----

----

| x      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                                                                                                                                                                                                                                              |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | EXCHANGE ACT OF 1934                                                                                                                                                                                                                                                                                                 |
|   | For the quarterly period ended March 31, 2010                                                                                                                                                                                                                                                                   |
|   | OR                                                                                                                                                                                                                                                                                                                   |
| o      | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                                                                                                                                                                                                                                             |
|   | EXCHANGE ACT OF 1934                                                                                                                                                                                                                                                                                                 |
|   | For the transition period from                     to                          |
|   | Commission file number: 000-51214                                                                                                                                                                                                                                                                                    |

| Prudential Bancorp, Inc. of Pennsylvania                       |
|----------------------------------------------------------------|
| (Exact Name of Registrant as Specified in Its Charter)         |
| Pennsylvania                                                   |   | 68-0593604 |
| (State or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S. Employer Identification No.) |
| 1834 Oregon AvenuePhiladelphia, Pennsylvania                   |   | 19145Zip Code |
| (Address of Principal Executive Offices)                       |   |   |
| (215) 755-1500                                                 |
| (Registrant’s Telephone Number, Including Area Code)     |

|   | o Yes  o No |
|--------|----------------------------|

|                                                                  |                                                                                                                                                             |                |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
| Large accelerated filer o                                             |                                                                                                                                                             | Accelerated filer o |
| Non-accelerated filer o (Do not check if a smaller reporting company) |                        Smaller reporting company x |

----

|    |                   |                                                                                                                                                 |   |   |
|---------|------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|    |                   |                                                                                                                                                 | PAGE   |
|    |                   |                                                                                                                                                 |   |   |
| PART I  | FINANCIAL INFORMATION: |                                                                                                                                                 |   |
|    |                   |                                                                                                                                                 |   |   |
|    | Item 1.                | Consolidated Financial Statements                                                                                                                    |   |   |
|    |                   |                                                                                                                                                 |   |   |
|    |                   | Unaudited Consolidated Statements of Financial Condition March 31, 2010 and September 30, 2009                                                       | 2      |   |
|    |                   |                                                                                                                                                 |   |   |
|    |                   | Unaudited Consolidated Statements of Operations for the Three And Six Months Ended March 31, 2010 and 2009                                           | 3      |   |
|    |                   |                                                                                                                                                 |   |   |
|    |                   | Unaudited Consolidated Statements of Changes in Stockholders’ Equity and Comprehensive Income for the Six Months Ended March 31, 2010 and 2009 | 4      |   |
|    |                   |                                                                                                                                                 |   |   |
|    |                   | Unaudited Consolidated Statements of Cash Flows for the Six Months Ended March 31, 2010 and 2009                                                     | 5      |   |
|    |                   |                                                                                                                                                 |   |   |
|    |                   | Notes to Unaudited Consolidated Financial Statements                                                                                                 | 6      |   |
|    |                   |                                                                                                                                                 |   |   |
|    | Item 2.                | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                          | 23     |   |
|    |                   |                                                                                                                                                 |   |   |
|    | Item 3.                | Quantitative and Qualitative Disclosures About Market Risk                                                                                           | 37     |   |
|    |                   |                                                                                                                                                 |   |   |
|    | Item 4T.               | Controls and Procedures                                                                                                                              | 37     |   |
|    |                   |                                                                                                                                                 |   |   |
| PART II | OTHER INFORMATION      |                                                                                                                                                 |   |
|    |                   |                                                                                                                                                 |   |
|    | Item 1.                | Legal Proceedings                                                                                                                                    | 38     |   |
|    |                   |                                                                                                                                                 |   |   |
|    | Item 1A.               | Risk Factors                                                                                                                                         | 38     |   |
|    |                   |                                                                                                                                                 |   |   |
|    | Item 2.                | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                          | 38     |   |
|    |                   |                                                                                                                                                 |   |   |
|    | Item 3.                | Defaults Upon Senior Securities                                                                                                                      | 39     |   |
|    |                   |                                                                                                                                                 |   |   |
|    | Item 4.                | (Removed and Reserved)                                                                                                                               | 39     |   |
|    |                   |                                                                                                                                                 |   |   |
|    | Item 5.                | Other Information                                                                                                                                    | 39     |   |
|    |                   |                                                                                                                                                 |   |   |
|    | Item 6.                | Exhibits                                                                                                                                             | 39     |   |
|    |                   |                                                                                                                                                 |   |   |
|    | SIGNATURES             | 40                                                                                                                                                   |   |

----

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

|                                                                                                                                                                                     |   | March 31,              |    |   | September 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|---------------|--------|
|                                                                                                                                                                                     |   | 2010                   |    |   | 2009          |   |
|                                                                                                                                                                                     |   | (Dollars in Thousands) |    |
| ASSETS                                                                                                                                                                                   |   |                   |    |   |          |   |
|                                                                                                                                                                                     |   |                   |    |   |          |   |
| Cash and amounts due from depository institutions                                                                                                                                        |   | $                      | 5,036   |   |          | $      | 4,088 |   |
| Interest-bearing deposits                                                                                                                                                                |   |                   | 16,448  |   |          |   | 9,581 |   |
|                                                                                                                                                                                     |   |                   |    |   |          |   |   |   |
|            Total cash and cash equivalents                                                                                        |   |                   | 21,484  |   |          |   | 13,669 |   |
|                                                                                                                                                                                     |   |                   |    |   |          |   |   |   |
| Investment and mortgage-backed securities held to maturity (estimated fair value—                                                                                                  |   |                   |    |   |          |   |   |   |
|   March 31, 2010, $141,967; September 30, 2009, $161,968)                                                                                                                      |   |                   | 140,450 |   |          |   | 160,126 |   |
| Investment and mortgage-backed securities available for sale (amortized cost—                                                                                                      |   |                   |    |   |          |   |   |   |
|   March 31, 2010, $67,118; September 30, 2009, $63,000)                                                                                                                        |   |                   | 66,982  |   |          |   | 62,407 |   |
| Loans receivable—net of allowance for loan losses (March 31, 2010, $2,426;                                                                                                         |   |                   |    |   |          |   |   |   |
|   September 30, 2009, $2,732)                                                                                                                                                  |   |                   | 253,831 |   |          |   | 256,694 |   |
| Accrued interest receivable:                                                                                                                                                             |   |                   |    |   |          |   |   |   |
|   Loans receivable                                                                                                                                                             |   |                   | 1,474   |   |          |   | 1,419 |   |
|   Mortgage-backed securities                                                                                                                                                   |   |                   | 368     |   |          |   | 390 |   |
|   Investment securities                                                                                                                                                        |   |                   | 1,383   |   |          |   | 1,496 |   |
| Real estate owned                                                                                                                                                                        |   |                   | 5,297   |   |          |   | 3,622 |   |
| Federal Home Loan Bank stock—at cost                                                                                                                                               |   |                   | 3,545   |   |          |   | 3,545 |   |
| Office properties and equipment—net                                                                                                                                                |   |                   | 1,981   |   |          |   | 1,992 |   |
| Bank owned life insurance                                                                                                                                                                |   |                   | 5,888   |   |          |   | 5,786 |   |
| Prepaid expenses and other assets                                                                                                                                                        |   |                   | 3,515   |   |          |   | 1,272 |   |
| Deferred tax asset-net                                                                                                                                                                   |   |                   | 2,041   |   |          |   | 2,343 |   |
| TOTAL ASSETS                                                                                                                                                                             |   | $                      | 508,239 |   |          | $      | 514,761 |   |
|                                                                                                                                                                                     |   |                   |    |   |          |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                               |   |                   |    |   |          |   |   |   |
|                                                                                                                                                                                     |   |                   |    |   |          |   |   |   |
| LIABILITIES:                                                                                                                                                                             |   |                   |    |   |          |   |   |   |
|   Deposits:                                                                                                                                                                    |   |                   |    |   |          |   |   |   |
|      Noninterest-bearing                                                                                                                                        |   | $                      | 2,102   |   |          | $      | 2,848 |   |
|      Interest-bearing                                                                                                                                           |   |                   | 434,214 |   |          |   | 429,526 |   |
|            Total deposits                                                                                                         |   |                   | 436,316 |   |          |   | 432,374 |   |
|   Advances from Federal Home Loan Bank                                                                                                                                         |   |                   | 13,637  |   |          |   | 19,659 |   |
|   Accrued interest payable                                                                                                                                                     |   |                   | 1,374   |   |          |   | 3,463 |   |
|   Advances from borrowers for taxes and insurance                                                                                                                              |   |                   | 1,186   |   |          |   | 1,214 |   |
|   Accounts payable and accrued expenses                                                                                                                                        |   |                   | 1,019   |   |          |   | 1,703 |   |
|   Accrued dividend payable                                                                                                                                                     |   |                   | 501     |   |          |   | 491 |   |
|            Total liabilities                                                                                                      |   |                   | 454,033 |   |          |   | 458,904 |   |
|                                                                                                                                                                                     |   |                   |    |   |          |   |   |   |
| COMMITMENTS AND CONTINGENCIES (Note 8)                                                                                                                                                   |   |                   |    |   |          |   |   |   |
|                                                                                                                                                                                     |   |                   |    |   |          |   |   |   |
| STOCKHOLDERS’ EQUITY:                                                                                                                                                              |   |                   |    |   |          |   |   |   |
|    Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued                                                                                             |   |                   | -       |   |          |   | - |   |
|    Common stock, $.01 par value, 40,000,000 shares authorized, issued 12,563,750; outstanding - 10,031,472 at March 31, 2010;  10,331,866 at September 30, 2009 |   |                   | 126     |   |          |   | 126 |   |
|    Additional paid-in capital                                                                                                                                             |   |                   | 53,246  |   |          |   | 52,938 |   |
|    Unearned ESOP shares                                                                                                                                                   |   |                   | (3,346  | )      |          |   | (3,457 | ) |
|    Treasury stock, at cost:  2,532,278 shares at March 31, 2010; 2,231,884 shares at September 30, 2009                                                    |   |                   | (31,576 | )      |          |   | (28,652 | ) |
|    Retained earnings                                                                                                                                                      |   |                   | 35,846  |   |          |   | 35,293 |   |
|    Accumulated other comprehensive loss                                                                                                                                   |   |                   | (90     | )      |          |   | (391 | ) |
|                                                                                                                                                                                     |   |                   |    |   |          |   |   |   |
|            Total stockholders’ equity                                                                                       |   |                   | 54,206  |   |          |   | 55,857 |   |
|                                                                                                                                                                                     |   |                   |    |   |          |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                         |   | $                      | 508,239 |   |          | $      | 514,761 |   |

