----

----

| [X]    Annual      report pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934 |
|---------------------------------------------------------------------------------------------------------------------------|
|  For the fiscal year ended: June 30,      2008                                                                       |

| WILLOW FINANCIAL      BANCORP, INC.                    |
|-------------------------------------------------------------|
| (Exact      name of Registrant as specified in its charter) |
|                                                        |   |   |
| Pennsylvania                                                |   | 80-0034942 |
| (State      or Other Jurisdiction of                        |   | (I.R.S.      Employer |
| Incorporation      or Organization)                         |   | Identification      Number) |
|                                                        |   |   |
| 170      South Warner Road, Wayne, Pennsylvania             |   | 19087 |
| (Address      of Principal Executive Offices)               |   | (Zip      Code) |

| Title      of each class                    |   | Name      of each exchange on which registered |
|---------------------------------------------|--------|------------------------------------------------|
| Common      Stock, $.01 par value per share |   | The      Nasdaq Stock Market, LLC              |

|  Indicate by      check mark if the registrant is a well-known seasoned issuer, as defined      in Rule 405 of the Securities Act.                                    | YES   [        ]   NO        [X] |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
|                                                                                                                                                                       |                                                                          |
| Indicate by check      mark if the registrant is not required to file reports pursuant to Section      13 or Section 15(d) of the Act.                                     | YES   [        ]   NO   [X]      |
|                                                                                                                                                                       |                                                                          |
|  Indicate by      check mark whether the Registrant (1) has filed all reports required to be      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 |
| during the preceding      12 months and (2) has been subject to such filing requirements for the      past 90 days.                                                        | YES        [X]   NO   [   ]      |
|                                                                                                                                                                       |                                                                          |

| Large accelerated      filer                                                                                                         | [         ]                                                          | Accelerated      filer         | [X]                  |
|-------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|--------------------------------|----------------------|
| Non-accelerated      filer                                                                                                                | [         ]                                                          | Smaller reporting      company | [   ] |
| (Do not check if a      smaller reporting company)                                                                                        |                                                                                |                           |                 |
|                                                                                                                                      |                                                                                |                           |                 |
| Indicate by check      mark whether the registrant is a shell company (as defined in Rule 12b-2      of the Act).     |  YES        [   ]   NO        [X] |

----

----

| Name                             |   | Age                  |   | Position      with Willow Financial Bancorp andPrincipal      Occupation During the Past Five Years                                                                                                                                                                                                                                                                                                                                             |   | Director        Since |
|----------------------------------|--------|----------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|
| Donna      M. Coughey            |   | 58                   |   | Director,      President and Chief Executive Officer of Willow Financial Bancorp and      Willow Financial Bank since August 31, 2005.  From November 2000      through August 2005, Director, President and Chief Executive Officer of      Chester Valley Bancorp Inc. and First Financial Bank.                                                                                                                                    |   |         2005          |
| John      J. Cunningham, III     |   | 66                   |   | Director.  Vice      Chairman of the law firm of Cozen O'Connor, Philadelphia, Pennsylvania and      prior thereto Managing Partner and Chairman of the Business Law Department      of Cozen O'Connor since March 2000.  Mr. Cunningham previously      served as a director of Chester Valley Bancorp and First Financial Bank      from 1998 to 2005.                                                                    |   |         2005          |
| James      E. McErlane           |   | 65                   |   | Director.  Attorney      and Principal of the law firm of Lamb McErlane, West Chester,      Pennsylvania, since 1971.  Interim President of Chester Valley      Bancorp and First Financial Bank from June to November      2000.  Mr. McErlane previously served as a director of Chester      Valley Bancorp and First Financial Bank from 1991 to 2005 and Chairman      from 2000 to 2005.                    |   |         2005          |
| William      B. Weihenmayer      |   | 61                   |   | Director.  Independent      real estate consultant, Huntingdon Valley, Pennsylvania, since March 1990;      previously, a partner of The Linpro Company, a national real estate      developer.                                                                                                                                                                                                                                       |   |         1996          |
| Madeleine      Wing Adler, Ph.D. |   | 67                   |   | Director.  President      of West Chester University, West Chester, Pennsylvania since      1992.  Dr. Wing Adler previously served as a director of Chester      Valley Bancorp and First Financial Bank from 2003 to 2005.                                                                                                                                                                                                |   |         2005     |
| William      W. Langan           |   |         67 |   | Director.  Previously,      Chairman of the Board of Willow Financial Bancorp and Willow Financial      Bank.  Retired since March 2001; previously, President and owner      of Marmetal Industries, Inc., a manufacturer of precision machined      components and tooling for the marine, aerospace, utilities and related      industries, Horsham, Pennsylvania.                                                       |   |         1986          |
| Robert      J. McCormack         |   |        47       |   | Director.  President      of Marathon Business Group, LLC and President of Murphy McCormack Business      Group, LLC, Lewisburg, Pennsylvania, business consulting firms for mergers      and acquisitions, since March 2005 and January 2006, respectively;      previously, Mr. McCormack served as President and Chief Executive Officer      of Sun Bancorp, Inc., Lewisburg, Pennsylvania, from March 2000 to October      2004. |   |         2005          |
| A.      Brent O'Brien            |   |        70       |   | Director.  Currently      an insurance consultant since 2001. Former Chief Executive Officer and      President of  Bean, Mason & Eyer, Inc., an insurance      brokerage firm in Doylestown, Pennsylvania.                                                                                                                                                                                                             |   |         1996          |
| Samuel      H. Ramsey, III       |   |        65       |   | Director.  Investment      advisor, Financial Network Investment Corporation, Bellevue, Washington,      since January 2004; previously, investment advisor, AXA Advisers, LLC,      Bellevue, Washington, from October 2000 to 2004 and owner of Samuel H.      Ramsey, III, Certified Public Accountants from 1973 to    2002.                                                                                                      |   |         1988          |

----

| Name |   | Age |   | Position      with Willow Financial Bancorp andPrincipal      Occupation During the Past Five Years |   | Director        Since |
|------|--------|-----|--------|-----------------------------------------------------------------------------------------------------|--------|---------------------------------|

| Gerard      F. Griesser       |   |           59 |   | Director.  An      Owner of Prudential FoxRoach/The Trident Group, a company operating in the      residential real estate industry, mortgage banking, title insurance      agency, personal lines insurance agency and relocation industry since      1985.  Mr. Griesser previously served as a director of First      Financial Bank from 1988 to 2005 and of Chester Valley Bancorp from 1990      to 2005.                                                                                                                                                           |   |         2005 |
|-------------------------------|--------|----------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|
| Charles      F. Kremp, 3rd    |   |           65      |   | Director.  Owner      of Kremp Florist, Willow Grove, Pennsylvania.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |         1994 |
| Rosemary      C. Loring, Esq. |   |           58      |   | Director      and Chair of the Board of Willow Financial Bancorp and Willow Financial      Bank since July 2005; previously, Vice Chair of the Board since November      2003.  President of Loring Careers, Inc., since 2006;      previously, President of the Remedy Intelligent Staffing franchise for      Bucks and Montgomery counties, Pennsylvania since 1996.  Prior      thereto, Ms. Loring served for almost 20 years in various management and      executive positions with Bell Atlantic (now Verizon) and First Union      National Bank (now Wachovia). |   |         2000 |
| Emory      S. Todd, Jr., CPA  |   |           66 |   | Director.  Self-employed,      Certified Public Accountant in Chester Springs, Pennsylvania since      1971.  Mr. Todd previously served as a director of First      Financial Bank from 1987 to 2005 and of Chester Valley Bancorp from 1990      to 2005.                                                                                                                                                                                                                                                                                                               |   |         2005 |

| Name                    |   | Age |   | Principal      Occupation During the Past Five Years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-------------------------|--------|-----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Ammon      J. Baus      |   | 59  |   | Chief      Credit Officer of Willow Financial Bank since August 31,      2005.  Previously, Senior Vice President and Chief Lending      Officer of Willow Grove Bank since March 2003.  Prior thereto,      Credit Risk Officer of Fleet National Bank (formerly Summit Bank,      Princeton, New Jersey) from 1997 to 2003.                                                                                                                                                                                         |
| Neil      Kalani        |   | 33  |   | Principal      Financial Officer of Willow Financial Bancorp and Willow Financial Bank      since May 2008 and Chief Accounting Officer since January      2006.  Previously, Mr. Kalani served as Accounting Manager with      Comcast Cable Communications since July 2004.  Prior thereto,      Mr. Kalani was Audit Manager with KPMG LLP from November 1997 to July      2004.                                                                                                                                   |
| Matthew      D. Kelly   |   | 44  |   | Chief      Wealth Management Officer of Willow Financial Bank since August 31, 2005      and, from June 2003 through June 2006, President and Chief Operating      Officer of Philadelphia Corporation for Investment Services, which was a      wholly owned subsidiary of Willow Financial Bank.  Previously,      Executive Vice President of First Financial Bank from March 2002 through      August 2005.  Prior thereto, Mr. Kelly was Managing Director of      PNC Advisors from October 2000 to March 2002. |
| Thomas      J. Saunders |   | 47  |   | Executive      Commercial Sales Manager of Willow Financial Bank since June      2007.  Prior to joining Willow Financial Bank, Mr. Saunders was      a Senior Vice President and Manager at Brown Brothers Harriman & Co.      from November 1996 to June 2007 where he was responsible for developing      business opportunities across the firm's commercial, investment banking,      private equity and investment management  platforms.                                                                             |

