UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                             ----------------------


                                   FORM 10-QSB
(Mark One)

|X|  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

For the quarterly period ended       January 31, 2006
                                ---------------------------
                                       OR

| |  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 0-50684

                               SE FINANCIAL CORP.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


Pennsylvania                                            57-1199010
-------------------------------             ------------------------------------
(State or other jurisdiction of             (I.R.S. employer identification no.)
incorporation or organization)

1901-03 Passyunk Avenue, Philadelphia, Pennsylvania           19148
---------------------------------------------------           -----
(Address of principal executive offices)                    (Zip Code)

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  X    No
                                               ---      ---

         Indicate  the  number of  shares  outstanding  of each of the  issuer's
classes of common stock as of the latest practicable date: March 13, 2006

           Class                                     Outstanding
   ---------------------------                     ---------------
   $.10 par value common stock                    2,286,375  shares


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

<PAGE>

                               SE FINANCIAL CORP.

                                   FORM 1O-QSB

                     FOR THE QUARTER ENDED JANUARY 31, 2006


                                      INDEX

<TABLE>
<CAPTION>
                                                                           Page
                                                                          Number
                                                                          ------
<S>            <C>                                                          <C>
PART I - CONSOLIDATED FINANCIAL INFORMATION

          Item 1. Consolidated Financial Statements (Unaudited)                1

          Item 2. Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                         10

          Item 3. Controls and Procedures                                     13


PART II- OTHER INFORMATION

          Item 1. Legal Proceedings                                           14

          Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 14

          Item 3. Defaults Upon Senior Securities                             14

          Item 4. Submission of Matters to a Vote of Security Holders         14

          Item 5. Other Information                                           14

          Item 6. Exhibits                                                    14

SIGNATURES

EXHIBITS

          31 Certification  pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

          32 Certification  pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

          99.1 Report of Independent Registered Public Accounting Firm

</TABLE>
<PAGE>

                               SE FINANCIAL CORP.
                           CONSOLIDATED BALANCE SHEET
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                               January 31,      October 31,
                                                                                   2006            2005
                                                                              -------------    -------------
<S>                                                                          <C>              <C>
ASSETS
   Cash and due from banks                                                    $     985,597    $     603,912
   Interest-bearing deposits with other institutions                              1,883,164        1,558,899
                                                                              -------------    -------------

        Cash and cash equivalents                                                 2,868,761        2,162,811

   Certificates of deposit in other financial institutions                          195,179          193,793
   Investment securities held to maturity (estimated market value                 2,164,806        2,150,395
        of $2,209,553 and $ 2,149,249)
   Investment securities available for sale                                      46,567,042       50,082,732
   Loans receivable (net of allowance for loan losses
        of $ 542,858 and $ 506,708)                                              88,390,317       84,602,435
   Accrued interest receivable                                                      795,168          754,403
   Federal Home Loan Bank Stock                                                   1,634,200        1,649,900
   Premises and equipment, net                                                    3,259,091        2,142,909
   Bank owned life insurance                                                      2,989,257        2,961,261
   Other assets                                                                     884,502          730,108
                                                                              -------------    -------------

            TOTAL ASSETS                                                      $ 149,748,323    $ 147,430,747
                                                                              =============    =============


LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
   Deposits                                                                   $  94,430,874    $  87,407,966
   Short-term borrowings                                                         14,600,000       12,800,000
   Federal Home Loan Bank borrowings                                             14,955,571       15,134,917
   Advances by borrowers for taxes and insurance                                    602,146          436,601
   Accrued interest payable                                                         184,177          124,243
   Other liabilities                                                                453,529          464,120
                                                                              -------------    -------------

            TOTAL LIABILITIES                                                   125,226,297      116,367,847
                                                                              -------------    -------------

Commitments and contingencies                                                             -                -

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                                                            257,888          257,888
   Additional paid-in capital                                                    24,886,607       24,873,013
   Retained earnings - substantially restricted                                   8,905,870        8,968,526
   Stock Compensation Trust 215,000 shares                                       (3,021,300)               -
   Unallocated shares held by Employee Stock Ownership Plan ("ESOP")             (1,805,217)      (1,842,058)
   Treasury stock at cost, 292,500 shares and 42,500 shares respectively         (4,113,325)        (581,125)
   Accumulated other comprehensive loss                                            (588,497)        (613,344)
                                                                              -------------    -------------
            TOTAL STOCKHOLDERS' EQUITY                                           24,522,026       31,062,900
                                                                              -------------    -------------

            TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        $ 149,748,323    $ 147,430,747
                                                                              =============    =============
</TABLE>

   See accompanying notes to the unaudited consolidated financial statements.