----

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

|                                                                                                 |   | Three Months EndedMarch 31,                     |   |   | Six Months EndedMarch 31,                      |   |
|------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|------------------------------------------------|--------|
|                                                                                                 |   | 2010                                            |   |   | 2009                                           |   |   | 2010 |   |   | 2009 |   |
|                                                                                                 |   | (Dollars in Thousands Except Per Share Amounts) |   |   | (Dollars in Thousands ExceptPer Share Amounts) |   |
| INTEREST INCOME:                                                                                     |   |                                            |   |   |                                           |   |   |   |   |   |   |   |
|   Interest on loans                                                                        |   | $                                               | 3,719  |   |                                           | $      | 3,863 |   |   | $ | 7,470 |   |   | $ | 7,590 |   |
|   Interest on mortgage-backed securities                                                   |   |                                            | 1,188  |   |                                           |   | 1,562 |   |   |   | 2,411 |   |   |   | 3,318 |   |
|   Interest and dividends on investments                                                    |   |                                            | 1,404  |   |                                           |   | 1,480 |   |   |   | 2,896 |   |   |   | 3,224 |   |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|           Total interest income                    |   |                                            | 6,311  |   |                                           |   | 6,905 |   |   |   | 12,777 |   |   |   | 14,132 |   |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST EXPENSE:                                                                                    |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|   Interest on deposits                                                                     |   |                                            | 2,086  |   |                                           |   | 3,202 |   |   |   | 4,357 |   |   |   | 6,361 |   |
|   Interest on borrowings                                                                   |   |                                            | 200    |   |                                           |   | 224 |   |   |   | 417 |   |   |   | 527 |   |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|           Total interest expense                   |   |                                            | 2,286  |   |                                           |   | 3,426 |   |   |   | 4,774 |   |   |   | 6,888 |   |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| NET INTEREST INCOME                                                                                  |   |                                            | 4,025  |   |                                           |   | 3,479 |   |   |   | 8,003 |   |   |   | 7,244 |   |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION FOR LOAN LOSSES                                                                            |   |                                            | 250    |   |                                           |   | 50 |   |   |   | 385 |   |   |   | 363 |   |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| NET INTEREST  INCOME AFTER PROVISION FOR LOAN LOSSES                                  |   |                                            | 3,775  |   |                                           |   | 3,429 |   |   |   | 7,618 |   |   |   | 6,881 |   |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| NON-INTEREST INCOME (LOSS):                                                                          |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|   Fees and other service charges                                                           |   |                                            | 118    |   |                                           |   | 131 |   |   |   | 243 |   |   |   | 256 |   |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|      Total other-than-temporary impairment losses                           |   |                                            | (43    | )      |                                           |   | (3,156 | ) |   |   | (375 | ) |   |   | (5,310 | ) |
|      Portion of loss recognized in other comprehensive income, before taxes |   |                                            | (90    | )      |                                           |   | 2,509 |   |   |   | 38 |   |   |   | 2,509 |   |
|      Net impairment losses recognized in earnings                           |   |                                            | (133   | )      |                                           |   | (647 | ) |   |   | (337 | ) |   |   | (2,801 | ) |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|   Other                                                                                    |   |                                            | 77     |   |                                           |   | 82 |   |   |   | 176 |   |   |   | 164 |   |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|           Total non-interest income (loss)         |   |                                            | 62     |   |                                           |   | (434 | ) |   |   | 82 |   |   |   | (2,381 | ) |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| NON-INTEREST EXPENSE:                                                                                |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|   Salaries and employee benefits                                                           |   |                                            | 1,324  |   |                                           |   | 1,262 |   |   |   | 2,685 |   |   |   | 2,330 |   |
|   Data processing                                                                          |   |                                            | 122    |   |                                           |   | 136 |   |   |   | 260 |   |   |   | 301 |   |
|   Professional services                                                                    |   |                                            | 143    |   |                                           |   | 204 |   |   |   | 285 |   |   |   | 420 |   |
|   Office occupancy                                                                         |   |                                            | 110    |   |                                           |   | 109 |   |   |   | 203 |   |   |   | 204 |   |
|   Depreciation                                                                             |   |                                            | 89     |   |                                           |   | 81 |   |   |   | 177 |   |   |   | 166 |   |
|   Payroll taxes                                                                            |   |                                            | 95     |   |                                           |   | 78 |   |   |   | 162 |   |   |   | 141 |   |
|   Director compensation                                                                    |   |                                            | 88     |   |                                           |   | 64 |   |   |   | 150 |   |   |   | 121 |   |
|   Deposit insurance                                                                        |   |                                            | 155    |   |                                           |   | 88 |   |   |   | 337 |   |   |   | 296 |   |
|   Real estate owned expense                                                                |   |                                            | 58     |   |                                           |   | 209 |   |   |   | 74 |   |   |   | 220 |   |
|   Advertising                                                                              |   |                                            | 114    |   |                                           |   | 110 |   |   |   | 212 |   |   |   | 207 |   |
|   Other                                                                                    |   |                                            | 363    |   |                                           |   | 337 |   |   |   | 671 |   |   |   | 726 |   |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|            Total non-interest expense         |   |                                            | 2,661  |   |                                           |   | 2,678 |   |   |   | 5,216 |   |   |   | 5,132 |   |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE INCOME TAXES                                                                    |   |                                            | 1,176  |   |                                           |   | 317 |   |   |   | 2,484 |   |   |   | (632 | ) |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| INCOME TAXES:                                                                                        |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|   Current expense                                                                          |   |                                            | 214    |   |                                           |   | 350 |   |   |   | 808 |   |   |   | 853 |   |
|   Deferred expense (benefit)                                                               |   |                                            | 119    |   |                                           |   | 15 |   |   |   | 147 |   |   |   | (444 | ) |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|           Total income tax expense                 |   |                                            | 333    |   |                                           |   | 365 |   |   |   | 955 |   |   |   | 409 |   |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS)                                                                                    |   | $                                               | 843    |   |                                           | $      | (48 | ) |   | $ | 1,529 |   |   | $ | (1,041 | ) |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| BASIC INCOME (LOSS) PER SHARE                                                                        |   | $                                               | 0.09   |   |                                           | $      | (0.004 | ) |   | $ | 0.16 |   |   | $ | (0.10 | ) |
|                                                                                                 |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| DILUTED INCOME (LOSS) PER SHARE                                                                      |   | $                                               | 0.09   |   |                                           | $      | (0.004 | ) |   | $ | 0.15 |   |   | $ | (0.10 | ) |

----

----

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

|                                                                                                                       |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   | Accumulated |          |   |   |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|--------|---------|------------|--------|--------|----------|--------|----------|--------|--------|----------|---------|--------|---------------|--------|--------|---------------------|--------|-------------|---------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                       |   |                                                  |   |   |    | Additional |   |   | Unearned |   |     |   |   |     |    |   |          |   |   | Other               |   |        | Total         |   |   |   |   |
|                                                                                                                       |   | Common                                                |   |   | Paid-In |       |   | ESOP   |     |   | Treasury |   |   | Retained |    |   | Comprehensive |   |   | Stockholders’ |   |        | Comprehensive |   |
|                                                                                                                       |   | Stock                                                 |   |   | Capital |       |   | Shares |     |   | Stock    |   |   | Earnings |    |   | Income (Loss) |   |   | Equity              |   |        | Income (Loss) |   |
|                                                                                                                       |   |  (Dollars in Thousands except per share amounts) |   |
| BALANCE, OCTOBER 1, 2009                                                                                                   |   | $                                                     | 126    |   |    | $          | 52,938 |   |     | $      | (3,457   | )      |   | $        | (28,652 | )      |          | $      | 35,293 |                |   | $           | (391          | )      |   | $      | 55,857 |   |   |   |   |
|                                                                                                                       |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   |   |   |   |   |   |
| Comprehensive income:                                                                                                      |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   |   |   |   |   |   |
|                                                                                                                       |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   |   |   |   |   |   |
| Net income                                                                                                                 |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   | 1,529  |                |   |        |          |   |   |   | 1,529  |   |   |   | 1,529 |   |
|                                                                                                                       |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   |   |   |   |   |   |   |
| Net unrealized holding gain on available for sale securities arising during the period, net of income tax of $41 |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        | 79            |   |   |   | 79     |   |   |   | 79 |   |
|                                                                                                                       |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment for other than temporary impairment recognized in earnings net of tax of $115                  |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        | 222           |   |   |   | 222    |   |   |   | 222 |   |
| Comprehensive income                                                                                                       |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   |   |   |   | $      | 1,830 |   |
|                                                                               |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   |   |   |   |   |   |   |
| Cash dividends declared ($.10 per share)                                                                              |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   | (976   | )                   |   |        |          |   |   |   | (976   | )      |   |   |   |   |
|                                                                                                                       |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   |   |   |   |   |   |   |
| Treasury stock purchased   (300,394 shares)                                                                      |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     | (2,924  | )      |          |   |   |                |   |        |          |   |   |   | (2,924 | )      |   |   |   |   |
|                                                                                                                       |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   |   |   |   |   |   |   |
| Excess tax benefit from stock   compensation                                                                     |   |                                                  |   |   |    |       | 31     |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   | 31     |   |   |   |   |   |
|                                                                                                                       |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   |   |   |   |   |   |   |
| Stock option expense                                                                                                       |   |                                                  |   |   |    |       | 109    |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   | 109    |   |   |   |   |   |
|                                                                                                                       |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   |   |   |   |   |   |   |
| Recognition and Retention   Plan expense                                                                         |   |                                                  |   |   |    |       | 172    |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   | 172    |   |   |   |   |   |
|                                                                                                                       |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   |   |   |   |   |   |   |
| ESOP shares committed to be released (11,310 shares)                                                                  |   |                                                  | -      |   |    |       | (4     | )      |     |   | 111      |   |   |     | -       |   |          |   | -      |                |   |        | -             |   |   |   | 107    |   |   |   |   |   |
|                                                                                                                       |   |                                                  |   |   |    |       |   |   |     |   |     |   |   |     |    |   |          |   |   |                |   |        |          |   |   |   |   |   |   |   |   |   |
| BALANCE, March 31, 2010                                                                                                    |   | $                                                     | 126    |   |    | $          | 53,246 |   |     | $      | (3,346   | )      |   | $        | (31,576 | )      |          | $      | 35,846 |                |   | $           | (90           | )      |   | $      | 54,206 |   |   |   |   |   |