----

| ·   | Evaluate      competitive compensation practices for the executive team based on peer      group companies; |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | Review      overall compensation and benefitsbudgets; |
|--------------------|-------------------------------------------------------|

| ·   | In      conjunction with the Chief Executive Officer, recommend the compensation      and benefits philosophy and strategy for Willow Financial      Bancorp; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | In      consultation with the Chief Executive Officer, determine performance      measures and goals for corporate, departmental and individual performance      as they relate to compensation; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Recommend      compensation awards for the Chief Executive Officer, including salary,      bonus, stock awards, and, if applicable, contracts and supplemental      compensation and benefitsarrangements; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Review      and make recommendations for revision or approval of compensation programs      and individual compensation awards recommended by the Chief Executive      Officer for other members of the executive team;  and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Review      and recommend implementation or revision of any major compensation or      benefit programs. |
|--------------------|----------------------------------------------------------------------------------------------------------|

----

----

| Name                           |   | Components                                                                      |   | Weighting |   | Base      Threshold                                         |   | Stretch      Threshold                                      |
|--------------------------------|--------|---------------------------------------------------------------------------------|--------|-----------|--------|-------------------------------------------------------------|--------|-------------------------------------------------------------|
| Donna      M. Coughey          |   | Earnings      per share                                                         |   | 60%       |   | $         0.78 |   | $         0.82 |
| President      and CEO         |   | Loans      Outstanding excluding Residential Mtgs.                              |   | 20%       |   | $   989,870                                  |   | $1,039,364                                                  |
|                           |   | Other      Income; Insurance, Investment & Mtg Sales Income                 |   | 20%       |   | $       9,599            |   | $     10,079                       |
|                           |   | Bonus payouts as percent of      base salary                                    |   |      |   | 35%                                                         |   | 45%                                                         |
|                           |   |                                                                            |   |      |   |                                                        |   |                                                        |
| Joseph      T. Crowley         |   | Earnings      per share                                                         |   | 60%       |   | $         0.78 |   | $         0.82 |
| CFO                            |   | Either      efficiency ratio or expenses less than budget                       |   | 20%       |   | 73.44%                                                      |   | 69.77%                                                      |
|                           |   | Other      Income:  Insurance, Investment & Mtg Sales      Income |   | 20%       |   | $       9,599            |   | $     10,079                       |
|                           |   | Bonus payouts as percent of      salary                                         |   |      |   | 35%                                                         |   | 45%                                                         |
|                           |   |                                                                            |   |      |   |                                                        |   |                                                        |
| Thomas      Saunders           |   | Outstanding      Loan Balances                                                  |   | 25%       |   | $   697,475                                  |   | $   732,349                                  |
| Exec.      Commercial          |   | Outstanding      DDA Balances                                                   |   | 25%       |   | $     84,580                       |   | $     88,809                       |
|   Sales      Manager |   | Total      Investment & Trust Fees                                          |   | 25%       |   | $   718,800                                  |   | $   754,740                                  |
|                           |   | Small      Business Administration Sale Fees & Other Loan Fees              |   | 25%       |   | $1,262,000                                                  |   | $1,325,100                                                  |
|                           |   | Bonus payouts as percent of      salary (Guaranteed $50,000 Year 1)             |   |      |   | 30%                                                         |   | 40%                                                         |
|                           |   |                                                                            |   |      |   |                                                        |   |                                                        |
| Ammon      Baus                |   | OREO,      Sustd., Doubt. & Loss/Total Loans                                |   | 20%       |   | 0.69%                                                       |   | 0.65%                                                       |
| Chief      Credit              |   | Credit      administration review rating                                        |   | 10%       |   | Satisfactory                                                |   |         Above Average                             |
|   Officer            |   | 30      day or more delinquent loans to total loans                             |   | 20%       |   | 0.84%                                                       |   | 0.80%                                                       |
|                           |   | Earnings      per share                                                         |   | 50%       |   | $0.78                                                       |   | $0.82                                                       |
|                           |   | Bonus payouts as percent of      salary                                         |   |      |   | 30%                                                         |   | 40%                                                         |
|                           |   |                                                                            |   |      |   |                                                        |   |                                                        |
| Matthew      D. Kelly          |   | Average      outstanding private bank loans                                     |   | 25%       |   | $       69,998                                         |   | $       73,498                                         |
|                           |   | Average      outstanding private bank core deposits                             |   | 25%       |   | $       65,710                                         |   | $       68,996                                         |
|                           |   | Average      outstanding private banking demand deposit account                 |   | 25%       |   | $       11,250                                         |   | $       11,813                                         |
|                           |   | Total      investment and trust fees                                            |   | 25%       |   | $718,800                                                    |   | $754,740                                                    |
|                           |   | Bonus payouts as percent of      salary                                         |   |      |   | 30%                                                         |   | 40%                                                         |

----

----

| Name      and Principal Position                                                                                                                                                                                                                                                                                                                                                           |   | FiscalYear |   | Salary(1)                          |   | Bonus                                                                                                                                                |   | StockAwards(4) |   | OptionAwards(4)                                                                                                                                                                          |   | Non-EquityIncentivePlanCompen-sation                                                                                         |   | AllOther      Compen-sation(5)                                                               |   | Total                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|
| Donna      M.      Coughey                                         President and Chief Executive      Officer                                                                 |   | 20082007   |   |         $ 350,000336,539 |   | $          --       150,000(2)                                                                |   | $127,96898,500 |   |            $2,365        4,567                                                                                          |   | $             --               --            |   | $189,427         50,285                                                       |   |  $669,760        489,891                                                                   |
| Ammon      Baus                                         Chief Credit    Officer                                                                                               |   | 20082007   |   | 190,008180,000                     |   |                  --                 -- |   | 40,45531,073   |   |              4,654             7,685                                                                               |   |                --       40,000                                             |   |        101,710         29,752                                            |   |         336,827        288,510                                                        |
| Neil      Kalani                                         Chief Accounting Officer (Principalfinancial officer as of May 6,      2008)                                         |   | 20082007   |   | 137,058126,292                     |   |          36,623                 --                                             |   | 15,0289,591    |   |                    --                   --             |   |                --               -- |   |          12,310           6,981                      |   |         201,019        142,864                                                        |
| Matthew      D.      Kelly                                         Chief Wealth Management      Officer                                                                       |   | 20082007   |   | 182,231173,732                     |   |          13,175                 --                                             |   | 36,13927,687   |   |                 219                230                                               |   |                --       13,173                                             |   |         35,590        30,251                                             |   |         267,354        245,073                                                        |
| Thomas      J.      Saunders                                         Executive Commercial Sales      Manager                                                                  |   | 20082007   |   | 200,000--                          |   |        125,000(3)                 --                                                     |   | 42,567--       |   |                     --                    -- |   |                --               -- |   |         32,939                -- |   |         400,506                  -- |
| Joseph      T.      Crowley                                         Senior Vice President,      ChiefFinancial Officer and      CorporateSecretary (through May 5,      2008) |   | 20082007   |   | 221,991210,000                     |   |                  --                 -- |   | 30,04544,692   |   |                    88                 230                        |   |                --               -- |   |  101,629        32,868                                                        |   |         353,753        287,790                                                        |

| (1) | The      amounts disclosed in this column include amounts contributed by the named      executive officer to the 401(k)/Employee Stock Ownership Plan of Willow      Financial Bank. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Retention      bonus paid to Ms. Coughey under the terms of her employment agreement,      dated as of July 15, 2005, upon the one-year anniversary of the      acquisition of Chester Valley Bancorp and First Financial      Bank. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents      a $50,000 bonus paid to Mr. Saunders upon the one-year anniversary of his      employment with Willow Financial Bancorp and a $75,000 signing      bonus. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Reflects      the dollar value of the awards of restricted stock and/or stock options      recognized by us for financial statement purposes in accordance with      Statement of Financial Accounting Standards No. 123(R), which is an      accounting pronouncement that governs the manner in which we account for      equity based compensation. The values of stock awards were calculated      based on the fair market value of our common stock on the dates of grant,      $14.83, $14.91 and $13.90, for grants made on January 6, 2006, September      29, 2006 and January 5, 2007, respectively. For a discussion of the      assumptions used to establish the valuation of the restricted stock awards      and stock options, reference is made to Note 5 of the Notes to      Consolidated Financial Statements of Willow Financial Bancorp included as      Item 8 in Willow Financial's Annual Report on Form 10-K for the year ended      June 30, 2008.  Additional information is also included in the      table below entitled "Grants of Plan-Based Awards." We use the      Black-Scholes option valuation model to establish the values of options.      In calculating the value of stock awards we have disregarded any estimate      of forfeitures relating to service-based vesting conditions. There were      5,938 shares of restricted stock forfeited in the 2008 fiscal year by Mr.      Crowley. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (5) | Includes      amounts accrued to the 2007 SERP, and interest thereon, of $152,133,      $79,808, $15,869 and $22,768 for the benefit of Ms. Coughey and Messrs.      Baus, Kelly and Saunders, respectively, employer matching contributions of      $11,250, $12,251, $10,277, $9,758 and $8,522 allocated in 2008 to the      accounts of Ms. Coughey and Messrs. Crowley, Baus, Kelly and Kalani,      respectively, under the Willow Grove Bank 401(k)/Employee Stock Ownership      Plan.  Also includes the fair market value at December 31, 2007,      the date of allocation, of the shares of common stock pursuant to the      401(k)/Employee Stock Ownership Plan, representing $11,414, $10,934,      $11,395, $9,733 and $3,558 for Ms. Coughey and Messrs. Crowley, Baus,      Kelly and Kalani, respectively.  Includes amounts paid during      the fiscal year for premiums with respect to group term life insurance for      all named executive officers.  Includes for Ms. Coughey an      automobile allowance of $14,400. Includes for Mr. Crowley, $55,498 paid      pursuant to his Severance and Release Agreement, $17,076 for his accrued      but unused paid time off and $5,640 representing his vested benefit under      the 2007 SERP. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        Name                                                                                                                                                                                                                                                                                     |                                                                 |        Grant      Date |      | Estimated      Possible Payouts UnderNon-Equity      Incentive Plan Awards(1) |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|-----------------------------|-----------|-------------------------------------------------------------------------------|
| Target                                                                                                                                                                                                                                                                                               |                                                                 | Maximum                     |
| Donna      M.      Coughey                                               | 07/24/07                                                             | $122,500                    | $157,500  |
| Ammon      Baus                                                          | 07/24/07                                                             | 57,002                      | 76,003    |
| Neil      Kalani                                                         |                 -- | --                          | --        |
| Matthew      D.      Kelly                                               | 07/24/07                                                             | 54,669                      | 72,892    |
| Thomas      J.      Saunders                                             | 07/24/07                                                             | 60,000(2)                   | 80,000(2) |
| Joseph      T.      Crowley                                              | 07/24/07                                                             | 77,697                      | 99,896    |

