64 | % |   |   | 102 |   |   |   | 4.42 | % |
| Construction and land development |      |                   | 1,909  |     |   |   | 15.46     | %      |   |     | 2,114  |   |      |   | 13.87  | %        |   |   | 1,323     |   |   |     | 16.49  | %      |      |   | 610    |     |   |   | 22.24 | % |   |   | 343 |   |   |   | 32.33 | % |
| Commercial business               |      |                   | 3      |     |   |   | 0.34      | %      |   |     | 7      |   |      |   | 0.84   | %        |   |   | 1         |   |   |     | 0.18   | %      |      |   | 12     |     |   |   | 0.07 | % |   |   | 2 |   |   |   | 0.09 | % |
| Consumer                          |      |                   | 1      |     |   |   | 0.23      | %      |   |     | 1      |   |      |   | 0.22   | %        |   |   | 2         |   |   |     | 0.29   | %      |      |   | 2      |     |   |   | 0.35 | % |   |   | - |   |   |   | 0.49 | % |
| Unallocated                       |      |                   | 2      |     |   |   | -         |   |   |     | 7      |   |      |   | -      |     |   |   | -         |   |   |     | -      |   |      |   | -      |     |   |   | - |   |   |   | - |   |   |   | - |   |
| Total allowance for loan losses   |      | $                      | 3,151  |     |   |   | 100.00    | %      |   | $        | 2,732  |   |      |   | 100.00 | %        |   | $      | 1,591     |   |   |     | 100.00 | %      |      | $      | 1,011  |     |   |   | 100.00 | % |   | $ | 618 |   |   |   | 100.00 | % |

----

----

|                                                  |   |           |          |
|-------------------------------------------------------|--------|----------------|---------------|
|                                                  |   | September 30,  |          |
|                                                  |   | 2010           |          |   | 2009 |   |   | 2008 |   |
|                                                  |   | Amortized      |          |   | Market |   |   | Amortized |   |   | Market |   |   | Amortized |   |   | Market |   |
|                                                  | Cost   |           |          | Value |   |   | Cost |   |   | Value |   |   | Cost |   |   | Value |   |
|                                                  |   |           |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   | (In Thousands) |          |
| Mortgage-backed securities - U.S. government agencies |   | $              | 78,036        |   |   | $ | 83,342 |   |   | $ | 84,892 |   |   | $ | 88,444 |   |   | $ | 78,359 |   |   | $ | 78,230 |   |
| Mortgage-backed securities - Non-agency               |   |           | 8,067         |   |   |   | 7,199 |   |   |   | 10,325 |   |   |   | 7,767 |   |   |   | 15,048 |   |   |   | 13,765 |   |
| U.S. governnment and agency obligations               |   |           | 95,978        |   |   |   | 97,995 |   |   |   | 125,923 |   |   |   | 126,141 |   |   |   | 123,572 |   |   |   | 121,183 |   |
| Municipal obligations                                 |   |           | 475           |   |   |   | 475 |   |   |   | 1,970 |   |   |   | 1,976 |   |   |   | 2,450 |   |   |   | 2,434 |   |
| Total debt securities                                 |   |           | 182,556       |   |   |   | 189,011 |   |   |   | 223,110 |   |   |   | 224,328 |   |   |   | 219,429 |   |   |   | 215,612 |   |
| FHLB stock                                            |   |           | 3,545         |   |   |   | 3,545 |   |   |   | 3,545 |   |   |   | 3,545 |   |   |   | 2,620 |   |   |   | 2,620 |   |
| FHLMC stock                                           |   |           | 8             |   |   |   | 8 |   |   |   | 16 |   |   |   | 47 |   |   |   | 26 |   |   |   | 45 |   |
| FNMA stock                                            |   |           | -             |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1 |   |   |   | 1 |   |
| Total investment and mortgage-backed securities       |   | $         |  186,109 |   |   | $  |  192,564 |   |   | $  |  226,671 |   |   | $  |  227,920 |   |   | $  |  222,076 |   |   | $  |  218,278 |   |

|                                   |   | Amounts at September 30, 2010 Which Mature In |   |
|----------------------------------------|--------|-----------------------------------------------|--------|
|                                   |   |                                          |   |   |   |   |   | Over One |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                                          |   |   | Weighted |   |   | Year |   |   | Weighted |   |   | Over Five |   |   | Weighted |   |   | Over |   |   | Weighted |   |
|                                   |   | One Year                                      |   |   | Average |   |   | Through |   |   | Average |   |   | Through |   |   | Average |   |   | Ten |   |   | Average |   |
|                                   |   | or Less                                       |   |   | Yield |   |   | Five Years |   |   | Yield |   |   | Ten Years |   |   | Yield |   |   | Years |   |   | Yield |   |
|                                   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   | (Dollars in Thousands)                        |   |
| Bonds and other debt securities:       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. government and agency obligations |   | $                                             | -      |   |   |   | - |   |   | $ | 9,000 |   |   |   | 1.22 | % |   | $ | 30,987 |   |   |   | 4.23 | % |   | $ | 55,991 |   |   |   | 4.49 | % |
| Municipal obligations                  |   |                                          | -      |   |   |   | - |   |   |   | 475 |   |   |   | 3.65 | % |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Mortgage-backed securities             |   |                                          | 539    |   |   |   | 5.69 | % |   |   | 13 |   |   |   | 6.84 | % |   |   | - |   |   |   | - |   |   |   | 85,551 |   |   |   | 5.37 | % |
| Total                                  |   | $                                             | 539    |   |   |   | 5.69 | % |   | $ | 9,488 |   |   |   | 1.35 | % |   | $ | 30,987 |   |   |   | 4.23 | % |   | $ | 141,542 |   |   |   | 5.02 | % |

----

|                                              |   | At or For the            |    |
|---------------------------------------------------|--------|--------------------------|---------|
|                                              |   | Year Ended September 30, |    |
|                                              |   |                     |    |   |   |   |   |   |   |
|                                              |   | 2010                     |    |   | 2009 |   |   | 2008 |   |
|                                              |   | (Dollars in Thousands)   |    |
| Mortgage-backed securities at beginning of period |   | $                        | 95,217  |   |   | $ | 93,407 |   |   | $ | 54,026 |   |
| Purchases                                         |   |                     | 11,853  |   |   |   | 17,717 |   |   |   | 23,324 |   |
| Securities acquired through redemption in kind    |   |                     | -       |   |   |   | - |   |   |   | 24,755 |   |
| Other than temporary impairment of securities     |   |                     | (560    | ) |   |   | (3,272 | ) |   |   | (726 | ) |
| Maturities and repayments                         |   |                     | (20,810 | ) |   |   | (15,103 | ) |   |   | (8,270 | ) |
| Adoption of FASB ASC 320-10-35-33 through 35-34   |   |                     | -       |   |   |   | 1,148 |   |   |   | - |   |
| Amortizations of premiums and discounts, net      |   |                     | 403     |   |   |   | 1,320 |   |   |   | 298 |   |
| Mortgage-backed securities at end of period       |   | $                        | 86,103  |   |   | $ | 95,217 |   |   | $ | 93,407 |   |
| Weighted average yield at end of period           |   |                     | 5.37    | % |   |   | 5.73 | % |   |   | 6.06 | % |

----

|                       |   | September 30,          |    |
|----------------------------|--------|------------------------|---------|
|                       |   | 2010                   |    |   | 2009 |   |   | 2008 |   |
|                       |   | Amount                 |    |   | % |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |
|                       |   | (Dollars in thousands) |    |
| Certificate accounts:      |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less than 1.00%            |   | $                      | 4,786   |   |   |   | 1.03 | % |   | $ | - |   |   |   | - |   |   | $ | - |   |   |   | - |   |
| 1.00% - 1.99%              |   |                   | 90,381  |   |   |   | 19.46 | % |   |   | 37,235 |   |   |   | 8.61 | % |   |   | - |   |   |   | - |   |
| 2.00% - 2.99%              |   |                   | 114,170 |   |   |   | 24.58 | % |   |   | 88,146 |   |   |   | 20.39 | % |   |   | 6,509 |   |   |   | 1.73 | % |
| 3.00% - 3.99%              |   |                   | 28,962  |   |   |   | 6.24 | % |   |   | 69,530 |   |   |   | 16.08 | % |   |   | 58,617 |   |   |   | 15.56 | % |
| 4.00% - 4.99%              |   |                   | 21,096  |   |   |   | 4.54 | % |   |   | 34,353 |   |   |   | 7.95 | % |   |   | 89,650 |   |   |   | 23.79 | % |
| 5.00% - 5.99%              |   |                   | 30,695  |   |   |   | 6.61 | % |   |   | 30,924 |   |   |   | 7.15 | % |   |   | 60,314 |   |   |   | 16.00 | % |
| Total certificate accounts |   |                   | 290,090 |   |   |   | 62.46 | % |   |   | 260,188 |   |   |   | 60.18 | % |   |   | 215,090 |   |   |   | 57.08 | % |
|                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transaction accounts:      |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                    |   |                   | 69,901  |   |   |   | 15.05 | % |   |   | 66,968 |   |   |   | 15.49 | % |   |   | 67,921 |   |   |   | 18.03 | % |
| Checking:                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing           |   |                   | 26,146  |   |   |   | 5.63 | % |   |   | 27,311 |   |   |   | 6.32 | % |   |   | 25,403 |   |   |   | 6.74 | % |
| Non-interest bearing       |   |                   | 2,496   |   |   |   | 0.54 | % |   |   | 2,558 |   |   |   | 0.59 | % |   |   | 1,932 |   |   |   | 0.51 | % |
| Money market               |   |                   | 75,822  |   |   |   | 16.32 | % |   |   | 75,349 |   |   |   | 17.42 | % |   |   | 66,484 |   |   |   | 17.64 | % |
| Total transaction accounts |   |                   | 174,365 |   |   |   | 37.54 | % |   |   | 172,186 |   |   |   | 39.82 | % |   |   | 161,740 |   |   |   | 42.92 | % |
| Total deposits             |   | $                      | 464,455 |   |   |   | 100.00 | % |   | $ | 432,374 |   |   |   | 100.00 | % |   | $ | 376,830 |   |   |   | 100.00 | % |

|                                                |   | Year Ended September 30, |    |
|-----------------------------------------------------|--------|--------------------------|---------|
|                                                |   | 2010                     |    |   | 2009 |   |   | 2008 |   |
|                                                |   | Average Balance          |    |   | Interest |   |   | Average Rate |   |   | Average Balance |   |   | Interest |   |   | Average Rate |   |   | Average |   |   | Interest |   |   | Average Rate |   |
|                                                |   |                     |    |   | Expense |   |   | Paid |   |   |   |   |   | Expense |   |   | Paid |   |   | Balance |   |   | Expense |   |   | Paid |   |
|                                                |   | (Dollars in Thousands)   |    |   |   |   |
| Savings                                             |   | $                        | 69,363  |   |   | $ | 1,230 |   |   |   | 1.77 | % |   | $ | 65,392 |   |   | $ | 1,532 |   |   |   | 2.34 | % |   | $ | 66,636 |   |   | $ | 1,681 |   |   |   | 2.52 | % |
| Interest-bearing checking and money market accounts |   |                     | 105,724 |   |   |   | 1,119 |   |   |   | 1.06 | % |   |   | 96,806 |   |   |   | 1,863 |   |   |   | 1.92 | % |   |   | 92,418 |   |   |   | 2,793 |   |   |   | 3.02 | % |
| Certificate accounts                                |   |                     | 264,082 |   |   |   | 6,321 |   |   |   | 2.39 | % |   |   | 247,791 |   |   |   | 8,585 |   |   |   | 3.46 | % |   |   | 204,981 |   |   |   | 8,922 |   |   |   | 4.35 | % |
| Total interest-bearing  deposits          |   |                     | 439,169 |   |   | $ | 8,670 |   |   |   | 1.97 | % |   |   | 409,989 |   |   | $ | 11,980 |   |   |   | 2.92 | % |   |   | 364,035 |   |   | $ | 13,396 |   |   |   | 3.68 | % |
|                                                |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest bearing deposits                       |   |                     | 2,241   |   |   |   |   |   |   |   |   |   |   |   | 3,409 |   |   |   |   |   |   |   |   |   |   |   | 4,824 |   |   |   |   |   |   |   |   |   |
| Total deposits                                      |   | $                        | 441,410 |   |   |   |   |   |   |   | 1.96 | % |     | $ | 413,398 |   |   |   |   |   |   |   | 2.90 | % |     | $ | 368,859 |   |   |   |   |   |   |   | 3.63 | % |

----

|                       |   | Year Ended September 30, |     |
|----------------------------|--------|--------------------------|----------|
|                       |   | 2010                     |     |   | 2009 |   |   | 2008 |   |
|                       |   | (In Thousands)           |     |
| Deposits made              |   | $                        | 478,078  |   |   | $ | 528,953 |   |   | $ | 497,527 |   |
| Withdrawals                |   |                     | (451,630 | ) |   |   | (480,442 | ) |   |   | (482,786 | ) |
| Interest credited          |   |                     | 5,633    |   |   |   | 7,033 |   |   |   | 8,051 |   |
| Total increase in deposits |   | $                        | 32,081   |   |   | $ | 55,544 |   |   | $ | 22,792 |   |

|                       |   | Balance at September 30, 2010                  |    |
|----------------------------|--------|------------------------------------------------|---------|
|                       |   | Maturing in the 12 Months Ending September 30, |    |
| Certificates of Deposit    |   | 2011                                           |    |   | 2012 |   |   | 2013 |   |   | Thereafter |   |   | Total |   |
|                       |   | (In Thousands)                                 |    |
| Less than 1.00%            |   | $                                              | 4,786   |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 4,786 |   |
| 1.00% - 1.99%              |   |                                           | 82,764  |   |   |   | 6,894 |   |   |   | 723 |   |   |   | - |   |   | $ | 90,381 |   |
| 2.00% - 2.99%              |   |                                           | 101,797 |   |   |   | 5,144 |   |   |   | 6,432 |   |   |   | 797 |   |   |   | 114,170 |   |
| 3.00% - 3.99%              |   |                                           | 7,385   |   |   |   | 1,692 |   |   |   | 298 |   |   |   | 19,587 |   |   |   | 28,962 |   |
| 4.00% - 4.99%              |   |                                           | 9,829   |   |   |   | 848 |   |   |   | 7,607 |   |   |   | 2,812 |   |   |   | 21,096 |   |
| 5.00% - 5.99%              |   |                                           | 13,380  |   |   |   | 11,693 |   |   |   | 5,622 |   |   |   | - |   |   |   | 30,695 |   |
| Total certificate accounts |   | $                                              | 219,941 |   |   | $ | 26,271 |   |   | $ | 20,682 |   |   | $ | 23,196 |   |   | $ | 290,090 |   |

| Quarter Ending:                                                 |   | Amount                 |    |   | WeightedAvg Rate |   |
|-----------------------------------------------------------------|--------|------------------------|---------|--------|------------------|--------|
|                                                            |   | (Dollars in Thousands) |    |
| December 31, 2010                                               |   | $                      | 15,037  |   |             |   | 2.18 | % |
| March 31, 2011                                                  |   |                   | 27,825  |   |             |   | 2.17 | % |
| June 30, 2011                                                   |   |                   | 32,893  |   |             |   | 2.03 | % |
| September 30, 2011                                              |   |                   | 12,442  |   |             |   | 2.00 | % |
| After September 30, 2011                                        |   |                   | 24,796  |   |             |   | 3.47 | % |
| Total certificates of deposit with balances of $100,000 or more |   | $                      | 112,993 |   |             |   | 2.40 | % |

----

|                                                               |   |                                   |   |   |   |   |   |   |   |
|--------------------------------------------------------------------|--------|----------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                               |   | At or For the Year Ended September 30, |   |
|                                                               |   | 2010                                   |   |   | 2009   |   |   | 2008   |   |
|                                                               |   | (Dollars in Thousands)                 |   |
| FHLB advances:                                                     |   |                                   |   |   |   |   |   |   |   |
| Average balance outstanding                                        |   | $                                      | 16,676 |   |   | $      | 24,243 |   |   | $ | 27,638 |   |
| Maximum amount outstanding at any month-end during the period |   |                                   | 25,304 |   |   |   | 47,694 |   |   |   | 33,705 |   |
| Balance outstanding at end of period                               |   |                                   | 615    |   |   |   | 19,659 |   |   |   | 31,701 |   |
| Average interest rate during the period                            |   |                                   | 4.47%  |   |   |   | 3.53%  |   |   |   | 4.55% |   |
| Weighted average interest rate at end of period                    |   |                                   | 1.02%  |   |   |   | 4.35%  |   |   |   | 3.98% |   |

----

----

|   | ● | A new independent consumer financial protection bureau will be established within the Federal Reserve Board, empowered to exercise broad regulatory, supervisory and enforcement authority with respect to both new and existing consumer financial protection laws. Smaller financial institutions, like Prudential Savings Bank, will be subject to the supervision and enforcement of their primary federal banking regulator with respect to the federal consumer financial protection laws. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | ● | Tier 1 capital treatment for “hybrid” capital items like trust preferred securities is eliminated subject to various grandfathering and transition rules.                                                                                                                                                                                                                                                                                                                            |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | ● | The current prohibition on payment of interest on demand deposits was repealed, effective July 21, 2011.                                                                                                                                                                                                                                                                                                                                                                                         |