|                                                                                                                                                 |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   | Accumulated   |   |   |                |   |   |          |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|------------|--------|--------|----------|--------|--------|----------|--------|--------|----------|---------|--------|---------------|--------|--------|---------------------|--------|--------|---------------|--------|
|                                                                                                                                                 |   |                                            |   |   | Additional |   |   | Unearned |   |   |     |   |   |     |    |   | Other         |   |   | Total               |   |   |          |   |
|                                                                                                                                                 |   | Common                                          |   |   | Paid-In    |   |   | ESOP     |   |   | Treasury |   |   | Retained |    |   | Comprehensive |   |   | Stockholders’ |   |   | Comprehensive |   |
|                                                                                                                                                 |   | Stock                                           |   |   | Capital    |   |   | Shares   |   |   | Stock    |   |   | Earnings |    |   | Income (Loss) |   |   | Equity              |   |   | Income (Loss) |   |
|                                                                                                                                                 |   | (Dollars in Thousands except per share amounts) |   |
| BALANCE, OCTOBER 1, 2008                                                                                                                             |   | $                                               | 126    |   |       | $      | 54,925 |     |   | $      | (3,680   | )      |   | $        | (19,481 | )      |          | $      | 37,288 |                |   | $      | (691          | )      |   | $ | 68,487 |   |   |   |   |
|                                                                                                                                                 |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |
| Cumulative adjustment related to the adoption of EITF 06-10, net of tax                                                                              |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   | (256   | )                   |   |   |          |   |   |   | (256 | ) |   |   |   |
|                                                                           |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |
| Cumulative adjustment related to the adoption of Reognition and Presentation, of other-than-temporary impairment, net of income tax benefit of $390. |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   | 1,148  |                |   |   | (758          | )      |   |   | 390 |   |   |   |   |
|                                                                                                                                                 |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |
| Comprehensive income (loss):                                                                                                                         |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |
|                                                                                                                                                 |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                                             |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   | (1,041 | )                   |   |   |          |   |   |   | (1,041 | ) |   |   | (1,041 | ) |
|                                                                                                                                  |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Net unrealized holding loss on available for sale securities arising during the period, net of income tax benefit of $928             |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   | (1,802        | )      |   |   | (1,802 | ) |   |   | (1,802 | ) |
|                                                                                                                                                 |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment for other than temporary impairment recognized in earnings net of tax of $953                                            |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   | 1,848         |   |   |   | 1,848 |   |   |   | 1,848 |   |
| Comprehensive loss                                                                                                                                   |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   | $ | (995 | ) |
|                                                                                                                                                 |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Cash dividends declared ($.10 per share)                                                                                                             |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   | (1,068 | )                   |   |   |          |   |   |   | (1,068 | ) |   |   |   |   |
|                                                                                                                                                 |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Excess tax benefit and stock   compensation                                                                                                |   |                                            |   |   |       |   | 35     |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   | 35 |   |   |   |   |   |
|                                                                                                                                                 |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Stock option expense                                                                                                                                 |   |                                            |   |   |       |   | 52     |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   | 52 |   |   |   |   |   |
|                                                                                                                                                 |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Recognition and Retention   Plan expense                                                                                                   |   |                                            |   |   |       |   | 57     |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   | 57 |   |   |   |   |   |
|                                                                                                                                                 |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| Acquisition of restricted stock plan shares (226,148 shares)                                                                                         |   |                                            |   |   |       |   | (2,465 | )        |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   | (2,465 | ) |   |   |   |   |
|                                                                                                                                                 |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| ESOP shares committed to be released (11,310 shares)                                                                                                 |   |                                            | -      |   |       |   | 4      |     |   |   | 111      |   |   |     | -       |   |          |   | -      |                |   |   | -             |   |   |   | 115 |   |   |   |   |   |
|                                                                                                                                                 |   |                                            |   |   |       |   |   |     |   |   |     |   |   |     |    |   |          |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |
| BALANCE, March 31, 2009                                                                                                                              |   | $                                               | 126    |   |       | $      | 52,608 |     |   | $      | (3,569   | )      |   | $        | (19,481 | )      |          | $      | 36,071 |                |   | $      | (1,403        | )      |   | $ | 64,352 |   |   |   |   |   |

----

| PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA AND SUBSIDIARIES |
|-----------------------------------------------------------|
|                                                      |
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS           |

|                                                                                                                                          |   | Six Months Ended March 31, |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|---------|
|                                                                                                                                          |   | 2010                            |    |   | 2009 |   |
| OPERATING ACTIVITIES:                                                                                                                         |   | (Dollars in Thousands)          |    |
|   Net income (loss)                                                                                                                 |   | $                               | 1,529   |   |   | $ | (1,041 | ) |
|   Adjustments to reconcile net income (loss) to net cash used in operating activities:                                              |   |                            |    |   |   |   |   |   |
|     Provision for loan losses                                                                                             |   |                            | 385     |   |   |   | 363 |   |
|     Depreciation                                                                                                          |   |                            | 177     |   |   |   | 166 |   |
|     Net accretion of premiums/discounts                                                                                   |   |                            | (154    | ) |   |   | (922 | ) |
|     Net accretion of deferred loan fees and costs                                                                         |   |                            | (30     | ) |   |   | (76 | ) |
|     Impairment charge on investment and mortgage-backed securities                                                        |   |                            | 337     |   |   |   | 2,801 |   |
|     Share-based compensation expense                                                                                      |   |                            | 312     |   |   |   | 144 |   |
|     Real estate owned writedown                                                                                           |   |                            | 18      |   |   |   | 186 |   |
|     Amortization of ESOP                                                                                                  |   |                            | 107     |   |   |   | 115 |   |
|     Income from bank owned life insurance                                                                                 |   |                            | (102    | ) |   |   | (104 | ) |
|     Deferred income tax expense (benefit)                                                                                 |   |                            | 147     |   |   |   | (444 | ) |
|     Excess tax benefit related to stock compensation                                                                      |   |                            | (31     | ) |   |   | (35 | ) |
|     Changes in assets and liabilities which used cash:                                                                    |   |                            |    |   |   |   |   |   |
|       Accrued interest receivable                                                                               |   |                            | 80      |   |   |   | 245 |   |
|       Prepaid expenses and other assets                                                                         |   |                            | (2,244  | ) |   |   | 71 |   |
|       Accrued interest payable                                                                                  |   |                            | (2,089  | ) |   |   | (962 | ) |
|       Accounts payable and accrued expenses                                                                     |   |                            | (685    | ) |   |   | (640 | ) |
|                Net cash used in operating activities               |   |                            | (2,243  | ) |   |   | (133 | ) |
| INVESTING ACTIVITIES:                                                                                                                         |   |                            |    |   |   |   |   |   |
|   Purchase of investment and mortgage-backed securities held to maturity                                                            |   |                            | (15,990 | ) |   |   | (49,994 | ) |
|   Purchase of investment and mortgage-backed securities available for sale                                                          |   |                            | (9,909  | ) |   |   | (8,770 | ) |
|   Loans originated or acquired                                                                                                      |   |                            | (24,224 | ) |   |   | (35,654 | ) |
|   Principal collected on loans                                                                                                      |   |                            | 25,040  |   |   |   | 23,206 |   |
|   Principal payments received on investment and mortgage-backed securities:                                                         |   |                            |    |   |   |   |   |   |
|      held-to-maturity                                                                                                |   |                            | 35,688  |   |   |   | 58,589 |   |
|      available-for-sale                                                                                              |   |                            | 5,586   |   |   |   | 3,899 |   |
|   Acquisition of FHLB stock, net                                                                                                    |   |                            | -       |   |   |   | (925 | ) |
|   Purchases of equipment                                                                                                            |   |                            | (166    | ) |   |   | (8 | ) |
|                Net cash provided by (used in) investing activities |   |                            | 16,025  |   |   |   | (9,657 | ) |
| FINANCING ACTIVITIES:                                                                                                                         |   |                            |    |   |   |   |   |   |
|   Net increase in demand deposits, NOW accounts, and savings accounts                                                               |   |                            | 4,946   |   |   |   | 505 |   |
|   Net (decrease) increase in certificates of deposit                                                                                |   |                            | (1,004  | ) |   |   | 41,928 |   |
|   Net repayment of advances from Federal Home Loan Bank                                                                             |   |                            | (6,022  | ) |   |   | (12,021 | ) |
|   (Decreases) increase in advances from borrowers for taxes and insurance                                                           |   |                            | (28     | ) |   |   | 54 |   |
|   Excess tax benefit related to stock compensation                                                                                  |   |                            | 31      |   |   |   | 35 |   |
|   Acquisition of stock for Recognition and Retention Plan                                                                           |   |                            | -       |   |   |   | (2,465 | ) |
|   Purchase of treasury stock                                                                                                        |   |                            | (2,924  | ) |   |   | - |   |
|   Cash dividend paid                                                                                                                |   |                            | (966    | ) |   |   | (1,063 | ) |
|                Net cash (used in) provided by financing activities |   |                            | (5,967  | ) |   |   | 26,973 |   |
|                                                                                                                                          |   |                            |    |   |   |   |   |   |
| NET INCREASE IN CASH AND CASH EQUIVALENTS                                                                                                     |   |                            | 7,815   |   |   |   | 17,183 |   |
|                                                                                                                                          |   |                            |    |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS—Beginning of period                                                                                           |   |                            | 13,669  |   |   |   | 9,454 |   |
|                                                                                                                                          |   |                            |    |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS—End of period                                                                                                 |   | $                               | 21,484  |   |   | $ | 26,637 |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                                                                       |   |                            |    |   |   |   |   |   |
|   Interest paid on deposits and advances from Federal                                                                               |   |                            |    |   |   |   |   |   |
|      Home Loan Bank                                                                                                  |   | $                               | 6,864   |   |   | $ | 7,850 |   |
|                                                                                                                                          |   |                            |    |   |   |   |   |   |
|   Income taxes paid                                                                                                                 |   | $                               | 1,431   |   |   | $ | 2,782 |   |
|                                                                                                                                          |   |                            |    |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF NONCASH ITEMS:                                                                                                    |   |                            |    |   |   |   |   |   |
|   Real estate acquired in settlement of loans                                                                                       |   | $                               | 1,692   |   |   | $ | - |   |

----

| PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA AND SUBSIDIARIES |
|-----------------------------------------------------------|
|                                                      |
| NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS      |

| 1. | SIGNIFICANT ACCOUNTING POLICIES |
|----|---------------------------------|

----

----

| 2. | EARNINGS PER SHARE |
|----|--------------------|

|   |                                                                         |   | Quarter Ended March 31,                      |      |
|--------|------------------------------------------------------------------------------|--------|----------------------------------------------|-----------|
|   |                                                                         |   |                                         |      |   |   |   |
|   |                                                                         |   | 2010                                         |      |   | 2009 |   |
|   |                                                                         |   | Basic                                        |      |   | Diluted |   |   | Basic |   |   | Diluted |   |
|   |                                                                         |   | (Dollars in Thousands Except Per Share Data) |      |
|   |                                                                         |   |                                         |      |   |   |   |   |   |   |   |   |   |
|   | Net income (loss)                                                            |   | $                                            | 843       |   |   | $ | 843 |   |   | $ | (48 | ) |   | $ | (48 | ) |
|   |                                                                         |   |                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Weighted average shares outstanding                                          |   |                                         | 9,685,542 |   |   |   | 9,685,542 |   |   |   | 10,772,473 |   |   |   | 10,772,473 |   |
|   | Effect of common stock equivalents                                           |   |                                         | -         |   |   |   | 128,338 |   |   |   | - |   |   |   | 49,987 |   |
|   | Adjusted weighted average shares used in earnings per share computation |   | $                                            | 9,685,542 |   |   | $ | 9,813,880 |   |   | $ | 10,772,473 |   |   | $ | 10,822,460 |   |
|   | Income (loss) per share - basic and diluted                                  |   | $                                            | 0.09      |   |   | $ | 0.09 |   |   | $ | (0.004 | ) |   | $ | (0.004 | ) |