| (1)       | The      Estimated Possible Payouts Under Non-Equity Incentive Plan Awards      represent potential amounts payable under our Executive Bonus Program for      fiscal 2008. The Executive Bonus Program did not provide for threshold      amounts of awards.  For a more detailed description of the      annual cash awards, see "Compensation Discussion and Analysis – Components      of Compensation." |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (2)  | This      amount, if earned, would have been offset by Mr. Saunders's $50,000      bonus.                                                                                                                                                                                                                                                                                                                                    |

----

|        Name                                                                                                                                                 |                                                                 | Option      Awards                          |                                                                       | Stock                       |  Awards                         |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|---------------------------------------------|----------------------------------------------------------------------------|-----------------------------|--------------------------------------|
|                                                                                                                                                             | Number      of Shares or Units of StockThat      HaveNot      Vested |                                        | Market      Value of Shares or Units of Stock That Have Not      Vested(6) |
| Number      of Securities Underlying Unexercised Options                                                                                                         |                                                                 |         Exercise       Price |                                                                       | Option      Expiration Date |
| Exercisable                                                                                                                                                      |                                                                 |                                        | Unexercisable                                                              |
| Donna      M. Coughey                                                                                                                                            | 18,364       2,702                                              |                                        | ----                                                                       |                        | $12.238.81--                         |   |  6/30/2013(1) 6/19/2012(2)-- |   | 13,040 |   | $106,279 |
| Ammon      Baus                          | 13,125 210                                                      |                                        | -- 315                                                                |                        |        12.48       14.50-- |   |  2/14/2013(5)        1/3/2016(3)-- |   |        4,132 |   | 33,679 |
| Neil      Kalani                         | --                                                                   |                                        | --                                                                         |                        | --                                   |   | -- |   |        2,082 |   | 16,968 |
| Matthew      D. Kelly                                                                                                                                            |  9,009 9,009210                                            |                                        | ---- 315                                                              |                        | 8.538.81       14.50--          |   | 3/18/2012(4)6/19/2012(4)       1/3/2016(3)-- |   |        3,702 |   | 30,171 |
| Thomas      J. Saunders                                                                                                                                          |         --                                                 |                                        | --                                                                         |                        |                                 |   |   |   |        6,667 |   | 54,336 |
| Joseph      T. Crowley                                                                                                                                           | 210                                                                  |                                        | --                                                                         |                        |        14.50--                  |   |        1/3/2016(3)-- |   | -- |   | -- |

| (1) | The      option which originally represented an option to acquire shares of Chester      Valley Bancorp Inc. became fully exercisable on June 30,    2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The      option which originally represented an option to acquire shares of Chester      Valley Bancorp Inc. became fully exercisable on June 19,    2007. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Granted      pursuant to our 2002 Stock Option Plan and vests at a rate of 20% per year      commencing January 3, 2007. |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (4) | The      option which originally represented an option to acquire shares of Chester      Valley Bancorp Inc. became fully exercisable on August 31,      2005. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Granted      pursuant to our 2002 Stock Option Plan and became fully exercisable on      February 14, 2008. |
|-----|-------------------------------------------------------------------------------------------------------------|

| (6) | Calculated      by multiplying the closing market price of our common stock on the last      trading day in June 2008, which was $8.15, by the applicable number of      shares of common stock underlying the executive officer's stock      awards. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                               |   | Stock      Awards                         |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
| Name                                                                                                                                                                                                                                                                                                                               |   | Number      of Shares Acquired on Vesting |   |   | Value      Realizedon      Vesting(1) |   |
| Donna      M.      Coughey                                                    |   |                                      | 8,891  |   |   | $ | 72,639 |   |
| Ammon      Baus                                                               |   |                                      | 2,811  |   |   |   | 22,969 |   |
| Neil      Kalani                                                              |   |                                      | 1,041  |   |   |   | 10,865 |   |
| Matthew      D.      Kelly                                                    |   |                                      | 2,512  |   |   |   | 20,523 |   |
| Thomas      J.      Saunders                                                  |   |                                      | 3,333  |   |   |   | 29,233 |   |
| Joseph      T.      Crowley                                                   |   |                                      | 4,042  |   |   |   | 33,020 |   |

| _____________________ |   |
|-----------------------|--------|

| (1)     |   | Represents      the number of shares of common stock that vested during the fiscal year      multiplied by the market price of our common stock on the date on which      the stock award vested. As such, the value realized may be different from      the value reported for Statement of Financial Accounting Standards No.      123(R) purposes. |
|-----------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Payments      and Benefits                |   | Voluntary      Termination |   |   | Terminationfor      Cause |   |   | Involuntary      Termination Without Cause or Termination by the Executive for Good Reason      Absent a Change in Control |   |   | Change      in Control With Termination of Employment |   |   | Death      orDisability      (o) |      |   | Retirement      (p) |   |
|-------------------------------------------|--------|----------------------------|--------|--------|---------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|----------------------------------|-----------|--------|---------------------|--------|
| Accrued      paid time off (a)            |   | $                          | 4,728  |   |                      | $      | 4,728  |                                                                                                                       |   | $      | 4,728                                                 |   |   | $                                | 4,728     |   |                | $      | 4,728 |   |   | $ | 4,728 |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |      |   |                |   |   |   |   |   |   |   |
| Severance      payments and benefits: (b) |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |      |   |                |   |   |   |   |   |   |   |
| Cash      severance (c)                   |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | 682,307                                               |   |   |                             | 1,500,000 |   |                |   | 350,000 | (q) |   |   | -- |   |
| Medical      and dental benefits (d)      |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | 7,527                                                 |   |   |                             | 15,266    |   |                |   | 7,527 |   |   |   | -- |   |
| Other      welfare benefits (e)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | 1,156                                                 |   |   |                             | 1,822     |   |                |   | 1,156 |   |   |   | -- |   |
| Automobile      expenses (f)              |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 41,127    |   |                |   | -- |   |   |   | -- |   |
| ESOP      allocations (g)                 |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --        |   |                |   | -- |   |   |   | -- |   |
| SERP      benefits (h)                    |   |                       | 37,042 |   |                      |   | --     |                                                                                                                       |   |   | 37,042                                                |   |   |                             | 152,133   |   |                |   | 152,133 |   |   |   | -- |   |
| §280G      tax gross-up (i)          |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --        |   |                |   | -- |   |   |   | -- |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |      |   |                |   |   |   |   |   |   |   |
| Equity      awards: (j)                   |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |      |   |                |   |   |   |   |   |   |   |
| Unvested      stock options (k)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --        |   |                |   | -- |   |   |   | -- |   |
| Unvested      restricted stock awards (l) |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 106,276   |   |                |   | 106,276 |   |   |   | -- |   |
| Life      insurance (m)                   |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --        |   |                |   | 650,000 |   |   |   | -- |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |      |   |                |   |   |   |   |   |   |   |
| Total      payments and benefits (n)      |   | $                          | 41,770 |   |                      | $      | 4,728  |                                                                                                                       |   | $      | 732,760                                               |   |   | $                                | 1,821,352 |   |                | $      | 1,271,820 |   |   | $ | 4,728 |   |

----

| Payments      and Benefits                |   | Voluntary      Termination |   |   | Terminationfor      Cause |   |   | Involuntary      Termination Without Cause or Termination by the Executive for Good Reason      Absent a Change in Control |   |   | Change      in Control With Termination of Employment |   |   | Death      orDisability      (o) |    |   | Retirement      (p) |   |
|-------------------------------------------|--------|----------------------------|--------|--------|---------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|----------------------------------|---------|--------|---------------------|--------|
| Accrued      paid time off (a)            |   | $                          | 3,298  |   |                      | $      | 3,298  |                                                                                                                       |   | $      | 3,298                                                 |   |   | $                                | 3,298   |   |                | $      | 3,298 |   |   | $ | 3,298 |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Severance      payments and benefits: (b) |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Cash      severance (c)                   |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | 190,008                                               |   |   |                             | 344,342 |   |                |   | -- |   |   |   | -- |   |
| Medical      and dental benefits (d)      |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 8,983   |   |                |   | -- |   |   |   | -- |   |
| Other      welfare benefits (e)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 406     |   |                |   | -- |   |   |   | -- |   |
| Automobile      expenses (f)              |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
| ESOP      allocations (g)                 |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
| SERP      benefits (h)                    |   |                       | 19,432 |   |                      |   | --     |                                                                                                                       |   |   | 19,432                                                |   |   |                             | 79,808  |   |                |   | 79,808 |   |   |   | -- |   |
| §280G      tax cutback (i)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Equity      awards: (j)                   |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Unvested      stock options (k)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
| Unvested      restricted stock awards (l) |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 33,676  |   |                |   | 33,676 |   |   |   | -- |   |
| Life      insurance (m)                   |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | 150,000 |   |   |   | -- |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Total      payments and benefits (n)      |   | $                          | 22,730 |   |                      | $      | 3,298  |                                                                                                                       |   | $      | 212,738                                               |   |   | $                                | 470,513 |   |                | $      | 266,782 |   |   | $ | 3,298 |   |