----

|   | ● | Deposit insurance is permanently increased to $250,000 and unlimited deposit insurance for non-interest-bearing transaction accounts extended through January 1, 2013.                                                                                                                                                                                                   |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                                                     |
|   | ● | The deposit insurance assessment base calculation will equal the depository institution’s total assets minus the sum of its average tangible equity during the assessment period.                                                                                                                                                                                  |
|   |    |                                                                                                                                                                                                                                                                                                                                                                     |
|   | ● | The minimum reserve ratio of the Deposit Insurance Fund increased to 1.35 percent of estimated annual insured deposits or assessment base; however, the Federal Deposit Insurance Corporation is directed to “offset the effect” of the increased reserve ratio for insured depository institutions with total consolidated assets of less than $10 billion. |

|   | ● | The Federal Deposit Insurance Act was amended to direct federal regulators to require depository institution holding companies to serve as a source of strength for their depository institution subsidiaries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | ● | The Securities and Exchange Commission is authorized to adopt rules requiring public companies to make their proxy materials available to shareholders for nomination of their own candidates for election to the board of directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | ● | Public companies will be required to provide their shareholders with a non-binding vote: (i) at least once every three years on the compensation paid to executive officers, and (ii) at least once every six years on whether they should have a “say on pay” vote every one, two or three years.                                                                                                                                                                                                                                                                                                                                                                                    |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | ● | A separate, non-binding shareholder vote will be required regarding golden parachutes for named executive officers when a shareholder vote takes place on mergers, acquisitions, dispositions or other transactions that would trigger the parachute payments.                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | ● | Securities exchanges will be required to prohibit brokers from using their own discretion to vote shares not beneficially owned by them for certain “significant” matters, which include votes on the election of directors, executive compensation matters, and any other matter determined to be significant.                                                                                                                                                                                                                                                                                                                                                                       |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | ● | Stock exchanges will be prohibited from listing the securities of any issuer that does not have a policy providing for (i) disclosure of its policy on incentive compensation payable on the basis of financial information reportable under the securities laws, and (ii) the recovery from current or former executive officers, following an accounting restatement triggered by material noncompliance with securities law reporting requirements, of any incentive compensation paid erroneously during the three-year period preceding the date on which the restatement was required that exceeds the amount that would have been paid on the basis of the restated financial information. |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | ● | Disclosure in annual proxy materials will be required concerning the relationship between the executive compensation paid and the financial performance of the issuer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | ● | Item 402 of Regulation S-K promulgated by the Securities and Exchange Commission will be amended to require companies to disclose the ratio of the Chief Executive Officer’s annual total compensation to the median annual total compensation of all other employees.                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

|   | ● | Smaller reporting companies are exempt from complying with the internal control auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                           |   | Total              |   | Tier 1             |   | Tier 1           |
|--------------------------------|--------|--------------------|--------|--------------------|--------|------------------|
| Capital Category               |   | Risk-Based Capital |   | Risk-Based Capital |   | Leverage Capital |
| Well capitalized               |   | 10% or more        |   | 6% or more         |   | 5% or more       |
| Adequately capitalized         |   | 8% or more         |   | 4% or more         |   | 4% or more       |
| Undercapitalized               |   | Less than 8%       |   | Less than 4%       |   | Less than 4%     |
| Significantly undercapitalized |   | Less than 6%       |   | Less than 3%       |   | Less than 3%     |

----

|                                     |   |   |   |   |              |   |   |                   |   |   |              |   |   | To Be            |   |
|------------------------------------------|--------|--------|--------|--------|-------------------|--------|--------|------------------------|--------|--------|-------------------|--------|--------|------------------|--------|
|                                     |   |   |   |   |              |   |   |                   |   |   |              |   |   | Well Capitalized |   |
|                                     |   |   |   |   |              |   |   |                   |   |   |              |   |   | Under Prompt     |   |
|                                     |   |   |   |   |              |   |   | Required for Capital   |   |   | Corrective Action |   |
|                                     |   | Actual |   |   | Adequacy Purposes |   |   | Provisions             |   |
|                                     |   | Amount |   |   | Ratio             |   |   | Amount                 |   |   | Ratio             |   |   | Amount           |   |   | Ratio |   |
|                                     |   |   |   |   |              |   |   | (Dollars in thousands) |   |   |              |   |   |             |   |
|                                     |   |   |   |   |              |   |   |                   |   |   |              |   |   |             |   |   |   |   |
| Tier 1 capital (to average assets)       |   |   |   |   |              |   |   |                   |   |   |              |   |   |             |   |   |   |   |
| Company                                  |   | $      | 55,327 |   |              |   | 10.27  | %                      |   | $      | 21,541            |   |   |             | 4.0    | % |   |   | N/A |   |   |   | N/A |   |
| Bank                                     |   |   | 50,932 |   |              |   | 9.46   |                   |   |   | 21,541            |   |   |             | 4.0    |   |   | $ | 26,926 |   |   |   | 5.0 | % |
| Tier 1 capital (to risk-weighted assets) |   |   |   |   |              |   |   |                   |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |
| Company                                  |   |   | 55,327 |   |              |   | 23.12  |                   |   |   | 9,573             |   |   |             | 4.0    |   |   |   | N/A |   |   |   | N/A |   |
| Bank                                     |   |   | 50,932 |   |              |   | 21.28  |                   |   |   | 9,573             |   |   |             | 4.0    |   |   |   | 14,359 |   |   |   | 6.0 |   |
| Total capital (to risk-weighted assets)  |   |   |   |   |              |   |   |                   |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |
| Company                                  |   |   | 58,320 |   |              |   | 24.37  |                   |   |   | 19,146            |   |   |             | 8.0    |   |   |   | N/A |   |   |   | N/A |   |
| Bank                                     |   |   | 53,925 |   |              |   | 22.53  |                   |   |   | 19,146            |   |   |             | 8.0    |   |   |   | 23,932 |   |   |   | 10.0 |   |

|   |   |   |
|--------|--------|--------|
|   | ● | acquiring or retaining a majority interest in a subsidiary; |
|--------|---------|-------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   | ● | investing as a limited partner in a partnership the sole purpose of which is direct or indirect investment in the acquisition, rehabilitation or new construction of a qualified housing project, provided that such limited partnership investments may not exceed 2% of the bank’s total assets; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   | ● | acquiring up to 10% of the voting stock of a company that solely provides or reinsures directors’, trustees’ and officers’ liability insurance coverage or bankers’ blanket bond group insurance coverage for insured depository institutions; and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |    |                                                                                                  |
|--------|---------|-------------------------------------------------------------------------------------------------------|
|   | ● | acquiring or retaining the voting shares of a depository institution if certain requirements are met. |

----

----

----

|   | ● | banking or managing or controlling banks and other subsidiaries authorized under the Bank Holding Company Act; and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------|

|   | ● | any Bank Holding Company Act activity the Federal Reserve Board has determined to be so closely related that it is incidental to banking or managing or controlling banks. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | ● | investing in the stock of one or more financial institution subsidiaries; |
|--------|---------|---------------------------------------------------------------------------|

|   | ● | acquiring one or more additional financial institution subsidiaries into a subsidiary of the holding company; |
|--------|---------|---------------------------------------------------------------------------------------------------------------|

|   | ● | merging with or acquiring another holding company, one of whose subsidiaries is a financial institution subsidiary; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------|

|   | ● | investing in a corporation the capital stock of which is available for purchase by a savings bank under federal law or under the Pennsylvania Banking Code; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | engaging in such activities as are permitted, by statute or regulation, to a holding company of a federally chartered insured mutual institution under federal law; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | engaging in such other activities as may be permitted by the Pennsylvania Department of Banking. |
|--------|---------|--------------------------------------------------------------------------------------------------|

----

----

----

----

|                        |   |         |   |       |           |   | Net Book Value  |   |      |      |   |
|-----------------------------|--------|--------------|--------|------------|----------------|--------|-----------------|--------|-----------|-----------|--------|
|                        |   |         |   | Date of    |           |   | of Property and |   |      |      |   |
|                        |   |         |   | Lease      |           |   | Leasehold       |   |      | Amount of |   |
| Description/Address         |   | Leased/Owned |   | Expiration |           |   | Improvements    |   |      | Deposits  |   |
|                        |   |         |   |       |           |   | (In Thousands)  |   |
| Main Office                 |   | Owned        |   |       | N/A            |   |            | $      | 439       |      |   | $ | 226,114 |   |
| 1834 Oregon Avenue          |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Philadelphia, PA 19145-4725 |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
|                        |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Snyder Branch               |   | Owned        |   |       | N/A            |   |            |   | 6         |      |   |   | 24,771 |   |
| 2101 South 19th Street      |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Philadelphia, PA 19145-3709 |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
|                        |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Center City Branch          |   | Owned        |   |       | N/A            |   |            |   | 18        |      |   |   | 49,783 |   |
| 112 South 19th Street       |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Philadelphia, PA 19103-4667 |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
|                        |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Broad Street Branch         |   | Owned        |   |       | N/A            |   |            |   | 222       |      |   |   | 57,280 |   |
| 1722 South Broad Street     |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Philadelphia, PA 19145-2388 |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
|                        |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Pennsport Branch            |   | Owned        |   |       | N/A            |   |            |   | 51        |      |   |   | 44,960 |   |
| 238A Moore Street           |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Philadelphia, PA 19148-1925 |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
|                        |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Drexel Hill Branch          |   | Owned        |   |       | N/A            |   |            |   | 87        |      |   |   | 44,916 |   |
| 601 Morgan Avenue           |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Drexel Hill, PA 19026-3105  |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
|                        |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Old City Branch             |   | Leased       |   |       | May 2012  |   |            |   | 306  |      |   |   | 16,631  |   |
| 28 North 3rd Street         |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Philadelphia, PA 19106-2108 |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
|                        |   |         |   |       |           |   |            |   |      |      |   |   |   |   |
| Total                       |   |         |   |       |           |   |            | $      | 1,129     |      |   | $ | 464,455 |   |

----

----

| Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
|---------|--------------------------------------------------------------------------------------------------------------------|

|                         |   | Stock Price |   |   | Cashdividendsper share |   |
|------------------------------|--------|-------------|--------|--------|------------------------|--------|
| Quarter ended:               |   | High        |   |   | Low                    |   |   |   |
| September 30, 2010           |   | $           | 7.90   |   |                   | $      | 5.52 |   |   | $ | 0.05 |   |
| June 30, 2010                |   |        | 8.55   |   |                   |   | 5.52 |   |   |   | 0.05 |   |
| March 31, 2010               |   |        | 10.25  |   |                   |   | 7.60 |   |   |   | 0.05 |   |
| December  31, 2009 |   |        | 10.45  |   |                   |   | 9.06 |   |   |   | 0.05 |   |

|                         |   | Stock Price |   |   | Cashdividendsper share |   |
|------------------------------|--------|-------------|--------|--------|------------------------|--------|
| Quarter ended:               |   | High        |   |   | Low                    |   |   |   |
| September 30, 2009           |   | $           | 12.20  |   |                   | $      | 10.00 |   |   | $ | 0.05 |   |
| June 30, 2009                |   |        | 12.51  |   |                   |   | 11.40 |   |   |   | 0.05 |   |
| March 31, 2009               |   |        | 11.77  |   |                   |   | 9.59 |   |   |   | 0.05 |   |
| December  31, 2008 |   |        | 10.59  |   |                   |   | 7.50 |   |   |   | 0.05 |   |

----

|                                                                             |   | At September 30,         |    |
|----------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                             |   | 2010                     |    |   | 2009 |   |   | 2008 (1) |   |   | 2007 (1) |   |   | 2006 |   |
|                                                                             |   | (Dollars in Thousands)   |    |
| Selected Financial and Other Data:                                               |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                     |   | $                        | 529,080 |   |   | $ | 514,761 |   |   | $ | 489,537 |   |   | $ | 474,399 |   |   | $ | 472,381 |   |
| Cash and cash equivalents                                                        |   |                     | 66,524  |   |   |   | 13,669 |   |   |   | 9,454 |   |   |   | 12,269 |   |   |   | 13,428 |   |
| Investment and mortgage-backed securities:                                       |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Held-to-maturity                                                     |   |                     | 112,673 |   |   |   | 160,126 |   |   |   | 163,303 |   |   |   | 180,316 |   |   |   | 182,444 |   |
|   Available-for-sale                                                   |   |                     | 72,425  |   |   |   | 62,407 |   |   |   | 55,106 |   |   |   | 46,892 |   |   |   | 43,362 |   |
| Loans receivable, net                                                            |   |                     | 255,091 |   |   |   | 256,694 |   |   |   | 243,969 |   |   |   | 219,149 |   |   |   | 219,418 |   |
| Deposits                                                                         |   |                     | 464,455 |   |   |   | 432,374 |   |   |   | 376,830 |   |   |   | 354,038 |   |   |   | 347,292 |   |
| FHLB advances                                                                    |   |                     | 615     |   |   |   | 19,659 |   |   |   | 31,701 |   |   |   | 33,743 |   |   |   | 31,784 |   |
| Total equity, substantially restricted                                           |   |                     | 56,999  |   |   |   | 55,857 |   |   |   | 68,487 |   |   |   | 80,558 |   |   |   | 87,448 |   |
| Banking offices                                                                  |   |                     | 7       |   |   |   | 7 |   |   |   | 7 |   |   |   | 7 |   |   |   | 6 |   |
|                                                                             |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                             |   | Year Ended September 30, |    |
|                                                                             |   | 2010                     |    |   | 2009 |   |   | 2008 (1) |   |   | 2007 (1) |   |   | 2006 |   |
|                                                                             |   | (Dollars in Thousands)   |    |
| Selected Operating Data:                                                         |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest income                                                            |   | $                        | 25,109  |   |   | $ | 27,386 |   |   | $ | 26,408 |   |   | $ | 26,907 |   |   | $ | 24,542 |   |
| Total interest expense                                                           |   |                     | 9,416   |   |   |   | 12,942 |   |   |   | 14,654 |   |   |   | 14,784 |   |   |   | 11,935 |   |
| Net interest income                                                              |   |                     | 15,693  |   |   |   | 14,444 |   |   |   | 11,754 |   |   |   | 12,123 |   |   |   | 12,607 |   |
| Provision for loan losses                                                        |   |                     | 1,110   |   |   |   | 1,403 |   |   |   | 1,084 |   |   |   | 395 |   |   |   | 60 |   |
| Net interest income after provision for loan losses                         |   |                     | 14,583  |   |   |   | 13,041 |   |   |   | 10,670 |   |   |   | 11,728 |   |   |   | 12,547 |   |
| Total non-interest income (charges)                                              |   |                     | 387     |   |   |   | (2,452 | ) |   |   | (5,285 | ) |   |   | 1,046 |   |   |   | 938 |   |
| Total non-interest expense                                                       |   |                     | 10,794  |   |   |   | 11,065 |   |   |   | 8,753 |   |   |   | 7,973 |   |   |   | 7,875 |   |
| Income (loss) before income taxes                                                |   |                     | 4,176   |   |   |   | (476 | ) |   |   | (3,368 | ) |   |   | 4,801 |   |   |   | 5,610 |   |
| Income taxes                                                                     |   |                     | 1,046   |   |   |   | 350 |   |   |   | 762 |   |   |   | 1,393 |   |   |   | 1,773 |   |
| Net income (loss)                                                                |   | $                        | 3,130   |   |   | $ | (826 | ) |   | $ | (4,130 | ) |   | $ | 3,408 |   |   | $ | 3,837 |   |
| Basic earnings (loss) per share                                                  |   | $                        | 0.33    |   |   | $ | (0.08 | ) |   | $ | (0.38 | ) |   | $ | 0.30 |   |   | $ | 0.32 |   |
| Diluted earnings (loss) per share                                                |   | $                   | 0.32    |   |   | $ | (0.08 | ) |   | $  | (0.38 | )  |   | $  | 0.30 |   |   | $ | 0.32 |   |
| Dividends paid per common share                                             |   | $                        | 0.05    |   |   | $ | 0.05 |   |   | $ | 0.05 |   |   | $ | 0.05 |   |   | $ | 0.05 |   |
|                                                                             |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected Operating Ratios(2):                                                    |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average yield earned on interest-earning assets                                  |   |                     | 5.08    | % |   |   | 5.64 | % |   |   | 5.75 | % |   |   | 5.92 | % |   |   | 5.58 | % |
| Average rate paid on interest-bearing liabilities                                |   |                     | 2.06    |   |   |   | 2.95 |   |   |   | 3.73 |   |   |   | 3.93 |   |   |   | 3.34 |   |
| Average interest rate spread(3)                                                  |   |                     | 3.02    |   |   |   | 2.69 |   |   |   | 2.02 |   |   |   | 1.99 |   |   |   | 2.24 |   |
| Net interest margin(3)                                                           |   |                     | 3.17    |   |   |   | 2.97 |   |   |   | 2.56 |   |   |   | 2.67 |   |   |   | 2.87 |   |
| Average interest-earning assets to average interest-bearing liabilities     |   |                     | 108.04  |   |   |   | 110.64 |   |   |   | 116.77 |   |   |   | 120.64 |   |   |   | 122.94 |   |
| Net interest income after provision for loan losses to non-interest expense |   |                     | 135.73  |   |   |   | 117.86 |   |   |   | 121.60 |   |   |   | 147.10 |   |   |   | 159.33 |   |
| Total non-interest expense to average assets                                     |   |                     | 2.77    |   |   |   | 2.17 |   |   |   | 1.88 |   |   |   | 1.70 |   |   |   | 1.73 |   |
| Efficiency ratio(4)                                                              |   |                     | 67.13   |   |   |   | 92.27 |   |   |   | 135.31 |   |   |   | 60.54 |   |   |   | 58.14 |   |
| Return on average assets                                                         |   |                     | 0.80    |   |   |   | (0.16 | ) |   |   | (0.89 | ) |   |   | 0.72 |   |   |   | 0.84 |   |
| Return on average equity                                                         |   |                     | 7.44    |   |   |   | (1.32 | ) |   |   | (5.12 | ) |   |   | 4.01 |   |   |   | 4.26 |   |
| Average equity to average assets                                                 |   |                     | 10.78   |   |   |   | 12.28 |   |   |   | 15.86 |   |   |   | 18.06 |   |   |   | 19.82 |   |