----

|                                                                    |   |   | Six Months Ended March 31,                   |   |
|-------------------------------------------------------------------------|--------|--------|----------------------------------------------|--------|
|                                                                    |   |   |                                         |   |   |   |   |
|                                                                    |   |   | 2010                                         |   |   | 2009 |   |
|                                                                    |   |   | Basic                                        |   |   | Diluted |   |   | Basic |   |   | Diluted |   |
|                                                                    |   |   | (Dollars in Thousands Except Per Share Data) |   |
|                                                                    |   |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                       |   | $      | 1,529                                        |   |   | $ | 1,529 |   |   | $ | (1,041 | ) |   | $ | (1,041 | ) |
| Weighted average shares outstanding                                     |   |   | 9,721,744                                    |   |   |   | 9,721,744 |   |   |   | 10,676,401 |   |   |   | 10,676,401 |   |
| Effect of common stock equivalents                                      |   |   | -                                            |   |   |   | 143,599 |   |   |   | - |   |   |   | 24,568 |   |
| Adjusted weighted average shares used in earnings per share computation |   | $      | 9,721,744                                    |   |   | $ | 9,865,343 |   |   | $ | 10,676,401 |   |   | $ | 10,700,969 |   |
| Income (loss) per share - basic and diluted                             |   | $      | 0.16                                         |   |   | $ | 0.15 |   |   | $ | (0.10 | ) |   | $ | (0.10 | ) |

| 3. | INVESTMENT AND MORTGAGE-BACKED SECURITIES |
|----|-------------------------------------------|

|   |                                     |   | March 31, 2010         |    |
|--------|------------------------------------------|--------|------------------------|---------|
|   |                                     |   |                   |    |   | Gross |   |   | Gross |   |   |   |   |
|   |                                     |   | Amortized              |    |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|   |                                     |   | Cost                   |    |   | Gains |   |   | Losses |   |   | Value |   |
|   | Securities held to maturity:             |   | (Dollars in Thousands) |    |
|   |                                     |   |                   |    |   |   |   |   |   |   |   |   |   |
|   | U.S. Government agency obligations       |   | $                      | 109,694 |   |   | $ | 615 |   |   | $ | (582 | ) |   | $ | 109,727 |   |
|   | Municipal obligations                    |   |                   | 914     |   |   |   | 1 |   |   |   | - |   |   |   | 915 |   |
|   | Mortgage-backed securities - U.S.        |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |    Government agencies         |   |                   | 29,842  |   |   |   | 1,483 |   |   |   | - |   |   |   | 31,325 |   |
|   |                                     |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |   Total securities held to maturity |   | $                      | 140,450 |   |   | $ | 2,099 |   |   | $ | (582 | ) |   | $ | 141,967 |   |
|   |                                     |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Securities available for sale:           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | U.S. Government agency obligations       |   | $                      | 4,999   |   |   | $ | 19 |   |   | $ | (13 | ) |   | $ | 5,005 |   |
|   | Mortgage-backed securities - U.S.        |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |    Government agencies         |   |                   | 52,982  |   |   |   | 1,937 |   |   |   | (222 | ) |   |   | 54,697 |   |
|   | Mortgage-backed securities - Non-agency  |   |                   | 9,121   |   |   |   | 70 |   |   |   | (1,945 | ) |   |   | 7,246 |   |
|   |                                     |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total debt securities                    |   |                   | 67,102  |   |   |   | 2,026 |   |   |   | (2,180 | ) |   |   | 66,948 |   |
|   |                                     |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | FHLMC preferred stock                    |   |                   | 16      |   |   |   | 18 |   |   |   | - |   |   |   | 34 |   |
|   |                                     |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total securities available for sale      |   | $                      | 67,118  |   |   | $ | 2,044 |   |   | $ | (2,180 | ) |   | $ | 66,982 |   |

----

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

|   |                                                       |   | Less than 12 months    |   |   | More than 12 months |   |   | Total      |   |
|--------|------------------------------------------------------------|--------|------------------------|--------|--------|---------------------|--------|--------|------------|--------|
|   |                                                       |   | Gross                  |   |   |                |   |   | Gross      |   |   |   |   |   | Gross |   |   |   |   |
|   |                                                       |   | Unrealized             |   |   | Fair                |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |
|   |                                                       |   | Losses                 |   |   | Value               |   |   | Losses     |   |   | Value |   |   | Losses |   |   | Value |   |
|   |                                                       |   | (Dollars in Thousands) |   |
|   | Securities Held to Maturity:                               |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |
|   | U.S. Government agency obligations                         |   | $                      | (476   | )      |                | $      | 42,473 |       |   | $ | (106 | ) |   | $ | 9,663 |   |   | $ | (582 | ) |   | $ | 52,136 |   |
|   |                                                       |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total securities held to maturity                          |   |                   | (476   | )      |                |   | 42,473 |       |   |   | - |   |   |   | - |   |   |   | (582 | ) |   |   | 52,136 |   |
|   |                                                       |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Securities Available for Sale:                             |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | U.S. Government agency obligations                         |   |                   | -      |   |                |   | -      |       |   |   | (13 | ) |   |   | 1,987 |   |   |   | (13 | ) |   |   | 1,987 |   |
|   | Mortgage-backed securities - U.S. Government agencies |   |                   | (214   | )      |                |   | 10,823 |       |   |   | (8 | ) |   |   | 857 |   |   |   | (222 | ) |   |   | 11,680 |   |
|   | Mortgage-backed securities - Non-agency                    |   |                   | (603   | )      |                |   | 772    |       |   |   | (1,342 | ) |   |   | 4,399 |   |   |   | (1,945 | ) |   |   | 5,171 |   |
|   |                                                       |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total securities available for sale                        |   |                   | (817   | )      |                |   | 11,595 |       |   |   | (1,363 | ) |   |   | 7,243 |   |   |   | (2,180 | ) |   |   | 18,838 |   |
|   |                                                       |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total                                                      |   | $                      | (1,293 | )      |                | $      | 54,068 |       |   | $ | (1,363 | ) |   | $ | 7,243 |   |   | $ | (2,762 | ) |   | $ | 70,974 |   |

----

|   |                                                  |   | Less than 12 months    |   |   | More than 12 months |   |   | Total      |   |
|--------|-------------------------------------------------------|--------|------------------------|--------|--------|---------------------|--------|--------|------------|--------|
|   |                                                  |   | Gross                  |   |   |                |   |   | Gross      |   |   |   |   |   | Gross |   |   |   |   |
|   |                                                  |   | Unrealized             |   |   | Fair                |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |
|   |                                                  |   | Losses                 |   |   | Value               |   |   | Losses     |   |   | Value |   |   | Losses |   |   | Value |   |
|   |                                                  |   | (Dollars in Thousands) |   |
|   | Securities Held to Maturity:                          |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |
|   | U.S. Government and agency obligations                |   | $                      | (643   | )      |                | $      | 52,854 |       |   | $ | (2 | ) |   | $ | 1,993 |   |   | $ | (645 | ) |   | $ | 54,847 |   |
|   |                                                  |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total securities held to maturity                     |   |                   | (643   | )      |                |   | 52,854 |       |   |   | (2 | ) |   |   | 1,993 |   |   |   | (645 | ) |   |   | 54,847 |   |
|   |                                                  |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Securities Available for Sale:                        |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | U.S. Government and agency obligations                |   |                   | -      |   |                |   | -      |       |   |   | (18 | ) |   |   | 1,982 |   |   |   | (18 | ) |   |   | 1,982 |   |
|   | Mortgage-backed securities - U.S. Government agencies |   |                   | (48    | )      |                |   | 2,886  |       |   |   | (9 | ) |   |   | 400 |   |   |   | (57 | ) |   |   | 3,286 |   |
|   | Mortgage-backed securities - Non-agency               |   |                   | (1,310 | )      |                |   | 2,757  |       |   |   | (1,254 | ) |   |   | 4,381 |   |   |   | (2,564 | ) |   |   | 7,138 |   |
|   |                                                  |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total securities available for sale                   |   |                   | (1,358 | )      |                |   | 5,643  |       |   |   | (1,281 | ) |   |   | 6,763 |   |   |   | (2,639 | ) |   |   | 12,406 |   |
|   |                                                  |   |                   |   |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total                                                 |   | $                      | (2,001 | )      |                | $      | 58,497 |       |   | $ | (1,283 | ) |   | $ | 8,756 |   |   | $ | (3,284 | ) |   | $ | 67,253 |   |

----

|   |                                                                                                                                |   | (Dollars in thousands) |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|   | Credit component of OTTI as of October 1, 2009                                                                                      |   | $                      | 2,859  |   |
|   |                                                                                                                                |   |                   |   |   |
|   | Additions for credit-related OTTI charges on previously unimpaired securities                                                       |   |                   | 7      |   |
|   |                                                                                                                                |   |                   |   |   |
|   | Reduction for securities liquidated                                                                                                 |   |                   | (106   | ) |
|   |                                                                                                                                |   |                   |   |   |
|   | Additional increases as a result of impairment charges recognized on investments for which an OTTI charge was previously recognized |   |                   | 330    |   |
|   |                                                                                                                                |   |                   |   |   |
|   | Credit component of OTTI as of March 31, 2010                                                                                       |   | $                      | 3,090  |   |

----

|   |                             |   | March 31, 2010         |    |
|--------|----------------------------------|--------|------------------------|---------|
|   |                             |   | Held to Maturity       |    |   | Available for Sale |   |
|   |                             |   |                   |    |   |   |   |   |   |   |   |   |   |
|   |                             |   | Amortized              |    |   | Fair |   |   | Amortized |   |   | Fair |   |
|   |                             |   | Cost                   |    |   | Value |   |   | Cost |   |   | Value |   |
|   |                             |   | (Dollars in thousands) |    |
|   | Due within one year              |   | $                      | 1,000   |   |   | $ | 1,010 |   |   | $ | - |   |   | $ | - |   |
|   | Due after one through five years |   |                   | 440     |   |   |   | 440 |   |   |   | - |   |   |   | - |   |
|   | Due after five through ten years |   |                   | 35,734  |   |   |   | 35,881 |   |   |   | 2,999 |   |   |   | 3,018 |   |
|   | Due after ten years              |   |                   | 73,434  |   |   |   | 73,311 |   |   |   | 2,000 |   |   |   | 1,987 |   |
|   |                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total                            |   | $                      | 110,608 |   |   | $ | 110,642 |   |   | $ | 4,999 |   |   | $ | 5,005 |   |

----

| 4. | LOANS RECEIVABLE |
|----|------------------|

|   |                                                                                 |   | March 31,              |    |   | September 30, |   |
|--------|--------------------------------------------------------------------------------------|--------|------------------------|---------|--------|---------------|--------|
|   |                                                                                 |   | 2010                   |    |   | 2009          |   |
|   |                                                                                 |   | (Dollars in Thousands) |    |
|   |   One-to-four family residential                                                |   | $                      | 197,088 |   |          | $      | 201,396 |   |
|   |   Multi-family residential                                                      |   |                   | 4,117   |   |          |   | 4,178 |   |
|   |   Commercial real estate                                                        |   |                   | 20,183  |   |          |   | 19,907 |   |
|   |   Construction and land development                                             |   |                   | 37,878  |   |          |   | 36,764 |   |
|   |   Commercial business                                                           |   |                   | 2,383   |   |          |   | 2,232 |   |
|   |   Consumer                                                                      |   |                   | 518     |   |          |   | 586 |   |
|   |                                                                                 |   |                   |    |   |          |   |   |   |
|   |              Total loans |   |                   | 262,167 |   |          |   | 265,063 |   |
|   |                                                                                 |   |                   |    |   |          |   |   |   |
|   |     Undisbursed portion of loans-in-process                           |   |                   | (6,518  | )      |          |   | (6,281 | ) |
|   |     Deferred loan costs, net                                          |   |                   | 608     |   |          |   | 644 |   |
|   |     Allowance for loan losses                                         |   |                   | (2,426  | )      |          |   | (2,732 | ) |
|   |                                                                                 |   |                   |    |   |          |   |   |   |
|   |   Net                                                                           |   | $                      | 253,831 |   |          | $      | 256,694 |   |

|   |                                      |   | Six Months Ended March 31, |   |
|--------|-------------------------------------------|--------|----------------------------|--------|
|   |                                      |   | 2010                       |   |   | 2009 |   |
|   |                                      |   | (Dollars in Thousands)     |   |
|   |                                      |   |                       |   |   |   |   |
|   |    Balance, beginning of period |   | $                          | 2,732  |   |   | $ | 1,591 |   |
|   |    Provision for loan losses    |   |                       | 385    |   |   |   | 363 |   |
|   |    Charge-offs                  |   |                       | (691   | ) |   |   | (217 | ) |
|   |    Recoveries                   |   |                       | -      |   |   |   | - |   |
|   |                                      |   |                       |   |   |   |   |   |   |
|   |    Balance, end of period       |   | $                          | 2,426  |   |   | $ | 1,737 |   |