| Payments      and Benefits                |   | Voluntary      Termination |   |   | Terminationfor      Cause |   |   | Involuntary      Termination Without Cause or Termination by the Executive for Good Reason      Absent a Change in Control |   |   | Change      in Control With Termination of Employment |   |   | Death      orDisability      (o) |    |   | Retirement      (p) |   |
|-------------------------------------------|--------|----------------------------|--------|--------|---------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|----------------------------------|---------|--------|---------------------|--------|
| Accrued      paid time off (a)            |   | $                          | 13,459 |   |                      | $      | 13,459 |                                                                                                                       |   | $      | 13,459                                                |   |   | $                                | 13,459  |   |                | $      | 13,459 |   |   | $ | 13,459 |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Severance      payments and benefits: (b) |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Cash      severance (c)                   |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 156,881 |   |                |   | -- |   |   |   | -- |   |
| Medical      and dental benefits (d)      |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 3,404   |   |                |   | -- |   |   |   | -- |   |
| Other      welfare benefits (e)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 406     |   |                |   | -- |   |   |   | -- |   |
| Automobile      expenses (f)              |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
| ESOP      allocations (g)                 |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
| SERP      benefits (h)                    |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
| §280G      tax cutback (i)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Equity      awards: (j)                   |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Unvested      stock options (k)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
| Unvested      restricted stock awards (l) |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 16,968  |   |                |   | 16,968 |   |   |   | -- |   |
| Life      insurance (m)                   |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | 150,000 |   |   |   | -- |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Total      payments and benefits (n)      |   | $                          | 13,459 |   |                      | $      | 13,459 |                                                                                                                       |   | $      | 13,459                                                |   |   | $                                | 191,118 |   |                | $      | 180,427 |   |   | $ | 13,459 |   |

----

| Payments      and Benefits                |   | Voluntary      Termination |   |   | Terminationfor      Cause |   |   | Involuntary      Termination Without Cause or Termination by the Executive for Good Reason      Absent a Change in Control |   |   | Change      in Control With Termination of Employment |   |   | Death      orDisability      (o) |    |   | Retirement      (p) |   |
|-------------------------------------------|--------|----------------------------|--------|--------|---------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|----------------------------------|---------|--------|---------------------|--------|
| Accrued      paid time off (a)            |   | $                          | 6,667  |   |                      | $      | 6,667  |                                                                                                                       |   | $      | 6,667                                                 |   |   | $                                | 6,667   |   |                | $      | 6,667 |   |   | $ | 6,667 |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Severance      payments and benefits: (b) |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Cash      severance (c)                   |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | 182,231                                               |   |   |                             | 379,177 |   |                |   | -- |   |   |   | -- |   |
| Medical      and dental benefits (d)      |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 10,106  |   |                |   | -- |   |   |   | -- |   |
| Other      welfare benefits (e)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 406     |   |                |   | -- |   |   |   | -- |   |
| Automobile      expenses (f)              |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
| ESOP      allocations (g)                 |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
| SERP      benefits (h)                    |   |                       | 3,864  |   |                      |   | --     |                                                                                                                       |   |   | 3,864                                                 |   |   |                             | 15,869  |   |                |   | 15,869 |   |   |   | -- |   |
| §280G      tax cutback (i)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Equity      awards: (j)                   |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Unvested      stock options (k)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
| Unvested      restricted stock awards (l) |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 30,171  |   |                |   | 30,171 |   |   |   | -- |   |
| Life      insurance (m)                   |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | 400,000 |   |   |   | -- |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Total      payments and benefits (n)      |   | $                          | 10,531 |   |                      | $      | 6,667  |                                                                                                                       |   | $      | 192,762                                               |   |   | $                                | 442,396 |   |                | $      | 452,707 |   |   | $ | 6,667 |   |

| Payments      and Benefits                |   | Voluntary      Termination |   |   | Terminationfor      Cause |   |   | Involuntary      Termination Without Cause or Termination by the Executive for Good Reason      Absent a Change in Control |   |   | Change      in Control With Termination of Employment |   |   | Death      orDisability      (o) |    |   | Retirement      (p) |   |
|-------------------------------------------|--------|----------------------------|--------|--------|---------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|----------------------------------|---------|--------|---------------------|--------|
| Accrued      paid time off (a)            |   | $                          | 9,625  |   |                      | $      | 9,625  |                                                                                                                       |   | $      | 9,625                                                 |   |   | $                                | 9,625   |   |                | $      | 9,625 |   |   | $ | 9,625 |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Severance      payments and benefits: (b) |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Cash      severance (c)                   |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | 200,000                                               |   |   |                             | 550,000 |   |                |   | -- |   |   |   | -- |   |
| Medical      and dental benefits (d)      |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 17,637  |   |                |   | -- |   |   |   | -- |   |
| Other      welfare benefits (e)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 709     |   |                |   | -- |   |   |   | -- |   |
| Automobile      expenses (f)              |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
| ESOP      allocations (g)                 |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
| SERP      benefits (h)                    |   |                       | 5,543  |   |                      |   | --     |                                                                                                                       |   |   | 5,543                                                 |   |   |                             | 22,768  |   |                |   | 22,768 |   |   |   | -- |   |
| §280G      tax cutback (i)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Equity      awards: (j)                   |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Unvested      stock options (k)           |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | -- |   |   |   | -- |   |
| Unvested      restricted stock awards (l) |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | 54,336  |   |                |   | 54,336 |   |   |   | -- |   |
| Life      insurance (m)                   |   |                       | --     |   |                      |   | --     |                                                                                                                       |   |   | --                                                    |   |   |                             | --      |   |                |   | 150,000 |   |   |   | -- |   |
|                                      |   |                       |   |   |                      |   |   |                                                                                                                       |   |   |                                                  |   |   |                             |    |   |                |   |   |   |   |   |   |   |
| Total      payments and benefits (n)      |   | $                          | 15,168 |   |                      | $      | 9,625  |                                                                                                                       |   | $      | 215,168                                               |   |   | $                                | 655,075 |   |                | $      | 236,729 |   |   | $ | 9,625 |   |

----

| Notes      to the tables: |   |
|---------------------------|--------|

| (a) | Paid      time off is granted to each employee annually based on position and      tenure.  Earned but unused paid time off is paid upon      termination of employment.  The amounts shown represent each      executive's accrued but unused paid time off as of June 30,      2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | These      severance payments and benefits are payable if the employment of Ms.      Coughey or Messrs. Baus, Kelly or Saunders is terminated prior to a change      in control either (i) by Willow Financial Bancorp or Willow Financial Bank      for any reason other than cause, disability, retirement or death or (ii)      by such executives if Willow Financial Bancorp or Willow Financial Bank,      or any successor, takes certain adverse actions (a "good reason"      termination). The severance payments and benefits are also payable if an      executive's employment, including Mr. Kalani's, is terminated during the      term of the executive's employment or change in control severance      agreement following a change incontrol. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | In      the Involuntary Termination column, represents for Ms. Coughey a lump sum      amount equal to the present value of her base salary for the remaining      term of her employment agreement and for each of Messrs. Baus, Kelly and      Saunders, a lump sum amount equal to one times the executive's current      base salary as of June 30, 2008.  In the Change in Control      column, represents for Ms. Coughey a lump sum amount equal to three times      her current base salary and most recently paid bonus, for each of Messrs.      Baus, Kelly and Saunders, a lump sum amount equal to two times the      executive's average base salary and cash bonuses paid during the preceding      five calendar years (or such shorter period that the executive was      employed), and for Mr. Kalani, an aggregate of 12 monthly installments      equal to one times his average base salary and cash bonuses paid during      the preceding two calendar years in which he was employed.  For      the amount payable to Ms. Coughey's spouse in the event of her death, see      Note (q) below. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | In      the Involuntary Termination column, represents for Ms. Coughey the      estimated cost of providing continued medical and dental coverage for the      remaining term of her employment agreement, with Ms. Coughey continuing to      pay the employee share of the premiums.  In the Change in      Control column, represents the estimated cost of providing continued      medical and dental coverage for three years for Ms. Coughey, for two years      for Mr. Saunders and for one year for each of Messrs. Baus, Kalani and      Kelly, in each case at no cost to the executive. The change in control      benefits will be discontinued if the executive obtains full-time      employment with a subsequent employer which provides substantially similar      benefits.  If the employment of Ms. Coughey is terminated due to      death, disability or retirement, continued insurance coverage will be      provided as discussed in Note (r) below.  The estimated costs      assume the current insurance premiums or costs increase by 10% on January      1st      of each year. Because the premiums could increase faster than assumed,      they have not been discounted to presentvalue. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | In      the Involuntary Termination column, represents for Ms. Coughey the      estimated cost of providing continued life, accidental death and long-term      disability coverage for the remaining term of her employment agreement,      with Ms. Coughey continuing to pay her share of the      premiums.  In the Change in Control column, represents the      estimated cost of providing continued life, accidental death and long-term      disability coverage for three years for Ms. Coughey, for two years for Mr.      Saunders and for one year for each of Messrs. Baus, Kalani and Kelly, in      each case at no cost to the executive.  The change in control      benefits will be discontinued if the executive obtains full-time      employment with a subsequent employer which provides substantially similar      benefits.  If Ms. Coughey's employment is terminated due to      disability or retirement, continued life insurance coverage will be      provided as discussed in Note (r) below.  The estimated costs      assume the current insurance premiums or costs increase by 10% on January      1st      of each year. Because the premiums could increase faster than assumed,      they have not been discounted to present value. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (Footnotes      continued on following page) |
|--------|----------------------------------------------|

