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UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, D.C. 20549





FORM  10-QSB





|(Mark One)                                                                         
|-----------------------------------------------------------------------------------
|                                                                                   
|                                                                                   
|                                                                                   
|For the quarterly period ended    January 31, 2005                                 
|                                                                                   
|OR                                                                                 
|                                                                                   
|                                                                                   
|                                                                                   
|For the transition period    from________________________to________________________
|                                                                                   
|Commission    file number 0-50684                                                  




|SE FINANCIAL CORP.                                                                      
|----------------------------------------------------------------------------------------
|                                                                                        
|(Exact    name of registrant as specified in its charter)                               
|                                                                                        
|Pennsylvania                                                                            
|                                                                                        
|(State or    other jurisdiction of incorporation or organization)                       
|                                                                                        
|1901-03    Passyunk Avenue, Philadelphia, Pennsylvania                                  
|                                                                                        
|(Address    of principal executive offices)                                             
|                                                                                        
|Registrants telephone number,    including area    code                    215-468-1700
|                                                                                        
|N/A                                                                                     
|                                                                                        
|Former name, former address and former fiscal year, if    changed since last report.    

Indicate by check whether the registrant (1) has filed  all reports required to be filed by Section 13 or 15(d) of the Securities  Exchange Act of 1934 during the preceding 12 months (or for such shorter period  that the registrant was required to file such reports), and (2) has been  subject to such filing requirements for the past 90  days.   Yes





Indicate the number of shares outstanding of each of  the issuers classes of common stock as of the latest practicable date:  March  09, 2005





|Class                          |  | Outstanding     
|------------------------------ |  | ----------------
|                               |  |                 
|$.10 par value common    stock |  | 2,578,875 shares




Transitional Small Business  Disclosure Format (check one):    Yes     No





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SE  FINANCIAL CORP.





FORM  1O-QSB





FOR THE  QUARTER ENDED JANUARY 31, 2005





INDEX





|                                            | Page    Number
|------------------------------------------- | --------------
|                                            |               
|PART I - CONSOLIDATED FINANCIAL INFORMATION |               
|                                            |               
|                                            | Item 1.       
|                                            | Item 2.       
|                                            | Item 3.       
|                                            |               
|PART II- OTHER INFORMATION                  |               
|                                            |               
|                                            | Item 1.       
|                                            | Item 2.       
|                                            | Item 3.       
|                                            | Item 4.       
|                                            | Item 5.       
|                                            | Item 6.       
|                                            |               
|SIGNATURES                                  |               
|                                            |               
|EXHIBITS                                    |               
|                                            |               
|                                            | 31            
|                                            |               
|                                            | 32            
|                                            |               
|                                            | 99.1          




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SE  FINANCIAL CORP.


CONSOLIDATED  BALANCE SHEET


(Unaudited)





|                                                                                                    |  | January    31,    2005 |             | October    31,    2004 |  
|--------------------------------------------------------------------------------------------------- |  | ---------------------- | ----------- | ---------------------- | -
|                                                                                                    |  |                        |             |                        |  
|ASSETS                                                                                              |  |                        |             |                        |  
|Cash    and due from banks                                                                          |  | $                      | 1,055,866   |                        | $
|Interest-bearing    deposits with other institutions                                                |  |                        | 1,772,732   |                        |  
|                                                                                                    |  |                        |             |                        |  
|Cash    and cash equivalents                                                                        |  |                        | 2,828,598   |                        |  
|Certificates    of deposit in other financial institutions                                          |  |                        | 189,798     |                        |  
|Investment    securities available for sale                                                         |  |                        | 47,032,428  |                        |  
|Loans    receivable (net of allowance for loan losses of $ 367,425 and $ 342,875)                   |  |                        | 69,270,502  |                        |  
|Accrued    interest receivable                                                                      |  |                        | 598,469     |                        |  
|Federal    Home Loan Bank Stock                                                                     |  |                        | 1,043,200   |                        |  
|Premises    and equipment, net                                                                      |  |                        | 1,070,830   |                        |  
|Bank    owned life insurance                                                                        |  |                        | 1,886,768   |                        |  
|Other    assets                                                                                     |  |                        | 517,961     |                        |  
|                                                                                                    |  |                        |             |                        |  
|TOTAL    ASSETS                                                                                     |  | $                      | 124,438,554 |                        | $
|                                                                                                    |  |                        |             |                        |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                |  |                        |             |                        |  
|Liabilities                                                                                         |  |                        |             |                        |  
|Deposits                                                                                            |  | $                      | 76,409,587  |                        | $
|Short-term    borrowings                                                                            |  |                        | 5,500,000   |                        |  
|Federal    Home Loan Bank borrowings                                                                |  |                        | 9,560,396   |                        |  
|Advances    by borrowers for taxes and insurance                                                    |  |                        | 642,542     |                        |  
|Accrued    interest payable                                                                         |  |                        | 43,352      |                        |  
|Other    liabilities                                                                                |  |                        | 468,469     |                        |  
|                                                                                                    |  |                        |             |                        |  
|TOTAL    LIABILITIES                                                                                |  |                        | 92,624,346  |                        |  
|Stockholders Equity                                                                                |  |                        |             |                        |  
|Preferred    stock - no par value; 2,000,000 shares authorized; none issued                         |  |                        |            |                        |  
|Common    stock - $0.10 par value; 8,000,000 shares authorized; 2,578,875 issued and    outstanding |  |                        | 257,888     |                        |  
|Paid-in-capital    in excess of par                                                                 |  |                        | 24,845,520  |                        |  
|Retained    earnings - substantially restricted                                                     |  |                        | 8,673,726   |                        |  
|Unallocated    shares held by Employee Stock Ownership Plan (ESOP)                                |  |                        | (1,952,580  | )                      |  
|Accumulated    other comprehensive income (loss)                                                    |  |                        | (10,346     | )                      |  
|                                                                                                    |  |                        |             |                        |  
|TOTAL    STOCKHOLDERS EQUITY                                                                       |  |                        | 31,814,208  |                        |  
|                                                                                                    |  |                        |             |                        |  
|TOTAL    LIABILITIES AND STOCKHOLDERS EQUITY                                                       |  | $                      | 124,438,554 |                        | $
|                                                                                                    |  |                        |             |                        |  