----

|   |                                           |   | March 31,              |   |   | September 30, |   |
|--------|------------------------------------------------|--------|------------------------|--------|--------|---------------|--------|
|   |                                           |   | 2010                   |   |   | 2009          |   |
|   |                                           |   | (Dollars in thousands) |   |
|   |  Impaired loans with related allowance    |   | $                      | 1,014  |   |          | $      | 1,661 |   |
|   |  Impaired loans without related allowance |   | $                      | -      |   |          | $      | - |   |
|   |  Related allowance for loan losses        |   | $                      | 172    |   |          | $      | 873 |   |

|   |                                               |   | For the Six Months Ended March 31, |   |
|--------|----------------------------------------------------|--------|------------------------------------|--------|
|   |                                               |   | 2010                               |   |   | 2009 |   |
|   |                                               |   | (Dollars in thousands)             |   |
|   |  Average impaired loans                       |   | $                                  | 1,340  |   |   | $ | 4,698 |   |
|   |  Interest income recognized on impaired loans |   | $                                  | 15     |   |   | $ | 54 |   |

| 5. | DEPOSITS |
|----|----------|

|   |                                                |   | March 31,              |    |   | September 30, |   |
|--------|-----------------------------------------------------|--------|------------------------|---------|--------|---------------|--------|
|   |                                                |   | 2010                   |    |   | 2009          |   |
|   |                                                |   |                   |    |   |          |   |   |   |   |   |   |   |
|   |                                                |   | Amount                 |    |   | Percent       |   |   | Amount |   |   | Percent |   |
|   |                                                |   | (Dollars in Thousands) |    |
|   |  Money market deposit accounts                 |   | $                      | 76,056  |   |          |   | 17.4 | % |   | $ | 75,349 |   |   |   | 17.4 | % |
|   |  NOW accounts                                  |   |                   | 30,761  |   |          |   | 7.1 |   |   |   | 29,869 |   |   |   | 6.9 |   |
|   |  Passbook, club and statement savings          |   |                   | 70,316  |   |          |   | 16.1 |   |   |   | 66,968 |   |   |   | 15.5 |   |
|   |  Certificates maturing in six months or less   |   |                   | 77,215  |   |          |   | 17.7 |   |   |   | 120,636 |   |   |   | 27.9 |   |
|   |  Certificates maturing in more than six months |   |                   | 181,968 |   |          |   | 41.7 |   |   |   | 139,552 |   |   |   | 32.3 |   |
|   |                                                |   |                   |    |   |          |   |   |   |   |   |   |   |   |   |   |   |
|   |     Total                            |   | $                      | 436,316 |   |          |   | 100.0 | % |   | $ | 432,374 |   |   |   | 100.0 | % |

|   | Certificates of $100,000 and over totaled $94.0 million as of March 31, 2010 and $91.9 million as of September 30, 2009. |
|--------|--------------------------------------------------------------------------------------------------------------------------|

----

| 6. | INCOME TAXES |
|----|--------------|

|   |                                                         |   |                   |   |   |          |   |
|--------|--------------------------------------------------------------|--------|------------------------|--------|--------|---------------|--------|
|   |                                                         |   | March 31,              |   |   | September 30, |   |
|   |                                                         |   | 2010                   |   |   | 2009          |   |
|   | Deferred tax assets:                                         |   | (Dollars in thousands) |   |
|   |   Unrealized loss on available for sale securities |   | $                      | 46     |   |          | $      | 201 |   |
|   |   Deposit premium                                  |   |                   | 143    |   |          |   | 167 |   |
|   |   Allowance for loan losses                        |   |                   | 871    |   |          |   | 974 |   |
|   |   Real estate owned expenses                       |   |                   | 494    |   |          |   | 469 |   |
|   |   Nonaccrual interest                              |   |                   | -      |   |          |   | 15 |   |
|   |   Accrued vacation                                 |   |                   | 51     |   |          |   | 44 |   |
|   |   Capital loss carryforward                        |   |                   | 1,873  |   |          |   | 1,873 |   |
|   |   Impairment loss                                  |   |                   | 1,477  |   |          |   | 1,363 |   |
|   |   Split dollar life insurance                      |   |                   | 81     |   |          |   | 84 |   |
|   |   Post-retirement benefits                         |   |                   | 151    |   |          |   | 154 |   |
|   |   Employee benefit plans                           |   |                   | 206    |   |          |   | 246 |   |
|   |                                                         |   |                   |   |   |          |   |   |   |
|   |    Total deferred tax assets                  |   |                   | 5,393  |   |          |   | 5,590 |   |
|   |    Valuation allowance                        |   |                   | (2,661 | )      |          |   | (2,551 | ) |
|   | Total deferred tax assets, net of valuation allowance        |   |                   | 2,732  |   |          |   | 3,039 |   |
|   |                                                         |   |                   |   |   |          |   |   |   |
|   | Deferred tax liabilities:                                    |   |                   |   |   |          |   |   |   |
|   |   Property                                         |   |                   | 483    |   |          |   | 480 |   |
|   |   Mortgage servicing rights                        |   |                   | 2      |   |          |   | 4 |   |
|   |   Deferred loan fees                               |   |                   | 206    |   |          |   | 212 |   |
|   |                                                         |   |                   |   |   |          |   |   |   |
|   | Total deferred tax liabilities                               |   |                   | 691    |   |          |   | 696 |   |
|   |                                                         |   |                   |   |   |          |   |   |   |
|   | Net deferred tax asset                                       |   | $                      | 2,041  |   |          | $      | 2,343 |   |

----

| 7. |  STOCK COMPENSATION PLANS |
|----|--------------------------------|

|   |                                               |   |                           |    |   |                                 |   |   |             |   |   |                                 |   |   |   |   |   |
|--------|----------------------------------------------------|--------|--------------------------------|---------|--------|--------------------------------------|--------|--------|------------------|--------|--------|--------------------------------------|--------|--------|--------|--------|--------|
|   |                                               |   | Six Months EndedMarch 31, 2010 |    |   | Six Months EndedMarch 31, 2009       |   |
|   |                                               |   | Number of Shares               |    |   | Weighted AverageGrant Date FairValue |   |   | Number of Shares |   |   | WeightedAverage GrantDate Fair Value |   |
|   | Nonvested stock awards at beginning of fiscal year |   |                           | 173,228 |   |                                 | $      | 11.17  |             |   |   | -                                    |   |   | $      | -      |   |
|   |    Issued                           |   |                           | 5,654   |   |                                 |   | 9.53   |             |   |   | 173,228                              |   |   |   | 11.17  |   |
|   |    Vested                           |   |                           | (34,646 | )      |                                 |   | 11.17  |             |   |   | -                                    |   |   |   | -      |   |
|   | Nonvested stock awards at the end of the period    |   |                           | 144,236 |   |                                 | $      | 11.11  |             |   |   | 173,228                              |   |   | $      | 11.17  |   |

----

|   |                                    |   |  Six Months Ended March 31, 2010 |    |
|--------|-----------------------------------------|--------|--------------------------------------------|---------|
|   |                                    |   | Number of Shares                           |    |   | Weighted AverageExercise Price |   |
|   |                                    |   |                                       |    |   |   |   |
|   | Outstanding at beginning of fiscal year |   |                                       | 428,266 |   |   | $ | 11.17 |   |
|   | Granted                                 |   |                                       | 14,134  |   |   |   | 9.53 |   |
|   | Exercised                               |   |                                       | -       |   |   |   | - |   |
|   | Forfeited                               |   |                                       | -       |   |   |   | - |   |
|   | Outstanding at the end of the period    |   |                                       | 442,400 |   |   | $ | 11.12 |   |
|   | Exercisable at the end of the period    |   |                                       | 85,653  |   |   | $ | 11.17 |   |

|   |                     |   | March 31, 2010 |
|--------|--------------------------|--------|----------------|
|   | Dividend yield           |   |           | 2.10% |
|   | Expected volatility      |   |           | 28.95% |
|   | Risk-free interest rate  |   |           | 3.10% |
|   | Expected life of options |   | 6.5 years      |

| 8. | COMMITMENTS AND CONTINGENT LIABILITIES |
|----|----------------------------------------|

----

| 9. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
|----|-------------------------------------|

|   |                                                         |   | March 31,              |    |   | September 30, |   |
|--------|--------------------------------------------------------------|--------|------------------------|---------|--------|---------------|--------|
|   |                                                         |   | 2010                   |    |   | 2009          |   |
|   |                                                         |   |                   |    |   |          |   |   |   |   |   |   |   |
|   |                                                         |   | Carrying               |    |   | Fair          |   |   | Carrying |   |   | Fair |   |
|   |                                                         |   | Amount                 |    |   | Value         |   |   | Amount |   |   | Value |   |
|   |                                                         |   | (Dollars in thousands) |    |
|   | Assets:                                                      |   |                   |    |   |          |   |   |   |   |   |   |   |
|   |   Cash and cash equivalents                        |   | $                      | 21,484  |   |          | $      | 21,484 |   |   | $ | 13,669 |   |   | $ | 13,669 |   |
|   |   Investment and mortgage-backed                   |   |                   |    |   |          |   |   |   |   |   |   |   |   |   |   |   |
|   |     securities held to maturity          |   |                   | 140,450 |   |          |   | 141,967 |   |   |   | 160,126 |   |   |   | 161,968 |   |
|   |   Investment securities and mortgage-              |   |                   |    |   |          |   |   |   |   |   |   |   |   |   |   |   |
|   |     backed securities available for sale |   |                   | 66,982  |   |          |   | 66,982 |   |   |   | 62,407 |   |   |   | 62,407 |   |
|   |   Loans receivable, net                            |   |                   | 253,831 |   |          |   | 259,555 |   |   |   | 256,694 |   |   |   | 262,000 |   |
|   |   Accrued interest receivable:                     |   |                   |    |   |          |   |   |   |   |   |   |   |   |   |   |   |
|   |      Loans receivable               |   |                   | 1,474   |   |          |   | 1,474 |   |   |   | 1,419 |   |   |   | 1,419 |   |
|   |      Mortgage-backed securities     |   |                   | 368     |   |          |   | 368 |   |   |   | 390 |   |   |   | 390 |   |
|   |      Investment securities          |   |                   | 1,383   |   |          |   | 1,383 |   |   |   | 1,496 |   |   |   | 1,496 |   |
|   |   Federal Home Loan Bank stock                     |   |                   | 3,545   |   |          |   | 3,545 |   |   |   | 3,545 |   |   |   | 3,545 |   |
|   |                                                         |   |                   |    |   |          |   |   |   |   |   |   |   |   |   |   |   |
|   | Liabilities:                                                 |   |                   |    |   |          |   |   |   |   |   |   |   |   |   |   |   |
|   |   NOW accounts                                     |   |                   | 30,761  |   |          |   | 30,761 |   |   |   | 29,869 |   |   |   | 29,869 |   |
|   |   Money market deposit accounts                    |   |                   | 76,056  |   |          |   | 76,056 |   |   |   | 75,349 |   |   |   | 75,349 |   |
|   |   Passbook, club and statement                     |   |                   |    |   |          |   |   |   |   |   |   |   |   |   |   |   |
|   |     savings accounts                     |   |                   | 70,316  |   |          |   | 70,316 |   |   |   | 66,968 |   |   |   | 66,968 |   |
|   |   Certificates of deposit                          |   |                   | 259,183 |   |          |   | 265,149 |   |   |   | 260,188 |   |   |   | 266,192 |   |
|   |   Advances from Federal Home                       |   |                   |    |   |          |   |   |   |   |   |   |   |   |   |   |   |
|   |     Loan Bank                            |   |                   | 13,637  |   |          |   | 13,935 |   |   |   | 19,659 |   |   |   | 20,294 |   |
|   |   Accrued interest payable                         |   |                   | 1,374   |   |          |   | 1,374 |   |   |   | 3,463 |   |   |   | 3,463 |   |