----

|                                                                |   | At or For theYear Ended September 30, |   |
|---------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                |   | 2010                                  |   |   | 2009 |   |   | 2008 (1) |   |   | 2007 (1) |   |   | 2006 |   |
| Asset Quality Ratios(5):                                            |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing loans as a percent of total loans receivable(6) |   |                                  | 1.36   | % |   |   | 0.77 | % |   |   | 1.65 | % |   |   | 1.18 | % |   |   | 0.07 | % |
| Non-performing assets as a percent of total assets(6)          |   |                                  | 1.26   |   |   |   | 1.09 |   |   |   | 1.13 |   |   |   | 0.55 |   |   |   | 0.03 |   |
| Allowance for loan losses as a percent of non-performing loans |   |                                  | 90.57  |   |   |   | 137.77 |   |   |   |  39.42 |   |   |   |  38.97 |   |   |   | 409.66 |   |
| Net charge-offs to average loans receivable                         |   |                                  | 0.30   |   |   |   | 0.10 |   |   |   | 0.21 |   |   |   | -- |   |   |   | -- |   |
|                                                                |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital Ratios(5):                                                  |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 leverage ratio                                               |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Company                                                             |   |                                  | 10.27  | % |   |   | 10.86 | % |   |   | 14.49 |   |   |   | 16.99 | % |   |   | 18.64 | % |
| Bank                                                                |   |                                  | 9.46   |   |   |   | 9.99 |   |   |   | 13.14 |   |   |   | 15.43 |   |   |   | 14.74 |   |
| Tier 1 risk-based capital ratio                                     |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Company                                                             |   |                                  | 23.12  | % |   |   | 24.59 | % |   |   | 31.2 | % |   |   | 37.69 | % |   |   | 39.23 | % |
| Bank                                                                |   |                                  | 21.28  |   |   |   | 22.61 |   |   |   | 28.7 |   |   |   | 34.02 |   |   |   | 31.12 |   |
| Total risk-based capital ratio                                      |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Company                                                             |   |                                  | 24.37  | % |   |   | 25.79 | % |   |   | 31.92 | % |   |   | 38.24 | % |   |   | 39.68 | % |
| Bank                                                                |   |                                  | 22.53  |   |   |   | 23.81 |   |   |   | 29.46 |   |   |   | 34.57 |   |   |   | 31.56 |   |

----

| (1) | Amounts for 2007 and 2008 were restated during the 2009 period. |
|-----|-----------------------------------------------------------------|

| (2) | With the exception of end of period ratios, all ratios are based on average monthly balances during the indicated periods. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (3) | Average interest rate spread represents the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities, and net interest margin represents net interest income as a percentage of average interest-earning assets. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The efficiency ratio represents the ratio of non-interest expense divided by the sum of net interest income and non-interest income. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Asset quality ratios and capital ratios are end of period ratios, except for net charge-offs to average loans receivable. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (6) | Non-performing assets consist of non-performing loans and real estate owned.  Non-performing loans consist of all loans 90 days or more past due and loans in excess of 90 days delinquent and still accruing interest.  It is our policy to cease accruing interest on all loans, other than single-family residential mortgage loans, 90 days or more past due.  Real estate owned consists of real estate acquired through foreclosure and real estate acquired by acceptance of a deed-in-lieu of foreclosure. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | ● | Levels of past due, classified and non-accrual loans, troubled debt restructurings and modifications |
|--------|---------|------------------------------------------------------------------------------------------------------|

|   | ● | Nature and volume of loans |
|--------|---------|----------------------------|

|   | ● | Changes in lending policies and procedures, underwriting standards, collections, charge-offs and recoveries and for commercial loans, the level of loans being approved with exceptions to lending policy |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Experience, ability and depth of management and staff |
|--------|---------|-------------------------------------------------------|

|   | ● | National and local economic and business conditions, including various market segments |
|--------|---------|----------------------------------------------------------------------------------------|

|   | ● | Quality of the Company’s loan review system and degree of Board oversight |
|--------|---------|---------------------------------------------------------------------------------|

|   | ● | Concentrations of credit and changes in levels of such concentrations |
|--------|---------|-----------------------------------------------------------------------|

|   | ● | Effect of external factors on the level of estimated credit losses in the current portfolio |
|--------|---------|---------------------------------------------------------------------------------------------|

----

----

----

----

|                                         |   | Total          |   |   | Amount of Commitment Expiration - Per Period |   |
|----------------------------------------------|--------|----------------|--------|--------|----------------------------------------------|--------|
|                                         |   | Amounts        |   |   | To                                           |   |   | 1-3 |   |   | 4-5 |   |   | After 5 |   |
|                                         |   | Committed      |   |   | 1 Year                                       |   |   | Years |   |   | Years |   |   | Years |   |
|                                         |   | (In Thousands) |   |
| Letters of credit                            |   | $              | 676    |   |                                         | $      | 150 |   |   | $ | 526 |   |   | $ | - |   |   | $ | - |   |
| Lines of credit (1)                          |   |           | 6,863  |   |                                         |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,863 |   |
| Undisbursed portions of loans in process (2) |   |           | 5,366  |   |                                         |   | 3,288 |   |   |   | 2,071 |   |   |   | 7 |   |   |   | - |   |
| Commitments to originate loans               |   |           | 6,146  |   |                                         |   | 6,146 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total commitments                            |   | $              | 19,051 |   |                                         | $      | 9,584 |   |   | $ | 2,597 |   |   | $ | 7 |   |   | $ | 6,863 |   |

----

| (1) | The majority of available lines of credit are for home equity loans. |
|-----|----------------------------------------------------------------------|

| (2) | Includes participation interests sold to other financial institutions totaling $124,000; Prudential Savings Bank will fund such amount and be reimbursed by the participants. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   |           |    |   | Payments Due By Period |   |
|-------------------------------------------------|--------|----------------|---------|--------|------------------------|--------|
|                                            |   |           |    |   | To                     |   |   | 1-3 |   |   | 4-5 |   |   | After 5 |   |
|                                            | Total  |           |    | 1 Year |                   |   | Years |   |   | Years |   |   | Years |   |
|                                            |   | (In Thousands) |    |
| Certificates of deposit                         |   | $              | 290,090 |   |                   | $      | 219,942 |   |   | $ | 46,952 |   |   | $ | 23,196 |   |   | $ | - |   |
| FHLB advances(1)                                |   |           | 615     |   |                   |   | 45 |   |   |   | 230 |   |   |   | 340 |   |   |   | - |   |
| Total long-term debt                            |   |           | 290,705 |   |                   |   | 219,987 |   |   |   | 47,182 |   |   |   | 23,536 |   |   |   | - |   |
| Advances from borrowers for taxes and insurance |   |           | 1,115   |   |                   |   | 1,115 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Operating lease obligations                     |   |           | 175     |   |                   |   | 78 |   |   |   | 72 |   |   |   | 25 |   |   |   | - |   |
| Total contractual obligations                   |   | $              | 291,995 |   |                   | $      | 221,180 |   |   | $ | 47,254 |   |   | $ | 23,561 |   |   | $ | - |   |

----

| (1) | Does not include interest due annually on FHLB advances. |
|-----|----------------------------------------------------------|

----

|                                                                         |   |          |   |   | Year Ended September 30, |   |
|------------------------------------------------------------------------------|--------|---------------|--------|--------|--------------------------|--------|
|                                                                         |   |          |   |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                                                         |   | Yield/Rate at |   |   |                     |   |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |
|                                                                         |   | September 30, |   |   | Average                  |   |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |
|                                                                         |   | 2010          |   |   | Balance                  |   |   | Interest |   |   | Rate(1) |   |   | Balance |   |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
|                                                                         |   |          |   |   | (Dollars in Thousands)   |   |
| Interest-earning assets:                                                     |   |          |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities                                                        |   |          | 4.10   | %      |                     | $      | 117,655 |   |   | $ | 5,431 |   |   |   | 4.62 | % |   | $ | 126,922 |   |   | $ | 6,189 |   |   |   | 4.88 | % |   | $ | 157,917 |   |   | $ | 8,128 |   |   |   | 5.15 | % |
| Mortgage-backed securities                                                   |   |          | 5.37   | %      |                     |   | 92,294 |   |   |   | 4,721 |   |   |   | 5.12 | % |   |   | 92,676 |   |   |   | 5,907 |   |   |   | 6.37 | % |   |   | 66,254 |   |   |   | 3,780 |   |   |   | 5.71 | % |
| Loans receivable(1)                                                          |   |          | 5.72   | %      |                     |   | 254,781 |   |   |   | 14,914 |   |   |   | 5.85 | % |   |   | 253,278 |   |   |   | 15,168 |   |   |   | 5.99 | % |   |   | 227,661 |   |   |   | 14,349 |   |   |   | 6.30 | % |
| Other interest-earning assets                                                |   |          | 0.25   | %      |                     |   | 29,543 |   |   |   | 43 |   |   |   | 0.15 | % |   |   | 12,783 |   |   |   | 122 |   |   |   | 0.95 | % |   |   | 7,483 |   |   |   | 151 |   |   |   | 2.02 | % |
| Total interest-earning assets                                                |   |          | 4.94   | %      |                     |   | 494,273 |   |   |   | 25,109 |   |   |   | 5.08 | % |   |   | 485,659 |   |   |   | 27,386 |   |   |   | 5.64 | % |   |   | 459,315 |   |   |   | 26,408 |   |   |   | 5.75 | % |
| Non-interest-earning assets                                                  |   |          |   |   |                     |   | 26,092 |   |   |   |   |   |   |   |   |   |   |   | 23,572 |   |   |   |   |   |   |   |   |   |   |   | 18,162 |   |   |   |   |   |   |   |   |   |
| Total assets                                                                 |   |          |   |   |                     | $      | 520,365 |   |   |   |   |   |   |   |   |   |   | $ | 509,231 |   |   |   |   |   |   |   |   |   |   | $ | 477,477 |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                |   |          |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                             |   |          | 0.50   | %      |                     | $      | 69,363 |   |   | $ | 1,224 |   |   |   | 1.76 | % |   | $ | 65,392 |   |   | $ | 1,525 |   |   |   | 2.33 | % |   | $ | 66,636 |   |   | $ | 1,673 |   |   |   | 2.51 | % |
| Checking and money market accounts                                           |   |          | 0.84   | %      |                     |   | 105,724 |   |   |   | 1,119 |   |   |   | 1.06 | % |   |   | 96,806 |   |   |   | 1,863 |   |   |   | 1.92 | % |   |   | 92,418 |   |   |   | 2,793 |   |   |   | 3.02 | % |
| Certificate accounts                                                         |   |          | 2.44   | %      |                     |   | 264,082 |   |   |   | 6,321 |   |   |   | 2.39 | % |   |   | 247,791 |   |   |   | 8,585 |   |   |   | 3.46 | % |   |   | 204,981 |   |   |   | 8,922 |   |   |   | 4.35 | % |
| Total deposits                                                               |   |          | 1.75   | %      |                     |   | 439,169 |   |   |   | 8,664 |   |   |   | 1.97 | % |   |   | 409,989 |   |   |   | 11,973 |   |   |   | 2.92 | % |   |   | 364,035 |   |   |   | 13,388 |   |   |   | 3.68 | % |
| FHLB advances                                                                |   |          | 1.02   | %      |                     |   | 16,676 |   |   |   | 746 |   |   |   | 4.47 | % |   |   | 27,243 |   |   |   | 962 |   |   |   | 3.53 | % |   |   | 27,638 |   |   |   | 1,258 |   |   |   | 4.55 | % |
| Real estate tax escrow accounts                                              |   |          | 0.25   | %      |                     |   | 1,638 |   |   |   | 6 |   |   |   | 0.37 | % |   |   | 1,740 |   |   |   | 7 |   |   |   | 0.40 | % |   |   | 1,688 |   |   |   | 8 |   |   |   | 0.47 | % |
| Other interest-bearing liabilities                                           |   |          | -      |   |                     |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total interest-bearing liabilities                                           |   |          | 1.72   | %      |                     |   | 457,483 |   |   |   | 9,416 |   |   |   | 2.06 | % |   |   | 438,972 |   |   |   | 12,942 |   |   |   | 2.95 | % |   |   | 393,361 |   |   |   | 14,654 |   |   |   | 3.73 | % |
| Non-interest-bearing liabilities                                             |   |          |   |   |                     |   | 6,794 |   |   |   |   |   |   |   |   |   |   |   | 7,712 |   |   |   |   |   |   |   |   |   |   |   | 8,378 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                            |   |          |   |   |                     |   | 464,277 |   |   |   |   |   |   |   |   |   |   |   | 446,684 |   |   |   |   |   |   |   |   |   |   |   | 401,739 |   |   |   |   |   |   |   |   |   |
| Stockholders’ Equity                                                   |   |          |   |   |                     |   | 56,088 |   |   |   |   |   |   |   |   |   |   |   | 62,547 |   |   |   |   |   |   |   |   |   |   |   | 75,738 |   |   |   |   |   |   |   |   |   |
| Total liabilities and Stockholders’ Equity                             |   |          |   |   |                     | $      | 520,365 |   |   |   |   |   |   |   |   |   |   | $ | 509,231 |   |   |   |   |   |   |   |   |   |   | $ | 477,477 |   |   |   |   |   |   |   |   |   |
| Net interest-earning assets                                                  |   |          |   |   |                     | $      | 36,790 |   |   |   |   |   |   |   |   |   |   | $ | 46,687 |   |   |   |   |   |   |   |   |   |   | $ | 65,954 |   |   |   |   |   |   |   |   |   |
|                                                                         |   |          |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income; interest rate spread                                    |   |          | 3.22   | %      |                     |   |   |   |   | $ | 15,693 |   |   |   | 3.02 | % |   |   |   |   |   | $ | 14,444 |   |   |   | 2.69 | % |   |   |   |   |   | $ | 11,754 |   |   |   | 2.02 | % |
| Net interest margin (2)                                                      |   |          |   |   |                     |   |   |   |   |   |   |   |   |   | 3.17 | % |   |   |   |   |   |   |   |   |   |   | 2.97 | % |   |   |   |   |   |   |   |   |   |   | 2.56 | % |
| Average interest-earning assets to average interest-bearing liabilities |   |          |   |   |                     |   |   |   |   |   |   |   |   |   | 108.04 | %  |   |   |   |   |   |   |   |   |   |   | 110.64 | %  |   |   |   |   |   |   |   |   |   |   | 116.77 | % |

----

| (1) | Includes nonaccrual loans during the respective periods.  Calculated net of deferred fees and discounts, loans in process and allowance for loan losses. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Equals net interest income divided by average interest-earning assets. |
|-----|------------------------------------------------------------------------|

----

|                                        |   | 2010 vs. 2009              |   |   | 2009 vs. 2008 |   |
|---------------------------------------------|--------|----------------------------|--------|--------|---------------|--------|
|                                        |   | Increase (Decrease) Due to |   |   |          |   |   | Increase (Decrease) Due to |   |   |   |   |
|                                        |   | Rate                       |   |   | Volume        |   |   | Rate/ |   |   | Total Increase |   |   | Rate |   |   | Volume |   |   | Rate/ |   |   | Total Increase |   |
|                                        |   | Volume                     |   |   | (Decrease)    |   |   | Volume |   |   | (Decrease) |   |
|                                        |   | (In Thousands)             |   |   |          |   |   |   |   |   |   |   |   |   |   |
| Interest income:                            |   |                       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities                       |   | $                          | (330   | )      |          | $      | (452 | ) |   | $ | 24 |   |   | $ | (758 | ) |   | $ | (428 | ) |   | $ | (1,595 | ) |   | $ | 84 |   |   | $ | (1,939 | ) |
| Mortgage-backed securities                  |   |                       | (1,166 | )      |          |   | (24 | ) |   |   | 4 |   |   |   | (1,186 | ) |   |   | 443 |   |   |   | 1,507 |   |   |   | 177 |   |   |   | 2,127 |   |
| Loans receivable, net                       |   |                       | (342   | )      |          |   | 90 |   |   |   | (2 | ) |   |   | (254 | ) |   |   | (715 | ) |   |   | 1,614 |   |   |   | (80 | ) |   |   | 819 |   |
| Other interest-earning assets               |   |                       | (103   | )      |          |   | 160 |   |   |   | (136 | ) |   |   | (79 | ) |   |   | (80 | ) |   |   | 107 |   |   |   | (56 | ) |   |   | (29 | ) |
| Total interest income                       |   |                       | (1,941 | )      |          |   | (226 | ) |   |   | (110 | ) |   |   | (2,277 | ) |   |   | (780 | ) |   |   | 1,633 |   |   |   | 125 |   |   |   | 978 |   |
| Interest expense:                           |   |                       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                            |   |                       | (371   | )      |          |   | 93 |   |   |   | (23 | ) |   |   | (301 | ) |   |   | (119 | ) |   |   | (31 | ) |   |   | 2 |   |   |   | (148 | ) |
| Checking accounts                           |   |                       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (interest-bearing and non-interest bearing) |   |                       | (838   | )      |          |   | 172 |   |   |   | (78 | ) |   |   | (744 | ) |   |   | (1,014 | ) |   |   | 133 |   |   |   | (49 | ) |   |   | (930 | ) |
| Certificate accounts                        |   |                       | (2,654 | )      |          |   | 564 |   |   |   | (174 | ) |   |   | (2,264 | ) |   |   | (1,820 | ) |   |   | 1,863 |   |   |   | (380 | ) |   |   | (337 | ) |
| Total deposits                              |   |                       | (3,863 | )      |          |   | 829 |   |   |   | (275 | ) |   |   | (3,309 | ) |   |   | (2,953 | ) |   |   | 1,965 |   |   |   | (427 | ) |   |   | (1,415 | ) |
| FHLB advances                               |   |                       | 257    |   |          |   | (373 | ) |   |   | (100 | ) |   |   | (216 | ) |   |   | (282 | ) |   |   | (18 | ) |   |   | 4 |   |   |   | (296 | ) |
| Other interest-bearing liabilities          |   |                       | (1     | )      |          |   | - |   |   |   | - |   |   |   | (1 | ) |   |   | (1 | ) |   |   | - |   |   |   | - |   |   |   | (1 | ) |
| Total interest expense                      |   |                       | (3,607 | )      |          |   | 456 |   |   |   | (375 | ) |   |   | (3,526 | ) |   |   | (3,236 | ) |   |   | 1,947 |   |   |   | (423 | ) |   |   | (1,712 | ) |
| Increase (decrease) in net interest income  |   | $                          | 1,666  |   |          | $      | (682 | ) |   | $ | 265 |   |   | $ | 1,249 |   |   | $ | 2,456 |   |   | $ | (314 | ) |   | $ | 548 |   |   | $ | 2,690 |   |