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

----

| (g) | In      the event of a change in control, the Employee Stock Ownership Plan will      be terminated and the unallocated shares will first be used to repay the      outstanding loan.  Any remaining unallocated shares will then be      allocated among plan participants on a pro rata basis based on account      balances.  Based on the June 30, 2008 closing price of $8.15 per      share, the remaining principal balance of the ESOP loan exceeds the value      of the unallocated shares by approximately $663,000.  As a      result, the Change in Control column does not reflect any additional ESOP      allocation. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | The      Voluntary Termination column and the Involuntary Termination column      represent the vested account balances of Ms. Coughey and Messrs. Baus,      Kelly and Saunders under our 2007 SERP at June 30,      2008.  The Change in Control column and the Death or Disability      column reflect the accelerated vesting of the account balances of Ms.      Coughey and Messrs. Baus, Kelly and Saunders under our 2007 SERP as if      such events had occurred at June 30, 2008.   The amounts      shown in the tables do not reflect the additional contributions made to      the 2007 SERP as of July 1,2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | If      the parachute amounts associated with the payments and benefits to Ms.      Coughey in the Change in Control column equal or exceed three times her      average taxable income for the five years ended December 31, 2007, they      would be subject to a 20% excise tax. In such event, Willow Financial      Bancorp has agreed in its employment agreement with Ms. Coughey to pay the      20% excise tax and the additional federal, state and local income taxes      and excise taxes on such reimbursement in order to place her in the same      after-tax position she would have been in if the excise tax had not been      imposed. If the parachute amounts associated with the payments and      benefits to Messrs. Baus, Kalani, Kelly and Saunders equal or exceed three      times the executive's average taxable income for the five years ended      December 31, 2007, then such payments and benefits in the event of a      change of control will be reduced by the minimum amount necessary so that      they do not trigger the 20% excise tax that would otherwise be imposed.      Based on the assumption that a change in control occurred on June 30, 2008      at $8.15 per share, none of the named executive officers would have had      parachute amounts which equaled or exceeded three times the respective      officer's average taxable income. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j) | All      of the vested stock options held by Ms. Coughey and Messrs. Baus, Kalani,      Kelly and Saunders had exercise prices higher than the June 30, 2008      closing price of $8.15 per share. As a result, none of such options had a      current cash value at June 30, 2008.  If the market value of our      common stock was to increase above the exercise prices of the outstanding      stock options, such value could be obtained in the event of termination      due to voluntary termination, death, disability, retirement or cause only      if the executive actually exercises the vested options in the manner      provided for by the relevant option plan and subsequently sells the shares      received for the higher price per share. In the event of a termination of      employment, each executive (or his or her estate in the event of death)      will have the right to exercise vested stock options for the period      specified in his or her option grantagreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k) | All      unvested stock options will become fully vested upon an executive's death      or disability, upon a change in control, or for Ms. Coughey's options      assumed in the 2005 acquisition, upon retirement after at least 10 years      of service.  However, all unvested stock options held by the      named executive officers had exercise prices higher than the June 30, 2008      closing price of $8.15 per share.  As a result, none of such      options had a current cash value at June 30,  2008. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l) | If      an executive's employment is terminated as a result of death or      disability, unvested restricted stock awards are deemed fully earned. In      addition, in the event of a change in control of Willow Financial Bancorp,      the unvested restricted stock awards are deemed fully      earned.   The awards would also be deemed fully earned upon      retirement after age 65.  None of the named executive officers      are currently eligible for retirement under the restricted stock      plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (Footnotes      continued on following page) |
|--------|----------------------------------------------|

----

| (m)   | In      2005 Willow Financial Bank assumed executive survivor income agreements      that First Financial Bank had entered into with Ms. Coughey and Mr. Kelly      in July 2003.  These agreements provide that if the employment      of Ms. Coughey or Mr. Kelly had been terminated due to death as of June      30, 2008, his or her beneficiaries or estate would have received death      benefits of $500,000 and $250,000, respectively.  These      agreements also provide that if such executives retire on or after age 62,      become disabled or have their employment involuntarily terminated within      12 months after a change in control and then die before reaching age 65,      then Willow Financial Bank will pay the above death benefits to the      executive's beneficiary.  Includes $150,000 payable to the      beneficiaries of each of our named executive officers pursuant to group      term life insurance policies. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n) | Does      not include the value of the vested benefits to be paid under our 401(k)      plan, ESOP, Supplemental Pension Plan or Deferred Compensation      Plan.  See the tables under "—Pension Benefits" and      "—Nonqualified Deferred Compensation" below.  Also does not      include earned but unpaid salary and reimbursable  expenses. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o) | Does      not include amounts payable if the employment of Ms. Coughey or Messrs.      Baus, Kalani, Kelly or Saunders had been terminated due to disability, in      which case, each executive would receive continuation of his or her      respective base salary for up to 90 days based on his or her      tenure.  If the disability continued beyond 90 days, each      executive would be entitled to receive long-term disability benefits of      60% of his or her gross monthly income, subject to a benefit cap of $5,000      per month, for as long as the executive remains disabled, up to age      65.  The Death or Disability column includes each executive's      unvested restricted stock awards that will become fully vested upon death      or disability. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (p) | In      2005, we assumed the First Financial Bank pension plan, a noncontributory      defined benefit plan, which was frozen effective as of July 1, 2005 and      from which we withdrew subsequent to assuming the plan.  During      fiscal 2007, we purchased an annuity to fund the vested benefits under the      pension plan.  Ms. Coughey and Mr. Kelly, who previously were      employees of First Financial Bank, were participants in the frozen First      Financial Bank defined benefit pension plan and are entitled to their      vested benefits thereunder.  The annual benefits payable upon      retirement at age 65 to Ms. Coughey and Mr. Kelly will be $10,825 and      $5,431, respectively.  Willow Financial Bancorp has no further      obligations with respect to, and will incur no additional costs for, the      prior First Financial Bank defined benefit pension  plan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (q) | If      Ms. Coughey's employment is terminated due to death, her spouse will be      entitled to receive a lump sum equal to one-half of her base salary for      the remaining term of her employmentagreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (r)   | If      the employment of Ms. Coughey is terminated due to disability or      retirement, Willow Financial will provide continued medical, dental and      life insurance coverage for her and any dependents covered as of the date      of termination of employment. Ms. Coughey does not yet qualify for      retirement. If Ms. Coughey's employment is terminated due to death, then      Willow Financial will provide her spouse and any dependents covered as of      the date of death with continued medical and dental      coverage.  In each case, the coverage will continue for the then      remaining term of the employment agreement, with Ms. Coughey (or her      spouse or dependents in the event of death) paying the employee share of      the premium costs. The estimated costs assume the current insurance      premiums or costs increase by 10% on each January 1st and have not been      discounted to present value. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Name                                                                                                                                                                                                                   |   | Plan      Name                                 |   | Number      of Years Credited Service |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|---------------------------------------|
| Donna      M.      Coughey                                  |   | First      Financial Bank Defined Benefit Plan |   | 4      years, 8 months                |
| Ammon      Baus                                             |   | n/a                                            |   | n/a                                   |
| Neil      Kalani                                            |   | n/a                                            |   | n/a                                   |
| Matthew      D.      Kelly                                  |   | First      Financial Bank Defined Benefit Plan |   | 3      years, 3 months                |
| Thomas      J.      Saunders                                |   | n/a                                            |   | n/a                                   |
| Joseph      T.      Crowley                                 |   | First      Financial Bank Defined Benefit Plan |   | 2      years                          |

| Name                                                                                                                                                                                                                                                 |   | Executive      Contributions in Last FY |   |   | Registrant      Contributions in Last FY(2) |   |    | Aggregate      Earnings in Last FY(3) |   |   | Aggregate      Withdrawals/Distributions |   |   | Aggregate      Balance at Last FYE |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|---------------------------------------------|--------|---------|---------------------------------------|--------|--------|------------------------------------------|--------|--------|------------------------------------|--------|
| Donna      M. Coughey                                                                                                                                                                                                                                |   |                                    |   |   |                                        |   |    |                                  |   |   |                                     |   |   |                               |   |
| Deferred Compensation      Plan                                                                                                                                                                                                                      |   | $                                       | 57,258 | (1)    |                                        | $      | --      |                                  |   | $      | (2,458                                   | )      |   | $                                  | --     |   |   | $ | 151,662 |   |
| 2007      SERP                                                                       |   |                                    | --     |   |                                        |   | 144,202 |                                  |   |   | 7,931                                    |   |   |                               | --     |   |   |   | 152,133 |   |
| Ammon      Baus                                                                                                                                                                                                                                      |   |                                    |   |   |                                        |   |    |                                  |   |   |                                     |   |   |                               |   |   |   |   |   |   |
| 2007      SERP                                                                       |   |                                    | --     |   |                                        |   | 75,647  |                                  |   |   | 4,161                                    |   |   |                               | --     |   |   |   | 79,808 |   |
| Neil      Kalani                                       |   |                                    | --     |   |                                        |   | --      |                                  |   |   | --                                       |   |   |                               | --     |   |   |   | -- |   |
| Matthew      D. Kelly                                                                                                                                                                                                                                |   |                                    |   |   |                                        |   |    |                                  |   |   |                                     |   |   |                               |   |   |   |   |   |   |
| 2007      SERP                                                                       |   |                                    | --     |   |                                        |   | 15,042  |                                  |   |   | 827                                      |   |   |                               | --     |   |   |   | 15,869 |   |
| Thomas      J. Saunders                                                                                                                                                                                                                              |   |                                    |   |   |                                        |   |    |                                  |   |   |                                     |   |   |                               |   |   |   |   |   |   |
| 2007      SERP                                                                       |   |                                    | --     |   |                                        |   | 21,581  |                                  |   |   | 1,187                                    |   |   |                               | --     |   |   |   | 22,768 |   |
| Joseph      T. Crowley                                                                                                                                                                                                                               |   |                                    |   |   |                                        |   |    |                                  |   |   |                                     |   |   |                               |   |   |   |   |   |   |
| Deferred Compensation      Plan                                                                                                                                                                                                                      |   |                                    | --     |   |                                        |   | --      |                                  |   |   | (9,789                                   | )      |   |                               | --     |   |   |   | 18,722 |   |
| 2007      SERP                                                                       |   |                                    | --     |   |                                        |   | 21,950  |                                  |   |   | 1,207                                    |   |   |                               | --     |   |   |   | 23,157 |   |