----

| 10. | FAIR VALUE MEASUREMENT |
|-----|------------------------|

|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Level 1 | Quoted prices in active markets for identical assets or liabilities.                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.                                                                                                                                                 |
|   | Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.  |

----

|   |                                                                                       |   | Category Used for Fair Value Measurement |   |
|--------|--------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|
|   |                                                                                       |   | Level 1                                  |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|   |                                                                                       |   | (Dollars in Thousands)                   |   |
|   |                                                                                       |   |                                     |   |   |   |   |   |   |   |   |   |   |
|   |     Assets:                                                                 |   |                                     |   |   |   |   |   |   |   |   |   |   |
|   |     Securities available for sale:                                          |   |                                     |   |   |   |   |   |   |   |   |   |   |
|   |       U.S. Government agency obligations                          |   | $                                        | -      |   |   | $ | 5,005 |   |   | $ | - |   |   | $ | 5,005 |   |
|   |       Mortgage-backed securities - U.S. Government agencies       |   |                                     | -      |   |   |   | 54,697 |   |   |   | - |   |   | $ | 54,697 |   |
|   |       Mortgage-backed securities - Non-agency                     |   |                                     | -      |   |   |   | 7,169 |   |   |   | 77 |   |   |   | 7,246 |   |
|   |       FNMA and FHLMC preferred stock                              |   |                                     | 34     |   |   |   | - |   |   |   | - |   |   |   | 34 |   |
|   |                Total |   | $                                        | 34     |   |   | $ | 66,871 |   |   | $ | 77 |   |   | $ | 66,982 |   |

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

----

|                                                                                                         |   | Measurements Using Significant Unobservable Inputs (Level 3) |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|
|                                                                                                         |   | Non-agency mortgage-backed securities                        |   |
|                                                                                                         |   | (Dollars in Thousands)                                       |   |
|                                                                                                         |   |                                                         |   |
| Balance, January 1, 2010:                                                                                    |   | $                                                            | 78     |   |
|      Total losses, realized/unrealized                                              |   |                                                         |   |   |
|           Included in earnings                             |   |                                                         | (5     | ) |
|           Included in accumulated other comprehensive loss |   |                                                         | 10     |   |
|      Purchases, maturities, prepayments and calls, net                              |   |                                                         | (6     | ) |
|      Transfers from Level 3, net                                                    |   |                                                         | -      |   |
| Balance, March 31, 2010:                                                                                     |   | $                                                            | 77     |   |

|                                                                                                         |   | Measurements Using Significant Unobservable Inputs (Level 3) |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|
|                                                                                                         |   | Non-agency mortgage-backed securities                        |   |
|                                                                                                         |   | (Dollars in Thousands)                                       |   |
|                                                                                                         |   |                                                         |   |
| Balance, October 1, 2009:                                                                                    |   | $                                                            | 82     |   |
|      Total losses, realized/unrealized                                              |   |                                                         |   |   |
|           Included in earnings                             |   |                                                         | (6     | ) |
|           Included in accumulated other comprehensive loss |   |                                                         | 16     |   |
|      Purchases, maturities, prepayments and calls, net                              |   |                                                         | (15    | ) |
|      Transfers from Level 3, net                                                    |   |                                                         | -      |   |
| Balance, March 31, 2010:                                                                                     |   | $                                                            | 77     |   |

----

|              |   | At March 31, 2010 |   |   |    |   |
|-------------------|--------|-------------------|--------|--------|---------|--------|
|              |   | Level 1           |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Impaired loans    |   | $                 | -      |   |    | $      | 842 |   |   | $ | - |   |   | $ | 842 |   |
| Real estate owned |   |              | -      |   |    |   | 5,297 |   |   |   | - |   |   | $ | 5,297 |   |
| Total             |   | $                 | -      |   |    | $      | 6,139 |   |   | $ | - |   |   | $ | 6,139 |   |

|              |   | At September 30, 2009 |   |   |    |   |
|-------------------|--------|-----------------------|--------|--------|---------|--------|
|              |   | Level 1               |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Impaired loans    |   | $                     | -      |   |    | $      | 788 |   |   | $ | - |   |   | $ | 788 |   |
| Real estate owned |   |                  | -      |   |    |   | 3,622 |   |   |   | - |   |   | $ | 3,622 |   |
| Total             |   | $                     | -      |   |    | $      | 4,410 |   |   | $ | - |   |   | $ | 4,410 |   |

----

|   | ● | Levels of past due, classified and non-accrual loans, troubled debt restructurings and modifications                                                                                                      |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ● | Nature and volume of loans                                                                                                                                                                                |
|   | ● | Changes in lending policies and procedures, underwriting standards, collections, charge-offs and recoveries and for commercial loans, the level of loans being approved with exceptions to lending policy |
|   | ● | Experience, ability and depth of management and staff                                                                                                                                                     |
|   | ● | National and local economic and business conditions, including various market segments                                                                                                                    |
|   | ● | Quality of the Company’s loan review system and degree of Board oversight                                                                                                                           |
|   | ● | Concentrations of credit and changes in levels of such concentrations                                                                                                                                     |
|   | ● | Effect of external factors on the level of estimated credit losses in the current portfolio                                                                                                               |

----

----

----

----

----

|                                                                                     |   |                        |    |   |     |   |   |       |   |   |    |   |   |     |    |   |       |   |
|------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|----------|--------|--------|------------|--------|--------|---------|--------|--------|----------|---------|--------|------------|--------|
|                                                                                     |   | Three MonthsEnded March 31, |    |
|                                                                                     |   | 2010                        |    |   | 2009     |   |
|                                                                                     |   | Average                     |    |   |     |   |   | Average    |   |   | Average |   |   |     |    |   | Average    |   |
|                                                                                     |   | Balance                     |    |   | Interest |   |   | Yield/Rate |   |   | Balance |   |   | Interest |    |   | Yield/Rate |   |
|                                                                                     |   |                        |    |   |     |   |   |       |   |   |    |   |   |     |    |   |       |   |
|                                                                                     |   | (Dollars in Thousands)      |    |
|                                                                                     |   |                        |    |   |     |   |   |       |   |   |    |   |   |     |    |   |       |   |
| Interest-earning assets:                                                                 |   |                        |    |   |     |   |   |       |   |   |    |   |   |     |    |   |       |   |
| Investment securities                                                                    |   | $                           | 120,060 |   |     | $      | 1,401  |       |   |   | 4.67    | %      |   | $        | 117,374 |   |       | $      | 1,466 |   |   |   | 5.00 | % |
| Mortgage-backed securities (1)                                                           |   |                        | 93,606  |   |     |   | 1,188  |       |   |   | 5.08    |   |   |     | 92,376  |   |       |   | 1,562 |   |   |   | 6.76 |   |
| Loans receivable(2)                                                                      |   |                        | 255,341 |   |     |   | 3,719  |       |   |   | 5.83    |   |   |     | 254,793 |   |       |   | 3,863 |   |   |   | 6.06 |   |
| Other interest-earning assets (3)                                                        |   |                        | 17,280  |   |     |   | 3      |       |   |   | 0.07    |   |   |     | 17,709  |   |       |   | 14 |   |   |   | 0.32 |   |
|    Total interest-earning assets                                          |   |                        | 486,287 |   |     |   | 6,311  |       |   |   | 5.19    |   |   |     | 482,252 |   |       |   | 6,905 |   |   |   | 5.73 |   |
| Cash and non-interest-bearing balances                                                   |   |                        | 1,834   |   |     |   |   |       |   |   |    |   |   |     | 6,308   |   |       |   |   |   |   |   |   |   |
| Other non-interest-earning assets                                                        |   |                        | 20,988  |   |     |   |   |       |   |   |    |   |   |     | 13,668  |   |       |   |   |   |   |   |   |   |
|       Total assets                                         |   | $                           | 509,109 |   |     |   |   |       |   |   |    |   |   | $        | 502,228 |   |       |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                            |   |                        |    |   |     |   |   |       |   |   |    |   |   |     |    |   |       |   |   |   |   |   |   |   |
| Savings accounts                                                                         |   | $                           | 69,708  |   |     |   | 331    |       |   |   | 1.90    |   |   | $        | 64,722  |   |       |   | 431 |   |   |   | 2.66 |   |
| Money market deposit and NOW accounts                                                    |   |                        | 106,688 |   |     |   | 285    |       |   |   | 1.07    |   |   |     | 93,806  |   |       |   | 536 |   |   |   | 2.29 |   |
| Certificates of deposit                                                                  |   |                        | 248,017 |   |     |   | 1,468  |       |   |   | 2.37    |   |   |     | 243,819 |   |       |   | 2,233 |   |   |   | 3.66 |   |
|    Total deposits                                                         |   |                        | 424,413 |   |     |   | 2,084  |       |   |   | 1.96    |   |   |     | 402,347 |   |       |   | 3,200 |   |   |   | 3.18 |   |
| Advances from Federal Home Loan Bank                                                     |   |                        | 23,196  |   |     |   | 200    |       |   |   | 3.45    |   |   |     | 26,573  |   |       |   | 224 |   |   |   | 3.37 |   |
| Advances from borrowers for taxes and insurance                                          |   |                        | 1,761   |   |     |   | 2      |       |   |   | 0.45    |   |   |     | 1,950   |   |       |   | 2 |   |   |   | 0.41 |   |
|    Total interest-bearing liabilities                                     |   |                        | 449,370 |   |     |   | 2,286  |       |   |   | 2.03    |   |   |     | 430,870 |   |       |   | 3,426 |   |   |   | 3.18 |   |
| Non-interest-bearing liabilities:                                                        |   |                        |    |   |     |   |   |       |   |   |    |   |   |     |    |   |       |   |   |   |   |   |   |   |
| Non-interest-bearing demand accounts                                                     |   |                        | 1,148   |   |     |   |   |       |   |   |    |   |   |     | 3,774   |   |       |   |   |   |   |   |   |   |
| Other liabilities                                                                        |   |                        | 2,194   |   |     |   |   |       |   |   |    |   |   |     | 2,278   |   |       |   |   |   |   |   |   |   |
| Total liabilities                                                                        |   |                        | 452,712 |   |     |   |   |       |   |   |    |   |   |     | 436,922 |   |       |   |   |   |   |   |   |   |
| Stockholders’ equity                                                               |   |                        | 56,397  |   |     |   |   |       |   |   |    |   |   |     | 65,306  |   |       |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                                         |   | $                           | 509,109 |   |     |   |   |       |   |   |    |   |   | $        | 502,228 |   |       |   |   |   |   |   |   |   |
| Net interest-earning assets                                                              |   | $                           | 36,917  |   |     |   |   |       |   |   |    |   |   | $        | 51,382  |   |       |   |   |   |   |   |   |   |
| Net interest income; interest rate spread                                                |   |                        |    |   |     | $      | 4,025  |       |   |   | 3.16    | %      |   |     |    |   |       | $      | 3,479 |   |   |   | 2.55 | % |
| Net interest margin(4)                                                                   |   |                        |    |   |     |   |   |       |   |   | 3.31    | %      |   |     |    |   |       |   |   |   |   |   | 2.89 | % |
|                                                                                     |   |                        |    |   |     |   |   |       |   |   |    |   |   |     |    |   |       |   |   |   |   |   |   |   |
| Average interest-earning assets to average                                               |   |                        |    |   |     |   |   |       |   |   |    |   |   |     |    |   |       |   |   |   |   |   |   |   |
|           interest-bearing liabilities |   |                        |    |   |     |   | 108.22 | %          |   |   |    |   |   |     |    |   |       |   | 111.93 | % |   |   |   |   |