----

----

----

----

----

|                                                                                                                |   |                   |    |   | More than |   |    | More than  |   |   | More than  |   |   |      |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|-----------|--------|---------|------------|--------|--------|------------|--------|--------|-----------|--------|--------|--------|--------|
|                                                                                                                |   | 3 Months               |    |   | 3 Months  |   |    | 1 Year     |   |   | 3 Years    |   |   | More than |   |   | Total  |   |
|                                                                                                                |   | or Less                |    |   | to 1 Year |   |    | to 3 Years |   |   | to 5 Years |   |   | 5 Years   |   |   | Amount |   |
|                                                                                                                |   |                   |    |   |      |   |    |       |   |   |       |   |   |      |   |   |   |   |
|                                                                                                                |   | (Dollars in Thousands) |    |
| Interest-earning assets(1):                                                                                         |   |                   |    |   |      |   |    |       |   |   |       |   |   |      |   |   |   |   |
| Investment and mortgage-backed securities                                                                           |   | $                      | 19,267  |   |      | $      | 61,314  |       |   | $      | 22,370     |   |   | $         | 25,722 |   |   | $      | 53,891 |   |   | $ | 182,564 |   |
| Loans receivable(2)                                                                                                 |   |                   | 36,218  |   |      |   | 59,963  |       |   |   | 87,008     |   |   |      | 40,902 |   |   |   | 33,561 |   |   |   | 257,652 |   |
| Other interest-earning assets (3)                                                                                   |   |                   | 66,420  |   |      |   | -       |       |   |   | -          |   |   |      | -      |   |   |   | - |   |   |   | 66,420 |   |
|     Total interest-earning assets                                                               |   | $                      | 121,905 |   |      | $      | 121,277 |       |   | $      | 109,378    |   |   | $         | 66,624 |   |   | $      | 87,452 |   |   | $ | 506,636 |   |
|                                                                                                                |   |                   |    |   |      |   |    |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                                       |   |                   |    |   |      |   |    |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                                                                    |   |                   | 2,189   |   |      |   | 4,811   |       |   |   | 9,433      |   |   |      | 8,658  |   |   |   | 45,357 |   |   |   | 70,448 |   |
| Checking and money market accounts                                                                                  |   |                   | 4,025   |   |      |   | 12,075  |       |   |   | 24,050     |   |   |      | 17,827 |   |   |   | 43,370 |   |   |   | 101,347 |   |
| Certificate accounts                                                                                                |   |                   | 46,427  |   |      |   | 173,515 |       |   |   | 46,952     |   |   |      | 23,196 |   |   |   | - |   |   |   | 290,090 |   |
| FHLB advances                                                                                                       |   |                   | 35      |   |      |   | 105     |       |   |   | 135        |   |   |      | 340    |   |   |   | - |   |   |   | 615 |   |
| Real estate tax escrow accounts                                                                                     |   |                   | 1,115   |   |      |   | -       |       |   |   | -          |   |   |      | -      |   |   |   | - |   |   |   | 1,115 |   |
| Other interest-bearing liabilities                                                                                  |   |                   |    |   |      |   |    |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |
|     Total interest-bearing liabilities                                                          |   | $                      | 53,791  |   |      | $      | 190,506 |       |   | $      | 80,570     |   |   | $         | 50,021 |   |   | $      | 88,727 |   |   | $ | 463,615 |   |
|                                                                                                                |   |                   |    |   |      |   |    |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets less interest-bearing liabilities                                                           |   | $                      | 68,114  |   |      | ($     | 69,229  | )          |   | $      | 28,808     |   |   | $         | 16,603 |   |   | ($     | 1,275 | ) |   | $ | 43,021 |   |
|                                                                                                                |   |                   |    |   |      |   |    |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Cumulative interest-rate sensitivity gap(4)                                                                         |   | $                      | 68,114  |   |      | ($     | 1,115   | )          |   | $      | 27,693     |   |   | $         | 44,296 |   |   | $      | 43,021 |   |   |   |   |   |
|                                                                                                                |   |                   |    |   |      |   |    |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Cumulative interest-rate gap as a percentage of total assets at September 30, 2010                                  |   |                   | 12.87   | %      |      |   | -0.21   | %          |   |   | 5.23       | %      |   |      | 8.37   | %      |   |   | 8.13 | % |   |   |   |   |
|                                                                                                                |   |                   |    |   |      |   |    |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Cumulative interest-earning assets as a percentage of cumulative interest-bearing liabilities at September 30, 2010 |   |                   | 226.63  | %      |      |   | 99.54   | %          |   |   | 108.52     | %      |   |      | 111.82 | %      |   |   | 109.28 | % |   |   |   |   |

----

| (1) | Interest-earning assets are included in the period in which the balances are expected to be redeployed and/or repriced as a result of anticipated prepayments, scheduled rate adjustments and contractual maturities. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | For purposes of the gap analysis, loans receivable includes non-performing loans, gross of the allowance for loan losses, undisbursed loan funds, unamortized discounts and deferred loan fees. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes FHLB stock. |
|-----|----------------------|

| (4) | Interest-rate sensitivity gap represents the difference between total interest-earning assets and total interest-bearing liabilities. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

----

|            |   |                   |   |   |                  |   |    |     |   |   |      |   |   |   |   |
|-----------------|--------|------------------------|--------|--------|-----------------------|--------|---------|----------|--------|--------|-----------|--------|--------|--------|--------|
| Change in       |   |                   |   |   | NPV as % of Portfolio |   |
| Interest Rates  |   | Net Portfolio Value    |   |   | Value of Assets       |   |
| In Basis Points |   |                   |   |   |                  |   |    |     |   |   |      |   |   |   |   |
| (Rate Shock)    |   | Amount                 |   |   | $ Change              |   |    | % Change |   |   | NPV Ratio |   |   | Change |   |
|            |   |                   |   |   |                  |   |    |     |   |   |      |   |   |   |   |
|            |   | (Dollars in Thousands) |   |
|            |   |                   |   |   |                  |   |    |     |   |   |      |   |   |   |   |
| 300             |   | $                      | 50,955 |   |                  | $      | (29,362 | )        |   |   | -36.56    | %      |   |   | 10.49  | % |   |   | -4.37 | % |
| 200             |   | $                      | 61,999 |   |                  | $      | (18,318 | )        |   |   | -22.81    | %      |   |   | 12.28  | % |   |   | -2.58 | % |
| 100             |   | $                      | 73,749 |   |                  | $      | (6,568  | )        |   |   | -8.18     | %      |   |   | 14.04  | % |   |   | -0.82 | % |
| Static          |   | $                      | 80,317 |   |                  | $      | -       |     |   |   | ---       |   |   |   | 14.86  | % |   |   | --- |   |
| (100)           |   | $                      | 78,819 |   |                  | $      | (1,498  | )        |   |   | -1.87     | %      |   |   | 14.38  | % |   |   | -0.48 | % |
| (200)           |   | $                      | 78,730 |   |                  | $      | (1,587  | )        |   |   | -1.98     | %      |   |   | 14.19  | % |   |   | -0.67 | % |
| (300)           |   | $                      | 80,431 |   |                  | $      | 114     |     |   |   | 0.14      | %      |   |   | 14.33  | % |   |   | -0.53 | % |

----

----

| PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA AND SUBSIDIARY |
|---------------------------------------------------------|
|                                                    |
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION          |

|                                                                                                                                                            |   | September 30,          |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                                                                                            |   | 2010                   |    |   | 2009 |   |
|                                                                                                                                                            |   | (Dollars in Thousands) |    |
| ASSETS                                                                                                                                                          |   |                   |    |   |   |   |
|                                                                                                                                                            |   |                   |    |   |   |   |
| Cash and amounts due from depository institutions                                                                                                               |   | $                      | 3,649   |   |   | $ | 4,088 |   |
| Interest-bearing deposits                                                                                                                                       |   |                   | 62,875  |   |   |   | 9,581 |   |
|                                                                                                                                                            |   |                   |    |   |   |   |   |   |
| Total cash and cash equivalents                                                                                                                                 |   |                   | 66,524  |   |   |   | 13,669 |   |
|                                                                                                                                                            |   |                   |    |   |   |   |   |   |
| Investment and mortgage-backed securities held to maturity (fair value—September 30, 2010, $116,594; September 30, 2009, $161,968)                        |   |                   | 112,673 |   |   |   | 160,126 |   |
| Investment and mortgage-backed securities available for sale (amortized cost—September 30, 2010, $69,891; September 30, 2009, $63,000)                    |   |                   | 72,425  |   |   |   | 62,407 |   |
| Loans receivable—net of allowance for loan losses (September 30, 2010, $3,151; September 30, 2009, $2,732)                                                |   |                   | 255,091 |   |   |   | 256,694 |   |
| Accrued interest receivable                                                                                                                                     |   |                   | 2,669   |   |   |   | 3,305 |   |
| Real estate owned                                                                                                                                               |   |                   | 3,197   |   |   |   | 3,622 |   |
| Federal Home Loan Bank stock—at cost                                                                                                                      |   |                   | 3,545   |   |   |   | 3,545 |   |
| Office properties and equipment—net                                                                                                                       |   |                   | 2,069   |   |   |   | 1,992 |   |
| Bank owned life insurance                                                                                                                                       |   |                   | 5,990   |   |   |   | 5,786 |   |
| Deferred income taxes, net                                                                                                                                      |   |                   | 1,762   |   |   |   | 2,343 |   |
| Prepaid expenses and other assets                                                                                                                               |   |                   | 3,135   |   |   |   | 1,272 |   |
| TOTAL ASSETS                                                                                                                                                    |   | $                      | 529,080 |   |   | $ | 514,761 |   |
|                                                                                                                                                            |   |                   |    |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                      |   |                   |    |   |   |   |   |   |
|                                                                                                                                                            |   |                   |    |   |   |   |   |   |
| LIABILITIES:                                                                                                                                                    |   |                   |    |   |   |   |   |   |
| Deposits:                                                                                                                                                       |   |                   |    |   |   |   |   |   |
| Non-interest-bearing                                                                                                                                            |   | $                      | 2,570   |   |   | $ | 2,848 |   |
| Interest-bearing                                                                                                                                                |   |                   | 461,885 |   |   |   | 429,526 |   |
| Total deposits                                                                                                                                                  |   |                   | 464,455 |   |   |   | 432,374 |   |
| Advances from Federal Home Loan Bank                                                                                                                            |   |                   | 615     |   |   |   | 19,659 |   |
| Accrued interest payable                                                                                                                                        |   |                   | 3,361   |   |   |   | 3,463 |   |
| Advances from borrowers for taxes and insurance                                                                                                                 |   |                   | 1,115   |   |   |   | 1,214 |   |
| Accrued dividend payable                                                                                                                                        |   |                   | 502     |   |   |   | 491 |   |
| Accounts payable and accrued expenses                                                                                                                           |   |                   | 2,033   |   |   |   | 1,703 |   |
|                                                                                                                                                            |   |                   |    |   |   |   |   |   |
| Total liabilities                                                                                                                                               |   |                   | 472,081 |   |   |   | 458,904 |   |
|                                                                                                                                                            |   |                   |    |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES (Note 12)                                                                                                                         |   |                   |    |   |   |   |   |   |
|                                                                                                                                                            |   |                   |    |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY:                                                                                                                                     |   |                   |    |   |   |   |   |   |
| Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued                                                                                      |   |                   | -       |   |   |   | - |   |
| Common stock, $.01 par value, 40,000,000 shares authorized; issued 12,563,750; outstanding - 10,031,472 at September 30, 2010: 10,331,866 at September 30, 2009 |   |                   | 126     |   |   |   | 126 |   |
| Additional paid-in capital                                                                                                                                      |   |                   | 53,528  |   |   |   | 52,938 |   |
| Unearned Employee Stock Ownership Plan (“ESOP”) shares                                                                                              |   |                   | (3,234  | ) |   |   | (3,457 | ) |
| Treasury stock, at cost: 2,532,278 shares  at September 30, 2010;  2,231,884 shares at September 30, 2009                                   |   |                   | (31,576 | ) |   |   | (28,652 | ) |
| Retained earnings (substantially restricted)                                                                                                                    |   |                   | 36,483  |   |   |   | 35,293 |   |
| Accumulated other comprehensive income (loss)                                                                                                                   |   |                   | 1,672   |   |   |   | (391 | ) |
|                                                                                                                                                            |   |                   |    |   |   |   |   |   |
| Total stockholders’ equity                                                                                                                                |   |                   | 56,999  |   |   |   | 55,857 |   |
|                                                                                                                                                            |   |                   |    |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                |   | $                      | 529,080 |   |   | $ | 514,761 |   |
|                                                                                                                                                            |   |                   |    |   |   |   |   |   |
| See notes to consolidated financial statements.                                                                                                                 |   |                   |    |   |   |   |   |   |

----

| PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA AND SUBSIDIARY |
|---------------------------------------------------------|
|                                                    |
| CONSOLIDATED STATEMENTS OF OPERATIONS                   |

|                                                                   |   | Years Ended September 30,                       |   |
|------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                                   |   | 2010                                            |   |   | 2009 |   |
|                                                                   |   |                                            |   |
|                                                                   |   | (Dollars in Thousands Except Per Share Amounts) |   |
| INTEREST INCOME:                                                       |   |                                            |   |   |   |   |
| Interest and fees on loans                                             |   | $                                               | 14,914 |   |   | $ | 15,168 |   |
| Interest on mortgage-backed securities                                 |   |                                            | 4,721  |   |   |   | 5,907 |   |
| Interest and dividends on investments                                  |   |                                            | 5,474  |   |   |   | 6,311 |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| Total interest income                                                  |   |                                            | 25,109 |   |   |   | 27,386 |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| INTEREST EXPENSE:                                                      |   |                                            |   |   |   |   |   |   |
| Interest on deposits                                                   |   |                                            | 8,670  |   |   |   | 11,980 |   |
| Interest on borrowings                                                 |   |                                            | 746    |   |   |   | 962 |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| Total interest expense                                                 |   |                                            | 9,416  |   |   |   | 12,942 |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| NET INTEREST INCOME                                                    |   |                                            | 15,693 |   |   |   | 14,444 |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| PROVISION FOR LOAN LOSSES                                              |   |                                            | 1,110  |   |   |   | 1,403 |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES                    |   |                                            | 14,583 |   |   |   | 13,041 |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| NON-INTEREST INCOME:                                                   |   |                                            |   |   |   |   |   |   |
| Fees and other service charges                                         |   |                                            | 493    |   |   |   | 491 |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| Total other-than-temporary impairment losses                           |   |                                            | (597   | ) |   |   | (4,983 | ) |
| Portion of loss recognized in other comprehensive income, before taxes |   |                                            | 37     |   |   |   | 1,702 |   |
| Net impairment losses recognized in earnings                           |   |                                            | (560   | ) |   |   | (3,281 | ) |
|                                                                   |   |                                            |   |   |   |   |   |   |
| Other                                                                  |   |                                            | 454    |   |   |   | 338 |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| Total non-interest income                                              |   |                                            | 387    |   |   |   | (2,452 | ) |
|                                                                   |   |                                            |   |   |   |   |   |   |
| NON-INTEREST EXPENSES:                                                 |   |                                            |   |   |   |   |   |   |
| Salaries and employee benefits                                         |   |                                            | 5,430  |   |   |   | 4,609 |   |
| Data processing                                                        |   |                                            | 505    |   |   |   | 552 |   |
| Professional services                                                  |   |                                            | 499    |   |   |   | 714 |   |
| Office occupancy                                                       |   |                                            | 402    |   |   |   | 421 |   |
| Depreciation                                                           |   |                                            | 355    |   |   |   | 328 |   |
| Payroll taxes                                                          |   |                                            | 279    |   |   |   | 262 |   |
| Director compensation                                                  |   |                                            | 296    |   |   |   | 260 |   |
| Federal Deposit Insurance Corporation Premiums                         |   |                                            | 809    |   |   |   | 928 |   |
| Real estate owned expense                                              |   |                                            | 414    |   |   |   | 1,088 |   |
| Other                                                                  |   |                                            | 1,805  |   |   |   | 1,903 |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| Total non-interest expenses                                            |   |                                            | 10,794 |   |   |   | 11,065 |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE INCOME TAXES                                      |   |                                            | 4,176  |   |   |   | (476 | ) |
|                                                                   |   |                                            |   |   |   |   |   |   |
| INCOME TAXES:                                                          |   |                                            |   |   |   |   |   |   |
| Current                                                                |   |                                            | 1,528  |   |   |   | 1,625 |   |
| Deferred benefit                                                       |   |                                            | (482   | ) |   |   | (1,275 | ) |
|                                                                   |   |                                            |   |   |   |   |   |   |
| Total                                                                  |   |                                            | 1,046  |   |   |   | 350 |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| NET INCOME (LOSS)                                                      |   | $                                               | 3,130  |   |   | $ | (826 | ) |
|                                                                   |   |                                            |   |   |   |   |   |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| BASIC INCOME (LOSS) PER SHARE                                          |   | $                                               | 0.33   |   |   | $ | (0.08 | ) |
|                                                                   |   |                                            |   |   |   |   |   |   |
| DILUTED INCOME (LOSS) PER SHARE                                        |   | $                                               | 0.32   |   |   | $ | (0.08 | ) |
|                                                                   |   |                                            |   |   |   |   |   |   |
| DIVIDENDS PER SHARE                                                    |   | $                                               | 0.20   |   |   | $ | 0.20 |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
|                                                                   |   |                                            |   |   |   |   |   |   |
| See notes to consolidated financial statements.                        |   |                                            |   |   |   |   |   |   |