                                       1
<PAGE>

                                SE FINANCIAL CORP
                        CONSOLIDATED STATEMENT OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                     Three Months Ended January 31,
                                                   -----------------------------------
                                                             2006           2005
                                                        -----------    -----------
<S>                                                    <C>            <C>
INTEREST AND DIVIDEND INCOME
    Loans receivable                                    $ 1,525,996    $ 1,135,817
    Investment securities
       Taxable                                              503,323        437,645
       Exempt from federal income tax                        61,045         36,088
    Interest-bearing deposits with other institutions        23,836         18,137
    Other dividend income                                    11,310          7,719
                                                        -----------    -----------

           Total interest and dividend income             2,125,510      1,635,406
                                                        -----------    -----------

INTEREST EXPENSE
    Deposits                                                717,095        487,596
    Short-term borrowings                                    89,299         31,548
    Federal Home Loan Bank borrowings                       208,612         96,096
                                                        -----------    -----------

           Total interest expense                         1,015,006        615,240
                                                        -----------    -----------

NET INTEREST INCOME                                       1,110,504      1,020,166
    Provision for loan losses                                36,138         17,000
                                                        -----------    -----------
NET INTEREST INCOME AFTER
         PROVISION FOR LOAN LOSSES                        1,074,366      1,003,166
                                                        -----------    -----------
NONINTEREST INCOME
    Service fees on deposit accounts                         73,953         66,447
    Earnings on bank-owned life insurance                    27,996         20,079
    Net loss on sale of investment securities               (23,667)             -
    Other                                                     7,871         10,220
                                                        -----------    -----------

           Total noninterest income                          86,153         96,746
                                                        -----------    -----------
NONINTEREST EXPENSE
    Compensation and employee benefits                      590,700        392,022
    Occupancy and equipment                                  96,392         49,589
    Federal deposit insurance premiums                       14,228         10,762
    Data processing expense                                  89,951         72,957
    Professional fees                                       175,617         53,432
    Other                                                   212,172        113,232
                                                        -----------    -----------

           Total noninterest expense                      1,179,060        691,994
                                                        -----------    -----------

(LOSS) INCOME BEFORE TAXES                                  (18,541)       407,918

INCOME TAX (BENEFIT) EXPENSE                                (27,114)       137,033
                                                        -----------    -----------
NET INCOME                                              $     8,573    $   270,885
                                                        ===========    ===========

PER SHARE DATA:
    Earnings per share - basic and diluted              $      0.00    $      0.11

    Weighted average number of shares outstanding -
    basic and diluted                                     2,294,150      2,382,402

    Dividends per share                                        0.03           0.02

</TABLE>

   See accompanying notes to the unaudited consolidated financial statements.

                                       2
<PAGE>

                               SE FINANCIAL CORP.
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                 Retained                  Unallocated                Compre-
                                    Additional   Earnngs-       Stock        shares     Treasury      hensive    Total      Compre-
                          Common      paid-in  Substantially Compensation    held by      Stock       Income  Stockholders'  hensive
                          Stock       Capital    Restricted     Trust         ESOP       at Cost      (Loss)     Equity       Income
                          --------  -----------  ----------  -----------  -----------  -----------  ---------  -----------   -------
                                                                           (Unaudited)
<S>                      <C>       <C>          <C>         <C>          <C>          <C>          <C>        <C>
Balance,
  October 31, 2005        $257,888  $24,873,013  $8,968,526  $         -  $(1,842,058) $  (581,125) $(613,344) $31,062,900

Cash dividends paid              -            -     (71,229)                        -                       -      (71,229)

ESOP shares
  committed to be
  released                       -       13,594           -                    36,841                       -       50,435

Stock Compensation
  Trust purchases                                             (3,021,300)                                       (3,021,300)

Treasury Stock
  purchases                                                                             (3,532,200)             (3,532,200)

Net income                       -            -       8,573            -            -                                8,573   $ 8,573

Other
  comprehensive
  income:
  Unrealized gain
    on available
    for sale
    securities,
    net of
    reclassification
    adjustment, net
    of taxes $12,799                                                                                   24,847       24,847   $24,847
                                                                                                                             -------

Comprehensive income             -            -           -                         -                       -            -   $33,420
                          --------  -----------  ----------  -----------  -----------  -----------  ---------  -----------   =======
Balance,
  January 31, 2006        $257,888  $24,886,607  $8,905,870  $(3,021,300) $(1,805,217) $(4,113,325) $(588,497) $24,522,026
                          ========  ===========  ==========  ===========  ===========  ===========  =========  ===========

Components of other comprehensive income:                                                                 January 31, 2006
  Change in net unrealized gain on                                                                        ----------------
   investment securities available for sale                                                                    $     9,227
  Realized losses included in net income net of tax benefit of $8,047                                               15,620
                                                                                                               -----------
Total                                                                                                          $    24,847
                                                                                                               ===========
</TABLE>

   See accompanying notes to the unaudited consolidated financial statements.