See accompanying notes to  the unaudited consolidated financial statements.





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SE  FINANCIAL CORP.


CONSOLIDATED  STATEMENT OF INCOME


(Unaudited)





|                                                                     |  | Three Months Ended January 31, |          
|-------------------------------------------------------------------- |  | ------------------------------ | ---------
|                                                                     |  |                                |          
|                                                                     |  | 2005                           |          
|                                                                     |  |                                |          
|INTEREST AND DIVIDEND    INCOME                                      |  |                                |          
|Loans    receivable                                                  |  | $                              | 1,135,817
|Investment    securities                                             |  |                                |          
|Taxable                                                              |  |                                | 437,645  
|Exempt    from federal income tax                                    |  |                                | 36,088   
|Interest-bearing    deposits with other institutions                 |  |                                | 18,137   
|Other    dividend income                                             |  |                                | 7,719    
|                                                                     |  |                                |          
|Total    interest and dividend income                                |  |                                | 1,635,406
|INTEREST EXPENSE                                                     |  |                                |          
|Deposits                                                             |  |                                | 487,596  
|Short-term    borrowings                                             |  |                                | 31,548   
|Federal    Home Loan Bank borrowings                                 |  |                                | 96,096   
|                                                                     |  |                                |          
|Total    interest expense                                            |  |                                | 615,240  
|                                                                     |  |                                |          
|NET INTEREST INCOME                                                  |  |                                | 1,020,166
|Provision    for loan losses                                         |  |                                | 17,000   
|                                                                     |  |                                |          
|NET INTEREST INCOME AFTER    PROVISION FOR LOAN LOSSES               |  |                                | 1,003,166
|NONINTEREST INCOME                                                   |  |                                |          
|Service    fees on deposit accounts                                  |  |                                | 66,447   
|Earnings    on bank-owned life insurance                             |  |                                | 20,079   
|Other                                                                |  |                                | 10,220   
|                                                                     |  |                                |          
|Total    noninterest income                                          |  |                                | 96,746   
|NONINTEREST EXPENSE                                                  |  |                                |          
|Compensation    and employee benefits                                |  |                                | 392,022  
|Occupancy    and equipment                                           |  |                                | 49,589   
|Federal    deposit insurance premiums                                |  |                                | 10,762   
|Data    processing expense                                           |  |                                | 72,957   
|Professional    fees                                                 |  |                                | 53,432   
|Other                                                                |  |                                | 113,232  
|                                                                     |  |                                |          
|Total    noninterest expense                                         |  |                                | 691,994  
|                                                                     |  |                                |          
|INCOME BEFORE TAXES                                                  |  |                                | 407,918  
|INCOME TAXES                                                         |  |                                | 137,033  
|                                                                     |  |                                |          
|NET INCOME                                                           |  | $                              | 270,885  
|                                                                     |  |                                |          
|PER SHARE DATA:                                                      |  |                                |          
|Earnings    per share - basic and diluted                            |  | $                              | 0.11     
|Weighted    average number of shares outstanding - basic and diluted |  |                                | 2,382,402




See accompanying notes to  the unaudited consolidated financial statements.





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SE FINANCIAL  CORP.