----

| (1) | The decrease in yield of the Company’s mortgage-backed securities portfolio is primarily a result of changes in portfolio composition as well as in estimate of prepayment speed assumptions. The Company employs the effective yield method of accounting, which requires retrospective adjustments to the yield on the Company’s assets, which in turn directly affects earnings. The Company estimates yield at the time of purchase of each asset. To the extent prepayment speeds assumptions differ from Company’s estimates at the time of purchase, the Company is required to adjust the yield on that asset as well as the amortization of premium or discount taken to date on the asset. This cumulative “true up” of the amortization was taken through earnings in the 2009 period. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2)    | Includes non-accrual loans.  Calculated net of unamortized deferred fees, undisbursed portion of loans-in-process and allowance for loan losses. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                       |
| (3)    | Yield substantially decreased due to declining overnight investment rates during the 2010 period as compared to the 2009 period.                           |
|   |                                                                                                                                                       |
| (4)    | Equals net interest income divided by average interest-earning assets.                                                                                     |

|                                                                    |   | Six MonthsEnded March 31, |    |
|-------------------------------------------------------------------------|--------|---------------------------|---------|
|                                                                    |   | 2010                      |    |   | 2009 |   |
|                                                                    |   | AverageBalance            |    |   | Interest |   |   | AverageYield/Rate |   |   | AverageBalance |   |   | Interest |   |   | AverageYield/Rate |   |
|                                                                    |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   | (Dollars in Thousands)    |    |
|                                                                    |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                                |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities                                                   |   | $                         | 123,298 |   |   | $ | 2,891 |   |   |   | 4.69 | % |   | $ | 124,058 |   |   | $ | 3,194 |   |   |   | 5.15 | % |
| Mortgage-backed securities (1)                                          |   |                      | 94,139  |   |   |   | 2,411 |   |   |   | 5.12 |   |   |   | 92,201 |   |   |   | 3,318 |   |   |   | 7.20 |   |
| Loans receivable(2)                                                     |   |                      | 255,710 |   |   |   | 7,470 |   |   |   | 5.84 |   |   |   | 252,179 |   |   |   | 7,590 |   |   |   | 6.02 |   |
| Other interest-earning assets (3)                                       |   |                      | 11,190  |   |   |   | 5 |   |   |   | 0.09 |   |   |   | 12,726 |   |   |   | 30 |   |   |   | 0.47 |   |
| Total interest-earning assets                                           |   |                      | 484,337 |   |   |   | 12,777 |   |   |   | 5.28 |   |   |   | 481,164 |   |   |   | 14,132 |   |   |   | 5.87 |   |
| Cash and non-interest-bearing balances                                  |   |                      | 2,922   |   |   |   |   |   |   |   |   |   |   |   | 4,923 |   |   |   |   |   |   |   |   |   |
| Other non-interest-earning assets                                       |   |                      | 19,583  |   |   |   |   |   |   |   |   |   |   |   | 13,838 |   |   |   |   |   |   |   |   |   |
| Total assets                                                            |   | $                         | 506,842 |   |   |   |   |   |   |   |   |   |   | $ | 499,925 |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                           |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                        |   | $                         | 68,853  |   |   |   | 657 |   |   |   | 1.91 |   |   | $ | 64,865 |   |   |   | 873 |   |   |   | 2.69 |   |
| Money market deposit and NOW accounts                                   |   |                      | 106,575 |   |   |   | 578 |   |   |   | 1.08 |   |   |   | 93,136 |   |   |   | 1,142 |   |   |   | 2.45 |   |
| Certificates of deposit                                                 |   |                      | 247,108 |   |   |   | 3,119 |   |   |   | 2.52 |   |   |   | 232,542 |   |   |   | 4,342 |   |   |   | 3.73 |   |
| Total deposits                                                          |   |                      | 422,536 |   |   |   | 4,354 |   |   |   | 2.06 |   |   |   | 390,543 |   |   |   | 6,357 |   |   |   | 3.26 |   |
| Advances from Federal Home Loan Bank                                    |   |                      | 21,620  |   |   |   | 417 |   |   |   | 3.86 |   |   |   | 34,819 |   |   |   | 527 |   |   |   | 3.03 |   |
| Advances from borrowers for taxes and insurance                         |   |                      | 1,619   |   |   |   | 3 |   |   |   | 0.37 |   |   |   | 1,770 |   |   |   | 4 |   |   |   | 0.45 |   |
| Total interest-bearing liabilities                                      |   |                      | 445,775 |   |   |   | 4,774 |   |   |   | 2.14 |   |   |   | 427,132 |   |   |   | 6,888 |   |   |   | 3.23 |   |
| Non-interest-bearing liabilities:                                       |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing demand accounts                                    |   |                      | 2,098   |   |   |   |   |   |   |   |   |   |   |   | 3,895 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                                       |   |                      | 4,820   |   |   |   |   |   |   |   |   |   |   |   | 2,591 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                       |   |                      | 452,693 |   |   |   |   |   |   |   |   |   |   |   | 433,618 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                              |   |                      | 56,149  |   |   |   |   |   |   |   |   |   |   |   | 66,307 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                        |   | $                         | 508,842 |   |   |   |   |   |   |   |   |   |   | $ | 499,925 |   |   |   |   |   |   |   |   |   |
| Net interest-earning assets                                             |   | $                         | 38,562  |   |   |   |   |   |   |   |   |   |   | $ | 54,032 |   |   |   |   |   |   |   |   |   |
| Net interest income; interest rate spread                               |   |                      |    |   |   | $ | 8,003 |   |   |   | 3.13 | % |   |   |   |   |   | $ | 7,244 |   |   |   | 2.65 | % |
| Net interest margin(4)                                                  |   |                      |    |   |   |   |   |   |   |   | 3.30 | % |   |   |   |   |   |   |   |   |   |   | 3.01 | % |
|                                                                    |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average interest-earning assets to average interest-bearing liabilities |   |                      |    |   |   |   | 108.65 | % |   |   |   |   |   |   |   |   |   |   | 112.65 | % |   |   |   |   |

| (1) | The decrease in yield of the Company’s mortgage-backed securities portfolio is primarily a result of changes in portfolio composition as well as in estimate of prepayment speed assumptions. The Company employs the effective yield method of accounting, which requires retrospective adjustments to the yield on the Company’s assets, which in turn directly affects earnings. The Company estimates yield at the time of purchase of each asset. To the extent prepayment speeds assumptions differ from Company’s estimates at the time of purchase, the Company is required to adjust the yield on that asset as well as the amortization of premium or discount taken to date on the asset. This cumulative “true up” of the amortization was taken through earnings in the 2009 period. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2)    | Includes non-accrual loans.  Calculated net of unamortized deferred fees, undisbursed portion of loans-in-process and allowance for loan losses. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                       |
| (3)    | Yield substantially decreased due to declining overnight investment rates during the 2010 period as compared to the 2009 period.                           |
|   |                                                                                                                                                       |
| (4)    | Equals net interest income divided by average interest-earning assets.                                                                                     |

----

----

|                                                 |   |         |   |   |             |   |   | To Be             |   |
|------------------------------------------------------|--------|--------------|--------|--------|------------------|--------|--------|-------------------|--------|
|                                                 |   |         |   |   |             |   |   | Well Capitalized  |   |
|                                                 |   |         |   |   | Required for     |   |   | Under Prompt      |   |
|                                                 |   |         |   |   | Capital Adequacy |   |   | Corrective Action |   |
|                                                 |   | Actual Ratio |   |   | Purposes         |   |   | Provisions        |   |
|                                                 |   |         |   |   |             |   |   |              |   |
| March 31, 2010:                                      |   |         |   |   |             |   |   |              |   |
|   Tier 1 capital (to average assets)       |   |         |   |   |             |   |   |              |   |
|      The Company            |   |         | 10.66  | %      |             |   | 4.0    | %                 |   |   | N/A |   |
|      The Bank               |   |         | 9.77   | %      |             |   | 4.0    | %                 |   |   | 5.0 | % |
|                                                 |   |         |   |   |             |   |   |              |   |   |   |   |
|   Tier 1 capital (to risk weighted assets) |   |         |   |   |             |   |   |              |   |   |   |   |
|      The Company            |   |         | 21.86  | %      |             |   | 4.0    | %                 |   |   | N/A |   |
|      The Bank               |   |         | 20.01  | %      |             |   | 4.0    | %                 |   |   | 6.0 | % |
|                                                 |   |         |   |   |             |   |   |              |   |   |   |   |
|   Total capital (to risk weighted assets)  |   |         |   |   |             |   |   |              |   |   |   |   |
|      The Company            |   |         | 22.84  | %      |             |   | 8.0    | %                 |   |   | N/A |   |
|      The Bank               |   |         | 20.99  | %      |             |   | 8.0    | %                 |   |   | 10.0 | % |
|                                                 |   |         |   |   |             |   |   |              |   |   |   |   |
| September 30, 2009:                                  |   |         |   |   |             |   |   |              |   |   |   |   |
|   Tier 1 capital (to average assets)       |   |         |   |   |             |   |   |              |   |   |   |   |
|      The Company            |   |         | 10.86  | %      |             |   | 4.0    | %                 |   |   | N/A |   |
|      The Bank               |   |         | 9.99   | %      |             |   | 4.0    | %                 |   |   | 5.0 | % |
|                                                 |   |         |   |   |             |   |   |              |   |   |   |   |
|   Tier 1 capital (to risk weighted assets) |   |         |   |   |             |   |   |              |   |   |   |   |
|      The Company            |   |         | 24.59  | %      |             |   | 4.0    | %                 |   |   | N/A |   |
|      The Bank               |   |         | 22.61  | %      |             |   | 4.0    | %                 |   |   | 6.0 | % |
|                                                 |   |         |   |   |             |   |   |              |   |   |   |   |
|   Total capital (to risk weighted assets)  |   |         |   |   |             |   |   |              |   |   |   |   |
|      The Company            |   |         | 25.79  | %      |             |   | 8.0    | %                 |   |   | N/A |   |
|      The Bank               |   |         | 23.81  | %      |             |   | 8.0    | %                 |   |   | 10.0 | % |