| (1) | Reflects      deferrals of the receipt of shares of Willow Financial Bancorp common      stock from our 2005 Recognition and Retention Plan in fiscal 2008 based      upon the market value of the stock on the date of  vesting. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The      registrant's contributions to the 2007 SERP are included in the Summary      Compensation Table under "All Other  Compensation." |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Aggregate      earnings reflect the aggregate interest or other earnings accrued to the      executive officer's account during fiscal year 2008.  Earnings      for Ms. Coughey's and Mr. Crowley's deferrals include the cash and stock      dividends received on the shares of restricted stock.  Losses      reflect the decrease in fair market value of the shares of Willow      Financial Bancorp common stock during the fiscal  year. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Name                                                                                                                                                                                                                                                   |   | FeesEarnedorPaidinCash(1) |   |   | StockAwards(2) |   |   | OptionAwards(2) |   |   | Change      inPensionValue      andNonqualifiedDeferredCompensationEarnings(3) |   |   | All      OtherCompensation(5) |    |   | Total(6) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|--------|----------------|--------|--------|-----------------|--------|--------|--------------------------------------------------------------------------------|--------|--------|-------------------------------|---------|--------|----------|--------|
| Rosemary      C.      Loring                                       |   | $                         | 35,300 |   |           | $      | 32,673 |            |   | $      | 7,285                                                                          |   |   | $                             | --      |   |     | $      | 6,164 |   |   |   | 81,422 |   |
| Madeleine      Wing      Adler                                     |   |                      | 23,904 |   |           |   | 19,456 |            |   |   | --                                                                             |   |   |                          | 3,666   |   |     |   | -- |   |   |   | 47,026 |   |
| John      J. Cunningham, III                                                                                                                                                                                                                           |   |                      | 28,504 |   |           |   | 19,456 |            |   |   | --                                                                             |   |   |                          | (11,792 | )      |     |   | -- |   |   |   | 36,168 |   |
| Gerard      F.      Griesser                                       |   |                      | 21,204 |   |           |   | 19,456 |            |   |   | --                                                                             |   |   |                          | (5,557  | )      |     |   | -- |   |   |   | 35,103 |   |
| Charles      F. Kremp 3rd                                          |   |                      | 32,804 |   |           |   | 32,673 |            |   |   | 7,285                                                                          |   |   |                          | --      |   |     |   | 6,164 |   |   |   | 78,926 |   |
| William      W.      Langan                                        |   |                      | 30,104 |   |           |   | 34,909 |            |   |   | 9,086                                                                          |   |   |                          | --      |   |     |   | 7,207 |   |   |   | 81,306 |   |
| Frederick      A. Marcell, Jr.(7)                                                                                                                                                                                                                      |   |                      | 7,835  |   |           |   | 60,664 |            |   |   | 17,036                                                                         |   |   |                          | 60,166  | (4)    |     |   | 119,218 |   |   |   | 204,753 |   |
| Robert      J.      McCormack                                      |   |                      | 32,604 |   |           |   | 19,456 |            |   |   | --                                                                             |   |   |                          | (1,363  | )      |     |   | -- |   |   |   | 50,697 |   |
| James      E.      McErlane                                        |   |                      | 30,504 |   |           |   | 19,456 |            |   |   | --                                                                             |   |   |                          | 6,465   |   |     |   | -- |   |   |   | 56,425 |   |
| A.      Brent      O'Brien                                         |   |                      | 29,504 |   |           |   | 32,673 |            |   |   | 7,285                                                                          |   |   |                          | --      |   |     |   | 6,164 |   |   |   | 75,626 |   |
| Samuel      H. Ramsey      III                                     |   |                      | 32,304 |   |           |   | 32,673 |            |   |   | 7,285                                                                          |   |   |                          | --      |   |     |   | 6,164 |   |   |   | 78,426 |   |
| Emory      S.      Todd                                            |   |                      | 34,504 |   |           |   | 19,456 |            |   |   | --                                                                             |   |   |                          | (2,178  | )      |     |   | -- |   |   |   | 51,782 |   |
| William      B. Weihenmayer                                                                                                                                                                                                                            |   |                      | 31,004 |   |           |   | 32,673 |            |   |   | 5,828                                                                          |   |   |                          | --      |   |     |   | 6,164 |   |   |   | 75,669 |   |

| (1) | Reflects      committee and meeting fees that were paid or were accrued during fiscal      year 2008. |
|-----|-------------------------------------------------------------------------------------------------------|

| (2) | The      column "Stock Awards" reflects expense recognized during fiscal year 2008      in accordance with Statement of Financial Accounting Standards No. 123(R)      related to grants of restricted stock awards to directors pursuant to our      2002 Recognition and Retention Plan and 2005 Recognition and Retention      Plan. Such awards pursuant to the 2002 and 2005 plans vest pro rata over      five and three years, respectively, commencing on the first anniversary of      the date of grant. The column "Option Awards" reflects expense recognized      during fiscal year 2008 in accordance with Statement of Financial      Accounting Standards No. 123(R) related to grants of stock options for      each director made pursuant to our 2002 Stock Option Plan, which shares      vest pro rata over five years commencing on the first anniversary of the      date of grant. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | No      stock option awards were made in fiscal 2008.  Directors serving      on the Board of Directors on January 5, 2007 received a grant of 1,935      shares of restricted stock under our 2005 Recognition and Retention      Plan.  The restricted stock awards were valued at $28,235, which      was the fair market value of our common stock on the date of      grant. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (Footnotes      continued on following page) |
|--------|----------------------------------------------|

----

|   | Each      of our non-employee directors was awarded 2,032 shares of restricted stock      on January 6, 2006 and January 5, 2007, that vest at a rate of 1/3 per      year commencing on the first anniversary of the date of      grant.  Ms. Loring and Messrs. Kremp, O'Brien, Ramsey and      Weihenmayer received 12,830 shares and Messrs. Langan and Marcell received      15,000 and 40,000 shares, respectively, on November 25, 2002, that vested      at a rate of 20% per year commencing on November 25, 2003 and ending on      November 25, 2007. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The      amounts represent the changes in the actuarial present value of      accumulated pension benefits, see "—Non-Qualified Retirement Plan"      below.  Our directors participate in the deferred compensation      plan and certain directors have accrued benefits under our frozen      Non-Employee Directors Retirement Plan as described below under "—Deferred      Compensation Plans." There are no above-market or preferential earnings      paid on the accounts under the deferred compensation  plans. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes      the aggregate change in actuarial present value of Mr. Marcell's      accumulated benefit under the Supplemental Executive Retirement Plan as      described below under "—Supplemental Retirement  Agreement." |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Consists      of dividends paid on unvested restricted stock awards upon vesting and      payments to Mr. Marcell pursuant to the terms of the Supplemental      Retirement Agreement. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | At      June 30, 2008, each non-employee director held the following amount of      unvested stock awards and/or aggregate stock option  awards: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | At      June 30, 2008      |   |   |         | At      June 30, 2008 |    |
|--------------------------------|--------|----------------------------|--------|--------|--------------|-----------------------|---------|
| Name                           |   | Unvested      Stock Awards |   |   | OptionAwards |                  | Name    |   | Unvested      Stock Awards |   |   | Option      Awards |   |
| Rosemary      C. Loring        |   |                       | 2,032  |   |         |                  | 57,306  |   | Robert      J.      McCormack                                  |   |   | 2,032 |   |   |   | -- |   |
| Madeleine      Wing Adler      |   |                       | 2,032  |   |         |                  | 6,006   |   | James      E.      McErlane                                 |   |   | 2,032 |   |   |   | 29,597 |   |
| John      J. Cunningham, III   |   |                       | 2,032  |   |         |                  | 29,597  |   | A.      Brent      O'Brien                                 |   |   | 2,032 |   |   |   | 49,431 |   |
| Gerard      F. Griesser        |   |                       | 2,032  |   |         |                  | --      |   | Samuel      H. Ramsey      III                                 |   |   | 2,032 |   |   |   | 48,688 |   |
| Charles      F. Kremp 3rd      |   |                       | 2,032  |   |         |                  | 44,920  |   | Emory      S.      Todd                                 |   |   | 2,032 |   |   |   | 13,299 |   |
| William      W. Langan         |   |                       | 2,032  |   |         |                  | 74,800  |   | William      B. Weihenmayer |   |   | 2,032 |   |   |   | 33,458 |   |
| Frederick      A. Marcell, Jr. |   |                       | 2,032  |   |         |                  | 127,352 |   |   |   |   |   |   |   |   |   |   |

| (7) | Mr.      Marcell retired on November 14, 2007 and was appointed director emeritus      for one year following hisretirement. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