----

| PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA AND SUBSIDIARY                                          |
|--------------------------------------------------------------------------------------------------|
|                                                                                             |
| CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME (LOSS) |

|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   | Accumulated   |   |   |                |   |   |          |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|------------|--------|--------|----------|--------|--------|----------|--------|--------|----------|---------|--------|---------------|--------|--------|---------------------|--------|--------|---------------|--------|
|                                                                                                                                               |   |                   |   |   | Additional |   |   | Unearned |   |   |     |   |   |     |    |   | Other         |   |   | Total               |   |   |          |   |
|                                                                                                                                               |   | Common                 |   |   | Paid-In    |   |   | ESOP     |   |   | Treasury |   |   | Retained |    |   | Comprehensive |   |   | Stockholders’ |   |   | Comprehensive |   |
|                                                                                                                                               |   | Stock                  |   |   | Capital    |   |   | Shares   |   |   | Stock    |   |   | Earnings |    |   | Income (Loss) |   |   | Equity              |   |   | Income        |   |
|                                                                                                                                               |   | (Dollars in Thousands) |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |
| BALANCE, SEPTEMBER 30, 2008                                                                                                                        |   |                   | 126    |   |       |   | 54,925 |     |   |   | (3,680   | )      |   |     | (19,481 | )      |          |   | 37,288 |                |   |   | (691          | )      |   |   | 68,487 |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |
| Cumulative adjustment related to the adoption of Accounting for Collateral Assignment Split-Dollar Agreement, net of tax                           |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   | (256   | )                   |   |   |          |   |   |   | (256 | ) |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |
| Cumulative adjustment related to the adoption of Recognition and Presentation of other-than-temporary impaiment, net of income tax benefit of $390 |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   | 1,148  |                |   |   | (758          | )      |   |   | 390 |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |
| Comprehensive income:                                                                                                                              |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                                           |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   | (826   | )                   |   |   |          |   |   |   | (826 | ) |   |   | (826 | ) |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Net unrealized holding loss on available for sale securities arising during the period, net of income tax benefit of $570                          |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   | (1,107        | )      |   |   | (1,107 | ) |   |   | (1,107 | ) |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment for other than temporary impairment recognized in earnings net of tax of $1,116                                        |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   | 2,165         |   |   |   | 2,165 |   |   |   | 2,165 |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   | $ | 232 |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Cash dividends ($0.20 per share)                                                                                                                   |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   | (2,061 | )                   |   |   |          |   |   |   | (2,061 | ) |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Treasury stock purchased (738,000 shares)                                                                                                          |   |                   |   |   |       |   |   |     |   |   |     |   |   |     | (9,171  | )      |          |   |   |                |   |   |          |   |   |   | (9,171 | ) |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Execss tax benefit from stock compensation                                                                                                         |   |                   |   |   |       |   | 111    |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   | 111 |   |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Stock option expense                                                                                                                               |   |                   |   |   |       |   | 159    |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   | 159 |   |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Recognition and Retention Plan expense                                                                                                             |   |                   |   |   |       |   | 185    |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   | 185 |   |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Acquisition of restricted stock plan shares (226,148 shares)                                                                                       |   |                   |   |   |       |   | (2,465 | )        |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   | (2,465 | ) |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| ESOP shares committed to be released (22,620 shares)                                                                                               |   |                   |   |   |       |   | 23     |     |   |   | 223      |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   | 246 |   |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| BALANCE, SEPTEMBER 30, 2009                                                                                                                        |   | $                      | 126    |   |       | $      | 52,938 |     |   | $      | (3,457   | )      |   | $        | (28,652 | )      |          | $      | 35,293 |                |   | $      | (391          | )      |   | $ | 55,857 |   |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                                                                                                                              |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                                                         |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   | 3,130  |                |   |   |          |   |   |   | 3,130 |   |   |   | 3,130 |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Net unrealized holding gain on available for sale securities arising during the period, net of income tax $872                                     |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   | 1,693         |   |   |   | 1,693 |   |   |   | 1,693 |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment for other than temporary impairment recognized in earnings net of tax of $190                                          |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   | 370           |   |   |   | 370 |   |   |   | 370 |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   | $ | 5,193 |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Cash dividends ($0.20 per share)                                                                                                                   |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   | (1,940 | )                   |   |   |          |   |   |   | (1,940 | ) |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Treasury stock purchased (300,394 shares)                                                                                                          |   |                   |   |   |       |   |   |     |   |   |     |   |   |     | (2,924  | )      |          |   |   |                |   |   |          |   |   |   | (2,924 | ) |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Execss tax benefit from stock compensation                                                                                                         |   |                   |   |   |       |   | 109    |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   | 109 |   |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Stock option expense                                                                                                                               |   |                   |   |   |       |   | 218    |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   | 218 |   |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Recognition and Retention Plan expense                                                                                                             |   |                   |   |   |       |   | 300    |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   | 300 |   |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| ESOP shares committed to be released (22,620 shares)                                                                                               |   |                   |   |   |       |   | (37    | )        |   |   | 223      |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   | 186 |   |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| BALANCE, SEPTEMBER 30, 2010                                                                                                                        |   | $                      | 126    |   |       | $      | 53,528 |     |   | $      | (3,234   | )      |   | $        | (31,576 | )      |          | $      | 36,483 |                |   | $      | 1,672         |   |   | $ | 56,999 |   |   |   |   |   |
|                                                                                                                                               |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| See notes to consolidated financial statements                                                                                                     |   |                   |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |

----

| PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA AND SUBSIDIARY |
|---------------------------------------------------------|
|                                                    |
| STATEMENTS OF CASH FLOWS                                |

|                                                                                               |   | Years Ended September 30, |    |
|----------------------------------------------------------------------------------------------------|--------|---------------------------|---------|
|                                                                                               |   | 2010                      |    |   | 2009 |   |
|                                                                                               |   | (Dollars in Thousands)    |    |
| OPERATING ACTIVITIES:                                                                              |   |                      |    |   |   |   |
| Net income (loss)                                                                                  |   | $                         | 3,130   |   |   | $ | (826 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |   |                      |    |   |   |   |   |   |
| Provision for loan losses                                                                          |   |                      | 1,110   |   |   |   | 1,403 |   |
| Depreciation                                                                                       |   |                      | 355     |   |   |   | 328 |   |
| Net accretion of premiums/discounts                                                                |   |                      | (407    | ) |   |   | (1,324 | ) |
| Income from bank owned life insurance                                                              |   |                      | (204    | ) |   |   | (209 | ) |
| Accretion of deferred loan fees                                                                    |   |                      | (148    | ) |   |   | (85 | ) |
| Compensation expense of ESOP                                                                       |   |                      | 186     |   |   |   | 246 |   |
| Impairment charge on investment and mortgage-backed securities                                     |   |                      | 560     |   |   |   | 3,281 |   |
| Impairment charge on real estate owned                                                             |   |                      | 18      |   |   |   | 1,008 |   |
| Share-based compensation expense                                                                   |   |                      | 627     |   |   |   | 455 |   |
| Deferred income tax benefit                                                                        |   |                      | (482    | ) |   |   | (1,275 | ) |
| Excess tax benefit related to stock compensation                                                   |   |                      | (109    | ) |   |   | (111 | ) |
| Changes in assets and liabilities which (used) provided cash:                                      |   |                      |    |   |   |   |   |   |
| Accounts payable and accrued expenses                                                              |   |                      | 330     |   |   |   | (5,861 | ) |
| Accrued interest payable                                                                           |   |                      | (102    | ) |   |   | (8 | ) |
| Prepaid expenses and other assets                                                                  |   |                      | (1,855  | ) |   |   | 298 |   |
| Accrued interest receivable                                                                        |   |                      | 636     |   |   |   | (128 | ) |
|  Net cash provided by (used in) operating activities                                          |   |                      | 3,645   |   |   |   | (2,808 | ) |
| INVESTING ACTIVITIES:                                                                              |   |                      |    |   |   |   |   |   |
| Purchase of investment and mortgage-backed securities held to maturity                             |   |                      | (62,986 | ) |   |   | (95,987 | ) |
| Purchase of investment and mortgage-backed securities available for sale                           |   |                      | (23,845 | ) |   |   | (17,717 | ) |
| Principal collected on loans                                                                       |   |                      | 52,456  |   |   |   | 51,868 |   |
| Principal payments received on investment and mortgage-backed securities:                          |   |                      |    |   |   |   |   |   |
| Held-to-maturity                                                                                   |   |                      | 110,483 |   |   |   | 99,304 |   |
| Available for sale                                                                                 |   |                      | 16,748  |   |   |   | 9,911 |   |
| Loans originated or acquired                                                                       |   |                      | (53,507 | ) |   |   | (69,053 | ) |
| Net purchase of Federal Home Loan Bank stock                                                       |   |                      | -       |   |   |   | (925 | ) |
| Sale of real estate owned                                                                          |   |                      | 2,100   |   |   |   | - |   |
| Purchases of equipment                                                                             |   |                      | (433    | ) |   |   | (138 | ) |
| Net cash provided by (used in) investing activities                                                |   |                      | 41,016  |   |   |   | (22,737 | ) |
| FINANCING ACTIVITIES:                                                                              |   |                      |    |   |   |   |   |   |
| Net increase in demand deposits, NOW accounts, and savings accounts                                |   |                      | 2,178   |   |   |   | 10,446 |   |
| Net increase in certificates of deposit                                                            |   |                      | 29,903  |   |   |   | 45,098 |   |
| Net repayment borrowing with Federal Home Loan Bank                                                |   |                      | (19,044 | ) |   |   | (12,042 | ) |
| Decrease in advances from borrowers for taxes and insurance                                        |   |                      | (99     | ) |   |   | (134 | ) |
| Cash dividends paid                                                                                |   |                      | (1,929  | ) |   |   | (2,083 | ) |
| Excess tax benefit related to stock compensation                                                   |   |                      | 109     |   |   |   | 111 |   |
| Acquisition of stock for Recognition and Retention Plan                                            |   |                      | -       |   |   |   | (2,465 | ) |
| Purchase of treasury stock                                                                         |   |                      | (2,924  | ) |   |   | (9,171 | ) |
| Net cash provided by financing activities                                                          |   |                      | 8,194   |   |   |   | 29,760 |   |
| NET INCREASE IN CASH AND CASH EQUIVALENTS                                                          |   |                      | 52,855  |   |   |   | 4,215 |   |
| CASH AND CASH EQUIVALENTS—Beginning of year                                                  |   |                      | 13,669  |   |   |   | 9,454 |   |
| CASH AND CASH EQUIVALENTS—End of year                                                        |   | $                         | 66,524  |   |   | $ | 13,669 |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                                 |   |                      |    |   |   |   |   |   |
| Interest paid on deposits and advances from Federal Home Loan Bank                                 |   | $                         | 9,518   |   |   | $ | 12,949 |   |
|                                                                                               |   |                      |    |   |   |   |   |   |
| Income taxes paid                                                                                  |   | $                         | 1,631   |   |   | $ | 1,979 |   |
|                                                                                               |   |                      |    |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF NONCASH ITEMS:                                                         |   |                      |    |   |   |   |   |   |
| Real estate acquired in settlement of loans                                                        |   | $                         | 1,692   |   |   | $ | 3,142 |   |
|                                                                                               |   |                      |    |   |   |   |   |   |
| See notes to consolidated financial statements.                                                    |   |                      |    |   |   |   |   |   |

----

| PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA AND SUBSIDIARY                                   |
|-------------------------------------------------------------------------------------------|
|                                                                                      |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009 |

| 1. | NATURE OF OPERATIONS AND BASIS OF PRESENTATION |
|----|------------------------------------------------|

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

----

----

----

----

----

----

----

| 3. | EARNINGS PER SHARE |
|----|--------------------|

|   |                                                                    |   | Year Ended September 30,                     |      |
|--------|-------------------------------------------------------------------------|--------|----------------------------------------------|-----------|
|   |                                                                    |   | 2010                                         |      |   | 2009 |   |
|   |                                                                    |   | (Dollars in thousands except per share data) |      |
|   |                                                                    |   | Basic                                        |      |   | Diluted |   |   | Basic |   |   | Diluted |   |
|   |                                                                    |   |                                         |      |   |   |   |   |   |   |   |   |   |
|   | Net income (loss)                                                       |   | $                                            | 3,130     |   |   | $ | 3,130 |   |   | $ | (826 | ) |   | $ | (826 | ) |
|   |                                                                    |   |                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Weighted average shares outstanding                                     |   |                                         | 9,613,353 |   |   |   | 9,613,353 |   |   |   | 10,334,273 |   |   |   | 10,334,273 |   |
|   |                                                                    |   |                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Effect of CSEs                                                          |   |                                         | -         |   |   |   | 118,958 |   |   |   | - |   |   |   | 115,895 |   |
|   |                                                                    |   |                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Adjusted weighted average shares used in earnings per share computation |   |                                         | 9,613,353 |   |   |   | 9,732,311 |   |   |   | 10,334,273 |   |   |   | 10,450,168 |   |
|   |                                                                    |   |                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Income (loss) per share - basic and diluted                             |   | $                                            | 0.33      |   |   | $ | 0.32 |   |   | $ | (0.08 | ) |   | $ | (0.08 | ) |

----

| 4. | INVESTMENT AND MORTGAGE-BACKED SECURITIES |
|----|-------------------------------------------|

|   |                                                  |   | September 30, 2010     |    |
|--------|-------------------------------------------------------|--------|------------------------|---------|
|   |                                                  |   |                   |    |   | Gross |   |   | Gross |   |   |   |   |
|   |                                                  |   | Amortized              |    |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|   |                                                  |   | Cost                   |    |   | Gains |   |   | Losses |   |   | Value |   |
|   |                                                  |   | (Dollars in Thousands) |    |
|   | Securities Held to Maturity:                          |   |                   |    |   |   |   |   |   |   |   |   |   |
|   | U.S. government and agency obligations                |   | $                      | 85,983  |   |   | $ | 1,831 |   |   | $ | (12 | ) |   | $ | 87,802 |   |
|   | Municipal obligations                                 |   |                   | 475     |   |   |   | - |   |   |   | - |   |   |   | 475 |   |
|   | Mortgage-backed securities - U.S. government agencies |   |                   | 26,215  |   |   |   | 2,102 |   |   |   | - |   |   |   | 28,317 |   |
|   |                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total securities held to maturity                     |   | $                      | 112,673 |   |   | $ | 3,933 |   |   | $ | (12 | ) |   | $ | 116,594 |   |
|   |                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Securities Available for Sale:                        |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | U.S. government and agency obligations                |   | $                      | 9,995   |   |   | $ | 198 |   |   | $ | - |   |   | $ | 10,193 |   |
|   | Mortgage-backed securities - U.S. government agencies |   |                   | 51,821  |   |   |   | 3,204 |   |   |   | - |   |   |   | 55,025 |   |
|   | Mortgage-backed securities - Non-agency               |   |                   | 8,067   |   |   |   | 178 |   |   |   | (1,046 | ) |   |   | 7,199 |   |
|   | Total debt securities                                 |   |                   | 69,883  |   |   |   | 3,580 |   |   |   | (1,046 | ) |   |   | 72,417 |   |
|   |                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | FHLMC preferred stock                                 |   |                   | 8       |   |   |   | - |   |   |   | - |   |   |   | 8 |   |
|   |                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total securities available for sale                   |   | $                      | 69,891  |   |   | $ | 3,580 |   |   | $ | (1,046 | ) |   | $ | 72,425 |   |