CONSOLIDATED  STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY


(Unaudited)





|                                                                                     |  | Common    Stock at    Par |         | Additional    paid-in Capital |   | Retained    Earnings-    Substantially    Restricted |  | Unallocated    shares held by    ESOP |           | Accumulated    Other    Comprehen-    sive Income    (Loss) |   | Total    Stockholders    Equity |   | Comprehen-    sive Income |        
|------------------------------------------------------------------------------------ |  | ------------------------- | ------- | ----------------------------- | - | ---------------------------------------------------- |  | ------------------------------------- | --------- | ----------------------------------------------------------- | - | -------------------------------- | - | ------------------------- | -------
|                                                                                     |  |                           |         |                               |   |                                                      |  |                                       |           |                                                             |   |                                  |   |                           |        
|                                                                                     |  | (Unaudited)               |        
|Balance, October 31, 2004                                                            |  | $                         | 257,888 |                               | $ | 24,841,836                                           |  | $                                     | 8,450,438 |                                                             | $ | (2,007,498                       | ) | $                         | 59,859 
|Cash dividends paid                                                                  |  |                           |        |                               |   |                                                     |  |                                       | (47,597   | )                                                           |   |                                 |   |                           |       
|ESOP shares committed to be    released                                              |  |                           |        |                               |   | 3,684                                                |  |                                       |          |                                                             |   | 54,918                           |   |                           |       
|Net income                                                                           |  |                           |        |                               |   |                                                     |  |                                       | 270,885   |                                                             |   |                                 |   |                           |       
|Other comprehensive income:                                                          |  |                           |         |                               |   |                                                      |  |                                       |           |                                                             |   |                                  |   |                           |        
|Unrealized    loss on avail-able for sale securities net of tax benefit of $(36,166) |  |                           |        |                               |   |                                                     |  |                                       |          |                                                             |   |                                 |   |                           | (70,205
|                                                                                     |  |                           |         |                               |   |                                                      |  |                                       |           |                                                             |   |                                  |   |                           |        
|Comprehensive income                                                                 |  |                           |        |                               |   |                                                     |  |                                       |          |                                                             |   |                                 |   |                           |       
|                                                                                     |  |                           |         |                               |   |                                                      |  |                                       |           |                                                             |   |                                  |   |                           |        
|Balance, January 31, 2005                                                            |  | $                         | 257,888 |                               | $ | 24,845,520                                           |  | $                                     | 8,673,726 |                                                             | $ | (1,952,580                       | ) | $                         | (10,346
|                                                                                     |  |                           |         |                               |   |                                                      |  |                                       |           |                                                             |   |                                  |   |                           |        




See accompanying notes to the unaudited consolidated financial  statements.





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SE  FINANCIAL CORP.


CONSOLIDATED  STATEMENT OF CASH FLOWS


(Unaudited)





|                                                                                     |  | For the    Three Months Ended January 31, |           
|------------------------------------------------------------------------------------ |  | ----------------------------------------- | ----------
|                                                                                     |  |                                           |           
|                                                                                     |  | 2005                                      |           
|                                                                                     |  |                                           |           
|OPERATING ACTIVITIES                                                                 |  |                                           |           
|Net    income                                                                        |  | $                                         | 270,885   
|Adjustments    to reconcile net income to net cash provided by operating activities: |  |                                           |           
|Provision    for loan losses                                                         |  |                                           | 17,000    
|Depreciation,    amortization, and accretion                                         |  |                                           | 18,242    
|Earnings    on bank-owned life insurance                                             |  |                                           | (20,079   
|Decrease    in principal and interest on loans sold payable                          |  |                                           | (154,190  
|Increase    (decrease) in accrued interest receivable                                |  |                                           | 32,038    
|Decrease    in accrued interest payable                                              |  |                                           | (70,487   
|Other,    net                                                                        |  |                                           | (84,685   
|                                                                                     |  |                                           |           
|Net    cash provided by operating activities                                         |  |                                           | 8,724     
|                                                                                     |  |                                           |           
|INVESTING ACTIVITIES                                                                 |  |                                           |           
|Investment    securities available for sale:                                         |  |                                           |           
|Proceeds    from principal repayments and maturities                                 |  |                                           | 1,282,048 
|Purchases                                                                            |  |                                           | (1,262    
|Increase    in loans receivable, net                                                 |  |                                           | (4,459,817
|Proceeds    from sales of real estate owned                                          |  |                                           | 80,000    
|Redemption    of Federal Home Loan Bank stock                                        |  |                                           | 135,800   
|Purchase    of bank-owned life insurance                                             |  |                                           |          
|Purchase    of premises and equipment                                                |  |                                           | (26,566   
|                                                                                     |  |                                           |           
|Net    cash used for investing activities                                            |  |                                           | (2,989,797
|                                                                                     |  |                                           |           
|FINANCING ACTIVITIES                                                                 |  |                                           |           
|Increase    (decrease) in deposits, net                                              |  |                                           | 1,024,341 
|Net    decrease in short-term borrowings                                             |  |                                           | (1,500,000
|Repayment    of Federal Home Loan Bank borrowings                                    |  |                                           | (15,861   
|Increase    in advances by borrowers for taxes and insurance, net                    |  |                                           | 167,994   
|Cash    dividends                                                                    |  |                                           | (47,597   
|                                                                                     |  |                                           |           
|Net    cash used for financing activities                                            |  |                                           | (371,123  
|                                                                                     |  |                                           |           
|Decrease    in cash and cash equivalents                                             |  |                                           | (3,352,196
|CASH AND CASH EQUIVALENTS    AT BEGINNING OF PERIOD                                  |  |                                           | 6,180,794 
|                                                                                     |  |                                           |           
|CASH AND CASH EQUIVALENTS    AT END OF PERIOD                                        |  | $                                         | 2,828,598 
|                                                                                     |  |                                           |           
|SUPPLEMENTAL CASH FLOW    DISCLOSURES                                                |  |                                           |           
|Cash    paid:                                                                        |  |                                           |           
|Interest                                                                             |  | $                                         | 685,727   
|Income    taxes                                                                      |  |                                           | 173,250   




See accompanying notes to  the unaudited consolidated financial statements.