----

----

|                                                                                                            |   |                   |   |   | More than |   |    | More than  |   |   | More than  |   |   |      |    |   |   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|-----------|--------|---------|------------|--------|--------|------------|--------|--------|-----------|---------|--------|--------|--------|
|                                                                                                            |   | 3 Months               |   |   | 3 Months  |   |    | 1 Year     |   |   | 3 Years    |   |   | More than |    |   | Total  |   |
|                                                                                                            |   | or Less                |   |   | to 1 Year |   |    | to 3 Years |   |   | to 5 Years |   |   | 5 Years   |    |   | Amount |   |
|                                                                                                            |   |                   |   |   |      |   |    |       |   |   |       |   |   |      |    |   |   |   |
|                                                                                                            |   | (Dollars in Thousands) |   |
| Interest-earning assets(1):                                                                                     |   |                   |   |   |      |   |    |       |   |   |       |   |   |      |    |   |   |   |
| Investment and mortgage-backed securities(2)                                                                    |   | $                      | 14,596 |   |      | $      | 19,973  |       |   | $      | 22,358     |   |   | $         | 14,549  |   |   | $      | 136,092 |   |   | $ | 207,568 |   |
| Loans receivable(3)                                                                                             |   |                   | 34,716 |   |      |   | 49,453  |       |   |   | 84,677     |   |   |      | 42,857  |   |   |   | 43,946 |   |   |   | 255,649 |   |
| Other interest-earning assets(4)                                                                                |   |                   | 19,993 |   |      |   |    |       |   |   |       |   |   |      |    |   |   |   |   |   |   |   | 19,993 |   |
|     Total interest-earning assets                                                           |   | $                      | 69,305 |   |      | $      | 69,426  |       |   | $      | 107,035    |   |   | $         | 57,406  |   |   | $      | 180,038 |   |   | $ | 483,210 |   |
|                                                                                                            |   |                   |   |   |      |   |    |       |   |   |       |   |   |      |    |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                                   |   |                   |   |   |      |   |    |       |   |   |       |   |   |      |    |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                                                                |   | $                      | 297    |   |      | $      | 194     |       |   | $      | 42,201     |   |   | $         | 14,067  |   |   | $      | 14,067 |   |   | $ | 70,826 |   |
| Money market deposit and NOW accounts                                                                           |   |                   |   |   |      |   | 38,028  |       |   |   | 54,918     |   |   |      | 5,630   |   |   |   | 5,630 |   |   |   | 104,206 |   |
| Certificates of deposit                                                                                         |   |                   | 49,021 |   |      |   | 117,157 |       |   |   | 69,997     |   |   |      | 23,008  |   |   |   |   |   |   |   | 259,183 |   |
| Advances from Federal Home Loan Bank                                                                            |   |                   | 30     |   |      |   | 13,091  |       |   |   | 176        |   |   |      | 210     |   |   |   | 130 |   |   |   | 13,637 |   |
| Advances from borrowers for taxes and insurance                                                                 |   |                   | 1,186  |   |      |   | -       |       |   |   | -          |   |   |      | -       |   |   |   | - |   |   |   | 1,186 |   |
|     Total interest-bearing liabilities                                                      |   | $                      | 50,534 |   |      | $      | 168,470 |       |   | $      | 167,292    |   |   | $         | 42,915  |   |   | $      | 19,827 |   |   | $ | 449,038 |   |
|                                                                                                            |   |                   |   |   |      |   |    |       |   |   |       |   |   |      |    |   |   |   |   |   |   |   |   |   |
| Interest-earning assets less interest-bearing liabilities                                                       |   | $                      | 18,771 |   |      | ($     | 99,044  | )          |   | ($     | 60,257     | )      |   | $         | 14,491  |   |   | $      | 160,211 |   |   | $ | 34,172 |   |
|                                                                                                            |   |                   |   |   |      |   |    |       |   |   |       |   |   |      |    |   |   |   |   |   |   |   |   |   |
| Cumulative interest-rate sensitivity gap (5)                                                                    |   | $                      | 18,771 |   |      | ($     | 80,273  | )          |   | ($     | 140,530    | )      |   | ($        | 126,039 | )      |   | $      | 34,172 |   |   |   |   |   |
|                                                                                                            |   |                   |   |   |      |   |    |       |   |   |       |   |   |      |    |   |   |   |   |   |   |   |   |   |
| Cumulative interest-rate gap as a percentage of total assets at March 31, 2010                                  |   |                   | 3.69   | %      |      |   | -15.79  | %          |   |   | -27.65     | %      |   |      | -24.80  | %      |   |   | 6.72 | % |   |   |   |   |
|                                                                                                            |   |                   |   |   |      |   |    |       |   |   |       |   |   |      |    |   |   |   |   |   |   |   |   |   |
| Cumulative interest-earning assets as a percentage of cumulative interest-bearing liabilities at March 31, 2010 |   |                   | 137.15 | %      |      |   | 63.35   | %          |   |   | 63.62      | %      |   |      | 70.63   | %      |   |   | 107.61 | % |   |   |   |   |

| (1)    | Interest-earning assets are included in the period in which the balances are expected to be redeployed and/or repriced as a result of anticipated prepayments, scheduled rate adjustments and contractual maturities.      |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                       |
| (2)    | For purposes of the gap analysis, investment securities are stated at amortized cost.                                                                                                                                      |
|   |                                                                                                                                                                                                                       |
| (3)    | For purposes of the gap analysis, loans receivable includes non-performing loans and is gross of the allowance for loan losses and unamortized deferred loan fees, but net of the undisbursed portion of loans-in-process. |
|   |                                                                                                                                                                                                                       |
| (4)    | Includes FHLB stock.                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                       |
| (5)    | Cumulative interest-rate sensitivity gap represents the difference between interest-earning assets and interest-bearing liabilities.                                                                                       |

----

|                    |   |   |                                |   |   |                                       |   |    |     |   |   |      |   |   |   |   |   |   |   |   |   |
|-------------------------|--------|--------|-------------------------------------|--------|--------|--------------------------------------------|--------|---------|----------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Change inInterest Rates |   |   |  Net Portfolio Value           |   |   |  NPV as % of PortfolioValue of Assets |   |
|  In Basis Points   |   |   |                                |   |   |                                       |   |    |     |   |   |      |   |   |   |   |   |   |   |   |   |
|  (Rate Shock)      |   |   |  Amount                        |   |   | $ Change                                   |   |    | % Change |   |   | NPV Ratio |   |   | Change |   |
|                    |   |   |                                |   |
|                    |   |   |    (Dollars in Thousands) |   |
|                    |   |   |                                |   |
| 300                     |   |   | $                                   | 15,266 |   |                                       | $      | (47,306 | )        |   |   | (75.60    | )%     |   |   | 3.40   | %      |   |   | (8.73  | )%     |
| 200                     |   |   |                                | 29,620 |   |                                       |   | (32,952 | )        |   |   | (52.66    | )%     |   |   | 6.30   | %      |   |   | (5.83  | )%     |
| 100                     |   |   |                                | 46,666 |   |                                       |   | (15,906 | )        |   |   | (25.42    | )%     |   |   | 9.46   | %      |   |   | (2.67  | )%     |
| Static                  |   |   |                                | 62,572 |   |                                       |   | -       |     |   |   | -         |   |   |   | 12.13  | %      |   |   | -      |   |
| (100)                   |   |   |                                | 68,222 |   |                                       |   | 5,650   |     |   |   | 9.03      | %      |   |   | 12.92  | %      |   |   | 0.79   | %      |
| (200)                   |   |   |                                | 71,703 |   |                                       |   | 9,131   |     |   |   | 14.59     | %      |   |   | 13.39  | %      |   |   | 1.26   | %      |
| (300)                   |   |   |                                | 76,502 |   |                                       |   | 13,930  |     |   |   | 22.26     | %      |   |   | 14.12  | %      |   |   | 1.99   | %      |

----

----

| (a)    | Not applicable                                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                              |
| (b)    | Not applicable                                                                                                    |
|   |                                                                                                              |
| (c)    | The Company’s repurchases of its common stock made during the quarter are set forth in the following table: |

| Period                               |   | Total Numberof SharesPurchased |          |                  | Average PricePaid perShare |   |   | Total Number of SharesPurchased asPart of Publicly AnnouncedPlans orPrograms |   |   | Maximum Numberof Shares that MayYet be PurchasedUnder the Plan orPrograms |      |
|--------------------------------------|--------|--------------------------------|---------------|-----------------------|----------------------------|--------|--------|------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------|-----------|
| January 1 – January 31, 2010   |   |                           | 9,394         |                  |                       | $      | 9.53   |                                                                         |   |   | —                                                                   |      |   |   | 20,000 | (1) |
| February 1 – February 28, 2010 |   |                           | 20,000        |                  |                       |   | 9.65   |                                                               |   |   | 20,000                                                                    | (1)  |   |   | — |   |
| March 1 - March 31, 2010             |   |                           |  271,100 | (2)    |                       |   | 9.75   |                                                                         |   |   | —                                                                   |      |   |   | — |   |
|                                 |   |                           |          |                  |                       |   |   |                                                                         |   |   |                                                                      |      |   |   |   |   |
| Total                                |   |                           | 300,394       |                  |                       | $      | 9.74   |                                                                         |   |   | 20,000                                                                    |      |   |   | — |   |

----

|       (1) | The seventh stock repurchase program was completed during February 2010. |
|-----------------------------------------|--------------------------------------------------------------------------|

|       (2) | Reflects privately negotiated repurchase of shares from Stilwell Value Partners I. |
|-----------------------------------------|------------------------------------------------------------------------------------|

----

| Exhibit No. |   | Description                                                       |   |
|-------------|--------|-------------------------------------------------------------------|--------|
|  31.1  |   | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer |
|  31.2  |   | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer |
|  32.0  |   | Section 1350 Certifications                                       |

----

|                                                                                                               |   |                                                 |   |
|--------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|
|               Date:   May 17, 2010 |   | By: /s/ Thomas A. Vento                         |   |
|                                                                                                               |   | Thomas A. Vento                                      |   |
|                                                                                                               |   | President and Chief Executive Officer                |   |
|                                                                                                               |   |                                                 |   |
|              Date:   May 17, 2010       |   | By: /s/ Joseph R. Corrato                            |   |
|                                                                                                               |   | Joseph R. Corrato                                    |   |
|                                                                                                               |   | Executive Vice President and Chief Financial Officer |   |