----

|   |                                                             |   | September 30, 2009     |    |
|--------|------------------------------------------------------------------|--------|------------------------|---------|
|   |                                                             |   |                   |    |   | Gross |   |   | Gross |   |   |   |   |
|   |                                                             |   | Amortized              |    |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|   |                                                             |   | Cost                   |    |   | Gains |   |   | Losses |   |   | Value |   |
|   |                                                             |   | (Dollars in Thousands) |    |
|   | Securities Held to Maturity:                                     |   |                   |    |   |   |   |   |   |   |   |   |   |
|   | U.S. government and agency obligations                           |   | $                      | 123,923 |   |   | $ | 881 |   |   | $ | (645 | ) |   | $ | 124,159 |   |
|   | Municipal obligations                                            |   |                   | 1,970   |   |   |   | 6 |   |   |   | - |   |   |   | 1,976 |   |
|   | Mortgage-backed securities - U.S. government agencies            |   |                   | 34,233  |   |   |   | 1,600 |   |   |   | - |   |   |   | 35,833 |   |
|   |                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total securities held to maturity                                |   | $                      | 160,126 |   |   | $ | 2,487 |   |   | $ | (645 | ) |   | $ | 161,968 |   |
|   |                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Securities Available for Sale:                                   |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | U.S. government and agency obligations                           |   | $                      | 2,000   |   |   | $ | - |   |   | $ | (18 | ) |   | $ | 1,982 |   |
|   | Mortgage-backed securities - U.S.  government agencies |   |                   | 50,659  |   |   |   | 2,009 |   |   |   | (57 | ) |   |   | 52,611 |   |
|   | Mortgage-backed securities - Non-agency                          |   |                   | 10,325  |   |   |   | 6 |   |   |   | (2,564 | ) |   |   | 7,767 |   |
|   | Total debt securities                                            |   |                   | 62,984  |   |   |   | 2,015 |   |   |   | (2,639 | ) |   |   | 62,360 |   |
|   |                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | FHLMC preferred stock                                            |   |                   | 16      |   |   |   | 31 |   |   |   | - |   |   |   | 47 |   |
|   |                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total securities available for sale                              |   | $                      | 63,000  |   |   | $ | 2,046 |   |   | $ | (2,639 | ) |   | $ | 62,407 |   |

|   |                                    |   | Less than 12 months    |   |   | More than 12 months |   |   | Total      |   |
|--------|-----------------------------------------|--------|------------------------|--------|--------|---------------------|--------|--------|------------|--------|
|   |                                    |   | Gross                  |   |   |                |   |   | Gross      |   |   |   |   |   | Gross |   |   |   |   |
|   |                                    |   | Unrealized             |   |   | Fair                |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |
|   |                                    |   | Losses                 |   |   | Value               |   |   | Losses     |   |   | Value |   |   | Losses |   |   | Value |   |
|   |                                    |   | (Dollars in Thousands) |   |
|   | Securities Held to Maturity:            |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |
|   | U.S. government agency obligations      |   | $                      | (12    | )      |                | $      | 5,988  |       |   | $ | - |   |   | $ | - |   |   | $ | (12 | ) |   | $ | 5,988 |   |
|   |                                    |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total securities held to maturity       |   |                   | (12    | )      |                |   | 5,988  |       |   |   |   |   |   |   |   |   |   |   | (12 | ) |   |   | 5,988 |   |
|   |                                    |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Securities Available for Sale:          |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Mortgage-backed securities - Non-Agency |   |                   | (9     | )      |                |   | 225    |       |   |   | (1,037 | ) |   |   | 3,311 |   |   |   | (1,046 | ) |   |   | 3,536 |   |
|   |                                    |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total securities available for sale     |   |                   | (9     | )      |                |   | 225    |       |   |   | (1,037 | ) |   |   | 3,311 |   |   |   | (1,046 | ) |   |   | 3,536 |   |
|   |                                    |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total                                   |   | $                      | (21    | )      |                | $      | 6,213  |       |   | $ | (1,037 | ) |   | $ | 3,311 |   |   | $ | (1,058 | ) |   | $ | 9,524 |   |

----

----

|                                                                                                                         |   | (Dollars in thousands) |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
| Credit component of OTTI as of October 1, 2009                                                                               |   | $                      | 2,859  |   |
|                                                                                                                         |   |                   |   |   |
| Additions for credit-related OTTI charges on previously unimpaired securities                                                |   |                   | 22     |   |
|                                                                                                                         |   |                   |   |   |
| Reductions for securities liquidated                                                                                         |   |                   | (332   | ) |
|                                                                                                                         |   |                   |   |   |
| Additional increases as a result of impairment charges recognized on investments for which an OTTI was previously recognized |   |                   | 538    |   |
|                                                                                                                         |   |                   |   |   |
| Credit component of OTTI as of September 30, 2010                                                                            |   | $                      | 3,087  |   |

----

----

|                                                  |   | Less than 12 months    |   |   | More than 12 months |   |   | Total      |   |
|-------------------------------------------------------|--------|------------------------|--------|--------|---------------------|--------|--------|------------|--------|
|                                                  |   | Gross                  |   |   |                |   |   | Gross      |   |   |   |   |   | Gross |   |   |   |   |
|                                                  |   | Unrealized             |   |   | Fair                |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |
|                                                  |   | Losses                 |   |   | Value               |   |   | Losses     |   |   | Value |   |   | Losses |   |   | Value |   |
|                                                  |   | (Dollars in Thousands) |   |
| Securities Held to Maturity:                          |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |
| U.S. government and agency obligations                |   | $                      | (643   | )      |                | $      | 52,854 |       |   | $ | (2 | ) |   | $ | 1,993 |   |   | $ | (645 | ) |   | $ | 54,847 |   |
|                                                  |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total securities held to maturity                     |   |                   | (643   | )      |                |   | 52,854 |       |   |   | (2 | ) |   |   | 1,993 |   |   |   | (645 | ) |   |   | 54,847 |   |
|                                                  |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities Available for Sale:                        |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. government and agency obligations                |   | $                      | -      |   |                | $      | -      |       |   | $ | (18 | ) |   | $ | 1,982 |   |   | $ | (18 | ) |   | $ | 1,982 |   |
| Mortgage-backed securities - U.S. government agencies |   |                   | (48    | )      |                |   | 2,886  |       |   |   | (9 | ) |   |   | 400 |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities - Non-Agency               |   |                   | (1,310 | )      |                |   | 2,757  |       |   |   | (1,254 | ) |   |   | 4,381 |   |   |   | (2,564 | ) |   |   | 7,138 |   |
|                                                  |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total securities available for sale                   |   |                   | (1,358 | )      |                |   | 5,643  |       |   |   | (1,281 | ) |   |   | 6,763 |   |   |   | (2,582 | ) |   |   | 9,120 |   |
|                                                  |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                 |   | $                      | (2,001 | )      |                | $      | 58,497 |       |   | $ | (1,283 | ) |   | $ | 8,756 |   |   | $ | (3,227 | ) |   | $ | 63,967 |   |

----

|                             |   | September 30, 2010     |   |
|----------------------------------|--------|------------------------|--------|
|                             |   | Held to Maturity       |   |   | Available for Sale |   |
|                             |   |                   |   |   |   |   |   |   |   |   |   |   |
|                             |   | Amortized              |   |   | Fair |   |   | Amortized |   |   | Fair |   |
|                             |   | Cost                   |   |   | Value |   |   | Cost |   |   | Value |   |
|                             |   | (Dollars in Thousands) |   |
| Due within one year              |   | $                      | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Due after one through five years |   |                   | 9,475  |   |   |   | 9,491 |   |   |   | - |   |   |   | - |   |
| Due after five through ten years |   |                   | 24,991 |   |   |   | 25,936 |   |   |   | 5,996 |   |   |   | 6,156 |   |
| Due after ten years              |   |                   | 51,992 |   |   |   | 52,850 |   |   |   | 3,999 |   |   |   | 4,037 |   |
|                             |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                            |   | $                      | 86,458 |   |   | $ | 88,277 |   |   | $ | 9,995 |   |   | $ | 10,193 |   |

|                             |   | September 30, 2009     |    |
|----------------------------------|--------|------------------------|---------|
|                             |   | Held to Maturity       |    |   | Available for Sale |   |
|                             |   |                   |    |   |   |   |   |   |   |   |   |   |
|                             |   | Amortized              |    |   | Fair |   |   | Amortized |   |   | Fair |   |
|                             |   | Cost                   |    |   | Value |   |   | Cost |   |   | Value |   |
|                             |   | (Dollars in Thousands) |    |
| Due within one year              |   | $                      | 2,000   |   |   | $ | 2,048 |   |   | $ | - |   |   | $ | - |   |
| Due after one through five years |   |                   | 790     |   |   |   | 791 |   |   |   | - |   |   |   | - |   |
| Due after five through ten years |   |                   | 43,671  |   |   |   | 43,874 |   |   |   | - |   |   |   | - |   |
| Due after ten years              |   |                   | 79,432  |   |   |   | 79,422 |   |   |   | 2,000 |   |   |   | 1,982 |   |
|                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                            |   | $                      | 125,893 |   |   | $ | 126,135 |   |   | $ | 2,000 |   |   | $ | 1,982 |   |

----

| 5. | LOANS RECEIVABLE |
|----|------------------|

|                                                                          |   | September 30,          |    |
|-------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                          |   | 2010                   |    |   | 2009 |   |
|                                                                          |   | (Dollars in Thousands) |    |
| One-to four-family residential                                                |   | $                      | 197,164 |   |   | $ | 201,396 |   |
| Multi-family residential                                                      |   |                   | 4,006   |   |   |   | 4,178 |   |
| Commercial real estate                                                        |   |                   | 19,710  |   |   |   | 19,907 |   |
| Construction and land development                                             |   |                   | 40,650  |   |   |   | 36,764 |   |
| Commercial business                                                           |   |                   | 893     |   |   |   | 2,232 |   |
| Consumer                                                                      |   |                   | 595     |   |   |   | 586 |   |
|                                                                          |   |                   |    |   |   |   |   |   |
|            Total loans |   |                   | 263,018 |   |   |   | 265,063 |   |
|                                                                          |   |                   |    |   |   |   |   |   |
| Undisbursed portion of loans-in-process                                       |   |                   | (5,366  | ) |   |   | (6,281 | ) |
| Deferred loan costs                                                           |   |                   | 590     |   |   |   | 644 |   |
| Allowance for loan losses                                                     |   |                   | (3,151  | ) |   |   | (2,732 | ) |
|                                                                          |   |                   |    |   |   |   |   |   |
| Net                                                                           |   | $                      | 255,091 |   |   | $ | 256,694 |   |

|                       |   | Year Ended September 30, |   |
|----------------------------|--------|--------------------------|--------|
|                       |   | 2010                     |   |   | 2009 |   |
|                       |   | (Dollars in Thousands)   |   |
|                       |   |                     |   |   |   |   |
| Balance, beginning of year |   | $                        | 2,732  |   |   | $ | 1,591 |   |
| Provision for loan losses  |   |                     | 1,110  |   |   |   | 1,403 |   |
| Charge-offs                |   |                     | (691   | ) |   |   | (262 | ) |
| Recoveries                 |   |                     | -      |   |   |   | - |   |
|                       |   |                     |   |   |   |   |   |   |
| Balance, end of year       |   | $                        | 3,151  |   |   | $ | 2,732 |   |

----

|                                         |   | Year Ended September 30, |   |
|----------------------------------------------|--------|--------------------------|--------|
|                                         |   | 2010                     |   |   | 2009 |   |
|                                         |   | (Dollars in Thousands)   |   |
| Impaired loans with a valuation allowance    |   | $                        | 5,059  |   |   | $ | 1,661 |   |
| Impaired loans without a valuation allowance |   | $                        | -      |   |   | $ | - |   |
| Average impaired loans                       |   | $                        | 2,191  |   |   | $ | 3,176 |   |
| Interest income recognized on impaired loans |   | $                        | 165    |   |   | $ | 41 |   |

| 6. | OFFICE PROPERTIES AND EQUIPMENT |
|----|---------------------------------|

|                                                                        |   | September 30,          |   |
|-----------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                        |   | 2010                   |   |   | 2009 |   |
|                                                                        |   | (Dollars in Thousands) |   |
|                                                                        |   |                   |   |   |   |   |
| Land                                                                        |   | $                      | 247    |   |   | $ | 247 |   |
| Buildings and improvements                                                  |   |                   | 2,565  |   |   |   | 2,565 |   |
| Furniture and equipment                                                     |   |                   | 3,430  |   |   |   | 3,052 |   |
| Automobiles                                                                 |   |                   | 144    |   |   |   | 122 |   |
|                                                                        |   |                   |   |   |   |   |   |   |
|           Total           |   |                   | 6,386  |   |   |   | 5,986 |   |
| Accumulated depreciation                                                    |   |                   | (4,317 | ) |   |   | (3,994 | ) |
|                                                                        |   |                   |   |   |   |   |   |   |
| Total office properties and equipment, net of accumulated depreciation |   | $                      | 2,069  |   |   | $ | 1,992 |   |

----

|                                          |   | September 30,          |    |
|-----------------------------------------------|--------|------------------------|---------|
|                                          |   | 2010                   |    |   | 2009 |   |
|                                          |   | Amount                 |    |   | Percent |   |   | Amount |   |   | Percent |   |
|                                          |   | (Dollars in thousands) |    |
|                                          |   |                   |    |   |   |   |   |   |   |   |   |   |
| Money market deposit accounts                 |   | $                      | 75,822  |   |   |   | 16.3 | % |   | $ | 75,349 |   |   |   | 17.4 | % |
| Checking accounts (1)                         |   |                   | 28,642  |   |   |   | 6.2 |   |   |   | 29,869 |   |   |   | 6.9 |   |
| Passbook, club and statement savings          |   |                   | 69,901  |   |   |   | 15.1 |   |   |   | 66,968 |   |   |   | 15.5 |   |
| Certificates maturing in six months or less   |   |                   | 111,180 |   |   |   | 23.9 |   |   |   | 120,636 |   |   |   | 27.9 |   |
| Certificates maturing in more than six months |   |                   | 178,910 |   |   |   | 38.5 |   |   |   | 139,552 |   |   |   | 32.3 |   |
|                                          |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total                                  |   | $                      | 464,455 |   |   |   | 100.0 | % |   | $ | 432,374 |   |   |   | 100.0 | % |

|   | (1) | Indicates interest and non-interest bearing checking accounts. |
|--------|-----|----------------------------------------------------------------|

|                     |   | September 30, 2010     |    |
|--------------------------|--------|------------------------|---------|
|                     |   | (Dollars in Thousands) |    |
|                     |   |                   |    |
| One year or less         |   | $                      | 219,942 |   |
| One through two years    |   |                   | 26,271  |   |
| Two through three years  |   |                   | 20,681  |   |
| Three through four years |   |                   | 10,200  |   |
| Four through five years  |   |                   | 12,996  |   |
|                     |   |                   |    |   |
| Total                    |   | $                      | 290,090 |   |

----

|                                          |   | Year Ended September 30, |   |
|-----------------------------------------------|--------|--------------------------|--------|
|                                          |   | 2010                     |   |   | 2009 |   |
|                                          |   | (Dollars in Thousands)   |   |
| Checking and money market deposit accounts    |   | $                        | 1,119  |   |   | $ | 1,863 |   |
| Passbook, club and statement savings accounts |   |                     | 1,230  |   |   |   | 1,532 |   |
| Certificate accounts                          |   |                     | 6,321  |   |   |   | 8,585 |   |
| Total                                         |   | $                        | 8,670  |   |   | $ | 11,980 |   |

|   |           |   |                   |   |
|--------|----------------|--------|------------------------|--------|
|   |           |   | 2009                   |   |
|   |           |   |                   |   |   | Fixed |   |
|   |           |   |                   |   |   | Interest |   |
|   | Due            |   | Amount                 |   |   | Rate |   |
|   |           |   | (Dollars in thousands) |   |
|   | December 2009  |   | $                      | 6,000  |   |   |   | 1.59 | % |
|   | July 2010      |   |                   | 2,000  |   |   |   | 5.98 | % |
|   | August 2010    |   |                   | 3,000  |   |   |   | 5.93 | % |
|   | September 2010 |   |                   | 8,000  |   |   |   | 5.69 | % |
|   |           |   |                   |   |   |   |   |   |   |
|   |           |   | $                      | 19,000 |   |   |   |   |   |

----

| 9. | INCOME TAXES |
|----|--------------|

|   |                                                                            |   | Year Ended September 30, |   |
|--------|---------------------------------------------------------------------------------|--------|--------------------------|--------|
|   |                                                                            |   | 2010                     |   |   | 2009 |   |
|   |                                                                            |   | (Dollars in Thousands)   |   |
|   |                                                                            |   |                     |   |   |   |   |
|   | Current:                                                                        |   |                     |   |   |   |   |
|   |    Federal                                                       |   | $                        | 1,528  |   |   | $ | 1,625 |   |
|   |    State                                                         |   |                     | -      |   |   |   | - |   |
|   |           Total current taxes |   |                     | 1,528  |   |   |   | 1,625 |   |
|   |                                                                            |   |                     |   |   |   |   |   |   |
|   | Deferred income tax benefit                                                     |   |                     | (482   | ) |   |   | (1,275 | ) |
|   | Total income tax provision                                                      |   | $                        | 1,046  |   |   | $ | 350 |   |