                                     3
<PAGE>

                               SE FINANCIAL CORP.
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                     For the Three Months Ended January 31,
                                                                             2006           2005
                                                                         -----------    -----------
<S>                                                                     <C>            <C>
OPERATING ACTIVITIES
   Net income                                                            $     8,573    $   270,885
   Adjustments to reconcile net income (used for) to net cash provided
     by operating activities:
       Provision for loan losses                                              36,138         17,000
       Depreciation, amortization, and accretion                              25,875         18,242
       Earnings on bank-owned life insurance                                 (27,996)       (20,079)
       Decrease in principal and interest on loans sold payable              (34,807)      (154,190)
       (Increase) decrease in accrued interest receivable                    (40,765)        32,038
       Increase (decrease) in accrued interest payable                        59,934        (70,487)
       Loss on sale of investment securities                                  23,667              -
       Other, net                                                           (142,976)       (84,685)
                                                                         -----------    -----------
           Net cash (used for) provided by operating activities              (92,357)         8,724
                                                                         -----------    -----------

INVESTING ACTIVITIES
   Investment securities available for sale:
       Proceeds from principal repayments and maturities                   1,382,403      1,282,048
       Purchases                                                                   -         (1,262)
       Proceeds from the sale of investment securities                     2,141,519              -
   Increase in loans receivable, net                                      (3,777,047)    (4,459,817)
   Proceeds from sales of real estate acquired through
      foreclosure                                                                  -         80,000
   Purchase of Federal Home Loan Bank stock                                 (120,000)             -
   Redemption of Federal Home Loan Bank stock                                135,700        135,800
   Purchase of premises and equipment                                     (1,148,646)       (26,566)
                                                                         -----------    -----------
           Net cash used for investing activities                         (1,386,071)    (2,989,797)
                                                                         -----------    -----------

FINANCING ACTIVITIES
   Increase in deposits, net                                               7,022,908      1,024,341
   Net increase (decrease) in short-term borrowings                        1,800,000     (1,500,000)
   Repayment of Federal Home Loan Bank borrowings                           (179,346)       (15,861)
   Increase in advances by borrowers
      for taxes and insurance, net                                           165,545        167,994
   Purchase of stock for Stock Compensation Trust                         (3,021,300)             -
   Purchase of treasury stock                                             (3,532,200)             -
   Cash dividends                                                            (71,229)       (47,597)
                                                                         -----------    -----------
           Net cash provided by (used for) financing activities            2,184,378       (371,123)
                                                                         -----------    -----------

           Increase (decrease) in cash and cash equivalents                  705,950     (3,352,196)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                           2,162,811      6,180,794
                                                                         -----------    -----------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                               $ 2,868,761    $ 2,828,598
                                                                         ===========    ===========
SUPPLEMENTAL CASH FLOW DISCLOSURES
   Cash paid:
       Interest                                                          $   955,072    $   685,727
       Income taxes                                                           85,000        173,250
</TABLE>

   See accompanying notes to the unaudited consolidated financial statements.

                                        4

<PAGE>
                               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."), an inactive investment services and products provider
and SE DEL Corp.,  a  Delaware  investment  subsidiary  which  holds  investment
securities. 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, 2005 has been derived from the
audited consolidated  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,  2006,  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, 2005
comprehensive income totaled $200,680.

NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS
-----------------------------------------

In April 2005, the Securities  and Exchange  Commission  adopted a new rule that
amends the compliance dates for Financial  Accounting Standards Board's ("FASB")
Statement of Financial Accounting Standards No. 123 (revised 2004),  Share-Based
Payment (FAS No. 123R). The Statement  requires that  compensation cost relating
to share-based  payment  transactions be recognized in financial  statements and
that this cost be  measured  based 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 November 1,
2006 and is currently  evaluating  the impact the adoption of the standard  will
have on the Company's results of operations.

In March 2005,  the  Securities  and Exchange  Commission  ("SEC")  issued Staff
Accounting  Bulletin No. 107 ("SAB No. 107"),  "Share-Based  Payment," providing
guidance on option valuation  methods,  the accounting for income tax effects of
share-based  payment  arrangements  upon  adoption  of SFAS No.  123-R,  and the
disclosures in MD&A subsequent to the adoption. The Company will provide SAB No.
107 required disclosures upon adoption of SFAS No. 123-R on November 1, 2006 and
is currently evaluating the impact the adoption of the standard will have on the
Company's financial condition, results of operations, and cash flows.