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SE  FINANCIAL CORP.


NOTES TO  THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS





NOTE 1 - BASIS OF  PRESENTATION





The  consolidated financial statements include the accounts of SE Financial Corp.  (the Company) and St. Edmonds Federal Savings Bank (the Bank).  The Bank includes its wholly-owned  subsidiary, SE Investment Services Corp. (Services Corp.).  All intercompany transactions have been  eliminated in consolidation.





The  accompanying unaudited consolidated financial statements have been prepared in  accordance with U. S. generally accepted accounting principles for interim  financial information and the instructions for Form 10-QSB.  In managements opinion, the financial  statements include all adjustments, consisting of normal recurring adjustments,  that the Company considers necessary to fairly state the Companys financial  position and the results of operations and cash flows.  The balance sheet at October 31, 2004, has  been derived from the audited financial statements at that date but does not  include all of the necessary informational disclosures and footnotes as  required by U. S. generally accepted accounting principles.  The results of the Companys operations for  any interim period are not necessarily indicative of the results of the  Companys operations for
any other interim period or for a full fiscal year.





NOTE 2  COMPREHENSIVE  INCOME





The  components of comprehensive income consist exclusively of unrealized gains and  losses on available for sale securities.   For the three months ended January 31, 2005, this activity is shown  under the heading Comprehensive Income as presented in the Consolidated  Statement of Changes in Stockholders Equity (Unaudited).  For the three months ended January 31, 2004,  comprehensive income totaled $274,776.





NOTE 3  RECENT ACCOUNTING  PRONOUNCEMENTS





In December 2004 the Financial Accounting  Standards Board (FASB) issued Statement of Financial Accounting Standards  (FAS) No. 123 (Revised 2004), Share-Based Payment.  The statement requires that compensation  cost relating to share-based payment transactions be recognized in financial  statements and that this cost be measured on the fair value of the equity or  liability instruments issued.  FAS No.  123 (Revised 2004) covers a wide range of share-based compensation arrangements  including share options, restricted share plans, performance-based awards,  share appreciation rights, and employee share purchase plans.  The Company will adopt FAS No. 123 (Revised  2004) on July 1, 2006, and is currently evaluating the impact the adoption of  the standard will have on the Companys results of operation.





In October 2003 the American Institute of  Certified Public Accountants issued SOP 03-3, Accounting for Loans or Certain Debt  Securities Acquired in a Transfer.   SOP 03-3 applies to a loan that is acquired where it is probable, at  acquisition, that a transferee will be unable to collect all contractually  required payments receivable.  SOP 03-3  requires the recognition, as accretable yield, of the excess of all cash flows  expected at acquisition over the investors initial investment in the loan as  interest income on a level-yield basis over the life of the loan.  The amount by which the loans contractually  required payments exceed the amount of its expected cash flows at acquisition  may not be recognized as an adjustment to yield, a loss accrual, or a valuation  allowance for credit risk.  SOP 03-3 is  effective for loans acquired in fiscal years beginning after December 31, 2004.  Early adoption is
permitted.  The adoption of SOP 03-3 is not expected to  have a material impact on the consolidated financial statements.





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NOTE 4  INVESTMENTS





The amortized cost and the fair value of  available-for-sale investment securities were as follows:





|                                                       |  | January    31, 2005 |           
|------------------------------------------------------ |  | ------------------- | ----------
|                                                       |  |                     |           
|                                                       |  | Amortized    Cost   |           
|                                                       |  |                     |           
|Mortgage-backed securities:                            |  |                     |           
|Fannie Mae                                             |  | $                   | 22,725,476
|Freddie Mac                                            |  |                     | 2,505,132 
|Government National Mortgage Association    securities |  |                     | 3,062,850 
|                                                       |  |                     |           
|Total mortage-backed securities                        |  |                     | 28,293,458
|U.S. Government agency securities                      |  |                     | 13,455,815
|Corporate securities                                   |  |                     | 1,000,000 
|Municipal securities                                   |  |                     | 4,112,725 
|                                                       |  |                     |           
|Total debt securities                                  |  |                     | 46,861,998
|Mutual funds                                           |  |                     | 186,106   
|                                                       |  |                     |           
|Total                                                  |  | $                   | 47,048,104
|                                                       |  |                     |           




|                                                       |  | October    31, 2004 |           
|------------------------------------------------------ |  | ------------------- | ----------
|                                                       |  |                     |           
|                                                       |  | Amortized    Cost   |           
|                                                       |  |                     |           
|Mortgage-backed securities:                            |  |                     |           
|Fannie Mae                                             |  | $                   | 23,725,032
|Freddie Mac                                            |  |                     | 2,673,274 
|Government National Mortgage Association    securities |  |                     | 3,192,711 
|                                                       |  |                     |           
|Total mortage-backed securities                        |  |                     | 29,591,017
|U.S. Government agency securities                      |  |                     | 13,457,313
|Corporate securities                                   |  |                     | 1,000,000 
|Municipal securities                                   |  |                     | 4,113,449 
|                                                       |  |                     |           
|Total debt securities                                  |  |                     | 48,161,779
|Mutual funds                                           |  |                     | 184,843   
|                                                       |  |                     |           
|Total                                                  |  | $                   | 48,346,622
|                                                       |  |                     |           
|                                                       |  |                     |           