----

|                                                             |   | September 30,          |   |
|------------------------------------------------------------------|--------|------------------------|--------|
|                                                             |   | 2010                   |   |   | 2009 |   |
|                                                             |   | (Dollars in Thousands) |   |
| Deferred tax assets:                                             |   |                   |   |   |   |   |
| Unrealized loss on available for sale securities                 |   | $                      | -      |   |   | $ | 201 |   |
| Deposit premium                                                  |   |                   | 118    |   |   |   | 167 |   |
| Allowance for loan losses                                        |   |                   | 1,114  |   |   |   | 974 |   |
| Real estate owned expenses                                       |   |                   | 291    |   |   |   | 469 |   |
| Non-accrual interest                                             |   |                   | -      |   |   |   | 15 |   |
| Accrued vacation                                                 |   |                   | 59     |   |   |   | 44 |   |
| Capital loss carryforward                                        |   |                   | 1,873  |   |   |   | 1,873 |   |
| Impairment loss                                                  |   |                   | 1,553  |   |   |   | 1,363 |   |
| Post-retirement benefit plans                                    |   |                   | 173    |   |   |   | 154 |   |
| Split dollar life insurance                                      |   |                   | 33     |   |   |   | 84 |   |
| Employee benefit plans                                           |   |                   | 298    |   |   |   | 246 |   |
| Total deferred tax assets                                        |   |                   | 5,512  |   |   |   | 5,590 |   |
| Valuation allowance                                              |   |                   | (2,209 | ) |   |   | (2,551 | ) |
| Total deferred  tax assets, net of valuation allowance |   |                   | 3,303  |   |   |   | 3,039 |   |
|                                                             |   |                   |   |   |   |   |   |   |
| Deferred tax liabilities:                                        |   |                   |   |   |   |   |   |   |
| Unrealized gain on available for sale securities                 |   |                   | 861    |   |   |   | - |   |
| Property                                                         |   |                   | 478    |   |   |   | 480 |   |
| Mortgage servicing                                               |   |                   | 2      |   |   |   | 4 |   |
| Deferred loan fees                                               |   |                   | 200    |   |   |   | 212 |   |
| Total                                                            |   |                   | 1,541  |   |   |   | 696 |   |
| Net deferred tax asset                                           |   | $                      | 1,762  |   |   | $ | 2,343 |   |

----

|                                              |   | Year Ended September 30, |   |
|---------------------------------------------------|--------|--------------------------|--------|
|                                              |   | 2010                     |   |   | 2009 |   |
|                                              |   |                     |   |   | Percentage |   |   |   |   |   | Percentage |   |
|                                              |   |                     |   |   | of Pretax |   |   |   |   |   | of Pretax |   |
|                                              |   | Amount                   |   |   | Income |   |   | Amount |   |   | Income |   |
|                                              |   | (Dollars in Thousands)   |   |
| Tax at statutory rate                             |   | $                        | 1,420  |   |   |   | 34.0 | % |   | $ | (162 | ) |   |   | (34.0 | )% |
| Adjustments resulting from:                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Valuation allowance                   |   |                     | (342   | ) |   |   | (8.2 | ) |   |   | 560 |   |   |   | 117.6 |   |
|   Income from bank owned life insurance |   |                     | (69    | ) |   |   | (1.7 | ) |   |   | (71 | ) |   |   | (14.9 | ) |
|   Income from muncipal obligations      |   |                     | (13    | ) |   |   | (0.3 | ) |   |   | (28 | ) |   |   | (5.9 | ) |
|   Employee stock option plan            |   |                     | 59     |   |   |   | 1.4 |   |   |   | 44 |   |   |   | 9.2 |   |
|   Other                                 |   |                     | (9     | ) |   |   | (0.2 | ) |   |   | 7 |   |   |   | 1.5 |   |
|                                              |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense per statements of income  |   | $                        | 1,046  |   |   |   | 25.0 | % |   | $ | 350 |   |   |   | 22.6 | % |

| 10. | REGULATORY CAPITAL REQUIREMENTS |
|-----|---------------------------------|

----

|                                     |   |   |   |   |              |   |   |                   |   |   |              |   |   | To Be            |   |
|------------------------------------------|--------|--------|--------|--------|-------------------|--------|--------|------------------------|--------|--------|-------------------|--------|--------|------------------|--------|
|                                     |   |   |   |   |              |   |   |                   |   |   |              |   |   | Well Capitalized |   |
|                                     |   |   |   |   |              |   |   |                   |   |   |              |   |   | Under Prompt     |   |
|                                     |   |   |   |   |              |   |   | Required for Capital   |   |   | Corrective Action |   |
|                                     |   | Actual |   |   | Adequacy Purposes |   |   | Provisions             |   |
|                                     |   | Amount |   |   | Ratio             |   |   | Amount                 |   |   | Ratio             |   |   | Amount           |   |   | Ratio |   |
|                                     |   |   |   |   |              |   |   | (Dollars in Thousands) |   |   |              |   |   |             |   |
| September 30, 2010:                      |   |   |   |   |              |   |   |                   |   |   |              |   |   |             |   |   |   |   |
| Tier 1 capital (to average assets)       |   |   |   |   |              |   |   |                   |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |
| Company                                  |   | $      | 55,327 |   |              |   | 10.27  | %                      |   | $      | 21,541            |   |   |             | 4.0    | % |   |   | N/A |   |   |   | N/A |   |
| Bank                                     |   |   | 50,932 |   |              |   | 9.46   |                   |   |   | 21,541            |   |   |             | 4.0    |   |   | $ | 26,926 |   |   |   | 5.0 | % |
| Tier 1 capital (to risk-weighted assets) |   |   |   |   |              |   |   |                   |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |
| Company                                  |   |   | 55,327 |   |              |   | 23.12  |                   |   |   | 9,573             |   |   |             | 4.0    |   |   |   | N/A |   |   |   | N/A |   |
| Bank                                     |   |   | 50,932 |   |              |   | 21.28  |                   |   |   | 9,573             |   |   |             | 4.0    |   |   |   | 14,359 |   |   |   | 6.0 |   |
| Total capital (to risk-weighted assets)  |   |   |   |   |              |   |   |                   |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |
| Company                                  |   |   | 58,320 |   |              |   | 24.37  |                   |   |   | 19,146            |   |   |             | 8.0    |   |   |   | N/A |   |   |   | N/A |   |
| Bank                                     |   |   | 53,925 |   |              |   | 22.53  |                   |   |   | 19,146            |   |   |             | 8.0    |   |   |   | 23,932 |   |   |   | 10.0 |   |
|                                     |   |   |   |   |              |   |   |                   |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |
| September 30, 2009:                      |   |   |   |   |              |   |   |                   |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital (to average assets)       |   |   |   |   |              |   |   |                   |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |
| Company                                  |   | $      | 56,248 |   |              |   | 10.86  | %                      |   | $      | 20,709            |   |   |             | 4.0    | % |   |   | N/A |   |   |   | N/A |   |
| Bank                                     |   |   | 51,712 |   |              |   | 9.99   |                   |   |   | 20,709            |   |   |             | 4.0    |   |   | $ | 25,886 |   |   |   | 5.0 | % |
| Tier 1 capital (to risk-weighted assets) |   |   |   |   |              |   |   |                   |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |
| Company                                  |   |   | 56,248 |   |              |   | 24.59  |                   |   |   | 9,150             |   |   |             | 4.0    |   |   |   | N/A |   |   |   | N/A |   |
| Bank                                     |   |   | 51,712 |   |              |   | 22.61  |                   |   |   | 9,150             |   |   |             | 4.0    |   |   |   | 13,724 |   |   |   | 6.0 |   |
| Total capital (to risk-weighted assets)  |   |   |   |   |              |   |   |                   |   |   |              |   |   |             |   |   |   |   |   |   |   |   |   |   |
| Company                                  |   |   | 58,990 |   |              |   | 25.79  |                   |   |   | 18,299            |   |   |             | 8.0    |   |   |   | N/A |   |   |   | N/A |   |
| Bank                                     |   |   | 54,454 |   |              |   | 23.81  |                   |   |   | 18,299            |   |   |             | 8.0    |   |   |   | 22,874 |   |   |   | 10.0 |   |

| 11. | EMPLOYEE BENEFITS |
|-----|-------------------|

----

----

|   |                                            |   | Year EndedSeptember 30, 2010 |    |
|--------|-------------------------------------------------|--------|------------------------------|---------|
|   |                                            |   | Number ofShares              |    |   | Weighted AverageGrant Date FairValue |   |
|   |                                            |   |                         |    |   |   |   |
|   | Nonvested stock awards at beginning of year     |   |                         | 173,228 |   |   | $ | 11.17 |   |
|   | Issued                                          |   |                         | 5,654   |   |   |   | 9.53 |   |
|   | Vested                                          |   |                         | (34,646 | ) |   |   | 11.17 |   |
|   | Nonvested stock awards at the end of the period |   |                         | 144,236 |   |   | $ | 11.11 |   |

|   |                                     |   | Year Ended September 30, 2010 |    |
|--------|------------------------------------------|--------|------------------------------------|---------|
|   |                                     |   | Number ofShares                    |    |   | Weighted AverageExercise Price |   |
|   |                                     |   |                               |    |   |   |   |
|   | Options outstanding at beginning of year |   |                               | 428,266 |   |   | $ | 11.17 |   |
|   | Granted                                  |   |                               | 14,134  |   |   |   | 9.53 |   |
|   | Exercised                                |   |                               | -       |   |   |   | - |   |
|   | Forfeited                                |   |                               | -       |   |   |   | - |   |
|   | Outstanding at the end of the period     |   |                               | 442,400 |   |   | $ | 11.12 |   |
|   | Exercisable at the end of the period     |   |                               | 85,653  |   |   | $ | 11.17 |   |

----

|   |                     |   | September 30, 2010 |
|--------|--------------------------|--------|--------------------|
|   | Dividend yield           |   | 2.10%              |
|   | Expected volatility      |   | 28.95%             |
|   | Risk-free interest rate  |   | 3.10%              |
|   | Expected life of options |   | 6.5 years          |

| 12. | COMMITMENTS AND CONTINGENT LIABILITIES |
|-----|----------------------------------------|

----

|   | September 30, |   | Lease Obligation       |   |
|--------|---------------|--------|------------------------|--------|
|   |          |   | (Dollars in Thousands) |   |
|   | 2011          |   | $                      | 78     |   |
|   | 2012          |   |                   | 57     |   |
|   | 2013          |   |                   | 15     |   |
|   | 2014          |   |                   | 15     |   |
|   | 2015          |   |                   | 10     |   |
|   | Total         |   | $                      | 175    |   |

| 13. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
|-----|-------------------------------------|

|   |                                                         |   | September 30,          |    |
|--------|--------------------------------------------------------------|--------|------------------------|---------|
|   |                                                         |   | 2010                   |    |   | 2009 |   |
|   |                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |
|   |                                                         |   | Carrying               |    |   | Fair |   |   | Carrying |   |   | Fair |   |
|   |                                                         |   | Amount                 |    |   | Value |   |   | Amount |   |   | Value |   |
|   |                                                         |   | (Dollars in Thousands) |    |
|   | Assets:                                                      |   |                   |    |   |   |   |   |   |   |   |   |   |
|   | Cash and cash equivalents                                    |   | $                      | 66,524  |   |   | $ | 66,524 |   |   | $ | 13,669 |   |   | $ | 13,669 |   |
|   | Investment and mortgage-backed securities held to maturity   |   |                   | 112,673 |   |   |   | 116,594 |   |   |   | 160,126 |   |   |   | 161,968 |   |
|   | Investment and mortgage-backed securities available for sale |   |                   | 72,425  |   |   |   | 72,425 |   |   |   | 62,407 |   |   |   | 62,407 |   |
|   | Loans receivable, net                                        |   |                   | 255,091 |   |   |   | 262,777 |   |   |   | 256,694 |   |   |   | 262,000 |   |
|   | Accrued interest receivable                                  |   |                   | 3,197   |   |   |   | 3,197 |   |   |   | 3,622 |   |   |   | 3,622 |   |
|   | Federal Home Loan Bank stock                                 |   |                   | 3,545   |   |   |   | 3,545 |   |   |   | 3,545 |   |   |   | 3,545 |   |
|   | Bank owned life insurance                                    |   |                   | 5,990   |   |   |   | 5,990 |   |   |   | 5,786 |   |   |   | 5,786 |   |
|   |                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Liabilities:                                                 |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Checking accounts                                            |   |                   | 28,642  |   |   |   | 28,642 |   |   |   | 29,869 |   |   |   | 29,869 |   |
|   | Money market deposit accounts                                |   |                   | 75,822  |   |   |   | 75,822 |   |   |   | 75,349 |   |   |   | 75,349 |   |
|   | Passbook, club and statement savings accounts                |   |                   | 69,901  |   |   |   | 69,901 |   |   |   | 66,968 |   |   |   | 66,968 |   |
|   | Certificates of deposit                                      |   |                   | 290,090 |   |   |   | 296,087 |   |   |   | 260,188 |   |   |   | 266,192 |   |
|   | Advances from Federal Home Loan Bank                         |   |                   | 615     |   |   |   | 614 |   |   |   | 19,659 |   |   |   | 20,294 |   |
|   | Accrued interest payable                                     |   |                   | 3,361   |   |   |   | 3,361 |   |   |   | 3,463 |   |   |   | 3,463 |   |

----

| 14. | FAIR VALUE MEASUREMENTS |
|-----|-------------------------|

----

| Level 1 | Quoted prices in active markets for identical assets or liabilities.                                                                                                                                                                                                                                                                                                                                                                                   |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 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 |   |
|-------------------------------------------------------|--------|------------------------------------------|--------|
|                                                  |   | Level 1                                  |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                                  |   | (Dollars in Thousands)                   |   |
|                                                  |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Assets:                                               |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Securities available for sale:                        |   |                                     |   |   |   |   |   |   |   |   |   |   |
| U.S. Government and agency obligations                |   | $                                        | -      |   |   | $ | 10,193 |   |   | $ | - |   |   | $ | 10,193 |   |
| Mortgage-backed securities - U.S. Government agencies |   |                                     | -      |   |   |   | 55,025 |   |   |   | - |   |   |   | 55,025 |   |
| Mortgage-backed securities - Non-agency               |   |                                     | -      |   |   |   | 7,199 |   |   |   | - |   |   |   | 7,199 |   |
| FNMA and FHLMC preferred stock                        |   |                                     | 8      |   |   |   | - |   |   |   | - |   |   |   | 8 |   |
| Total                                                 |   | $                                        | 8      |   |   | $ | 72,417 |   |   | $ | - |   |   | $ | 72,425 |   |

----

|                                                  |   | Category Used for Fair Value Measurement |   |
|-------------------------------------------------------|--------|------------------------------------------|--------|
|                                                  |   | Level 1                                  |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                                  |   | (Dollars in Thousands)                   |   |
|                                                  |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Assets:                                               |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Securities available for sale:                        |   |                                     |   |   |   |   |   |   |   |   |   |   |
| U.S. Government and agency obligations                |   | $                                        | -      |   |   | $ | 1,982 |   |   | $ | - |   |   | $ | 1,982 |   |
| Mortgage-backed securities - U.S. Government agencies |   |                                     | -      |   |   |   | 52,611 |   |   |   | - |   |   |   | 52,611 |   |
| Mortgage-backed securities - Non-agency               |   |                                     | -      |   |   |   | 7,685 |   |   |   | 82 |   |   |   | 7,767 |   |
| FNMA and FHLMC preferred stock                        |   |                                     | 47     |   |   |   | - |   |   |   | - |   |   |   | 47 |   |
| Total                                                 |   | $                                        | 47     |   |   | $ | 62,278 |   |   | $ | 82 |   |   | $ | 62,407 |   |

|                                               |   | Fair Value Measurements UsingSignificant Unobservable Inputs(Level 3) |   |
|----------------------------------------------------|--------|-----------------------------------------------------------------------|--------|
|                                               |   | Non agency mortgage-backedsecurities                                  |   |
|                                               |   | (Dollars in Thousands)                                                |   |
|                                               |   |                                                                  |   |
| Balance, October 1, 2009:                          |   | $                                                                     | 82     |   |
| Total losses, realized/unrealized                  |   |                                                                  |   |   |
| Included in earnings                               |   |                                                                  | (11    | ) |
| Included in accumulated other comprehensive income |   |                                                                  | 25     |   |
| Purchases, maturities, prepayments and calls, net  |   |                                                                  | (21    | ) |
| Transfers from Level 3, net                        |   |                                                                  | (75    | ) |
| Balance, September 30, 2010:                       |   | $                                                                     | -      |   |

----

|              |   | At September 30, 2010(In Thousands)  |   |   |    |   |
|-------------------|--------|-------------------------------------------|--------|--------|---------|--------|
|              |   | Level 1                                   |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Impaired Loans    |   | $                                         | -      |   |    | $      | 4,249 |   |   | $ | - |   |   |   | 4,249 |   |
| Real estate owned |   |                                      | -      |   |    |   | 3,197 |   |   |   | - |   |   |   | 3,197 |   |
| Total             |   | $                                         | -      |   |    | $      | 7,446 |   |   | $ | - |   |   | $ | 7,446 |   |

|              |   | At September 30, 2009(In Thousands)  |   |   |    |   |
|-------------------|--------|-------------------------------------------|--------|--------|---------|--------|
|              |   | Level 1                                   |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Impaired Loans    |   | $                                         | -      |   |    | $      | 788 |   |   | $ | - |   |   |   | 788 |   |
| Real estate owned |   |                                      | -      |   |    |   | 3,622 |   |   |   | - |   |   |   | 3,622 |   |
| Total             |   | $                                         | -      |   |    | $      | 4,410 |   |   | $ | - |   |   | $ | 4,410 |   |