In June  2005,  the FASB  issued FAS No.  154,  "Accounting  Changes  and Errors
Corrections,  a replacement  of APB Opinion No. 20 and FAS No. 3". The Statement
applies to all  voluntary  changes in  accounting  principle,  and  changes  the
requirements  for  accounting  for  and  reporting  of a  change  in  accounting
principle.  FAS No. 154 requires  retrospective  application  to prior  periods'
financial  statements of a voluntary change in accounting principle unless it is
impractical.  APB Opinion No. 20 previously required that most voluntary changes
in  accounting  principle be recognized by including in net income of the period
of the change the cumulative effect of changing to the new accounting principle.
FAS No. 154 improves the financial  reporting  because its requirements  enhance
the consistency of financial  reporting  between periods.  The provisions of FAS
No. 154 are effective for accounting  changes and  corrections of errors made in
fiscal years beginning after December 15, 2005. The adoption of this standard is
not expected to have a material effect on the Company's results of operations or
financial position.
                                        5
<PAGE>

NOTE 4 - INVESTMENTS
--------------------

The amortized cost and the fair value of investment securities held to maturity
were as follows:

<TABLE>
<CAPTION>
                                                                        January 31, 2006
                                      --------------------------------------------------------------------------------------
                                                                  Gross                   Gross                 Estimated
                                       Amortized               Unrealized              Unrealized                 Market
                                         Cost                     Gains                  Losses                   Value
                                      ------------             ------------            ------------            -------------
<S>                                   <C>                         <C>                    <C>                    <C>
Municipal securities                   $2,164,806                  $55,343                $(10,596)              $2,209,553
</TABLE>

<TABLE>
<CAPTION>
                                                                         October 31, 2005
                                      --------------------------------------------------------------------------------------
                                                                  Gross                   Gross                 Estimated
                                       Amortized               Unrealized              Unrealized                 Market
                                         Cost                     Gains                  Losses                   Value
                                      ------------             ------------            ------------            -------------
<S>                                   <C>                         <C>                    <C>                    <C>
Municipal securities                   $2,150,395                  $26,342                $(27,488)              $2,149,249
</TABLE>


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

<TABLE>
<CAPTION>
                                                                         January 31, 2006
                                         ---------------------------------------------------------------------------
                                                                      Gross              Gross            Estimated
                                              Amortized             Unrealized         Unrealized           Market
                                                 Cost                 Gains              Losses             Value
                                              -----------             ------           ---------        -----------
<S>                                         <C>                     <C>              <C>              <C>
Mortgage-backed securities:
     Fannie Mae                               $24,068,116             $2,569           $(397,255)       $23,673,430
     Freddie Mac                                4,446,754              1,315             (69,346)         4,378,723
     Government National Mortgage
        Association securities                  1,506,760              1,372             (14,523)         1,493,609
                                              -----------             ------           ---------        -----------
     Total mortgage-backed
        securities                             30,021,630              5,256            (481,124)        29,545,762
U.S. Government
  agency securities                             9,969,164                296            (299,705)         9,669,755
Corporate securities                            3,028,238                  -             (58,790)         2,969,448
Municipal securities                            4,246,889                 90             (54,403)         4,192,576
                                              -----------             ------           ---------        -----------
          Total debt securities                47,265,921              5,642            (894,022)        46,377,541
Mutual funds                                      192,787                  -              (3,286)           189,501
                                              -----------             ------           ---------        -----------
          Total                               $47,458,708             $5,642           $(897,308)       $46,567,042
                                              ===========             ======           =========        ===========
</TABLE>


                                        6

<PAGE>

<TABLE>
<CAPTION>
                                                                      October 31, 2005
                                              ---------------------------------------------------------------------
                                                                     Gross               Gross            Estimated
                                                Amortized          Unrealized          Unrealized           Market
                                                   Cost              Gains               Losses             Value
                                              -----------            -------           ---------        -----------
<S>                                          <C>                    <C>               <C>              <C>
Mortgage-backed securities:
     Fannie Mae                               $26,739,810            $ 1,983           $(448,608)       $26,293,185
     Freddie Mac                                4,643,713                495             (81,412)         4,562,796
     Government National Mortgage
        Association securities                  2,193,406              8,574              (8,271)         2,193,709
                                              -----------            -------           ---------        -----------
     Total mortgage-backed
       securities                              33,576,929             11,052            (538,291)        33,049,690
U.S. Government
  agency securities                             9,965,943                914            (308,072)         9,658,785
Corporate securities                            3,028,815                  -             (25,100)         3,003,715
Municipal securities                            4,249,487                  -             (66,722)         4,182,765
                                              -----------            -------           ---------        -----------
          Total debt securities                50,821,174             11,966            (938,185)        49,894,955
Mutual funds                                      190,870                  -              (3,093)           187,777
                                              -----------            -------           ---------        -----------
          Total                               $51,012,044            $11,966           $(941,278)       $50,082,732
                                              ===========            =======           =========        ===========
</TABLE>

The amortized cost and estimated  market value of debt securities at January 31,
2006,  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.