The amortized cost and estimated market value  of debt securities at January 31, 2005, by contractual maturity, are shown  below.  Mortgage-backed securities  provide for periodic, generally monthly, payments of principal and interest and  have contractual maturities ranging from one to thirty years.  Expected maturities will differ from  contractual maturities because borrowers may have the right to call or repay  obligations with or without call or prepayment penalties.





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|                                          |  | Amortized    Cost |            | Estimated    Market    Value |  
|----------------------------------------- |  | ----------------- | ---------- | ---------------------------- | -
|                                          |  |                   |            |                              |  
|Due after one year through    five years  |  | $                 | 8,034,185  |                              | $
|Due after five years    through ten years |  |                   | 10,123,215 |                              |  
|Due after ten years                       |  |                   | 28,704,598 |                              |  
|                                          |  |                   |            |                              |  
|                                          |  | $                 | 46,861,998 |                              | $
|                                          |  |                   |            |                              |  




NOTE 5  LOANS RECEIVABLE





Loans receivable consist of the following:





|                                                   |  | January    31, 2005       |            | October    31, 2004 | 
|-------------------------------------------------- |  | ------------------------- | ---------- | ------------------- | 
|                                                   |  |                           |            |                     | 
|Type of Loans:                                     |  | Amount                    |            | Percent             | 
|                                                   |  |                           |            |                     | 
|                                                   |  | (Dollars in    thousands) |           
|Mortgage loans:                                    |  |                           |            |                     | 
|One-to    four- family (1)                         |  | $                         | 44,938,928 |                     | 
|Multi-family                                       |  |                           | 467,621    |                     | 
|Commercial    real estate                          |  |                           | 5,118,559  |                     | 
|Construction    (2)                                |  |                           | 8,223,324  |                     | 
|Home equity loans and lines    of credit           |  |                           | 10,459,778 |                     | 
|Loans on savings accounts                          |  |                           | 379,556    |                     | 
|Other                                              |  |                           | 154,885    |                     | 
|                                                   |  |                           |            |                     | 
|Total loans                                        |  |                           | 69,742,651 |                     | 
|                                                   |  |                           |            |                     | 
|Less:                                              |  |                           |            |                     | 
|Net    deferred loan fees and unamortized premiums |  |                           | 104,724    |                     | 
|Allowance    for loan losses                       |  |                           | 367,425    |                     | 
|                                                   |  |                           |            |                     | 
|Total loans, net                                   |  | $                         | 69,270,502 |                     | 
|                                                   |  |                           |            |                     | 




|   
|---
|(1)
|(2)




NOTE 6  FEDERAL HOME LOAN  BANK BORROWINGS





The following tables set forth information  concerning advances with the FHLB:





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|Description           |  | Maturity    range |          | Weighted-    average    interest rate |    | Stated    interest rate    range |  | At January    31,    2005 |      | At October    31,    2004 | 
|--------------------- |  | ----------------- | -------- | ------------------------------------- | -- | -------------------------------- |  | ------------------------- | ---- | ------------------------- | 
|                      | 
|from                  |  | to                | from     |                                       | to
|                      |  |                   |          |                                       |    |                                  |  |                           |      |                           | 
|Short-term borrowings |  |                   | 04/12/05 |                                       |    | 05/02/05                         |  |                           | 2.29 | %                         | 
|Convertible           |  |                   | 02/18/10 |                                       |    | 02/18/10                         |  |                           | 5.91 | %                         | 
|Mid Term Repo Fixed   |  |                   | 05/01/06 |                                       |    | 04/30/07                         |  |                           | 2.97 | %                         | 
|Fixed Rate            |  |                   | 04/30/08 |                                       |    | 08/20/08                         |  |                           | 5.29 | %                         | 
|Fixed Rate amortizing |  |                   | 11/03/05 |                                       |    | 11/03/05                         |  |                           | 6.47 | %                         | 
|                      |  |                   |          |                                       |    |                                  |  |                           |      |                           | 
|Total                 |  |                   |          |                                       |    |                                  |  |                           |      |                           | 
|                      |  |                   |          |                                       |    |                                  |  |                           |      |                           | 




The Bank entered into a ten-year Convertible  Select fixed commitment advance arrangement for $1,000,000 with the FHLB.  Rates may be reset at the FHLBs discretion  on a quarterly basis based on the three-month LIBOR rate.  At each rate change the Bank may exercise a  put option and satisfy the obligation without penalty.  The fixed rate amortizing borrowing requires  monthly payments of principal and interest of $5,670 through November 2005.