----

----

| Item      12. | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters |
|---------------|----------------------------------------------------------------------------------------------------------|

| Plan Category                                              |   | Number of securities to beissued upon exercise ofoutstanding options,warrants and rights(a) |    | Weighted-averageexercise price ofoutstanding options,warrants and rights(b) |   | Number of securitiesremaining available forfuture issuance under equitycompensation plans(excluding securitiesreflected in column (a))(c) |
|-----------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|---------|------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity      compensation plans approved by security holders     |   |                                                                                                                                          | 714,975 | (1)                                                                                                  |   |                                                                                                                                                                                                  | $10.46 | (1)      (2) |   |   | 539,121 |   |
| Equity      compensation plans not approved by security holders |   |                                                                                                                                          | --      |                                                                                                 |   |                                                                                                                                                                                                  | -- |   |   |   | -- |   |
| Total                                                           |   |                                                                                                                                          | 714,975 |                                                                                                 |   |                                                                                                                                                                                                  | $10.46 |   |   |   | 539,121 |   |

| _____________________ |   |
|-----------------------|--------|

| (1) | Includes      89,955 shares subject to restricted stock grants, which were not vested as      of June 30, 2008. The weighted-average exercise price excludes such      restricted stock grants. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The      table does not include information for equity compensation plans assumed      by us in connection with the acquisition of Chester Valley Bancorp, which      originally established those plans. As of June 30, 2008, a total of      233,983 shares of Common Stock were issuable upon exercise of outstanding      options under those assumed plans and the weighted average exercise price      of those outstanding options was $9.80 per share. No additional options      may be granted under any assumedplans. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name      of Beneficial Owner or Number of Persons in Group                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Amount      and Nature of Beneficial Ownership(1) |      |   | Percent      ofCommon      Stock |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|-----------|--------|----------------------------------|--------|
| Willow      Grove Bank 401(k)/Employee Stock   Ownership      Plan      Trust                                                                    170 South WarnerRoadWayne, Pennsylvania      19087 |   |                                              | 1,017,271 | (2)    |                             |   | 6.5% |   |
| Dimensional      Fund Advisors      LP.                                                                    1299 Ocean Avenue, 11th      FloorSanta Monica, California      90401                                   |   |                                              | 1,289,417 | (3)    |                             |   | 8.2% |   |
| Private      Capital Management,      L.P.                                                                    8889 Pelican Bay      BoulevardNaples, Florida    34108                                              |   |                                              | 1,395,299 | (4)    |                             |   | 8.9% |   |

----

|        Name      of Beneficial Owner orNumber      of Persons in Group                                                                                                                                                                                                                                                                                                                                           |                                                                                            | Total      Amountand      Nature ofBeneficialOwnership(1) |   | Percent      of         Common Stock(21) |              | Number      of Shares UnderlyingOptions(21) |   | Number      of Unvested Recognition Plan      Awards(22) |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-----------------------------------------------------------|--------|----------------------------------------------------|-------------------|---------------------------------------------|--------|----------------------------------------------------------|
| Directors:                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                            |                                                      |   |                                               |              |                                        |
| Donna M.      Coughey                                                                                                         | 124,367                                                                                         | (5)                                                       | *      | 21,067                                             | 13,040            |                                        |
| John J. Cunningham,      III                                                                                                  | 53,995                                                                                          | (6)                                                       | *      | 39,451                                             |        2,032 |                                        |
| Gerard F.      Griesser                                                                                                       | 35,367                                                                                          | (7)                                                       | *      |              -- |        2,032 |                                        |
| Charles F. Kremp,      3rd                                                                                                    | 141,006                                                                                         | (8)                                                       | *      | 44,920                                             |        2,032 |                                        |
| William W.      Langan                                                                                                        | 124,514                                                                                         | (9)                                                       | *      | 74,800                                             |        2,032 |                                        |
| Rosemary C. Loring,      Esq.                                                                                                 | 101,020                                                                                         | (10)                                                      | *      | 57,306                                             |   2,032 |                                        |
| Robert J.      McCormack                                                                                                      |                     7,034 | (11)                                                      | *      | --                                                 |        2,032 |                                        |
| James E.      McErlane                                                                                                        | 454,945                                                                                         | (12)                                                      | 2.9%   | 39,451                                             |        2,032 |                                        |
| A. Brent      O'Brien                                                                                                         | 130,568                                                                                         | (13)                                                      | *      | 49,431                                             |        2,032 |                                        |
| Samuel H. Ramsey,      III                                                                                                    | 144,864                                                                                         | (14)                                                      | *      | 48,688                                             |        2,032 |                                        |
| Emory S. Todd, Jr.,      CPA                                                                                                  | 74,414                                                                                          | (15)                                                      | *      | 13,299                                             |        2,032 |                                        |
| William B.      Weihenmayer                                                                                                   | 110,486                                                                                         | (16)                                                      | *      | 33,458                                             |        2,032 |                                        |
| Madeleine Wing      Adler,      Ph.D.                                                                                         | 10,804                                                                                          |                                                      | *      |        6,006                                  |        2,032 |                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                            |                                                      |   |                                               |              |                                        |
| Other      Named Executive Officers:                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                            |                                                      |   |                                               |              |                                        |
| Ammon J.      Baus                                                                                                            | 28,882                                                                                          | (17)                                                      | *      | 13,335                                             |        4,132 |                                        |
| Thomas      Saunders                                                                                                          | 10,001                                                                                          |                                                      | *      | --                                                 |        6,667 |                                        |
| Neil      Kalani                                                                                                              | 4,895                                                                                           | (18)                                                      | *      | --                                                 |        2,082 |                                        |
| Matthew D.      Kelly                                                                                                         | 31,707                                                                                          | (19)                                                      | *      | 18,228                                             |        3,702 |                                        |
| Joseph T.      Crowley                                                                                                        | 16,396                                                                                          | (20)                                                      | *      |  210                                          | --                |                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                            |                                                      |   |                                               |              |                                        |
| All      Directors and Executive Officersas a group (18      persons)                                                         |  1,605,265                                                                                 |                                                      | 10.0%  |   459,650                                | 54,007            |                                        |

| (1) | Based      upon filings made pursuant to the Securities Exchange Act of 1934 and      information furnished by the respective individuals. Under regulations      promulgated pursuant to the Securities Exchange Act of 1934, shares of      common stock are deemed to be beneficially owned by a person if he or she      directly or indirectly has or shares (i) voting power, which includes the      power to vote or to direct the voting of the shares, or (ii) investment      power, which includes the power to dispose or to direct the disposition of      the shares. Unless otherwise indicated, the named beneficial owner has      sole voting and dispositive power with respect to the    shares. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Information      obtained from a Schedule 13G/A, filed February 14, 2008, with the SEC with      respect to common stock beneficially owned by Willow Financial Bank 401(k)      Employee Stock Ownership Plan Trust (“Willow Financial Bank 401(k)/ESOP      trust”). The Schedule 13G/A states that Willow Financial Bank 401(k)/ESOP      trust has shared voting and dispositive power as to all these shares. As      of December 31, 2007, 537,330 shares held in the Willow Financial Bank      401(k)/ESOP trust had been allocated to the accounts of participating      employees. Amounts held by Ms. Coughey reflect shares allocated to her      individual accounts in the Willow Financial Bank 401(k)/ESOP trust and      exclude all other shares held in the trust. Under the terms of the Willow      Financial Bank 401(k)/ESOP trust, the plan trustees vote all allocated      shares in accordance with the instructions of the participating employees.      Any unallocated shares are generally required to be voted by the plan      trustee in the same ratio on any matter as to those shares for which      instructions are given by the participant’s under the employee stock      ownership plan provisions. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Information      obtained from a Schedule 13G/A, filed February 6, 2008, with the SEC with      respect to shares of common stock beneficially owned by Dimensional Fund      Advisors LP (“Dimensional”). The Schedule 13G/A states that Dimensional      has sole voting and dispositive power as to all of these shares.      Dimensional disclaims beneficial ownership of these  shares. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Based      on a Schedule 13G/A, filed February 14, 2008, by Private Capital      Management, L.P. (“PCM”), a registered investment adviser, Bruce S.      Sherman and Gregg J. Powers, chief executive officer and president of PCM,      respectively, PCM and Messrs. Sherman and Powers exercise in these      capacities shared voting power and shared dispositive power with respect      to the 1,395,299 shares of Willow Financial common stock held by PCM’s      clients and managed by PCM. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (Footnotes      continued on following page) |
|--------|----------------------------------------------|