<TABLE>
<CAPTION>
                                               Held to Maturity                  Available for Sale
                                               ----------------                  ------------------
                                                        Estimated Market                   Estimated Market
                                        Amortized Cost       Value        Amortized Cost        Value
                                        --------------  ----------------  --------------   ----------------
<S>                                       <C>              <C>            <C>                <C>
Due less than one year                     $        -       $        -     $   221,064        $   221,360
Due after one year through five years               -                -      12,359,152         12,015,473
Due after five years through ten years              -                -       4,228,436          4,131,346
Due after ten years                         2,164,806        2,209,553      30,457,269         30,009,362
                                           ----------       ----------     -----------        -----------

          Total                            $2,164,806       $2,209,553     $47,265,921        $46,377,541
                                           ==========       ==========     ===========        ===========
</TABLE>

                                        7

<PAGE>

NOTE 5 - LOANS RECEIVABLE
-------------------------

Loans receivable consist of the following:

<TABLE>
<CAPTION>
                                                     January 31, 2006                     October 31, 2005
                                              --------------------------------     -------------------------------
                                                     Amount         Percent             Amount          Percent
                                              -----------------  -------------     -----------------  ------------
 <S>                                            <C>                   <C>            <C>                  <C>
Type of Loans:
------------------

Mortgage loans:
   One-to four- family (1)                         $54,042,614         60.68%           $52,817,766        61.95%
   Multi-family                                        817,827          0.92%               707,081         0.83%
   Commercial real estate                            6,089,189          6.84%             5,564,591         6.53%
   Construction (2)                                 14,516,150         16.30%            13,034,853        15.29%
Home equity loans and lines of credit               12,951,019         14.54%            12,715,963        14.91%
Loans on savings accounts                              356,873          0.40%               300,955         0.35%
Other                                                  288,942          0.32%               118,856         0.14%
                                                   -----------         -----            -----------        -----
Total loans                                         89,062,614        100.00%            85,260,065       100.00%
                                                                      ======                              ======

Less:
   Net deferred loan fees and unamortized premiums     129,439                              150,922
   Allowance for loan losses                           542,858                              506,708
                                                   -----------                          -----------
Total loans, net                                   $88,390,317                          $84,602,435
                                                   ===========                          ===========
</TABLE>

-------------------
(1)  Included in this category are mixed-use loans and investor loans.
(2)  Included in this category are participation  interests in two loans with an
     aggregate  balance of $2.1 million at both January 31, 2006 and October 31,
     2005.



NOTE 6 - FEDERAL HOME LOAN BANK BORROWINGS
------------------------------------------

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

<TABLE>
<CAPTION>
                                                   Weighted-    Stated interest
                      Maturity range               average        rate range       At January 31, At October 31,
Description              from           to      interest rate  from        to          2006           2005
                      ------------  -----------  -----------  -------------------  -------------  -------------
<S>                  <C>           <C>           <C>          <C>        <C>      <C>            <C>
Short Term Borrowings  04/11/06      05/23/06      4.51%        3.73%      4.69%    $14,600,000    $12,800,000
Convertible            02/18/10      02/18/10      5.91%        5.91%      5.91%      1,000,000      1,000,000
Mid Term Repo Fixed    05/01/06      05/11/15      3.57%        2.63%      4.84%     10,800,000     10,800,000
Fixed Rate             08/20/08      08/20/08      6.24%        6.24%      6.24%      1,500,000      1,500,000
Fixed Rate amortizing  05/23/08      05/23/08      4.14%        4.14%      4.14%      1,655,571      1,834,917
                                                                                    -----------    -----------
           Total                                                                    $29,555,571    $27,934,917
                                                                                    ===========    ===========
</TABLE>

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 $62,131 through May 2008.

                                        8

<PAGE>

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, 2006 are summarized as follows:

  Year Ending October 31,                    Amount      Weighted-Average Rate
----------------------------             -------------   ---------------------


     2006                                 $18,114,840              4.19%
     2007                                   5,511,753              3.64%
     2008                                   2,928,978              5.12%
     2010                                   1,000,000              5.91%
     2015                                   2,000,000              4.84%
                                          -----------
        Total                             $29,555,571              4.28%
                                          ===========


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, less average
unallocated  shares  held by the ESOP,  shares  held in the  Stock  Compensation
Trust, and in Treasury stock for the period.