All borrowings from the FHLB are secured by a  blanket lien on qualified collateral, defined principally as investment  securities and mortgage loans which are owned by the Bank free and clear of any  liens or encumbrances.





Maturities of FHLB borrowings at January 31,  2005 are summarized as follows:





|Year Ending    October 31, |  | Amount |            | Weighted-    Average Rate | 
|-------------------------- |  | ------ | ---------- | ------------------------- | 
|                           |  |        |            |                           | 
|2005                       |  | $      | 5,549,148  |                           | 
|2006                       |  |        | 3,011,248  |                           | 
|2007                       |  |        | 3,000,000  |                           | 
|2008                       |  |        | 2,500,000  |                           | 
|2010                       |  |        | 1,000,000  |                           | 
|                           |  |        |            |                           | 
|                           |  | $      | 15,060,396 |                           | 
|                           |  |        |            |                           | 




NOTE 7  EARNINGS PER SHARE





The Company currently maintains a simple  capital structure; thus, there are no dilutive effects on earnings per  share.  As such, earnings per share are  calculated using the weighted-average number of shares outstanding for the  period.





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MANAGEMENTS  DISCUSSION AND ANALYSIS OF


FINANCIAL  CONDITION AND RESULTS OF OPERATIONS





General





This  document contains forward-looking statements, including statements about  anticipated operating and financial performance, such as loan originations,  operating efficiencies, loan sales, charge-offs and loan loss provisions,  growth opportunities, interest rates, and deposit growth.  Words such as may, could, should,  would, believe, anticipate, estimate, expect, intend, project,  plan, and similar expressions are intended to identify these forward-looking  statements.





Forward-looking  statements are necessarily subject to many risks and uncertainties.  A number of things could cause actual  results to differ materially from those indicated by the forward-looking  statements. Many of the risks and uncertainties are beyond our control.  Forward-looking statements are based on our  beliefs, plans, objectives, goals, assumptions, expectations, estimates, and  intentions as of the date the statements are made. There is no assurance that  these beliefs, plans, objectives, goals, assumptions, expectations, estimates,  and intentions will be realized.





Comparison of the Results of  Operations for the Three Months Ended January 31, 2005 and January 31, 2004





The Company  recorded net income of $270.9 thousand for the three months ended January 31,  2005, which represents an increase of $171.3 thousand, or 172.0%, over the same  period in 2004.  The increase in net  income is primarily due to an increase in net interest income and non-interest  income partially offset by an increase in non-interest expense.





Net  Interest Income.  Net  interest income for the three months ended January 31, 2005 increased to $1.0  million from $651.5 thousand for the same period in 2004 as a result of an  increase in total interest income offset by an increase in interest  expense.  Interest income for the three  months ended January 31, 2005 totaled $1.6 million as compared to $1.2 million for  the three months ended January 31, 2004.   This increase of $455.1 thousand was attributed primarily to an increase  in the average balance of interest-earning assets to $119.1 million for the  three months ended January 31, 2005 from $83.3 million for the three months  ended January 31, 2004.  This increase  was offset by a decrease in the average yield on interest-earning assets to  5.55% for the three months ended January 31, 2005 from 5.74% for the three  months ended January 31, 2004.  The
average balance of net loans receivable and investment securities increased by  $16.9 million and $20.0 million, respectively, while the average yield on net  loans receivable decreased by 0.35% due to the interest rate environment.





Interest  expense increased to $615.0 thousand for the three months ended January 31,  2005 from $528.9 thousand for the three months ended January 31, 2004 and was  primarily attributable to an increase in the average balance of  interest-bearing liabilities to $87.6 million for the three months ended  January 31, 2005 from $75.3 million for the three months ended January 31, 2004  while the average cost of funds remained constant at 2.81%.  This increase is mainly due to additional  FHLB borrowings, the proceeds of which were used to purchase mortgage-backed  securities.





Loan  Loss Provision.  The  provision for loan losses was $17.0 thousand for the three months ended January  31, 2005 compared to $9.0 thousand for the three months ended January 31,  2004.  The loan loss provision is based  upon managements assessment of a variety of factors, including types and  amounts of nonperforming loans, historical loss experience, collectibility of  collateral values and guaranties, pending legal action for collection of loans  and related guaranties, and current economic conditions.  The allowance represents managements best  estimate of known and inherent losses in the loan portfolio at the balance  sheet date that are both probable and reasonable to estimate.  However, actual loan losses could exceed the  amounts that have been charged to operations.





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Non-interest  Income.  Total  non-interest income increased to $96.7 thousand for the three months ended  January 31, 2005 compared to $82.2 thousand for the three months ended January  31, 2004.  The increase is principally  due to the earnings on bank-owned life insurance of $14.0 thousand.