----

| (5) | Includes      37,135 shares held jointly with Ms. Coughey’s spouse, 12,088 shares held      by Ms. Coughey’s spouse, 15,726 shares held in Ms. Coughey’s individual      retirement account, 11,234 shares held in the Willow Grove Bank      401(k)/ESOP and 14,077 shares held in the Willow Financial Deferred      Compensation Plan rabbi trust, over which Ms. Coughey disclaims beneficial      ownership except to the extent of her personal pecuniary interest      therein. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Includes      2,095 shares held in the Willow Financial Deferred Compensation Plan rabbi      trust, over which Mr. Cunningham disclaims beneficial ownership except to      the extent of his personal pecuniary interest  therein. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Includes      179 shares held by Mr. Griesser’s spouse, 23,125 shares held jointly with      Mr. Griesser’s spouse and 2,293 shares held in Mr. Griesser’s individual      retirement account. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Includes      45,469 shares held jointly with Mr. Kremp's  spouse. |
|-----|--------------------------------------------------------------------|

| (9) | Includes      25,412 shares held in trust for Mr. Langan’s spouse over which Mr. Langan      disclaims beneficial ownership and 22,270 shares held in revocable trust      with Mr. Langan as trustee. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Includes      5,159 shares held jointly with Ms. Loring’s spouse, 12,725 shares held by      Ms. Loring’s spouse and 21,105 shares held in Ms. Loring’s individual      retirement account. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Includes      1,821 shares held in Mr. McCormack’s individual retirement      account. |
|------|----------------------------------------------------------------------------------------------|

| (12) | Includes      211,173 shares held in a trust of which Mr. McErlane is a co-trustee with      shared voting and investment power; 200,111 shares held by Mr. McErlane      and his spouse as tenants by the entireties with right of survivorship and      2,178 shares held in Mr. McErlane’s individual retirement      account. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Includes      2,357 shares held by Mr. O’Brien’sspouse. |
|------|---------------------------------------------------------------------|

| (14) | Includes      659 shares held in a trust for which Mr. Ramsey is a beneficiary, 20,130      shares held in Mr. Ramsey’s individual retirement account and 21,615      shares held in the Willow Financial Deferred Compensation Plan rabbi      trust, over which he disclaims beneficial ownership, except to the extent      of his personal pecuniary interesttherein. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (15) | Includes      21,962 shares held in Mr. Todd’s individual retirement account and 2,070      shares held in the Willow Financial Deferred Compensation Plan rabbi      trust, over which Mr. Todd disclaims beneficial ownership, except to the      extent of his personal pecuniary interest  therein. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (16) | Includes      17,585 shares held by Mr. Weihenmayer’s spouse and 20,028 shares held in      the Willow Financial Deferred Compensation Plan rabbi trust, over which he      disclaims beneficial ownership, except to the extent of his personal      primary interest therein. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (17) | Includes      2,695 shares held jointly with Mr. Baus’s spouse and 8,720 shares held in      Mr. Baus’s accounts in the Willow Grove Bank  401(k)/ESOP. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (18) | Includes      1,772 shares held in Mr. Kalani’s account in the Willow Grove Bank      401(k)/ESOP. |
|------|----------------------------------------------------------------------------------------------------------|

| (19) | Includes      1,744 shares held in Mr. Kelly’s account in the Willow Grove Bank      401(k)/ESOP. |
|------|---------------------------------------------------------------------------------------------------------|

| (20) | Includes      136 shares held by Mr. Crowley's spouse, 161 shares held by Mr. Crowley as      custodian for his children, 11,236 shares held in Mr. Crowley's account in      the Willow Grove Bank 401(k)/ESOP and 2,297 shares held in the Willow      Financial Bancorp Deferred Compensation Plan rabbi trust, over which he      disclaims beneficial ownership, except to the extent of his personal      pecuniary interest therein. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (21) | Each      beneficial owner’s percentage ownership is determined by assuming that      options held by such person (but not those held by any other person) and      that are exercisable within 60 days of the voting record date have been      exercised. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (22) | Includes      shares awarded to directors and executive officers pursuant to the 2005      Recognition and Retention Plan. Directors and executive officers do not      have voting or dispositive power with respect to restricted stock awards      under the 2005 Recognition and RetentionPlan. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Year      Ended June 30, |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2008                     |      |   | 2007 |   |
| Audit      fees      (1)                                                                                              |   | $                        | 1,041,000 |   |   | $ | 1,257,000 |   |
| Audit-related      fees      (2)                                                                                      |   |                     | 114,725   |   |   |   | -- |   |
| Tax      fees      (3)                                                                                                |   |                     | --        |   |   |   | 950 |   |
| All      other      fees                                                                                              |   |                     | --        |   |   |   | -- |   |
| Total                                                                                                                           |   | $                        | 1,155,725 |   |   | $ | 1,257,950 |   |

| (1) | Audit      fees consist of fees incurred in connection with the audit of our annual      financial statements, the review of the interim financial statements      included in our quarterly reports filed with the Securities and Exchange      Commission, and with respect to fiscal 2007, the review of our Form 10-K      amendments and work performed in connection with our previously disclosed      out of balance condition, as well as work generally only the independent      auditor can reasonably be expected to provide, such as statutory audits,      consents and assistance with and review of documents filed with the      Securities and Exchange Commission. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Audit-related      fees primarily consist of fees incurred in connection with the review of      registration statements in connection with our merger with Harleysville      National. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Tax      fees consist primarily of fees paid in connection with preparing federal      and state income tax returns and other tax related    services. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                        |   | WILLOW FINANCIAL      BANCORP, INC. |
|-----------------------------|--------|-------------------------------------|
|                        |   |                                |   |
|                        |   |                                |   |
| Date: October 28,      2008 |   | By:                                 | /s/Donna M.    Coughey |
|                        |   |                                | Donna M. Coughey |
|                        |   |                                | President and Chief Executive      Officer |
|                        |   |                                |   |
| Date: October 28,      2008 |   | By:                                 | /s/Neelesh  Kalani |
|                        |   |                                | Neelesh Kalani |
|                        |   |                                | Principal Financial      Officer |

----

|   | CERTIFICATIONS |
|--------|----------------|

|   | I,      Donna M. Coughey, President and Chief Executive Officer, certify      that: |
|--------|-------------------------------------------------------------------------------------|

| 1. | I      have reviewed this amended annual report on Form 10-K/A of Willow      Financial Bancorp, Inc.; |
|----|--------------------------------------------------------------------------------------------------------|

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

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

| 4. | The      registrant's other certifying officer and I are responsible for      establishing and maintaining disclosure controls and procedures (as      defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal      control over financial reporting (as defined in Exchange Act Rules      13a-15(f) and 15d-15(f)) for the registrant and we  have: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | Designed      such disclosure controls and procedures, or caused such disclosure      controls and procedures to be designed under our supervision, to ensure      that material information relating to the registrant, including its      consolidated subsidiaries, is made known to us by others within those      entities, particularly during the period in which this report is being      prepared; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Designed      such internal control over financial reporting, or caused such internal      control over financial reporting to be designed under our supervision, to      provide reasonable assurance regarding the reliability of financial      reporting and the preparation of financial statements for external      purposes in accordance with generally accepted accounting      principles; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Evaluated      the effectiveness of the registrant's disclosure controls and procedures      and presented in this report our conclusions about the effectiveness of      the disclosure controls and procedures, as of the end of the period      covered by this report based on such evaluation;  and |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | Disclosed      in this report any change in the registrant's internal control over      financial reporting that occurred during the registrant's most recent      fiscal quarter that has materially affected, or is reasonably likely to      materially affect, the registrant's internal control over financial      reporting; and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | a) | All      significant deficiencies and material weaknesses in the design or      operation of internal control over financial reporting which are      reasonably likely to adversely affect the registrant's ability to record,      process, summarize and report financial information;  and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Any      fraud, whether or not material, that involves management or other      employees who have a significant role in the registrant's internal control      over financial reporting. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Date:      October 28, 2008 |
|--------|-----------------------------|

|   | /s/Donna M.      Coughey             |   |
|--------|--------------------------------------------------------------------------------------------------|--------|

|   | Donna      M. Coughey |
|--------|-----------------------|

|   | President      and Chief Executive Officer |
|--------|--------------------------------------------|

----

|   | CERTIFICATIONS |
|--------|----------------|

|   | I,      Neelesh Kalani, (Principal Financial Officer), certify    that: |
|--------|-------------------------------------------------------------------------|

| 1. | I      have reviewed this amended annual report on Form 10-K/A of Willow      Financial Bancorp, Inc.; |
|----|--------------------------------------------------------------------------------------------------------|

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

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

| 4. | The      registrant's other certifying officer and I are responsible for      establishing and maintaining disclosure controls and procedures (as      defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal      control over financial reporting (as defined in Exchange Act Rules      13a-15(f) and 15d-15(f)) for the registrant and we  have: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | Designed      such disclosure controls and procedures, or caused such disclosure      controls and procedures to be designed under our supervision, to ensure      that material information relating to the registrant, including its      consolidated subsidiaries, is made known to us by others within those      entities, particularly during the period in which this report is being      prepared; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Designed      such internal control over financial reporting, or caused such internal      control over financial reporting to be designed under our supervision, to      provide reasonable assurance regarding the reliability of financial      reporting and the preparation of financial statements for external      purposes in accordance with generally accepted accounting      principles; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Evaluated      the effectiveness of the registrant's disclosure controls and procedures      and presented in this report our conclusions about the effectiveness of      the disclosure controls and procedures, as of the end of the period      covered by this report based on such evaluation;  and |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | Disclosed      in this report any change in the registrant's internal control over      financial reporting that occurred during the registrant's most recent      fiscal quarter that has materially affected, or is reasonably likely to      materially affect, the registrant's internal control over financial      reporting; and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | a) | All      significant deficiencies and material weaknesses in the design or      operation of internal control over financial reporting which are      reasonably likely to adversely affect the registrant's ability to record,      process, summarize and report financial information;  and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Any      fraud, whether or not material, that involves management or other      employees who have a significant role in the registrant's internal control      over financial reporting. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Date:      October 28, 2008 |
|--------|-----------------------------|

|   | /s/Neelesh      Kalani             |
|--------|------------------------------------------------------------------------------------------------|
|   | Neelesh      Kalani                                                                            |

|   | Principal      Financial Officer |
|--------|----------------------------------|

----

| Date: October 28,      2008 |   |   | /s/Donna M.    Coughey                                         |
|-----------------------------|--------|--------|---------------------------------------------------------------------|
|                        |   |   | Name:  Donna M. Coughey                                        |
|                        |   |   | Title:         President and Chief Executive Officer |
|                        |   |   |                                                                |
| Date: October 28,      2008 |   |   | /s/Neelesh    Kalani                                           |
|                        |   |   | Name:  Neelesh Kalani                                          |
|                        |   |   | Title:         Principal Financial Officer           |