----

| STATEMENT OF FINANCIAL CONDITION                 |   |                   |    |   |   |   |
|--------------------------------------------------|--------|------------------------|---------|--------|--------|--------|
| At September 30,                                 |   | 2010                   |    |   | 2009   |   |
|                                             |   | (Dollars in Thousands) |    |
| Assets:                                          |   |                   |    |   |   |   |
| Cash                                             |   | $                      | 1,062   |   |   | $      | 954 |   |
| ESOP loan receivable                             |   |                   | 3,689   |   |   |   | 3,848 |   |
| Investment in Bank                               |   |                   | 52,604  |   |   |   | 51,321 |   |
| Other assets                                     |   |                   | 146     |   |   |   | 251 |   |
| Total assets                                     |   | $                      | 57,501  |   |   | $      | 56,374 |   |
|                                             |   |                   |    |   |   |   |   |   |
| Liabilities:                                     |   |                   |    |   |   |   |   |   |
| Accrued dividend payable                         |   | $                      | 502     |   |   | $      | 517 |   |
| Total liabilities                                |   |                   | 502     |   |   |   | 517 |   |
|                                             |   |                   |    |   |   |   |   |   |
| Stockholders’ equity:                      |   |                   |    |   |   |   |   |   |
| Preferred stock                                  |   |                   | -       |   |   |   | - |   |
| Common stock                                     |   |                   | 126     |   |   |   | 126 |   |
| Additional paid-in-capital                       |   |                   | 53,528  |   |   |   | 52,938 |   |
| Unearned ESOP shares                             |   |                   | (3,234  | )      |   |   | (3,457 | ) |
| Treasury stock                                   |   |                   | (31,576 | )      |   |   | (28,652 | ) |
| Retained earnings                                |   |                   | 36,483  |   |   |   | 35,293 |   |
| Accumulated other comprehensive income (loss)    |   |                   | 1,672   |   |   |   | (391 | ) |
| Total stockholders’ equity                 |   |                   | 56,999  |   |   |   | 55,857 |   |
|                                             |   |                   |    |   |   |   |   |   |
| Total liabilities and stockholders’ equity |   | $                      | 57,501  |   |   | $      | 56,374 |   |

----

| INCOME STATEMENT                             |   |                   |   |   |   |   |
|----------------------------------------------|--------|------------------------|--------|--------|--------|--------|
| For the year ended September 30,             |   | 2010                   |   |   | 2009   |   |
|                                         |   | (Dollars in thousands) |   |
| Interest on ESOP loan                        |   | $                      | 218    |   |   | $      | 227 |   |
| Equity in the undistributed loss of the Bank |   |                   | (1,576 | )      |   |   | (11,118 | ) |
| Dividends from Bank                          |   |                   | 5,000  |   |   |   | 10,450 |   |
| Other income                                 |   |                   | 15     |   |   |   | 53 |   |
|                                         |   |                   |   |   |   |   |   |   |
| Total income                                 |   |                   | 3,657  |   |   |   | (388 | ) |
|                                         |   |                   |   |   |   |   |   |   |
| Professional services                        |   |                   | 288    |   |   |   | 323 |   |
| Other expense                                |   |                   | 390    |   |   |   | 198 |   |
|                                         |   |                   |   |   |   |   |   |   |
| Total expense                                |   |                   | 678    |   |   |   | 521 |   |
|                                         |   |                   |   |   |   |   |   |   |
| Income (loss) before income taxes            |   |                   | 2,979  |   |   |   | (909 | ) |
|                                         |   |                   |   |   |   |   |   |   |
| Income tax benefit                           |   |                   | (151   | )      |   |   | (83 | ) |
|                                         |   |                   |   |   |   |   |   |   |
| Net (loss) income                            |   | $                      | 3,130  |   |   | $      | (826 | ) |

| CASH FLOWS                                           |   |                   |   |   |   |   |
|------------------------------------------------------|--------|------------------------|--------|--------|--------|--------|
| For the year ended September 30,                     |   | 2010                   |   |   | 2009   |   |
|                                                 |   | (Dollars in thousands) |   |
| Operating activities:                                |   |                   |   |   |   |   |
| Net income (loss)                                    |   | $                      | 3,130  |   |   | $      | (826 | ) |
| Decrease (increase) in assets                        |   |                   | 107    |   |   |   | (68 | ) |
| Equity in the undistributed loss of the Bank         |   |                   | 1,576  |   |   |   | 11,118 |   |
|                                                 |   |                   |   |   |   |   |   |   |
| Net cash provided by operating activities            |   |                   | 4,813  |   |   |   | 10,224 |   |
|                                                 |   |                   |   |   |   |   |   |   |
| Investing activities:                                |   |                   |   |   |   |   |   |   |
| Repayments received on ESOP loan                     |   |                   | 159    |   |   |   | 150 |   |
|                                                 |   |                   |   |   |   |   |   |   |
| Net cash provided by investing activities       |   |                   | 159    |   |   |   | 150 |   |
| Financing activities:                                |   |                   |   |   |   |   |   |   |
| Cash dividends paid                                  |   |                   | (1,940 | )      |   |   | (2,083 | ) |
| Payment to repurchase common stock                   |   |                   | (2,924 | )      |   |   | (9,171 | ) |
|                                                 |   |                   |   |   |   |   |   |   |
| Net cash used in financing activities                |   |                   | (4,864 | )      |   |   | (11,254 | ) |
|                                                 |   |                   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents |   |                   | 108    |   |   |   | (880 | ) |
|                                                 |   |                   |   |   |   |   |   |   |
| Cash and cash equivalents, beginning of year         |   |                   | 954    |   |   |   | 1,834 |   |
|                                                 |   |                   |   |   |   |   |   |   |
| Cash and cash equivalents, end of year               |   | $                      | 1,062  |   |   | $      | 954 |   |

----

| 16. | CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) |
|-----|---------------------------------------------------|

|                                       |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                       |   | September 30, 2010 |   |   | September 30, 2009 |   |
|                                       |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | 1st                |   |   | 2nd                |   |   | 3rd    |   |   | 4th    |   |   | 1st    |   |   | 2nd    |   |   | 3rd    |   |   | 4th    |   |
|                                       |   | Qtr                |   |   | Qtr                |   |   | Qtr    |   |   | Qtr    |   |   | Qtr    |   |   | Qtr    |   |   | Qtr    |   |   | Qtr    |   |
|                                       |   | (In thousands)     |   |   | (In thousands)     |   |
|                                       |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                            |   | $                  | 6,466  |   |               | $      | 6,311  |   |   | $      | 6,312  |   |   | $      | 6,020  |   |   | $      | 7,227  |   |   | $      | 6,905  |   |   | $ | 6,620 |   |   | $ | 6,634 |   |
| Interest expenses                          |   |               | 2,489  |   |               |   | 2,286  |   |   |   | 2,344  |   |   |   | 2,298  |   |   |   | 3,462  |   |   |   | 3,426  |   |   |   | 3,188 |   |   |   | 2,865 |   |
| Net interest income                        |   |               | 3,977  |   |               |   | 4,025  |   |   |   | 3,968  |   |   |   | 3,722  |   |   |   | 3,765  |   |   |   | 3,479  |   |   |   | 3,432 |   |   |   | 3,769 |   |
| Provision for loan losses                  |   |               | 135    |   |               |   | 250    |   |   |   | 110    |   |   |   | 615    |   |   |   | 313    |   |   |   | 50     |   |   |   | 810 |   |   |   | 230 |   |
| Net income after provision for loan losses |   |               | 3,842  |   |               |   | 3,775  |   |   |   | 3,858  |   |   |   | 3,107  |   |   |   | 3,452  |   |   |   | 3,429  |   |   |   | 2,622 |   |   |   | 3,539 |   |
| Non-interest income (charges)              |   |               | 19     |   |               |   | 62     |   |   |   | 169    |   |   |   | 137    |   |   |   | (1,947 | )      |   |   | (434   | )      |   |   | (55 | ) |   |   | (16 | ) |
| Non-interest expense                       |   |               | 2,553  |   |               |   | 2,661  |   |   |   | 2,789  |   |   |   | 2,791  |   |   |   | 2,454  |   |   |   | 2,678  |   |   |   | 2,782 |   |   |   | 3,151 |   |
| Income (loss) before income taxes          |   |               | 1,308  |   |               |   | 1,176  |   |   |   | 1,238  |   |   |   | 453    |   |   |   | (949   | )      |   |   | 317    |   |   |   | (215 | ) |   |   | 372 |   |
| Income tax expense (benefit)               |   |               | 622    |   |               |   | 333    |   |   |   | (41    | )      |   |   | 131    |   |   |   | 44     |   |   |   | 365    |   |   |   | 11 |   |   |   | (69 | ) |
| Net (loss) income                          |   | $                  | 686    |   |               | $      | 843    |   |   | $      | 1,279  |   |   | $      | 322    |   |   | $      | (993   | )      |   | $      | (48    | )      |   | $ | (226 | ) |   | $ | 441 |   |
|                                       |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per share:                                 |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share - basic          |   | $                  | 0.07   |   |               | $      | 0.09   |   |   | $      | 0.13   |   |   | $      | 0.03   |   |   | $      | (0.09  | )      |   | $      | (0.004 | )      |   | $ | (0.02 | ) |   | $ | 0.04 |   |
| Earnings (loss) per share - diluted        |   |               | 0.07   |   |               |   | 0.09   |   |   |   | 0.13   |   |   |   | 0.03   |   |   |   | (0.09  | )      |   | $      | (0.004 | )      |   |   | (0.02 | ) |   |   | 0.04 |   |
| Dividends per share                        |   |               | 0.05   |   |               |   | 0.05   |   |   |   | 0.05   |   |   |   | 0.05   |   |   |   | 0.05   |   |   |   | 0.05   |   |   |   | 0.05 |   |   |   | 0.05 |   |

| 17. | SUBSEQUENT EVENTS |
|-----|-------------------|

----

|   | ● | maintain records that accurately reflect the Company’s transactions; |
|--------|---------|----------------------------------------------------------------------------|

|   | ● | prepare financial statement and footnote disclosures in accordance with GAAP that can be relied upon by external users; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | ● | prevent and detect unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  |   |                      |                        |   |
|---------------------------------------|--------|---------------------------|-----------------------------|--------|
| /s/ Thomas A. Vento                   |   |                      | /s/ Joseph R. Corrato       |   |
| Thomas A. Vento                       |   |                      | Joseph R. Corrato           |   |
| President and Chief Executive Officer |   | Executive Vice President, |
|                                  |   |                      | Chief Financial Officer and |
|                                  |   |                      | Chief Accounting Officer    |

----

| Plan Category                                              |      | Number of securities to beissued upon exercise ofoutstanding options, warrantsand rights(a) |    |            | Weighted-averageexercise price ofoutstanding options,warrants and rights(b) |   |   | Number of securities remainingavailable for future issuanceunder equity compensationplans (excluding securitiesreflected in column (a))(c) |   |
|------------------------------------------------------------|--------------------------|---------------------------------------------------------------------------------------------|---------|-----------------|-----------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity compensation plans approved by security holders     |                     |                                                                                        | 586,636 | (1)   |                                                                        | $      | 11.12  | (1)                                                                                                                              |   |   | 170,235 |   |
| Equity compensation plans not approved by security holders |                     |                                                                                        | --      |            |                                                                        |   | --     |                                                                                                                                       |   |   |  -- |   |
| Total                                                      |                     |                                                                                        | 586,636 |            |                                                                        | $      | 11.12  |                                                                                                                                       |   |   | 170,235 |   |

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| (1) | Includes 144,236 shares subject to restricted stock grants which were not vested as of September 30, 2010.  The weighted-average exercise price excludes such restricted stock grants. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | The following financial statements are incorporated by reference from Item 8 hereof: |
|-----|--------------------------------------------------------------------------------------|

|   | Consolidated Statements of Financial Condition |
|--------|------------------------------------------------|

|   | Consolidated Statements of Operations |
|--------|---------------------------------------|

|   | Consolidated Statements of Changes in Stockholders’ Equity and Comprehensive Income (Loss) |
|--------|-------------------------------------------------------------------------------------------------------|

|   | Consolidated Statements of Cash Flows |
|--------|---------------------------------------|

|   | Notes to Consolidated Financial Statements |
|--------|--------------------------------------------|

----

| (2) | All schedules for which provision is made in the applicable accounting regulation of the SEC are omitted because of the absence of conditions under which they are required or because the required information is included in the consolidated financial statements and related notes thereto. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The following exhibits are filed as part of this Form 10-K, and this list includes the Exhibit Index. |
|-----|------------------------------------------------------------------------------------------------------------|

| Exhibit No. |   | Description                                                                                                                                                                                                                                                                          |
|-------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   3.1  |   | Articles of Incorporation of Prudential Bancorp, Inc. of Pennsylvania(1)                                                                                                                                                                                                             |
|   3.2  |   | Bylaws of Prudential Bancorp, Inc. of Pennsylvania(1)                                                                                                                                                                                                                                |
|   4.0  |   | Form of Stock Certificate of Prudential Bancorp, Inc. of Pennsylvania(1)                                                                                                                                                                                                             |
| 10.1        |   | Amended and Restated Employment Agreement between Prudential Savings Bank and Thomas A. Vento(2)*                                                                                                                                                                                    |
| 10.2        |   | Amended and Restated Employment Agreement between Prudential Savings Bank and Joseph R. Corrato(2)*                                                                                                                                                                                  |
| 10.3        |   | Amended and Restated Post Retirement Agreement between Prudential Savings Bank and Joseph W. Packer, Jr. (2)*                                                                                                                                                                        |
| 10.4        |   | Amended and Restated Split-Dollar Collateral Assignment with Joseph W. Packer, Jr. and Diane B. Packer(2)*                                                                                                                                                                           |
| 10.5        |   | Amended and Restated Split-Dollar Collateral Assignment with Joseph W. Packer, Jr. (2)*                                                                                                                                                                                              |
| 10.6        |   | Amendment No. 1 to Split-Dollar Agreement between the Bank and Joseph W. Packer, Jr. (2)*                                                                                                                                                                                            |
| 10.7        |   | Settlement Agreement, dated November 7, 2008, by and among Prudential Mutual Holding Company, Prudential Bancorp, Inc. of Pennsylvania, Prudential Savings Bank, Stilwell Value Partners, I, L.P., Stilwell Partners L.P., Stilwell Value LLC, Joseph Stilwell and John Stilwell (3) |
| 10.8        |   | Prudential Bancorp, Inc. of Pennsylvania 2008 Stock Option Plan (4)*                                                                                                                                                                                                                 |
| 10.9        |   | Prudential Bancorp, Inc. of Pennsylvania 2008 Recognition and Retention Plan and Trust Agreement (5)*                                                                                                                                                                                |
| 21.0        |   | Subsidiaries of the Registrant – Reference is made to “Item 1. Business – Subsidiaries” for the required information                                                                                                                                         |
| 23.1        |   | Consent of SR Snodgrass, A.C.                                                                                                                                                                                                                                                        |
| 31.1        |   | Section 1350 Certification of the Chief Executive Officer                                                                                                                                                                                                                            |
| 31.2        |   | Section 1350 Certification of the Chief Financial Officer                                                                                                                                                                                                                            |
| 32.0        |   | Section 906 Certification                                                                                                                                                                                                                                                            |

|   | * | Management contract or compensatory plan or arrangement required to be filed as an exhibit to this Form 10-K pursuant to Item 15(b) hereof. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Incorporated by reference from the Company’s Registration Statement on Form S-1 (Commission File No. 333-119130) filed with the Commission on September 30, 2004. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Incorporated by reference from the Company’s Current Report on Form 8-K, dated November 19, 2008 and filed with the Commission on November 25, 2008 (Commission File No. 000-51214). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Incorporated by reference from the Company’s Current Report on Form 8-K, dated November 7, 2008 and filed with the Commission on November 7, 2008 (Commission File No. 000-51214). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (4) | Incorporated by reference from Appendix A of Prudential Bancorp, Inc. of Pennsylvania’s definitive proxy statement (Commission File No. 000-51214) filed with the Commission on November 26, 2008. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|              | Prudential Bancorp, Inc. of Pennsylvania |
|-------------------|------------------------------------------|
|              |                                     |
| December 23, 2010 | By:                                      | /s/ Thomas A. Vento |
|              |                                     | Thomas A. VentoPresident and Chief Executive Officer |

| /s/ Joseph W. Packer, Jr.                                                                       |   | December 23, 2010       |
|-------------------------------------------------------------------------------------------------|--------|-------------------------|
| Joseph W. Packer, Jr.Chairman of the Board                                                      |   |               |
|                                                                                            |   |                    |
| /s/ Thomas A. Vento                                                                             |   | December 23, 2010       |
| Thomas A. VentoPresident and Chief Executive Officer                                            |   |               |
|                                                                                            |   |                    |
| /s/ Jerome R. Balka, Esq.                                                                       |   | December 23, 2010       |
| Jerome R. Balka, Esq.Director                                                                   |   |               |
|                                                                                            |   |                    |
| /s/ A. J. Fanelli                                                                               |   |                    |
| A. J. FanelliDirector                                                                           |   | December 23, 2010       |
|                                                                                            |   |                    |
| /s/ Francis V. Mulcahy                                                                          |   |                    |
| Francis V. MulcahyDirector                                                                      |   | December 23, 2010  |
|                                                                                            |   |                    |
| /s/ JOHN C. HOSIER                                                                              |   |                    |
| John C. HosierDirector                                                                          |   | December 23, 2010  |
|                                                                                            |   |                    |
| /s/ Joseph R. Corrato                                                                           |   |                    |
| Joseph R. CorratoExecutive Vice President, Chief Financial Officer and Chief Accounting Officer |   | December 23, 2010       |