<TABLE>
<CAPTION>
                                                For the Three Months Ended January 31,
                                                         2006            2005
                                                      ---------       ---------

<S>                                                 <C>             <C>
        Weighted-average common shares outstanding    2,578,875       2,578,875
        Average treasury stock shares                   (70,217)              -
        Average unallocated shares held by ESOP        (181,736)       (196,473)
        Average Stock compensation Trust shares         (32,772)              -
                                                      ---------       ---------
        Weighted-average common shares and
          common stock equivalents used to
          calculate basic earnings per share          2,294,150       2,382,402
                                                      =========       =========
</TABLE>

                                       9

<PAGE>

                     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,
2006 and January 31, 2005

         The Company  recorded net income of $9.0  thousand for the three months
ended January 31, 2006, versus $270.9 thousand over the same period in 2005. The
decrease in net income is primarily due to an increase in non-interest expense.

         Net Interest  Income.  Net  interest  income for the three months ended
January 31, 2006 increased to $1.1 million from $1.0 million for the same period
in 2005 as a result of an  increase  in total  interest  income  which more than
offset an increase in interest expense.  The net interest margin decreased by 29
basis points to 3.20% for the three months ended January 31, 2006 from 3.49% for
the three months ended  January 31, 2005.  Interest  income for the three months
ended  January 31, 2006 totaled $2.1 million as compared to $1.6 million for the
three  months  ended  January 31,  2005.  This  increase of $490.1  thousand was
primarily attributable to an increase of $22.6 million in the average balance of
interest-earning assets to $141.6 million for the three months ended January 31,
2006 from $119.1  million for the three  months  ended  January 31,  2005.  This
increase  was  also  attributable  to  an  increase  in  the  average  yield  on
interest-earning  assets of 49 basis  points to 6.04% for the three months ended
January 31, 2006 from 5.55% for the three  months ended  January 31,  2005.  The
average  balance of loans  receivable  and  investment  securities for the three
months  ended  January 31, 2006 as compared to the same period of the prior year
increased  $19.6  million  and  $3.3  million,  respectively.  Loans  receivable
increased  due to  increased  loan demand and the  addition  of a Chief  Lending
Officer.  The average  yield on loans  receivable  increased  20 basis points to
6.98% for the three  months  ended  January  31,  2006 from  6.78% for the three
months  ended  January 31,  2005.  The average  yield on  investment  securities
increased 50 basis  points to 4.62% for the three months ended  January 31, 2006
from 4.12% for the three months ended January 31, 2005.

         Interest  expense  increased to $1.0 million for the three months ended
January 31, 2006 from $615.2  thousand for the three  months  ended  January 31,
2005 and was  primarily  attributable  to an  increase  of $27.5  million in the
average balance of interest-bearing  liabilities to $115.1 million for the three
months  ended  January 31, 2006 from $87.6  million for the three  months  ended
January 31, 2005 as well as an increase in the average cost of funds of 68 basis
points to 3.49% for the three months ended  January 31, 2006 from 2.81 % for the
three months ended  January 31, 2005.  The average  balance of deposits and FHLB
advances  for the three  months  ended  January 31, 2006 as compared to the same
period  of  the  prior  year   increased   $14.7  million  and  $12.9   million,
respectively.  The increase in deposits  represented an increase in certificates
of deposit,  savings and interest bearing demand.  Borrowings increased as funds
were used to  purchase  investment  securities.  The  average  cost of  deposits
increased 60 basis  points to 3.26% for the three months ended  January 31, 2006
from 2.66% for the three  months  ended  January 31,  2005.  The average cost of
borrowings increased 82 basis points to 4.22% for the three months ended January
31, 2006 from 3.40% for the three months ended January 31, 2005.

         Loan Loss  Provision.  The provision for loan losses was $36.1 thousand
for the three months ended January 31, 2006  compared to $17.0  thousand for the
three months ended  January 31, 2005 due to the increase in volume and loan mix.
The loan loss  provision is based upon  management's  assessment of a variety of
factors,  including  levels of, and trends in,  delinquencies  and  nonaccruals,
trends in volume and terms of loans, effects of any changes in lending policies,
historical loss experience,  collectibility of collateral values and guaranties,
pending legal action for  collection of loans and related  guaranties,  national
and economic trends and conditions and  concentrations of credit.  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.