Non-interest  Expense.  Non-interest  expense increased to $692.0 thousand for the three months ended January 31,  2005 from $563.4 thousand for the three months ended January 31, 2004.  Compensation and employee benefit expense  increased by approximately $95.5 thousand.   This increase was due to a normal increase in salaries, an increase in  medical insurance costs, implementation of an incentive retirement plan and  implementation of an employee stock ownership plan during 2004.  Occupancy and equipment expense decreased by  approximately $5.3 thousand.  This  decrease was attributable to a reduction in depreciation expense.  Data processing expense increased by $7.1  thousand.  Professional fees increased  by approximately $23.0 thousand.  This  increase was mainly due to an increase in accounting, auditing and legal fees  that resulted from
becoming a public reporting company.  Miscellaneous expense increased by $7.6  thousand mainly due to increased advertising.





Additionally,  the Bank currently plans to add seven full time employees to its staff over the  next several years, including up to three new lending/business development  officers, an assistant branch manager, and a support staff employee in each of  the accounting, lending and customer service departments.





Income  Taxes.  Income tax  expense increased to $137.0 thousand for the three months ended January 31,  2005 from $61.7 thousand for the same period in 2004.  This was due to an increase in pre-tax income.





Comparison of Financial Condition at  January 31, 2005 and October 31, 2004





Assets  and Liabilities.  The  Companys total assets remained stable at $124.4 million at January 31,  2005.  The Companys total assets at  October 31, 2004 were $124.8 million.





Cash and  cash equivalents decreased to $2.8 million at January 31, 2005 from $6.2  million at October 31, 2004.  Cash and  cash equivalents decreased during the period as funds were utilized to fund  loan originations.





Investment  securities available for sale decreased by $1.4 million to $47.0 million at  January 31, 2005 from $48.4 million at October 31, 2004.  The decrease is principally due to  mortgage-backed security repayments.





Net loans  receivable increased $4.5 million, or 6.9%, to $69.3 million at January 31,  2005 from $64.8 million at October 31, 2004, as the Company continued to  experience strong loan production and repayments were more moderate.  The increase in net loans receivable was the  result of increases in one- to four-family residential mortgages (which  includes owner and non-owner occupied properties), home equity loans and  construction financing in the amount of $1.6 million, $661.7 thousand and $2.7  million, respectively.





The  allowance for loan losses increased to $367.4 thousand at January 31, 2005 from  $342.9 thousand at October 31, 2004 and represented 0.52% of the gross loan portfolio  at January 31, 2005.  The Company had  nonaccrual loans of $184.8 thousand and $53.8 thousand at January 31, 2005 and  October 31, 2004, respectively.   Management does not believe the nonaccrual loans or any amounts  classified as nonperforming will have a significant effect on operations or  liquidity in 2005.  Furthermore,  management is not aware of any trends or uncertainties related to any loans  classified as doubtful or substandard that might have a material effect on  earnings, liquidity or capital resources.





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Total  deposits increased to $76.4 million at January 31, 2005 from $75.4 million at  October 31, 2004.  This was primarily a  result of an increase in certificates of deposit of $2.0 million offset by an  decrease in core accounts of $1.0 million.





Federal  Home Loan Bank borrowings decreased to $15.1 million at January 31, 2005 from  $16.6 million at October 31, 2004.  The  decrease is due to a payoff in the amount of $1.5 million.





Stockholders  Equity.  Total  stockholders equity increased to $31.8 million at January 31, 2005 from $31.6  million at October 31, 2004.  This  increase was attributable to net income of $270.9 thousand and the release of  ESOP shares in the amount of $58.6 thousand, offset by accumulated other  comprehensive loss of $70.2 thousand and cash dividends paid in the amount of  $47.6 thousand.  Accumulated other  comprehensive income decreased as a result of changes in the net unrealized  loss on investment securities available for sale.  Because of interest rate volatility, accumulated other  comprehensive income (loss) could materially fluctuate for each interim period  and year end period depending on economic and interest rate conditions.





Liquidity and Capital Resources





Liquidity.  Liquidity management for the Company is  measured and monitored on both a short- and long-term basis, allowing  management to better understand and react to emerging balance sheet trends.  After assessing actual and projected cash  flow needs, management seeks to obtain funding at the most economical cost to  the Company.  Both short- and long-term  liquidity needs are addressed by maturities and sales of investments  securities, and loan repayments and maturities.  The use of these resources, in conjunction with access to credit,  provides the core ingredients for satisfying depositor, borrower, and creditor  needs.





The  Companys liquid assets consist of cash and cash equivalents, certificates of  deposit in other financial institutions and investment securities classified as  available for sale.  The level of these  assets is dependent on the Companys operating, investing, and financing  activities during any given period.  At  January 31, 2005, cash and cash equivalents totaled approximately $2.8 million,  or 2.3% of total assets while investment securities classified as available for  sale and certificates of deposit in other financial institutions totaled  approximately $47.2 million, or 37.9% of total assets.  Management believes that the liquidity needs  of the Company are satisfied by the current balance of cash and cash  equivalents, readily available access to traditional funding sources, FHLB advances,  and the portion of the investment and loan portfolios that mature within
one  year.