                                       10

<PAGE>
         Non-interest Income. Total non-interest income decreased $10.6 thousand
to $86.1  thousand for the three months ended January 31, 2006 compared to $96.7
thousand for the three months ended January 31, 2005 due mainly to a loss on the
sale of securities of $23.7  thousand  offset by an increase of $7.5 thousand in
service  fees on  deposits  and an  increase  in  earnings  on  bank-owned  life
insurance of $7.9 thousand.

         Non-interest Expense. Non-interest expense increased $487.1 thousand to
$1.2 million for the three months  ended  January 31, 2006 from $692.0  thousand
for the three  months  ended  January 31,  2005.  The  increase in  non-interest
expense was due to increases in compensation and employee benefits, professional
fees,  occupancy and  equipment  costs,  and other  expense of $198.7  thousand,
$122.2 thousand, $46.8 thousand and $98.9 thousand,  respectively.  The increase
in  compensation  and employee  benefits was due primarily to additions to staff
(including  staff for the newly  opened  Roxborough  and  Ardmore,  Pennsylvania
Neighborhood  Banking  Offices),  payroll taxes and employee benefits expense as
well as normal  salary  increases.  The  increase in  professional  fees was due
mainly to costs incurred in connection with non-recurring legal expenses related
to the  Company's  2005 Annual  Meeting of  Stockholders  that were not resolved
until the first quarter of 2006.  The increase in occupancy and equipment  costs
was due to an increase in depreciation,  rent expense, utilities and maintenance
expense related to the opening of the two new banking offices  discussed  above.
Other  expense  increased  due  mainly to  increased  advertising  costs,  costs
associated   with  the  grand  opening  of  the   Roxborough   banking   office,
telecommunications enhancement expense, and stationery and supplies expense.

         Income  Taxes.  Income tax  benefit  was $27.1  thousand  for the three
months ended  January 31, 2006 as compared to an expense of $137.0  thousand for
the same period in 2005 due mainly to a decrease in pre-tax income.


Comparison of Financial Condition at January 31, 2006 and October 31, 2005

         Assets and  Liabilities.  The Company's total assets  increased by $2.3
million to $149.7 million at January 31, 2006 from $147.4 million at October 31,
2005.

         Investment  securities available for sale decreased by $3.5 million, to
$46.6  million at January 31, 2006 from $50.1  million at October 31, 2005.  The
decrease  was  due  mainly  to the  sale  of  $2.1  million  in  mortgage-backed
securities and repayments.

         Net loans receivable  increased $3.8 million, or 4.5%, to $88.4 million
at January 31, 2006 from $84.6 million at October 31, 2005.  The increase in net
loans   receivable  was  primarily  the  result  of  increases  in  construction
financing,  one- to four-family  residential mortgages (which includes owner and
non-owner occupied  properties),  and commercial real estate loans in the amount
of $1.5 million, $1.2 million and $524.6 thousand, respectively.

         The allowance for loan losses  increased to $542.9  thousand at January
31, 2006 from $506.7  thousand at October 31, 2005 and  represented  .61% of the
gross loan portfolio at January 31, 2006.  The Company had  nonaccrual  loans of
$60.1  thousand  and $69.4  thousand at January  31, 2006 and October 31,  2005,
respectively.  Management  does not believe the nonaccrual  loans or any amounts
classified  as  nonperforming  will have a  significant  effect on operations or
liquidity  in  2006.  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.

         Premises and  equipment,  net increased $1.2 million to $3.3 million at
January  31,  2006 from $2.1  million at October  31,  2005.  The  increase  was
primarily due to costs  associated  with the new Roxborough and Ardmore  Banking
Offices.

         Total  deposits  increased  to $94.4  million at January  31, 2006 from
$87.4 million at October 31, 2005. This was primarily a result of an increase in
certificates of deposit and checking  accounts of $5.3 million and $2.3 million,
respectively, offset by a decrease in money market accounts and savings accounts
of $500.2 thousand and $96.4 thousand, respectively.

         Stockholders'  Equity.  Total  stockholders'  equity decreased to $24.5
million at January 31, 2006 from $31.1 million at October 31, 2005. The decrease
was due mainly to the completion of the 10% stock repurchase plan announced July
29, 2005 and the 10% stock  repurchase plan announced  January 17, 2006. A total
of 465,000 shares of common stock were repurchased at an average price of $14.04
excluding brokerage commissions.

                                       11
<PAGE>
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,  2006,  cash and cash  equivalents  totaled
approximately $2.9 million, or 1.9% of total assets while investment  securities
classified as available for sale and  certificates of deposit in other financial
institutions  totaled  approximately  $46.8  million,  or 31.2% 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 used net cash of approximately $92.3 thousand for
the three months ended  January 31, 2006 and provided net cash of $8.7  thousand
for the three months ended January 31, 2005.  Net cash used for the three months
ended  January 31, 2006 was due mainly to other net  operating  activities.  Net
cash provided for the three months ended January 31, 2005 was generated from net
income of $270.9 thousand.

             Investing  activities  consist  primarily of loan  originations and
repayments, investment purchases, sales and maturities and purchases of premises
and  equipment.  For the three months  ended  January 31, 2006 net cash used for
investing activities totaled $1.4 million and primarily consisted of an increase
in net loans  receivable of $3.8 million and purchases of premises and equipment
of $1.1  million  due to the  opening  of two  new  banking  offices.  Partially
offsetting  the usage of investing  activities  is $2.1 million of proceeds from
investment security sales and $1.4 million in maturities and repayments. For the
same period ended 2005, cash usages totaled $2.9 million and primarily consisted
of an increase in net loans receivable of $4.5 million. Partially offsetting the
usage of  investing  activities  is $1.3  million of  proceeds  from  investment
security maturities and repayments.

         Financing  activities  consist of the  solicitation  and  repayment  of
customer  deposits,  borrowings and repayments,  advances by borrowers for taxes
and insurance,  stock  repurchases  and the payment of cash  dividends.  For the
three months ended January 31, 2006,  net cash provided by financing  activities
totaled  $2.2 million and was  principally  from an increase in deposits of $7.0
million and an increase in FHLB  borrowings of $1.8 million  offset by purchases
of  treasury  stock  of $3.5  million  and  purchases  of  stock  for the  Stock
Compensation  Trust of $3.0 million.  For the same period in 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 of $1.0 million.

         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,  2006,  the Bank  exceeded  the minimum
capital ratio requirements.

                                       12
<PAGE>

ITEM 3.  CONTROLS AND PROCEDURES

(a) Evaluation of disclosure controls and procedures. Based on her 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  executive and financial  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.

(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.

                                       13

<PAGE>

                                     PART II


ITEM 1. LEGAL PROCEEDINGS

        Not applicable.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

        The  Company  made stock  repurchases  during the quarter  ended January
31, 2006 as follows:

<TABLE>
<CAPTION>
    ----------------------------------------------------------------------------------------------------------------
    ISSUER PURCHASES OF EQUITY SECURITIES
    ----------------------------------------------------------------------------------------------------------------
                                 (a)             (b)              (c)                         (d)
                                                             Total Number of
                                                           Shares Purchased as           Maximum Number
                            Total Number      Average        Part of Publicly       of Shares that May Yet Be
                              of Shares      Price Paid         Announced          Purchased Under the Plans
              Period          Purchased      per Share      Plans or Programs             or Programs
    ---------------------- ---------------- ------------- ----------------------- -----------------------------
<S>                         <C>            <C>                <C>                       <C>
    November 1-30, 2005                                                                     215,388
    ---------------------- ---------------- ------------- ----------------------- -----------------------------
    December 1-31, 2005         65,000         13.49              65,000                    150,388
    ---------------------- ---------------- ------------- ----------------------- -----------------------------
    January 1-31, 2006         400,000         14.13             400,000                        388
    ---------------------- ---------------- ------------- ----------------------- -----------------------------
    Total                      465,000         14.04             465,000                        388
    ---------------------- ---------------- ------------- ----------------------- -----------------------------
</TABLE>


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

<TABLE>
<CAPTION>
        <S>   <C>
          (a)  Exhibits

               3(i)  Articles of Incorporation of SE Financial Corp. *
               3(ii) Bylaws of SE Financial Corp. *
               4     Specimen Stock Certificate of SE Financial Corp. *
               10.1  Executive Life Insurance Plan *
               10.2  Form of Director Incentive Retirement Plan *
               10.3  Form of Executive Officer Incentive Retirement Plan *
               10.4  Form  of  Management  Severance  Agreements  with  Marcy C. Panzer, Pamela M. Cyr,
                     Christopher Jacobsen, and Rick Miller **
               31    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
               32    Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
               99.1  Report of Independent Registered Public Accounting Firm
</TABLE>

                                       14

<PAGE>

               *    Incorporated  by  reference  to the  Company's  registration
                    statement on Form SB-2 (SEC File No. 333-112153).

               **   Incorporated  by reference to the  Company's  Form 8-K filed
                    with the SEC on September 2, 2005 (SEC File No. 000-50684).

                                       15
<PAGE>

                                   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 17, 2006    /s/Pamela M. Cyr
                        --------------------------------------------------------
                        Pamela M. Cyr
                        President and CEO
                        (Principal Executive and Financial & Accounting Officer)


                                       16