Operating  activities provided net cash of approximately $8.7 thousand and $80.6 thousand  for the three months ended January 31, 2005 and 2004, respectively and were  principally generated from net income of $270.9 thousand and $99.6 thousand in  each of the respective periods.





Investing  activities consist primarily of loan originations and repayments and investment  purchases and maturities.  For the three  months ended January 31, 2005, these cash usages primarily consisted of an  increase in net loans receivable of $4.5 million.  Partially offsetting the usage of investment activities is $1.3  million of proceeds from investment security maturities and repayments.  For the same period ended 2004, cash usages  primarily consisted of investment purchases of $5.2 million and the purchase of  bank-owned life insurance in the amount of $1.5 million. Partially offsetting  the usage of investment activities were net repayment of loans in the amount of  $684.5 thousand and proceeds from repayments and maturities of investment  securities in the amount of $3.8 million.





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Financing  activities consist of the solicitation and repayment of customer deposits,  borrowings and repayments, and advances by borrowers for taxes and insurance  and the payment of cash dividends.  For  the three months ended January 31, 2005, net cash used for financing activities  totaled $371.1 thousand and was principally from the repayment of short-term  borrowings in the amount of $1.5 million offset by an increase in deposits in  the amount of $1.0 million.  For the  same period in 2004, net cash used for financing activities totaled $1.4  million and was primarily from a decrease in deposits.





Liquidity  may be adversely affected by unexpected deposit outflows, interest rates paid  by competitors, and similar matters.   Management monitors projected liquidity needs and determines the level  desirable, based in part on the Companys commitment to make loans, as well as  managements assessment of the Companys ability to generate funds.  The Bank anticipates that it will have  sufficient liquidity to satisfy expected short-term and long-term funding needs.





Capital.  The Companys primary source of capital has  been retained earnings.  Historically,  the Bank has generated net retained income to support normal growth and  expansion.  The proceeds of the stock  offering in connection with the Companys recently completed mutual-to-stock  conversion are part of managements new capital planning policy to ensure  compliance with regulations and to permit future expansion.  The infusion of this new capital significantly  increased the Companys capital resources by increasing equity.





The Bank is  subject to federal regulations imposing minimum capital requirements.  Management monitors the Banks total  risk-based, Tier I risk-based, and Tier I leverage capital ratios to assess  compliance with regulatory guidelines.   At January 31, 2005, the Bank exceeded the minimum capital ratio  requirements.





ITEM 3.  CONTROLS AND PROCEDURES





(a)          Evaluation of disclosure controls and procedures.  Based on his evaluation of the Companys  disclosure controls and procedures (as defined in Rule 13a-15(e) under the  Securities Exchange Act of 1934 (the Exchange Act)), the Companys principal  financial officer and interim acting principal executive officer has concluded  that as of the end of the period covered by this Quarterly Report on Form  10-QSB such disclosure controls and procedures are effective to ensure that  information required to be disclosed by the Company in reports that it files or  submits under the Exchange Act is recorded, processed, summarized and reported  within the time periods specified in Securities and Exchange Commission rules  and forms.





(b)          Changes in internal control over financial reporting.  During the quarter under report, there was  no change in the Companys internal control over financial reporting that has  materially affected, or is reasonably likely to materially affect, the  Companys internal control over financial reporting.





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PART  II





|ITEM 1. | LEGAL PROCEEDINGS                                             
|------- | --------------------------------------------------------------
|        | Not applicable.                                               
|        |                                                               
|ITEM 2. | UNREGISTERED SALES OF EQUITY    SECURITIES AND USE OF PROCEEDS
|        | None                                                          
|        |                                                               
|ITEM 3. | DEFAULTS UPON SENIOR SECURITIES                               
|        | Not applicable.                                               
|        |                                                               
|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF    SECURITY HOLDERS        
|        | None.                                                         
|        |                                                               
|ITEM 5. | OTHER INFORMATION                                             
|        | None                                                          




|ITEM 6. | EXHIBITS
|------- | --------
|        |         
|        | (a)     
|        |         
|        | 3(i)    
|        |         
|        | 3(ii)   
|        |         
|        | 4       
|        |         
|        | 10.1    
|        |         
|        | 10.2    
|        |         
|        | 10.3    
|        |         
|        | 31      
|        |         
|        | 32      
|        |         
|        | 99.1    




|  
|--
|* 
|  
|**




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SIGNATURES





Pursuant to the requirements of the Securities Exchange Act of 1934,  the Registrant has duly caused this Report to be signed on its behalf by the  undersigned, thereunto duly authorized.





|                     | SE FINANCIAL CORP.                                                                                                   
|-------------------- | ---------------------------------------------------------------------------------------------------------------------
|                     |                                                                                                                      
|                     |                                                                                                                      
|Date: March 10, 2005 | /s/ JOSEPH SIDEBOTHAM                                                                                                
|                     |                                                                                                                      
|                     | Joseph Sidebotham                                                                                                    
|                     | Executive Vice President, Chief Financial    Officer, Controller and Interim President and    Chief Executive Officer
|                     | (Duly authorized Officer and Principal Financial    & Accounting Officer)                                            




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